Strongpoint: The market remains muted - ABG

• Q3: EBITDA of ~NOK 10m
• New targets achievable, but lower range more likely
• Recovery postponed — '25e likely to improve at the expense of '24


Q3e soft, and Q4e weaker than we anticipated

We expect Q3 to be yet another soft quarter as decision cycles remain
long. Norway remains challenging (high interest rates), while Sweden is
more positive (rate cuts). The Baltic has seen the first deliveries of selfcheckout systems to Maxima, while the UK is developing slower than
we anticipated (high competition). We expect StrongPoint to report Q3
revenues of ~NOK 315m, driven by a 30% y-o-y increase in the Product
segment (easy comps), and a -6% decline in the Service segment. The
gross margin will likely hover at 41-42%, down vs. 44.6% in Q1 (which was
driven by favourable mix). We forecast Q3 EBITDA of ~NOK 10m, EBIT
of NOK -1m, and net profit of NOK -1m. Q4e will likely be weaker than we
initially anticipated due to a slower development in the UK, which explains
the lower ests. for '24e.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/StrongPoint/Equity-research/2024/10/the-market-remains-muted/