Intellego announces new sales subsidiary
Summary: Intellego is setting up a new subsidiary in the USA to help facilitate our continuing focus on dosimeter sales and our recent focus on offering UV-related capital equipment in Intellego’s existing markets. The new subsidiary will significantly contribute to the sales of dosimeters and these other products. We expect this will generate additive monthly cash flow to Intellego over three years of over 170 million SEK. Intellego has invested roughly 30 million SEK into new products during 2023 from Intellego’s operating cash flow, which will go into the new subsidiary. No funds from the recently communicated credit line have been used for this investment.
Background
Intellego is continually evaluating ways it can expand its business and reach its long-term goals of becoming a one-stop shop for the UV industry and to be one of the leading global actors in the UV industry. In the last couple of years, Intellego’s customer base has expanded significantly, both in volumes sold to existing customers and sales to new customers of Intellego’s products. By working closely with our customers, Intellego understands market needs and the problems facing the industry that need solutions. This knowledge is used by Intellego to provide the best products and to continue developing innovations to meet new needs and stay ahead of the competition. With the help of this information, Intellego has been working on several ways to add revenue growth in addition to the 300 million SEK already communicated.
One conclusion we reached in 2023 is that there is strong demand from Intellego’s existing customers for other UV products in addition to dosimeters. These products can, e.g., be capital equipment used in water disinfection, air and surface disinfection, etc. At the same time, Intellego sees a potential to increase dosimeter usage through increased quality awareness from users of both dosimeters and UV capital equipment.
During 2023, we conducted market research and, through collaborative efforts with our customers, identified how best Intellego can extend its existing product offering to provide more value to our customers within specific market segments. Intellego also sees that the regulatory landscape is changing in favour of Intellego as requirements on UV equipment is increasing and the quality process related to it. Examples of this are new regulations and standards coming out of the USA, UK and China which addresses the quality assurance process when using UV devices.
Based on these activities, Intellego has formed a new subsidiary to sell capital UV equipment and dosimeters. The business model of the new subsidiary is expected to provide Intellego with a monthly cash flow, which will accumulate to ca 170 million SEK over three years. During 2023, Intellego made investments into new products for the subsidiary of approximately 30 million SEK.
