Interim Report January-March 2021

First quarter

• Net sales amounted to MSEK 94.4 (85.0), rendering a net sales growth of 11% (22%). Organic net sales growth was 11% (15%)
• Recurring revenue amounted to MSEK 52.2 (46.9)
• The quarter was impacted by one-off items affecting comparison, amounting to MSEK 0.0 (0.0)
• Adjusted EBITA amounted to MSEK 26.2 (23.5) which corresponds to an adjusted EBITA margin of 28% (28%)
• Net income amounted to MSEK 16.8 (14.2)
• Earnings per share, before dilution, amounted to SEK 1.26 (1.07) and diluted to SEK 1.26 (1.07)
• Acquired 90% of Userlike UG after the end of the reporting period
• Lime has agreed on raising a new bank loan of SEK 250 million and repayment of an existing bank loan of SEK 50 million after the reporting period
• Decided to establish Lime in Germany

 

CEO’s comments: 

Acquisition and establishment in Germany

During the first quarter, we have continued to apply our Tiger strategy – attack when the danger emerges through continued investment. In parallel with our usual operation, we have acquired the fast-growing SaaS company, Userlike, and decided to establish our business in Germany.

Growth during the first quarter of 2021 was 11 %, of which organic growth was 11 % compared with the same period last year. Our operation in Sweden continued to function well, despite the pandemic, and achieved growth of 11 %. The Rest of the Nordic Region and the Netherlands, however, continue to be more seriously affected by stringent restrictions, achieving growth of 10 %.

Despite the lower growth in countries outside Sweden due to the pandemic, and despite the fact that we have continued to invest heavily in sales, marketing and product development, profitability remains strong. In the first quarter, the adjusted EBITA margin was 28 percent, which is the same level as in the preceding year.

Improving business climate
Even though growth outside Sweden was lower than we had expected in the first quarter, we detect a trend of continuing improvement in the business climate. During the first quarter, we had satisfactory growth in order intake compared with last year. We have concluded several substantial new deals, not least in our focus verticals and in Norway, Finland and Denmark. We welcome, among others, Ikano Bostadsutveckling and Ikano bolig A/S as new property customers, Fjordkraft AS and Bodens Energi as new energy customers, and Lena Maskin AS, Koja Oy and Avfallsteknik as new wholesale customers. In case management, we won a public procurement for the Municipality of Nacka worth SEK 5 million.

Acquisition of Userlike in Germany
We are also very pleased to announce that we signed an agreement today for the acquisition of the fast-growing SaaS company, Userlike, the German market leader in Unified Messaging. Userlike has 35 employees and EUR 4 million in ARR. They have enjoyed stable growth of around 30 % per year since 2014.

Userlike started trading in 2011, with the vision of improving and simplifying communications between companies and their customers. By collating incoming messages – webchat, Facebook messenger, Whatsapp, Linkedin etc – in the same location, companies can be where their customers are, and are able to offer immediate service. The acquisition of Userlike gives as a strong delivery capacity through the whole CRM chain, since this type of functionality generates strong value for both leads-generating activities and for customer care and support.

Userlike will continue to run as a separate company within the Lime Group. Its products will be sold separately under Userlike’s brand. The functionalities will also be integrated with Lime’s CRM solutions, and be offered as add-ons under Lime’s brand.

New office in Germany
The acquisition of Userlike is in line with Lime’s declared strategy of expanding into new European markets. With its head office in Cologne, Userlike provides a natural entry into the German market. Accordingly, Lime will open a new office in Cologne in August this year, focusing on selling Lime’s CRM solutions.

The recruitment of a local Sales Manager and Sales force will begin immediately, and the German operation will focus during 2021 primarily on establishing itself within our focus verticals; properties, energy, wholesale and consulting.

Handover
After 20 years of working operationally, it is now time for me to hand over the reins to our new CEO, Nils Olsson. I am very proud of what all of us at Lime have achieved together – an average annual growth of 19 %, with a 25 % EBITA margin is unrivalled.

I am often asked why Lime has been so successful and why I have stayed so long. The simple answer to both questions is the people around me, both colleagues and customers. I have been given the opportunity to run Lime in partnership with my best friends, who constantly supported me and encouraged me to develop. I am incredibly impressed by my colleagues’ commitment and focus on delivering high value to our customers at all times. I thank all of you for having me on your team!

Over the years I have spent at Lime, we, as a team, have gained the confidence of more than 5,000 customers within almost every possible and impossible sector. I have found the process of learning how these companies work in relation to sales and customer care, and being involved in developing their approach, extremely stimulating. I would like to thank all of you for choosing to work with us at Lime.

If the Annual General Meeting feels it is appropriate, I hope to take up a new role on Lime’s Board of Directors. I have no plans to leave the company entirely, and I would really like to stay close to the operation and support it to the best of my ability. I have been doing this for 20 years – and I hope to do it for 20 years more.

Even though we are proud of what we have achieved, we have no intention of resting on our laurels. The acquisition of Userlike and the decision to commence operations in Germany are excellent examples of this. As a growth company, we must always strive to improve. With Nils, we have a fantastic leader, and, with an exceptional team, he will take us to the next level.

Over and out!

Erik Syrén, CEO of Lime Technologies

 

Read the entire report in the attached PDF.  

 

Invitation to webcast for the presentation of Lime Technologies’ Year-end report for January-March 2021

On Tuesday, April 27, at 09:30 CEST, are analysts, investors, media and other interested parties invited to attend a webcast where Lime’s CEO, Erik Syrén, and incoming CEO, will comment on the published report and answer questions. The presentation will be held in English.

The presentation material will be available on Lime’s website.

The link to the webcast can be found here.

 

For more information, contact:

Lime Technologies AB (publ)

Erik Syrén, CEO / +46 707-38 50 72 / [email protected]

Nils Olsson, COO / +46 736-44 48 55 / [email protected]

Magnus Hansson, CFO / +46 708-55 55 40 / [email protected]

This information constituted inside information prior to publication. This is information that Lime Technologies AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08.00 CET on April 27, 2021.
 

About Lime

Lime helps businesses all over the Nordics to become better at customer care. The company develops and sells digital products for ”Customer Relationship Management”, development and management of customer relationships. Lime was founded in 1990 and has 300 employees. The company has offices in Lund, Stockholm, Gothenburg, Gävle, Oslo, Copenhagen, Utrecht and Helsinki. Their customers include everything from sole traders to large organisations.
www.lime-technologies.com