NYAB AB’s Interim Report January-June 2024: Improvement and development

April-June in brief

• Revenue amounted to EUR 76.1 (65.3) million, representing a change of 16.5%. In constant currencies, revenue growth was 16.8%.
• Operating profit (EBIT) was EUR 3.8 (4.0) million, amounting to 5.0% (6.2%) of revenue. In the comparison period, EBIT was benefited by EUR 3.3 million related to the settlement of Mikkeli dispute in Finland.
• Free cash flow was EUR -1.0 (8.4) million. In the comparison period, free cash flow was benefited by EUR 9.2 million related to the settlement of Mikkeli dispute.
• Net debt/EBITDA was -0.31 (0.19).
• Order backlog improved 36.0% and amounted to EUR 342.6 (252.0) million.

 

January-June in brief

• Revenue amounted to EUR 135.3 (104.5) million, representing a change of 29.5%. In constant currencies, revenue growth was 30.0%.
• Operating profit (EBIT) was EUR 4.2 (2.0) million, amounting to 3.1% (1.9%) of revenue.
• Net profit was EUR 0.8 (0.9) million. Parent company’s re-domiciliation and listing transfer to Sweden increased finance expenses by EUR 2.0 (0.3) million.
• Free cash flow was EUR 12.5 (9.3) million.

 

This release is a summary of NYAB AB’s Interim Report January-June 2024. The complete report is attached to this release and available at https://nyabgroup.com/en/investors/nyab-as-an-investment/reports-and-presentations/. The information presented in the Interim Report is unaudited.

 

Key figures (IFRS)

	4–6 /2024	4–6 /2023	1–6 /2024	1–6 /2023	R12 7/2023–6/2024	1–12 /2023
Revenue, EUR thousand	76,095	65,319	135,268	104,471	311,215	280,417
Year-on-year change in revenue, %	16.5%	17.2%	29.5%	42.7%	9.4%	10.7%
EBITDA, EUR thousand	4,904	5,444	6,646	4,796	23,224	21,374
% of net sales	6.4%	8.3%	4.9%	4.6%	7.5%	7.6%
EBITA, EUR thousand	3,929	4,561	4,816	3,042	19,593	17,818
% of net sales	5.2%	7.0%	3.6%	2.9%	6.3%	6.4%
Operating Profit (EBIT), EUR thousand	3,796	4,048	4,181	1,997	17,371	15,187
% of net sales	5.0%	6.2%	3.1%	1.9%	5.6%	5.4%
Profit for the period, EUR thousand	1,421	3,734	799	918	8,930	9,049
Earnings per share (EPS), basic, in euros	0.00	0.01	0.00	0.00	0.01	0.01
Earnings per share (EPS), diluted, in euros	0.00	0.01	0.00	0.00	0.01	0.01
Interest-bearing liabilities, EUR thousand	16,268	23,897	16,268	23,897	16,268	17,014
Equity, EUR thousand	177,345	176,060	177,345	176,060	177,345	185,326
Balance sheet total, EUR thousand	263,423	256,717	263,423	256,717	263,423	266,088
Return on equity, last 12 months, %	5.1%	14.9%	5.1%	14.9%	5.1%	4.9%
Return on capital employed, last 12 months, %	8.1%	14.5%	8.1%	14.5%	8.1%	6.6%
Equity ratio -%	73.3%	68.6%	73.3%	68.6%	73.3%	73.0%
Net debt, EUR thousand	-7,187	6,058	-7,187	6,058	-7,187	-5,630
Net gearing -%	-4.1%	3.4%	-4.1%	3.4%	-4.1%	-3.0%
Net debt/EBITDA, last 12 months	-0.31	0.19	-0.31	0.19	-0.31	-0.26
Free cash flow, EUR thousand	-982	8,424	12,489	9,305	25,522	22,338
Order backlog, EUR thousand	342,643	252,032	342,643	252,032	342,643	294,730
Number of employees at the end of the period	472	433	472	433	472	403

CEO Johan Larsson’s review

After a strong start of the year, we continued to execute and deliver during the second quarter. For the first half of the year, our revenue growth was 30%, and we more than doubled our operating profit. In the comparison period, we recorded a non-recurring item related to a legal settlement of Mikkeli dispute impacting operating profit positively by EUR 3.3 million, and taking that into consideration it clearly demonstrates our improved underlying EBIT and the positive direction we are moving in. Furthermore, our order backlog increased by 36% from the comparison period to record-high levels, which has been followed by significant order intake after the end of the quarter.

Development in our addressable markets has been favorable in Sweden, where our growth for the first half of the year exceeded 50%. Market sentiment was further improved by the continued deceleration of inflation and subsequent decision of the Swedish central bank to cut its policy rate in May. One of the most rapidly growing market segments has been power networks, where we have increased our expertise during the past two years, enabling us to secure high-value projects. In Finland, our markets are still subject to certain slowness, but provide a decent level of opportunities in relation to the size of our business.

We are well positioned to seize growth opportunities with our asset-light business model and strong balance sheet. Our revenue per full-time employee is at industry-high levels. In accordance with our strategy, we have successfully scaled up our operations by, among others, increasing the average project size, which is reflected in our recent orders in energy and infrastructure sectors. Our business model enables us to achieve balanced risk-adjusted growth, which remains as our priority.

During the last 12 months, our administrative resources have been largely committed to preparations for our cross-border conversion to a Swedish company. The transaction was completed at the end of June together with a listing transfer to Nasdaq First North Premier in Stockholm. After this successful listing transfer, we have witnessed an improvement in the liquidity of our share and attracted new institutional shareholders.

All in all, I am pleased with our achievements in the first half of the year. Our strategy and distinctive business model have clearly proven their strengths. Execution by our skilled employees has, as always, been carried out professionally. Leaving the first half of the year behind with this outcome is satisfying due to our seasonality with a historically stronger second half of the year. Operating as a Swedish listed company will provide us with additional commercial benefits going forward. The completion of our cross-border conversion and listing transfer enables an increased focus on our core business, where we aim to continue our profitable growth and overall development.

 

Presentation of the Interim Report

NYAB will arrange a live audiocast regarding the Interim Report on Wednesday, 14 August 2024 at 13:00 CEST. In the audiocast, NYAB CEO Johan Larsson and CFO Aku Väliaho will present NYAB’s financial information and significant events for the second quarter. The audiocast will be available at https://ir.financialhearings.com/nyab-q2-report-2024.

 

Contacts

Johan Larsson, CEO, NYAB AB, +46 (0)70 182 5070, [email protected]

Aku Väliaho, CFO, NYAB AB, +358 (0)40 559 2772, [email protected]

NYAB’s Investor Relations can be contacted by e-mail, [email protected].

NYAB’s Certified Adviser is Augment Partners AB, [email protected], phone +46 8 604 22 55.

This information was submitted for publication at 8:30 CEST on 14 August 2024.