Profitable growth in a turbulent market: Interim report, January – June 2022

The second quarter

• Net sales MSEK 123.9 (103.0), rendering a sales growth of 20% (21%)
• Recurring revenue MSEK 73.5 (60.9)
• The quarter was impacted by items affecting comparability amounting to MSEK 0.0 (-1.1) (attributable to acquisitions)
• EBITA MSEK 31.7 (26.5), rendering an EBITA margin of 26% (26%)
• Adjusted EBITA margin 26% (27%)
• Net income MSEK 17.9 (14.4)
• Basic earnings per share amounted to SEK 1.35 (1.08) and diluted to SEK 1.34 (1.08)

The first six months

• Net sales MSEK 242.6 (197.3), rendering a sales growth of 23% (16%)
• Recurring revenue MSEK 145.4 (113.2)
• The first six months were impacted by items affecting comparability amounting to MSEK 0.0 (-1.1) (attributable to acquisitions)
• EBITA MSEK 62.1 (52.8), rendering an EBITA margin of 26% (27%)
• Adjusted EBITA margin 26% (27%)
• Net income MSEK 34.0 (31.1) 
• Basic earnings per share amounted to SEK 2.56 (2.34) and diluted to SEK 2.55 (2.34)

 

The CEO’s view 

We leave the second quarter with continued strong growth of 20%, of which 17% is organic, and good profitability amounting to 26%. During the quarter we are continuing to recruit at a high tempo and can therefore welcome more than sixty new employees in August – a new record for Lime. Our goal has always been long-term profitable growth. In a turbulent market in which many companies hit the break, this gives us opportunities to keep stepping on the gas and build an even stronger Lime.

Continuing at a fast pace, even when times are tough – history shows that we can
When looking back at the financial footprint we have left as a company, we can proudly declare that we have delivered strong growth and good profitability for more than twenty years. This also applies during market crises such as the IT crash in 2000, the financial crisis in 2008 and most recently the pandemic of 2020. We are once again facing challenging times with the war in Ukraine, higher interest rates and high inflation, which creates general market unease and a more uncertain faith in the future for many companies. In such times, we know that smart business management and professional customer care are more important than ever. With our product offerings and customer-oriented employees, we help other companies to create, retain and deepen the collaboration with their customers. By doing so, we not only make our customers more successful but we also make the lives of the end customers much easier.

With good cost control, a high proportion of recurring income and low customer concentration in several different verticals, we remain strong. While many other growth companies are forced to hit the brake, our profitability and forward-looking culture allow us to keep our foot on the gas.

Stable business position with strong organic growth
During the second quarter we, like many other companies, have noticed longer sales processes, but despite this, we continue to close out many nice deals in all markets and within our verticals. We welcome the German customer Thalhofer Holzzentren GmbH & Co in wholesale, The Norwegian Olympic and Paralympic Committee and Confederation of Sports (NIF), the property company Corem Property Group AB and Karlskoga Energi & Miljö AB in utility, to name but a few. We have also strengthened the organisation within our consulting business, Expert Services, which is one of the contributing reasons for strong organic growth, which amounted to 17% during the quarter.

International expansion and record number of recruitments for future growth
As I mentioned before, the core of our strategy is to invest and grow, even when times are tough. During the pandemic, we expanded into the Netherlands and Germany. We are now also extending our product portfolio internationally by launching Lime Go in the Danish and Norwegian markets. This is part of our focus to scale existing markets.

We are also continuing to keep up the rapid pace on the recruitment side and in August we will be starting our largest onboarding programme ever with more than sixty new employees. Our goal has been to scale our development department and even though we are not really where we want to be, we see an improved situation during the second quarter with many new recruitments. As a software company, we are looking forward to the opportunity to be able to increase the rate of our product development.

How the market will behave after the summer is still uncertain, but regardless of market conditions, our goal is clear: We will still drive Lime towards long-term profitable growth and create an even better company.

I would like to take the opportunity to wish all our customers, colleagues and shareholders a really nice summer!

 

/Nils Olsson, Managing Director and CEO, Lime Technologies

 

Read the entire report in the attached PDF.

 

Invitation to webcast for the presentation of Lime Technologies’ Interim report for January - June 2022

Today, July 15, at 09:30 CEST, analysts, investors, media, and other interested parties are invited to attend a webcast where Lime’s CEO, Nils Olsson, and CFO, Magnus Hansson, 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)

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

Magnus Hansson, CFO & Head of Investors / +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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 07.50 CET on July 15, 2022.

 

About Lime
Lime helps European businesses 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 almost 400 employees. The company has offices in Lund, Stockholm, Gothenburg, Gävle, Oslo, Copenhagen, Utrecht, Cologne and Helsinki. Their customers include everything from sole traders to large organisations. www.lime-technologies.com