SmartCraft ASA (SMCRT) – Q2 2024: Continued growth with solid profitability
27 August 2024 - SmartCraft ASA, the leading Nordic provider of mission-critical SaaS solutions to small and mid-sized companies in the construction sector, today reported its results for the second quarter of 2024, with record-high revenues with continued high margins. The company ended the period with annual recurring revenue (ARR) of NOK 461 million, which represents an annual growth of 29 percent. Organic ARR growth was 11 percent.
Reported revenue in the second quarter was NOK 133 million (+32 percent), of which 90 percent was recurring, including a dilution of 7 percentage points from the recent acquisitions. The adjusted EBITDA–capex margin was 29 percent, including a negative effect of 3 percentage points from the acquired companies. Churn was 8 percent in the second quarter, up 0.5 percentage points from the first quarter 2024.
“We extended our long-term growth track record in the second quarter with a strong combination of organic growth and acquisitions. Operating margins stayed strong, and given the tough market conditions in the construction industry, we are pleased with this steady performance," said CEO of SmartCraft Gustav Line, and continued:
"Our solutions are primarily aimed at small and medium-sized businesses focused on the renovation segment. These companies have proven to be less affected by the soft macro conditions than the broader construction sector. Anticipating a medium-term improvement in the general construction sector, we remain confident in our medium-term financial targets of 15-20 percent organic growth and increasing margins due to the scalability of the business.”
In the second quarter, SmartCraft broadened its business in Sweden by acquiring Locka and entered the UK market with the acquisition of Clixifix. SmartCraft has a solid track-record of value accretive acquisitions, improving profit margins of acquired businesses and increasing recurring revenues. The objective is to accomplish this with both Locka and Clixifix as well.
“SmartCraft boasts a robust balance sheet and substantial free cash flow. This enables us to be proactive in the mergers and acquisitions sector. We are particularly enthusiastic about entering the UK market, massively enlarging our addressable market. Clixifix will serve as a platform for organic growth and further acquisitions in the UK,” said Gustav Line.
The second quarter 2024 report and presentation materials are enclosed.
- ENDS –
WEBCAST PRESENTATION
Investors, analysts, and journalists are welcome to join an English-language webcast presentation of the report today, Tuesday 27 August 2024, at 08:00 CET.
Webcast link: https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20240827_2
Presenters: CEO Gustav Line and CFO Kjartan Bø
Viewers are welcome to submit written questions through the webcast player during and after the presentation. A recording of the presentation will be available on the same link and at https://smartcraft.com/investor-relations/ immediately after the live stream is concluded.
DISCLOSURE REGULATION
This information is considered to be inside information pursuant to the EU Market Abuse Regulation, and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
CONTACTS
* Gustav Line, CEO, +47 952 67 104, [email protected]
* Kjartan Bø, CFO, +47 410 27 000, [email protected]
ABOUT SMARCRAFT
SmartCraft is the leading Nordic provider of mission-critical SaaS solutions to SMEs in the construction sector, increasing their productivity, margins, and resource efficiency. The Group currently has more than 13 300 customers and 260 employees distributed across Norway, Sweden, Finland and UK. SmartCraft was listed on the Oslo Stock Exchange in June 2021.
