WindowMaster is adjusting guidance for 2023 and announces expectations of 5-10% growth in 2024
Company Announcement No. 039-2023 – inside information Vedbæk, 13th December 2023
WindowMaster is adjusting its guidance for 2023 to revenue DKK 233-238m from DKK 240-250m and EBITDA to DKK 12-15m from DKK 14-18m. In 2024, revenue is expected to grow by 5-10% to DKK 240-265m, while EBITDA is expected to increase to DKK 16-22m. The outlook for 2024 is supported by high order intake in the 4th quarter of 2023.
Guidance for 2023
WindowMaster is adjusting the guidance for 2023. Revenue is now expected to be in the range of DKK 233-238m (previous expectation: DKK 240-250m) and EBITDA in the range of DKK 12-15m (previous expectation: DKK 14-18m), equivalent to an EBITDA-margin of approximately 5-6%. The reduced revenue growth in 2023 is related to a disappointing development at product customers focused on the Residential market plus postponements of specific projects in the UK and North America. The contribution margin is not affected and remains solid, while the EBITDA result is lower as it has been decided not to make any corrections to the overall fixed cost base based on the projected outlook. The EBITDA guidance includes on-off costs, partly related to the write-off of slow-moving stock plus other minor elements – in total 1.1m DKK.
The final revenue and EBTIDA for 2023 will depend on the percentage of completion of ongoing projects – determining the level of revenue that can be taken to income.
Order intake for the full year 2023 is expected to be in the range of DKK 250-255m (2022: DKK 254m), based on an increase seen in especially the 4th quarter of 2023.
Cash flow from operations is expected to be positive in the second half, resulting in a significantly lower financial gearing at the end of 2023 (End H1 2023: NIBD/EBITDA 4.1).
In the Annual Report for 2023, WindowMaster will incorporate and follow IFRS accounting standards. This will result in changes to the guidance for 2023 and 2024, as published in this announcement. All comparable financial accounts will be disclosed in connection with the Annual report for 2023.
Outlook for 2024
In 2024, revenue is expected to grow organically by approximately 5-10% to DKK 240-265m and EBITDA is expected to grow to DKK 16-22m, equivalent to an EBITDA-margin of 7-9%.
The outlook for 2024 includes a high level of uncertainty particularly in relation to projects and the Residential segment due to higher interest rates. However, WindowMaster is expecting the business environment to improve during 2024, and especially during 2025. The uncertainty relates to the timing of when the improved business environment will materialize in terms of increasing orders and revenue. As a result, WindowMaster’s guidance for 2024 is below the targeted growth of 10-15% as announced in the strategy plan from June 2022. However, it is the Management’s assessment that the most realistic growth scenario is between 5-10% - coming partly from price increases and increasing project volumes in North America and UK.
The fixed cost and investment base is expected to be kept unchanged, which is expected to lead to improved lead generation, opportunities, and revenue. Increased profitability and high cash conversion will further reduce the financial gearing. Thus, NIBD/EBITDA is expected to be below the target of maximum 2.0 by the end of 2024.
Guidance overview for 2023 and 2024:
| New guidance 2023 (Published on 13 December 2023) |
Previous guidance 2023 (Published on 12 May 2023) |
Guidance 2024(Published 13 December 2023) | |
| Revenue | DKK 233-238m | DKK 240-250m | DKK 240-265m |
| EBITDA | DKK 12-15m | DKK 14-18m | DKK 16-22m |
Strategy period for Accelerate Core
Considering the 2023 results and the expectations for 2024, WindowMaster has decided to extend the Accelerate Core Strategy period to the end of 2026 instead of 2025 due to changed assumptions related to the external environment.
Considerations for a transfer of listing to the main market
WindowMaster is currently considering the possibility of transferring the listing place from Nasdaq First North Growth Market Denmark to Nasdaq Main Market Small Cap in Copenhagen within the Accelerate Core Strategy period (to the end of 2026).
Although the initial preparations and considerations are ongoing, no formal decision to transfer listing place has been made, and there is no certainty that such a decision will finally be taken.