Bifogade filer
CTS Year-end report 2024
Prenumeration
Strong acquisition momentum in a stable market
| OCTOBER – DECEMBER 2024 |
| • Reported total revenue amounted to SEK 783.8 million (363.1), an increase of 116%. • Reported adjusted EBITDA amounted to SEK 85.4 million (34.1), an increase of 150%. • LFL total revenue amounted to SEK 859.6 million (800.6), an increase of 7%. • LFL adjusted EBITDA remained unchanged at SEK 111.1 million (111.2). • During the quarter, our position was further strengthened through seven key acquisitions. • During the quarter, secured senior bonds totaling SEK 1.3 billion were issued. |
| JANUARY – DECEMBER 2024 |
| • Reported total revenue amounted to SEK 1,642.3 million (680,5). • Reported adjusted EBITDA amounted to SEK 117.3 million (41.7). • LFL total revenue amounted to SEK 2,399.8 million (2,379.2), an increase of 1%. • LFL adjusted EBITDA amounted to SEK 191.7 million (189.1), an increase of 1%. • Net debt/LFL adjusted EBITDA as per 31 December 2024 was 4.9. • David Boman was appointed CEO in August. • The group has during the year conducted seventeen acquisitions and taken a prominent position in the Nordic tire service market. |
Strong acquisition momentum and significant revenue growth describe the fourth quarter of 2024.
Stable commercial development
During 2024, our market has moved sideways. The first half of the year was characterized by a softened demand and a generally cautious purchasing behaviour. In the second half, we observed a moderate recovery in demand, driven by improved macroeconomic conditions, which generally had a positive impact on transport activity. Poland is an exception, as it has lost a significant share of transport activity to both Ukraine and Russia due to the war in Ukraine. During the autumn, we strengthened our sales organization and increased our market presence. We also had high commercial activity, which led to an expanded customer base and renewed contracts. The generally increased demand, along with our own initiatives to strengthen commercial performance, delivered results, with LFL revenues increasing by 7% during the quarter. The full-year result shows positive organic development in our Nordic countries and resilience in Poland.
Strong acquisition momentum
During the year, we completed a total of 17 acquisitions, 14 in Sweden and 3 in Finland. We have welcomed some of the industry's leading local workshops into the group. What unites many of them is a strong commercial spirit and close customer relationships built around excellent service.
One of the most significant transactions was Lapin Kumi Oy – a leading independent tire service company in Finland. Through this merger, the group's position in the Nordic region was strengthened, creating excellent opportunities to expand the service offering to our customers and further develop the group's operations.
Platform for growth
During the autumn, we established clear management and country organizations and appointed several key functions to support our strategic journey. At the same time, we have embraced our newly acquired entities. In a period of strong growth through acquisitions while simultaneously reshaping our operations, we have managed to defend our margins. Our LFL adjusted EBITDA for the full year amounted to 191.7 MSEK, corresponding to 8.0% EBITDA margin. Synergy effects from the larger scale are ahead of us.
Long-term financing for continued growth
As part of our work on long-term strategic financing, CTS refinanced its bank debt in November 2024. The previous bank debt and shareholder loans were repaid, and the company issued secured senior bonds of SEK 1.3 billion. The transaction was substantially oversubscribed which is a clear testament to the market's confidence in what we have accomplished so far and our future plans.
Strong position for 2025
As we close 2024, we reflect on a year in which CTS established itself as a prominent new player in the Northern European tire service market. The group, completing its first full financial year in 2024, grew to SEK 2.4 billion in LFL revenue. By the end of the year, we employed over 700 people across four countries, with 42 workshops and 4 retreading facilities.
We are proud of what we have accomplished. Together with our loyal and diversified customer base, we now have a strong position to continue creating value for all of the group's stakeholders in 2025.
David Boman
CEO
For further information, please contact:
David Boman, CEO, +46 70 508 84 99
Monica Ljung, CFO, +46 708 74 85 20
Forward-looking information
Some statements in this report are forward-looking and the actual outcome may be significantly different. In addition to the factors specifically highlighted, other factors may have a material impact on
the actual outcome. Such factors include, but are not limited to, the general economic situation, changes in exchange rates and interest rates, political developments, the impact of competing products and
their prices, disruptions in the supply of materials.
This information is such information that Circular Tire Services Europe Holding AB (publ.) is obliged to publish in accordance with the EU Market Abuse Regulation. The information was published by the above-mentioned contact persons on February 25, 2025, at 08:10 am (CET).
About CTS Group
CTS is a leading, brand-independent platform for tire services, primarily focused on commercial vehicles serving trucks, buses, and heavy equipment operators. We have approximately 700 employees across Sweden, Finland, Norway, and Poland. Our operations include 42 tire workshops and 4 retreading facilities.
More information about CTS Group is available www.ctsinvestors.com.