The fourth quarter 2021 (fourth quarter 2020)

• Total revenue amounted to SEK 63.0 million (51.6), an increase of 22.0 percent compared to the corresponding period last year.
• EBITDA amounted to SEK 9.5 million (7.2).
• The EBITDA margin amounted to 15.1 percent (13.9).
• Operating profit (EBIT) amounted to SEK 6.0 million (4.0).
• The EBIT margin amounted to 9.6 percent (7.7).
• Profit before tax amounted to SEK 5.3 million (2.5).
• Cash flow amounted to 5.6 MSEK (5.8).
• The average number of employees amounted to 122 (112).
• Earnings per share amounted to 0.30 SEK (0.23).

Full year 2021 (Full year 2020)

• Total revenue amounted to SEK 219.6 million (190.7), an increase of 15.2 percent compared to the corresponding period last year.
• EBITDA amounted to SEK 30.9 million (11.1).
• The EBITDA margin amounted to 14.1 percent (5.8).
• Operating profit (EBIT) amounted to SEK 19.4 million (–0.5).
• The EBIT margin amounted to 8.8 percent (–0.3).
• Profit before tax amounted to SEK 17.6 million (–2.7).
• Cash flow amounted to –4.9 MSEK (2.8).
• The average number of employees amounted to 117 (125).
• Earnings per share amounted to 1.90 SEK (–0.39).

Significant events in the fourth quarter of 2021

• In November Transcendent Group announced that CEO Martin Malm divested 65,000 shares to another existing and long-term shareholder of Transcendent Group. The sale corresponds to 4.2 percent of Martin Malm’s total shareholding, which now amounts to 1,497,945 shares corresponding to 23.0 percent of capital and votes.
• In the middle of November Transcendent Group presented its Nomination committee ahead of the Annual General Meeting 2022.
• In December Transcendent Group’s nomination committee announced it will propose to the Annual General Meeting 2022 for Transcendent Group's CEO Martin Malm to be elected as new Chairman of the Board. As a consequence, Martin Malm informed the Board of Directors that he wishes to resign as CEO.
• Later in December the Board of Directors in Transcendent Group appointed Lars Reidar Vold-Andersen, to new Chief Executive Officer in the company. He will assume his role directly following the Annual General Meeting 2022.
• In line with the dividend policy of Transcendent Group the Board of Directors proposes a dividend of SEK 0.9 per share for 2021 and SEK 0.6 per share as extra dividend. Consequently, the Board of Directors proposes that the Annual General Meeting 2022 resolves a dividend of SEK 1.5 per share.

Significant events after the end of the quarter

• No significant events have occurred since the end of the quarter.

Comments from CEO Martin Malm:

“When we now put 2021 behind us, we can state that it was the best year in the history of Transcendent Group. During the year, we broke previous seasonal patterns and had a more even earning capacity between the quarters - even though the fourth quarter is still important for the full-year result. This has made the business more sustainable and resilient. Additionally, our earning capacity increased by making better use of our resources.

In the fourth quarter, we increased our sales by 22.0 percent compared with the corresponding quarter last year to SEK 63 million, while we show a strong operating margin of 9.6 percent. The driving force in our development is our established markets Sweden and Norway, which continue to show profitable growth in line with our priorities.

We have experienced continued strong demand for our GRC services, where the upward trend in Cyber Security has increased further. To meet demand and strengthen our offer, we have invested in our team and recruited several senior experts in the field of information and cyber security. The reinforcements enable us to position ourselves as one of the leading players in the Nordic market in the area.

With this year's strong financial results behind us, the Board has proposed a dividend for the first time in a listed environment. This proofs the company's progress with a focus on profitable growth, which will also benefit shareholders.”

Link to the report

The report is attached to this press release and is available at https://transcendentgroup.com/investor-relations/