Bifogade filer
EN W5 (Q1) Report 2024
Prenumeration
Beskrivning
| Land | Sverige |
|---|---|
| Lista | First North Stockholm |
| Sektor | Informationsteknik |
| Industri | Kommunikation |
Overall, there are very good conditions for W5’s continued growth journey, as evidenced by the figures in the first quarter. With a 36 percent increase in revenue compared to 2023 and a 35 percent increase in gross profit, we maintain a growth rate in line with our revenue goals. High personnel costs due to lower capacity in the first quarter are affecting net profit, but this is something we were prepared for.
Significant events during quarter 1, 2024
- In January 2024, it was announced that Evelina Hedskog will take over as the new President and CEO starting on March 1, 2024.
- On March 18, the Board of Directors resolved on a directed share issue of 229.058 shares to the seller of ArcQor AB to pay an earn-out.
Significant events after the end of the period
- The Annual General Meeting was held on 23 April. The Annual General Meeting resolved in accordance with the submitted proposals, including the re-election of all members of the Board of Directors.
Other important events after the end of the period
- In April 2024, an order of SEK 32 million was received in the Live-Fire Training product area, as well as an option worth SEK 48 million.
- In April 2024, a framework agreement for target equipment worth SEK 60 million was obtained, also in the Live-Fire Training product area.
| 2024 | 2023 | apr 23 – mars 24 | 2023 | |
| MSEK | Jan-Mar | Jan-Mar | LTM | Jan-Dec |
| Income | 97.2 | 71.6 | 420.8 | 395.3 |
| EBITDA | 4.4 | 11.8 | 48.7 | 56.0 |
| EBITDA-margin, % | 4.6 | 16.4 | 11.6 | 14.2 |
| EBITA | 2.0 | 10.6 | 38.5 | 47.1 |
| EBITA-margin, % | 2.1 | 14.8 | 9.2 | 11.9 |
| Net profit for the period | -11.8 | 5.5 | -18.4 | -1.0 |
| Earnings per share, SEK | -0.79 | 0.42 | -1.29 | -0.01 |
| Cash flow from operating activities | -23.5 | 25.6 | 40.4 | 89.4 |
| Order received | 75 | 42 | 281 | 248 |
| Order book | 202 | 286 | 202 | 199 |
JANUARY–MARCH 2024
- Operating income for the quarter amounted to SEK 97.2 (71.6) million, an increase of 36%.
- Profit, EBITA, for the quarter amounted to SEK 2.0 (10.6) million a decrease of 81%.
- Cash flow from operating activities amounted to SEK -23.5 (25.6) million.
- Orders received during the period amounted to SEK 75 (42) million with an order book at the end of the period of SEK 202 (286) million.
CEO EVELINA HEDSKOG COMMENTS
A strong foundation is the key for long-term growth
The ongoing challenging security situation and Sweden’s entry to NATO on March 7th 2024, demands a defence industry capable of meeting the needs at hand. In this context, W5 Solutions has a crucial role to play considering the challenges the Swedish defence and our allies currently face. W5’s experience and expertise, coupled with our ability to swiftly adapt operations, enable us to meet the demands dictated by the changing global landscape. This fact benefits both security policy and business interests.
Quality as a guiding principle
With a professional background in the defence industry, I can affirm that the group possesses many strengths, as I have gotten to know W5’s operations over these initial months. The sense of being a manufacturing company is palpable for all employees in their daily work, and the craftsmanship involved in developing and manufacturing our products is evident across all locations. This is something I believe
is extremely important – the sense of pride and responsibility for the products and services that shapes our offering is remarkably clear among our employees.
Diversified product areas broaden the business
Our five product areas are, in many ways, diverse by nature, which should be seen as a strength. Each individual product area can generate volume sales, while the ability to combine multiple product areas into a system solution broadens the business and increases the complexity of the offering. The ability to operate both as a pure product company and as a system supplier broadens the business and provides flexibility as we expand our business into new markets.
Continued strong order intake
The order book remains stable at around SEK 200 million. This is slightly below the Q1 2023 figures, but the order book also reflects W5’s product mix after last year’s corporate acquisitions, that has led to a shortened lead time from order to delivery. At the same time, it should be noted that we have had a strong order intake after the end of the period, particularly in the Live-Fire product area, a trend we have reason to believe will continue throughout the fiscal year.
It’s also worth mentioning that during Q1 2024, we received our first orders for battery manufacturing. These orders are a result of the competence and capability we possess in the battery charger area. As customers now seek alternatives to non-European battery suppliers, we see enormous potential for future business within this product area.
Long-term growth is prioritized
Overall, there are very good conditions for W5’s continued growth journey, as evidenced by the figures in the first quarter. With a 36 percent increase in revenue compared to 2023 and a 35 percent increase in gross profit, we maintain a growth rate in line with our revenue goals. High personnel costs due to lower capacity in the first quarter are affecting net profit, but this is something we were prepared for. Fluctuations in capacity utilization are natural in an industry with long cycles, and our strong liquidity allows us to retain our expertise even in less intense periods. Being able to keep out staff is both a competitive advantage and a necessity for building
long-term growth.
Synergies in a growing market
The focus for the near future is clear; we need to consolidate our operations and capitalize on the market synergies that our acquired companies can contribute to within the group. We will generate more and larger deals by reaching out with our entire offering to each subsidiary’s customer base while creating system deals where we combine several of our product areas.
This, together with an increased ambition in the export market, are clear initiatives aimed at harnessing synergies as well as capturing opportunities in a growing market.
The Interim report is available for download at: https://w5solutions.com/investor-relations/