July-September

• Net sales for the period decreased by 11.3% to EUR 42.5 (47.9) million. Organically, net sales decreased by 8.4%
• During the quarter the contract portfolio decreased despite that six contracts were renewed and four contracts were won, as seven contracts were lost, exited or divested. Portfolio run rate annualized net sales at the end of the quarter was EUR 165.4 million, compared to EUR 169.2 million during the second quarter of 2020
• Operating profit amounted to EUR 0.5 million, compared to a profit of EUR 0.5 million prior year
• Adjusted EBITDA decreased to EUR 3.0 million from EUR 3.8 million prior year, excluding the effect of implementation of IFRS 16 Leases. In constant currencies, Adjusted EBITDA for the quarter was EUR 3.1 million. Adjusted EBITDA with IFRS 16 implementation was EUR 3.8 (4.9) million
• Cash flow from operating activities amounted to EUR 1.7 (7.6) million, of which change in working capital amounted to EUR -0.9 (6.2) million
• Net loss amounted to EUR -2.9 million compared to a loss of EUR -1.7 million prior year
• The Adjusted EBITDA for Discontinued operations was EUR -0.2 (‑0.5) million and the net loss was EUR -0.0 (-1.5) million, which is not included in the reported numbers above
• Group net loss for the quarter, including discontinued operations, was EUR -2.9 (-3.2) million

January-September

• Net sales for the period decreased by 13.1% to EUR 127.2 (146.3) million. Organically, net sales decreased by 10.4%
• Operating loss amounted to EUR -2.2 million, down from a loss of EUR -1.7 million prior year
• Adjusted EBITDA decreased to EUR 6.0 million from EUR 10.0 million prior year, excluding the effect of implementation of IFRS 16 Leases. In constant currency Adjusted EBITDA would have been EUR 6.5 million. Currency fluctuations had a significant impact on revaluations of internal receivables and payables, especially in the first quarter, impacting Adjusted EBITDA by EUR -2.2 million (-0.1). Adjusted EBITDA with IFRS 16 implementation was EUR 8.8 (13.3) million
• Cash flow from operating activities amounted to EUR 8.8 (10.4) million, of which change in working capital amounted to EUR 4.2 (8.9) million
• Net loss amounted to EUR -15.8 million compared to EUR -6.7 million prior year
• The Adjusted EBITDA for Discontinued operations was EUR -1.0 (-1.6) million and the net loss was EUR -1.2 (-17.0) million, which is not included in the reported numbers above. Group net loss for the year, including discontinued operations, was EUR -17.0 (-23.7) million

Events during the quarter

• On 15 September 2020, Quant announced a signing of a three-year maintenance contract with Alcoa on their Alcoa Mosjøen site in Norway. This is estimated to have an annual contract revenue of EUR 10 million, up from the range of EUR 7.5-9.3 million announced in September
• On 10 November 2020, after the close of the period, it was announced that NKT, a customer in Region Europe, will insource its maintenance after Quant successfully transformed its maintenance operations over the past three years. The decision goes into effect on June 30, 2021 and Quant’s contact portfolio will decrease by EUR 9.2 million in the fourth quarter of 2020

Telephone conference

A telephone conference where management comment on the report is held at 11:00 CET on November 30th, 2020. Details for participation by telephone are found ahead of the call on www.quantservice.com/investor

Stockholm, 30 November 2020

Quant AB (publ) 

For further information, please contact:

André Strömgren, CFO: +46 708 410 796

E-mail: ir@quantservice.com

Quant AB (publ) is a global leader in industrial maintenance. For over 30 years, we have been realizing the full potential of maintenance for our customers. From embedding superior safety practices and building a true maintenance culture, to optimizing maintenance cost and improving plant performance, our people make the difference. We are passionate about maintenance and proud of ensuring we achieve our customers’ goals in the most professional way. The group operates internationally in close to 20 countries world-wide, employing 2,300 people. The parent company is located in Stockholm, Sweden.

Quant AB (publ) is privately held by Nordic Capital since 2014. For additional information about the group, please visit www.quantservice.com.

This information is information that Quant is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on 30 November 2020