Sensys Gatso : Interim Report

25/04/2019 - January - March 2019

MSEK	January - March 2019	January - March 2018
Net Sales	78.4	71.7
Order intake	100.0	52.8
Operating profit (EBIT)	-12.2	-14.9
Operating profit (EBITDA)	-0.1	-6.0
Total Comprehensive income	-2.1	-1.7
Earnings per share, before and after dilution (SEK)	-0.01	-0.02
Cash flow from operating activities	-20.6	3.5

Comments from the CEO

Good order intake for the quarter
We had a good order intake quarter of SEK 100 (53) million, which is almost 90 percent higher than the order intake in Q1 2018. Major contributors to this order intake were a large in-vehicle order from our key customer in Australia and extensions of Managed Services contracts with existing customers in the USA. The recurring nature of the total order value amounts to 36 percent.

Traffic Enforcement as a Service
In our 2018 annual report we emphasized our strategic focus on recurring revenue. To create a better understanding for our customers we introduced Traffic Enforcement as a Service. With TRaaS, as we call it, we will bring our new FLUX platform for hardware and our existing software solutions PULS and Xilium together. TRaaS provides complete flexible service solutions for our customers, all around the world.

Delayed deliveries due to fire at supplier
We closed the financial year 2018 with a high total order intake value of SEK 480 million. In December 2018 a fire at our supplier Prodrive resulted in delays in deliveries of our T-series products. Due to the fire, the sales level of SEK 78 (72) million is lower than we would have seen with supply at normal delivery timelines, but 8% higher than the same quarter last year.

Supply is picking up in Q2
The situation at this supplier is now in control and as of April the supply is picking up again. We expect that the negative impact of the delayed deliveries on our revenues in the first quarter, will mostly be recovered in the second quarter.

Oklahoma learning curve
A major breakthrough for our Managed Services business in 2018 was the starting up of a car insurance enforcement program in the state of Oklahoma, USA. Being a completely new program for the US market, which involves multiple third party stakeholders, the Oklahoma project is going through a learning curve, resulting in some delays. We still expect the program to deliver the announced full year revenue of SEK 17 million. The impact of Oklahoma is the main reason why our Managed Services sales in the quarter of SEK 18 (11) million is below our expectations, but 60% higher than last years sales in the segment.

Available cash and financial position
Our available cash has decreased from SEK 153 million to SEK 127 million. This is mainly due to prepayments received in 2018 on various projects, which have been delivered in part in the first quarter. Simultaneously we have build up contract assets, work in progress, relating to projects, impacting our working capital negative. Due to adaptation of the new accounting standard IFRS 16 we have seen a decrease in our Equity/Assets ratio from 71.8 at the end of 2018 to 66.2. Our financial position remains solid.

Outlook
With our new Traffic Enforcement as a Service proposition, we strengthen our position to establish long term customer relationships and to increase our recurring revenue potential going forward. Due to the recovery program at our supplier Prodrive we anticipate no impact on the full year deliveries. Considering our good order intake we feel optimistic about the future.

Ivo Mönnink
CEO, Sensys Gatso Group

Financial information

Invitation to a presentation for press and analysts
On 25 April at 10:00 CEO Ivo Mönnink and CFO Simon Mulder will present the Interim Report for the first quarter, 2019 and answer questions in an audiocast. The presentation can be followed online via the link on Sensys' website: www.sensysgatso.com or by https://tv.streamfabriken.com/sensys-gatso-group-q1-2019

It is also possible to listen to the presentation and ask questions by phone.

Dial-in numbers:
SE: [phone]
UK: [phone]
US: [phone]

The presentation in connection with this report will be published on the website.

Release (pdf)

This information is information that Sensys Gatso Group AB (publ) 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, at 08.30 on 25 April 2019.

For further information please contact:
Ivo Mönnink, CEO
e-mail: [e-mail]
e-mail IR: [e-mail]
Telephone: [phone]

Sensys Gatso Group AB is a global leader in traffic management solutions for nations, cities and fleet owners. Sensys Gatso Group has subsidiaries in Australia, Germany, the Netherlands, Sweden and the USA, and a branch office in the United Arab Emirates. The Sensys Gatso Group's shares are listed on Nasdaq Stockholm and has 195 employees.