European growth with strong operating cash flow
Financial highlights first quarter
- Organic growth was 5.8% in the quarter. The Group's net sales increased by 140.7% to
SEK 614 m (actual 255, proforma* 571). Acquired growth contributed with 132.3%. Currency effect was 2.6%. Net sales in Region North wasSEK 278 m (255) and net sales in Region South wasSEK 336 m (proforma* 316) -
The Group's adjusted EBITA amounted to
SEK 140 m (actual 104, proforma* 135) with adjusted EBITA margin of 22.9% (actual 40.8%, proforma 23.6%). Region North contributed withSEK 120 m (115), Region South contributed withSEK 38 m (proforma*SEK 31 m) and Group functions contributed withSEK -18 m (-11). -
Net result amounted to
SEK 18 m (24). -
Earnings per share before and after dilution amounted to
SEK 0.17 (0.23 and 0.22). -
Adjusted operating cash flow amounted to
SEK 210 m (157).
Comment from CEO
European growth and strong operating cash flow
The financial performance was solid in the first quarter. The organic growth in Region North increased compared to the previous year, while the net sales development in Region South was stable, in line with expectations. The weak SEK has had a positive impact on sales in the first quarter. Growth drivers in Region North were a combination of strong new sales within the public sector and upselling to existing customers. Our new product ROA (Rättsområdesanalyser), which is sold as an add-on feature, has had a good start to the year. Our EHS businesses and emerging ventures continue to perform well. We are looking at broadening the product suite in Region South, to the benefit of both local markets. Aranzadi LA LEY has started to sell several solutions across both organisations. Our French business Lamy Liaisons has a stable performance in line with expectations.
Region North continues to have strong earnings capabilities, while we have taken the first steps in Region South to harvest synergies.
At the end of March, our leverage based on proforma EBITDA LTM was 3.4x. The operating cash flow was strong. Both our segments have successfully completed invoicing seasons, with low churn. Our cash generation capability enables our M&A agenda, and we keep our eyes open for future European growth opportunities.
Developing our regional businesses and identifying new possibilities
Macro trends in
In Region North, we will continue to focus on meeting our customers' needs and efficiency demands. Our ambition is to provide the highest quality to the best possible user experience that effectively supports their workflow. Growth is driven by adding value to our legal core users, new sales and up-sales within the public sector and continuous organic growth from our emerging ventures and EHS businesses.
In Region South, we are implementing a merger of equals. Our focus is to complete the integration and merging content onto a common technical platform, as well as realising synergies. The merger is progressing according to schedule.
Enhancing customer value with AI
Legal tech progresses rapidly. Generative AI has had great traction following the public launch of ChatGPT at the end of last year. Generative AI will become an important tool for lawyers.
We believe legal tech will play an increasingly important role in assisting legal professionals with the complexity of legislation, and we are present in the space investing in solutions to the future benefit of our customers.
conference call on 9 May
A webcasted telephone conference will be held at
You can follow the presentation via webcast and ask questions in written form on the following page:
https://ir.financialhearings.com/karnov-group-q1-2023
If you wish to participate via telephone, and thereby be able to ask questions verbally, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=200739
The presentation material and the report will be available before the conference starts at www.karnovgroup.com. An on-demand version will also be available after the presentation. The presentation will also be available on www.financialhearings.com.
For more information, please contact:
Pontus Bodelsson, President and CEO
Telephone: + 46 709 957 002
Email: pontus.bodelsson@karnovgroup.com
Telephone: +46 707 597 668
Email: erik.berggren@karnovgroup.com
This press release contains inside information that
*The proforma figures have been included for comparability. The numbers have not been audited by the company's auditor.
https://news.cision.com/karnov-group/r/karnov-group-reports-first-quarter-results-2023,c3766136
https://mb.cision.com/Main/4658/3766136/2043144.pdf
https://mb.cision.com/Public/4658/3766136/a3b5d08dd8e1bf79.pdf
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