Year-end report 2023
The demand for greater precision is rising in areas such as medical technology, the semiconductor industry and automation. Acuvi provides unique technologies and advanced systems to support this development.
Our customers manufacture surgical robots, semiconductor manufacturing equipment and diagnostics systems. Acuvi has its own local presence in Europe and the US. Its head office is located in Uppsala, Sweden. Acuvi shares are traded on the Nasdaq First North Growth Market.
Acuvi AB | |
Corporate ID no. 556539-6396 | 2 |
Positive cash flow and SEK 37 million in EBITDA
Fourth quarter 2023
(1 October to 31 December)
- Net sales totalled SEK 55 million (56).
- Earnings before depreciation and amortisation (EBITDA) totalled SEK 11 million (6).
- The EBITDA margin was 19% (10).
-
Cash flow from operating activities amounted to
SEK 12 million (-7).
Full-year 2023
(1 January to 31 December)
- Net sales totalled SEK 201 million (185)
- Earnings before depreciation and amortisation (EBITDA) totalled SEK 37 million (-19).
- The EBITDA margin was 18% (-10).
- Cash flow from operating activities amounted to
SEK 16 million (-18).
October-December | January-December | |||
(SEK thousand) | 2023 | 2022 | 2023 | 2022 |
Net sales | 55,134 | 55,828 | 200,786 | 185,075 |
Gross profit | 34,471 | 37,028 | 114,027 | 87,193 |
63% | 66% | 57% | 47% | |
Operating profit/loss before depreciation and amor- | 10,530 | 5,634 | 36,791 | -18,527 |
tisation (EBITDA)* | 19% | 10% | 18% | -10% |
Operating profit/loss excluding amortisation of | 8,286 | 4,891 | 27,771 | -25,541 |
goodwill | 15% | 9% | 14% | -14% |
Cash flow from operating activities after changes in | 12,257 | -7,238 | 16,114 | -18,014 |
working capital | ||||
(SEK) | ||||
Earnings per share before and after dilution | -1.31 | -1.71 | -3.05 | -3.88 |
Operating profit/loss excluding amortisation of | 0.32 | 0.20 | 1.09 | -1.03 |
goodwill - per share | ||||
Cash flow from operating activities per share | 0.15 | -0.44 | 0.48 | -0.29 |
* Refer to page 7 for bridge to previous reporting | ||||
Net sales (SEK million) | EBITDA, Rolling Twelve Months (SEK million) |
200
150
100
50
0
2021 2022 2023
40 | |||||||||||||||||
30 | |||||||||||||||||
20 | |||||||||||||||||
10 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
0 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
-10 | |||||||||||||||||
-20 | |||||||||||||||||
2022 | 2023 | ||||||||||||||||
Acuvi AB | |
Corporate ID no. 556539-6396 | 3 |
Events during the fourth quarter
The particular events at Acuvi that have been communicated are:
Acuvi introduced a new presentation model of the income statement, changing from a department-based layout to a layout classified by nature of expense. An income statement classified by the nature of expense is deemed to better reflect how Acuvi conducts and manages its operations and also facilitates the analysis, and a better under- standing, of the company's development and profitability.
Acuvi renegotiated terms and conditions linked to previous acquisitions and improved the company's capital structure. The company also replaced an existing loan with a new credit facility from a Swedish credit institu- tion, resulting in reduced interest expenses. The assessment of Acuvi's Board of Directors and management is that the positive cash flow from the Group's operations, in combination with Acuvi's financing, will ensure full payment of the Group's commitments.
Events after the end of the fourth quarter
No events have been specifically communicated after the end of the fourth quarter.
Acuvi AB | |
Corporate ID no. 556539-6396 | 4 |
The CEO's view
In 2023, Acuvi's operations delivered a positive cash flow and SEK 37 million in EBITDA.
- Olof Stranding, CEO
In 2023, the Board's priorities and my focus were to substantially strengthen cash flow, increase profitability and generate synergies between the Group's various functions. This was the right direction to take in times of uncertainty, with the price of external venture capital on the rise.
The results are clear. Acuvi's operations generated considerably strengthened cash flows and increased profits during the year. We did really well, but there is more to do. It is my conviction that a stringent focus on profitability will continue to form the basis for sustainable growth in both the immediate future and in the long term.
We are in the business of delivering advanced and customised products and systems to our customers, who manufacture everything from surgical robots to cancer diagnostic systems, as well as semiconductor manufacturing equipment. Global trends towards increased miniaturisation and precision are driving customer demand for our technologies and products. During Acuvi's past two years as part of a Group, we have seen the increasing value in having the capacity to offer our customers a broad product range, combined with a local market presence.
To shed some light on how Acuvi's various operations are performing, we have started reporting the net sales of the Group's different revenue streams. We are working hard to integrate the Group companies and to achieve synergies. Therefore, it is useful to prepare our reporting based on our different customer segments.
Our US subsidiary, TPA Motion, is a highly profitable unit with sales that are increasing gradually in pace with the design and growth of new customer projects. Although quarterly variations are natural, TPA Motion's annual growth over time has been about 8 percent. Our ambition is to increase this growth rate, while maintaining the excellent profit level.
In comparison with TPA Motion, our product platforms in the PiezoMotor and Sensapex subsidiaries are expected to result in higher growth moving forward. These businesses are highly scalable in terms of sales, manufacturing and profitability. As product sales account for a greater share of the Group's overall sales, the Group's overall growth rate and profitability will also increase.
Acuvi AB | |
Corporate ID no. 556539-6396 | 5 |
Currently, Acuvi's sales correspond to about SEK 4 million per employee and we are seeing great potential to further increase productivity. In the next few years, I anticipate some important opportunities to increase growth, primarily for PiezoMotor and Sensapex, as well as
TPA Motion.
- Our US presence is providing us with considerable scope to increase our sales in this geographical market.
- For the past few years, we have invested in the creation of a number of new products that will now be launched. I am convinced that this will lead to increased revenues and higher profitability.
- We are seeing a sharp increase in new customers who want to test our products. This is clearly visible in our sales of 'Starter Kits'. In 2020, we sold about twenty, in 2023 about 70 and the target for 2024 is 100.
- We are seeing an increase in the number of large companies who are interested in collaborating with Acuvi, and I consider the agreement we signed with Nikon in 2023 to be a first step. Collaborating with large players will strengthen us as a company and make us more attractive to investors, as well as other customers and partners. This is a key step that will complement the growth of our existing business.
To better reflect Acuvi's greatly improved profitability, strong cash flows and increasing sales in our financial reporting, we are now updating the way we present the income statement in order to clarify the Group's profitability and what it is derived from.
The fact that we manage the company's financial obligations to external parties by means of our own cash flows is likely to be appreciated by investors in times when the cost of external capital has increased significantly.
With a continued focus on profitable growth and our solid control of consolidated cash flows, I look forward to taking on 2024 together with my amazing employees. I would also like to take the opportunity to extend a warm thank you to all our customers, suppliers, Board members and investors for the trust you have shown in Acuvi.
Olof Stranding, CEO
Acuvi AB | |
Corporate ID no. 556539-6396 | 6 |
Revenue streams per customer segment
Industrial customers (OEM)
OEM customers are industrial customers who embed Acuvi's products in their own systems. Acuvi is often a key supplier of the finished product, and supplies both hardware and software. Typically, customers begin evaluating Acuvi's solutions in conjunction with the development of new products. It usually takes the customer about two to three years, from initial tests (Starter Kit) to achieving the commercial phase and serial production. During this time, continuous purchases are normally made.
A greater proportion of OEM customers results in a more stable order intake, which allows for better opportunities to plan production and increase profitability. Acuvi's customers' product lifecycles normally last eight to 12 years. PiezoMotor and TPA Motion primarily sell to OEM solutions, where the product is
a component of a larger system. In 2023, Sensapex products began to be sold to OEM customers as well.
Industrial customers purchase standard products and customised products. Standard products have the advantage of higher profitability, thanks to economies of scale and consistent growth over time. Customised products grow incrementally as new projects are designed and begin to be utilised in the customer's final product.
Life Science Instrumentation (LSI)
LSI customers mainly consist of research institutes and advanced laboratories. Although many of these customers are repeat customers, the sales are not continuous, but more intermittent in nature. Customers often procure complete systems without modifications, and in most cases, such sales require a physical market presence. To meet the requirement for a sales force, Acuvi has chosen to supplement its direct sales with a network of distributors. Of Acuvi's subsidiaries, it is mainly Sensapex that has sales within LSI.
Net sales per revenue stream
2023 | |||
SEK million | 2023 | 2022 | vs. |
2022 | |||
OEM/Industrial standard products | |||
PiezoMotor | 35 | 28 | |
TPA Motion | 8 | 5 | |
Sensapex | 2 | 0 | |
Total standard products | 45 | 33 | 36% |
OEM/Industrial customised products | |||
PiezoMotor | 8 | 8 | |
TPA Motion | 117 | 121 | |
Total customised products | 125 | 129 | -3% |
Total OEM/Industrial | 170 | 162 | 5% |
Life Science Instrumentation | |||
Sensapex | 22 | 20 | |
Total Life Science | 22 | 20 | 10% |
Instrumentation | |||
Royalties | 9 | 3 | |
Total net sales | 201 | 185 | 9% |
Acuvi AB | |
Corporate ID no. 556539-6396 | 7 |
Comments on the report
Up to and including the third quarter of 2023, Acuvi reported its earnings in the form of a department-based income statement. As of this year-end report, profit or loss will instead be classified by the nature of expense in the income statement. The reason for the change is that the Board of Directors and management have assessed that the new presentation format facilitates an understanding of the company's profitability. With the new format, for example, non-cash goodwill amortisation is reported separately. Goodwill amortisation was previously reported under 'Cost of goods sold' and thereby charged to the company's gross profit. As of this year-end report, this is no longer the case.
For full-year 2022, the company reported earnings of SEK 11 million before depreciation and amortisation (EBITDA).
With the new format, surplus values from the acquisition of TPA Motion
are recognised as material costs, which reduces EBITDA for 2022 by SEK 29 million.
The Group's fourth quarter
Net sales and costs
The Group's net sales during the fourth quarter totalled SEK 55 million (56). The Group's material costs during the quarter totalled
SEK 21 million (19), corresponding to a gross profit of 63 percent (66). Other external costs during the quarter totalled SEK 18 million (18). In December, stay-on bonuses were renegotiated in the US company TPA Motion, which was acquired in 2021. The new agreement resulted in a dissolved reserve of approximately SEK 8 million, which was recognised as 'Other income'. Personnel expenses during the quarter amounted to SEK 15 million (12).
Operating profit before depreciation and amorti- sation (EBITDA) in the fourth quarter totalled SEK 11 million (6) or 19 percent (10). During the fourth quarter, goodwill amortisation from company acquisitions completed in 2021 amounted to SEK 24 million (24). Other depreciation/amorti- sation during the period amounted to
SEK 2 million (1).
Balance sheet items and cash flow
Cash flow from operating activities after changes in working capital amounted to SEK 12 million (-7). High deliveries and greater focus on efficient tied-up capital are the primary reasons why inventory decreased by
SEK 9 million during the quarter. During the quar- ter, a loan of SEK 25 million together with the Group's self-generated cash and cash equivalents reduced financial liabilities by SEK 52 million.
Acuvi AB | |
Corporate ID no. 556539-6396 | 8 |
Group full-year 2023
Net sales
The Group's net sales in 2023 amounted to SEK 201 million (185), an increase of 9 percent. The Group's net sales in the OEM/Industrial segment totalled SEK 170 million (162), an increase of 5 percent. Net sales for customised products amounted to SEK 125 million (129), a decrease of 3 percent. Net sales for standard products totalled SEK 45 million (33), an increase of 36 percent. Most of the increase is attributable to PiezoMotors's LEGS platform, where more and more customers are entering the commercial phase. The initiative to broaden the Sensapex market towards industrial customers has also contributed to the growth.
Net sales in Life Science Instrumentation during the year amounted to SEK 22 million (20), an increase of 10 percent. Sensapex's growth as a company amounted to 20 percent. Other income totalled SEK 9 million (3). The main revenue in this category is from royalty income relating to Pie- zoMotor's LEGS patents. Royalty income varies depending on the licensee's sales of products covered by the current licence agreement.
Expenses
The Group's material costs totalled SEK 87 million
- in 2023. The figures for 2022 included SEK 29 million in expensed surplus value from the acquisition of TPA Motion.
Other external expenses amounted to SEK 46 million (61) in 2023. During the year, personnel expenses amounted to SEK 46 million (48). In 2023, Acuvi worked proactively to build a more efficient organisation.
The operating profit/loss excluding depreciation and amortisation (EBITDA) in 2023 was
SEK 37 million (-19) or 18 percent (-10).
The operating loss for the year was
SEK -68 million (-116).
In 2023, goodwill amortisation from the company acquisitions completed in 2021 totalled SEK 96 million (90).
Other depreciation and amortisation during the
year totalled SEK 9 million (7).
Balance sheet items and cash flow
Cash flow from operating activities after changes in working capital amounted to
SEK 16 million (-18). In total, working capital had an impact of SEK -7 million (-21) on tied-up capital. Non-cash items consisted of SEK 104 million (98) in depreciation/amortisation and SEK -7 million (30) in other non-cash items.
Other non-current liabilities consisted mainly of an additional consideration of SEK 17 million for TPA Motion. In 2022, this item was recognised as a provision, but it has now been reclassified as a liability in both the 2023 and 2022 figures. During the year, other non-current liabilities decreased by about SEK 64 million. Half of the decrease was financed by own funds, and the other half of the decrease by a minor share issue and a loan from a credit institution. The loan has a five-year term and is recognised under 'Liabilities to credit institutions'.
Other current liabilities mainly comprise
SEK 17 million, which is the last payment for the stay-on bonus programme aimed at two key individuals in TPA Motion.
Acuvi AB | |
Corporate ID no. 556539-6396 | 9 |
Shares and share capital | Definitions |
- Acuvi shares are traded on the Nasdaq First North Growth Market under the symbol 'ACUVI'. The last price paid on 31 December 2023 was SEK 8.49 and market capitalisation, accord- ingly, amounted to SEK 218 million.
- Acuvi's share capital on 31 December 2023 amounted to SEK 12.8 million, distributed among 25,630,411 shares.
- Gross profit, net sales less material costs.
- EBITDA, operating profit/loss before depreciation and amortisation.
- EBITDA margin, EBITDA divided by net sales.
Shares and share capital at 31 December 2023
Shareholder | Number of | Shareholding |
shares | (%) | |
Adam Dahlberg through companies | 3,532,136 | 13.8% |
Avanza Pension | 3,521,031 | 13.7% |
Gaudium IVST, LLC | 2,287,168 | 8.9% |
Handelsbanken Microcap | 2,100,000 | 8.2% |
Dennis Barnes | 1,581,397 | 6.2% |
Management* | 934,429 | 3.6% |
Nordnet Pension | 530,821 | 2.1% |
Margareta Nilsson | 451,030 | 1.8% |
Futur Pension | 440,523 | 1.7% |
Gunvald Berger | 408,503 | 1.6% |
Others (approx. 3,300 individuals) | 9,843,373 | 38.4% |
Total | 25,630,411 | 100.0% |
* CEO Olof Stranding and Business Area Manager Mikko Vähäsöyrinki
Personnel | Financing |
At the end of 2023, the Group had | Acuvi has a positive cash flow from operating |
55 employees. The average number of | activities. At the end of the year, the Group |
employees for the period was 56 (58), | had cash and cash equivalents of SEK 12.4 |
of whom 14 (15) were women. | million. Utilisable cash and cash equivalents, |
along with cash flows from operating | |
activities, are deemed to be sufficient to cover | |
the Group's needs for the next 12 months. The | |
Group will balance any further investments | |
against the available financial resources at | |
the time. The executive management team | |
and Board of Directors work continuously to | |
ensure that the company has appropriate | |
financing. |
Acuvi AB
Corporate ID no. 556539-6396
Policies for the preparation of the year-end report
The financial statements in this year-end report have been drawn up in accordance with the same principles as the Compa- ny's latest Annual Report for 2022, that is to say, in accordance with the Swedish Annual Accounts Act and BFNAR [the Swed- ish Accounting Standards Board] regulation 2012:1 Annual Reports.
Annual report and annual general meeting
Interim reports and the annual report will be made available via www.acuvi.com/finan- cial-reports/
Financial calendar
Quarterly report January - March 2024
2024-04-23 | |
Publication of Annual Report | 2024-04-30 |
Annual General Meeting | 2024-05-22 |
Quarterly report April - June 2024 | 2024-08-13 |
Interim Report, July - September | |
2024 | 2024-10-22 |
Year-end report January - | |
December 2024 | 2025-02-25 |
Certified Adviser
Corpura Fondkommision AB
Telephone: +46 (0)72 2523451
E-post: ca@corpura.se
www.corpura.se
10
Submission of year- end report
The Board of Directors and the CEO affirm that this year-end report, to the best of their knowledge, provides a true and fair view of the Company's operations, position and results.
Uppsala, 6 March 2024
Adam Dahlberg, Chairman of the Board
Ping Faulhaber, Board Member
Dennis Barnes, Board Member
Henrik Nittmar, Board Member
Joakim Stenberg, Board Member
Olof Stranding, CEO
This year-end report has not been audited by the company's auditor.
Contact point
If you have any questions, please contact: Olof Stranding, CEO
ir@acuvi.com
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Acuvi AB published this content on 12 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 March 2024 19:59:03 UTC.