Acuvi AB | |
Corporate ID no. 556539-6396 | 1 |
Interim report July - September 2023
The third quarter in brief
• Net sales remained essentially unchanged compared with the corresponding period in the preceding year.
• Operating profit before depreciation/ amortisation (EBITDA) totalled SEK 7.0 million (3.3), corresponding to a margin of 16 percent (7).
• Operating loss totalled SEK -18.6 million (-22.3)
July - September | January - September | |||
2023 | 2022 | 2023 | 2022 | |
Net sales, SEK thousand | 45,169 | 44,989 | 145,652 | 129,247 |
Operating profit before depreciation and amortisa- | 7,024 | 3,308 | 29,247 | 4,939 |
tion (EBITDA) (SEK thousand) | ||||
Operating profit/loss (EBIT) (SEK thousand) | -18,597 | -22,292 | -45,165 | -96,919 |
Earnings/loss per share (SEK) | -0.39 | 0.00 | -1.48 | -2.22 |
Events:
During the third quarter | After the end of the third quarter | |
• No significant events occurred | • | Acuvi announced the introduction of a new |
robotics solution for the Neurotech market | ||
• | Acuvi announced a strategic partnership | |
with the company, IVF2.0 |
Interim Report Q3 2023
Acuvi AB | |
Corporate ID no. 556539-6396 | 2 |
The CEO's view
ACTION AND ENTREPRENEURSHIP
Step by step, we are promoting Acuvi as a supplier of high-precision movement and smart positioning solutions.
- Olof Stranding, CEO
Nearly a year has passed since I was given the opportunity to take on the role of CEO of Acuvi. The Board of Directors was clear that it was a high priority that we lower the Company's risks by reducing our overall costs and focusing on profitability and cash flow. I also saw the need to move away from a certain big-company mindset with elements of micromanagement, to an environment where concrete actions and entrepreneurship are better rewarded.
Although there has been no growth in the third quarter compared to the corresponding period in 2022, what is important is that we generate growth going forward, and that we maintain strict cost controls. It is also important that tied-up capital be reduced. It will be easier to balance growth and tied-up capital as we grow, but this will require stringent measures and tough priorities from time to time.
In terms of overall costs, we have succeeded in creating a well-functioning group of companies that is delivering rising profits at the EBITDA level. Our ambition is to further increase profit margins, but this is a gradual process. However, we have an interesting leverage on profitability - we can support increased sales levels with relatively unchanged resources. In late May, the company published an assessment of sales and profits for the whole of 2023. We are staying on course to achieve this.
As I see it, the lack of sales growth is due to several key factors. Firstly, a large share of our sales is driven by customer-specific projects, in which sales are not always highly scaleable. This is mainly true for our American subsidiaries, where sales have risen over time, but some individual years can end up plateauing without growth. Although our operations are generating solid profitability, the Group's overall growth may be muted periodically. The Acuvi divisions that sell standard products
to industrial customers, primarily the subsidiary PiezoMotor, have shown higher growth. Historically, our growth has been more than 30 percent annually and we are seeing some high activity
among new and existing customers. Our instrument business also has good prospects for further growth moving forward.
Step by step, we are promoting Acuvi as a supplier of high-precision movement technology and smart positioning solutions. A preview of what is to come is available on our website, which was recently updated with products aimed at industrial players. By presenting a wider product range in the same place, we will achieve a greater impact across the different parts of the Acuvi Group.
To conclude my comments: the way that we conduct our marketing work clearly shows how Acuvi has become a company that is highly action oriented and how we can cooperate well between the Group's various functions. Achieving this aim requires the right type of individuals and an environment where positive and constructive actions are encouraged and rewarded. We have come a long way in the past year and I look forward to continuing our work together.
Olof Stranding, CEO
Interim Report Q3 2023
Acuvi AB | |
Corporate ID no. 556539-6396 | 3 |
The Group's third quarter
Net sales for the Group during the third quarter of 2023 amounted to SEK 45.2 million (45.0). Other operating income during the quarter amounted to SEK 3.8 million (0.1).
The Group's total depreciation and amortisation during the quarter was SEK 25.6 million (25.6), of which amortisation of goodwill accounted for SEK 24.3 million (24.2), and other depreciation/amortisation SEK 1.3 million (1.4).
Gross profit excluding depreciation/ amortisation totalled SEK 13.2 million (15.0), corresponding to a gross margin of 29 percent (33). Operating profit before depreciation/ amortisation (EBITDA) totalled SEK 7.0 million (3.3), corresponding to a margin of 16 percent
(7).
Cash flow from operating activities, before changes in working capital, amounted to SEK 14.2 million (0.3) in the third quarter. The restriction of working capital adversely impacted cash flow by SEK -11.6 million (-2.6), mainly due to increased tied-up inventory and payments related to the acquisition of TPA Motion. During the quarter, a total of SEK
8.5 million was paid out for stay-on bonuses. Tied-up inventory was mainly due to the build up of inventory for framework orders in the fourth quarter and early 2024. Cash flow from operating activities, before changes in working capital, amounted to SEK 2.6 million (-2.4). Excluding acquisition-related payments, cash flow from operating activities after changes in working capital amounted to SEK 11.1 million (-2.4).
During the period, SEK 2.9 million was invested in intangible assets, most of which pertained to Acuvi's new micromotor platform, ULTRA.
Cash as at 30 September 2023 amounted to SEK 28.8 million, compared with SEK 20.6 million at 30 June 2023.
The Group's first nine months
Net sales for the Group during the first nine months of 2023 totalled SEK 145.7 million (129.2), corresponding to an increase of 13 percent. The figure includes a supplementary invoice of approximately SEK 8 million related to royalties. Excluding this supplementary invoice, net sales rose by 7 percent. A stronger dollar has contributed to the higher net sales figure, relative to the comparison period.
The Group's total depreciation and amortisation from January to September was SEK 74.4 million (102.7), of which amortisation of goodwill accounted for SEK 70.7 million (98.1), and other depreciation/amortisation SEK 3.7 million (4.6). Most of the depreciation/ amortisation was recognised under 'Cost of goods sold'.
Gross profit excluding depreciation/ amortisation totalled SEK 54.9 million (46.5), corresponding to a gross margin of 38 percent (36). Operating profit before depreciation/ amortisation (EBITDA) totalled SEK 29.2 million (4.9), corresponding to a margin of 19 percent
(4). Excluding the supplementary invoice for royalties during the second quarter, EBITDA was 15 percent.
Cash flow from operating activities, before changes in working capital, amounted to SEK
24.5 million (1.4). The restriction of working capital adversely impacted cash flow by SEK -28.3 million (-12.2). Cash flow from operating activities, after changes in working capital, amounted to SEK -3.8 million (-10.8). During the year, a total of SEK 16.8 million was paid out for stay-on bonuses and supplementary considerations. Excluding acquisition-related payments, cash flow from operating activities after changes in working capital amounted to SEK 13.0 million (-10.8).
Interim Report Q3 2023
Acuvi AB | |
Corporate ID no. 556539-6396 | 4 |
Shares and share capital
Acuvi shares are traded on the Nasdaq First North Growth Market under the symbol 'ACUVI'. The last bid price on 30 September 2023 was SEK 10.66, and market capitalisation, accord- ingly, amounted to SEK 273 million.
Acuvi's share capital on 30 September 2023 amounted to SEK 12.8 million, distributed between 25,630,411 shares.
Shares and share capital
Number of | Shareholding | |
shares | (%) | |
Shareholder | 30 Sept 2023 | 30 Sept 2023 |
Adam Dahlberg through companies | 3,532,136 | 13.8% |
Gaudium IVST, LLC | 2,287,168 | 8.9% |
Handelsbanken Microcap | 2,100,000 | 8.2% |
Dennis Barnes | 1,581,397 | 6.2% |
Swedbank Robur Ny Teknik | 1,357,467 | 5.3% |
Monesi Förvaltnings AB | 1,305,000 | 5.1% |
Management | 918,729 | 3.6% |
Jerry Fredriksson through companies | 490,000 | 1.9% |
Margareta Nilsson | 451,030 | 1.8% |
Gunvald Berger | 388,503 | 1.5% |
Others (approx. 3,400 individuals) | 11,218,981 | 43.8% |
Total | 25,630,411 | 100.0% |
Personnel
At the close of the third quarter of 2023, the Group had 55 employees. The average number of employees for the period was 54 (58), of whom 14 (15) were women.
Financing
At the end of the quarter, the Group had cash and cash equivalents of SEK 28.8 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 are working continuously to ensure that the company has appropriate financing.
Interim Report Q3 2023
Acuvi AB | |
Corporate ID no. 556539-6396 | 5 |
Principles for the preparation of the interim report
The financial statements in this interim report have been drawn up in accordance with the same principles as the company's most recent annual report for 2022, that is to say, in accordance with the Swedish Annual Accounts Act and BFNAR [the Swedish 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 https://acuvi.com/finan- cial-reports/
Financial calendar
Year-end report January - | |
December 2023 | 7 Mar 2024 |
Certified Adviser
Corpura Fondkommision AB
Telephone: +46 (0)72 2523451
E-post: ca@corpura.se
www.corpura.se
Submission of interim report
The Board of Directors and the CEO affirm that this interim report, to the best of their knowl- edge, gives a true and fair presentation of the Company's operations,
position and results.
Uppsala, 10 November 2023
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 interim 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
Interim Report Q3 2023
Acuvi AB | |
Corporate ID no. 556539-6396 | 6 |
Consolidated income statement (SEK thousand)
July - September | January - September | |||
2023 | 2022 | 2023 | 2022 | |
Net sales | 45,169 | 44,989 | 145,652 | 129,247 |
Cost of goods sold | -57,614 | -55,589 | - 165,144 | - 185,439 |
Gross profit/loss | -12,445 | -10,600 | -19,492 | -56,192 |
Selling expenses | -4,136 | -2,579 | -12,878 | -7,769 |
Administrative expenses | -4,645 | - 6,837 | -15,939 | -23,461 |
R&D expenses | -577 | -2,200 | -2,047 | -9,487 |
Other operating income | 3,820 | 141 | 5,374 | 1,453 |
Other operating expenses | -614 | -218 | -183 | -1,463 |
Operating profit/loss | - 18,597 | -22,293 | -45,165 | -96,919 |
Interest income and similar financial income | 9,046 | 21,679 | 9,931 | 35,594 |
Interest expenses and similar financial expenses | -833 | -94 | -4,041 | -1,688 |
Profit/loss after financial expenses | -10,384 | -708 | -39,275 | -62,013 |
Deferred tax | 467 | 689 | 1,435 | 7,197 |
Net profit/loss for the year | -9,917 | -19 | -37,840 | -54,816 |
Basic earnings/loss per share | -0.39 | 0.00 | -1.48 | -2.22 |
Diluted earnings/loss per share | -0.39 | 0.00 | -1.48 | -2.22 |
Average number of shares (thousand) | 25,630 | 25,016 | 25,630 | 24,709 |
Number of shares at end of period (thousand) | 25,630 | 25,016 | 25,630 | 25,016 |
.
Interim Report Q3 2023
Acuvi AB | |
Corporate ID no. 556539-6396 | 7 |
Consolidated balance sheet (SEK thousand)
ASSETS | 30 Sept 2023 | 31 Dec 2022 | 30 Sept 2022 |
Non-current assets | |||
Intangible assets | |||
Capitalised research and development expenditure | 43,372 | 45,812 | 45,881 |
Patents | 2,983 | 2,788 | 3,150 |
Other intangible assets | 2,657 | 1,231 | 1,353 |
Goodwill | 275,755 | 330,903 | 368,390 |
Total intangible assets | 324,767 | 380,734 | 418,774 |
Property, plant and equipment | |||
Plant, machinery and equipment | 15,564 | 15,689 | 17,181 |
Total property, plant and equipment | 15,564 | 15,689 | 17,181 |
Financial assets | |||
Other non-current receivables | 546 | 529 | 0 |
Total financial assets | 546 | 529 | 0 |
Total non-current assets | 340,877 | 396,952 | 435,955 |
Current assets | |||
Inventories | 52,697 | 42,929 | 41,753 |
Current receivables | |||
Accounts receivable | 27,434 | 25,826 | 18,884 |
Other receivables | 19,638 | 7,834 | 11,035 |
Prepaid expenses and accrued income | 2,514 | 6,429 | 2,805 |
Total current receivables | 49,586 | 40,089 | 32,724 |
Cash and bank balances | 28,822 | 15,222 | 14,807 |
Total current assets | 131,105 | 98,240 | 89,284 |
Total assets | 471,982 | 495,192 | 525,239 |
Interim Report Q3 2023
Acuvi AB | |
Corporate ID no. 556539-6396 | 8 |
EQUITY AND LIABILITIES | Note 30 Sept 2023 | 31 Dec 2022 | 30 Sept 2022 |
Equity | 1 | ||
Share capital | 12,815 | 12,508 | 12,508 |
Other capital contributions | 476,214 | 471,495 | 472,949 |
Retained earnings including loss for the period | -182,199 | -144,276 | -102,674 |
Total equity | 306,830 | 339,727 | 382,783 |
Provisions | |||
Deferred tax | 6,091 | 6,785 | 7,294 |
Other provisions | 17,471 | 20,874 | 22,245 |
Total provisions | 23,562 | 27,659 | 29,539 |
Non-current liabilities to credit institutions | 10,509 | 7,078 | 10,198 |
Other non-current liabilities | 30,405 | 64,509 | 17,796 |
Total non-current liabilities | 40,914 | 71,587 | 27,994 |
Bank overdraft facilities utilised | 23,218 | 5,263 | 0 |
Current liabilities to credit institutions | 0 | 1,631 | 23,876 |
Advances from customers | 1,569 | 396 | 0 |
Accounts payable | 17,713 | 19,422 | 18,218 |
Other current liabilities | 37,901 | 16,265 | 38,309 |
Accrued expenses and prepaid income | 20,275 | 13,242 | 4,520 |
Total current liabilities | 100,676 | 56,219 | 84,923 |
Total equity and liabilities | 471,982 | 495,192 | 525,239 |
Interim Report Q3 2023
Acuvi AB | |
Corporate ID no. 556539-6396 | 9 |
Consolidated statement of cash flows (SEK thousand)
In this report, only the consolidated cash flow for the group is recognised.
July - September | January - September | |||
2023 | 2022 | 2023 | 2022 | |
Profit/loss before financial items | -18,597 | -22,293 | - 45,165 | - 96,919 |
Amortisation/depreciation/impairment | 25,293 | 23,943 | 66,932 | 72,161 |
Interest paid | -1,225 | -426 | -6,069 | -1,688 |
Other | 8,768 | -962 | 8,731 | 27,636 |
Adjustment for non-cash items | 32,836 | 22,554 | 69,594 | 98,109 |
Interest received | 0 | 3 | 60 | 96 |
Income tax paid | 0 | 0 | 0 | 132 |
Cash flow from operating activities before | 14,239 | 265 | 24,489 | 1,418 |
changes in working capital | ||||
Inventories | -9,652 | -5,373 | -11,268 | -13,700 |
Operating receivables | 5,826 | -1,946 | -9,981 | -2,974 |
Operating liabilities | -7,772 | 4,679 | -7,050 | 4,460 |
Changes in working capital | - 11,598 | -2,640 | -28,299 | -12,214 |
Cash flow from operating activities | ||||
after changes in working capital | 2,641 | -2,375 | - 3,810 | -10,796 |
Investing activities | ||||
Acquisition of intangible assets | - 2,940 | -249 | -5,439 | -2,926 |
Property, plant and equipment sold | 0 | 0 | 0 | 8,435 |
Acquisition of property, plant and equipment | -240 | -546 | -4,465 | -889 |
Cash flow from investing activities | -3,180 | -795 | -9,904 | 4,620 |
Financing activities | ||||
Newly taken out loans | 0 | 13,000 | 0 | 18,000 |
Amortisation of loans | 0 | 0 | 0 | -7,114 |
New share issue | 0 | 0 | 11,037 | 0 |
Increase in current financial liabilities | 8,762 | 0 | 16,277 | 0 |
Cash flow from financing activities | 8,762 | 13,000 | 27,314 | 10,886 |
Cash flow for the period | 8,223 | 9,830 | 13,600 | 4,710 |
Opening cash and cash equivalents | 20,599 | 3,591 | 15,222 | 8,571 |
Exchange-rate differences and other changes in | 0 | 1,386 | 0 | 1,526 |
value of cash and cash equivalents | ||||
Closing cash and cash equivalents | 28,822 | 14,807 | 28,822 | 14,807 |
Interim Report Q3 2023
Acuvi AB | |
Corporate ID no. 556539-6396 | 10 |
Parent Company's consolidated income statement (SEK thousand)
July - September | January - September | |||
Note | 2023 | 2022 | 2023 | 2022 |
Net sales | 5,601 | 6,045 | 14,853 | 22,154 |
Cost of goods sold | 1,839 | -8,182 | 25 | -22,375 |
Gross profit/loss | 7,440 | -2,137 | 14,878 | -221 |
Selling expenses | -2,325 | -1,914 | -3,297 | -4,912 |
Administrative expenses | -6,009 | -6,259 | -9,298 | -17,996 |
R&D expenses | -9,172 | -1,136 | -9,515 | -5,957 |
Other operating income | 1,316 | 21,486 | 3,948 | 36,569 |
Other operating expenses | 0 | -129 | -663 | -534 |
Operating profit/loss | -8,750 | 9,911 | -3,947 | 6,949 |
Interest income and similar financial income | 6,465 | 0 | 12,361 | 0 |
Interest expense and similar financial | ||||
expenses | - 5,185 | -333 | -4,665 | -1,292 |
Profit/loss from financial investments | 1,280 | -333 | 7,696 | -1,292 |
Net profit/loss for the year | -7,470 | 9,578 | 3,749 | 5,657 |
Interim Report Q3 2023
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Acuvi AB published this content on 13 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 10:24:09 UTC.