Sectra’s three-month interim report 2020/2021: Strong growth in order bookings and cash flow begins the fiscal year
Linköping, Sweden, September 4, 2020 – International medical imaging IT and cybersecurity company Sectra’s (STO: SECT B) highest priority is to help customers give patients the best possible care and to protect critical infrastructure and communication where society is the most vulnerable. Demand for the company’s services and products remained high during the first quarter and order bookings more than doubled compared with the year-earlier period. Aside from the typical seasonal effects, sales and profit were affected by the ongoing pandemic. With a strong financial position, positive cash flow and significant recurring revenue, Sectra is relatively well equipped to continue managing the pandemic but will, like others, be affected by it.
First quarter in figures
- Order bookings increased 156.5% to SEK 612.3 million (238.7). Of the order bookings during the quarter, 12% were recognized during the quarter and a further estimated 24% to 34% pertains to revenue within 12 months after the end of the quarter.
- Net sales amounted to SEK 298.9 million (332.8). Adjusted for currency fluctuations, net sales amounted to SEK 306.8 million.
- Operating profit totaled SEK 27.4 million (29.4), corresponding to an operating margin of 9.2% (8.8). Adjusted for currency fluctuations, operating profit amounted to SEK 29.8 million.
- Profit before tax amounted to SEK 21.4 million (30.6).
- Cash flow improved and after changes in working capital amounted to SEK 85.5 million (neg: 28.0).
Comments from Torbjörn Kronander, President and CEO of Sectra AB
“Our customers and employees are doing a fantastic job maintaining society’s critical functions and meeting the needs arising during the difficult circumstances brought about by the pandemic. New working methods have been introduced, and on several occasions, we have delivered new functionality that helps customers meet their challenges.”
“The pandemic has not stopped us from expanding the Sectra family with new customers during the quarter. Both Imaging IT Solutions and Secure Communications reported significantly increased order bookings, which contributed to more than doubling the Group’s order bookings compared with the year-earlier quarter. As expected, our sales volume was lower than the comparative period, primarily due to delays caused by the pandemic. Additionally, a stronger Swedish krona led to a weaker outcome. The pandemic and currency fluctuations have had the largest effect on the outcomes in Imaging IT Solutions and Business Innovation, while Secure Communications reported sales growth. However, reduced travel, among other factors, entailed reductions in certain expense items. The Group reported a currency-neutral operating profit on par with the comparative quarter, which we are pleased with given the current situation.”
“Recent customer satisfaction surveys conducted in the US established that Sectra has performed well during the pandemic, further increasing the already-high levels of customer satisfaction. This shows that our corporate culture is strong and that we have fantastic employees. With satisfied customers, a strong balance sheet, a positive cash position and significant recurring revenue, we are relatively well equipped to manage the high level of uncertainty in the world.”
See the attached interim report for further CEO comments and information.
Presentation of the interim report
Torbjörn Kronander, President and CEO of Sectra AB, and Mats Franzén, CFO of Sectra AB, will present the financial report and answer questions. The presentation will be held in English.
Time: September 4, 2020 at 10:00 a.m. (CEST)
To participate, follow online at investor.sectra.com/q1report2021 or call one of the following numbers five to ten minutes before the conference begins:
This information constitutes information that Sectra AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and/or the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 08:15 a.m. (CEST) on September 4, 2020.
Sectra assists hospitals throughout the world to enhance the efficiency of care, and authorities and defense forces in Europe to protect society’s most sensitive information. Thereby, Sectra contributes to a healthier and safer society. The company was founded in 1978, has its head office in Linköping, Sweden, with direct sales in 19 countries, and operates through partners worldwide. Sales in the 2019/2020 fiscal year totaled SEK 1,661 million. The Sectra share is quoted on the Nasdaq Stockholm exchange. For more information, visit https://sectra.com/.