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StrongPoint - Report largely in line

13 februari 2025

<a id="bm-comp-7ad8fed7-2278-4411-adfb-6190a08a97b7" name="bm-comp-7ad8fed7-2278-4411-adfb-6190a08a97b7" class="BMCustomAnchor"></a><table><tr><td bm-component-id="7ad8fed7-2278-4411-adfb-6190a08a97b7" style="vertical-align: top; width:100.000000%;"><ul><li>Q4: EBITDA of NOK 5m vs ABGSCe NOK 6m</li><li>Lower target range likely</li><li>Estimates likely unchanged</li></ul></td></tr></table><a id="bm-comp-7b36db48-fd78-4b23-863f-1f2429993bce" name="bm-comp-7b36db48-fd78-4b23-863f-1f2429993bce" class="BMCustomAnchor"></a><table><tr><td bm-component-id="7b36db48-fd78-4b23-863f-1f2429993bce" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q4: EBITDA of NOK 5m vs ABGSCe NOK 6m</h3><p>StrongPoint's Q4 showed promising development, although the market continues to be plagued by long decision cycles and project postponements. Sales increased 3% y-o-y on easy comps, an improvement vs. the -7% y-o-y decline on average the last 4Q. Total revenues came in at NOK 340m, +3% vs our NOK 331m. Revenues from Norway were up 4% while revenues from Sweden were up 19% y-o-y, respectively. GP was -1% vs. our estimate, giving a GM of 39.4% (ABG 41%). EBITDA came in at NOK 5m vs. ABGSCe NOK 6m. EPS came in at NOK -0.05 vs. ABGSCe NOK -0.14, driven by taxes. Cash flow from operations was stronger compared to Q3, at NOK 77m vs NOK 10.1m, driven by WC. Net debt came in at NOK 59.6m vs NOK 109m in Q3.</p><p>On outlook: StrongPoint states that, while there has been an uptick in the results, the overall market remains uncertain. The company remains cautious about promising significant short-term improvements.</p><h3 class="bm-h3" style="text-align:left;">Lower target range likely</h3><p style="text-align:left;">StrongPoint targets '25e revenues of NOK 1.5bn-1.8bn and an EBITDA margin of 4-6%; '23 revenue was NOK 1.35bn, so the mid-range implies growth of ~22%. The targets seem challenging given the market growth, and StrongPoint will likely land at or slightly below the targets.</p><h3 class="bm-h3">Estimates largely unchanged</h3><p>The markets remain challenging, but estimates have already come down, and are thus likely to remain largely unchanged.</p></td></tr></table><a id="bm-comp-8c02724e-eaf7-4362-9558-681373f6a1af" name="bm-comp-8c02724e-eaf7-4362-9558-681373f6a1af" class="BMCustomAnchor"></a><table><tr><td bm-component-id="8c02724e-eaf7-4362-9558-681373f6a1af" style="vertical-align: top; width:100.000000%;"><table id="bm-img-9ac926a4-372d-49e3-9784-fcbe4ee916e2" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Deviation table</td></tr><tr><td><img bm-img-encrypt="9ac926a4-372d-49e3-9784-fcbe4ee916e2" bm-img-original-height="441" bm-img-original-width="896" bm-img-svg="image:image_upload/85476_eca45757-464b-427c-90a0-844582785340.svg" bm-img-width-hint="100%" id="bm-id-2fda76ab-3f1f-4dbf-8cfb-462991d8b7fa" src="https://abgsc.bluematrix.com/images/image_upload/85476_eca45757-464b-427c-90a0-844582785340_727.png" svg="/nas/web/clients/abgsc/images/image_upload/85476_eca45757-464b-427c-90a0-844582785340.svg" width="727" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, Company data</td></tr></table></td></tr></table>

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