First quarter report 2023
- Net sales amounted to KSEK 12 337 (2 054), an increase of 501%.
- EBITDA amounted to KSEK 1 305 (-4 875), corresponding to an EBITDA margin of 11% (-237%).
- Net earnings amounted to KSEK -1 741 (- 6 575).
- Cash flow from operating activities amounted to KSEK -1 570 (-8 876).
- Earnings per share amounted to SEK -0.01 (-0.08).
- Earnings per average number of shares amounted to SEK -0.01 (-0.08).
Comments from the CEO
Serstech is now back to strong growth, and we achieved our highest quarterly sales numbers so far and positive EBITDA in the first quarter of 2023. The revenue is in line with our predictions from last year. We continue to expect strong sales numbers throughout the year and our sales pipeline remains at historically high levels.
Throughout the first half of 2023, we are exhibiting at more than 20 exhibitions around the world. Exhibitions are our main marketing channel, since we meet current and potential partners and end-customers and most of the competitors. The feedback we receive remains positive and it is clear that our new Serstech Arx is well adapted to the customer needs. The production is running well, and we have so far this year no issues with component availability, thanks to the work that was done in 2022 to prepare for the return of the market. If our full-year sales exceed 45-50 MSEK, we may run into some component shortage issues, but we believe that the sourcing work currently being done will ensure our delivery capacity beyond 50 MSEK in 2023. We believe we will continue to see strong growth, but as before, with large variation between quarters.
The outlook for 2023 and 2024 and the results in Q1 have encouraged us to start growing the team again, after the significant down-sizing we were forced to perform during the pandemic. We have filled several of the vacancies in Q1 and we will have another two colleagues starting in June, including a seasoned VP R&D.
We have been working on an electronics upgrade of our Serstech Arx product since the middle of 2022 and we expect to have the first prototype during the summer, and in production in Q3. The upgrade became necessary due to the component shortage and the new version of the electronics is designed to use only components readily available. The positive side-effects of the upgrade include faster startup-time, faster measurement time and longer battery life.
In April, we are upgrading our substance libraries and for the first time in a while, we will make a significant upgrade to our library of chemical warfare agents (CWA). Our instruments are very good at identifying CWA and due to Russia’s aggression in Europe, the demand for this capability has gone up dramatically. Our library will be extended with several new warfare agents and many precursors, i.e. chemicals that are used in the production of CWAs.
The market is back, we have secured the resources we need for continued strong sales growth and we remain confident in our ability to deliver high growth in 2023.
For further information, please contact:
CEO, Serstech AB Phone: +46 739 606 067
Chairman of the Board, Serstech AB Phone: +46 702 072 643
or visit: www.serstech.com
This is information that Serstech AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above at 12:00 CET on April 27, 2023.
Certified advisor to Serstech is Svensk Kapitalmarknadsgranskning AB (SKMG).
Serstech delivers solutions for chemical identification and has customers around the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organizations and first responders. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech’s solution. Serstech’s head office is in Sweden and all production is done in Sweden.
Serstech is traded at Nasdaq First North Growth Market and more information about the company can be found at www.serstech.com