Serstech has since 2017 had the financial goal to reach 150 MSEK in revenue on a rolling 12-month basis by the end of 2019. The board of directors has concluded that the likelihood of reaching this goal in 2020 is low.
Over the last three quarters, Serstech has grown at a triple-digit pace and expects a continued high growth for the coming five-year period. The market for Serstech’s products is more than 1500 MSEK and has an annual growth rate of 10%, which is expected to be consistent for the next several years.
The security market, which remains the main market for Serstech, provides business opportunities unevenly distributed over the year, which will result significant differences between quarters. This distribution is due to the long purchasing cycles, the opaque public purchasing processes in the security industry and the indirect sales model the company applies.
The board has therefore set a five-year revenue growth target of at least 50% per year on average. The EBITDA results target is set to be at least 25% by the end of the five-year period and the expectation is that the results will be close to zero at the beginning of the period, due to the increased investments in R&D and sales.
For further information, please contact:
CEO, Serstech AB
tel: +46 739 606067
This is information that Serstech AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above at 09.00 CET on December 2, 2019.
Certified advisor to Serstech is Västra Hamnen Corporate Finance AB, phone: 040-20 02 50, e-mail: email@example.com
Serstech delivers solutions for chemical identification and has customers across 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 is traded at Nasdaq First North Growth Market and more information about the company can be found at www.serstech.com