Third Quarter Report 2024
SERSTECH GROUP, 1 JULY – 30 SEPTEMBER 2024
- Net sales amounted to KSEK 3 392 (13 593).
- EBITDA amounted to KSEK -6 657 (-329).
- EBIT amounted to KSEK -8 518 (-3 333).
- Cash flow from operating activities amounted to KSEK -3 623 (12 719).
- Earnings per share amounted to SEK -0.04 (-0.02).
- Earnings per average number of shares amounted to SEK -0.04 (-0.02).
SERSTECH GROUP, 1 JANUARY – 30 SEPTEMBER 2024
- Net sales amounted to KSEK 38 935 (58 704).
- EBITDA amounted to KSEK 344 (17 145).
- EBIT amounted to KSEK -5 287 (8 215).
- Cash flow from operating activities amounted to KSEK -3 108 (2 964).
- Earnings per share amounted to SEK -0.03 (0.04).
- Earnings per average number of shares amounted to SEK -0.03 (0.05).
Message from the CEO
As of the end of the third quarter, we have secured five substantial orders, bringing total sales for the first three quarters to 39 MSEK. Given the nature of our business, order timing can vary, resulting in occasional periods of lower sales. Q3 2024 represented the first such period in over 18 months. While this distribution pattern may reoccur, it does not signal a decline in market demand. Notably, following the end of the quarter, we received our fourth order of the year from Chilean law enforcement, valued at 9.7 MSEK, with delivery scheduled before year-end.
We remain optimistic about achieving robust growth over the next 12 months. However, in light of the Q3 results and the remarkable 268% growth recorded in 2023, we do not anticipate overall growth for the full year of 2024.
At the close of the quarter, we launched a major software upgrade for the Serstech Arx mkII. The initial launch of this product in May marked a significant technological leap, introducing a new approach to chemical identification. This software update enhances the precision of chemical mixture identification. This capability is par ticularly advantageous for law enforcement agencies, where field-detected narcotics are often mixed substances. Enhanced component identification within these mixtures adds substantial operational value.
The software upgrade also expanded the number of substances identifiable by the Serstech Arx mkII from 17,000 to 24,000, positioning Serstech with one of the largest substance libraries in the industry.
In July, Serstech participated in a two-week military exercise with US Chemical and Biological Threat teams, where new technologies were evaluated in realistic conditions. Feedback was overwhelmingly positive, with the Serstech Arx mkII recognized as the top technology by participants. Following this success, we have been invited to a subsequent evaluation event in November. Interest from US military is primarily driven by the solution’s compact design, intuitive interface, robust civilian and military communication features, and its unique capability to identify biotoxins.
Demand remains strong across both the law enforcement and civil defense sectors. Looking forward, we anticipate significant contributions from the military defense sector starting in 2025, with continued growth expected in the years beyond. Although we project negative growth for 2024, we are confident in returning to a strong growth and profitability in 2025 and onwards.
Stefan Sandor, CEO
November 2024
For further information, please contact:
Stefan Sandor,
CEO, Serstech AB Phone: +46 739 606 067
Email: ss@serstech.com
or
Thomas Pileby,
Chairman of the Board, Serstech AB Phone: +46 702 072 643
Email: tp@serstech.com
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 08:45 CET on November 8, 2024.
Certified advisor to Serstech is Svensk Kapitalmarknadsgranskning AB (SKMG).
About Serstech
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
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