First quarter 2021 (first quarter 2020)
Significant events in the first quarter 2021
Significant events after the end of the quarter
Comments from CEO Martin Malm:
“For the first time in a long time, Transcendent Group begins the year with a positive operating profit (EBIT). We have previously communicated that the measures and cost savings initiated last year are expected to have a full positive effect in 2021. Combined with an increased billing ratio, we can now see the results of our work, and as early as April 20th we communicated that the result of the quarter was expected to positively deviate significantly from previous years' seasonal patterns. Our operating profit amounts to SEK 4.3 million, which corresponds to an operating margin of 8.5 percent. We can thus state that in terms of results, the start of the year is the best in the company's almost twenty-year history. Revenues in the first quarter were basically unchanged compared with the corresponding period last year (–0.1 percent). Our communicated focus for 2021, to ensure good revenues as well as a good margin for existing operations and the whole Group, has been met for the first quarter of the year with an operating profit that improved by SEK 5.7 million.
Despite the challenges from Covid-19 and the uncertainty that still prevails, our assessment is that the market is about to normalize, and we are experiencing strong demand for our services. We see a positive development of the segments Established markets and New markets, especially in terms of operating profit and margins.
During the quarter, we have successfully established our ESG offering, where we support our customers in integrating ESG aspects (Environmental, Social and Governance) in business-critical areas such as strategy, regulatory compliance, and risk management. Here, we believe that the market situation ahead looks good, driven by strong megatrends accelerated by regulations based on the EU's strategy for sustainable financing within the framework of the Green Deal, the Taxonomy Regulation, and guidelines from the European Banking Authority (EBA).
My assessment is that the second quarter will also be able to deliver an operating profit that significantly exceeds previous years' seasonal patterns. Given the demand we see for our services combined with an increasingly normalized market, I am convinced that we will succeed in building on Transcendent Group's positive trend and deliver sustainable growth over time.”
Link to the report
The report is attached in this press release and is available at https://transcendentgroup.com/investor-relations/