Transcendent Group: Interim report January-March 2022

The first quarter 2022 (first quarter 2021)

• Total revenue amounted to SEK 60.6 million (51.0), an increase of 18.8 percent compared to the corresponding period last year.
• EBITDA amounted to SEK 8.8 million (7.0).
• The EBITDA margin amounted to 14.5 percent (13.6).
• Operating profit (EBIT) amounted to SEK 6.6 million (4.3).
• The EBIT margin amounted to 10.9 percent (8.5).
• Profit before tax amounted to SEK 6.4 million (4.2).
• Cash flow amounted to 5.9 MSEK (-4.3).
• The average number of employees amounted to 123 (111).
• Earnings per share amounted to 0.69 SEK (0.56).

Significant events in the quarter

• Transcendent Group strengthens offering in information and cyber security services with new expert recruitments
• Following a period of high staff turnover and limited possibilities to reach profitability, Transcendent Group decides to wind up the operations in the Netherlands
• Transcendent Group was ranked as Sweden’s 10th best workplace on Great Place to Work Sweden’s annual top list in the medium-sized companies’ category. Transcendent Group is also the highest ranked company of all medium-sized companies listed on any of Nasdaq Stockholm’s marketplaces. In 2021, Transcendent Group was ranked 8th best workplace.

Significant events after the end of the quarter

• Transcendent Group has been ranked as Norway’s 2nd best workplace on Great Place To Work’s annual ranking, in the small companies’ category. This is the fifth year in a row that Transcendent Group is on the top list in Norway. In 2021, the company was ranked third on the list.

Comments from CEO Martin Malm:

”2022 has continued on the same path as previously with another strong quarter that was characterized by profitable growth. At the same time, we continue to reach our clear ambition to even out the earnings capacity between the quarters.

In the first quarter of 2022, we increased our sales by almost 19 percent to SEK 60.6 million compared to the corresponding quarter last year. We are also exhibiting a strong EBIT margin of almost 11 percent, which equals a profitability increase of more than 50 percent compared to the corresponding quarter last year. The first quarter of the year is normally characterized by a somewhat lower activity due to holidays and vacations, but this year we have exhibited high activity during the quarter. It is by far our best first quarter in the history of the company.

Demand for our GRC services continues to be very strong and Cyber Security remains the area where our services are most sought-after. We currently see a strong demand in all our markets and have been able to increase profitability in our customer projects.

With such a strong start to 2022 behind us, I am convinced that Transcendent Group will succeed in delivering a strong year that continues to build our trend of sustainable and profitable growth.”

Link to the report

The report is attached to this press release and is available at https://transcendentgroup.com/investor-relations/