Year-end report for January-December 2019

Fourth quarter 2019 (fourth quarter 2018)

• Total revenue amounted to SEK 57.9 million (52.8), a growth of 9.7 percent compared to the corresponding period last year.
• EBITDA amounted to SEK 6.4 million (2.3).
• EBITDA-margin amounted to 11.1 percent (4.4)
• Operating profit (EBIT) amounted to SEK 3.9 million (1.6).
• EBIT-margin amounted to 6.8 percent (3.0).
• Profit before tax amounted SEK 2.9 million (1.9).
• Cash flow amounted to SEK 11.4 million (5.1).
• Average number of employees amounted to 131 (113).
• Earnings per share amounted to 0.59 SEK (0.07).

January-December 2019 (January-December 2018)

• Total revenue amounted to SEK 195.8 million (181.3), a growth of 8.0 percent compared to the corresponding period last year.
• EBITDA amounted to SEK 13.5 million (12.9).
• EBITDA-margin amounted to 6.9 percent (7.1).
• Operating profit (EBIT) amounted to SEK 3.8 million (10.0)
• EBIT-margin amounted to 1.9 percent (5.6).
• Profit before tax amounted to SEK 1.7 million (9.9).
• Cash flow amounted to SEK 8.9 million (4.4).
• Average number of employees amounted to 123 (98).
• Earnings per share amounted to 0.41 SEK (1.02).
• The Board of Directors will propose to the annual general meeting that no dividend is paid out for the full year 2019.

Significant events in the fourth quarter

• In October Magnus Karlsson was appointed temporary CEO for the subsidiary Regulatory Technology. After an external recruitment process, it was decided that Magnus Karlsson was to be appointed as permanent CEO. Investments into the digitalization of our service offering within RegTech is key to our continued expansion.
• On the 22^nd of October 2019 the company’s shares were listed on Nasdaq First North Premium Growth Market. The offer consisted of in total 1 ,612, 904 shares where the principal shareholders sold 645,162 shares and the company issued 967,742 new shares. The offer was substantially oversubscribed.
• A new service, RFA Monitor, within RegTech was launched in October. The new service is an add-on module to the existing RFA product and is a simple tool to remain updated on changes in legislation for our customers.
• In connection with Christina Falk (CEO of Transcendent Group Väst AB until August 2019) leaving her employment within Transcendent Group, a buyback of shares corresponding to 19.8 percent of the shares in Transcendent Group Väst AB was conducted.  

Significant events after the end of the quarter

• No significant events have occurred since the end of the quarter.

Comments from CEO Martin Malm:

2019 was an eventful year for Transcendent Group. We have maintained a high pace throughout the organization, with establishments on two new markets, Netherlands and Germany, continued development of our operations and the listing on Nasdaq First North Premier Growth Market in October.

In the last quarter our revenues amounted to SEK 57.9 million, an increase of 9.7 percent compared to last year, which resulted in total revenues of SEK 195.8 million for the full year, an increase of 8.0 percent.

With an attractive employer brand and a strong demand for niche consulting services within Governance, Risk and Compliance, Transcendent Group is very well positioned. Increased efforts in Sweden, continued geographical expansion and development of our offering will create value for customers and shareholders. Finally, I want to thank all employees, customers and investors for the year that has passed, we are looking forward to an exciting 2020.

For further information, please contact:
Martin Malm, CEO Transcendent Group
Martin.Malm@transcendentgroup.com
+46 73 335 94 26

This is information that Transcendent Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was sent for publication, through the agency of the contact person set out above, on 20 February 2020 at 08:00 (CET).

About Transcendent Group
At Transcendent Group you will meet experienced consultants in Governance, Risk and Compliance. Transcendent Group’s services provide security and opportunities for government agencies, businesses and other organizations in a variety of industries. The company was established in Stockholm in 2001 and has from the start built a differentiated offering based on a value-driven culture with experienced experts. Transcendent Group has been ranked as one of Europe’s, Sweden’s and Norway’s best workplaces in 2019 and has been a Great Place to Work since 2012. Transcendent Group is listed on Nasdaq First North Premier Growth Market. The company’s Certified Adviser is Avanza Bank, +46(0)8-409 421 20, corp@avanza.se. For more information, visit www.transcendentgroup.com.