Revenue growth despite challenging macro environment
First quarter 2020 (first quarter 2019)
Total revenue amounted to SEK 51.1 million (46.9), a growth of 8.8 percent compared to the corresponding period last year.
EBITDA amounted to SEK 1.4 million (1.5).
EBITDA margin amounted to 2.7 percent (3.2)
Operating profit (EBIT) amounted to SEK -1.4 million (-0.5).
EBIT margin amounted to -2,7 percent (-1.0).
Profit before tax amounted SEK -0.4 million (-0.7).
Cash flow amounted to SEK -4.4 million (-6.3).
Average number of employees amounted to 132 (118).
Earnings per share amounted to -0.09 SEK (0.20).
Significant events in the first quarter
In March, Transcendent Group announced measures to address the increased uncertainty connected to Covid-19. The measures include a slow-down of establishments in new markets, further product development within RegTech is put on hold and that an overall cost review of costs is conducted. The overall cost review and the implemented measures include revision of fixed and variable remuneration, reorganization of group functions and certain staff reductions.
Significant events after the end of the quarter
In April, Transcendent Group announced that the company has been ranked as Sweden’s 7th best workplace on Great Place to Work’s annual top list and is the highest ranked listed company, in the category medium-sized companies. In 2019, Transcendent Group was ranked as Sweden’s 12th best workplace.
In May, Transcendent Group announced that the company’s CFO Susanne Lindqvist decided to leave the company, her last working day will be 31 August 2020. The company has appointed Mattias Brodin as acting CFO from 1 June 2020 and at the same time initiated the search process for a permanent CFO.
Comments from CEO Martin Malm:
Although the first quarter was characterized by an increasing uncertainty relating to the consequences of Covid-19, we can report that Transcendent Group reached a growth of almost 9 percent, compared to the corresponding period previous year.
The EBIT margin on the established markets was satisfactory, approximately 13 percent. This is in line with our strategy and enables continued growth on the new markets, which in the quarter accounted for the reported growth. On group level, profit before tax was slightly negative, in line with our seasonal pattern which means that most of the year’s result is created in the last quarter.
Focus for 2020 is to ensure profitability and liquidity. We will obtain this partly by the implemented measures and continued cost control, and with support from the governmental programs that we can use. My assessment is however that the most important driver is a continued demand for our services and products within Governance, Risk and Compliance.
Link to full interim report
The full interim report is available in Swedish on https://transcendentgroup.com/investor-relations/.
For further information, please contact:
Martin Malm, CEO Transcendent Group
+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 19 May 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, email@example.com. For more information, visit www.transcendentgroup.com.