Q4 order intake of SEK 17m (-21% vs. ABGSCe)

The company expects the problems to be temporary

We await full Q4 numbers

Order intake below guidance and ABGSCe…
On Friday after close, Artificial Solutions (AS) pre-released its FY’19 numbers for net sales, EBITDA, and order intake. The company expects to report Q4 sales of SEK 11m (-5% y-o-y), EBITDA of SEK -21m, and order intake of SEK 17m (-32% y-o-y). As such, sales and EBITDA came in 31% and 51% below our forecasted SEK 16m and SEK -31m, respectively, while the order intake was 21% below ABGSCe.

…due to a delayed anticipated order from US customer
The profit warning was issued due to the meagre order intake, as the company has not provided guidance for sales nor EBITDA metrics. Consequently, the FY’19 order intake growth of 14% is below its guidance of “a medium (and long-term) order intake growth that shall exceed the NLP market” that was given in conjunction with its listing in H1’19. According to the company, this stems from a delayed anticipated order from an existing major customer. The delay is expected to be temporary.

Full Q4 numbers due on 27 February
We await the Q4 report so we can see the full details. We note also that the company is currently raising up to SEK 120m through a rights issue in order to strengthen its balance sheet. We had already pencilled in a capital injection into our estimates, as the company had a stretched cash position by the end of Q3 and is currently cash flow negative.

info@introduce.se (Introduce.se)

ABG Sundal Collier - Introduce.se