Q4 continues to improve, no second wave effects

Ready in a virtual/physical world with a long-term focus

Well positioned and financed for acquisitions

No second wave effects in Q4, according to the CEO
Today, we hosted CEO Henrik Ekelund on the ABGSC Investor Days. Henrik gave a general introduction to BTS and what we thought was new information was primarily around the development during the second wave of the pandemic in Q4. Henrik commented that they have not seen any negative effects on demand or activity in Q4, as companies have already adapted to a virtual world and delivery. This was encouraging for us to hear, and makes us confident that the recovery seen in Q3 vs Q2, should also continue in Q4.

Long-term focus emphasised
BTS decided early on in the pandemic to not maximise profits in 2020, when it lost 70% of its revenues from physical delivery overnight. It instead decided to keep all employees, keep all clients, and transform the business from physical delivery to a full virtual delivery. This has been successful, and the company is now ready to help enterprises in the new world implementing corporate culture and strategy. A service that should see boosted demand post the crisis, as companies have to change even faster. This should support BTS, in our view.

Growth on the agenda, both organic and M&A opportunities
2020 has been a fantastic year to recruit great people according to Henrik, and on the agenda is also a high speed of innovation and the search for acquisitions. The global market for strategy implementation is large and fragmented, which creates opportunities for BTS which has a strong balance sheet (net cash). Henrik was confident in the company starting a new journey post 2020 with long-term sales and earnings growth, similar to what we have seen BTS been doing in the last 20 years. We think that BTS is doing the right thing, and looks well prepared for a world with both physical and virtual delivery.

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