Solid start of the year.
January – March 2022
A word from the CEO
The start of 2022 has been truly strong. Good margin, increased sales, increase in the number of employees and intensive work with acquisitions. Sales landed at SEK 316 million (301). EBITA was SEK 44.2 million (31.6). The EBITA margin in the first quarter of 2022 was 14.0% (10.5%). Earnings per share were SEK 2.47 (1.75), an increase of 41%.
If we compare our strong start with our recently introduced financial targets, we have far exceeded the margin target of ten percent. To deliver on that goal, at least ten percent over time, overperformance is necessary when times are good. As a premium company, Prevas should thus perform well above the target during these years and especially in quarters with many working days as the margin in consulting companies can vary between quarters. At the same time, we are not quite reaching the growth target of ten percent. One reason for this is the divestment of an enterprise that was beyond Prevas' core business. Excluding that divestment, the revenue growth was ten percent, which is completely on par with the target. It is important to note that our focus is not on individual quarters. We strive to build a healthy business that develops over time and is attractive to all our stakeholders - customers, employees, partners, owners and society.
For several years, we have worked to strengthen our brand. These efforts were intensified at the end of last year, and an extra commitment has also been made in recruitment. During the quarter, staff grew from 756 employees to 781 employees, an increase of three percent. It is gratifying to see that our work is yielding results and more and more people are applying to Prevas. There is and will continue to be major focus on job satisfaction and offering exciting assignments where people can do good, not only for the economy but also for the planet and humankind.
In addition to recruiting more colleagues, we have also worked with acquisitions. This resulted in two acquisitions that were announced shortly after the end of the period – factor10 and BitSim NOW. These additions jointly correspond to an annual turnover in 2021 of almost SEK 80 million, more than 40 new employees and several new sub-consultants. While this is nice, increasing staff numbers is not our biggest driving force. We want to cultivate a network of people and units that are really good in themselves, and that can work together in creating innovative and truly powerful constellations. With the new additions, we are strengthening our capabilities to undertake those assignments requiring leading-edge expertise. More information can be found in our press releases.
Work with acquisitions will continue and only when all parameters are satisfactory will we take the appropriate actions. Business leaders, owners and entrepreneurs who are curious about becoming part of Prevas’ network are welcome to contact Prevas for discussions.
The aggressive invasion of Ukraine during the first quarter has left its mark on the world and will have impact on several levels going forward. It is horrible, of course, and is causing a great deal of human suffering. For Prevas, we have not had any employees, partners or customer assignments in either Russia or Ukraine, and the impact on business is very small from the direct and immediate perspective.
Other aspects such as inflation, pandemic effects, transport problems and difficulties with raw materials and various goods, including semiconductor components, are contributing to overall uncertainty for the future. Despite this, the quarter was characterized by very strong demand, although not quite as intensive as during the second half of 2021. In segments such as Life Science, defense and telecom, demand is very strong, and in the manufacturing industries demand is good with signs of reassessments among customers regarding the future.
During the quarter, Göteborgs Spårvägar (Gothenberg’s public transit operator) announced that it had chosen Prevas as a supplier for management and development of their maintenance system. Being selected through a public procurement is a good indicator of our capabilities and it is also positive with agreements that extend over a longer period of time. Multi-year agreements have also been signed with Nye Veier in Norway, where we will be delivering digital services to their operational and maintenance systems. Our expertise will also contribute to Nye Veier being able to realize its future ambition of being an innovative and driving force in Norwegian transport. This is also in the public sector, with a stable customer and with good prospects for the future.
With a strong start in 2022, we are looking in to the future. There are many uncertainties in the world around us, and regardless of how the economy and demand evolve, the future is in our hands. Prevas will steadily strengthen the company with a focus on creating value for customers and further improving an already attractive workplace.
Johan Strid, CEO Prevas AB
This information is such that Prevas AB (publ) is required to make public in accordance with EU regulations to prevent market abuse and the Securities Market Act. The information was submitted by the above contact person for publication on April 28th, 2022, at 08.30.
This is a translation of an original document in Swedish. In case of dispute, the original document should be taken as authoritative (Delårsrapport jan-mars 2022 at www.prevas.se). Or contact the company direct.
The interim report will later on also be available in English.