Enea AB

Interim Report January - September 2019

STOCKHOLM, Oct. 23, 2019 /PRNewswire/ -- Solid growth and profitability

Third quarter 2019

• Revenue amounted to SEK 250.2 (209.6) million, equivalent to a 19 percent increase.

• Operating profit excluding non-recurring items increased to SEK 63.5 (51.9) million, corresponding to an operating margin of 25.4 (24.8) percent.

• Operating profit increased to SEK 63.5 (51.2) million, equivalent to an operating margin of 25.4 (24.4) percent.

• Earnings per share increased to SEK 2.37 (1.84).

• On 9 July, Enea reported signing a multi-year , EUR 21.2 million contract on one of its key accounts.

• On 23 August, Enea announced that the company had issued 1,965,000 shares in a directed share issue raising proceeds of approximately SEK 271 million before transaction costs. This new share issue resulted in 10 percent dilution.

January - September 2019

• Revenue amounted to SEK 751.2 (593.2) million, equivalent to a 27 percent increase.

• Operating profit excluding non-recurring items increased to SEK 201.5 (133.0) million, corresponding to an operating margin of 26.8 (22.4) percent.

• Operating profit increased to SEK 197.7 (122.2) million, equivalent to an operating margin of 26.3 (20.6) percent.

• Earnings per share increased to SEK 7.21 (4.61).

Significant events after period end

• Enea made an early redemption of the bond loan of SEK 500 million from March 5 2018. In connection with this, the company signed a new bank loan of SEK 250 million over 3 years.

Comments from Jan Häglund, President and CEO

Enea's third quarter 2019 was a period of revenue and earnings growth. The strong growth by Network Solutions (revenue 38 percent higher than the same quarter last year) was particularly positive. Our latest acquisition, of a business unit developing policy and access control software, has progressed better than initial estimates. Even excluding this latest acquisition, Network Solutions grew organically by 6 percent, mainly from new customers and business in traffic management and cyber security.

Our dependence on Operating System Solutions continues to decrease. This product group contributed 23 percent of total turnover in the quarter, compared to 29 percent in the same period last year. Operating System Solutions' revenues were down 7 percent, a trend we expect to continue. The contract signed in July 2019 on one of our key accounts gives us predictable revenues over a four-year period. We foresee continued solid profitability in this segment and we'll keep realizing efficiencies and adapting our operations to customer needs and business volumes.