SERSTECH AB

Half-year report 1 January – 30 June 2020

Serstech Group -                                                                    Serstech Group –                       
Second quarter 2020                                                              Period 1 January – 30 June 2020

Net sales: KSEK 308 (5 089)                                                   Net sales: KSEK 6321 (8 340)
Profit for the period: KSEK -6 820 (-3 349)                              Profit for the period: KSEK -10 025 (-7 008)
Earnings per share SEK -0,10 (-0,05)                                      Earnings per share SEK -0,14 (-0,11)
Earnings per average number of shares: SEK -0,10 (-0,05)    Earnings per average number of shares: SEK -0,14 (-0,11)  

The second quarter was naturally heavily influenced by the ongoing pandemic and our sales was significantly lower than normal. In April and the first half of May, the vast majority of ongoing tenders were either postponed indefinitely or cancelled. In late May and in June, several of the postponed or cancelled tenders were reopened, some end-customers mentioning the reason being an increased narcotics problem in the country. In June, we also noted a significantly higher  activity level among our partners, with customer meetings and demonstrations being possible again in some regions.

The plan and goal for 2020 was to grow our revenue well beyond 100% and we also had high ambitions in our product development roadmap for the year. The plan was to grow our R&D capacity in both Sweden and Romania and double our sales team. As a direct result of the effects from Covid-19, we initiated a cost-cutting program in mid-March. We have asked eleven colleagues to leave the company and managed to achieve an overall fixed cost reduction by more than 60% per month from April to October. The majority of staff reductions has been done in Lund, leaving the team in Cluj Napoca relatively untouched.