• Sales +110%, adj. EBIT SEK -0.5m vs. ABGSCe
• Some more revenue recognised in this quarter, order book SEK 1.8m
• Highlights Fortune 500 agreement and eMELT-ID launch

Q4 results

Sales came in at SEK 7.6m (+110% vs. ABGSC 3.6m, +82% vs. FactSet cons. 4.2m), -4.6m y-o-y. EBIT was -19.4m (+22% vs. ABGSC -24.8m, +23% vs. cons. -25.3m), and adj. EBIT was -17.2m (-3% vs. ABGSC -16.7m) for a margin of -225% (ABGSC -458%). The company produced FCF of -13.1m (+20% vs. ABGSC -16.2m), and ended the quarter with a cash balance of 34.1m vs. R12m FCF -41.7m. Some more revenue was recognised in the quarter compared to what we expected, and the company exited Q4 with an order book of SEK 1.8m. The quarter also saw heavy investments in e-MELT, reflected in activated work and capex, but on the cash flow level, this was partly offset by a positive WC contribution.

Estimates and outlook

On numbers alone, '24e-25'e sales come up 22% and adj. EBIT come down 1%. The outlook remains largely unchanged, with management highlighting the launch of eMELT-ID, and the multiple partnerships and agreements signed recently, emphasising the company's leading position within Tungsten printing, and the resulting agreement with a Fortune 500 technology company.

Valuation

The share is up 51% L3M (vs. Swedish small cap +4%), and is currently trading at 16-3x '23e-'25e EV/Sales on our pre-report estimates. There will be a conference call with management tomorrow at 11:00. The call can be followed on Finwire.