(Oslo, Norway, 12 February 2020) StrongPoint ASA (StrongPoint, OSE: STRONG) reported revenues of NOK 299.0 million in the fourth quarter of 2019, down from NOK 307.9 million in the same quarter in 2018, and an EBITDA of NOK 30.6 million (22.5). StrongPoint today outlines the target of becoming the retailers’ trusted in-store technology and e-commerce partner, with a strategy ambition of NOK 2.5 billion in revenues and EBITDA margins of 13-15% in 2025.
“In the quarter, the continued strong performance of 12 % in our Retail Technology business area, and the acceleration of revenue growth in e-commerce, underpins our strategy of positioning StrongPoint as retailers’ trusted in-store technology and e-commerce partner. Through our leading portfolio of technology solutions and highly valued service and support offering, we will help retailers to stand out, sustain growth and spur productivity,” says Jacob Tveraabak, Chief Executive Officer of StrongPoint.
In a company strategy update session following the presentation of the fourth quarter 2019 financial result, StrongPoint outlines the strategy and ambitions towards 2025. As a foundation for creating shareholder value, the growth strategy is based on profitable and organic growth, cost control and a solid balance sheet, targeting revenues of NOK 2.5 billion and EBITDA margins of 13-15% in 2025.
“We are proud to announce the new StrongPoint growth story and are set to deliver. The 2025 revenue ambition of NOK 2,5 billion showcases the significant opportunities in our key markets, but we underline that this will not be a linear growth path, as 2020 is a year for strategy implementation and investments,” says Tveraabak.
Combined, StrongPoint’s e-commerce and in-store solutions and services are very well positioned at the crossroads of multi-channel retailing: online growth and cost-cutting in offline retail. From a North European and grocery focused starting point, StrongPoint will pursue a three-step approach to geographical expansion and growth:
- Roll-out of the full portfolio of solutions in key markets, including Norway, Sweden, the Baltics and Spain, utilizing our strong sales, service and support organization and model, applying innovative tools and sharing of best practices.
- Activation of a selected proprietary solution offering in selected markets, including Italy,Greece, the US and the Netherlands through strong local presence, service and support, targeting the largest cost-buckets in offline and online grocery retail with existing and new solutions.
- Utilizing StrongPoint´s market access platform for global retail technology providers targeting leading retailers in the key markets, leveraging StrongPoint´s strong market- and one-stop-shop position.
“In e-commerce, we are offering a complete solution for managing and optimizing the entire flow of online orders from planning and picking to last mile delivery. Serving both pure online retailers, and offline retailers developing online. In-store, our offering improves consumers’ shopping experience from their first pick to check-out, and at the same time increasing retailers’ productivity through automated, integrated, secure and cost-saving solutions. From stockroom to check-out. Combined with our attractive market access platform for new technology solutions, proved by the recently announced partnership with Sunrise Technology, this creates a solid platform for profitable growth towards 2025,” says Tveraabak.
In the fourth quarter 2019, StrongPoint reported revenues of NOK 299.0 million (307.9) and an EBITDA of 30.6 million (22.5), where IFRS 16 effects totaled NOK 6.3 million. Reported operating profit was NOK 17.5 million, up from NOK 12.3 million in the corresponding quarter in 2018, while the cash flow from operating activities ended at NOK 23.3 million (20.5).
StrongPoint ASA will present the financial results for the fourth quarter 2019 at 08:15 CET Wednesday 12 February 2020, followed by an extended company strategy update session. Both the presentation of the fourth quarter 2019 financial results and the company strategy update session will take place at ABG Sundal Collier, Munkedamsveien 45 E, 7th floor, 0250 Oslo.
The fourth quarter 2019 financial results presentation and the company strategy update session will be streamed live at:
https://channel.royalcast.com/webcast/hegnarmedia/20200212_6/
Registration: Please send an email to carine.kyrkjebo@abgsc.no
The board of directors’ report for the fourth quarter and the presentation material for both the fourth quarter 2019 financial results and the company strategy update session are enclosed. EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the attached quarterly report on page 18.
For additional information please contact:
Jacob Tveraabak
CEO, StrongPoint ASA
Phone +47 90 82 13 70
Hilde Horn Gilen
CFO, StrongPoint ASA
Phone +47 920 60 158
About StrongPoint | www.strongpoint.com
StrongPoint is driving productivity for European retailers by providing innovative, integrated technology solutions for multi-channel retailing based on long-standing relationships with customers and partners. StrongPoint offers best-in-class service and consultancy expertise through its team of 530 employees in Norway, Sweden, the Baltics, France, Germany, Belgium, Spain and Russia. StrongPoint is headquartered in Rælingen, Norway, and listed on the Oslo Stock Exchange (ticker: STRONG).
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
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