Strongpoint ASA
OSE:STRO
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Strongpoint ASA
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StrongPoint is a retail technology company. What does that mean? Well, in StrongPoint's case, it means 2 things. On the one hand side, we provide in-store productivity solutions such as Self-Checkout solutions, electronic shelf labels, cash management systems and more; and on the other hand side, we provide online solutions for the logistics and back-end operations.So why is it great to be StrongPoint today? Well, StrongPoint is benefiting tremendously from the growth in e-commerce on the one hand side because we have retailers that wants to move into e-commerce and need the support and expertise from a company like StrongPoint, and on the other hand side also because revenues in the stores are being set under pressure from the growth in e-commerce, meaning we need to improve the operations in the stores. So that is what I call the double opportunity for a company like StrongPoint. As for the financials, I'm very pleased to announce that the second quarter 2019 figures are seeing a tremendous growth in underlying revenue. I'm saying underlying because in Q2 2018 we had the NOK 36 million effect, one-off, from the Alimerka deal. And what is even more pleasing is to see that the growth comes from all the key regions in the retail technology space as well as across all the products that we have. So that's very satisfying. When it comes to the EBITDA, I'm also very pleased to announce that we are seeing a strong double-digit million kronor increase. I'm saying underlying again because the Alimerka deal had a NOK 21 million impact in Q2 2018. But underlying, it's very strong and it's stemming from 4 sources. Number one is the retail technology bit, both home, but also in Spain for the cash management sales. Number two is the improvement in guarantees, meaning that the warranties on the Cash Security side has come down tremendously. Thirdly is the earlier announced NOK 30 million cost reduction program that's continuing to impact this quarter. And lastly is the IFRS impact of just south of NOK 6 million. And the EBITDA improvement comes despite the investments that we're doing both in e-commerce on E20 and also the investments we're doing in Spain. And on top of the whole thing, we have some restructuring costs from converting the Belgium and France offices into partner offices that are included in this quarter.So all in all, very, very pleased with the underlying performance for Q2 2019. So going forward, well, we will be continuing to work on the 3 things we've said we will be focusing on, meaning: number one, continue to grow the relevance and maintain the relationships we have with the retailers in our home markets. In that respect, I'm very pleased that we have Reflexis as part of our product portfolio in the Nordics and the Baltics. And number two is Spain. We will be continuing to grow in Spain, and we're doing so now very rapidly with the RoadRunner concept along with the Easy Access rental concept. And number three, we're also committed to grow our e-commerce business.We have, in Q2, announced both the partnership with Optical Phusion, OPI, in the U.S. as well as seeing Click & Collect locker pilots being started in Sweden with Coop as well as having 2 upcoming pilots in Spain. So overall, we have lots of activities going on in the areas which we said we will focus on. So how do we get there? Well, firstly, we will be continuing to pursue the organic development of StrongPoint. We need to continue developing the business that we have today. And secondly, we will also be stepping up the M&A activity in StrongPoint.So with that, I'd like to wish you all a very pleasant summer.