Hi, I'm Jerker Salokivi from Evli's Equity Research Team, and I'm joined today by the CEO of Innofactor, Mr. Sami Ensio. Hi, Sami. Hi, hi. Welcome. You released your Q2 report today. Yes. Could you start by walking us through the results? Oh, sure. Okay, was not very good quarter. Let's start from that, and sorry about that. Market situation is quite challenging at the moment in the Nordics. Our revenue was EUR 19.9 million, and it went down about 1%, so we want to be a growing company, so in that sense, it was not what we want to have. So, that's one point, and especially profitability was very low. EBITDA, official EBITDA was EUR 0.6 million, what is about 3%, and it was -65% from last year. But same time, everybody should understand that there is one one-time cost, EUR 750 thousand, from one arbitration process, the cost from that. So, without that special cost, our EBITDA would have been EUR 1.4 million, 7% level, what is not good either, and would have been 23% less than a year ago. So basically, both growth and profitability were bad, let's say it in that way. Only maybe the good thing, if we see numbers, is that we increased our order backlog 2.2% from last quarter, not from last year, but last quarter, and it was EUR 70.4 million at end of quarter two. So we succeed quite well in sales, and that, that's the positive thing. It is not easy to sell at the moment in this market situation. Yeah. Now you mentioned the arbitration proceedings. That relates to some quite old activities. Yes. Could you maybe just give us a recap of the history, and then, is there anything still to expect from this process? Yeah. It comes from that acquisition, Lumagate acquisition, what we did already in 2016, and we had an option to buy another company, Ironstone, based on that contract, and seller of Lumagate, that company decided to sell those Ironstone stocks, even if we had that option. Then we started arbitration process in Sweden quite many years ago already. We won the first case, and in the result of that, we got EUR 2.3 million or euros or even more, and currently with interest rates, almost EUR 3 million or something like that, and that was won in that case. But unfortunately, that seller of the Lumagate didn't have that money, and it was bankruptcy for that company. Then we had another trial, other arbitration, that we tried to get that money from one law office because it was actually that law office fault, at least in our opinion, because of that, they did a very, very bad mistake, and because of that, that company sold those stocks in that point, and unfortunately, we lost that case. The damages for us from that are this 750,000 EUR from this second arbitration process. Yeah. Now if we look at maybe like Q2 and H1, the, should we say, biggest culprit in terms of revenue decline on a group level, it appears to have been in Denmark, where looking at the share of revenue, it's come down from maybe 5% in last H1 to closer to 1% now. Could you just tell us what's been going on there? How has the revenue shrunk so much? We have had maybe, in some level, quite bad luck there. We had one director in Denmark who decided to leave and also take some customers and some of our employees with him. It's more common in Denmark than it is, for example, in Finland. This kind of things does not happen basically in Finland, at least not too often. So, that, that's one thing. Then we had bad luck with one customer, not be anything what we did, but the customer had some challenges in finance and something like that, and they scaled down the thing what we were doing, and so on. So we have had a bad luck there, let's say, in that way. But of course, we could have done something better. But anyway, mostly it's based on some things what has happened, some, o kay, bad luck, I would say. Yeah. Maybe now finally, looking a bit at the remainder of the year, you have kept your guidance intact, firstly, expecting the revenue and EBITDA to grow from last year. Now, looking at revenue, you're still kind of on the curve, while EBITDA was a bit weaker now due to the legal expenses. So what kind of looking just at the Denmark will probably weigh down H2 as well. You said I recall you talking about the market, maybe you're hoping to see some light during H2. Could you just maybe give us some flavor on the H2 and how to reach the guidance? Well, we succeed decent way, at least in sales, I mean, selling things in first, second quarter. So our order backlog is a little bit better than what it was when we started quarter two now, so that probably will help the market. At least it does not go worse direction, I would say, but how much it will would be better quarter three, what it was in quarter two, hard to say. But let's hope at least that it goes to better direction. That could help. But the key thing, what we, of course, have done is that we did those actions, corrective actions, for example, in Sweden, and it should help in second half, especially in profitability area. We kept our market guidance same. Of course, it won't be easy to achieve, I understand it, but we see that it should be possible to do. Yeah. Sami, it was a pleasure talking to you, despite maybe a weaker Q2 here in nearly sunny Helsinki. Yes, I mean, cloudy at least. Yeah. Thank you very much, Sami. Ah, thank you. Thanks a lot. And, everybody, please have a nice summer and vacations, and let's come back to business after that. Yeah. Thank you. Thanks, bye.
Loading workspace