Good morning everyone, and welcome to the presentation of the fourth quarter results for Spir Group. My name is Per Haakon Lomsdalen, and I am the Chief Executive Officer of Spir Group. I'm very happy to be here together with our new CFO, Cecilie Hekneby, to present our results for the quarter. Spir Group is a software house with leading positions in two attractive markets in Norway and Sweden, with a strong drive for digitalization. Firstly, we deliver mission-critical software for the public sector. This was the backbone of our company when Sikri was founded. Our primary customers within this area are municipalities, government agencies, and other public organizations. Secondly, our business is centered around real estate data and geoinformation. Our primary customers are real estate agencies, homeowners, constructors, engineers, banks, insurance companies, and telcos. These are the two main markets of Spir Group, and markets where we have leading market positions. Over the years, Spir Group has become a house of scalable technological brands, and these are over four brands with over two main markets. Sikri on the left side operates between the public sector in Norway and has a high level of recurring revenue and long-term contracts with minimal churn. Metria is the leading real estate data and geoinformation provider in Sweden. After we acquired Metria last year, we have restructured the whole company by divesting the PSS business and implemented a cost-saving program. The main focus is to develop its core business and increase margins. We are expecting to see this transformation already in the first half of 2024. Ambita is the leading provider of real estate data in Norway with a high and sustained market share. Ambita creates value by moving upwards in the value chain with higher margins. Then we have Boligmappa, the digital platform for property documentation. This is an divestment case for us. With 900,000 unique users, we have significant potential. We are currently exploring new revenue models, which will give us a higher growth rate and better margins moving forward. Let's take a quick moment to look at some of the operational highlights from 2023, as we have taken important steps this year. Firstly, at the very end of the year, we changed the name of our company from Sikri Group to Spir Group. We believe this is an important milestone, as it's now easier to differentiate our brands. The name Spir reflects our aspiration to inspire and take us to the new heights of success. Secondly, we now have a new management team in place. Not only did Cecilie and I join the company recently, but we have established a new strong management team with a good mix of people with long experience from our business and external recruitments aPrognosesenterets well. Thirdly, our continued focus throughout the year has been on reshaping the company. Following the divestment of Prognosesenteret at the end of 2022, we continued to divest non-core business areas in 2023 with the divestment of the planning and surveying area of Metria. Following the divestment, we will be more effective in the remaining core Metria operation. And finally, we will keep focus on building best-in-class software and maintain our talent workforce to become our customer number one trusted advisor. Then, looking at our SaaS business model, we have very attractive metrics. Our recurring and recurring-like revenue are at a very high level, and the ARR increased by 7% compared to Q4 last year, to NOK 398 million. Our scalable business model has also resulted in profitability during this year. Reported EBITDA ended up at NOK 171 million for the full year, up 35% from NOK 127 million in 2022. We have also improved our financial position this year. Net Interest-Bearing Debt is at NOK 651 million at year-end, compared to NOK 756 million at the start of this year. Thus, we have reduced Net Interest-Bearing Debt by NOK 105 million in 2023. This means that we are in a significantly improved financial position compared to a year ago. With that, I would like to leave the floor to Cecilie. Thank you, Per Haakon. It has been a great pleasure to get started at Spir Group, and I'm very excited for what's ahead of us. I'm also pleased to be here today to present the Q4 and half-year 2023 financial results. Let's start the financial section by looking at some highlights from the fourth quarter and full-year 2023 results. Starting with the fourth quarter, revenues increased organically by 3%, reaching NOK 241 million. As Per Haakon mentioned, annual recurring revenues grew by 7% compared to the fourth quarter 2022, reaching NOK 398 million. More than 80% of our revenues are recurring or recurring-like. Our gross margin has increased from 63% in the fourth quarter 2022 to 66% this quarter, following a shift in product mix. EBITDA in the fourth quarter 2023 ended at NOK 34 million, compared to NOK 35 million in the fourth quarter 2022. There were non-recurring costs related to M&A and restructuring of NOK 5 million in the fourth quarter 2023, and non-recurring costs related to listing costs, M&A, and divestment of NOK 8 million in the fourth quarter 2022. Adjusted EBITDA in the fourth quarter this year was NOK 39 million, compared to NOK 43 million in the fourth quarter 2022. Operational expenses were somewhat higher in the quarter, but we are in the process of reshaping the company. Moving on to the full-year number for 2023, I want to highlight that we have improved our financial position during the year. Our revenues grew by 14% in 2023 in a combination of organic growth and growth from the acquisition of Metria in April 2022, surpassing the NOK 1 billion mark. EBITDA also increased significantly, reaching NOK 169 million. There were non-recurring costs of NOK 20 million in 2023 and of NOK 39 million in 2022. Adjusted EBITDA for 2023 was NOK 189 million, up from NOK 166 million in 2022. During the year, we have reduced net interest-bearing debt by NOK 105 million, and at the end of 2023, net interest-bearing debt amounted to NOK 651 million. Our cash position is developing positively, and we are in a satisfactory liquidity position with a cash balance of NOK 55 million as we closed the year. In the fourth quarter, Spir Group improved revenues by 3% organic growth, which all in all is satisfactory in light of the current market conditions affecting several of our segments. In Sikri, growth is driven by higher activity in implementation projects and steady growth in SaaS revenues. Ambita's growth is hampered by a slow real estate market with a significant decline in the number of properties put up for sale in the quarter, as well as a decline in the commencement of new homes. This was, however, offset by increased sales of high-margin products. Boligmappa has steady growth in annual recurring revenue, and new revenue models are under development. Metria has managed to obtain the same revenue as in fourth quarter 2022, despite a challenging real estate market in Sweden. We have an improved product mix across the segments, and gross margin has increased to 66%. Capitalized development costs amounted to NOK 22 million in the quarter, compared to NOK 17 million in the fourth quarter 2022. I've now touched on some of the drivers for the quarter's result, and will now dive into more details in the four key segments of Spir Group. Starting with Sikri, we are pleased that the transformation to cloud solution continues to materialize into higher annual recurring revenues. Annual recurring revenue improved by 12% from the end of 2022 to NOK 198 million at the end of the fourth quarter 2023. Total revenue for the quarter grew by 5%. In Sikri, growth is impacted by the number of RFPs one year earlier. Sikri has stable and high win rates, and we submit offers on almost all public bids where our products or services fit. We are pleased to see that the churn rate remains low, at 1.5% in the quarter. It has been a priority to upgrade our existing customer base from on-prem to cloud solution, resulting in a healthy increase in annual recurring revenue. Sikri has a dedicated team and a cloud-based cost-efficient solution for the clients to leverage automation technology. Sikri offers automation as a service and manages all aspects related to this technology. Two of the biggest wins during the fourth quarter are the Norwegian Correctional Service, Kriminalomsorgen, and the Norwegian Railway Directorate, Jernbanedirektoratet. Since the establishment of Sikri, the number one priority has been to increase our market share by winning a high share of the contracts awarded. As we bid on all relevant contracts, our two-year average win rate of 60% has enabled us to grow our customer base. This has led to a steady growth in annual recurring revenue. It is important to understand that Sikri's SaaS agreements are long-term contracts with public sector clients who appreciate predictable terms and long-term supplier relationships. The software is core in nature and thereby naturally sticky. Sikri contracts run from three to seven years, with options to extend. This means that the order book is quite substantial. Sikri has predictable and stable revenues, and using our unique position, we look forward to identifying new areas to contribute to further digitalization within the public sector. Ambita's fourth quarter was characterized by some headwinds, with revenue decreasing by 5% in the quarter. Ambita's sale of the user-friendly and flexible Infoland, Meglerpakke, is correlated to the number of properties put up for sale. The real estate market in Norway has, in general, been challenging in 2023 and in the fourth quarter in particular. In the quarter, the number of properties put up for sale declined by 12%, leading to slower sales within this area. The growth in Ambita was also hampered by the decline in commencement of new homes. This market has been poor in 2023, with a decline of 40% compared to 2022, negatively impacting parts of Ambita's business. Despite a challenging market, we are pleased that we increased revenue by 2% in 2023 and improved the EBITDA margin, mainly a result of good traction for our new high-margin products. Ambita is a leading provider of digital real estate and construction offerings in Norway, enabling digital transformation and services. Ambita will continue to focus on developing new services, as well as increasing the product footprint and the sales of high-margin products. During 2023, Ambita signed contracts with several major banks and real estate agents in Norway, providing digital services that will increase efficiency within the industry. Moving on to Boligmappa, the main focus is to continue to build great products. Nevertheless, it is great to see growth in new subscriptions. Annual recurring revenue has grown by 11% from the fourth quarter 2022 and is now at NOK 41 million. Revenue has increased by 25% since fourth quarter 2022. Boligmappa will continue to focus on user growth among private users and development of new revenue models. To understand Boligmappa, it must be placed in the context of divestments for future growth. We can already see the effects of our growth initiatives, with a solid increase in monthly active users this year compared to last year. There are now more than 900,000 users of the Boligmappa solution, and there is strong growth in the number of active users, with more than 1,000 documents being uploaded in the solution every hour. Going forward, we are focusing on developing new revenue models, which will be introduced as the platform grows. We expect to see the first effect of this during the first half of 2024. In Metria, the revenue development was flat this quarter. Metria's sale of real estate information is driven by properties sold and mortgages, and around 25% of Metria's revenue is exposed to these drivers. The number of properties sold in Sweden declined by 14% in 2023. This implies that revenue from Metria's other products has developed positively. Annual recurring revenue for Metria is now at SEK 117 million. The adjusted EBITDA margin for the quarter has declined from 23% in the fourth quarter last year to 18% in the fourth quarter this year. The margin decline is mainly due to the reshaping of Metria following the divestment of the planning and surveying business area. In the fourth quarter, Metria signed several renewed contracts within forest management, providing SaaS solutions and geodata to the clients. Metria also renewed an agreement with one of the major energy companies, providing access to deliveries of geodata and additional consulting services. Following the acquisition of Metria in 2022, reshaping the company and improving margins is a focus area. In 2023, we sold the non-core business area of Metria planning and surveying, which led to decreasing margins from the second quarter 2023 due to overhead and other shared costs earlier allocated to planning and surveying. With further cost reduction measures and implementation, we expect to see improved margin going forward. Spir Group's total revenue increased by 3% in the fourth quarter 2023 and by 14% for full-year 2023 in a challenging market. We have focused on cost control and operational improvement. EBITDA for 2023 has improved significantly compared to 2022 due to underlying operational improvements and a high level of non-recurring costs last year. Depreciation and amortization expenses have increased compared to last year due to the increased amortization of intangible assets from acquired businesses, in addition to the fact that we have had an increased level of divestment in Boligmappa and Metria. Financial income and expenses are impacted by our share of profit for 2023 from associated companies where we hold a minority stake. Interest paid on borrowings amounted to NOK 14 million in the fourth quarter 2023 and is at the same level as one year earlier. Net income ends at -NOK 16 million in the fourth quarter 2023 and at -NOK 11 million for the full year, following the higher financial costs in 2023. Net income for the fourth quarter 2022 and full year 2022 are highly impacted by profit from discontinued operation due to the divestment of prognosis centre. As illustrated on the left-hand side of this slide, our free cash flow is impacted by seasonal fluctuations. First quarter is a strong quarter in terms of free cash flow, as Sikri invoices a large part of its customers on a yearly basis in January, and fourth quarter is also a seasonal, stronger quarter in terms of free cash flow. We generated NOK 79 million of operational cash flow in the fourth quarter 2023. The improvement is due to more one-offs in the fourth quarter last year and improved working capital this quarter. Divestment cash flow consists of capitalized development costs, and financial cash flow consists of repayment of borrowing, interest, and lease payment. In the fourth quarter 2023, we draw NOK 30 million of our revolving credit facility. Spir Group's cash balance was NOK 55 million at the end of 2023. Assets consist to a large degree of intangible assets, whereof close to NOK 1.1 billion is goodwill, and the remainder is capitalized development, customer contracts, and trademarks. Equity is close to NOK 1.1 million, leading to an equity ratio of 50%. Net interest-bearing debt is NOK 651 million at the end of 2023. This includes lease liabilities of NOK 44 million. It continues to be a priority for the group to maintain a healthy capital structure, and net interest-bearing debt has been significantly reduced during the year. 61% of interest-bearing debt as of December 2023 is covered by interest rate swaps at favorable terms. We have a solid financial position, and I believe we are in a good position to deliver improved results going forward. Let's have a brief look at the four key highlights from the past year. Our full-year 2023 revenue increased by 14% compared to 2022, driven by organic growth and acquisition of Metria. We have improved gross margin and have continuously focused on cost control. Our operational cash flow is strong, and we are focusing on reducing debt. In sum, this sets us in an improved financial position compared to a year ago. Per Haakon, would you like to summarize with some closing remarks? Thank you, Cecilie. Spir Group is well positioned to deliver on our growth strategy, fostering organic growth, and explore M&A opportunities. As the real estate markets are improving, we anticipate positive outcomes for our portfolio of real estate brands. We are well positioned to capitalize on long-term market opportunities, and we continue to invest in product development to improve margins and leverage synergies. This approach aligns well with the growing demand for secure IT solutions in public administration. Improving margins, maintaining financial stability, and flexibility remains a key priority for Spir Group's overall focus. That concludes our presentation for today. Thank you for following the presentation, and I wish you a pleasant day.
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