Q1 2025 Strongpoint ASA Earnings Call Transcript
Key Points
- StrongPoint ASA (LTS:0JEZ) reported a 17% growth in rolling 12 months recurring revenue, driven by increased license revenue from proprietary and third-party solutions.
- EBITDA improved by NOK 16 million to NOK 10 million, indicating a positive trend in profitability.
- The company achieved a breakthrough with its AutoStore solution in the UK, marking a significant expansion into new markets.
- StrongPoint ASA (LTS:0JEZ) initiated proof of concepts for AI solutions to reduce theft in self-checkouts, showcasing innovation in addressing retail challenges.
- The company maintained a stable equity ratio of 46%, well above the covenant requirement of 30%, indicating financial stability.
- Revenue declined by 3% to NOK 347 million, primarily due to the previous year's electronic shelf label rollout in Norway.
- The rollout of the order picking solution for Sainsbury's is delayed, potentially impacting the timeline for revenue realization.
- Despite improvements, the EBITDA margin of 2.9% is still below the company's aspirations.
- Net interest-bearing debt increased by NOK 12 million, driven by development CapEx and leasing payments.
- Disposable funds decreased from NOK 102 million to NOK 85 million, reflecting a reduction in available cash resources.
Good morning and welcome to this Q1 presentation by Strongpoint. My name is Jacob Tveraabak, I'm joined by Marius Drefvelin, our CFO. I will take you through the Q1 results. I'll start off with the highlights in this quarter.
We had a flat revenue development of minus 3% to NOK347 million. The decline is explained by last year's rollout of electronic shelf labels tag replacement that we did in Norway. Beyond that, the quality of our revenue increased.
We're seeing a 17% growth in rolling 12 months recurring revenue. This stems from the growth of license revenue, license fees that we get from our own solutions, own proprietary solutions, and third-party solutions. The growth this quarter was explained by Sainsbury's order picking solution that we get rolling out by increased self-checkout solutions into the Baltics and by other third-party solutions.
EBITDA for the quarter improved by NOK16 million Krone to plus NOK10 million Krone this quarter. That gives us an EBITDA margin of 2.9%. Improved, yet not at the levels
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