Custos Maritime & Defence Industries (CUST) Q4 2024 earnings summary

Executive summary

• Revenue for Q4 2024 was 519 KSEK, down from 919 KSEK year-over-year due to asset divestments; full-year revenue was 1,320 KSEK versus 6,691 KSEK.

• EBITDA improved to -1,723 KSEK in Q4 2024 from -3,088 KSEK year-over-year, reflecting cost savings and divestments; full-year EBITDA was -10,730 KSEK, up from -14,809 KSEK.

• Net result for Q4 2024 was -3,932 KSEK, a significant improvement from -22,392 KSEK year-over-year, mainly due to goodwill write-downs in the prior year; full-year net result was -15,966 KSEK, up from -58,485 KSEK.

• The company is shifting focus to strong IP rights and game development, highlighted by the acquisition of Raketspel and a partnership for Crazy Frog games.

• The board has decided to change the company name to IP FACTORY to reflect the new strategic direction.

Financial highlights

• Gross margin remained high at 97% in Q4 2024 (99% prior year); full-year gross margin was 99%.

• Total expenses in Q4 2024 were -2,227 KSEK, down from -3,996 KSEK year-over-year.

• Cash flow from operating activities in Q4 2024 was -2,487 KSEK, improved from -4,174 KSEK year-over-year; full-year operating cash flow was -14,337 KSEK.

• Cash and cash equivalents at year-end were 528 KSEK, compared to 863 KSEK the previous year.

• Liabilities exceed assets at group level, resulting in negative equity; short-term liabilities are significantly higher than short-term assets.

Outlook and guidance

• The board is evaluating conditions for continued operations and closely monitoring liquidity.

• Securing additional capital is necessary for continued operations and to complete the Raketspel acquisition; capital raising is expected to complete in Q2 2025.

• Completion of the Raketspel acquisition is expected to restore positive equity at group level.