SECITS (SECI) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was SEK 24.6 million, down from SEK 30.9 million year-over-year, mainly due to a smaller B2C sales force, while B2B remained stable and the alarm center saw slight growth.

• EBITDA for Q2 2024 was SEK -2.9 million, a decline from SEK -1.5 million in Q2 2023, reflecting continued negative cash flow and ongoing restructuring.

• The alarm center is nearing EBITDA break-even, driven by a growing customer base and improved profitability with each new contract.

• Secits secured a major order extension with an international retail chain, with deliveries starting in early 2025 and an additional 100+ store expansion planned.

Financial highlights

• Q2 2024 revenue: SEK 24.6 million (Q2 2023: SEK 30.9 million); H1 2024: SEK 55.3 million (H1 2023: SEK 70.2 million).

• Q2 2024 EBITDA: SEK -2.9 million (Q2 2023: SEK -1.5 million); H1 2024: SEK -4.2 million (H1 2023: SEK -0.1 million).

• EPS for Q2 2024: SEK -0.02 (Q2 2023: SEK -0.13).

• Cash flow from operations before working capital changes: SEK -5.1 million in Q2 2024 (Q2 2023: SEK -4.2 million).

• Liquidity remains strained, with cash at SEK 0.7 million as of June 30, 2024.

Outlook and guidance

• The alarm center is expected to reach positive cash flow as the customer base continues to grow.

• Major B2B projects in the banking sector and a significant retail order are set to drive growth, with deliveries for the retail project starting in 2025.

• Ongoing 5G upgrades for private customers are prioritized, aiming for completion by end of 2025.