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Regulatory press release

Seafire year-end report 2023: Weak margin, but strong cash flow towards the year-end

Seafire
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Revenue increased by 8% to SEK 227 million (210), while operating profit, adjusted EBITA, amounted to SEK 3 million (9) in Q4. A disappointing end to the year, primarily as a result of negative organic growth and high operating costs.

Unless stated otherwise, the figures in this report concern continuing operations.

Q4 2023

  • Net sales amounted to SEK 227 million (210). Growth amounted to 8%, of which organic growth for comparable entities amounted to -8% compared with the same period in 2022
  • Operating profit/loss (EBIT) amounted to SEK -20 million (16), negatively impacted by impairment losses on goodwill of SEK -29 million (0)
  • EBITA amounted to SEK 17 million (22), corresponding to a margin of 7% (10)
  • Adjusted EBITA amounted to SEK 3 million (9), corresponding to a margin of 1% (4)
  • Earnings per share before and after dilution amounted to SEK -0.65 (-0.10)*

The period January – December 2023

  • Net sales amounted to SEK 1,000 million (851). Growth was 18%, of which organic growth for comparable entities amounted to -5% compared with the same period in 2022
  • Operating profit (EBIT) amounted to SEK 13 million (81), negatively impacted by impairment losses on goodwill of SEK -41 million (0)
  • EBITA amounted to SEK 81 million (101), corresponding to a margin of 8% (12)
  • Adjusted EBITA amounted to SEK 72 million (80), corresponding to a margin of 7% (9)
  • Earnings per share before and after dilution amounted to SEK -1.72 (0.49/0.47)*
  • The Board of Directors proposes that no dividend be distributed for 2023

Significant events in the reporting period

  • On November 1st, 2023, the assets in the subsidiary Hedén Group were divested
  • On December 7th, 2023, Seafire announced that the Board of Directors had resolved to dismiss CEO Johan Bennarsten from his position and, on December 20th, Seafire announced that he had been relieved of his duties with effect from December 31st, 2023 and that Jacob Persson, the company's CFO, had been appointed acting CEO. Severance costs for the CEO were charged to the profit during Q4
  • As a result of disappointing profitability, challenging market conditions and a change in the interest rate situation in the subsidiaries Nordbutiker and Kenpo Sandwich, Seafire recognized impairment losses on goodwill of SEK 29 million during Q4

*) Key ratios inclusive of divested business

The interim report is available on Seafire’s website (https://www.seafireab.com/en/financial-information).

For more information, please contact

Jacob Persson, CFO and acting CEO, 0708-64 07 52, jacob.persson@seafireab.com

About Seafire

Seafire is a company group consisting of the business segments Industrial components and Products, which acquires and develops companies in Sweden. The group was founded in 2016 and focuses on acquiring profitable companies with development potential. Seafire consists of 13 companies with total sales of more than 1 billion SEK. For more information, please visit www.seafireab.com/en.

This information is information that Seafire is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-02-23 08:00 CET.

Attachments

Seafire Year End Report 2023

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