Second Quarter Report 2024

SERSTECH GROUP, 1 APRIL – 30 JUNE 2024

• Net sales amounted to KSEK 21 369 (32 775).
• EBITDA amounted to KSEK 5 595 (16 064), corresponding to an EBITDA margin of 26%.
• EBIT amounted to KSEK 3 715 (13 084), corresponding to an EBIT margin of 17%.
• Cash flow from operating activities amounted to KSEK -1 112 (-8 191).
• Earnings per share amounted to SEK 0.02 (0.06).
• Earnings per average number of shares amounted to SEK SEK 0.02 (0.06).

SERSTECH GROUP, 1 JANUARY – 30 JUNE 2024                  

• Net sales amounted to KSEK 35 543 (45 111).
• EBITDA amounted to KSEK 6 963 (17 371), corresponding to an EBITDA margin of 20%.
• EBIT amounted to KSEK 3 194 (11 444), corresponding to an EBIT margin of 9%.
• Cash flow from operating activities amounted to KSEK 515 (-9 762).
• Earnings per share amounted to SEK 0.01 (0.05).
• Earnings per average number of shares amounted to SEK 0.01 (0.08).

Message From The CEO

Revenue amounted to approximately 36 MSEK for the first six months of 2024, with profitability in both the second quarter and the first six months of 2024. Two significant differences in 2024 compared to 2023 are that the sales are coming from more customers and countries than before and that several are repetitive orders.

We have two significant orders in Q2 2024 – one from our partner Proengin Inc and one from the US military. The US military order is the smaller of the two, but potentially with higher importance. The US military will evaluate the newly launched Serstech Arx mkII and its unique capabilities, such as communication over military networks and identification of biotoxins. The potential with the US military could be large over the coming years, and the feedback as of now is positive. The Serstech Arx mkII was launched in May 2024 and the first deliveries were made the following month. Production is still in its ramp-up phase and when the quarter closed, we had a backlog of orders to be delivered over the summer. By August, we expect the current backlog to have been delivered and that the production capacity will be able to fully meet the demand.

We have been working on securing deliveries of components for some time and will accelerate the efforts further. We do not experience any component shortage at the moment, but we see a risk of shortage being created by ongoing and potential conflicts in Europe and Asia. We have therefore also started to build an inventory of components and will continue to source larger volumes than we would otherwise need. Given the industry we are in, we expect a further increase in demand if the geopolitical uncertainty increases. At the same time, we would expect component shortage to limit our production capacity in such a case, and we therefore are increasing our inventory of components, despite our somewhat limited cash balance.

In April, we filled our last open vacancy in the team, and for the first time in quite a while, we do not have any vacancies at all. We recreated the team in 2022 and 2023 after the pandemic team size reduction, and we now expect to be able to maintain a fairly constant fixed cost level as we continue to solidify and grow the business. The fixed cost increase in 2024 will solely be from the effects of new team members joining in the middle of the year in 2023.

We continue to see a strong demand in the market from our main segments and we do not see any indications that the positive demand trend should shift downwards the coming years. As mentioned repeatedly, we do however expect large variations from quarter to quarter, due to the nature of our tender-driven business. We remain optimistic about the coming years and are confident in our long-term growth targets.

Stefan Sandor, CEO

July 2024

For further information, please contact:

Stefan Sandor,

CEO, Serstech AB Phone:

Email: 

or

Thomas Pileby,

Chairman of the Board, Serstech AB Phone:

Email:

or visit:

This is information that Serstech AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above at 08:45 CET on July 16, 2024.

Certified advisor to Serstech is Svensk Kapitalmarknadsgranskning AB (SKMG).

About Serstech

Serstech delivers solutions for chemical identification and has customers around the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organizations and first responders. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech’s solution. Serstech’s head office is in Sweden and all production is done in Sweden.

Serstech is traded at Nasdaq First North Growth Market and more information about the company can be found at

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