Divests the assets of Hedén Group

Divests the smallest group company Hedén. Minor effect on estimates, outlook unaffected. Trading at 16-6x P/E, we reiterate our fair value range of SEK 15-25.

Operationally in line, and a BS improvement

Operationally as expected: sales SEK 233m, adj. EBITA margin 8%. SEK 94m tax deferral brings leverage down to 2.1x, BS under control. Mixed operational outlook for group companies largely unchanged.

Tax deferral brings ND under control

Seafire Q3'23 results fast comment

In tough times, take a look at the big picture

Q3e sales SEK 234m, +5% y-o-y (-7% org.), adj. EBITA margin 7.5%. Seafire 2008-2022 pro forma: 8% sales CAGR, 17% EBIT CAGR. Near term more challenging, but significant covenant breach unlikely.

Multiple headwinds and tough comps in Q2

Q2 likely hit particularly hard, due to Nordbutiker/DOFAB seasonality. Near-term macro headwinds, but long-term outlook still good. Trading at '24e P/E of 10x vs. peers at 18x, fair value SEK 20-35.

Temporary costs and consumer weakness

Sales -1% and adj. EBITA -14% vs. ABGSCe. Weakness in DOFAB, Nordbutiker; temporary higher costs in others. Mixed outlook with weak consumer, but stronger industry performance.

Unfortunate quarter, look to H2 for the light

EPS delivery delayed until Q3 due to Linguacom bankruptcy. Expect less of a peak in Q2 as seasonal effects diminish. Trading at 10x '24e P/E vs. peers at 19x, fair value SEK 25-35.

Subsidiary Linguacom files for bankruptcy

Set up for success

Continued strong demand translates into growth and profitability. New financing done: meaningful EPS and FCF ahead. 8x '23e EV/EBITA or 11x '24e P/E, ~35% below peers.

Strong operating result, expected one-offs

35% below peers despite better estimates

One-time refinancing and main market expenses to weigh on Q1. Net margin to improve from 0.7% in '22 to 5.0% in '24e. Trading at 11x '24e P/E vs. peers at 17x, fair value SEK 25-35.

Seafire at ABGSC's Investor Days