FINANCIAL RESULTS FIRST QUARTER 2021
- Net sales amounted to SEK 10,205 thousand (5,023)
- Change of work in progress amounted to SEK -5,236 thousand (1,555)
- Total revenue amounted to SEK 5,355 thousand (6,574)
- Operating profit amounted to SEK -11,478 thousand (-5,883)
- Operating profit after financial items amounted to SEK -11,479 thousand (-5,885)
- Cash flow amounted to SEK 122,980 thousand (-4,851)
- Liquidity ratio amounted to 673% (523)
- Order backlog at period end amounted to EUR 1,685 thousand (2,120)
SIGNIFICANT EVENTS FIRST QUARTER 2021
- Coating system order for radomes from HELLA MINTH Jiaxing Automotive Parts Co., Ltd. (China)
- Directed share issue to Swedish and international institutional investors, with proceeds to the company of approximately SEK 120 million before deduction of transaction costs
SIGNIFICANT EVENTS AFTER THE PERIOD
- Coating system order for radomes from HELLA Saturnus Slovenija (Slovenia)
CEO’s COMMENTARY
Impact Coatings is in an exciting period of expansion, during which we are advancing our product offerings, how we approach our markets, and our industrial presence − especially within hydrogen, fuel cells, and automotive safety.
I have in previous reports discussed our focus on sales and internationalization. Last year, we opened new sales offices in Italy and South Korea, and our sales director for the important Chinese market is since the end of 2020 located in China (previously in Sweden). We turn our attention now toward additional markets with significant players in both the hydrogen-related and automotive industries. We are working currently on establishing Impact Coatings in North America, and we see as the next natural step a local presence in Germany.
We are intensifying our activities within the Fuel Cells segment, including of course our joint development with Hyundai, and we are investing in both process improvements and the development of a next generation coating system to meet customers’ future volume needs. The development machine that Hyundai ordered during 2020 is in place at Hyundai’s facilities in South Korea. Delays in customs clearance in combination with shifting quarantine regulations, however, have prevented us from completing the delivery on-site and final delivery is now planned for the second quarter this year.
We see an increased need for cost-effective coating solutions for critical components within automotive safety, where we have a growing group of reference customers. During the first quarter and just after its end, we received two additional orders for coating systems for radar-transparent emblems for automotive radar. Both orders are from companies connected to the German HELLA Group, which is a world-leading supplier to the automotive industry in this segment.
We offer and are developing further a broad range of products and services. Beyond selling coating systems, we can offer machine rental or leasing contracts, as well as service and support agreements. Within Coating Services, we can serve and support our customers all the way from R&D through pre-series production and initial volume production. Thereafter, customers can realize significant cost benefits by investing in a coating system for their own in-house production. Looking ahead, we see the expansion of Coating Services closer to or on customer premises as a logical development.
Coating Services reported its highest ever annual revenue during 2020 and has continued at a good level during this year’s first quarter. Starting with this quarterly report, we will report Coating Services revenue. We should expect that portions of Coating Services sales can at times shift over to system sales when a customer decides to purchase their own coating system, which is entirely in line with our objectives. In connection with the development and potential in the Coating Services offering, I have during the first quarter welcomed Carina Höglund, PhD, to the management team as VP Coating Services. Carina and her team combine deep technical expertise with a focus on customers’ specific requirements and effective process work.
The directed share issue in February, which generated SEK 120 million in proceeds to the company before transaction costs, provides the means to accelerate the expansion we have started. The share issue also demonstrates the confidence that institutional investors, both in Sweden and abroad, have in our coating expertise, our product offerings, and the potential of global megatrends such as hydrogen energy, automotive safety, and sustainable industry. I welcome all our new shareholders and send regards to those of you who have long been with us as owners. Together, we have many exciting years of innovation and growth ahead of us.
Torbjörn Sandberg, CEO
The full report is attached, and can be retrieved on the company's website at www.impactcoatings.com/finansiella-rapporter-arkiv/.