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Tempest Q4: High sick-leave and overtime hurt margins - SEB

Tempest reported sales of SEK 108m, which was 5% below our expectation, with an adj. EBITDA margin of 2.4%. The quarter was heavily burdened by high sick leave and overtime pay. The way back after the pandemic has been tough, but the company guides for a brighter 2023, with the total turnaround in the second half of 2023. The Security Solutions segment performed well, but its EBITDA margin was a bit weak. We reiterate our mid-point value of SEK 44.

Tempest reported sales of SEK 108m, which was 5% below our expectation, with an adj. EBITDA margin of 2.4%. The quarter was heavily burdened by high sick leave and overtime pay. The way back after the pandemic has been tough, but the company guides for a brighter 2023, with the total turnaround in the second half of 2023. The Security Solutions segment performed well, but its EBITDA margin was a bit weak. We reiterate our mid-point value of SEK 44.
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