Tempest Security: A step in the right direction - ABG
Organic sales growth of 13% y-o-y in Q1 Profitability improvement in Security Solutions... ...and there is more to come
ANNONS
Q1: Positive EBITDA again after two challenging quarters
Tempest delivered a promising Q1 report with improved organic sales growth and profitability q-o-q. Sales grew 9% y-o-y, but adjusted for the divestment in Risk Solutions, organic sales growth was 13% y-o-y driven by 16% sales growth in Security Solutions. This was 6% above ABGSCe as sales growth in Security Solutions was stronger than expected. Profitability was also slightly better than anticipated with EBITDA of SEK 1.6m (3.2m); we had SEK 0.3m. The deviation was driven by better profitability in Security Solutions, whereas Risk Solutions was a bit behind our expectations. We argue that progress within Security Solutions is more important long-term since it is the largest business area and has better market conditions.
