Awardit AB (publ.) – Full-year report January – December 2023

October – December 2023

• Net revenue increased with 45.1 percent to MSEK 428.1 (295.0), of which -0.7 percent organic.
  
• EBITA result amounted to MSEK 47.2 (31.9) and EBITA margin amounted to 11.0 (10.8) percent.
  
• EBITA per share, before and after dilution, amounted to SEK 5.44 (3.82).
  
• Operating result EBIT amounted to MSEK -101.0 (19.6) and EBIT margin amounted to -23.6 (6.6) percent.
  
• The result for the quarter amounted to MSEK 24.7 (1.0) and earnings per share after tax, before and after dilution amounted to SEK 2.85 (0.12).

January – December 2023

• Net revenue increased with 34.6 percent to MSEK 1,147.4 (852.3), of which 5.1 percent organic.
  
• EBITA result amounted to MSEK 76.2 (85.5) and EBITA margin amounted to 6.6 (10.0) percent.
  
• EBITA per share, before and after dilution, amounted to SEK 8.83 (10.25).
  
• Operating result EBIT amounted to MSEK -104.7 (45.2) and EBIT margin amounted to -9.1 (5.3) percent.
  
• The result for the period amounted to MSEK 5.3 (-0.5) and earnings per share after tax, before and after dilution amounted to SEK 0.62 (-0.06).
  
• The board of directors proposes that SEK 2.30 (2.25) per share be paid in dividends for the financial year 2023.

Significant events during the quarter

• On 26 October, a share transfer agreement was signed between Awardit AB (publ) and the owner of the leading German loyalty company, IPO PrämienServices GmbH ("IPO") through which Awardit has acquired 100 percent of the shares in IPO. The purchase price amounted to SEK 92.4 million (EUR 7.8m), on a debt- and cash-free basis, and will be paid in cash as of the point of accession, on 31 October.
  
• On 7 December, Polaris Private Equity fund V through Fayes Investeringar 1 AB acquired Visionals shareholding of 2,088,272 shares (24.1%) and became the largest owner in Awardit.
  
• In the internal audit it, that was finalized on 18 December, there has been discovered, among other things, incorrect accrual of income and costs between 2022 and 2023, incorrectly handled customer and supplier invoices, payment to a partner that was made outside the company´s books and that parts of the granted covid support were received on incorrect grounds and will likely have to be repaid. The intern audit as initiated due to the poor profitability of MBXP during the first half of the year and shows that a number of serious errors int the company´s accounting for the period 2021-2023 have been committed under the previous management. As a consequence of the internal audit, Awardit has decided to dissolve the previously reserved expected additional purchase price and write down the group´s goodwill attributable to MBXP in its entirety. The board has also decided to write down other intangible fixed assets attributable to technology and customer relations by approximately SEK 20 million (including deferred tax).

Significant events after the end of the reporting period

• On 17 January, an extraordinary general meeting was held where Simon Damkjær Wille was elected as a board member until the next ordinary annual general meeting, and it was decided to adopt instructions for appointment to the nomination committee.
  
• The Danish tax authority began a VAT investigation in MBXP in 2022, where a partial decision was obtained in February. This means an estimated provision of MSEK 6.7 compared to the previous assessment of MSEK 33.3.

In a comment to the fourth quarter of the year CEO Erik Grohman says:

"Awardit continues to grow, both organically and through acquisitions. We deliver solid results in our core business for the last quarter of the year and thus for the year as a whole, and we see good opportunities for further synergies in our acquisitions going forward."

The Full-year report for the period January - December 2023 can also be found on Awardit´s website Investor relations | Awardit