Johan Svantesson » Analyser

Formpipe: Confirmed potential

Q4 revenue of 106.7 mSEK was in line with our expected 106.5 mSEK; EBIT was on the other hand significantly better than our estimate. EBIT margin came in at 14.8%, versus our estimate 8.6%. Profitability was driven by higher license revenues, with first license revenue related to Stockholm city, lower sales and other costs. The strong quarter confirms the potential of future margin improvement.

A strong financial performance and position allows to increase the proposed dividend to 0.3 SEK per share.

Lack of news from Life Science segment in the report signals that it may need more time than expected. We do not expect the Life Science segment to contribute positively to EBITDA before 2018.

Our fair value range remains overall intact with a somewhat higher bear case.

Update - We have corrected our model and the research report due to an error. This will have a minor impact on the fair value range and our base case. Our base case is now 10.5 SEK.

Formpipe: Positive quarter with strong EBIT margin

Formpipe's Q4 report showed sales of 106.7 mSEK, which was in line with our expectations of 106.5 mSEK . The most positive take away form the report is the EBIT margin which came in at 15.8% compared to our estimate 9.1%. This was driven by the first license revenue of 4mSEK related to the agreement with the City of Stockholm, lower activated development costs, lower sales and other costs than we expected. Furthermore, the board proposes a dividend of SEK 0.3 per share.