OPUS

Opus Group

Market Cap 1,649.0M

Opus was founded in the early 90's in Gothenburg where their head office is still situated. During the first years the strategy was to provide AB Svensk Bilprovning with equipment for emission testing as the catalytic converters were introduced in the market. Step by step Opus extended its offering and costumer base and grew internationally. The big change, from an equipment supplier to a service provider, came in 2008 when Opus aquired Systech, a US based vehicle testing company. Since then revenues from vehicle inspection programs has grown substantially, more than 25 percent annually during 2008-16, excluding the acquisitions of Envirotest and the Swedish operations. These programs make upp for approximately 90 percent of revenues whereas the remaining 10 percent comes from equipment sales. Starting in 2018 Opus will report two divisions: Vehicle Inspection and Intelligent Vehicle Suport. The latter is a newly formed division assisting vehicle technicians with model-specific vehicle systems data.  Opus currently operates a number of vehicle inspection programs in North and South America, Sweden and Pakistan. Sweden is an open market, but in reality it is an oligopoly since the barriers of entry are rather high. In the other markets the authorities give exclusive rights to run testing programs, usually for a period of 8-10 years. In both cases revenues are stable and EBITDA-margins around 20 percent. The company has around 2 000 employees at their facilites in North- and South America, Sweden, UK and Pakistan. The shares are listed on Nasdaq Stockholms Main market. 

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