Impact Coatings Q2’19: First comment

Net sales showed few surprises as sales estimates were mainly based on the two coatings systems delivered to customers during April. Adjusted for these orders, we expected the value of the order book to be around SEK 22 million with the assumption that no new orders had been added since the last quarterly report. As the order book was EUR 2.1 million at the end of the quarter one can conclude that no new orders have been added since the last quarterly report. Our estimates for Q3’19 and Q4’19 are solely based on the existing orders contained in the order book. However, looking at 2020 our unrevised sale estimates is SEK 65.5 million, figures that will need to be adjusted in the absence of additional orders in the coming quarters. CEO, Torbjörn Sandberg, comments that Impact Coatings today has a strong pipeline of potential customers.

Cost-wise OPEX amounted to SEK -21.6 (-16.2) million and was lower than estimates of SEK -24.9 million. However, the EBIT loss at SEK -4.2 (-13.5) million (estimates: -1.9) was higher than expected due to a negative effect of SEK -5.6 million in ‘Change of work in progress’.

We will return with an updated analysis in the next few days. On a preliminary basis, we will adjust our sales projections for 2020 slightly.