Correction: Tellusgruppen AB releases its report for the second quarter of 2021

Published: August 30, 2021

Second quarter of 2021

• Revenue increased by 16.5 percent to SEK 65.8 million (56.5), with growth being entirely organic.
• The average number of enrolled children and students was 1,645 (1,441), an increase of 14.2 percent.
• Operating profit before depreciation and amortization (EBITDA) amounted to SEK 1.0 million (6.5). Earnings were weighed down by growth-related costs, with earnings from units in the start-up phase totaling SEK 1.0 million (0.7).
• Earnings were impacted by SEK 4.1 million (SEK 3.7 million) in changes related to accrued vacation pay, which will largely be recovered during the third quarter.
• Net income for the period amounted to SEK -0.3 million (4.9).
• Net investments amounted to SEK 0.7 million (0.6) during the period.
• Cash flow for the period amounted to SEK 9.3 million (1.6), and cash and cash equivalents totaled SEK
  11.1 million (11.9) at the end of the period.

Significant events during the period

• The Robinson preschool opened in Enköping in early January 2021. The preschool is licensed to serve 150 children. After six months of operation, 55 percent of the spots were filled.
• In April, the Växthuset preschool moved from temporary facilities to new permanent facilities, increasing its capacity from 60 to 96 spots.
• On April 26, 2021, Tellusgruppen AB (publ) received approval for listing on the Nasdaq First North Growth Market, and trading in the company’s shares began on April 28. 2,500,000 shares and 2,500,000 warrants were issued, raising SEK 20 million in cash proceeds for the company prior to issuance costs. The number of shares thus increased from 10,032,100 to 12,532,100, and the share capital from SEK 500,000 to SEK 624,600. If all warrants are exercised to subscribe for shares, an additional 2,500,000 new shares will be issued in May 2022 at a subscription price of SEK 10.40 per share.

Significant events since the end of the reporting period

• On August 10, Tellusbarn completed an asset acquisition of Ryttis, a parent-run cooperative in northwestern Stockholm that was facing closure. Following the takeover, the preschool has 49 spots available.
• On August 11, Tellusbarn reached an agreement to take over the preschool "
  " "Lilla blå elefanten," a small operation run as a staff cooperative in Enskede. The deal means that Lilla blå elefanten will be integrated with two of Tellusbarn’s existing preschools, and that three small units with a total of approximately 60 spots can be developed into a larger unit. Tellusbarn will take over the operation on
  September 1.
• On August 23, Tellusskolan acquired Theducation AB and has agreed to take over as the new owner effective September 1. Theducation operates two schools: one in Linköping and one in Bromma, with a total of approximately 500 students.

CEO's comments

“During the second quarter of 2021, the Tellus Group laid the groundwork for three acquisitions that were announced in August. One of the acquisitions, Thea Private Elementary School, is our largest deal to date. With approximately
57 million SEK in revenue, the acquisition will give us a strong opportunity to exceed our growth target of thirty percent in both 2021 and 2022, and the elementary school business area will more than double in terms of student enrollment and revenue. Tellus School will also gain a larger development platform with two strong brands in Thea and Robinson.

The other acquisitions made in August consist of two small cooperative preschool operations, which means we are expanding our expertise, as this is the first time the Tellus Group has made acquisitions from the nonprofit sector.

“However, our strong focus on acquisitions during this period has not prevented us from taking steps to further increase our growth rate. But now we can shift our focus more toward our second goal: achieving an annual profit margin of 7 percent.”

Bijan Fahimi
CEO of Tellus Group

The Board of Directors

Tellusgruppen AB (publ)

Link to the report
You can download the report here.  

For further information
Bijan Fahimi, CEO of Tellusgruppen AB
bijan.fahimi@tellusgruppen.noboxdesign.se
+46 707 167 453

Certified Adviser
The Company’s Certified Adviser is Mangold Fondkommission AB, which can be reached by phone at
08-503 015 50 and by email at ca@mangold.se.

MAR
This information is information that Tellusgruppen AB (publ) is required to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication on August 30, 2021, at 8:30 a.m. CEST.

About Tellusgruppen AB (publ)
Tellusgruppen is a long-term owner of well-managed companies in the education and childcare sectors. The Group currently operates 23 preschools and four elementary schools, and also provides babysitting and homework assistance.

The Tellus Group was founded in 2012 as the parent company of Tellusbarn (which was founded in 2007) and as a platform for future expansion in the education and childcare sector.

Tellus Group’s business concept is to establish, operate, and develop profitable and growing subsidiaries in the childcare and education sectors. The company will serve as the parent company of a group that offers and delivers high-quality, innovative, and in-demand services within its respective fields.