Tellusgruppen AB Releases Quarterly Report for Q3 2023

Published: November 23, 2023

“The ongoing economic crisis, with high inflation, rising interest rates, a weakened currency, and declining demand, reminds us of something we already knew: The education sector may be exposed to political risks, but macroeconomic risks and sensitivity to economic cycles are quite low,” says Bijan Fahimi, CEO of Tellusgruppen. Of course, we too have been affected by rising rents, electricity prices, and higher food prices, but the majority of these cost increases have been offset by rising compensation levels. My hope is that this compensation, with some lag, will improve even further as the threat of inflation subsides and gives the government greater leeway to invest in welfare.

Third quarter of 2023

• Revenue increased by 23.5 percent to SEK 96.6 million (78.3). Organic growth amounted to 18.0 percent, while 5.5 percent was attributable to completed acquisitions.
• Operating profit before depreciation and amortization (EBITDA) amounted to SEK 9.4 million (7.6), with a margin of 9.7 percent (9.7).
• EBITDA, adjusted for changes in accrued vacation pay, amounted to SEK -3.3 million (-3.5).
• Net income for the period amounted to SEK 0.6 million (3.2).
• Net investments amounted to SEK 6.6 million (1.6).
• Cash flow for the period amounted to SEK -1.4 million (SEK -1.3 million), and cash and cash equivalents totaled SEK 0.3 million (SEK 1.8 million) at the end of the period.

Significant events during the period

• On August 1, the Tellus Group took over as the new owner of Språkservice 24 AB. The purchase price for the shares, excluding cash, is SEK 7.7 million. SEK 3.5 million was paid in cash and SEK 2.3 million through newly issued shares at a price of SEK 7.99 per share, representing 289,111 newly issued shares. The new share issue results in a dilution of approximately 2.0 percent for Tellusgruppen’s existing shareholders. Språkservice 24 offers native language instruction and academic tutoring in more than 50 different languages. During the 2022/23 fiscal year, the company reported revenue of SEK 5.9 million and an operating profit of SEK 1.8 million.
• In August, the Tellus Group established the company Intelligent School Solutions in collaboration with Mathias Sundin. The company aims to offer AI-based applications to improve and streamline the work of preschools and schools, in both educational and administrative areas. The Tellus Group holds a 70 percent majority stake in the company, while Mathias Sundin owns 30 percent.
• The Ursviks torg preschool, with 75 spots, opened its doors in September.
• During the third quarter, Tellus School Robinson Vårfru suffered extensive water damage to its school facilities, and operations were forced to move to temporary premises. Additional costs associated with the incident have been covered by insurance claims so far.

You can read the full quarterly report here

A video featuring CEO Bijan Fahimi commenting on the report will be posted on the Tellus Group’s website later today: www.tellusgruppen.noboxdesign.se.

For more information

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

MAR

This information is information that Tellusgruppen AB (publ) is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on November 23, 2023, at 8:30 a.m. CEST.

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.

About Tellusgruppen AB (publ)

The Tellus Group is a long-term owner of well-managed companies in the education and childcare sectors. The Group currently operates 28 preschools and seven elementary schools, and also provides childcare and educational services.

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.

The Tellus Group’s business concept is to establish, operate, and develop profitable and growing subsidiaries that offer high-quality, innovative, and in-demand services within their respective fields.