Tellusgruppen AB Releases Its Third-Quarter 2021 Report

Published: November 30, 2021

A summary of the third quarter of the year shows that the Tellus Group’s operations maintain a high standard of quality across all business areas. For the second year in a row, growth is in line with the set targets, and the company is also growing particularly rapidly in the areas of elementary school education and childcare. However, the company is experiencing a decline in profitability, and intensive efforts to improve this in the long term are continuing.

Third Quarter of 2021

  • Revenue increased by 31.0 percent to SEK 62.9 million (48.0). Organic growth amounted to 21.4 percent, while 9.6 percent was attributable to acquisitions made during the period.
  • The average number of enrolled children and students was 1,694 (1,333), an increase of 27.0 percent. The number of school places increased by 36.2 percent and stood at 2,645 at the end of the period.
  • Operating profit before depreciation and amortization (EBITDA) amounted to SEK 5.6 million (7.2), with a margin of 9.0 percent (14.9).
  • Net income for the period amounted to SEK 3.5 million (5.9).
  • Net investments amounted to SEK 33.1 million (-3.6). Investments for the period were primarily attributable to the acquisition of Theducation AB.
  • Cash flow for the period amounted to SEK -5.4 million (-1.9), and cash and cash equivalents totaled SEK 5.8 million (10.4) at the end of the period.

Significant events during the period

  • During the period, two small asset acquisitions were made from parent and staff cooperatives. These acquisitions will add 65 new preschool spots.
  • On August 24, Tellusskolan reached an agreement to acquire 93.6 percent of the shares in Theducation AB and took over as the new majority owner on September 1. Theducation operates two middle schools: one in Linköping and one in Bromma, with a total of approximately 470 students.
  • Tellusskolan received three new school licenses. Two elementary schools will open as early as the fall semester of 2022 and will be integrated with the Tellus Group’s existing preschools in Österåker and Upplands-Bro. The third school license is for Enköping, where longer-term discussions are underway regarding a potential K-5 school.

Significant events since the end of the reporting period

  • On November 17, Tellusskolan acquired an additional 6,700 shares in Theducation AB and now owns 98.6 percent of the shares.

CEO’s Comments
“The Tellus Group has three overarching goals: high operational quality, a high growth rate, and sustainable profitability. During the period, the growth target has focused in part on our smaller and more recently established business areas, namely elementary school and childcare.”

Looking back at the first three quarters of the year, we can conclude that we have achieved most of these goals by a comfortable margin. The area where we are falling short is profitability. Our operations maintain a high standard of quality across all business areas. For the second year in a row, our growth is in line with our ambitious targets, and we are also growing particularly rapidly in elementary school and childcare. However, we are not satisfied with the decline in profitability.

Our exceptionally strong growth is one of our greatest achievements. We have achieved this growth through both acquisitions and the establishment of new operations. The integration of our new businesses has gone smoothly so far. We have every reason to be optimistic that this trend will continue into next year.

“Efforts to improve the Tellus Group’s long-term profitability are continuing. A strong focus is being placed on integrating, streamlining, and upgrading the support functions of all schools and preschools.”

Bijan Fahimi
CEO of Tellus Group

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 November 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 25 preschools and six 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.

Q3 Report Published