Tellusgruppen AB Releases Its Third-Quarter 2022 Report

Published: November 30, 2022

The third quarter was an eventful period for the Tellus Group. On a macroeconomic level, economic concerns intensified in the form of rising inflation and an economic slowdown. The election campaign ended with a victory for the opposition. At the corporate level, the acquisition of the language company Omniglot was completed.

Third Quarter of 2022

  • Revenue increased by 24.4 percent to SEK 78.3 million (62.9). Organic growth amounted to 10.6 percent, while 13.8 percent was attributable to acquisitions made in the previous year.
  • The average number of enrolled children and students was 2,145 (1,694), an increase of 26.6 percent.
  • Operating profit before depreciation and amortization (EBITDA) amounted to SEK 7.6 million (5.6), with a margin of 9.7 percent (9.0).
  • Net income for the period amounted to SEK 3.2 million (3.5).
  • Net investments amounted to SEK 1.6 million (33.1).
  • Cash flow for the period amounted to SEK -1.3 million (SEK -5.4 million), and cash and cash equivalents totaled SEK 1.8 million (SEK 5.8 million) at the end of the period.

Significant events since the end of the reporting period

  • On October 1, the Tellus Group became the owner of Omniglot AB, a leading provider of mother-tongue education. The preliminary purchase price for the shares, including cash and an adjustment for normalized working capital, amounts to SEK 35.7 million. Of the purchase price, SEK 25.9 million was paid in cash and SEK 9.8 million in the form of newly issued shares in the Tellus Group. The cash portion is financed partly through an external loan and partly through a loan from the Tellus Group’s principal owner. The loans will be repaid over two years at an annual interest rate of 7.3 percent + STIBOR 90. The share price for the newly issued shares was SEK 6.75, and the number of new shares amounted to 1,454,736.
  • Lotta Edholm, a member of the Tellus Group’s board of directors, was appointed Minister of Education in Sweden’s new government and simultaneously stepped down from her position on the board. Lotta Edholm has chosen to forgo her board remuneration for 2022.

CEO's comments

“The guiding principle behind our efforts to improve our results is that sustainable profitability is closely linked to high operational quality. The Tellus Group’s efficiency initiatives mean that we will do more with fewer resources.”

One example is our ongoing efforts to streamline our overhead costs. Over the past year, these costs as a percentage of total revenue have fallen by approximately 10 percent. However, what matters most to our profitability is that our operations are attractive to parents, children, students, and municipalities.

That is why, despite the difficult times, we do not hesitate to invest resources in initiatives that can improve our operations in both the short and long term. It is during difficult times that the wheat is separated from the chaff and market share can be gained. It is during an economic downturn that we lay the foundation for the company’s next phase of development.

Bijan Fahimi
CEO of Tellus Group

Board of Directors
Tellusgruppen AB (publ)

Link to the report

You can download the report here.

For more 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 under the EU Market Abuse Regulation. The information was submitted for publication on November 30, 2022, at 8:30 a.m. CEST.

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 25 preschools and seven elementary schools, and also provides babysitting and homework assistance.

The Tellus Group was founded in 2012 as the parent company of Tellusbarn (Tellusbarn 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 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 their respective fields.

Q3 Report 2022_Published