The Tellus Group Releases Its Quarterly Report for Q1 2024

– There is pressure on profitability due to the continued low birth rate. Nor have the municipalities adjusted reimbursement levels in line with inflation. Our main task will be to increase efficiency without compromising the quality of our operations and to place greater focus on segments that can contribute to profitability with low investment requirements. This includes educational resources and meal services, says Tellus Group CEO Bijan Fahimi.

First Quarter • Revenue increased by 14.6 percent to SEK 121.1 million (105.7). Organic growth amounted to 12.7 percent, while 1.9 percent was attributable to completed acquisitions.
• Adjusted EBITDA amounted to SEK -3.6 million (1.2) with a margin of -5.3 percent (1.8).
• Adjusted EBITDA excluding vacation pay liabilities amounted to SEK 5.7 million (7.6).
• Net income for the period amounted to SEK -13.9 million (-5.1).
• Net investments amounted to SEK 0.4 million (1.4).
• Cash flow for the period amounted to SEK 1.6 million (-0.3), and cash and cash equivalents amounted to SEK 2.7 million (2.1) at the end of the period.
Earnings per share before dilution amounted to SEK -1.0 (-0.4).

Significant events during the period
• The Väsjön Outdoor Preschool moved into permanent, newly built facilities with 140 spots in January.
• In January, the Tellusfood restaurant at Kungsgatan 22 opened adjacent to Tellusskolan Thea Linköping. The restaurant serves as both a cafeteria for students and a lunch restaurant for the general public.
• In February 2024, Tellusgruppen transferred Series TO2 warrants free of charge to the company’s shareholders in proportion to the number of shares held. Holding ten shares on the record date of February 20, 2024, entitled shareholders to one Series TO2 warrant. One Series TO2 warrant entitles the holder to subscribe for one new share in Tellusgruppen at a subscription price corresponding to 80 percent of the volume-weighted average price of Tellusgruppen’s share on the Nasdaq First North Growth Market during the measurement period from April 24, 2024, through May 8, 2024.

Significant events since the end of the reporting period
• In early April, the Tellus Group acquired Matomsorg i Stockholm AB through its subsidiary TF Catering AB. Matomsorg prepares and distributes meals to preschools and schools in the Stockholm area. The debt- and cash-free purchase price amounted to SEK 5.2 million. SEK 1.0 million was paid in cash on the closing date and SEK 2.6 million through newly issued shares at a price of SEK 6.5 per share, representing 402,477 newly issued shares. The new share issue results in a dilution for Tellusgruppen’s existing shareholders of approximately 2.7 percent.
• On May 25, Tellusgruppen reached an agreement with the former owners of Språkservice24 to settle a vendor note of SEK 1.9 million and accrued interest of SEK 0.1 million through a set-off against newly issued shares in Tellusgruppen. A total of 331,286 shares were issued at a price of SEK 6.012 per share. The new share issue results in a dilution of approximately 2.2 percent for the Tellus Group’s existing shareholders.