The Tellus Group Releases Its Quarterly Report for Q3 2024

On November 12, the Tellus Group announced the acquisition of Vikariepoolen, a strategic move aimed at further diversifying its operations and strengthening profitability.

“Focusing on organic growth across several business areas, combined with acquisitions aimed at diversifying the company, improves our prospects for achieving greater profitability in our operations,” says Bijan Fahimi, CEO of the Tellus Group.
The company’s top priority is to strengthen profitability in existing operations and create room for further strategic acquisitions that can drive increased profitability and further diversification.

“This will also allow us to gradually reduce our debt and strengthen our balance sheet. The goal is to increase profitability through continued growth in order to diversify our business, reduce political and financial risk, and thereby achieve a more stable financial position in the long term,” says Bijan Fahimi, CEO of the Tellus Group.

Third Quarter

• Revenue increased by 10.8 percent to SEK 107.1 million (96.6). Organic growth amounted to 8.6 percent, while 2.2 percent was attributable to completed acquisitions.
• Adjusted EBITDA amounted to SEK 12.5 million (8.8), with a margin of 11.7 percent (9.1).
• Adjusted EBITDA, excluding vacation pay liabilities, amounted to SEK -4.6 million (-3.9).
• Net income for the period amounted to SEK 4.3 million (0.6).
• Net investments amounted to SEK 0.9 million (10.8).
• Cash flow for the period amounted to SEK -7.3 million (-1.4), and cash and cash equivalents totaled SEK 0.5 million (0.3) at the end of the period.
• Earnings per share before dilution amounted to SEK 0.3 (0.0).
• Diluted earnings per share amounted to SEK 0.3 (0.0).

Significant events during the year

• The Väsjön Outdoor Preschool moved into a new, permanent facility with 140 spots in January.
• In January, the Tellusfood restaurant opened at 22 Kungsgatan, adjacent to Tellusskolan Thea in Linköping. The restaurant serves as both a cafeteria for students and a lunch spot for the general public.
• 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, the Tellus Group reached an agreement with the former owners of Språkservice24 to settle a seller’s note of SEK 1.9 million and accrued interest of SEK 0.1 million through a set-off against newly issued shares in the Tellus Group. A total of 331,286 shares were issued at a price of SEK 6.012 per share. The new share issue represents a dilution of approximately 2.2 percent for the Tellus Group’s existing shareholders.
• The company issued Series TO2 warrants to its existing shareholders. During the subscription period in May, Series TO2 warrants were exercised and converted into shares. This resulted in the company raising approximately SEK 6 million before issuance costs. Approximately SEK 3.3 million of this amount was paid through the offset of outstanding loans and guarantee compensation. Following the exercise, the number of shares in the Tellus Group increased from 15,009,710 to 16,004,306, resulting in a dilution of approximately 6.2 percent for shareholders who did not exercise the warrants.

Significant events since the end of the reporting period

• On November 12, Tellusgruppen reached an agreement with NGS Group AB regarding the asset-based acquisition of the staffing business Vikariepoolen, with the transaction closing on January 1, 2025. The business primarily provides staffing services for preschools, schools, and kitchens, and currently generates annual revenue of approximately SEK 20 million. The base purchase price amounts to SEK 3.05 million, of which SEK 0.25 million will be paid in cash and SEK 2.8 million will be paid through newly issued shares at a price of SEK 7.7 per share, representing 362,225 newly issued shares. The new share issue will result in a dilution of approximately 2.2 percent for Tellusgruppen’s existing shareholders. A smaller additional purchase price may also be paid in cash in early 2026. The terms for the additional purchase price are based on the business’s results for the years 2024–2025.