Tellusgruppen AB Releases Its Second-Quarter 2021 Report

Published: August 30, 2021

  

IR - Regulatory

The Tellus Group’s second quarter was characterized by strong organic growth and intensive work on new acquisitions, which resulted in three new acquisitions announced in August. The company’s largest acquisition to date is in the elementary school sector and represents an increase in the school segment of approximately 120 percent. Profitability in the second quarter was better than in the first, although there is still some ground to make up compared to previous years.

Second quarter of 2021

  • Revenue increased by 16.5 percent to SEK 65.8 million (56.5), with growth being entirely organic.
  • The average number of enrolled children and students was 1,645 (1,441), an increase of 14.2 percent.
  • Operating profit before depreciation and amortization (EBITDA) amounted to SEK 1.0 million (6.5). Earnings were weighed down by growth-related costs, with earnings from units in the start-up phase totaling SEK 1.0 million (0.7).
  • Earnings were impacted by SEK 4.1 million (SEK 3.7 million) in changes related to accrued vacation pay, which will largely be recovered during the third quarter.
  • Net income for the period amounted to SEK -0.3 million (4.9).
  • Net investments amounted to SEK 0.7 million (0.6) during the period.
  • Cash flow for the period amounted to 9.3 MSEK (1.6), and cash and cash equivalents totaled
    11.1 MSEK (11.9) at the end of the period.

Significant events during the period

  • The Robinson preschool opened in Enköping in early January 2021. The preschool is licensed to serve 150 children. After six months of operation, 55 percent of the spots were filled.
  • In April, the Växthuset preschool moved from temporary facilities to new permanent facilities, increasing its capacity from 60 to 96 spots.
  • On April 26, 2021, Tellusgruppen AB (publ) received approval for listing on the Nasdaq First North Growth Market, and trading in the company’s shares began on April 28. 2,500,000 shares and 2,500,000 warrants were issued, raising SEK 20 million in cash proceeds for the company prior to issuance costs. The number of shares thus increased from 10,032,100 to 12,532,100, and the share capital from SEK 500,000 to SEK 624,600. If all warrants are exercised to subscribe for shares, an additional 2,500,000 new shares will be issued in May 2022 at a subscription price of 10.40 SEK per share.

Significant events since the end of the reporting period

  • On August 10, Tellusbarn completed an asset acquisition of Ryttis, a parent-run cooperative in northwestern Stockholm that was facing closure. Following the acquisition, the preschool has 49 enrollment spots.
  • Tellusbarn On August 11, an agreement was reached to take over the “
    ” preschool “Lilla blå elefanten,” a small operation run as a staff cooperative in Enskede. The deal means that “Lilla blå elefanten” will be integrated with two of Tellusbarn’s existing preschools, and that three small units with a total of approximately 60 spots can be developed into a larger unit. Tellusbarn will take over operations on
    September 1.
  • Tellusskolan On August 23, it acquired Theducation AB and has entered into an agreement to take over as the new owner effective September 1. Theducation operates two schools—one in Linköping and one in Bromma—with a total of approximately 500 students.

CEO's comments

“During the second quarter of 2021, Tellusgruppen laid the groundwork for three acquisitions that were announced in August. One of the acquisitions, Thea Private Elementary School, is our largest deal to date. With approximately
57 MSEK in revenue, the acquisition will give us a strong opportunity to exceed our growth target of thirty percent in both 2021 and 2022, and the elementary school business area will more than double in terms of student enrollment and revenue. Tellusskolan will also gain a larger platform for growth with two strong brands in Thea and Robinson.

The other acquisitions made in August consist of two small cooperative preschool operations, which means we are expanding our expertise, as this is the first time the Tellus Group has made acquisitions from the nonprofit sector.

“However, our strong focus on acquisitions during this period has not prevented us from taking steps to further increase our growth rate. But now we can shift our focus more toward our second goal: achieving an annual profit margin of 7 percent.”

Bijan Fahimi,
, CEO Tellusgruppen


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.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 August 30, 2021, at 8:30 a.m. CEST.