Tellusgruppen publishes its quarterly report for Q3 2024

Published: November 13, 2024

  

IR - Regulatory

Tellusgruppen AB (publ.) continued its growth in the third quarter and reported improved EBITDA compared with the same period last year. Revenue for the period increased by 10.8%. Adjusted EBITDA amounted to SEK 12.5 million (8.8) for the period.

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

“Focusing on organic growth in 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 restaurant " Tellusfood " opened at Kungsgatan 22, adjacent to the Thea Linköping Tellusskolan . The restaurant serves as both a dining hall for students and a lunch restaurant for the general public.
  • In early April, Tellusgruppen 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 5.2 MSEK. SEK 1.0 million was paid in cash on the closing date, and SEK 2.6 million was paid through newly issued shares at a price of SEK 6.5 per share, representing 402,477 newly issued shares. The new share issuance results in a dilution of approximately 2.7 percent for Tellusgruppen's existing shareholders.
  • On May 25, Tellusgruppen reached an agreement with the former owners of Språkservice24 to settle a seller’s note of 1.9 MSEK and accrued interest of 0.1 MSEK through a setoff against newly issued shares in Tellusgruppen. A total of 331,286 shares were issued at a price of 6.012 SEK per share. The new share issue represents a dilution of approximately 2.2 percent for Tellusgruppen'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 6 MSEK 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 Tellusgruppen increased from 15,009,710 to 16,004,306, resulting in a dilution of approximately 6.2 percent for shareholders who did not exercise their 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 closing scheduled for January 1, 2025. The business primarily provides staffing services for preschools, schools, and kitchens and currently has annual revenue of approximately 20 MSEK. 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 issuance 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.

You can find the report here

For more information, visit
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 atca@mangold.se.

About Tellusgruppen AB (publ)
Tellusgruppen is a long-term owner of well-managed companies in the education and child care sectors. The Group currently operates 28 preschools and seven elementary schools, and also provides child care and educational services.

Tellusgruppen 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 child care sectors.

Tellusgruppen's Our business concept is to establish, operate, and develop profitable and growing subsidiaries that offer high-quality, innovative, and in-demand services in their respective fields.

This information is information that Tellusgruppen is required to disclose under the EU Market Abuse Regulation. The information was submitted for publication on November 13, 2024, at 8:00 a.m. CET, through the above-mentioned contact persons.