Arribatec Group (ARR) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 revenue of NOK 151 million, up 5.3% year-over-year, with sales up 33% YoY and strong performance in Business Services and Cloud.

• Adjusted EBITDA was NOK 2.1 million, up from NOK 1.8 million a year ago; reported EBITDA negative due to NOK 13.8 million in one-off non-cash items and NOK 10.1 million restructuring costs.

• Raised NOK 41 million in gross proceeds from a share/rights issue, resulting in a positive net cash position.

• Implemented a cost efficiency program, reducing headcount by 25 FTEs and downsizing the corporate head office by 70%.

• Advanced negotiations to divest Marine and Hospitality segments.

Financial highlights

• Recurring revenue reached NOK 64.3 million in Q4, up 17% year-over-year, now 44% of total revenue.

• Q4 sales up 33% year-over-year, with 610 contracts signed totaling NOK 285 million.

• Net cash from operations in Q4 was NOK 15.7 million, driven by working capital improvements.

• Ended Q4 with NOK 23.1 million in cash and cash equivalents, of which NOK 11.7 million is restricted.

• Total assets at year-end NOK 442 million, down from NOK 501 million the previous year.

Outlook and guidance

• Cost reduction and efficiency initiatives expected to lift margins and cash flow in 2025, with savings from Q4 restructuring taking effect from Q2.

• Anticipates continued growth in Cloud and managed IT services, with strong demand for EA & BPM solutions and digital transformation projects.

• Multi-partnership strategy showing early success, including first Orbus and SAP contracts.