StoneBeach Group (SBG) Q4 2024 earnings summary

Executive summary

• Total revenue for Q4 decreased to 1.9 MSEK (2.1), and full-year revenue was 7.1 MSEK (7.4), down 4% year-over-year, mainly due to the wind-down of JS Security Technologies AB and strategic focus on core business.

• EBITDA improved in Q4 to -0.08 MSEK (-0.3) and for the year to -0.2 MSEK (-2.4), reflecting cost optimization efforts.

• Operating loss for Q4 narrowed to -0.4 MSEK (-1.1), but full-year operating loss remained at -5.6 MSEK (-5.6), impacted by a write-down of JS Security Technologies AB to zero.

• Major restructuring included a new board, company name change, and a strategic shift to focus on StoneBeach AB.

• No new share issue is expected in 2025 due to improved cash position and cost reductions.

Financial highlights

• Q4 revenue: 1.9 MSEK (2.1); full-year: 7.1 MSEK (7.4), a 4% decrease year-over-year.

• Q4 EBITDA: -0.08 MSEK (-0.3); full-year EBITDA: -0.2 MSEK (-2.4), a 2.2 MSEK improvement.

• Q4 operating result: -0.4 MSEK (-1.1); full-year: -5.6 MSEK (-5.6).

• Cash and bank at year-end: 1.3 MSEK (1.1), an improvement of 0.2 MSEK in Q4.

• Result per share: -0.01 SEK in Q4 (-0.04); -0.14 SEK for the year (-0.14).

Outlook and guidance

• Management expects to achieve profitability and positive cash flow in the next phase, with a focus on organic growth and new customer acquisition.

• No capital raise is anticipated for 2025 due to strengthened liquidity.

• Strategic plan includes three phases: cost reduction, packaging for growth, and delivering sustainable profitability.