Allgon - Solid Q4’20, last day of trading 2 March ‘21
Q4 EBITDA SEK 26m, +4. 7% vs. ABGSCe Last day of trading 2 March 2021 Performance can be tracked through Bure Group Q4 details and 2021 outlook Allgon delivered a solid Q4’20 report today which offered net sales of SEK 129m (including Smarteq which since 31 Dec is under liquidation), +2. 1% vs.
ABGSCe, for a total y-o-y growth of -10. 6%. The gross margin was stronger than expected at 77.
6%, +4. 3pp vs. ABGSCe), as a result of Allgon streamlining operations, resulting in an enhanced product mix.
Operational costs were also lower than estimated, at SEK -89m, 16. 7% below our estimate of SEK -107m. Operational costs saw a positive effect due to furloughs in the Swedish subsidiary’s, and government aid in the foreign subsidiaries of SEK 2m.
FX also contributed with positive other external income of SEK 1. 9m. In the end this yielded an EBITDA of SEK 20m, +3.
3% vs. ABGSCe. Management reports that the core business segment (industrial radio control) saw signs of recovery in Q3’20 from the COVID-19 pandemic, which increased in Q4, and during December of 2020 revenues were in-line with 2019.
Management expects a continued recovery throughout 2021, with demand being fully recovered in Q4’21. Application of delisting accepted by Nasdaq In Q1’21 investment company Bure Group became the principal owner of Allgon, and they have decided to develop Allgon within its own group. Therefore, Allgon’s board of directors resolved on 15 February to apply for a delisting of Allgon’s shares from Nasdaq Stockholm.
The application was accepted by Nasdaq, and the last day of trading in Allgon’s share will be on 2 March 2020. Final thoughts Given the fact that Allgon is due to be delisted, we will cease our coverage of the company. Investors will be able to track the future performance of Allgon as a part of Bure Group.
