STOCKHOLM, Nov. 15, 2019 /PRNewswire/ -- Third quarter of
2019 (July- September 2019)
- Net Turnover of SEK 23.3 million
(SEK 3.8 million)
- Operating Loss/EBIT of SEK -18.7
million (SEK -17 million)
- Result for the period of SEK -20.8
million (SEK -22.9
million)
- Cashflow for the period SEK 23.1
million (SEK 7.1 million)
- Earnings per share amounted to SEK
-0.16 (SEK -0.87)
- Diluted earnings per share amounted to SEK -0.11 (SEK
-0.87)
- The company will not push to deliver 600+ units for 2019
- New long-term financial objectives for the years 2020-2024
- EBITDA margin of >25% by the end of 2024;
- Average Organic Sales growth >50% per year; and
- Operational cashflow positive no later than 2021.
First nine months of 2019 (January - September 2019)
- Net Turnover of SEK 51 million
(SEK 31.5 million)
- Operating Loss/EBIT of SEK -65.3
million (SEK -59.8
million)
- Result for the period of SEK -76.4
million (SEK -77.7
million)
- Cashflow for the period SEK 33.4
million (SEK 34.3
million)
- Earnings per share amounted to SEK
-0.91 (SEK -3.06)
- Diluted earnings per share amounted to SEK -0.54 (SEK
-3.06)
- OXE units sold: 167 (130)
Significant events in the Third quarter
- Enters into a €14 million credit facility agreement with
European Investment Bank ("EIB").
- Appoints Paul Frick as new CFO
effective 9th September
2019.
- Obtains Bondholder approval for a waiver in respect to certain
terms of up to SEK 200 million.
- Obtains shareholder approval following EGM in respect to
issuance of share warrants to EIB for tranche A and B loan
drawdown.
- Issue 13,365,367 warrants to EIB relating to tranche A.
- Receives first tranche of €4 million from EIB.
- Incentive program 2019/2022 outcome - first 5 million share
warrants offered and subscribed fully by certain senior
managers.
- Enters into letter of intent with African governmental supplier
to supply OXE150s/200s with a total expected revenue of €5 million
including accessories, service kits and spare parts.
- Marketing launch of the OXE300 and opening of order books.
Significant events after the reporting period
- Agreed in principle with EIB that second tranche drawdown
condition will include a directed issue.
- Received subscription and guarantee commitments for exercise of
warrants series 2019:1.
- Received approximately SEK 33.6
million through the exercise of warrants and planed for a
directed share issue of approximately SEK
17.2 million.
- The board of directors resolved on a directed share issue of
SEK 17.2 million.
COMMENTS BY THE CEO
In the third quarter the company continued with a positive sales
development. The company achieved a gross profit of SEK 2.77 million and a gross margin of 12% during
the period. This was primarily driven by sales of the OXE200, which
has a higher gross margin as well as unit sales directly to an end
user at a higher margin. Whilst I expect the trend to continue, the
gross margin growth may not be linear.
Following strategic discussions and review, in order to prepare
for the future, the company will continue to have a focused
approach to developing sales in the shorter term and ensure it
maintains delivery of quality to its end users. As a consequence,
the company decided not to push for 600+ units for 2019 but instead
maintain a steady and sustainable ramp-up in close collaboration
with customers and continue to invest into quality and support
to the customers which has given good results in the last few
months. In addition, new updated long term objectives for the
years 2020-2024 will be as follows:
- EBITDA margin of >25% by the end of 2024;
- Average Organic Sales growth >50% per year; and
- Operational cashflow positive no later than 2021.
In July we announced the company entered into a €14 million
credit facility with the European Investment bank ("EIB"), which
over time will help support more aggressive sales and marketing
initiatives, finance development projects, operational expenses and
working capital needs. This is a very significant endorsement by a
well-respected financial institution (backed by EU member states),
who carried out detailed due diligence on the company over a
twelve-month period. We received the first tranche of €4 million
from EIB in mid-September. Further funding has also been secured
following the exercise of share warrants as well as directed share
issue totalling SEK 50.8 million in
October. If we fulfil certain conditions, this will enable us
to draw the second tranche of €4 million from the EIB, most likely
during Q1 2020.
With funding secured, we are fully focused on our operational
performance. As described in our previous interim report, I now
have completed the appointment of my senior management team,
following the appointment of Jerry
Ojala as Chief Operating Officer (COO) at the end of
September. I am highly confident of our senior management team to
deliver the full potential of the OXE.
We continue with an immense focus on quality, which includes
sourcing parts from Tier 1 automotive suppliers, the meticulously
testing of improvements and upgrades by our engineers, assembly
improvements and after sales care with our customers. Ultimately
quality drives sales and with our disruptive technology, being the
only provider of commercial high-powered diesel outboard engines in
the world, it is imperative we work closely with the end users and
better understand their demands and requirements.
We have been very detailed with our planning of the OXE300 - we
officially launched the marketing of this game changing product at
the Genoa boat show in September.
Start of production of the OXE300 is May
2020 and we expect to have built a significant order book
just prior to start of production.
I am confident of meeting our key objectives and delivering
commercial success of our patented belt propulsor system.
Myron Mahendra
CEO - Cimco Marine AB
For further information, please contact:
Myron Mahendra
CEO Cimco Marine AB
+46-763-47-59-82
myron.mahendra@oxe-diesel.com
Anders Berg
Chairman of the Board of Cimco Marine AB
+46-70-358-91-55
anders.berg@oxe-diesel.com
www.oxe-diesel.com
Certified Adviser
FNCA Sweden AB is Certified Adviser for Cimco Marine AB (publ).
Contact details to FNCA Sweden AB: tel. +46 8 528 00 399, e-mail
info@fnca.se.
Cimco Marine AB (publ) is obligated to make this information
public pursuant to the EU Market Abuse Regulation. The information
was provided by the contacts above to be submitted for publication
on November 15th, 2019,
07:30 CET.
Cimco Marine AB (publ) has, after several years of development,
constructed the OXE Diesel, the world's first diesel outboard
engine in the high-power segment. OXE Diesel has a unique belt
driven propulsion system that allows a hydraulic multi-friction
gearbox to be mounted. This means that the engine can handle
significantly higher loads than a traditional outboard engine.
Cimco's OXE diesel has a horizontally mounted engine as opposed to
a traditional outboard with a vertically mounted engine.
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Cimco Marine AB - Q3
2019 INTERIM REPORT
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SOURCE Cimco Marine