Interim Management Overview for H1 2024/25
The Board of Directors of Rovsing A/S has recently approved the Interim Management Report for the initial half-year of the financial year 2024/25. This report showcases the company's performance, strategic initiatives, and future growth prospects.
Key Highlights of the First Half
The first half of the financial year has proven to be a period of stabilization for Rovsing. Maintaining activity levels consistent with the previous year, 2024/25 did, however, witness a remarkable year-on-year revenue growth of 39%. In alignment with its strategic objectives, the company actively sought new partnerships and expansion opportunities. A significant achievement in this regard was the formation of a strategic cooperation agreement with Marble Imaging AG, set in motion in November 2024. Furthermore, plans are underway to establish subsidiaries in two European countries during the second half of the year, aimed at fuelling greater growth in 2025/26.
Order Backlog and Revenue Insights
As of December 31, 2024, the order backlog stood at an impressive DKK 34.9 million, albeit a decline from DKK 54.5 million recorded in H1 2023/24. During the first half of the current financial year, the order intake witnessed a robust growth, amounting to DKK 12.9 million compared to DKK 4.9 million in the prior year. This positive momentum continued past the closure of H1, reflecting in an increase in backlog to DKK 42.3 million by January 31, 2025. Rovsing's diverse portfolio of contracts spans various missions and clientele across both institutional and commercial sectors.
Financial Performance Metrics
Rovsing reported revenues of DKK 17.3 million in the first half of 2024/25, marking a slight decline of 3.0% from DKK 17.9 million in H1 2023/24. Additionally, EBITDA settled at DKK 0.3 million, a decrease of DKK 0.9 million compared to DKK 1.2 million in the previous year. This reduction has been influenced by one-off factors related to the replanning of significant projects. Notably, delays caused by clients have led to increased material costs due to inflation, and although future projects are expected to offset these impacts, the exact financial implications remain undetermined for the time being.
Revenue Outlook Adjustment
Given these factors, Rovsing has adjusted its revenue outlook for 2024/25 from an anticipated DKK 40.0 to 42.0 million to a new forecast of DKK 37.0 to 40.0 million. Similarly, the EBITDA outlook has been revised from DKK 3.0 to 4.0 million to a range of DKK 1.0 to 2.0 million.
Anticipated Expansion Strategies for 2025/26
Looking ahead, Rovsing remains committed to enhancing its growth trajectory. The strategic cooperation agreement with Marble Imaging AG focuses on developing joint services leveraging Earth observation data, emphasizing environmental and safety applications. This collaboration is expected to offer new revenue streams by 2026.
International Business Expansion
To expand its footprint, Rovsing is actively exploring various establishment configurations within the European Union and the United States. The company is advancing its plans to set up subsidiaries in two EU countries, with an operational launch anticipated in 2025 to unlock additional growth opportunities.
Future Financing Initiatives
To facilitate this transition towards increased growth, Rovsing is considering a directed share issue, potentially up to 20% of its market value, aimed at bolstering sales activities and securing sufficient working capital to enhance production flexibility.
Further Contact Information
For more details, please reach out to Hjalti Pall Thorvardarson, CEO, at Tel. +45 53 39 18 88 or via Email: hpt@rovsing.dk.
Frequently Asked Questions
What is the main focus of Rovsing's strategic partnership with Marble Imaging AG?
The partnership aims to develop joint services utilizing Earth observation data with a special focus on environmental and safety applications.
How has Rovsing's revenue changed in H1 2024/25?
The revenue reported for H1 2024/25 was DKK 17.3 million, representing a 3% decrease from H1 2023/24.
What factors contributed to the adjusted revenue outlook for Rovsing?
Delays in project execution and increased material costs due to inflation influenced the revised revenue outlook.
What future plans does Rovsing have for business expansion?
Rovsing plans to establish subsidiaries in two EU countries and explore opportunities for growth in the USA.
How can interested parties contact Rovsing for more information?
Interested parties can contact CEO Hjalti Pall Thorvardarson at Tel. +45 53 39 18 88 or by email at hpt@rovsing.dk.
