Trondheim, 13 August 2021: NORBIT reports revenues for the second quarter of 2021 of NOK 190 million and an EBITDA of NOK 50.5 million, its best financial quarter in history. For the first half of 2021, the company had revenues of NOK 338.7 million, compared to NOK 306.7 million for the same period of 2020.
NORBIT is providing an update on its ambitions and long-term financial targets. According to the updated plan, the company’s ambition is to deliver organic revenues in excess of NOK 1.5 billion and an EBITDA margin above 25 per cent in 2024. In addition, NORBIT is continuing to pursue value-accretive acquisitions to accelerate growth further.
Segment Oceans revenues grew by 73 per cent year over year to a record high NOK 101.5 million, with an EBITDA margin of 44 per cent. In segment Product Innovation & Realization (PIR), revenues grew to NOK 78.5 million driven by an increase in activity both on contract manufacturing and R&D services, while revenues for the Intelligent Traffic Systems (ITS) segment amounted to NOK 16.4 million for the second quarter.
“Oceans delivered a solid quarter with growth mainly attributed to a strong sonar sale, where revenues increased across all geographies. We are pleased to see that the new sonar family WINGHEAD is a significant contributor already one year after the market introduction. This shows that our market driven R&D investments generate an attractive return profile” says Per Jørgen Weisethaunet, CEO of NORBIT.
NORBIT expects continued high activity in Oceans for the second half of 2021, where fourth quarter historically has been the seasonally strongest quarter. For PIR, revenues for the next two quarters are expected to increase from the level reported in the second quarter supported by growing activity towards some larger customers within contact manufacturing. NORBIT expects revenues within segment ITS to exceed NOK 100 million in the second half and a margin uplift, supported by recently announced On-Board Units contracts and completion of the acquisition of iData.
“Since 2010, NORBIT has grown its revenues by close to 30 per cent per year on average, mostly organic, and at the same time remained firm to our objective of delivering sustained and profitable growth. As we prepare for the next phase of our growth strategy, we intend to reinforce the elements that have served the company well in the past, including market-driven innovation to carefully selected niches, recruiting and refining of top talents, utilizing our global sales and distribution platform and a strong corporate culture of always exploring more”, says Per Jørgen Weisethaunet
Towards 2024, Oceans’ strategic focus remains on broadening the product portfolio through R&D investments, strengthening its position and taking advantage of the established global distribution. Benefiting from the investments made in increasing the manufacturing capacity, the strategic objective in PIR remains to organically grow the segment by entering new industry verticals within contract manufacturing. ITS is embarking on a strategy to grow a new sub-segment based on selected IoT 5G niche applications, benefiting from NORBIT’s experience within low power wireless devices and complementing ITS’ existing position in the dedicated short-range communication (DSRC) domain. The ambition is to significantly increase the share of income generated from subscription-based business models, where the acquisition of iData is a cornerstone accelerating this strategy.
“Our ambition of NOK 1.5 billion in revenues in 2024 implies a growth rate of 25 per cent per year from 2020, in line with historical organic growth performance. In addition, we will continue to explore value-accretive acquisitions to accelerate growth further. Succeeding with the plan requires sustained financial robustness and a strong balance sheet, ensuring the necessary flexibility to grow and employ capital. We look forward to the next chapter of the NORBIT growth journey, ” says Per Jørgen Weisethaunet.
CEO Per Jørgen Weisethaunet and CFO Per Kristian Reppe will present the results today at 10:00 CEST through a webinar hosted by SpareBank 1 Markets. Please use the following link to register for the webinar: https://attendee.gotowebinar.com/register/5701754357001800203.
For more information, please contact:
Per Jørgen Weisethaunet, CEO, +47 959 62 915
Per Kristian Reppe, CFO, +47 900 33 203
About NORBIT ASA
NORBIT is a global provider of tailored technology to carefully selected niches. The company’s business is structured to address its key markets; Oceans is offering tailored technology solutions to global maritime markets, Intelligent Traffic Systems (ITS) is offering connectivity solutions for vehicle identification and tracking, and Product Innovation and Realization (PIR) is offering R&D services and contract manufacturing to key customers.
NORBIT is headquartered in Trondheim, Norway, with manufacturing facilities in Selbu and Røros, Norway and 15 offices and subsidiaries around the world.
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
This stock exchange announcement was published by Elise Heidenreich, Investor
Relations at NORBIT ASA, on 13 August 2021 at 07:00 CEST.