iLOQ’s growth accelerated during the 2018 financial period – net sales grew by 24.5%
January–December 2018 (EUR million):
- Net sales increased by 24.5% to EUR 50.2 million (40.3)
- Gross profit increased by 23.0% to EUR 27.6 million (22.5)
- Comparable EBITDA amounted to 20.5% of net sales (25.0%)
- Comparable operating profit (EBIT) amounted to 18.2% of net sales (22.6%)
- Number of personnel grew by 50.0%, totaling 129 (86)
- Balance sheet total was EUR 26.4 million (29.8)
- Equity ratio was 68.6% (70.4%)
| EUR million | 2018 | 2017 |
| Net sales | 50.2 | 40.3 |
| Gross profit | 27.6 | 22.5 |
| Gross profit % | 55.0% | 55.7% |
| Operating margin (EBITDA) | 9.5 | 10.1 |
| Operating margin (EBITDA) % | 18.8% | 25.0% |
| Comparable operating margin (EBITDA) | 10.3 | 10.1 |
| Comparable operating margin (EBITDA) % | 20.5% | 25.0% |
| Operating profit (EBIT) | 8.3 | 9.1 |
| Operating profit (EBIT) % | 16.5% | 22.6% |
| Comparable operating profit (EBIT) | 9.1 | 9.1 |
| Comparable operating profit (EBIT) % | 18.2% | 22.6% |
| Result for the review period | 6.5 | 7.2 |
| Cash flow from operating activities | 3.8 | 7.4 |
| Balance sheet total | 26.4 | 29.8 |
| Equity ratio | 68.6% | 70.4% |
| Personnel on December 31, 2018 | 129 | 86 |
The figures in this press release have been prepared in accordance with the recognition and measurement principles of International Financial Reporting Standards (IFRS). The figures in the press release have not been audited. Comparable figures refer to the year 2017, unless stated otherwise.
CEO Heikki Hiltunen:
“The growth figures of the year 2018 are an excellent demonstration of the effectiveness of iLOQ’s business strategy. Our growth accelerated, and the company’s net sales grew from the previous year by 24.5%, totaling EUR 50.2 million. Considering the significant growth investments made in line with the strategy and the currently ongoing strategic evaluation work, our profitability and relative gross profit were at an excellent level. Our comparable EBITDA, adjusted for the costs of the evaluation work, increased by 2.1%, totaling EUR 10.3 million.
In 2018, we made significant investments to ensure our future growth and international expansion. We also aim to accelerate our growth. In May, we introduced the world’s first NFC-enabled access management solution, iLOQ S50, which is a prime example of our company’s forerunner position in digital locking systems. iLOQ S50 provides mobile access management for distributed serial locking systems. International interest and demand for iLOQ products, which meet increasingly digital access management needs, appears to be very strong and we can look forward with confidence to the year 2019.”
Financial development during the review period
iLOQ’s growth continued during the 2018 financial period. Net sales grew to EUR 50.2 million, increasing by 24.5%. The net sales of the Central European operations increased by 53.9%, led by German operations, and amounted to EUR 8.8 (5.7) million. The net sales of the Northern European operations amounted to EUR 41.5 (34.6) million, showing an increase of 19.7%. In Northern Europe, growth in euros was strongest in Sweden.
The company’s profitability developed positively for all key indicators during the 2018 financial period. Strong growth strengthened the gross profit, which grew by 23.0% year-on-year, amounting to 55.0% of net sales (55.7%). Taking into account the systematic growth investments made in line with the growth strategy and the costs of the strategic evaluation work, comparable EBITDA increased by 2.1% year-on-year, totaling EUR 10.3 (10.1) million. Comparable EBITDA amounted to 20.5% of net sales (25.0%). At the end of the year, the company employed 129 (86) persons, showing an increase of 50.0% year-on-year. EBIT totaled EUR 8.3 (9.1) million, amounting to 16.5% (22.6%) of net sales. The result for the financial period totaled EUR 6.5 (7.2) million.
The company’s liquidity and financing position were strong at the end of the 2018 financial period. Cash flow from operating activities for the 2018 period totaled EUR 3.8 (7.4) million. Compared to the previous year, cash flow from operating activities included growth investments in business operations and through this the increase in invested working capital tied up in the business as well as the supplementary taxes paid related to the previous year’s result. The consolidated balance sheet total was EUR 26.4 (29.8) million and equity ratio was 68.6% (70.4%) at the end of the review period.
Execution of the growth strategy progresses
During 2018, iLOQ continued to strengthen its organization to support the company’s long-term internationalization and growth targets, in line with the company’s growth strategy. The efforts were focused especially on strengthening the company’s international sales and marketing as well as product development. In addition to international expansion and strengthening the current operations in line with the company’s strategy, iLOQ expanded its Central European operations by opening a new sales office in France in May and in Spain in November.
In May, iLOQ introduced the world’s first NFC-enabled mobile access management solution iLOQ S50 for power production & distribution companies, telecom network services, data centers, water treatment plants, property services and transportation services. The keyless iLOQ S50 is based on the NFC technology used in smartphones and secure cloud-based access management. At the core of the iLOQ S50 technology is the world’s first and only lock cylinder harvesting energy for unlocking from a smartphone.
In addition to expanding its network of resellers, the company signed framework agreements with Finland’s leading real estate players YIT, SATO, Bonava, Avain Yhtiöt and Student Housing Foundation of Northern Finland during the financial period. Several measures have also been taken and initiated to fortify iLOQ’s brand and recognition, aiming at good visibility among target groups in several markets important to iLOQ in Central and Northern Europe and globally.
In May 2018, iLOQ announced that it is evaluating possibilities for listing the company’s shares on the Nasdaq Helsinki stock exchange and other possible alternatives for ensuring the company’s rapid growth and international expansion. In accordance with the announcement made in October 2018, the evaluation process will continue in 2019 due to the number of potential alternatives available and the time it will take to evaluate them.
iLOQ Oy
Heikki Hiltunen
President and CEO
For more information:
Heikki Hiltunen, President and CEO
Tel. +358 (0)40 317 0260
Samuli Siljamäki, CFO
Tel. +358 (0)40 317 0273
