STOCKHOLM, SWEDEN / ACCESSWIRE / February 27, 2024 / STRAX (STO:STRAX)(FRA:NOBC) Challenging year operationally with two significant transactions completed
The Group's sales for the period January 1 - December 31, 2023, amounted to MEUR 30.2 (41.5) with a gross margin of -34.9 (1.0) percent.
The Group's result for the period January 1 - December 31, 2023, amounted to MEUR -44.6 (-19.6) corresponding to
EUR -0.37 (-0.16) per share.
EBITDA from remaining operations for the period January 1 - December 31, 2023, amounted to MEUR -39.4 (-15.5).
Equity as of December 31, 2023, amounted to MEUR -49.8 (-6.5) corresponding to EUR -0.41 (-0.05) per share.
Gross profit was MEUR 8.1 after adjusting for inventory write off and other non-recurring items, corresponding to
23.3% gross margin.
As of December 31, 2023, STRAX is not fulfilling the special conditions in the loan agreement with PCP due to the development of profitability and financial position in the Group. STRAX board and management is working closely with PCP on the strategical and tactical plan to return to compliance of the agreement. The plan includes divestment of non-core assets to increase focus as well as reduce costs and lightening the balance sheet and in the longer perspective increase the financial position of the Group. In addition, several initiatives have been taken to partially divest and find strong financial partners for core parts of the business to ensure they can continue to grow and prosper without being limited by the constrained cash of the Group. With these initiatives we are optimistic STRAX will be sitting on solid assets that will continue to develop in the right direction and generate value for STRAX and its stakeholders. STRAX is now executing the plan and expects to considerably lower the debt level of the Group during 2023 and 2024 and repay significant parts of the outstanding amounts under the loan agreement. The board and management have taken numerous actions to ensure the remaining business returns to profitability as well as taking actions on loss making operations being discontinued. After the end of the period STRAX has received a waiver from PCP concerning the breach.
STRAX AB, through its subsidiary STRAX Holding GmbH, divested its ownership of Urbanista AB for a total consideration of the equivalent of approximately MEUR 24.5 to P Capital Partners AB ("PCP"), with a potential upside for the Group. The consideration of approximately MEUR 24.5 was fully assigned towards the outstanding loans under the facility agreement with PCP. The sale will also lead to a capital gain of approximately MEUR 19.4.
"During the past three challenging years we have continuously been changing the operating structure of STRAX as well as adjusting our business model. The primary objectives have been to lower our interest-bearing debt and unwind the cumbersome company structure. We have worked tirelessly on these objectives over the last 18 months, which has already resulted in several positive changes, and we expect to complete most of these within the next 3-6 months."
Gudmundur Palmason, CEO
For further information
For further information please contact Gudmundur Palmason, CEO, STRAX AB, +44 7714 739 955.
About STRAX
STRAX is a global leader in accessories that empower mobile lifestyles. Our portfolio of branded accessories covers all major mobile accessory brands and categories: Protection, Power, Connectivity, as well as Personal Audio. Own brands are Clckr, Planet Buddies and RichmondFinch. Our brands reach a broad customer base, through 70 000 brick and mortar stores around the globe, as well as through online marketplaces and direct-to-consumers.
Founded as a trading company in 1995, STRAX has since expanded worldwide and evolved into a global brand business. Today we have approximately 90 employees in 6 countries. STRAX is listed on the Nasdaq Stockholm stock exchange.
Divested own brands consist of Urbanista and Gear4.
Discontinued operations include Health & Wellness and licenced brand portfolio of adidas and Diesel.
This information is information that STRAX is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-02-27 19:00 CET.
Attachments
Year End Report 2023
SOURCE: STRAX
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