Q4 2024
- Net sales amounted to MSEK 113.1 (107.7), rendering a net sales growth of 5% (18%)
- The FX adjusted net sales growth for the quarter was 2% (18%)
- Software revenue amounted to MSEK 83.0 (72.2). The share of total sales reached 73% (67%)
- Adjusted EBIT amounted to MSEK 26.5 (16.6)
- Adjusted EBIT margin of 23% (15%)
- Cash flow from operating activities amounted to MSEK 43.7 (10.9)
- Net income amounted to MSEK 24.3 (16.2)
- Earnings per share before dilution amounted to SEK 0.69 (0.48) and diluted to SEK 0.69 (0.46)
2024 in brief
- Net sales amounted to MSEK 343.1 (332.1), rendering a net sales growth of 3% (0%)
- The FX adjusted net sales growth was 2% (-3%)
- Software revenue amounted to MSEK 235.2 (210.4). The share of total sales reached 69% (63%)
- Adjusted EBIT amounted to MSEK -5.9 (-5.3)
- Adjusted EBIT margin of -2% (-2%)
- Cash flow from operating activities amounted to MSEK -25.7 (-17.7)
- Net income amounted to MSEK -3.5 (-9.3)
- Earnings per share before dilution amounted to SEK -0.10 (-0.27) and diluted to SEK -0.10 (-0.27)
A word from the CEO:
The fourth quarter of 2024 continued in a positive direction. Our focused efforts on sales, delivery, and further development of our products and services, combined with a strong emphasis on cost control and profitability, resulted in a solid quarter to close the year. Market interest remains positive, and we have signed several key contracts, both extensions with existing customers and new projects in growing markets.
Net sales for the fourth quarter amounted to SEK 113.1 million (SEK 107.7), an increase of 5% compared to the previous year. The operating income reached SEK 26.5 million, with an EBIT margin of 23%. During the quarter, we also saw an improvement in cash flow.
EMEA
In EMEA, we have extended and expanded several strategic contracts. This includes continued trust from our defense customers in the UK, particularly with the British Army, where we have now secured collaboration until the end of 2028, with options for further extensions until 2030. Additionally, we have signed agreements for expanded deliveries directly to NATO, with projects aimed at strengthening military readiness and presence in Europe.
In the Resilience sector, our efforts to package solutions into more standardized products have shown results. We have initiated several new projects in Sweden, focusing on business continuity and incident management for both public and private sector clients. An increasing interest among Swedish municipalities and authorities in total defense and preparedness aligns well with our market offering, leading to a rise in engagement in this sector. This is an important long-term trend that supports our growth within the Resilience segment.
North America
The development in North America remains positive within the defense segment. In the fourth quarter, we signed new contracts for our standardized training and exercise software, while agreements made in the third quarter entered the production phase.
One such contract is with the Joint Modernization Command (JMC) and its Project Convergence, a key initiative in the modernization of the U.S. Army. Project Convergence focuses on testing and integrating new technologies and operational methods to enhance readiness and capabilities. Through our Exonaut software, 4C is demonstrating how our platform optimizes training, exercises, and experimentation, further solidifying our position in the U.S. Army's modernization efforts. This creates opportunities for deeper collaboration within the Army command structure and paves the way for broader implementation of our solutions.
In Resilience, we are still in an market entry phase, but feedback from trade fairs and direct customer dialogues during the quarter points to a positive trajectory moving forward.
APAC
We are following our long-term strategy in APAC and continuously expanding our influence in the region. Our ongoing deliveries in support of one of the world's largest military exercises, Talisman Sabre 2025, are progressing as planned. As a joint exercise between Australia and the United States, this commitment is strategically significant-not only by providing the Australian Defence Force with a critical capability for more efficient exercise planning but also by demonstrating how 4C can support this type of operation for the 18 other participating nations in the region. Additionally, we have signed extended agreements to support Australian special forces with capability assessments and evaluations.
Expert Services
Our Expert Services offer ended the year strongly, with a solid order book heading into 2025. The increased interest in building more mature and prepared organizations is evident, particularly in the Nordic region. We also see growing interest from Europe, the UK, NATO, and the U.S. in learning from Sweden's total defense concept, where we are well positioned to contribute.
Closing 2024 and Looking Forward
As a new CEO, there is always a strong drive to implement change quickly. In 2024, we have taken important steps towards restoring long-term profitable growth, but much work remains. Looking back at the year, we can see clear improvements. From a weak first half, we have regained momentum in North America, increased engagement in EMEA, restored profitability in Expert Services, and strengthened our position in APAC. At the same time, we have established a new internal structure and optimized costs within support functions. For a company with just over 200 employees, we have impressive global reach and strong customer trust. This creates opportunities for growth on multiple fronts. I see us expanding into new markets while also broadening our presence in existing areas, including new defense domains such as sea, air, and space.
2025 begins with a new political administration in the U.S., an ongoing war in Europe, and uncertainties surrounding inflation and the economic outlook. These factors reinforce the long-term relevance of our products and services, even if they pose short-term challenges.
I, along with the entire 4C team, am ready to embrace the challenges and opportunities that 2025 will bring. We look forward to continuing to create long-term value for our customers, shareholders, and employees.
Jonas Jonsson
CEO
Invitation to webinar for the presentation of 4C Strategies' Year-end report, January - December 2024:
4C Strategies' Year-end report for January - December 2024 will be published on Friday, February 14, 2025, at 07:50 CET.
The same day at 09:30 CET, a presentation will be held where analysts, investors, media and other stakeholders are invited to participate. The presentation will be a webinar where 4C Strategies' Jonas Jonsson (CEO) and Anders Nordgren (CFO) will comment on the published report and answer questions. The presentation will be in English.
Afterwards, the presentation material will be available on 4C Strategies' website under 'Reports and Presentations'.
For participation at the presentation:
Sign up here
For further information, contact:
4C Group AB (publ)
Jonas Jonsson, CEO
Anders Nordgren, CFO
investor.relations@4cstrategies.com | + 46 (0) 8 522 27 900
Certified Adviser: FNCA Sweden AB
About 4C Strategies
4C Strategies is a leading global provider of organisational readiness and training management solutions for customers in the defence, public and corporate sectors. 4C Strategies provides an integrated offering of organisational readiness and training management solutions in mission-critical environments, consisting of its software platform Exonaut as well as expert services and software-related services. Exonaut complies with the strictest demands on security and data integrity and is accredited by NATO. From its offices in the Nordics, the UK the US and Austrailia, 4C Strategies serves over 150 customers, including some of the world's most high-profile public institutions, global enterprises and several NATO allied armed forces. 4C Strategies was founded in Sweden in 2000, and is headquartered in Stockholm. 4C Strategies' share is traded on Nasdaq First North Premier Growth Market, under the ticker "4C".
investors.4cstrategies.com
This information is information that 4C Strategies 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 2025-02-14 07:50 CET.
