Enersize Oyj: Interim Report for the third quarter of 2020
Enersize Oyj (“Enersize” or the “Company”) hereby submits the interim report for the period January – September 2020 and can report sales of 142,379 EUR for the period for the group. Sales for the third quarter amount to 53,094 EUR, compared with approximately 133,000 EUR in the corresponding period in 2019. Please note that this is not a financial report but a compilation of the most significant events during the past quarter. In accordance with the requirements of Nasdaq Stockholm First North Growth Markets regulations, Enersize releases financial reports on a half-year and full-year basis.
CEO ANDERS SJÖGREN COMMENTS
The third quarter has been an intense and very productive quarter for Enersize as the company has had time to both make and implement several important decisions. The sales and marketing organization has been moved to Lund and together with the rest of the organization, Enersize has now centralized its operations based on a joint office. In addition to obvious efficiency gains, it is important to gather the company for the work that remains to be done when it comes to accelerating the transition to software sales in order to generate recurring revenue.
The development of technology and market packaging goes hand in hand when it comes to simplifying and clarifying our offer. The plan for growth and profitability is based on focusing on software ("software-as-a-service") and education, which gives us the opportunity to develop a scalable, international, ecosystem of partners in a way that has not been possible before. Scalability and structure are two foundations of Enersize's new form. However, hardware will also continue to be a component of the company's sales for some time to come.
I myself am now much more active in the work with sales and marketing than I have ever been and I get a very good response from customers and partners when we present Enersize. When I look back at how we worked three months ago, there is such a big difference that it is hard to believe that it is the same company. Our products have been updated and integrated more clearly, we have repackaged and simplified our offer so that we from customers and partners hear that we are perceived as a new company. I am absolutely convinced that the secret for Enersize lies in the fact that we make it easy for partners and customers to begin their journey towards an energy-optimized compressed air system. It is very exciting to see how sales develop now!
Specifically, we have several quotes out there based on our new model where we sell multi-year subscriptions to our software services, both directly and through partners. We will continue the transition and I expect that at the beginning of 2021 we will only work according to our new model. In many cases, customers will still request leak detection and repair, which we will be able to carry out in-house where needed, but our goal is to work through partners in Sweden as soon as possible. All so that we can put our focus on product development, scalability and quality assurance. We will retain some direct customers in order to receive feedback on our development in close collaboration, test new products and to ensure that we retain the expertise in the organization.
Our sales people have gradually been given greater responsibility in the work with our partners in Sweden and internationally, which is a natural step in our transition to a scalable software company. Energy optimization of industrial compressed air systems is very profitable in Sweden despite the fact that we have such low energy costs. I expect that international partners will play an increasing role in our growth, as the potential for savings there is even greater.
Our image is important in order to realize the ambition to grow and become a force to be reckoned with in international contexts. For a few weeks now, there has been an eBook and a new company presentation, and we are rapidly producing product information that is significantly more professional than anything we have had before. The work of creating a new website that has our customers as a target group has already begun. At present, the website is primarily aimed at Enersize's shareholders, which is a legacy from the IPO in 2017. The new website gives us the opportunity to have a partner portal with information and training materials and will clarify what we offer our customers and partners in a completely new way.
On the development side, we have taken several major steps forward and the strategy going forward is complete. As we see an increased need for development capacity because we expect to attract customers at a faster pace in our software, I intend to hire another software engineer. Our development is highly market and customer driven and we will continue to have a very lean development organization where some non-critical work is managed through outsourcing.
Due to covid-19, the opportunity to be out and meet customers and carry out installations has been limited and this has had a negative effect on our sales. During September and October, we experienced that it started to get easier, but now the situation has become more difficult again. At the same time, the dialogue with several of our customers and a couple of partners has intensified and we are taking great strides forward in terms of understanding customer needs and refining our business model and product packaging. In this way, I believe that the company has so far taken advantage of the time during covid-19 through business development and in-depth business relationships.
Sustainability issues are and will be on the agenda for society and industry for many years to come and we work in an untapped market that is growing year by year. We also know from experience that the industry becomes more cost sensitive in times of recession. In the wake of covid-19, we therefore believe that demand for our cost-saving measures is increasing and we are well equipped.
Anders Sjögren, CEO of Enersize Oyj
Significant events in 2020
- Enersize announces that it has received an order from SCA via Momentum Industrial AB. The order pertains to leak detection and repair at SCA's paper mill in Ortviken, Sweden. Enersize will carry out the work with the help of LEAQS and the order value amounts to approximately SEK 1.1 million.
- Enersize has previously, through its Danish sales partner Granzow A / S, had Grundfos as a customer regarding leakage control. The company announces that Grundfos has ordered more advanced services for compressed air efficiency and savings, such as monitoring and monitoring, directly from Enersize. During February 2020, Grundfos ordered services corresponding to just under SEK 100,000.
- Enersize carries out a fully guaranteed issue that is subscribed for at 225%, which adds SEK 20.7 million to the company before issue costs.
The third quarter
- Enersize announces that the Board has decided to centralize and streamline the Company in order to accelerate the transition to sales of software that leads to recurring revenue. The company's operations are centralized in Lund and the operational management of sales and marketing will be taken over in the short term by CEO Anders Sjögren. The reorganization is expected to streamline work and reduce costs for the company by closing the office in Gothenburg.
After the end of the period
- In October, Enersize announces that the company will receive approximately SEK 259,884 before issue costs through the exercise of warrants (Enersize TO2). New subscription of 564,966 shares through the use of TO2 was carried out at a subscription price of SEK 0.46 in Sweden or EUR 0.04438 in Finland.
- In October, Enersize announces that Anders Lif will take over the role of sales and marketing manager. Anders Lif, in collaboration with the organization, has developed a strategy to adapt product packaging, pricing and partner model to Enersize's long-term goals — to build recurring revenue based on software and expertise for strategic energy optimization of industrial compressed air.
- In October, it is announced that Enersize Advanced Research AB will sign a letter of intent ("LOI") with Moroccan SCOPP Solutions SARLAU ("SCOPP Solutions") where SCOPP Solutions will use the Enersizes Compressed Air Services SaaS platform to provide energy optimization of industrial compressed air in the North. and the West African market, initially focusing on the local Moroccan market.
Upcoming financial reports
Year-end report 20210319
For more information about Enersize, please contact:
Anders Sjögren, CEO
Phone: +46 730 76 35 30
The English text is an in-house translation of the original Swedish text. Should there be any disparities between the Swedish and the English text, the Swedish text shall prevail.
Enersize develops and delivers smart software, tools, and services to enable energy optimisation of industrial compressed air systems. The industry expertise of our people and solutions, together with a commitment to become the global leader in compressed air efficiency software, has made Enersize a recognized leader for customers around the world. Enersize is a merger of multiple Nordic companies with experience from more than 9,000 customer projects.
The company is listed on Nasdaq Stockholm First North Growth Market under the ticker: ENERS.
For more information visit https://enersize.com
Mangold Fondkommission AB
Phone: +46 8 503 01 550