· Net turnover was KSEK 3,913 (4,753)
· Operating profit/loss was KSEK -10,417 (-9,038), involving a negative operating margin (neg)
· Profit/loss after tax was, KSEK-10,449 (-9,079) or SEK -0.3 (-0.5) per share.
· Operating cash flow was KSEK -9,336 (-10,634). Total cash flow was KSEK -9,753 (-11,734).
Key events during the period
January - March
Heliospectra appoints Ali Ahmadian as new CEO. Departing CEO Staffan Hillberg will continue to be involved as an advisor to Heliospectra.
Heliospectra makes presentation on the Cannabis Investor Webcast on 26 January 2017.
Heliospectra number 42 in Deloitte Global’s 2016 Technology Fast 500™ EMEA List of the fastest-growing companies.
TCG Retro Market 1 LLC has chosen to invest in Heliospectra’s intelligent LED lighting. In total products to a value of SEK 2.5 million (USD 302,000) will be installed at the beginning of 2017.
Heliospectra has been chosen as a finalist in the third edition of the Sapphire Awards in the “Horticulture Lighting” category.
Mak North America will be opening the first licensed cannabis farm for medical purposes in Macedonia. Mak North has chosen to standardise the new facility with Heliospectra LED lighting at an initial value of SEK 1.27 million (USD 143,034).
Heliospectra has appointed Redeye AB to be the new Certified Adviser for Nasdaq First North as of 1 March 2017.
The University of Sydney’s Centre of Carbon, Water and Food has chosen to invest in Heliospectra’s intelligent LED lighting to a value of SEK 823,601 (USD 90,800).
Canada’s Island Garden Inc., a licensed medical cannabis farm on Prince Edward Island in Canada, has decided to invest in Heliospectra’s intelligent LED lighting to a value of SEK 1,871,186 (USD 208,368). This is the second purchase for this customer following an extensive trial period.
Key events after the period
Full focus on commercialization
It is with great pleasure and confidence that I present my first quarterly report as CEO with Heliospectra. Heliospectra’s lighting solutions have been refined through years of research and development and have proven their value to our customers. I am now looking forward to applying my experience in international business to take Heliospectra to the next level and, together with my team, build a global leader of lighting solutions for controlled plant growth environments. During my initial time as CEO, we have taken the first steps in formalizing a proactive corporate culture with clear strategy, structure, and goals.
In the first quarter of 2017 we focused on the full commercialization of our lighting solutions, while at the same time enhancing the company’s position. To achieve this, we have drawn up a new strategic plan and have also rationalised and re-prioritised our activities. In Q1 a new internal organisation was created with clear goals for each role in the areas of Sales, Marketing and Supply Chain Management. We also created a product management department and introduced a new Product Manager into the organization to support our strategic goals and to further build on our robust product platform. Heliospectra’s products provide growers with a sustainable, reliable lighting solution based on high quality, which will always be a strong competitive advantage and principal for further product development.
We had a slow start in sales in Q1 2017, bearing in mind our high ambitions for this year’s financial results. However, the order value increased during the period by 40% compared to the same period in 2016. We also strengthened the pipeline for larger order intake in the food production sector, which is in line with the streamlined strategy and our enhanced focus on commercial greenhouses. These kinds of projects do, however, have a longer sales cycle than small and medium-sized projects, although the orders and volumes are generally bigger. Moreover, Heliospectra exhibited at two trade fairs – IPM Essen in Germany and Cannabis 2017 Cultivation in the USA – where important contacts were made.
Heliospectra is a global company with a product that is in demand in all markets. This was noticeable not least from the press releases published in the first quarter announcing major contracts with customers in Canada, Australia, Macedonia and Hawaii to a value of close to MUSD 0,7 (MSEK 6,5). Whether the aim is to supplement natural light in a greenhouse or to equip a facility for indoor cultivation, intense, high-quality light and enhanced control of the plant growth environment is a competitive advantage for all growers.
All in all, I am satisfied with the progress made by Heliospectra during Q1, the changes initiated, and the large steps the organisation has taken to build strong foundations for future market expansion in several geographical regions and market segments.
Ali Ahmadian, CEO
Heliospectra AB (publ)
For the complete Interim report:
The report in its entirety is attached and is available for reading at: http://ir.heliospectra.com/en/reports-downloads/
April 28, 2016