Q1 On track – record high order backlog
AKVA group is on track with a good financial performance in Q1 2015 and a record high order backlog. Total revenues in Q1 was 325 MNOK (310) with an EBITDA of 27 MNOK (32 MNOK). The order backlog at the end of the quarter was 547 MNOK (452 MNOK) which is the highest order backlog ever for AKVA group.
"We have completed another good quarter in AKVA group where we have taken advantage of our diversified portfolio both geographically and product wise. The record high order backlog and the continued high market activity gives us confidence and we consider ourselves to be on track so far in 2015", says CEO of AKVA group ASA Trond Williksen.
Cage Based Technology (CBT)
Nordic had a good start of the year, but with a slightly different product mix compared to Q1 2014. Sales of sensors and cameras are all time high, deliveries of plastic cages is slightly down year on year in Q1 and sales of barges continues to be very good. Chile had a good start of the year with high activity both on technology and on services. Canada and UK continue their good performance from 2014 with their best Q1 ever. We have experienced low activity in Export to emerging markets in Q1. This area is dominated by few but large contracts and this gives variations in the P&L quarter by quarter. Our Turkey operation had a profitable Q1 with good sales.
AKVA group Software AS continues to deliver stable and high margins with improved financial performance in Q1 compared to same period last year. Wise lausnir ehf also had a good start of the year with improved performance compared to same period last year. Software continues to invest in new product modules, which is expected to strengthen the financial performance of the SW segment further.
Land Based Technology (LBT)
We have experienced a slow start for the LBT segment in Q1. AKVA group Denmark has a good order backlog, however delayed start-up and progress in some projects explains the low margin in LBT in Q1. Plastsveis is on track with a profitable Q1 and a good order backlog.
Good market activity has materialized in a very good order inflow in Q1 and as a consequence the best order backlog ever for AKVA group. The order inflow in Q1 2015 was 367 MNOK (243 MNOK). The order backlog at the end of Q1 2015 was 547 MNOK (452 MNOK).
The balance continues to be considered as strong. Working capital in percentage of 12 months rolling revenue is improved YoY from 11.5% to 10.8%. We are able to maintain low working capital despite high activity during this 12 month period. Cash and unused credit facilities amounted to 147 MNOK (153 MNOK) at the end of Q1 2015. Total assets and total equity amounted to 942 MNOK and 404 MNOK respectively, resulting in an equity ratio of 43% (44%) at the end of Q1 2015.
We have a strong short term outlook due to high market activity and order backlog. Our target is to outperform 2014. The strong demand in the Nordic market is expected to continue. The positive operational development in the Chilean market is expected to continue in the next quarters due to a solid order backlog. However, our Chilean customer's struggle with low earnings brings some uncertainty to investments in the medium term. The volcano eruption in Chile might have a small impact short term on CBT investments, but pose an opportunity for LBT. We are monitoring the Chilean market closely and will adjust our operation according to the development. UK and Canada are expected to continue to perform well in the next quarters with a significant order backlog and a large portion of reoccurring business. Land based technology is expected to have a positive development with a growing order backlog and prospect mass. We experience historically high market interest for land based technology. Export sales to emerging markets will continue to fluctuate short term, but represents a large potential over time. New geographical regions continuously emerge as markets for our technology. We continue our effort to build service and after sales as a key business element in all markets and segments.
About AKVA group
AKVA group is a technology and service partner to the aquaculture industry worldwide. The company has around 740 employees, offices in 8 countries and a total turnover of NOK 1.2 billion in 2014. We are a public listed company operating in one of the world's fastest growing industries and supply everything from single components to complete installations, both for cage farming and land based aquaculture. AKVA group is recognized as a pioneer and technology leader through more than 30 years. The Corporate Headquarter is in Bryne, Norway.