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#Opus: Increasing market share in Sweden; Chile to start in H2


Vehicle inspection specialist Opus released its Q2 2015 numbers this morning. During the period, sales amounted to SEK 452,1m, +11,8% y-o-y. EBITDA of SEK 94,2m was 6% above the level seen in Q2 2014 and implied an EBITDA margin of 17%.

In the report, CEO Magnus Greko states the following:

“The second quarter of 2015 is characterized by continued growth with good operational profitability and strong cash flow generation from the operations. With the tailwind of the USD and an increasing market share in Sweden the quarter delivers both growth and increased operational profit to a new record level of EBITDA SEK 94.2 million with a cash flow generation of SEK 65.4 million.

During the last three quarters (Q3 2014 to Q1 2015) we have invested in new business opportunities as well as improved the existing business. It is therefore very satisfactory to now see the positive effects on the EBITDA of these actions, which will continue to contribute going forward.

In the international vehicle inspection segment the work is on-going to build stations and prepare for startup of the new operations in both Chile and Pakistan. In July/Augusti, Opus Inspection won two new concessions in Chile, one in the O’Higgins region with approx. 100 000 inspections per year and one in the Metropolitana region in the greater Santiago area with approx. 125,000 inspections per year. Opus Group now has a platform of three concessions in Chile with a target to continue to grow in this market. In Q3, after 2.5 year of development, Opus Inspection got the approval for its new BAR 97 Gen3 emission analyzer in California, which is the first certification of a new analyzer in over 15 years. Following the success of the OBD DAD rental program, Opus Inspection has now launched a second rental program for the larger system BAR 97 Gen 3, which will now be available to thousands of stations in the California Smog Check program during the next years with expected rental period of many years to come.

In the segment Vehicle Inspection Sweden, the focus during the second quarter has been to regain market share in the Swedish market through higher efficiency, increased opening hours and other measures. The market share of Opus Bilprovning increased from 26.2 percent in March to 28.1 percent in July representing only 1.2 percent down since we acquired the station network in November 2012. In addition, the EBITDA-margin is positively affected by the price adjustments made in Q1. EBITDA margin increased from 20.6 percent in Q2 2014 to 22.2 percent in Q2 2015.

Sales in the Equipment division grew organically, however the EBITDA margin was negatively affected by changes in the product mix. During Q2, Opus Group signed an agreement to sell the Equipment Division to MECA Scandiavia (Mekonomen Group). The deal was closed on July 1 and the final purchase price is estimated to be approx. SEK 52 million on a debt free basis.

During the second half of 2015 we will see startup of the first of the new operations in Chile as well as the new Virginia Remote Sensing program in the US.”

Nordic Investor

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