Nordic Camping’s CEO Tom Sibirzeff does apparently believe it is a good time to buy shares in his company. Yesterday, Mr Sibirzeff acquired a further 13 513 shares. After the transaction, he owns a total of 1.85m shares. That is called conviction and commitment and sends a strong message to the market.
Operationally, things are looking bright for Nordic Camping. On February 26th, the company reported a strong set of 2o15 results. For 2015, sales amounted to SEK 89.1m (+15% y-o-y), while EBIT came in at SEK 18m (+17% y-o-y). For the first time ever, the company managed to report a net profit in the fourth quarter, which is usually seasonally weak.
Nordic Camping’s CEO Tom Sibirzeff commented in the report: “The organic growth on existing camping sites during 2015 was 10% which is above sector average and in-line with our financial target. The operational margin of 19.3% can be compared with 19.2% the year before. Operating cash-flow amounted to SEK 21m. We are very pleased with the fact that a high occupancy in our cottages contributed to a net profit in the last quarter of the year. Q4 net sales increased by 29% y-o-y to SEK 15.3m…During the fourth quarter, which has traditionally been week for the camping industry, revenues were mainly generated from our co-operation with Migrationsverket, construction companies and year-around-guests.
Supported by the new issue we conducted during 2015 and strong finish to the year, I believe that the company is financial well prepared for future acquisitions and expansion… We are very actively looking for new camping sites in order to lead the consolidation in the industry.”
We believe the next trigger for the share will be M&A activity. Nordic Camping has a strong track-record of achieving both high organic growth and structural growth. It’s business with Migrationsverket (refugee housing) is doing well and the company managed to extend the co-operation throughout the spring with an order value of SEK 15m.
As we have highlighted before, December to April is usually a strong time for the Nordic Camping share. Looking at Nordic Camping’s share price performance over the last five years, you can see in the chart below, that the performance has been +2% at the worst and +32% at best, with an average of +23% for the period December to April: