Aino Health AB (publ): Aino Health interim report January-March 2019
14 May 2019
Aino Health interim report January-March 2019
- Large deal with client in Finland, improved profit, net sales, and cash flow, the business model is showing results.
· Net sales increased to SEK 5,852,000 (5,075,000) SEK.
· Profit after financial items improved to SEK -3,264,000 (-7,276,000).
· Earnings per share improved to SEK -0.2 (-1.3).
The start of 2019 has been successful for Aino Health. During the quarter, we have signed new deals that are both financially and strategically important. We are also seeing that our partnership model works well.
During the start of 2019, we signed a deal with one of the world's largest American multinational IT companies regarding their operations in Finland. The contract was worth about 28 million SEK and has a significant impact on our net sales, profit, and cash flow. The deal is a breakthrough for Aino Health and the contract has a term of three years. The financial impact will be noticeable starting from the third quarter 2019, but this is one of the most important deals we have signed in a long time.
Through our partners, we have also signed new deals. For instance, our partner Finla has continued to influence its network. We have, together with Veritas, created a unique support service in work ability with Veritas' clients as the target group. The service will be deployed during the second quarter this year. We continue to focus on partnerships on all our primary markets.
Several clients have chosen us as their supplier and we have noted a larger interest in our solutions and services. It is gratifying to see that they are suitable for both global corporations and local enterprises. During the quarter, we have signed contracts with, among others, a global company in customer service, but also with a local company in the concrete/construction industry, through a partner.
Our business model is showing results
Our business model, with a combination of result-based compensation and fixed fees, has been successful. We are now starting to reap the rewards of our investments. Based on estimates, we can see that the revenue will keep pace quarterly during the contract period.
We have about SEK 1.2 million in accounts receivable from a result-based contract. This has not been taken up as revenue; we plan to start gradually taking it up as revenue during the third quarter. The receivables will be paid to Aino during the fourth quarter 2021, given that the outcome of the contract is on par with what it has been thus far.
Thanks to the successes that we have had recently, Aino Health has a sound and healthy financial situation.
In Germany, Arcelormittal extended and expanded its contract with us in April, following the end of a pilot project. This is an important strategic signal to us that we offer the right solutions and services, something that bodes well for the future.
CEO and President
Aino Health AB
The information contained herein is such as shall be made public by Aino Health AB (publ), in accordance with the EU Market Abuse Regulation. This information was made public, through the agency of Jyrki Eklund, CEO and President of Aino Health AB, at 08.30 AM CEST on May 14 2019.
For more information:
Jyrki Eklund, CEO Aino Health, Phone: +358 40 042 4221
Erik Penser Bank
+46 8 463 83 00
About Aino Health (publ)
Aino Health is the leading supplier of Software as a Service solutions in Corporate Health Management. The company's complete system of SaaS platforms and services reduces sick leave, lowers related costs, and improves business results through increased productivity and employee engagement by making health, wellbeing, and safety an integrated part of everyday work. For more information visit ainohealth.com.