Danish SaaS company Loyal Solutions, delivers on target in the first 6 months as a Nasdaq First North listed company, with 26% ARR growth and major milestones reached.

CEO Peter Kisbye comments:

"The period 1 July - 31 December 2021 ("the Period") was the first half year post our IPO ("Initial Public Offering") on Nasdaq First North Growth Market Stockholm, June 3 2021.

As planned, we activated our recruitment plan post IPO, and all our new "non-IT" resources were operational from  October 3  2021. IT recruitment was, not unexpected, more time consuming. Based on the current recruiting market in the Nordics and our need to scale at a faster and faster pace in the coming years, the Company decided to open an IT Development hub in Johannesburg, South Africa co-located with our local partner Mortimer Harvey. The hub will up on running from Febuary 1, 2022, starting with 4 senior backend colleagues.

Our most important KPI internally is to deliver the results we have communicated to the market.
For the Period we have succeeded in doing that.  All figures are in line with expectations or better.  We saw satisfactory revenue growth from our existing clients, despite covid impact for some, and we performed as expected on new sales.  The biggest milestone in the Period was the selection of our SaaS technology by Visa Inc. for a global Visa SaaS platform, VMLS, that Visa will market to its bank and merchant customers across the globe.  We also signed an agreement with Mastercard Nordics and Baltics for technology  enabling digital receipts for cardholders. The first client under this agreement launched in January 2022. This new solution further showcases the flexibility of the LoyalTfacts® platform.
We achieved a 26% growth in ARR, and  revenue was 40% above budget for the Period, both satisfactory results. Our strong focus on cash management has resulted in a lower burn rate than expected and an EBITDA result 5.2 Mill better than budgeted. Our expectation for the full year EBITDA is  therefore changed to - 19,5  MDkk vs. previously expected - 24.5 MDkk.  The resilience of our SaaS solution has limited
 (not removed) the covid impact on existing clients and we expect this resilience to continue in the coming half year. As always currently; should the covid situation suddenly worsen, we do expect to see an increased impact on clients in the travel and hospitality sector.

Our most important resource, our employees, have again done a positivly outstanding job, and despite being busy we have maintained our focus on work-life balance and on providing flexible working hours and locations.  We truly believe in putting employees first and that "team is everything", so a big thank you and respect to everyone at Loyal Solutions for the results in this first half year of "our new life".
We will do our outmost to continue and further improve the performance trend moving forward"


HIGHLIGHTS FOR THE PERIOD 1/7-31/12 2021

Business and operational highlights

During the first half of financial year 2021/22 the Company reached several milestones, including:

  • After a 12 months global RFP (Request for proposal) process, the Company in August 2021 could announce that Visa Inc had selected the Company's LoyalTfacts(r) ® technology to power a new Visa loyalty product, VMLS, for Visa`s bank and merchant customers globally. The 5-year agreement has resulted in a positive inflow in the Company's pipeline from several Visa regions globally. (Expected sales lead times 9-12 months)
     
  • In July 2021 the Company signed an agreement with Mastercard Nordics & Baltics, enabling Mastercard to offer digital receipts to cardholders across the region. The first client under this agreement, Receipt Hero OY, Finland, launched in January 2022
     
  • In September 2021, FDM, The Danish Auto Association, expanded their card linking solution to also include Mastercard
     
  • We achieved a Growth of 26 % in ARR (Annualised Recurring Revenue) for the half year ending 31 December 2021
     
  • Cash position was TDKK 19,883 on 31 December 2021.  The cash burn for the first half year was in line with then budget  TDKK - 8,441 vs budgeted - 8.931
     
  • Several new features were added to LoyalTfacts(r) 4.0 including the digital receipt module
     
  • New sales directors recruited (3) as planned, and the pipeline inflow resulting from this is as expected.  As sales targets are large global companies, the sales lead times is expected to be 9-12 months
     
  • Upon completion of the IPO (3 June 2021) our recruitment plan was activated. Non-IT resources were recruited and in place by 1st of October 2021,  whereas, not unexpected, recruiting IT talent in the Nordics was/is more challenging.  As a result of this and the positive inflow in the pipeline, the Company decided on establishing a second recruitment track by opening an IT-development office in Johannesburg, South Africa, co-located with our partner Mortimer Harvey. The office opens with 4 senior developers on Feb 1st  2022, and gives the Company a much wider talent pool to recruit from as well as additional flexibility on IT scaling
     
  • Client satisfaction remains very high, and no churn has been experienced during the period
     
  • The company signed contract to move to new larger offices in Copenhagen in June 2022
     
  • Henriette Høyer joined the Board, bringing extensive experience from the payment industry
     

    Conference call to present first half-year of financial year 2021/22

    Loyal Solutions will present its first half year of financial year 2021/22 via a brief live webcast through MS Teams on 20 January 2022, at 11.00-11.30 CET. Please join and ask questions directly to our CEO, Peter Kisbye, and CFO, Pernille Normand Farup-Hansen, at this investor event.

    To participate, please join the conference call on this link.


    Certified Adviser
    Svensk Kapitalmarknadsgranskning AB
    Telefon: +46 11 32 30 732
    E-post: ca@skmg.se

    This press release constitutes inside information that Loyal Solutions A/S is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was sent for publication, through the agency of the contact persons set out below, at the time stated by the Company's news distributor, Cision, at the publication of this press release.


    For further information about Loyal Solutions A/S, please contact:
    Peter Kisbye, CEO
    Telephone: +45 2128 6960
    E-mail: pki@loyalsolutions.eu

    Or

    Pernille Normand Farup-Hansen, CFO
    Telephone: +45 2258 7837
    E-mail: pnf@loyalsolutions.eu


 

Loyal Solutions was set up in 2009 with the sole purpose of disrupting the loyalty industry with new technology, new transparent concepts and a 100% focus on the end customer.
Loyal Solutions has quickly become a leading global provider of loyalty concepts, solutions, and technology for selected industries for select clients. Our proprietary technology and global private cloud solutions are state of the art and market leading. We also offer clients full outsourcing options, making implementation of a full program seamless and easy.
We have our HQ in Copenhagen and are currently represented in Stockholm, Palo Alto, Mumbai, Cairo, Dubai, Johannesburg, Melbourne, and Sydney.
 

https://news.cision.com/loyal-solutions-a-s/r/loyal-solutions-annonuces-half-year-results-for-1-7-31-12-2021,c3487961

https://mb.cision.com/Main/20251/3487961/1522726.pdf

https://news.cision.com/loyal-solutions-a-s/i/news-17,c3001017

(c) 2022 Cision. All rights reserved., source Press Releases - English