28 February 2024 – ININ Group with strong revenue growth, revenue in Q4 2023 up 394% compared to Q4 2022, full year 2023 revenue growth of 929%, NOK 682 million (NOK 65 million). The net asset value (NAV) of ININ Group’ investment platforms was NOK 525 million at the end of 2023, up from NOK 320 million.
ININ Group is a listed investment company operating as an industrial owner with investments in companies within infrastructure services niches in the Nordics.
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“The combined NAV of our investment platforms adjusted for our ownership share was NOK 525 million end of Q4, which represents an increase of 1.7x since the time of our investment, reflecting solid organic growth and improved profitability in all our platform companies,” says Øivind Horpestad, CEO of ININ Group.
ININ Group experienced strong operations and high activity across the portfolio in the fourth quarter.
In the fourth quarter 2023, ININ Group delivered revenue of NOK 321 million, an increase of 394% from the corresponding period in 2022 (NOK 65 million). The increase is driven by a combination of organic growth and acquisitions. EBITDA in the fourth quarter 2023 was NOK 4 million, compared to NOK -11 million in Q4 2022.
For the full year 2023, ININ Group delivered revenue of NOK 682 million, a growth of 929% from NOK 66 million in 2022. EBITDA for the full year 2023 was NOK 14 million, a substantial improvement compared to NOK -38 million in 2022.
“We deliver significantly improved EBITDA results in both the fourth quarter and full year 2023. However, margins have been affected by significant investments in growing our platforms, for example our Testing, Inspection and Certification platform, which recruited more than 40 experts during the second half of last year. We have a strong orderbook at the beginning of the year and expect both growth and increased EBITDA margins in 2024,” adds Øivind Horpestad.
ININ Group’s order backlog stood at NOK 621 million at the end of the fourth quarter 2023, compared to NOK 263 million one year earlier.
ININ Group’s cash flow from operating activities was NOK 97.2 million in the fourth quarter 2023, compared to NOK 10 million in the corresponding quarter 2022. The company’s cash balance was NOK 44.3 million as of 31 December 2023.
INVESTMENT PLATFORM UPDATE
Currently, ININ Group consists of three investment platforms: Rail Infrastructure; Power Distribution; and Testing, Inspection & Certification (TIC).
Rail Infrastructure delivered proforma revenues of NOK 600.4 million in 2023 (2022: NOK 334.8 million), with EBITDA of NOK 50.4 million (2022: NOK 24.8 million). During the fourth quarter 2023, this platform closed the acquisition of railway contractor Team 1435 AS.
The Power Distribution platform is headed by Laje AS, which was acquired in the fourth quarter of 2023. This platform delivered proforma revenue of NOK 823.9 million in 2023, a growth of 21% compared to 2022 (NOK 682.6 million), with EBITDA of NOK 13 million, an improvement of +76,8 million compared to the year before (NOK -63.7 million). The EBITDA is expected to further improve in 2024.
The TIC platform delivered proforma revenue of NOK 39.3 million in 2023, an increase of close to 100% (NOK 20.3 million in 2022), with an EBITDA of NOK -9.1 million (NOK 1.0 million). The 2023 financial result is heavily impacted by investments in organic growth in the second half of the year. The utilization rate of its inspection specialists is expected to grow significantly in 2024, with associated revenue growth and margin improvement.
OUTLOOK
ININ Group invests in positions within infrastructure and industry services verticals that are supported by strong macro drivers. Public investments in maintenance of rail infrastructure are expected to increase in coming years as spending currently falls short of levels needed to address wear on existing infrastructure. Further, pressure to invest in power distribution infrastructure is increasing on the back of a European energy crisis and rapidly growing electrification of society.
2023 was a year where ININ Group laid a strong foundation for its three investment platforms, which have now been developed into robust stand-alone businesses. The objective is to continue to identify accretive M&A opportunities for these platforms, but organic growth and improved profitability is expected from all three platforms in 2024.
PRESENTATION AT 08:30 (CET) TODAY
ININ Group will hold a webcast presentation at 08:30 (CET) today. Presenter is CEO Øivind Horpestad.
Register for the online event at: https://bit.ly/ININ_Q4_2023
Questions can be submitted during the live webcast through a Q&A function.
The presentation material is enclosed with this announcement.
(ENDS)
For further information, please contact:
Øivind Horpestad, CEO of ININ Group, Tel: +47 910 00 626
About ININ Group AS
ININ Group is a listed investment company r with investments in companies within infrastructure services niches in the Nordics. The group aims to create value by identifying investment opportunities within profitable niches with potential for development, consolidation, and growth, working in close collaboration with the platform companies to deliver sustainable growth and profitability. For more information, please visit: www.inin.no
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange announcement was published by Fredrik Ekholm, Investment Manager, at 08:00 am (CET) on 28 February 2024.
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