Today, Bawat released its Q1 2023 result update, which showed an order intake of SEK 9.3m and revenue of SEK 4.2m.
In the Q1 2023 report, Bawat also repeated its full-year 2023 guidance of an order intake in the range of SEK 40-60m. The guidance range is maintained, as Bawat comments that the company currently has one large ship order under negotiations and also one very large mobile order in negotiations. The timing and positive or negative impact of these will have a large effect on the company's guidance.
Bawat's revenue of SEK 4.2m in the first quarter corresponds to revenue growth of 5% compared to 2022 pro rata sales, driven primarily by progress on mobile units.
The gross margin in the quarter was 21.6%, which is a small increase compared to the FY 2022 gross margin of approx. 17%. The sales in the quarter was driven by mobile units with normal margins. Bawat also confirms its longer-term aspiration of a 30% gross margin.
The quote activity was SEK 75m in the first quarter, resulting in an order intake of SEK 9.3m. It indicates an increased activity level and a success rate around the same level as seen in Q3 2022 of SEK 50m and SEK 7.3m in quote activity and order intake, respectively.
Cash at the end of Q1 amounted to SEK 3.6m (end of 2022 was SEK 6.7m) due to a bridge loan, operational loss, and positive impact from the working capital.
After the accounting period, the company has secured NEFCO financing of SEK 25m in two tranches with SEK 15m expected to be disbursed in 2023. The loan is dependent on 1:1 equity matching. Bawat has already announced a directed share issue of approx. SEK 19m, out of which SEK 17m has been subscribed. Bawat states in the report that the net proceeds from the directed share issue and the NEFCO financing are considered to be sufficient until the company reaches a positive cash flow from its operation.
Tomorrow, we will release an interview with Bawat's management, where we dig deeper into the results, the latest partnerships and joint ventures, as well as the financing plan.
Disclaimer: HC Andersen Capital receives payment from Bawat for a DigitalIR/Corporate Visibility agreement. /Michael Friis, 12:45 23 May 2023.