WindowMaster: Downgrades 2023 guidance, announces 2024 guidance, extends its strategy plan, and is considering the possibility of uplisting to Nasdaq Main Market
Today, WindowMaster has downgraded its 2023 guidance and announced its new 2024 guidance. In connection with that, WindowMaster extends its 'Accelerate Core' strategy to the end of 2026 (from 2025) due to the changed assumptions related to the external environment. Moreover, WindowMaster is considering the possibility of transferring its listing from Nasdaq First North to Nasdaq Main Market Small Cap within its strategy period.
In 2023, the company now expects revenue in the range of DKK 233-238m (before DKK 240-250m) and EBITDA in the range of DKK 12-15m (before DKK 14-18m), corresponding to an EBITDA margin of 5.7% (before 6.5%) based on the guidance midpoint.
The lower guidance is explained by a disappointing development at product customers focused on the Residential market as well as postponements of specific projects in the UK and North America. The contribution margin remains solid. EBITDA guidance includes one-off costs, which are related to the write-off of slow-moving stock plus other minor elements that total DKK 1.1m.
WindowMaster's order intake for the full year 2023 is expected to be in the range of DKK 250-255m, which is at the same level as in 2022 (DKK 254m).
Cash flow from operations is expected to be positive in H2 2023, leading to a lower financial gearing at the end of 2023 compared to 4.1x NIBD/EBITDA by the end of H1 2023.
Looking ahead to 2024, WindowMaster has announced its new 2024 guidance. In 2024, the company expects revenue of DKK 240-265m or approx. 5-10% organic growth (7.2% organic growth based on the guidance midpoint of the new 2024 and 2023 guidance) and EBITDA of DKK 16-22m, corresponding to an EBITDA margin of 7.5% based on the guidance midpoint. The company comments that the guidance for 2024 is supported by a high order intake in Q4 2023.
The company also comments on the high level of uncertainty, particularly concerning projects and the Residential segment due to higher interest rates. However, WindowMaster expects better market conditions during 2024 and especially in 2025.
The fixed cost and investment base is expected to be kept unchanged. WindowMaster expects this will lead to improved lead generation, opportunities, and revenue. With expected improved profitability and high cash conversion, WindowMaster has a target NIBD/EBITDA of a maximum of 2.0 by the end of 2024.
With the new guidance, WindowMaster has decided to extend the ‘Accelerate Core’ strategy to the end of 2026 (from 2025) due to changed assumptions in the external environment.
In today’s announcement, WindowMaster also states that the company is considering the possibility of transferring its listing from Nasdaq First North to Nasdaq Main Market Small Cap within the Accelerate Core strategy period (end of 2026). The company has made its initial preparations and considerations; however, no formal decisions have been made, implying that there is no certainty that a decision will finally be made.
Read the full announcement here: https://view.news.eu.nasdaq.com/view?id=b5efb379f960d70cdf9040bb70c4c7528&lang=en&src=listed
HC Andersen Capital receives payment from WindowMaster for a Digital IR/Corporate Visibility subscription agreement. /Kasper Lihn 19:15, 13 December 2023.
WindowMaster International
WindowMaster is a Danish clean tech company that supplies sustainable indoor climate solutions based on intelligent natural and mixed mode ventilation as well as heat and smoke ventilation solutions. The solutions are for commercial use, primarily in the following six segments: 1) Office, 2) Education institutions, 3) Cultural buildings, 4) Shopping centers, 5) Hospitals and 6) Sports facilities. In 2015, WindowMaster was acquired by the current majority shareholder and CEO, Erik Boyter, in a management buy-in. Today, the company is a global company with sales subsidiaries in Denmark, Germany, Ireland, Norway, United Kingdom, United States, and Switzerland. The company has been listed at Nasdaq First North in Denmark since October 2020.
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