Freemelt Holding AB (publ) interim report Q1 2023
10 May 2023 | Regulatory
Freemelt Holding AB (publ) whose groundbreaking solution creates new conditions for rapid growth in 3D printing – starts the year with positive operating cash flow. Freemelt – listed on Nasdaq First North Growth Market – is today one of the leading suppliers of advanced additive manufacturing.
THE GROUP’S KEY FIGURES
|KSEK||Jan-Mar 2023||Jan-Mar 2022||Full year 2022|
|Net sales||970||10 787||37 323|
|Operating result||-24 075||-9 952||-67 647|
|Results after financial items||-24 087||-9 995||-67 593|
|Balance sheet total||307 541||325 459||268 624|
|Cash flow||65 252||-12 544||-46 048|
SIGNIFICANT EVENTS DURING THE PERIOD, Q1
- Carried out a directed share issue of 11 million shares which raised SEK 66 million (excluding fees).
- Implemented a regionalised organisation for sales and service in North America, EMEA and APAC. A regional manager EMEA has been recruited and will start in June 2023.
- Granted a new US patent for neutralizing electric charge in metal powder by means of ultraviolet radiation.
- Received a fusion and renewable energy research order from United Kingdom Atomic Energy Authority, UKAEA.
- Positive cash flow from operating activities.
SIGNIFICANT EVENTS AFTER THE PERIOD
- Received an order for one Freemelt ONE®-system in North America from NC State University.
- Recruited Lisa Törsäter as Chief Marketing Officer. She will start in August 2023.
- Founded a subsidiary in the US, Freemelt-Americas, Inc. with the ambition to increase presence in the important North American market.
- Shortened the time of use for goodwill in order to harmonize with K3 accounting rules.
STATEMENT OF THE CEO
During the quarter, we completed a directed share issue of SEK 66 million. The issue secured new capital from both existing and new shareholders. The addition means that we now have the opportunity to intensify the development and completion of the industrial machine eMELT. The successful share issue is also a sign of strength in the strained financial times that prevail. It also shows that we have a value-creating business in research and development as well as a future interesting business in the industrial segment.
Our focus in recent quarters has been to increase our sales of the research and development machine Freemelt ONE®, both through direct sales channels and through indirect sales channels. There is an increased interest in electron beam technology, which is still a small part of the total powder bed fusion market. Therefore, the sales activity is still very much about informing and educating potential customers about the benefits of this technology as well as the benefits of Freemelt ONE®.
We see a particularly strong interest in tungsten linked to the renewable energy sector. Here we are particularly proud of the order from the United Kingdom Atomic Energy Authority (UKAEA). We will assist UKAEA in developing a material process of tungsten products intended for fusion power plants. The order from UKAEA, indicate both that fusion power plants are getting closer and closer to the development of a working technology and that electron beam technology is one of the potential manufacturing methods for tungsten products intended for fusion power plants.
During the first quarter of the year, we continued our commercial journey. We are in a market for advanced commercial 3D-printing and where customer requirements are evolving rapidly. Not least since 3D-printers are increasingly used for serial production. Here we must continuously adapt to market requirements. To make this possible, we have organized and restructured our way of working and operating. Among other things, we have implemented a structure where the regions (Americas, EMEA, APAC), have full responsibility for managing the sales and service operation. All to be constantly updated on the local market's changes and be able to quickly act on them.
We have established the operation in North America and will in the coming quarters perform recruitments for both sales and service resources. The focus will initially be on activating the resellers that were recruited in 2022. During the quarter, we strengthened our competence with Lisa Törsäter, new Chief Marketing Officer. Her main task is to introduce a marketing strategy for Freemelt's continued journey.
During the quarter, we also continued to update our strategy, where our ambition is clear – to become the leading global supplier of electron beam printers and related services.
Eminova Fondkommission AB
Biblioteksgatan 3, 3 tr.
114 46 Stockholm
Tel: +46 8 684 211 10
Latest update: 2023-05-10