Sitowise Group

Sitowise's Q1 interim report this morning did not offer any major surprises. The bottom line was slightly below expectations, but this was due to write-downs of long-suspended projects in the Buildings business. Without these write-downs, our estimates would have been slightly exceeded.

We expect the company's revenue to have remained flat year-on-year, with stable adjusted EBITA.

On Tuesday, Sitowise announced its new mid-term strategic priorities and financial targets, as well as its new purpose and vision. These updates were expected, as the new management, which recently took office, aims to return the company to a path of profitable growth. In our estimation, the updated strategy is leading the company in the right direction, and the revised targets are more realistic than before. The release does not cause changes to our estimates or our view.

While the agreement strengthens our confidence that the company has the banks' support to weather a challenging cycle, the balance sheet still plays a significant role in the stock's risk profile.

Sitowise's Q4 bottom line was in line with our expectations, and the long-awaited turnaround began to take its first steps. Cash flow at the end of the year was much better than we expected, which was encouraging given the tight balance sheet situation.

Sitowise reported earnings lines this morning that were in line with our expectations. However, the company's return to revenue growth surpassed our expectations due to Infra's robust performance and the deceleration of the sharp sales decline in Sweden.