Board Change • May 20
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Kristina Ahlinder was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Board Change • Sep 02
Less than half of directors are independent There are 4 new directors who have joined the board in the last 3 years. Of these new board members, 1 was an independent director. The company's board is composed of: 4 new directors. 1 experienced director. 1 highly experienced director. 2 independent directors (3 non-independent directors). CEO & Director Lars Rambe is the most experienced director on the board, commencing their role in 2016. Independent Director Kristina Ahlinder was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of experienced directors. Reported Earnings • Aug 23
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: kr6.77m (up 63% from 2Q 2023). Net loss: kr1.63m (down kr1.94m from profit in 2Q 2023). New Risk • Jun 18
New major risk - Revenue and earnings growth Earnings have declined by 63% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (18% average weekly change). Earnings have declined by 63% per year over the past 5 years. Shareholders have been substantially diluted in the past year (198% increase in shares outstanding). Market cap is less than US$10m (kr9.67m market cap, or US$922.1k). Minor Risk Revenue is less than US$5m (kr18m revenue, or US$1.7m). New Risk • Jun 10
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (16% average weekly change). Shareholders have been substantially diluted in the past year (242% increase in shares outstanding). Market cap is less than US$10m (kr12.1m market cap, or US$1.15m). Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Revenue is less than US$5m (kr14m revenue, or US$1.3m). New Risk • Apr 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Swedish stocks, typically moving 9.8% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Shareholders have been substantially diluted in the past year (79% increase in shares outstanding). Market cap is less than US$10m (kr7.29m market cap, or US$684.4k). Minor Risks Share price has been volatile over the past 3 months (9.8% average weekly change). Revenue is less than US$5m (kr14m revenue, or US$1.3m). Announcement • Jan 25
Hoi Publishing AB (NGM:HOI B) signed an agreement to acquire EkstrÖM & Garay Ab from Cqa Ab for SEK 3.4 million. Hoi Publishing AB (NGM:HOI B) signed an agreement to acquire EkstrÖM & Garay Ab from Cqa Ab for SEK 3.4 million on January 23, 2024. The purchase price is partly paid with SEK 0.5 million in cash and through 4 million B shares in the Hoi Publishing AB (NGM:HOI B) which are proposed to be issued to the seller CQA AB through a directed new issue, which is ultimately decided by the shareholders at an extraordinary general meeting that will be announced separately. The additional purchase price is to be paid on the last March of the year following the fiscal year in which all Swedish companies in the Hoi Group collectively show a positive result for the first time, but no earlier than March 31, 2027. The payment will then take place partly with SEK 0.5 million in cash and partly through 1 million B shares in the Company which are proposed to be issued to the sellers through a directed new issue. Cqa Ab also the subscriber in the set-off issue, has, with customary exceptions, undertaken not to sell, or in any other way transfer, the shares issued in the set-off issue during a period of 24 months from 1 March 2024.The deal's financing has been secured through loans of at least SEK 2.0 million, including refinancing of older existing loans. The loan financing will at least be matched through a planned rights issue, to be presented later, which further strengthens the Company's financial position. EkstrÖM & Garay for the year 2023 has turnover of approximately SEK 15 million with a loss of approximately SEK 0.25 million. The completion of the acquisition is subject to approval of Hoi shareholders at an extraordinary general meeting. The transaction is expected to be completed on March 1, 2024. Reported Earnings • Nov 25
Third quarter 2023 earnings released Third quarter 2023 results: kr0.064 loss per share. Net loss: kr973.0k (flat on 3Q 2022). New Risk • Sep 27
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 69% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-kr7.8m free cash flow). Share price has been highly volatile over the past 3 months (15% average weekly change). Shareholders have been substantially diluted in the past year (69% increase in shares outstanding). Market cap is less than US$10m (kr11.4m market cap, or US$1.03m). Minor Risk Revenue is less than US$5m (kr12m revenue, or US$1.1m). Reported Earnings • Aug 23
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: kr4.15m (up 55% from 2Q 2022). Net income: kr314.0k (up kr1.25m from 2Q 2022). Profit margin: 7.6% (up from net loss in 2Q 2022). The move to profitability was driven by higher revenue. Reported Earnings • May 08
Full year 2022 earnings released Full year 2022 results: Revenue: kr11.0m (up 2.2% from FY 2021). Net loss: kr3.85m (down kr4.11m from profit in FY 2021). 