CLX Communications sees sales rise significantly in first half

CLX Communications issued its first half results for the six months through June on Friday, reporting a 36% improvement in net sales to SEK 1.86bn, with organic growth in local currency reaching 17%.

The cloud-based communications services operator said EBITDA rose to SEK 133.5m from SEK 120.1m, while EBITDA excluding items affecting comparability was SEK 162.3m, compared to SEK 154.9m, or SEK 3.05 per share.

Operational foreign exchange differences affected operating profit during the half by SEK 0.6m, compared to SEK 3.0m.

Basic and diluted earnings per share were SEK 0.71, up from SEK 0.63.

On the operational front in the second quarter, CLX noted that on 4 April it acquired all of the share capital in Vehicle Agency, based in Seattle, Washington.

The company specialises in technology and solutions in personalised message-based video and rich media communications solutions.

“The initial purchase consideration was $8m on a cash-free and debt-free basis,” the CLX board said.

“In addition, an earnout of $4m was paid in July.”

CLX said the acquisition was financed with cash reserves, with additional earnouts - capped at $18m - possibly being paid in the future.

Oscar Werner was appointed President and CEO of CLX Communications on 19 April, and would take over on 1 September.

The board said Johan Hedberg would take on a new role as head of business development, with a focus on North America.

“On 18 May, the annual general meeting resolved to introduce a long-term incentive program for senior executives and key employees within CLX, by issuing a maximum of 1,500,000 warrants with exercise after 3/4/5 years.

“If fully exercised, dilution will be approximately 2.8%.”