Q4 2019

Q4 Interim and Year-End Report 1 January – 31 December 2019

26 February 2020

Risk Intelligence A/S (“Risk Intelligence” or "Company") hereby publishes the Q4 Interim and Year-End Report for the period January - December 2019. The report is available on the Company's website (www.riskintelligence.eu). 

Highlights

  • Risk Intelligence had a growth in revenue of 28% in 2019 to 14,2m DKK
  • Risk Intelligence System recurring revenue amounted to 79% of total revenue in 2019 with a renewal rate of 99.3%
  • Known revenue for 2020 as of 1 January constituted 13.2m DKK.
  • The Company launched LandRisk on 1 October.
  • The Asia office in Singapore and Risk Intelligence Singapore Pte Ltd was launched in October 2019
  • Negative result for 2019 as planned and communicated at the IPO in 2018.
  • All planned milestones communicated at the IPO in 2018 has been delivered up to now.

Reporting period January 2019 – December 2019

  • Revenue: TDKK 14,221 (11,123) +28%
  • Earnings before interest, taxes, depreciation and amortization (EBITDA): TDKK –10,177 (-5,958)
  • Earnings before taxes (EBT): TDKK -12,331 (-7,415)
  • Profit/loss for the period: TDKK -9,613 (-5,879)
  • Earnings per share: DKK -1.14 (-0.77)

Reporting period Q4: October 2019 – December 2019

  • Revenue: TDKK 4,796 (4,536) +6%
  • Earnings before interest, taxes, depreciation and amortization (EBITDA): TDKK -3,120 (-1,465)
  • Earnings before taxes (EBT): TDKK -4,107 (-1,919)
  • Profit/loss for the period: TDKK -3,198 (-1,595)
  • Earnings per share: DKK -0.38 (-0.21)

CEO statement 

“During Q4 2019 focus has been on launching the most important strategic objectives in our growth plan communicated at the IPO in 2018 and the goals with the most significant growth potential, the development and launch of LandRisk and the launch of our regional Asia office in Singapore.

While these are significant milestones in our growth plan, they are also major cost items in our budget, which together with the development of our organisation during 2019 results in a negative result. A negative result was expected and communicated since the IPO in 2018. Importantly, these costs now form the basis for our continued growth and the large development costs for LandRisk are not recurring.  As such we are entering 2020 with a full product suite in the Risk Intelligence System and with an organisation ready to deliver growth and an expected positive EBITDA for the full year as promised. 

With 28% growth for the year and 6% for the quarter we have delivered growth in revenue for the fourth consecutive quarter in 2019. 

Our Growth Plan target to double our original/maritime business by 2020 still holds. With 13.2M DKK in known revenue for 2020 as per 1 January 2020, if the current 2019-growth rate of 28% is extrapolated into 2020 we are already on track to deliver on the growth target with the full effect of our Asia presence. Finally, we expect to see an increase in Partner sales during 2020 primarily on the maritime side. In addition to the original revenue comes the revenue generated from LandRisk. 

With a more balanced revenue to cost and investment ratio during 2020 we need less capital reserves in 2020 than in 2019. Due to the uneven distribution of our revenues across the year and the even distribution of our costs, the management of Risk Intelligence makes sure to have the company fully funded at any time according to plans.

Furthermore, during the last quarter of 2019 Risk Intelligence continued to sign agreements with new as well as existing clients. In the beginning of January 2020, we also secured our first subscription agreement for LandRisk. The Singapore office secured its first two clients during Q4 and has been developing a promising portfolio of potential clients in Asia that will turn into business during 2020. The Singapore office is furthermore offering clients in Asia access to client relations, duty watch officers and intelligence analysts in their local operating hours. 

We have delivered on all the planned milestones communicated at our IPO and I am looking forward to continuing to deliver on the plan to achieve a positive EBITDA for the full year of 2020.”

Hans Tino Hansen, CEO

For further information about Risk Intelligence, please contact:

Hans Tino Hansen, CEO
Jens Krøis, CFO

Telephone: +45 7026 6230
E-mail: 
investor@riskintelligence.eu

Web page and social media:

Web page: www.riskintelligence.eu
Twitter: www.twitter.com/riskstaff
LinkedIn: www.linkedin.com/company/risk-intelligence
Facebook: www.facebook.com/riskstaff

Risk Intelligence A/S was founded in 2001 by Hans Tino Hansen. The company has evolved to become a prominent company in security risk management by delivering threat and risk assessments worldwide. Risk Intelligence operates and assists customers and partners from headquarters located north of Copenhagen, the office in Singapore as well as through representatives in Europe, Asia and North America. The business has been designed with international scalability in mind and the company is globally regarded as an expert in its field. Risk Intelligence provides the ‘Risk Intelligence System (MaRisk + PortRisk + LandRisk)’ which is a digital platform that allows clients to monitor global security risks and enables them to plan and implement missions in risk areas. Risk Intelligence is listed on the Spotlight Stock market [RISK].

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