The investment case aims to show significant value drivers for the INVISIO share. In recent years the company has made considerable investments in both the customer offer and its sales organization. The investments have resulted in a new offer – the Intercom system – and sales offices in the USA, France and Italy.
The sales target for INVISIO is average annual growth of 20 per cent. The target for the operating margin is that it should exceed 15 per cent.
Steady growth but unevenly distributed order inflow
INVISIO’s market is characterized by large procurements at irregular intervals. Both order intake and sales can fluctuate substantially between quarters and the company’s development should therefore be evaluated in a longer time perspective than individual quarters.
Financial development and investments in R&D
High scalability and strong financial position
- All volume production takes place with the help of contract manufacturers, which enables scalability, flexibility and full focus on R&D and sales.
- Cash flow from operating activities before changes in working capital amounted to SEK 96.7 million (140.0).
- At the close of the year the Group had no loans and the equity/assets ratio was 73 per cent. After the acquisition, the interest-bearing debt amounts to about SEK 100 million.
Strong market position in a growing niche market
Market leading position and a portfolio of multi-year framework agreements and programs
- INVISIO’s market leadership was further strengthened by the acquisition of Racal Acoustics.
- INVISIO has a portfolio of framework agreements and programs that run for 3–7 years. The customers include the US Department of Defense, several NATO armies and the Swedish Police. The framework agreements and programs enable recurrent sales.
Growth strategy and corporate culture
Strong corporate culture
- INVISIO’s corporate culture is strong. Clear targets and incentive programs that include all employees help to motivate and strengthen employees.
- The company’s staff turnover is low and was 3 per cent in 2020.
- The company has an experienced leadership with many years of cooperation behind it. The President/CEO, the SVP Global Sales & Marketing and the SVP R&D have each worked for INVISIO for more than 13 years.