- AVTECH Group's turnover for the third quarter of 2018 amounted to MSEK 3,1 (2,7).
- Operating profit before depreciation for the third quarter of 2018 was MSEK 1,0 (0,5) and for the nine-month period MSEK 1,5 (1,0). Net profit for the third quarter of 2018 amounted to MSEK -0,2 (-0,8) and for the nine-month period -2,0 (-3,2) or SEK -0,03 (-0,05) per share.
- Cash flow from operating activities for the third quarter of 2018 amounted to MSEK -0,1 (-1,0). The Group's cash and cash equivalents at the end of the period amounted to MSEK 16,6 (at the previous year's change 20,4). Increased market efforts of approximately 1,3 MSEK and continued supplementary product development of approximately 2,0 MSEK have affected liquidity during the nine-month period
- Equity at the end of the period amounted to MSEK 28,0 (at the previous year's end 30,0) or SEK 0,50 (0,53) per share. The Group's equity ratio was 95,9 (95,9) percent.
- The increased marketing efforts have involved participation in the fairs; "The 5th China Aviation NEW TECHNOLOGY Conference", "EMEA 2018 MRO & Flights Ops IT Conference in Amsterdam" and "The 2nd Connected Aircraft Conference in Dubai" and “Connected Aircraft eEnablement Conference 2018 in London”. A number of seminars and video conferences have also been conducted in cooperation with staff from the Met Office during this period. These activities have significantly increased the number of informed and potential customer companies. Although lead time, from insight to contract negotiation, usually is long, we look forward to a growing customer base in the coming 6-month period. The focus has been on introducing our now comprehensive product package, which means, among other things, that our customers can choose from several different supplier solutions via, data uplink or WiFi /Internet.
- At the Connected Aircraft eEnablement conference in London the 11th-12th September, AVTECH and Met Office (UK) jointly presented our worldwide unique 10K weather and the possibility to already today have access to this by using AVTECH’s products Aventus, SIGMA and proFLIGHT. The effect of using 10K weather was emphasized in the research, issued by Lufthansa Cargo and conducted by the University of Aachen. The research report shows clearly the practical positive benefits from using AVTECH’s Aventus product on a daily base. The presentation led to an increased interest and several new contacts were made among the attending airlines.
- During the period a first test version of AVTECH proFLIGHT iOS tablet app has been evaluated by approx. 20 pilots from various airlines. The app has been very positively perceived. Met Office 10K aviation weather makes a worldwide unique base which has been combined with AVTECH`s technology for processing and visualization of complex data for decision support. For the first time, pilots now have access to the world’s best high resolution weather, delivered in real time and presented in a user friendly manner.
- The dialogue with airlines within the Lufthansa Group, continues in a positive way. Lufthansa Mainline has indicated a heavy workload in the IT department which is responsible for the technical integration av the Aventus Nowcast system.
- As previously announced, AVTECH has, together with Norwegian Air Shuttle conducted an evaluation project involving most parts of the current product portfolio. During the period the cooperation has evolved into a conviction that AVTECH’s various products are expected to be included in the support system at Norwegian. Norwegian Air Shuttle has also expressed a great deal of interest in being a development customer. Contract negotiations have begun.
- As mentioned earlier, the cooperation project continues between Met Office, easyJet, and Gatwick Airport in London. Within the framework of cooperation, various solutions to improve the efficiency of the use of the airport have been discussed. The work continues with the aim of developing technical and financial models for launching a project in 2019. This is because the project partners have decided to postpone project launch. Another major operator has come to terms with a dedicated interest in AVTECH products and knowledge in operational efficiency between airports and airlines.
- On the 16th of August, it was communicated that AVTECH and Met Office (UK) have entered a 3-year cooperation agreement. Met Office shall deliver weather data from the unique 10K aviation weather forecast for AVTECH’s services and products. Under this new contract, AVTECH has exclusive access to a jointly developed API interface which enables AVTECH’s product users to receive the most detailed and accurate weather forecast available for commercial use. AVTECH has conducted a comprehensive study of the quality of various weather-related forecasts used in the aviation industry. More than 50 000 flights have been included in the analyzes. It is obvious that Met Office´s 10K-based weather grid, compared to the current 140K standard in aviation, shows over a 50% reduction of wind- and temperature error.
Events after the end of the period
- On the 5th of October, AVTECH announced a “Letter of Intent” (LoI) with Norwegian Airshuttle A/S, to implement Aventus AIRTM and Aventus NowcastTM. These services give the pilots access to weather data for the purpose of reducing fuel consumption. The LoI includes a mutual ambition to further develop the optimization solution for the flight’s climb and cruise phases.
- The board of AVTECH communicated a business update on 15th October, where it was announced that the board decided to increase the pace of development work for the Aventus products, as a Windows-based proFLIGHT app has been asked for. There is also an interest in customizing proFLIGHT products for other decision makers within an airline, not only the pilots. Some airlines have requested a system for optimizing the complete trajectory, from start to landing, as this gives the pilots an opportunity to choose the most economical level based on actual winds caused by for example jet streams. The recently launched proFLIGHT app, a decision support tool for pilots based on a visual presentation of the Aventus and SIGMA information, is for the moment under practical testing by approx. 100 pilots from over 10 airlines.
- The previously decided recruitments have been done. This means improved 24/7 support and front-end development capability. The reinforcements are made to equip us for an expected customer influx and increased focus on visualization of our products.
- The process of deploying SIGMA weather warning system for easyJet has begun.Having the Met Office contract as starting point for this fall’s campaigns, (”AVTECH Premium”, ”Aventus SIGMA” and ”AVTECH proFLIGHT”), AVTECH intends to raise the awareness about the company in the aviation industry, as well as increase the market contacts. Other marketing efforts will be done through, among other things;
- Recurring articles in industry media to describe Aventus Premium and Met Office 10K weather grid and how unique it is.
- Banners, adverts, posts as well as , updates in all AVTECH social media channels referring to those articles as well as customer testimonials from actual users.
- Continued attendance in conferences and running webinars.
For further information, please contact
Christer Fehrling, Managing Director, +46 (0) 8 544 104 80
Britt-Marie Lodenius, CFO, +46 (0) 8 544 104 80
or visit the company's website www.avtech.aero
AVTECH Sweden AB ( publ), organization number 556568-3108, has its registered office in the municipality of Stockholm.
Mailing address: Färögatan 33, 24thfloor, SE 164 51 KISTA, Sweden.
The company's B-share (short name AVT B) has been traded on NASDAQ OMX First North since February 2012. The company's A-share is not traded on any marketplace. Certified Adviser is at Redeye AB (www.redeye.se), Phone: +46 (0)8 545 01 330. For explanation of technical terms, see glossary on page 73 of the company's New Issue Prospectus 2011. The information in this press release is as AVTECH Sweden AB (publ ) is obliged to disclose under the EU Market Abuse Regulation and VpmL. The information was provided, through the contact of the above contact person, for publication on 18th October 2018 at 12.30 CET.