Risk Intelligence

The Client, a specialist in the marine transportation of liquid chemicals and vegetable oils, operates over 70 chemical tankers with varying trading patterns. They have chosen the Risk Intelligence System to access real-time security intelligence for better operational planning and risk reduction. Hans Tino Hansen, CEO of Risk Intelligence, expressed pleasure in welcoming the new client, highlighting the system's quality. The system's license will affect annual recurring revenue starting in Q2 2025. Risk Intelligence, headquartered in Denmark with offices in Singapore and North America, provides global security threat analysis through its digital system. The system offers insights into security risks, including insurgency and piracy, enabling real-time risk evaluation. Risk Intelligence is listed on the Spotlight Stock Exchange in Stockholm.

The Client is offering global multidisciplinary professional services, including risk management, with intelligence data from their Risk Intelligence System now accessible via an API for analysis and planning. Initially, the Client had a paid API development license to integrate this data into their platform. CEO Hans Tino Hansen expressed satisfaction in welcoming the new client, highlighting the 24/7 intelligence feed that enhances maritime risk analysis. He noted the rising demand for API integration from large corporate and government clients as a growth driver, anticipating more agreements by 2025. The API license will affect annual recurring revenue starting Q1 2025. Risk Intelligence provides global security threat and risk analysis through a cloud-based system and consulting services, serving primarily maritime clients who operate over 16% of the global merchant fleet. The company, headquartered in Denmark with offices in Singapore and North America, has been listed on the Stockholm Spotlight Stock Exchange since 2018. Their digital solution, developed with industry insights, offers comprehensive security risk analysis for various threats, enabling real-time risk evaluation and minimization. Risk Intelligence uses press releases to announce new client deals, though not all business deals are disclosed this way.

The financial report highlights significant growth for the company, with total revenue increasing by 30% for the fiscal year and 31% in Q4. Annual Recurring Revenue (ARR) grew by 21% for the year. EBITDA saw a 56% increase for 2024 and a 35% rise in Q4. Cash flow from ordinary activities improved by 52% over the year. CEO Hans Tino Hansen emphasized the company's strategic focus on maintaining a significant spread between revenue growth and cost increase, achieving a 23% spread in 2024 due to a 30% rise in revenue and a 7% rise in costs. This is seen as crucial for meeting growth and profitability goals. The Q4 EBITDA was impacted by extraordinary restructuring and one-time costs, which are expected to benefit the 2025 EBITDA. Financial costs in Q4 also included one-time expenses. System ARR grew by 20% in Q4 compared to the previous year, influenced by new sales, upsells, and license churns related to client mergers. Cash flow from operations turned positive in 2024, showing an improvement of DKK 4,267K from the previous year. A recent refinancing package is expected to reduce financial costs and further improve cash flow in 2025. For 2025, the company is launching a new commercial strategy with a segmented approach targeting five distinct client groups: Commercial maritime, Energy, Insurance, Government & Defence, and Land-based logistics. The aim is to drive growth, attract new clients, and enhance client satisfaction. Financial metrics for 2024 showed improvements in gross margin and net cash flow, while earnings per share increased by 69%. The company provided guidance for 2025, aiming for ARR growth between 15-30%, a positive EBITDA, a net result of zero, and positive net cash flow. A live presentation of the report is scheduled for March 3rd, and further information is available through the company's website and social media channels.

The company has secured a roll-over of existing long-term loans and additional refinancing totaling approximately DKK 11.6 million from board members, shareholders, and third parties. These loans have a 12% annual interest rate, with no instalments during 2025 and interest paid quarterly or monthly. Most loans will follow an annuity schedule in 2026 and 2027, with full repayment by the end of 2027. The long-term loan with EIFO and two private loans will continue with the same repayment plan, concluding in summer 2026. CEO Hans Tino Hansen states that this refinancing reduces the need for further refinancing and perceived risk to shareholders, with no plans for capital increases as positive cash flow is expected in 2025. For more information, contact Hans Tino Hansen or Jens Krøis.

Jim Pascoe is leaving Risk Intelligence after nearly seven years to pursue a new career opportunity. He significantly contributed to the success of the commercial department, helping achieve milestones in client acquisition and revenue growth. Lennard Kunde has been promoted to Director and Head of Commercial Operations, bringing extensive experience in business development and sales. He will start his new role on April 1, 2025, and is expected to offer innovative ideas and strategic direction. The company is optimistic about future growth under Lennard's leadership. CEO Hans Tino Hansen expresses gratitude to Jim and welcomes Lennard, inviting stakeholders to support this transition. For more information, contact details are provided.