Seamless Distribution Systems AB

Seamless Distribution Systems AB (SDS) announced a breach of one of its financial covenants, as its liquid assets were 2.9 MSEK, below the required 10 MSEK as of December 31, 2024. Despite this, SDS exceeded its 2024 sales target by achieving 9.0 MUSD, surpassing the goal by 1.0 MUSD. The company plans to strengthen its cash position in early 2025 by opting for a lower interest payment in February and is discussing a short-term overdraft facility with bondholders. SDS is a Swedish software company specializing in mobile payment services, with operations in multiple countries and handling over 15 billion transactions annually. Its shares are listed on the Nordic Growth Market.

SDS has renegotiated its bond loan, allowing it to pay a reduced interest amount on four occasions during the bond's term. On February 5, 2025, SDS will pay approximately 50% of the regular interest, reducing the rate from 9% to 5%, with the remaining 6% capitalized and added to the bond, increasing its value from SEK 231.5 million to SEK 235.0 million. This adjustment aligns with the renegotiated terms dated October 17, 2024. In 2024, SDS exceeded its interim sales target by USD 1.0 million, achieving USD 9.0 million instead of the planned USD 8.0 million. Despite this success, SDS aims to strengthen its cash position in early 2025, using the lower interest payment option to build a stable cash reserve starting March 2025. SDS is a Swedish international software company specializing in mobile payment services, with operations in multiple countries and a significant global reach. Its shares are listed on the Nordic Growth Market.

Seamless Distribution Systems AB (SDS) announced that on the last day of 2024, it signed a SEK 5.2 million contract to migrate from its Paymobile platform to its ERS platform with a major telecom operator in Tunisia. This marks the completion of all migrations from the eServGlobal platform, acquired in 2019, to SDS's core system, aligning with the company's strategy over the past five years. The contract contributes to SDS closing 2024 with USD 9.0 million in new orders, exceeding its target by USD 1.0 million. CEO Eddy Cojulun expressed satisfaction with the year's achievements and optimism for 2025. SDS is an international software company specializing in mobile payment services, with a presence in several countries and handling over 15 billion transactions annually. Its shares are listed on the Nordic Growth Market's Nordic SME.

SDS has signed a significant contract worth SEK 6.5 million with an existing customer in Bangladesh to lead a transformation project for a retailer's mobile application. The project will focus on enhancing the app's UI/UX and backend technology to improve user experience and operational efficiency. The first phase aims to improve the reseller experience with better user retention, innovative and responsive design, and simplified navigation. Future enhancements will focus on performance and scalability to maintain the app's market competitiveness. The revenue from this contract will be recognized in the first half of 2025. SDS is a Swedish software company specializing in mobile payment services and handles a large volume of transactions globally. SDS is listed on the Nordic SME at the Nordic Growth Market.

SDS has announced a SEK 16.8 million order with an operator in Sudan, consisting of SEK 6.2 million in new sales and SEK 10.6 million in support over four years. The agreement includes the deployment of SDS's Retail Value Management suite, aimed at digitalizing the operator's sales and distribution processes. The new sales revenue will be recorded in the fourth quarter of 2024, with support revenue spread over the following four years. SDS is a Swedish software company specializing in mobile payment services and operates in multiple countries, handling over 15 billion transactions annually. Its shares are listed on the Nordic Growth Market.

Seamless Distribution Systems AB (SDS) has signed a SEK 7.6 million migration contract with an Iraqi operator, transitioning from its Paymobile platform to its standard ERS platform. This contract marks a significant step in SDS's growth and strengthens its position in the global telecommunications industry. The migration from the eServGlobal platform, acquired in 2019, aligns with SDS's strategy over the past five years and aims to enhance operational efficiency for the customer. Revenue from the project will be recognized in 2024 and 2025. SDS is a Swedish software company specializing in mobile payment services, with solutions implemented globally. The company is listed on the Nordic SME at the Nordic Growth Market.

Seamless Distribution Systems (SDS) has received a SEK 6.0 million order from South Africa's largest mobile operator to implement its Inventory Distribution Management (IDM) system. This system aims to enhance supply chain operations by providing real-time inventory tracking and improved forecasting, ultimately driving efficiency and cost savings. The partnership reflects SDS's leadership in the telecommunications sector, with the revenue from the order expected in the fourth quarter. SDS is a Swedish software company specializing in mobile payment services, with a significant global presence and handling over 15 billion transactions annually.

Seamless Distribution Systems AB (SDS) has secured a SEK 3.0 million order from a leading mobile operator in Botswana for its Smart "Sales and Distribution" (S&D) product. This marks the first order from this new customer and aligns with SDS's strategy to focus on profitable projects with controlled risk, contributing to recurring annual revenue. The order includes SEK 1.8 million for installation revenue, to be recognized in the fourth quarter, and SEK 1.2 million in annual recurring revenue, recognized quarterly. SDS, a Swedish international software company, specializes in mobile payment services and has a global presence with approximately 267 employees across various countries. SDS processes over 15 billion transactions annually, serving more than 1100 million consumers globally. The company is listed on the Nordic SME at the Nordic Growth Market.

SDS has communicated an update to its three-year plan and financial targets, focusing on creating shareholder value through disciplined growth, margin, and cash flow generation. The company aims for a compound annual growth rate (CAGR) of 6-11% in revenue from 2025 to 2027, excluding minimal contributions from the discontinued SDD segment. SDS plans to expand sales with existing customers and enter new markets, including Latin America, while maintaining at least 60% of revenue from recurring sources. The company targets new orders exceeding 8 MUSD in 2024 and anticipates sustainable EBITDA margins of 30-40%, despite potential dilution from joint ventures in Latin America. SDS has extended its bond financing until 2027 and raised 25 MSEK in new equity, stabilizing its financial platform and reducing interest costs. The company expects to generate positive operating free cash flows with a CAGR of 20-25%, aiming to reduce net debt from 209 MSEK to 100 MSEK by 2027. Despite a soft Q3 revenue, SDS is on track to meet or exceed its 2024 plan, having secured 6 MUSD in new orders and aiming for 9 MUSD. CEO Eddy Cojulun expressed commitment to right-scoping, cost control, and cash generation, thanking stakeholders for their support. SDS is a Swedish software company specializing in mobile payment services, with a global presence and a significant role in telecom sales. Its shares are listed on the Nordic Growth Market.

Vid en extra bolagsstämma i Seamless Distribution Systems AB den 27 september 2024 beslutades om en riktad emission av högst 357 147 units, där varje unit består av tio aktier och en teckningsoption av serie TO24. Teckningskursen per unit är 70 kronor, vilket innebär en premie på 3,85 % jämfört med den volymviktade genomsnittskursen för bolagets aktie under en tidigare period. En TO24-option ger rätt att teckna en ny aktie för 9 kronor under 2025. Emissionen kan öka aktiekapitalet med upp till 392 861,70 kronor och medföra en utspädning på cirka 25,4 %. Rätten att teckna units tillkommer vissa namngivna personer och externa investerare, med avvikelse från aktieägarnas företrädesrätt, på grund av bolagets behov av snabb kapitalanskaffning för att uppfylla villkor med obligationsinnehavare. Det bedömdes att en riktad emission är mer fördelaktig än en företrädesemission på grund av tids- och kostnadseffektivitet. Tecknade aktier kan betalas kontant eller genom kvittning av vissa fordringar på bolaget. Protokoll från stämman kommer att publiceras på bolagets hemsida. För mer information kontakta Martin Schedin, CFO på Seamless Distribution Systems. SDS är ett svenskt mjukvaruföretag specialiserat på mobila betaltjänster och har cirka 267 anställda globalt. SDS aktie är noterad på Nordic SME.