ARMOUR Residential REIT, Inc. Price & Performance (ARR)

And we did that. And Aruba Tech actually raised EUR41 million in gross proceeds. From that share ratio. Leaving the company in a net cash position. I'll come back to the cash position a little bit later a cost efficiency program going during the whole of Q4. And as part of that cost efficiency program, The headcount has been reduced by some 25 full time equivalents across the entire organization. Approximately 70%. Also happy to inform that we are in advanced negotiations to divest both Arribatek Marine and Arribatek Hospice Hospitality And lastly, also very happy to share with you that our sales for Q4 is up 33% and compared to the same quarter last year. And is the best quarter in the history of the company. So we are very satisfied with that. Yes, revenue as I said, €151,000,000 for the quarter. Recurring revenue now accounts for 43% of the total revenue in the company. And at €63,000,000 it is up 17%. In absolute terms compared to a year ago. We have talked about EBITDA, the adjusted EBITDA at €2,100,000 that gives us the same adjusted EBITDA margin of 1.4 Norway accounts for 71% of the total revenue of the group.

And in absolute numbers that is SEK 107,000,000 for the quarter.

Comparing to SEK 96,000,000 a year ago.

So up 11% compared to a year ago. Continental Europe, including Sweden, is 14% of the total. And it's a reduction of 20% compared to where we were a year ago. Lastly, UK and U. S. Revenue of €22,000,000 this quarter. Up 5% compared to a year ago and accounts for 15 total revenue for the group. So to the shareholders meeting arranged on second December last year. There it was decided that the company would issue $350,000,000 new shares at the price of 0.1 drroner per share. Additionally, it was decided to issue 60,000,000 new shares to the members of the Board of Directors at the same price. The the meeting also decided to issue 150,200,000.0 warrants to the underwriters of the share issue. And lastly, the meeting also decided to issue 60,000,000 warrants to the Board of Directors. Both those warrants issues have a duration of twelve months. So the actual share issue ended or was undertaken in January. And the company received the proceeds from that share issue. On February 6. And received at that time 41,000,000 gross proceeds The warrants on the zero point three and zero point four above will expire, as I said, in twelve months.

And if all the warrants are exercised, an additional $210,000,000 shares will be issued with a gross proceeds for the company of NOK 21,000,000. That means that as of today, our Revotay Group has 479,600,000.0 shares outstanding and on a fully diluted basis, there will be $689,800,000.0 shares I'll standing in Aribotec. If all the awards are being issued. So that is a fully on a fully diluted basis, 689,800,000.0 shares outstanding.

For if you look at the pro form a liquidity after the share issue, we have made a simple chart here showing what our cash balance was at the end of last year. It was 23,000,000 Norwegian krona. We still had 3,000,000 Norwegian krona in unused unutilized credits from our bank Then we received the net proceeds from the from the share issue at SEK 40,000,000. So that, of course, increased our bank balance significantly. And we had an agreement with our main bank that we would repay part of our credit facility. With 15,000,000 Norwegian krona, which means that at the end of all these events, we had a little bit more than 50 or around €51,000,000 in total liquidity available to us as a company. As I said, we have had a lot of things going on in the company in Q4. The headcount reduction by 25 employees, I mentioned earlier, We also have made changes so that most of the back office and support activities is removed from corporate level and will be performed in the regions going forward. Also, as I said, corporate staff reduced by approximately 70%. We have simplified the legal organization and this will [indiscernible] facilitate better coordination, easier coordination across all business units and also improve our efficiency.

Another very important [indiscernible] our forecasting capabilities and this should enable us to make quicker adjustments when we see changes in the market ahead of us. And that is important for us.

Lastly, discretionary expenses has been reduced across the board in a significant amount. Total restructuring costs that we have taken into the 2024 account is NOK 10,000,000. Recognized in Q4, and we'll have real impact on our Q1 and Q2 twenty twenty five performance. These measures are expected to contribute to improved margins. Positive cash flow and improve the visibility and full effect of the cost and efficiency measures will be evident during 2025.

This is a slide that we have been used Out on the right hand side, the tall bar there shows a total revenue in Q4. Segmented by business area. So at the bottom, you can see that the business services 74,000,000 NOK in revenue for fourth quarter. And if you look at the same quarter a year ago, that was the revenue was €70,000,000 So it's a improvement from A year ago.

Also, we can see that flat from [indiscernible] but a solid improvement compared to previous quarter. Also, look at cloud. We while a year ago EUR 31,000,000. So it's a significant increase in revenue.

We have also on the top you can look at our recurring portion of our total [indiscernible] 4329% of our revenue is created outside of Norway. Now to sales. During Q4, we signed a total of six ten contracts for a total value of $285,000,000 That is up 33% compared to Q4 in 2023. And we are very satisfied with the sales performance at the end of last year. Should also mention that EA and BPM signed a total of 94 new contracts for a total value of 91,000,000 And in there, the large two contracts both for oil and gas companies. One of them with a 23,000,000 NOK total value.

And the other one with $11,000,000 of total value.

Similarly, Business Services also signed the two larger contracts, one for a research institute based in Continental Europe for Unit four installation of 21,000,000 Norwegian drone. And another contract signed for a global engineering firm where we will do a unit four rollout in UK and Ireland.

For approximately 15,000,000 So a lot of very good contracts for us secured. And that we will be working through this contract during 2025.

Then to cash flow development during the quarter. Net cash from operations for Q4 was plus or positive SEK 14,000,000 and of course the main contributor there is improvement in working capital positive change of $26,000,000 and that compensates for the operating loss of $15,000,000 before impairment, depreciation and amortization. Cash from financing was just a little bit more than negative 7,400,000.0. Dollars where the main items there is lease payments and repayment of some bunkerjaws. Lastly, we have cash flow from investing activities. Negative $1,700,000 and that is all related to capitalized software development costs. So that means we ended the quarter with €23,000,000 in cash and cash equivalents at the end of the quarter. And $11,700,000 of that is restricted cash. So to the balance sheet.

We have a total balance sheet at NOK $442,000,000 drawn at the end of [indiscernible] And that is compares to NOK $5.00 1,000,000 at the end of 2023.

You can see we are taking an impairment for hospitality equal to NOK22 million in the core four. And also we can see that cash here is down €16,000,000 compared to year end 2020 However, cash improved, as I said earlier, by €5,000,000 compared to third quarter in 2024.

If you look at the [indiscernible] at the end of 2024, it's a hundred and 89,000,000 and that gives us equity ratio of some 43%.

A little bit lower than that. So to outlook. Our initiatives both within cost reduction and efficiency improvement. We expect that to definitely lift the margins during 2025. We expect that the demand for cloud services will continue to drive growth for cloud and managed IT services. We have seen that the demand for for EN BPM services and solutions. Is good, both in The Nordics and now also in The UK. After what we have to call two slow quarters. Cloud migrations and related digital transformation projects is expected to see solid growth in 2025. And lastly, I would like to mention that our multi partnership strategy will continue We have won our first Orbis contracts both in Nordics and in UK. And in addition, we have, during Q4, landed our first SAP project. So we are very happy to see that our multi partnership strategy actually starts bearing fruit. That is what I had and I will now give you a couple of minutes to articulate questions if there should be any. Thank you. Okay. So we are back again. And I have received one question here related to hospitality. Basically, the question is, how come we have so large write down on the goodwill of hospitality.

For Q4.

And that is really the financial performance over time. As and the goodwill that we associated with that acquisition had to be taken down in order to reflect the actual performance of hospitality. So that is the background of the Let me see if there's anything else.

Okay. So we haven't received any further questions. So with that, I would like to thank you all for attending.

And I wish you good day. Thank you so much.