- We have signed contracts for the orders in the equivalent of about 3 MEUR for delivery in 20
- We expect revenues of 4 MEUR and an estimated profit margin of apprx. 10% in 2016, which is an increase from 2015 by almost 50%
- We help our customers to reduce their energy purchases by 50- 70%
- Our ext strategy is to be listed on NGM´s Nordic MTF already this summer
Our investment offer:
- Share price: 8 SEK /Share (0,86 Euro)
- New shares: 1 250 000
- 2,5 MEUR (pre-money valuation)
The issue is guaranteed to 750 000 EUR by a guarantee consortium
The problem this product solves
IQS Energi Komfort has made more than 10 000 heat pump installations in Stockholm/Mälardalen area since the company was founded in 1996. For a number of years, Energy Comfort has focused on real estate and condominium associations, with great interest in energy saving and environmental profile. This has led to proposals of about 10 MEUR and a large number of contacts, reference objects and satisfied customers with lower energy costs in their properties.
The company has already signed various orders for the equivalent of 3 MEUR for 2016 to larger premise and is increasing sales with +50% during 2016.
How the product solves it
Energi Komfort helps its customers to reduce their energy consumption by installing geothermal heating systems, solar electricity, exhaust air recovery, and a combination of these. Our customers save up to 70% of their energy consumption, and we help them to realize their savings potential by continuously monitoring and controlling the plant.
IQS Energi Komfort AB will be the only listed company providing installations, service and monitoring of heat pump installations. This will confirm our long term commitment towards our customers.
We have about 20 years experience in heat pump installations in all types of buildings. Our product range from IVT (Bosch) is also one of the widest. Together with our expertise we can always guarantee reliable heat pump installations that reduce heating costs by up to 70 percent for our customers
Product use cases
The company provides products and services to business villa and Real Estate (commercial real estate and housing associations), as well as service of existing installations. The products are sold and installed heat pumps, from simple air / air devices to larger geothermal plants, exhaust air recovery systems, photovoltaic systems and corresponding to reduce energy consumption in buildings.
We focus on the Stockholm/Mälardalen region. Swedish market for heat pumps is estimated at 6.5 billion. The market for commercial real estate has a large market potential, 41 TWh, of which 80% is heating. Nearly 60% of energy consumption for housing is used for heating and hot water where geothermal energy is clearly the best option. The market value is approximately 1,8 billion EUR.
Our goal each year is to move the corresponding 25-50 estate customers from district heating to geothermal heating which gives a yearly turnover of about 2.5 to 10 million per year in new installations.
The market is relatively fragmented with many smaller players. The profile of the competitors typically represents a smaller plumber that has grown a little larger, up to 5-20 people. Several competitors have few or no employees, which of course is a big risk for customers. These companies do not usually conduct any active coordinated marketing effort.
Unique differentiator from competitors
Energi Komfort offers a great dedication, high quality and long-term service, whether it relates to the warranty issues or injuries. We serve as a strong and well-organized supplier for our customers. Our aim is to ensure a safe and long-term operation of the facility.
Having in mind that the equipment should last for 10-20 years or more it should be of vital importance that the customer should be able to turn to the company for many years ahead with potential issues. The listning makes IQS Energi Komfort unique and reliable in this matter.
Company revenue streams
We are responsible for the entire value chain from marketing, purchasing and sales to installation and after service of energy-saving geothermal heating and cooling equipment. Therefore, we have multiple revenue streams and earn money on sales and installations of equipment. Another revenue stream comes from after service of the equipment what, additionally, contributes to operating efficiency of the plant and its remote monitoring.
Energi Komfort sells and markets its products and services with the help of its own sales force.
- 2012: due to the changing market Danske Bank conveyed the business to Ampliato.
- 2015: the company’s revenue was 26 MSEK and a negative profit of 3 MSEK with a higher share coming from property.
- 2016: The company signed an agreement for the equivalent of about 30 MEUR for delivery.
- 2016: Sales increased by + 50% against the previous year and the company is now profitable.
Next key objectives
- IQS Energi Komfort will contine its growth through aggressive marketing in the property segment
- We intend to acquire a smaller company in the industry with sales of approximately 20 MSEK, which are located to the south of Stockholm. The acquisition provides access to a customer base, expertise and geographic spread.
- Vision for 2017 is to increase the revenue to 60-80 MSEK with the opportunity to increase the revenue to 75-100 MSEK through organic growth and through acuisitions.
During 2013-2015 the business has raised capital through new share issues amounting to a total of 10.7 million. In January 2016 Energy Komfort carried out an additional rights issue of 6.7 million, of which 4,3 million was supported by offsetting loans. This has significantly strengthened the balance sheet. The Board believes that the current issue is a final step in the so-called turnaround process the company has undergone. The current fundraising is also connected with for forward-looking investments in connection with the listing on the Nordic MTF. Please, find more information in investment Memorandum
We have a number of partnerships that add value to our business. Among others, we work with:
- IVT which supplies us with a wide range of heat pumps;
- Jeff Electronics which provides equipment for remote monitoring of real estate pumps;
- EasyServ which delivers equipment for remote monitoring of residential heat pumps.
Use of Funds
In 2018, Energi Komfort has a great potential to position itself as the leading company in industry in Sweden. For this we will continue the efforts to cultivate the market and manage the possible acquisition:
- 80% of the funds will be used for customer acquisition and marketing;
- 20% of the funds will be used to strengthen the balance sheet.
We will be listed on NGM Nordic MTF this summer what will give us additional attention. Additionally, we will deliver the orders in the equivalent of about 3 MEUR what will substantially increase our sales from the previous years.