Mats Holmberg, CEO of Transfer Group AB (publ), talks about the company's ongoing sales processes of the subsidiaries Sensec AB and Amigo Systems AB and the strategy going forward for the other subsidiaries. Furthermore, Mats gives an idea of the valuation the company expects in the sale of Sensec and what the opportunities for share dividends look like. Finally, the order flow in Transfer Group's subsidiaries and what the future looks like for Altum Security AB and Safe AB are discussed.
Can you briefly tell us about Transfer Group for those who are not familiar with the company?
Transfer Group is a Swedish security and technology group with a clear focus on value creation through specialized subsidiaries. Our strategy has focused over the past year on streamlining the group structure, streamlining operations and creating conditions for sustainable growth and shareholder value. Today, Transfer Group consists of, among others, four subsidiaries: Sensec AB, Altum Security AB, Amigo Safe SOC AB (under name change to Safe AB) and Amigo Systems AB.
You have communicated that Sensec and Amigo Systems are under sale, while Altum Security and Safe will be retained within the group. Can you tell us more about the strategic decision?
Yes, we are in two separate sales processes: one for the Sensec group, which includes Sensec AB and its subsidiaries Sensec Solutions AS, Sensec Academy AB and Mil Sec Sverige AB – and another for Amigo Systems AB.
Initially, Altum Security was also included in the Sensec sale, but we have decided to keep Altum within the group. This decision is based on several factors, but primarily on Altum's strong growth prospects and the clear synergies we see between Altum and Safe. Safe has a broad customer base, and through Altum we can offer a more comprehensive security offering with both technical and personnel solutions.
Our long-term strategy is therefore to develop Altum and Safe as Transfer Group's core business going forward. We will provide a clear operating strategy for our shareholders once the sales processes of Sensec and Amigo Systems are completed and we have worked on deeper cooperation between the companies.
How is the sale process of Sensec progressing? What valuation do you expect now that Altum has been excluded? Can shareholders expect dividends after a sale?
The sales process of the Sensec group is proceeding according to plan. We have had several serious dialogues where stakeholders have conducted due diligence and shown clear interest. Since we have a completed data room and proven documentation, we can act quickly when more parties get ready to conduct due diligence on Sensec.
Regarding valuation – since Altum is no longer part of the transaction, expectations are of course adjusted. Previously, we communicated a target of at least SEK 150 million, but with today's structure we are aiming for a valuation equivalent to approximately 7x EBITDA. As a reference, Sensec will achieve its budget of at least SEK 17 million in operating profit in the fall of 2025, which we announced on July 7. The EBITDA level is expected to be approximately SEK 18 million by the fall of 2025, as we have low depreciation for 2025.
We also see it as a priority to allocate a portion of the sale proceeds to dividends. Currently, the maximum distributable amount is SEK 42 million, and it is our goal to be able to distribute the entire amount to our shareholders, given the outcome of the transaction.
What does the future look like for Amigo Systems? You have previously announced a sale, but at the same time reported high costs. What measures have you taken? Will you recruit a new CEO?
Amigo Systems is a company with a strong technical platform and good growth potential. However, we believe that it can develop better under a different owner, which is why it is subject to an ongoing sale process.
Amigo Systems has had high costs during the year, primarily related to development resources and an inventory structure that has not been cost-effective. We have now implemented significant cost-saving measures – including by terminating a large part of the development resources and terminating agreements that have not generated clear business value.
Since our goal is to sell Amigo Systems soon, hopefully during Q4, we have chosen not to appoint a new CEO, but to continue to run the company within the framework of Transfer Group's overall management and cost control.
Would you like to tell us more about your recent loan?
We have raised a convertible financing of SEK 15 million at market terms, which gives us the financial resilience we need to execute the divestments of Sensec and Amigo Systems in a value-creating manner. The loan also allows us to act effectively in case of temporary needs during the process.
We will return with more details about conditions and structure and then further information will be available.
Previously, you have communicated more orders in both Amigo and Sensec. Has the order flow decreased, or have you changed your communication strategy?
Good question. The order flow remains active, but we have chosen to only communicate larger deals, to create a more focused and qualitative information provision to the market.
The smaller but regular deals – what we usually call "bread-and-butter" – continue to be ongoing, especially within Sensec. In fact, Sensec has already achieved its 2025 budget, which shows that the operational business is strong, even if it is not always visible in the news feed.
Would you like to say something about your future work with Altum Security and Safe, which you have decided to keep within the group?
We see Altum Security and Safe as the two core companies in Transfer Group's future structure. The decision to retain them is strategic and is based on their complementary competencies and the increased need for comprehensive security solutions.
Altum is strong in personal security services, risk assessment and operational protection, while Safe offers technically advanced security solutions, primarily in alarms, surveillance and digital infrastructure. Together they create a broad and scalable platform that we see great potential in further developing.
This fall, we will focus on deepening collaboration between the companies, streamlining operational processes, and exploring common customer segments where demand is strong. We believe this combination of technology and personal resources will be a clear competitive advantage in the market going forward.
As mentioned in question 2, we will assist with a clear operating strategy for our shareholders once the sales processes of Sensec and Amigo Systems are completed.
You have recently signed an agreement in East Africa regarding the Alerty app worth approximately SEK 1.8 million. How do you see the market potential there for the Altery app?
The Alerty app is an important part of our future commitment to tech-based security. The app enables rapid, local activation of protection resources via mobile, and there is a strong demand for this type of solution in parts of the world where traditional infrastructure is weak or inadequate.
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We have seen particularly strong interest from East Africa, where the population is young, connected and often dependent on mobile-based services, but where safety and personal security are still a major societal concern. In many countries, private security resources are more common than the police, and Alerty fits in well as a platform to connect people in need of help with the right actor in real time.
The market potential is significant where the security sector is both growing and under-digitalized. We envision business models that can be scaled through partnerships and where we grow through customers. We provide the technology platform and local players provide distribution and deployment.
An example of a customer we can grow with is Senca Solutions AS, which we recently signed an agreement with in East Africa. Senaca is the largest security company in East Africa with over 4,500 employees. Together with Senaca, we are discussing how Alerty can be integrated more broadly into their customer base.
What is your main focus right now and how do you plan to turn around trust in Transfer Group?p>
Our primary focus is to successfully complete the sale of the Sensec Group, while driving through a cost-effective sale of Amigo Systems. These two processes are central to streamlining our business and freeing up capital that can be distributed to shareholders and reinvested strategically.
In parallel, we continue to build a stable foundation for our future by focusing on Altum and Safe – two companies where we see both strong demand and clear growth potential.
We are fully aware that trust in Transfer Group has been challenged for a period of time. Our way of turning that around is to deliver on our word, by:
- Carry out divestments in a value-creating manner.
- Communicate clearly and transparently to the market.
- Show that we have a focused, long-term and sustainable business structure in our remaining operations.
When we do that – with concrete results – I am convinced that trust will return strongly.
We thank Mats Holmberg for the interview and wish him and the company every success in the future.
Disclaimer:
This is an interview that has been done on behalf of the company. Impala Nordic or people behind Impala Nordic own shares in the company at the time of the interview.
