Five Quick Questions with Transfer Group AB (publ)
Interview with CEO, Mats Holmberg
In connection with the procurement announced on November 5, it was mentioned that a standstill period applies before a formal contract can be signed. How long is the standstill period normally for public procurements in Scandinavia?
The standstill period is usually ten days from the award decision, but it can be extended in the event of appeals or under special circumstances. It’s a routine part of the process and is intended to ensure transparency and legal certainty before the contract is formally signed.
Sensec operates in both hardware deliveries and service — two areas with different profitability profiles. How have Sensec’s margins historically differed between hardware and service?
These are two business segments that complement each other very well. Hardware provides volume, projects, and market presence, but margins are lower in a competitive product market. The service segment, on the other hand, generally has higher margins thanks to long-term contracts, recurring revenue, and strong expertise. This mix enables Sensec to deliver stability over time — where hardware opens doors, and service builds long-term profitability.
The Norwegian procurement that Sensec Solutions has been recommended for is said to have a potential value of around NOK 800 million. Can you tell us about the contract period for that procurement?
The framework agreement extends over three years for hardware deliveries and up to ten years for service. Since it’s a framework agreement, orders are placed continuously over time, which creates both continuity and flexibility. This allows us to plan resources and investments in the long term, while the customer can adjust their needs as operations evolve. For us, it means a strong and predictable revenue base that grows in line with the customer’s demands and usage.
You have previously communicated that you are exploring a sales process for the Sensec Group. How do you assess that this process is affected by the two most recent procurements, and can we expect an update soon?
The procurements naturally strengthen Sensec’s position and attractiveness in the market and confirm that the business rests on a solid commercial foundation. At the same time, this does not change our current strategy — we continue to pursue the sales process methodically and strategically. We carefully consider every step we take and ensure that decisions are made with shareholders’ interests in mind. It’s therefore important for us to have a complete overview of our options before proceeding. At present, there is nothing new to report, but we will inform the market as soon as there is concrete and relevant information to share.
Would you be prepared to sell the entire Group at the right offer?
Our focus is on creating long-term value for shareholders, which means we always evaluate strategic opportunities that strengthen the company. Right now, our focus is on continuing to build a stable, growing, and profitable Transfer Group, where our subsidiaries each perform strongly in their respective areas.
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.
