Comments by the CEO
A quarter of tough decisions
As I now write my first CEO letter as the permanent CEO of Valuno, I do so with full awareness of the situation the company is in. The revenues that were announced and expected have not taken off at the pace we needed. It has been a turbulent time - for the company, for our owners, and for those who follow us. With a now fully manned and decision-making board that works actively together with management, we enter the work with combined strength.
It is essential to note that the report now presented refers to the period before the most comprehensive changes took place. The figures should be read in that light.
Back to basics
As part of the structured cost-cutting work we previously communicated, we continue to drive down costs to an absolute minimum. All costs - operational as well as administrative - are subject to ongoing review. No cost is retained without justifying its price. The work is deliberate and methodical. The organization is now flat with direct reporting to the CEO. Shorter decision paths and clearer responsibilities.
Focus on cash flow
We prioritize the businesses that can contribute to positive cash flow in the shortest possible time. It is our most urgent task. At the same time, we care about Atlas - our commercially unique platform. Some projects are put on hold, but those that are driven forward are the ones that can generate revenue in the short term.
Tax matters
We have two ongoing tax cases that we previously communicated. In the already decided case, we have withdrawn the previous appeal and submitted a new one with a more complete factual basis. At the same time, we have applied for a postponement with significantly more concrete documentation as a basis. In the other case, an active dialogue is ongoing with the Tax Authority and no decision has yet been made. KPMG is now driving both processes.
MiCA
The appeal process is with the administrative court and we are awaiting its decision. We have not yet received any feedback in the case. The company still has good hopes for a positive outcome, based on the handling that has taken place, but it is in the nature of things that we cannot anticipate the court's decision. We are waiting.
Board, management, and the way forward
During the quarter, changes were made in both the board and management. The management team chose to leave their assignments due to different personal choices, and in line with the company's decision to transition to a flatter organization with direct reporting to the CEO. The board is now complete and decision-capable, and is working actively and closely with the management in the company's current situation. The changes are part of the adaptation that the situation requires - and we enter the next quarter with a united and effective management.
We have strong support from our customers, largest owners, and partners, and there are strong interests that want to see Valuno stabilized. What we can say is that every decision we make right now aims to give Valuno the best possible conditions - and that the work to stabilize the company and restore confidence among customers, partners, the market, and shareholders is in full swing.
Peter Liljeroos
CEO, Valuno Group AB (publ)