About West

West supplies smart transaction and payment solutions that help the company’s customers to rationalise trade in physical environments. Customers comprise systems integrators, distributors and end customers in the retail and visitor sectors. West was founded in 1988 and has been listed on Nasdaq OMX First North since 2007. The head office is in Upplands Väsby, where around 20 employees work in the areas of sales, project management, development, purchasing, warehouse and service.

West’s business focuses on three clearly defined product areas:

Card Terminals

West provides the infrastructure for the payment methods demanded by the market in the form of reliable card terminal solutions. These are certified to meet the card industry’s highest security requirements and are prepared for the mobile card payments of the future.

Self Service

Standardised self-service solutions for smart payment and transaction applications, as well as solutions for enhanced security and efficiency in handling cash.

Cash Register Systems

Equipment and services for cash register and payment systems.

From the CEO

sten-karlsson

Once again, we have had a good quarter and maintained positive figures. Revenues increased by 10% compared to the same period last year, and the gross margin is a strong 58%, in line with this year’s equally successful first quarter. I am pleased that our gross margin has reached these levels, because it confirms that we have taken a real step upwards and are heading into a new phase. Our solid foundation of business contracts and partnerships is now definitively bearing fruit.

The quarter has been extremely intense, but motivating at the same time, when one considers how much is going in the right direction. A large number of deliveries, a major product launch, and numerous projects are all success factors for our business success going forward, while also contributing to a good amount of incoming orders for card payment terminals during the past quarter. The first deliveries to ClearOn, with whom we started working in January, took place during the summer.  

Everything we do has the aim of being at the forefront of the industry, which requires us to both develop the needed technical solutions and also obtain all necessary approvals and certifications. Therefore, it is a real milestone for us that our payment gateway was certified this summer at the highest security level of the PCI DSS standard. This certification means that we will now play a greater part in managing card payments entirely on our own, reducing our dependence on external partners. In turn, this strengthens our market position towards both customers and competitors, and speeds up our entry into new markets.

Another example of how we gradually but steadily enter into new markets are the inroads we have made in Poland with one of our largest customers, Max Burgers, who will be opening several restaurants in the country this autumn. During the second quarter, we completed the development and delivery of the next generation self-service checkout concept (“Expresskassan”) to their restaurants in record time, including our own unattended payment terminal (UPT). This is a great development, partly because we create an offering that stands well on its own, and also because it opens up more opportunities for us in the European self-service market. Demand for self-service is on the rise overall, and West is unique in offering both self-service and payment solutions together. We look forward to meeting the great demand that is out there, and targetting these customer groups in 2017 and 2018.

In parallel with our more visible progress, we continue the intensive, but as yet still silent, development of several international markets. Working with many external parties takes time and requires patience, but we are now at the stage of final certification and preparation for commercial launch in a number of these markets. In Sri Lanka, it has been quite satisfying to reach the point where our terminals are now in full production at Commercial Bank, the country’s largest bank, the first group of users being in the health care sector.

Since everything that happens in the industry as a whole affects West as well, I would like to comment on a very interesting transaction that took place this summer, when the global operator Ingenico acquired the Nordic payment service provider Bambora for just over SEK 14 billion! The transaction, one of the largest in our industry, is yet another sign of high activity and market interest regarding acquisitions. But in addition to that, it shows once again that our competitors are advancing increasingly further forward in the value chain, meaning that there will be an increased amount of competition with customers. In this case, the acquisition suddenly turned Ingenico’s largest Nordic customer, Nets, into their biggest competitor instead. This is a welcome development from West’s perspective, since it fosters all the more demand for independent vendors. We thank them for that!

In order to manage all the exciting challenges we face as we enter a new phase, we are expanding our organisation by a full 25%, making enhancements in a wide range of areas, such as sales, product management, development, payment services, logistics and finance. I am proud that we have succeeded in attracting so many talented and competent people who will be starting with us this autumn, and who will be incredibly valuable for our continued growth and development. My outlook for 2017 remains, where we will continue to grow with profitability, and are well equipped for future expansion.

 

Sten Karlsson, CEO of West International AB

 

The market

The market for card terminals in the Nordic region and large parts of Europe is characterized by a complex industrial structure, high barriers to entry and a small number of operators. Once a company is established, however, there are benefits in the form of long customer contracts and slightly less competition than in many other sectors.

There are approx. 220,000 terminals in operation in Sweden. The corresponding figures for Finland and Norway are approx. 200,000 and 150,000 respectively. About half of the terminals in Sweden are independent, while the rest are integrated with the cash register system.

There are estimated annual sales of approx. 50,000 card terminals in Sweden, representing approx. SEK 500 million at the end customer level. The corresponding values are 45,000 terminals in Finland (value SEK 450 million) and 40,000 terminals in Norway (value SEK 400 million).

At present there are an estimated 250,000 cash register locations in Sweden, including the very smallest sales outlets that do not currently have a certified cash register. Since the turn of the year, the law has been tightened and now also includes, for example, traders in squares and markets, which increases the need to supplement the cash register with a control unit and a card terminal.

New, alternative payment solutions, e.g. when the mobile phone is used for payment, have recently been attracting a lot of attention, although as yet there are only a small number of users. Reasons for this include a lack of clarity about added value for the consumer combined with the difficulty of changing user behaviour.

Work for us

West is a good employer, where the focus is on the workforce. Work at West is characterised by entrepreneurship and team spirit.
We are always interested in hearing from those who have the right competence and the desire to work for us. Please submit an expression of interest together with your CV by email to: 
info@westint.se

We will respond to your expression of interest as soon as we can.

Contact us

WEST INTERNATIONAL AB (publ)

Head office

Kanalvägen 14, 2tr, 194 61 Upplands Väsby Sweden

Phone: +46 (0)8 470 03 00
Fax: +46 (0)8 506 68 499
Email: info@westint.se

Goods inward

Kanalvägen 2, 194 61 Upplands Väsby Sweden

Email: logistics@westint.se

Service & Support

Email: services@westint.se