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

To get straight to the heart of the matter – never before have we had a first quarter as good as this! Revenues increased by 30% during the first quarter compared with the same period last year, and the gross margin is 64%, which is exceptionally good. Adjusted for one-off earnings, the gross margin is 57%, which is comparable to the already-high figure of 45% at the end of 2016. The ball begins to roll in on many fronts, while technology investments and brand-new customers contribute to the record high climb in our gross margin.

One example of the latter is the very exciting business cooperation that we began in January with ClearOn, Sweden’s leading provider of payment services within the grocery retail segment. ClearOn acquired the rights to our unique cash2go® cash withdrawal service, which they are now fully engaged in delivering to all their payment service agents, and they will become an important partner to West for future payment solutions to small and medium-sized stores – a market segment where we previously lacked a strong partner. This is very much a win-win deal, as West now has a completely different position in the Swedish market than we had before, while ClearOn can offer a complete payment solution to all its merchants.

However, the largest business in the first quarter was MAX, a leading Swedish fast food chain. We have expanded the content in our deliveries of self-service kiosks to them, obtaining the trust to develop and provide the actual card terminal for these kiosks. This is of great strategic significance, as it in turn means that we have become their full supplier of their self-service checkout concept (“Expresskassan”), and therefore we have the capacity to accompany them to the European market. In addition, in order to meet their need for card terminals tailored to self-service, we have also launched the WestInt T303, a unique, future-proof, unattended payment terminal (UPT). It’s enormously exciting that we’re once again at the forefront of solutions that make it easier and safer to make payments. Demand for self-service is growing in several industries, especially in restaurants and fast food, and we now have a stable and attractive product to offer in response to this increase in all our markets.

West’s internationalisation efforts continued unabated in the first quarter, where I would like to highlight new deal made with South Africa’s largest bank, Absa Bank. This is a very valuable business and important milestone in our already-extensive history of cooperation. It not only entails a significant upgrade of the bank’s own card-payment system, including a new payment service provider, but it also opens up the ability to provide their external customers in stores, hotels and restaurants with the same solution. It strengthens West’s role in the entire South African market.

There is full activity in our other international markets as well. Right now, we are all busy working to lay this important foundation for all the efforts we have begun, especially in Australia and Southeast Asia. All technology must be put in place and plugged in, and all necessary certifications must be approved and completed. It is a solid effort being made in silence, which is definitely moving forward. Although much is not yet noticeable so far, our views on the potential and opportunities of these markets have not changed the least. Quite the opposite. It simply takes time to get from making the contract to putting the first card terminal into production – sometimes several years.

But despite this necessary wait, our business activity has never been as high as it is now. With the highest order backlog in the company’s history, totalling SEK 25 million, we saw an all-time high in orders on hand in the first quarter. Very happy, of course, but at the same time, this was expected. What we are seeing now is a continuation of the high levels of business activity that began last year. The positive trend from the first quarter has continued through the beginning of the second quarter, and so I see continued growth for the full year, and us delivering this growth along with profitability.

 

 

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