Zalaris ASA: Reaffirming NOK 2 bn ambitious revenue target and clear path to long-term shareholder value creation, following strategic review

12 Jun 2025 07:00 CEST

Oslo, Norway – 12th of June 2025 – Zalaris ASA (Zalaris, OSE:ZAL) today
announces the conclusion of its strategic review, undertaken to evaluate
value-enhancing opportunities for its stakeholders.

Following a comprehensive assessment of potential strategic alternatives,
supported by ABG Sundal Collier, the Board of Directors has determined that
continuing with the company’s current strategy represents the most compelling
route to long-term value creation.

This decision is underpinned by the significant operational improvements over
the last 12 months, which have driven above-target growth and profitability, as
highlighted in Zalaris’ Q1 2025 financial report.

During the review period, the company received and evaluated acquisition
proposals. The Board concluded that these offers did not have a premium that
adequately reflected Zalaris’ value, particularly considering its recent
financial outperformance, strong growth trajectory and positive outlook.

“We have overdelivered significantly on the growth and profitability trajectory
we set out at our September 2023 capital markets day. With a proven strategy and
positive momentum, we are strongly motivated and in a stellar position to
continue delivering superior and sustainable value creation for our
stakeholders,” said Hans-Petter Mellerud, CEO and co-founder of Zalaris.

Strong financial performance and momentum:

In Q1 2025, Zalaris delivered its seventh consecutive quarter of strong growth
and enhanced profitability. Revenues increased by 19% year-over-year, reaching
an annualized run-rate of approximately NOK 1.5 billion—achieving this milestone
a full year ahead of plan. The company also reported a 50% year-over-year
improvement in its adjusted EBIT margin for the quarter, which rose to 14.1%,
highlighting the strength and resilience of Zalaris’ business model. This
positive momentum was further supported by a significant improvement in cash
conversion.

“Building on this momentum, our ambition is to achieve NOK 2 billion in annual
revenue by 2028, driven by organic growth. In parallel, we have established a
clear pathway to continue strengthening our EBIT margins over the same period,”
said Hans-Petter Mellerud.

Advancing Global Leadership in Payroll and HR Transformation:

Zalaris remains firmly committed to its strategic ambition to become one of the
top three global providers of multi-country payroll and HR transformation
services. The company continues to deepen its long-standing partnership with
SAP, supporting clients in their transition to cloud-based solutions, and
strategic use of artificial intelligence (AI) while enhancing its proprietary IP
to address local and industry-specific needs.

“As a European company, with solutions hosted entirely in Europe—we are now
better positioned than ever to serve European customers with scalable global
solutions in both the near and medium-term future,” Mellerud continues.

Positioned for Value Creation as a Public Company:

The Board of Directors believes that Zalaris is well positioned to unlock
superior value for shareholders, driven by its scalable business model and
sustained revenue growth. The company continues to make good progress toward its
communicated cash conversion target of 70% and remains committed to distributing
50% of its profit before tax to shareholders.

The strategic review was partly initiated due to the low daily trading volume of
Zalaris shares, which has led to elevated price volatility—an issue for
shareholders requiring stable mark-to-market valuations.

The Board and management are committed to improving share liquidity over time by
allocating resources to enhance marketability and trading dynamics on the Oslo
Stock Exchange (OSE). Strong financial performance supports this effort and
reinforces our long-term value creation strategy.

Contact:

Adele Norman Pran, Chair of the Board of Directors
Mobile: +47 971 64 411

Hans-Petter Mellerud, CEO
Mobile: +47 928 97 276
E-mail: hans-petter.mellerud@zalaris.com

Gunnar Manum, CFO
Mobile: +47 951 79 190
E-mail: gunnar.manum@zalaris.com

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

More information:
Access the news on Oslo Bors NewsWeb site