# Serstech > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/serstech). ## Overview Serstech is a Swedish company that develops handheld Raman-based analyzers and related substance-identification software for security and field-use applications. Its products are used to identify narcotics, explosives, hazardous chemicals, and chemical warfare agents, with sales organized through a global partner network and direct relationships in public-sector markets. ## Products & services • Serstech Arx mkII handheld Raman analyzer • Serstech 100 Indicator substance identification device • Serstech SERS kit for low-concentration samples • Substance libraries for narcotics, explosives and CWA • Partner-led sales and support for government users - **Handheld Raman instruments** (55%) — Portable analyzers used to identify unknown substances in the field. - **Accessory and enhancement kits** (10%) — Add-on kits such as SERS surfaces that improve detection of difficult samples. - **Substance libraries and software** (20%) — Chemical databases and identification software used with Serstech devices. - **Government and security solutions** (15%) — Application-specific solutions for narcotics, explosives, hazmat and CWA users. - Serstech Arx mkII handheld Raman analyzer - Serstech 100 Indicator substance identification device - Serstech SERS kit for low-concentration samples - Substance libraries for narcotics, explosives and CWA - Partner-led sales and support for government users ## Customers Serstech sells primarily to government and public-safety organizations that need rapid field identification of unknown substances. Its main users include customs, police, prison authorities, first responders, and United Nations-related security users, typically buying through tenders or local partners. The company also serves security-focused agencies and laboratories that need portable identification tools for narcotics, explosives, hazardous chemicals, and chemical warfare agents. - **Customs and border agencies** (primary) — Buy handheld analyzers and libraries to screen suspicious substances at borders and ports. - **Police and prison authorities** (primary) — Use Serstech devices to identify narcotics and support enforcement operations. - **First responders and hazmat teams** (secondary) — Buy portable identification tools for hazardous chemical incidents and spill response. - **Defense and security agencies** (secondary) — Use the products for explosives and chemical warfare agent identification. - **International organizations** (secondary) — Purchase field-ready identification systems for security and controlled-substance work. - Customs agencies buying tools for border and cargo screening - Police and prison authorities identifying illicit narcotics - First responders and hazmat teams handling chemical incidents - Defense and security agencies screening explosives and CWA - UN and international public-safety organizations using field kits ## Geography Serstech is headquartered in Sweden and operates through a partner network that spans many countries across Europe, the Americas, Asia, the Middle East, and Africa. The company describes its business as local in nature, with local representation important for public-sector procurement and tender-based sales. Its geographic footprint is broad, but revenue can still be uneven because orders depend on timing of government tenders and partner execution. - Headquartered in Sweden with R&D and operations centered in Lund - Partner network spans more than 80% of the world's population - Sales are distributed globally through local representatives - Public-sector tenders create uneven country-by-country revenue timing - International exposure increases sensitivity to geopolitical events ## Strategy Serstech’s strategy centers on improving product performance, expanding sales capacity, and converting a larger pipeline of public-sector opportunities. The company is also concentrating R&D in Lund and using in-house production to support product development and execution, while relying on a global partner network to reach government customers in many markets. - **Grow sales through public-sector tenders** (short-term) — Tender wins are the main route to revenue in Serstech's model. - **Strengthen product performance and portfolio** (medium-term) — Better field performance improves competitiveness in procurement processes. - **Scale sales and marketing organization** (medium-term) — A stronger commercial team is needed to convert global demand into orders. - **Concentrate R&D and production in Sweden** (medium-term) — Centralization can improve coordination, cost efficiency and product development speed. - Expand sales and marketing capacity to convert a larger pipeline - Use improved product performance to win more public tenders - Centralize R&D in Lund to improve development efficiency - Leverage in-house production for tighter execution control - Scale through global partners rather than heavy direct-country buildout ## Risks Serstech is exposed to tender timing, geopolitical uncertainty, and procurement delays because most sales are made to government organizations through public tenders. The business also depends on product competitiveness, partner execution, and continued development of specialized detection technologies, while quarterly results can vary sharply when large orders move between periods. - **Tender timing and procurement delays** [high] — Most revenue depends on public-sector tenders that can be postponed. - **Geopolitical and tariff disruption** [high] — Customers may delay orders when trade rules or tariffs are uncertain. - **Product competitiveness** [medium] — Field instruments must outperform competing solutions to win tenders. - **Partner network dependence** [medium] — Local representation is important for market access and tender success. - Tender-based sales create large quarter-to-quarter revenue swings - Geopolitical and tariff uncertainty can delay government procurement - Product performance must stay competitive in a specialized market - Partner network execution affects access to local public buyers - R&D and product development must keep pace with evolving threats ## Accounting Serstech’s reported numbers are affected by the timing of tender-based revenue and by capitalization of development work, which can shift expenses between the income statement and the balance sheet. The company also reports provisions, capitalized development costs, and a recent change in presentation for capitalized work for own account, all of which can affect comparability across periods. - **Capitalized development costs** — Capitalized development costs and patents are a major depreciation item. - **Capitalized work for own account** — From 2026, external costs were presented using the gross method. - **Tender-driven revenue recognition timing** — Quarterly revenue and margins can fluctuate materially. - **Provisions and deferred income** — Affects current liabilities and near-term cash conversion. - Tender timing can move revenue sharply between quarters - Capitalized development costs affect EBIT and intangible assets - Capitalized work for own account changed presentation in 2026 - Provisions and deferred income affect short-term liabilities - Depreciation of development costs impacts reported earnings --- *Last updated: 2026-08-11T04:04:55.750162+00:00*