Innofactor Plc's Interim Report for January 1–September 30, 2021
(IFRS)
Innofactor Plc Interim Report October 26, 2021, at 9:00 Finnish
time
Innofactor achieved its highest-ever operating margin in
the third quarter in spite of a
slight decrease in net sales due to a divestment
and an organizational
change in Finland
July–September 2021 in brief:
- Net sales were approximately EUR 13.7
million (2020: 14.0), representing a decrease of 2.0%
- Excluding the Prime business sold on
March 31, 2021, the comparable growth was 3.0%, which was entirely
organic growth
- The operating margin was approximately
EUR 1.7 million (2020: 1.6), representing an increase of 8.7%
- The operating profit was EUR 0.9
million (2020: 0.4), representing growth of 130.4%
- The order backlog at the end of the
review period was EUR 72.0 million (2020: 58.2), representing an
increase of 23.7%
January–September 2021 in brief:
- Net sales were approximately EUR 48.8
million (2020: 47.9), representing an increase of 1.9%
- Excluding the Prime business sold on
March 31, 2021, comparable growth was 4.9%, which was entirely
organic growth
- The operating margin was approximately
EUR 8.4 million (2020: 5.6), representing an increase of 51.4%
- The operating margin includes a sales
gain of approximately EUR 2.6 million from the sale of the Prime
business, without which the operating margin would have been
approximately EUR 5.9 million (2020: 5.6), representing an increase
of 5.6%
- The operating profit was EUR 6.0
million (2020: 2.1), representing an increase of 185.9%
- The operating profit includes a
corresponding sales gain as the operating margin, without which the
operating profit would have been approximately EUR 3.4 million
(2020: 2.1), representing an increase of 64.0%
Key figures of the group, IFRS |
|
|
. |
Jul 1–Sep 30, 2021 |
Jul 1–Sep 30, 2020 |
Change |
Jan 1–Sep 30, 2021 |
Jan 1–Sep 30, 2020 |
Change |
Net sales, EUR
thousand |
13,730 |
14,005 |
-2.0% |
48,834 |
47,913 |
1.9% |
Growth of net
sales |
-2.0% |
0.3% |
|
1.9% |
2.5% |
|
Operating
result before depreciation and amortization (EBITDA), EUR
thousand |
1,695 |
1,559 |
8.7% |
8,448 |
5,579 |
51.4% |
percentage of net sales* |
12.3% |
11.1% |
|
17.3% |
11.6% |
|
Operating
profit/loss (EBIT), EUR thousand* |
915 |
397 |
130.4% |
5,996 |
2,097 |
185.9% |
percentage of net sales* |
6.7% |
2.8% |
|
12.3% |
4.4% |
|
Earnings
before taxes, EUR thousand* |
755 |
26 |
2,754.8% |
5,400 |
1,099 |
391.2% |
percentage of net sales* |
5.5% |
0.2% |
|
11.1% |
2.3% |
|
Earnings, EUR
thousand* |
581 |
27 |
2,087.5% |
4,207 |
1,505 |
179.6% |
percentage of net sales* |
4.2% |
0.2% |
|
8.6% |
3.1% |
|
Order
backlog |
71,979 |
58,181 |
23.7% |
71,979 |
58,181 |
23.7% |
Net
gearing* |
34.0% |
66.7% |
|
34.0% |
66.7% |
|
Net gearing
without IFRS 16 |
21.2% |
48.1% |
|
21.2% |
48.1% |
|
Equity
ratio |
52.9% |
43.5% |
|
52.9% |
43.5% |
|
Equity ratio
without IFRS 16 |
56.8% |
45.8% |
|
56.8% |
45.8% |
|
Active
personnel on average during the review period** |
508 |
545 |
-6.8% |
493 |
549 |
-10.2% |
Active
personnel at the end of the review period** |
497 |
546 |
-9.0% |
497 |
546 |
-9.0% |
Earnings per
share (EUR) |
0.0155 |
0.0007 |
2,087.5% |
0.1125 |
0.0402 |
179.6% |
*) In accordance with IFRS 3, the operating result for July
1–September 30, 2021, includes EUR 113 thousand (2020: 473) and for
January 1–September 30, 2021, EUR 390 thousand (2020: 1420) in
depreciation related to acquisitions, consisting of allocations of
the purchase price to intangible assets.
**) The Innofactor Group monitors the number of active
personnel. The number of active personnel does not include
employees who are on a leave of over 3 months.
Innofactor’s future outlook
for 2021
Innofactor’s net sales and operating margin (EBITDA) in 2021 are
estimated to increase from 2020, during which the net sales were
EUR 66.2 million and operating margin was EUR 7.2 million.
CEO Sami Ensio’s
review: Innofactor updated its strategy and restructured
its Finnish organization to better support future
growth
Net sales in the third quarter of 2021 were EUR 13.7 million,
representing a year-on-year decrease of 2.0 percent. Excluding the
Prime business sold on March 31, 2021, the year-on-year growth rate
in the third quarter would have been 3.0 percent, consisting
entirely of organic growth. The operating margin (EBITDA) grew by
8.7 percent year-on-year and came to EUR 1.7 million (12.3 percent
of net sales). EBITDA was positive in Finland, Norway and Denmark.
In the third quarter, the order backlog was roughly at the same
level as in the previous quarter. The order backlog amounted to EUR
72.0 million at the end of the quarter, representing year-on-year
growth of 23.7 percent.
Net sales for the first nine months of 2021 amounted to EUR 48.8
million, representing year-on-year growth of 1.9 percent. Excluding
the Prime business sold on March 31, 2021, from April 1, 2021,
onwards the comparable rate of growth was 4.9 percent, consisting
entirely of organic growth. The operating margin (EBITDA) grew by
51.4 percent year-on-year and was EUR 8.4 million (17.3 percent of
net sales), of which the sale of the Prime business during the
first quarter accounted for approximately EUR 2.6 million.
At the end of August, Innofactor decided to renew its strategy
to support growth even more strongly. In our strategy work, we
defined the areas in which we see the strongest growth potential
regarding our business and Microsoft’s solution offering.
Innofactor tightened its offering according to the growth areas in
question: Digital Services, Business Solutions, Information and
Case Management, Data and Analytics, Cloud Infrastructure and
Cybersecurity.
At the same time, it was decided to restructure the Finnish
organization to correspond to the growth areas of the new strategy.
As of October 1, 2021, Innofactor has had six business units in
Finland, corresponding to the offering presented above. The aim of
the organizational renewal is to strenghten Innofactor's growth in
Finland in the future. The restructuring of operations caused a
temporary decrease in Innofactor's net sales in Finland in the
third quarter.
Innofactor’s aim is to be the leading provider of organizations’
digital transformation in each of the Nordic countries. We believe
in our chosen Nordic strategy and in reaching our long-term goals.
This requires perseverance and determination from the company's
management and employees as well as investors. Innofactor is still
actively looking for new strategic partnerships in the Nordic
countries. The Group’s goal is to grow both organically and through
acquisitions.
Strategy and its realization in the review
period
Innofactor’s strategy comprises our purpose, mission, vision,
strategic choices, values, working principle, and long-term
financial goals.
Our purpose: Innovating to make the world work better
Our mission: Driving the modern digital organization
Our vision: Leading Nordic digital transformation partner in the
Microsoft ecosystem
Our strategic choices:
- The most competent Nordic teams
- Productized and specialized
offering
- Proactive and agile way of
working
- Innovation with top customers
Our values:
- Accountability
- Empowerment
- Innovation
- Customer
Our working principle: Our principle is to put people first in
everything we do. We want to provide solutions that make our
customers’ everyday work and life run smoothly and bring a smile to
their faces.
Our long-term financial goals:
- To achieve annual growth of about 20 percent, the majority of
which is intended to be achieved by organic growth
- To achieve about 20 percent EBITDA in
relation to the net sales
- To keep the cash flow positive and
secure good financial standing in all situations.
Innofactor’s net sales in January–September 2021 were EUR 48.8
million (2020: 47.9), representing year-on-year growth of 1.9
percent. Excluding the Prime business sold on March 31, 2021, from
April 1, 2021, onwards the comparable rate of growth was 4.9
percent, consisting entirely of organic growth. During the first
nine months of the year, Finland, Norway and Denmark accounted for
the growth. The net sales growth target is supported by
Innofactor’s large order backlog of EUR 72.0 million (2020: 58.2).
In 2021, Innofactor will pay special attention to management of
growth, sales, expertise and resourcing, in connection with which
we have restructured our organization, among other measures.
The operating margin (EBITDA) grew in the review period by 51.4
percent year-on-year and came to EUR 8.4 million (17.3 percent of
net sales). Without the divestment of the Prime business, the
operating margin would have grown by 5.6 percent in the review
period and would have been EUR 5.9 million (12.1 percent of net
sales). As regards profitability (excluding the Prime divestment),
Innofactor was able to improve its performance slightly, but more
work is still needed to achieve the long-term goal of approximately
20 percent.
Innofactor’s operating cash flow in the review period of January
1–September 30, 2021, was EUR 6.2 million (2020: EUR 4.9 million)
and the equity ratio at the end of the review period was 52.9
percent (2020: 43.5 percent). In the review period, Innofactor
repaid approximately EUR 2.7 million of its loans prematurely. The
strong operating cash flow and financial position support
Innofactor’s strategic goal of profitable growth and securing solid
financial standing in all situations.
Espoo, October 26, 2021INNOFACTOR PLCBoard of Directors
Additional information:CEO Sami Ensio, Innofactor Plctel. +358
50 584 2029sami.ensio@innofactor.com
Briefings concerning the Interim Report January
1–September 30, 2021
Innofactor will publish the Interim Report for January–September
2021 on Tuesday, October 26, 2021, at approximately 9:00 Finnish
time.
A video conference in Finnish concerning the interim report will
be held for media, investors and analysts on the same day at 10:00
Finnish time. The corresponding video conference in English will be
held at 12:00 Finnish time. The report will be presented by CEO
Sami Ensio and CFO Markku Puolanne.
Please register for the conferences beforehand by sending email
to ir@innofactor.com. The link for participating will be sent to
the registered persons on the previous day.
The presentations will be available on Innofactor's web site
after the conferences.
Distribution:NASDAQ HelsinkiMain mediawww.innofactor.fi
InnofactorInnofactor is the leading driver of
the modern digital organization in the Nordic Countries for its
approximately 1,000 customers in commercial, public and third
sector. Innofactor has the widest solution offering and leading
know-how in the Microsoft ecosystem in the Nordics. Innofactor has
over 500 enthusiastic and motivated top specialists in Finland,
Sweden, Denmark and Norway. In 2016–2020, the annual growth of
Innofactor's net sales has been approximately 8.3%. The Innofactor
Plc share is listed in the technology section of the main list of
NASDAQ Helsinki Oy. www.innofactor.com #ModernDigitalOrganization
#HybridWork #PeopleFirst #CreatingSmiles
- Innofactor Plc's Interim Report for January 1–September 30,
2021 (IFRS)
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