7.3.2023 08:00:01 EET | Netum Group Oyj | Company Announcement

Netum Group Plc                     Company announcement                    7 March 2023 at 08:00 a.m. EET

 

Netum Group Plc: Netum Group Plc’s financial statements release 1 January–31 December 2022 

This release is a summary of Netum’s financial statements release for January–December 2022. The complete report is attached to this release as a pdf file and available on the company’s website at https://www.netum.fi/en/investors/reports-and-presentations/

Revenue grew by 30% in a challenging operating environment 

Revenue for January–December 2022 grew 30.1% from the comparison period. Organic growth was 21.8%. Inorganic growth based on the acquisition of Cerion Solutions Oy on 1 October 2021 was 8.3%. EBITA amounted to EUR 2.5 (3.1) million or 8.5 (14.0) % of revenue.  

Unless otherwise stated, the figures in brackets refer to the comparison period and are in the same unit as the figures for the reporting period. The figures for the financial year 2022 in this financial statements release are not audited.

July–December 2022 in brief

  • On 29 December 2022, Netum Group Plc announced having signed an agreement to acquire 100% of Studyo Oy
  • Revenue increased 14.7% from the comparison period to EUR 13.7 (12.0) million 
  • EBITDA amounted to EUR 0.9 (1.5) million or 6.9 (12.8) % of revenue
  • EBITA was EUR 0.8 (1.4) million or 5.5 (11.6) % of revenue 
  • Comparable EBITA was EUR 0.8 (1.5) million, or 5.8 (12.4) % of revenue 
  • Operating profit was EUR -0.1 (0.7) million, or -0.8 (5.8) % of revenue
  • Result for the reporting period was EUR -0.3 (0.4) million, or -2.2 (3.7) % of revenue, 
  • and comparable result excluding goodwill amortisation was EUR 0.6 (1.2) million, 
  • or 4.3 (10.2) % of revenue
  • Comparable earnings per share excluding goodwill amortisation were EUR 0.05 (0.11)

January–December 2022 in brief 

  • Revenue increased 30.1% from the comparison period to EUR 29.1 (22.4) million 
  • EBITDA amounted to EUR 2.8 (3.4) million, or 9.7 (15.2) % of revenue
  • EBITA was EUR 2.5 (3.1) million or 8.5 (14.0) % of revenue 
  • Comparable EBITA was EUR 2.6 (3.1) million or 8.8 (14.0) % of revenue
  • Operating profit was EUR 0.8 (1.9) million, or 2.6 (8.5) % of revenue
  • Result for the reporting period was EUR 0.2 (0.5) million, or 0.6 (2.4) % of revenue, and  
  • comparable result excluding goodwill amortisation was EUR 2.0 (2.5) million, or 6.8 (10.9) % of revenue
  • Comparable earnings per share excluding goodwill amortisation were EUR 0.17 (0.24)
  • Number of employees at the end of the period was 276 (217), year-on-year growth was 27.2%
  • Netum Group Plc’s Board of Directors proposes to the Annual General Meeting that for the accounting period of 1 January–31 December 2022, a dividend of EUR 0.11 per share be shared

 

Group key figures

EUR thousand 
unless otherwise stated

7–12/2022

7–12/2021

Change

1–12/2022

1–12/2021

Change

Revenue

13,719

11,965

14.7%

29,146

22,401

30.1%

Revenue growth, per cent

14.7%

33.4%

 

30.1%

27.7%

 

Organic growth, per cent

3.8%

18.6%

 

21.8%

20.1%

 

EBITDA

943

1,535

-38.6%

2,817

3,395

-17.0%

EBITDA, % of revenue

6.9%

12.8%

 

9.7%

15.2%

 

Operating profit excluding goodwill amortisation (EBITA) 

754

1,389

-45.7%

2,485

3,140

-20.9%

EBITA, % of revenue

5.5%

11.6%

 

8.5%

14.0%

 

Comparable EBITA1)

798

1,482

-48.6%

2,561

3,129

-18.2%

Comparable EBITA, % of revenue

5.8%

12.4%

 

8.8%

14.0%

 

Operating profit (-loss)

-108

692

-115.6%

761

1,909

-60.1%

Operating profit (-loss), % of revenue

-0.8%

5.8%

 

2.6%

8.5%

 

Result for the reporting period 

-308

444

-169.4%

185

529

-65.1%

Profit for the period excluding goodwill amortisation

554

1,141

-51.4%

1,909

1,760

8.5%

Comparable profit excluding goodwill amortisation1)

589

1,216

-51.6%

1,969

2,451

-19.7%

Earnings per share, EUR

-0.03

0.04

-161.3%

0.02

0.05

-69.2%

Earnings per share excluding goodwill amortisation, EUR

0.05

0.11

-57.1%

0.16

0.17

-4.2%

Comparable earnings per share excluding goodwill amortisation, EUR

0.05

0.12

-57.2%

0.17

0.24

-29.1%

Number of employees at the end of the period

 

 

 

276

217

27.2%

Equity ratio, %

 

 

 

59.6%

60.6%

-1.7%

Return on equity, %

 

 

 

1.5%

6.1%

-74.9%

1) Items affecting comparability are presented in the table Comparable profit excluding goodwill amortisation.

Outlook for 2023

Netum expects its revenue to grow at least 20% from the previous year and EBITA to be at least 10% of revenue in the financial year 2023.

Overall, the outlook for the IT services market for 2023 is positive, and especially the development of digital services and the demand for data and analytics services as well as for cyber security services are expected to remain good.

Matti Mujunen, CEO:

”Although the year 2022 was surprisingly challenging, we reached our revenue growth target in line with our guidance. Our growth was supported by continued good demand in the IT services market. Public administration customers were particularly active, and geopolitical or economic development did not have a significant impact on public sector IT projects. The growth is an indication that our customers trust us, and it is also reflected in the results of customer satisfaction measurements. Our revenue grew 30 per cent year on year and amounted to EUR 29.1 million.

Revenue increased primarily due to the long framework agreements with our current customers, but during the year we also signed significant new agreements with, for example, Kuntien Tiera Oy, Istekki Oy, 2M IT Oy and LapIT Oy, which operate in the health and social services sector. We also signed agreements on continuous service with the KEHA Centre and on the development services of the “Peppi” student administration system with Haaga-Helia University of Applied Sciences. In addition, we received several smaller new contracts from municipalities, the education sector and companies. New important customers for us were Kela, the City of Lahti, the University of Oulu and Jukkatalo Oy. For corporate customers, we are particularly pleased with the agreement on integration services for Colliers in their entire EMEA region.

In 2022, we continued to invest in growth in line with our targets with a special focus on recruitment and awareness growth. Our invoicing rates were challenged by front-loaded recruitments, internal development projects and sick leaves of personnel due to the coronavirus. The decline in our profitability in 2022 was due to product development costs and higher general costs, as well as a higher than usual subcontracting volume in the first half of the year. EBITA was 8.5 per cent of revenue.

To strengthen our ability to reach our medium-term profitable growth targets in line with our strategy, we clarified and simplified the Group's organisational structure by merging all acquired companies acquired through acquisitions into Netum Oy under a common brand. In addition, we will continue to serve our customers with industry-specific teams. With the changes, we aim to improve the efficiency of customer service and customer relationship management, as well as to further improve job satisfaction. 

Our number of employees increased by 59 during the year, and by the end of the year there was already 276 of us. We opened new offices in Jyväskylä and Hämeenlinna and moved to new premises in the Kampin Huippu property in Helsinki. With the acquisition of Studyo Oy in January 2023, our operations also expanded to the Kuopio economic region, and we further strengthened our product and service offering in the education sector. 

Our goal is to be the preferred work community in our industry, and here we are on a good path. In 2022, our personnel turnover rate was still low, 8 per cent. During the year, we focused especially on job satisfaction, and in the spring of 2022, we received the Great Place to Work award.

In September, 145 staff members participated in the personnel share issue, which is also a testament to our personnel's commitment to Netum and its goals. The new employee incentive package also includes a share-based incentive plan for the extended management team, which commits and guides the management to the implementation of our growth strategy.

Our corporate responsibility programme has been in operation since 2021. During the year, we received the Green Office certificate also for our second office in Tampere, and we will continue to certify other offices. Our goal is to increase the diversity of our personnel. Our age range is already wide, and in 2022, the share of women in our personnel increased to 18 per cent from the previous year's 14. Our employee net promoter score (eNPS) was 58, up from 46 the year before. We are currently updating our responsibility programme, which is expected to be published during the first half of this year. 

In spring 2022, we updated our strategy. As part of our strategy, we intend to strengthen our brand, expand our operations regionally in Finland and continue to invest in our work community, and we have succeeded well in this in 2022. In 2022, approximately one-fifth of our revenue came from corporate sales. In the implementation of our strategy, this year we will focus especially on developing our corporate customer business and partnerships, which is supported by the changes we have made to our organisational structure.

Our medium-term financial targets updated in spring 2022 remain unchanged. We continue to aim for a revenue of EUR 50 million by 2025, profitable growth and EBITA of at least 14 per cent of revenue. Overall, the outlook for the IT services market for 2023 is positive, and especially the development of digital services and the demand for data and analytics services and cyber security ser-vices are expected to remain good. We estimate that our revenue will grow in 2023 by at least 20% from the previous year. EBITA is estimated to be at least 10% of net sales.

My warmest thanks for the past year to our committed personnel, all our partners and customers, as well as our investors.”

Board of Directors’ proposal for measures related to profit 

The parent company’s profit for the reporting period totals EUR 2,121,728.20. The Board of Directors proposes to the Annual General Meeting to be held on Wednesday 29 March 2023 that for the accounting period of 2022, a dividend of EUR 0.11 per share be shared from the company’s distributable funds.

Annual General Meeting 2023

Netum Group Plc's Annual General Meeting will be held on Wednesday, 29 March 2023, at 10:00 a.m.  EET at the company’s office at Kansakoulunkatu 1B, 00100 Helsinki, Finland. Shareholders can also participate in the meeting through a remote connection.

Next results release

Netum Group Plc will publish its half-year report for January-June 2023 on 15 August 2023.

Webcast for investors and media 

The company will hold a press conference in Finnish on Tuesday 7 March 2023 at 2:00 p.m. EET. The result will be presented by Matti Mujunen, CEO of Netum Group Plc. The news conference will be held as a live webcast, which can be followed at https://netum.videosync.fi/netum-h2-2022-tulosjulkistus/. During the webcast, the public can ask questions in the chat at the address mentioned above. A recording of the webcast will be available on the company's website at https://www.netum.fi/en/investors/reports-and-presentations/ later that day.

 

For additional information, please contact:

Netum Group Plc
Matti Mujunen, CEO
+358 40 047 6401
matti.mujunen@netum.fi

Certified advisor:

Evli Oyj
+358 40 579 6210

 

Netum Group in brief

Netum Group Plc is a profitably growing IT services house with over 20 years of experience of demanding IT projects. The company offers its public administration and corporate customers its ”Legacy to Digi®” concept. This concept enables combining traditional IT solutions with the latest digital applications safely and in a responsible way. Netum’s goal is to be the most trusted partner and the preferred employer in the industry. Netum’s services include digital service development, continuity services, integration services, cyber security services as well as management consulting services. Additionally, the company offers two applications as SaaS: the electronic message validator “Truugo” and the IT asset management system “Netum DUX”. In 2022, Netum Group’s revenue was EUR 29.1 million, and the company currently has over 270 employees in Finland.

www.netum.fi

 

 

Contacts

  • Matti Mujunen, CEO, Netum Group Plc, +358 40 047 6401, matti.mujunen@netum.fi

About Netum Group Oyj

Netum Group Oyj is a profitably growing IT services company with over 20 years of experience in demanding IT projects. The company offers its public administration and corporate customers with its “Legacy to Digi®” concept. This concept enables combining traditional IT solutions with the latest digital applications safely and in a responsible way. Netum's goal is to be the most trusted partner and the preferred employer in the industry. Netum's services include digital service development, system continuity services, integration services, cyber security services as well as management consulting services. Additionally, the company offers two applications as SaaS: the electronic message validator “Truugo” and the IT asset management system “Netum DUX”. In 2022, Netum Group’s revenue was EUR 29.1 million, and the company currently has over 270 employees in Finland.

Attachments

  • NETUM Financial statements release 2022.pdf

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