ADMICOM OYJ BUSINESS REVIEW 1.1.-30.9.2021: REVENUE +14 % AND THE GROWTH OF EBITDA +22 %, OUTLOOK REMAINS THE SAME
Unofficial translation of the company release on October 4, 2021 at 1 PM EEST. In case the document differs from the original, the Finnish version prevails.
January-September 2021 summary (comparable period January 1, 2020 – September 30, 2020):
- Revenue of review period amounted to EUR 18.528 million (16.303), resulting in +13.6% growth from comparison period. About +4.5 percentage points of the growth was inorganic growth related to the Tocoman acquisition and Lakeus Tilitoimisto Oy's business acquisition.
- EBITDA grew by 22% and totalled EUR 9.197 million (7.545) amounting to 50% of revenues.
- Operating profit grew by 24%, amounting to EUR 8.094 million (6.542).
- Earnings per share grew by 23% to 1.28 euros (1.04).
- Outlook for the year 2021 will remain the same. Admicom guides the growth of revenue to be on a level of 10-20% during the ongoing year and the profitability to be on a level of 40-50% EBITDA.
Key figures
| ADMICOM GROUP | 7-9/2021 | 7-9/2020 | Change-% | 1-9/2021 | 1-9/2020 | Change-% | 2020 |
| Revenue, EUR 1 000 | 6 164 | 5 565 | 10,8% | 18 528 | 16 303 | 13,6% | 21 917 |
| EBITDA, EUR 1 000 | 3 275 | 2 906 | 12,7% | 9 197 | 7 545 | 21,9% | 9 954 |
| % of revenue | 53,1% | 52,2% | 49,6% | 46,3 % | 45,4 % | ||
| Operating profit, EUR 1 000 | 2 895 | 2 513 | 15,2% | 8 094 | 6 542 | 23,7% | 8 618 |
| % of revenue | 47,0% | 45,2% | 43,7% | 40,1 % | 39,3 % | ||
| Profit for the period, EUR 1 000 | 2 251 | 1 956 | 15,1% | 6 295 | 5 092 | 23,6% | 6 699 |
| % of revenue | 36,5% | 35,1% | 34,0% | 31,2% | 30,6 % | ||
| Earnings per share, EPS, EUR | 0,46 | 0,40 | 15,1 % | 1,28 | 1,04 | 23,4% | 1,36 |
| Employees at the end of the period | 187 | 172 | 187 | 172 | 162 |
The figures from the interim report are unaudited and in FAS format.
The CEO, Petri Aho:
” Our operating environment has been challenging in many respects in 2021, but we continued to grow profitably during the review period, as well as invest in the continuous development of our services and operations. The growth in new sales during the review period was slowed down, especially by the corona epidemic, which has caused uncertainty in the customer base, made face-to-face sales work more difficult and slowed down onboarding of new salesforce. We still have to spend significantly more time and resources to every new contract than before the coronavirus pandemic. At the end of the review period, however, there have been signs of an easing of corona related uncertainty, but it will take time for this to begin to show in new sales and revenue growth.
In January-September, revenue growth was weighed down by about one percentage point due to the decline in customers' annual adjustment fees. The largest annual adjustment fees invoicing volume was realized as expected during the second quarter. Based on the development of annual adjustment fees invoicing during the review period, we continue to estimate that the effect of annual adjustment fees on revenues will be smaller than in the comparison period on an annual basis. Inorganic growth in revenues was +4.5 percentage points, as the acquisition of Tocoman March 10, 2020 was consolidated only partly in comparison period figures. The acquisition of Lakeus Tilitoimisto Oy's business to Admicom Finland at the beginning of August brought also a small positive addition to the review period’s inorganic growth. Our profitability remained strong, with EBITDA rising to almost 50% of net sales. The development of profitability was positively affected by the moderate development of the cost level at the first half of the year in particular.
The Company’s position in the construction industry has clearly strengthened with Tocoman. Tocoman’s new cloud-based version of cost calculation software was launched in March 2021, and it has received an enthusiastic welcome from the customer base. During the first half of the year we recruited new talents with whom we prepared for important personnel changes and supported the re-organising of the Company. We will continue investments supporting our growth and competitiveness during the end of the year. A good example of our investments is Lakeus Tilitoimisto, which was merged with the Group on 1 August 2021. Its business supports the growth opportunities of Admicom's core business, expands the Group's network to new cities and strengthens the resources of accounting services. There have been several M&A transactions in our industry during 2021, and in line with the goals of the strategy period, Admicom is also actively exploring acquisition options to strengthen growth and competitiveness.
The new organisation, consistent with the strategy process in 2020, has started to establish its operational models after periods of change. We announced on June 4, 2021 that a reward system based on a personnel fund and covering the Group’s entire personnel will be introduced during 2021 to support entrepreneurial culture, ownership within the personnel, and the Company’s strategic aims and competitiveness. One significant change at the beginning of the year was separating the CEO roles of Admicom’s parent company and subsidiaries. We announced on January 7, 2021 that Admicom Oyj’s CEO, Antti Seppä will leave the company during the ongoing year, and on January 15, 2021 we announced that managerial responsibilities of Admicom Finland Oy’s operative activities will be passed on to the CEO, Anna-Maija Ijäs. Admicom Oyj’s Board of Directors released Antti Seppä from the duties of the CEO on June 4, 2021 and appointed CFO Petri Aho as the CEO of the Company for interim period. The process of selecting a new CEO is underway, and Admicom Corporation's Board of Directors will elect a CEO during 2021.”
Outlook
The outlook given alongside with the publication of the annual report on January 15, 2021 remains the same: Admicom guides the growth of revenue during the ongoing year to be on a level of 10-20% and the profitability to be on a level of 40-50% EBITDA.
The Company also repeats the estimation given alongside with the Q1 interim report on April 1, 2021: The Company maintains the above-mentioned financial guidelines for the whole year, but comments that the more detailed outlook for the decline in customers' annual invoicing and the continuation of the Covid-19 pandemic e.g. as bankruptcies and challenges for customers in new sales, bring revenue growth prospects towards the bottom end of the projected 10-20% growth range. At the same time, the importance of successful structural growth is emphasized.
Financial publications
The Company will publish the annual report of 2021 approximately on January 14, 2022.
Admicom Oyj
BOARD OF DIRECTORS
Additional information:
Petri Aho
CEO (interim), CFO
petri.aho@admicom.fi
+358 44 724 1767
Approved advisor:
Oaklins Merasco Oy
+358 09 612 9670
Admicom Oyj
Admicom, established in 2004, is a Finnish forerunner and provider of cloud-based ERP solutions for construction, building services engineering and manufacturing companies and a comprehensive partner in software and accounting services. The Company’s cloud-based SaaS ERP solution Adminet helps small and medium-sized companies enhance their competitive advantage by automating manual processes of production site and office seamlessly all the way to accounting.
The cost calculation and the production management software developed by our daughter company Tocoman Oy have a long history and a stable position on the market. Combining the product strengths of Tocoman with the strengths of Adminet creates by far the most extensive cloud-based solution for the construction industry.
The Company employs more than 190 professionals in Jyväskylä, Helsinki, Tampere, Oulu and Seinäjoki. Further information: www.admicom.fi/investors
