ADMICOM OYJ BUSINESS REVIEW 1.1.-31.3.2022: GROWTH AND PROFITABILITY AT TARGET LEVEL: REVENUE +24 % AND THE GROWTH OF EBITDA +23 %, OUTLOOK REMAINS THE SAME
Unofficial translation of the company release on April 4, 2022 at 10:15 AM EEST. In case the document differs from the original, the Finnish version prevails.
Jan-March 2022 summary (comparable period January 1, 2021 – March 31, 2021):
- Revenue of review period amounted to EUR 7.323 million (5.893), the growth was +24.3%. Of the growth +12.8 percentage points was inorganic related to the Aitio Finland and Hillava acquisitions and Lakeus Tilitoimisto Oy's business operations.
- EBITDA grew by 23.0% and totaled EUR 3.292 million (2.676), representing 45.0% of revenue.
- Operating profit grew by 17.9%, amounting to EUR 2.729 million (2.314).
- Earnings per share grew by 13.3% to EUR 0.41 (0.36).
- The financial guidance for 2022 remains unchanged. Admicom guides for the 2022 financial year over 20% revenue growth and profitability to be 40-50% in terms of EBITDA.
Key figures
| ADMICOM GROUP | 1-3/2022 | 1-3/2021 | Change % | 2021 |
| Revenue, EUR 1 000 | 7 323 | 5 893 | 24.3% | 24 857 |
| EBITDA, EUR 1 000 | 3 292 | 2 676 | 23.0% | 11 862 |
| % of revenue | 45.0% | 45.4% | 47.7% | |
| Operating profit, EUR 1 000 | 2 729 | 2 314 | 17.9% | 10 374 |
| % of revenue | 37.3% | 39.3% | 41.7% | |
| Profit for the period, EUR 1 000 | 2 059 | 1 794 | 14.8% | 8 054 |
| % of revenue | 28.1% | 30.4% | 32.4% | |
| Earnings per share, EPS, EUR | 0.41 | 0.36 | 13.3% | 1.63 |
| Employees at the end of the period | 211 | 181 | 209 |
The CEO, Petri Aho:
”Admicom's growth and profitability development were in line with targets in the first quarter as revenue increased by 24% and EBITDA by 23%. Revenue growth was accelerated especially by acquisitions made at the end of last year, but our organic growth rate also accelerated slightly compared to previous quarters. Although the acquired businesses have a negative impact on the Group’s relative profitability, due to the strong profitability of the core businesses, we maintained an excellent level of 45% in the EBITDA margin.
In January-March, our operating environment was still challenging in many respects and partly affected by new uncertainties, but we moved in a positive direction in new sales in the first quarter and took important steps in the development of our products and services. The impact of customers' annual adjustment fees on revenue growth turned slightly positive in the first half of the year (+0.5pp), which reflects the turnaround in the development of net sales in our customer industries over the past year. Based on Statistics Finland's data, growth in customer industries has also continued to be strong in early 2022.
The war in Ukraine, which began in February, has no direct impact on our business. Indirectly, however, war can affect the demand outlook for our business through a weakening of general economic development or through possible denial-of-service attacks affecting the reliability of cloud services, such as those of public authorities or banks.
During the review period, we continued to recruit new talent across the Group and implemented the first steps in the integration of the Aitio Finland and Hillava acquisitions as planned. The first few months together have shown that Aitio Finland's and Hillava's personnel' expertise in software products, building technology and construction, as well as technology, is a great complement to Admicom's and Tocoman's expertise, and together we can take the development of our software solutions forward more quickly, utilise the growth investment opportunities we have identified and improve the customer experience. Work to implement M&A that support growth, competitiveness and forerunner position, expand the partner network and grow the ecosystem continues.
The important announcement at the beginning of the year was Petri Kairinen's appointment as CEO of Admicom Oyj as of June 20, 2022. Petri Kairinen brings the expertise of international acquisitions needed for Admicom's next phase of growth, as well as experience in leading a technology company at different stages of development. I warmly welcome Petri to Admicommunity. The composition of Admicom's Board of Directors was also renewed at the Annual General Meeting held on 25 February 2022. Petri Niemi (Chairman of the Board), Pasi Aaltola, Olli Nokso-Koivisto, Henna Mäkinen and Marko Somerma were elected to the Board of Directors."
Outlook:
The outlook given alongside with the publication of the annual report on January 21, 2022 remains the same: In line with the Group’s financial targets for the 2021-2023 strategy period, the Company guides for the 2022 financial year over 20% revenue growth and profitability to be 40-50% in terms of EBITDA.
The continuation of the coronavirus pandemic, personnel changes and risk factors related to general economic development continue to create uncertainty, especially regarding the success of new sales and increases the risk of customer churn. In addition, the forecast for the revenue growth in the second half of the year is affected by the distribution of Aitio Finland Oy's revenues between external and internal customers.
Financial publications:
The Company will publish the half-year financial report on July 4, 2022.
Admicom Oyj
BOARD OF DIRECTORS
Additional information:
Petri Aho
Interim CEO, 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 especially for small and medium-sized construction, building services engineering and manufacturing companies. Admicom's cloud-based ERP system Adminet efficiently automates the customer company's routines from site and production functions to office processes. Admicom also provides training, consulting, and accounting services.
Our subsidiary Tocoman Oy's software is one of the leading software solutions especially in the construction industry. Tocoman's cost calculation and production management software has a long history and a solid position on the market. By combining the strengths of Tocoman's software with the strengths of Adminet, the end result is clearly the most extensive cloud-based solution for the construction industry.
Our subsidiary Aitio Finland Oy provides its customers and Admicom Oyj with software solution development services, as well as related integration and maintenance services, mobile applications and cloud solutions. The subsidiary Hillava Oy develops and markets a cloud-based ERP system especially for field work planning and management.
Admicom Oyj employs over 200 professionals in Jyväskylä, Helsinki, Tampere, Oulu, Seinäjoki and Turku. Further information: https://investors.admicom.fi/
