Gofore Plc
18 October, 2022 at 9 a.m. EET
Insider Information
Gofore Plc’s Business Review July-September 2022: Gofore’s growth 32%, record high net sales in September – Employee experience significantly improved
July-September 2022
- Net sales grew by 47% and were 31.7 (21.6) million euros. Organic growth of net sales was an especially notable 32%.
- Net sales increase from private sector customers was 67%, net sales growth from public sector customers was 35%. Net sales from outside of Finland grew by 98%.
- Record high net sales in September, 14.8 (10.4) million euros.
- Adjusted EBITA grew by 38% to 3.7 (2.7) million euros. Profitability was weakened due to growth investments from the comparison period and was 11.8% (12.5%).
- The number of employees grew to a total of 1,126 (814) people, overall capacity standing at 1,243 (876) people.
- September’s employee experience survey shows significant improvement since February; eNPS (Employee Net Promoter Score) up from 30 points to 43
January-September 2022
- Net sales grew by 42% and were 104.2 (73.3) million euros. Organic growth of net sales, 27%, has sped up in the course of the year.
- Net sales increase from private sector customers was 60%, net sales growth from public sector customers was 32%. Net sales from outside of Finland grew by 63%.
- Adjusted EBITA grew by 50% and was 14.5 (9.6) million euros. Profitability improved somewhat from the corresponding period and was 13.9% (13.2%).
- The number of employees grew by 274 people in January-September, 32% growth from year-end 2021. The amount of people recruited, 318, up 106% from January-September 2021.
- The Devecto business acquired in January has developed as expected.
There were no significant events after the reporting period.
The full business review is attached to this release and can be found on Gofore’s IR website at https://gofore.com/en/invest/. The full review entails e.g. a market review, a long key figure table, an income statement and a balance sheet.
This business review is not an IAS 34 compliant interim report, and the numbers are unaudited.
Key figures
| Group, MEUR | 7-9/2022 | 7-9/2021 | 1-9/2022 | 1-9/2021 | 1-12/2021 |
| Net sales | 31.7 | 21.6 | 104.2 | 73.3 | 104.5 |
| Net sales organic growth, % | 32% | 13% | 27% | 10% | 13% |
| Adjusted EBITA | 3.7 | 2.7 | 14.5 | 9.6 | 14.6 |
| Adjusted EBITA, % | 11.8% | 12.5% | 13.9% | 13.2% | 14.0% |
| EBITA | 3.8 | 2.7 | 13.9 | 9.5 | 14.5 |
| EBIT | 2.9 | 2.1 | 11.3 | 7.8 | 12.2 |
| Earnings per share (EPS)* | 0.14 | 0.11 | 0.54 | 0.38 | 0.61 |
| Number of employees at end of period | 1,126 | 814 | 1,126 | 814 | 852 |
| Overall capacity at end of period (FTE) | 1,243 | 876 | 1,243 | 876 | 926 |
* Earnings per share is equal whether diluted and undiluted.
Devecto Oy’s figures have been consolidated with Gofore Group’s numbers as of 3 January, 2022.
CCEA Finland Oy’s figures have been consolidated with Gofore Group’s numbers as of 1 March 2021.
Organic growth is defined by comparing the quarterly net sales in the Group income statement with the net sales of the previous reporting period’s corresponding quarter. The growth is calculated with a comparable Group structure using the Group structure of the time of reporting to calculate pro forma net sales for the corresponding period. The pro forma net sales include the impact of acquisitions and divestments and is unaudited.
CEO Mikael Nylund:
“Gofore’s organic growth continued on a good level in July-September. The uncertainty of the global situation cannot be seen in our everyday work or customer demand for the time being, and despite slight caution, customers do continue and start digitalization projects. Uncertainty seems to have become the new normal in the recent years, one where the perseverance of individuals and communities is highlighted and grows stronger.
The many significant new agreements with the public sector have started to bear fruit in the fall, and private sector sales is also seeing good demand. In this review, we will give more insight to our new agreement with the GovStack alliance that promotes the digitalisation of developing governments, as well as our progress with Finland’s new wellbeing service counties towards the official start of their operations in the beginning of 2023.
The Intelligent Industry business that was boosted with the Devecto deal, i.e. the digitalization work we do with intelligent machines and equipment, is making headway as planned. During the year, we have found more and more ways of cross-unit collaboration and cross selling in both this business and overall.
This year, the number of our employees has grown by as many as 274 professionals by the end of September. A steady flow of new Goforeans have started work in July-September, and our recruitment outlook is good for the rest of the year. It is also supported by the positive attention we get. In the reporting period, Gofore got two different recognitions for being an exceptionally good workplace, which is the basis of our values.
The Reputation&Trust survey published on 29 September revealed that Finnish private investors consider Gofore’s reputation as a workplace best out of 81 listed companies in the survey, and our overall reputation was also 10th best of all companies and 5th best of midcap companies. Earlier in September, the Finnish Union of Professional Engineers in Finland awarded Gofore as the Engineer Employer of the Year, based on e.g. our own collective agreement we launched in the beginning of the year and that has been drawn up together with our crew. Good employer image cannot develop without good working life actions!
Our operating environment has remained favorable. The estimates we gave in our half-year report on our operating environment’s short-term risks and uncertainties and their direct impacts on Gofore remain unchanged. We look to the rest of the year with confidence.”
Monthly net sales development in 2022
| Month (2022) |
Net sales, MEUR (Net sales 2021) 1 | Pro forma LTM Net sales 2 |
Number of employees at end of period 3 | No. of working days in Finland | Full Time Equivalent, FTE4 |
Subcontracting, FTE5 |
| January | 10.8 (7.5) | 118.5 | 993 (727) | 20 (19) | 917 (697) | 147 (109) |
| February | 11.3 (8.1) | 120.3 | 1,015 (736) | 20 (20) | 942 (698) | 153 (111) |
| March | 13.3 (9.7) | 122.9 | 1,043 (792) | 23 (23) | 968 (735) | 155 (118) |
| April | 11.5 (8.5) | 125.0 | 1,056 (791) | 19 (20) | 988 (743) | 156 (112) |
| May | 13,1 (8.8) | 128,3 | 1,068 (799) | 21 (20) | 1,004 (755) | 163 (109) |
| June | 12.5 (9.1) | 130.8 | 1,074 (803) | 21 (21) | 1,015 (755) | 162 (108) |
| July | 4.1 (2.7) | 131.8 | 1,062 (797) | 21 (22) | 1,004 (746) | 78 (38) |
| August | 12.9 (8.5) | 135.2 | 1,086 (803) | 23 (22) | 1,016 (746) | 156 (105) |
| September | 14.8 (10.4) | 138.5 | 1,126 (814) | 22 (22) | 1,060 (757) | 183 (119) |
Unless otherwise stated, comparing figures presented in brackets refer to the corresponding period of the previous year. Devecto Oy’s figures have been consolidated into Gofore Group’s figures as of 3 January, 2022.
1) Net sales, MEUR (net sales in 2021) indicates the unaudited net sales for the month in question.
2) The last twelve months (LTM) pro forma net sales figure that the company uses tells the net sales for the Group structure of the time of reporting. The pro forma net sales include the impact of acquisitions and divestments and is unaudited.
3) Number of employees at the end of the review period.
4) Overall Capacity, FTE (Full Time Equivalent) figure shows the overall capacity of the Group’s personnel, converted into a value corresponding to the number of full-time employees. The figure includes the entire personnel, regardless of their role. The figure is not affected by annual leave, time-off in lieu of overtime, sick leave or other short-term absences. Part-time agreement sand other long-term deviations from normal working hours reduce the amount of overall capacity in comparison with the total number of employees. The personnel capacity of corporate acquisitions has been accounted for as of the date of the acquisition.
5) Subcontracting, FTE (Full Time Equivalent) figure shows the overall amount of subcontracting used in invoiceable work, converted into a value corresponding to the number of full-time employees. The subcontracting of the companies acquired by Gofore has been accounted for as of the date of the acquisition.
Next financial disclosure
Gofore’s next financial disclosure will be the financial statements release for 2022. Gofore will also publish monthly business reviews for October and November 2022. The financial calendar for 2023 will be published by the end of 2022.
Mikael Nylund, CEO, Gofore Plc
tel. +358 40 540 2280
mikael.nylund@gofore.com
Gofore Plc is a digital transformation consultancy with over 1,000 impact-driven employees across Finland, Germany, Spain, and Estonia – top experts in our industry who are our company’s heart, brain, and hands. We use our holistic service offering – consulting, coding, design, and verification – as tools to incite positive change. We care for our people, our customers, and the surrounding world. Our values guide our business: Gofore is a great workplace that thrives on customer success. In 2021, our net sales amounted to EUR 104.5 million. In 2022, Gofore is celebrating its 20th anniversary. Gofore Plc’s share is listed on the Nasdaq Helsinki Ltd. in Finland. Get to know us better at www.gofore.com.