Company Announcement 13.10.2020

Gofore Plc: Gofore Plc’s Business Review 1–30 September 2020: Record net sales in September – Profitability in the third quarter improved clearly from the previous year


Gofore Plc’s Business Review 1–30 September 2020: Record net sales in September – Profitability in the third quarter improved clearly from the previous year

Gofore’s net sales in September 2020 were EUR 8.3 million (2019: EUR 5.9 million). The Group had a total of 716 employees (578 employees) at the end of the period. Qentinel Finland Oy figures have been reported as a part of Gofore Group since 1 September 2020.
Net sales for the third quarter (1 July–30 September 2020) were EUR 16.3 million (EUR 13.3 million), up by 22.1%. The Group’s adjusted operating profit before amortisation of goodwill (adjusted EBITA) for the quarter was EUR 1.8 million (EUR 1.2 million), corresponding to 11.3% of net sales (9.2%). The Group’s operating profit before amortisation of goodwill (EBITA) for the quarter was EUR 1.8 million (EUR 1.2 million), corresponding to 11.3% of net sales (9.2%). EBITA for the quarter grew by 49.2% from last year.

The Group’s net sales for January–September (1 January–30 September 2020) were EUR 53.7 million (EUR 46.8 million), up by 14.7%. The Group’s adjusted EBITA for the period was EUR 7.6 million (EUR 6.2 million), corresponding to 14.2% of net sales (13.3%). The adjusted items consisted of expenses related to the divestment of the UK business and amounted to EUR 0.7 million. The Group’s EBITA was EUR 6.9 million (EUR 6.2 million), corresponding to 12.9% of net sales (13.3%).

CEO Mikael Nylund comments:

“Our net sales for September grew to record numbers, exceeding EUR 8 million for the first time; this is over 40% more than a year ago. This is partly due to the acquisition of Qentinel Finland Oy, which was reported as a part of the Gofore Group for the first time.

The third quarter net sales grew by more than 20% from last year. Our profitability also developed well, and the overall EBITA during the quarter was almost 50% higher than a year ago. Overall, autumn has started well despite the COVID-19 situation having deepened the normal discontinuation point of our business during the summer holidays; recovery from this is still partly underway.

After the summer, we have launched interesting new client projects. We announced an agreement with the Finnish Centre for Pensions in September, as well as an agreement on project manager services with the Finnish Transport and Communications Agency Traficom, continuing our long-term cooperation with them.

Our software development services have expanded, especially in projects for the City of Helsinki. In September, our teams have grown both in early childhood education (ASTI) projects, and in a new project, Haitaton 2.0 application, aimed at reducing the disturbance caused by street construction sites. Both tell the story of how digital solutions are an essential part of city development.

Our first-class and extensive expertise in cloud technology propelled us to a victory in a tender on cloud expert and architect services organised by the Government ICT Centre Valtori in September. Our partnership with Valtori will continue for the next two years (with a one-year option). Going forward, the agreement covers cloud expert services for Valtori and all government organisations (Amazon Web Services (AWS) and Microsoft Azure). The estimated value of the agreement is approximately EUR 2.5–3 million.

Our advisory services are taking part in the government programme that aims to advance digitalisation in Finland. Participation in this programme, tendered by the Ministry of Finance, means that we are involved in the implementation of ambitious and socially important digitalisation projects and doing essential work to make the daily lives of Finnish people and companies run more smoothly.

In digital quality assurance, we succeeded in the Helsinki and Uusimaa Hospital District (HUS) tender for Oracle ERP test automation. The estimated value of the agreement for the next four years is approximately EUR 1.1 million. 

At the beginning of October, we announced our new brand whose ‘Pioneering an ethical digital world’ promise shows our commitment to work for a more humane and sustainable digital future. Responsibility and impact will be an even more integral part of Gofore’s communications going forward”.
In the Business Reviews, in addition to the month’s net sales, the net sales of the corresponding month in the previous year is published. The reviews also include key indicators that further facilitate transparency of the company’s growth strategy and comparisons between different periods. Reporting has been supplemented with the Full Time Equivalent (FTE) figure as well as subcontracting FTEs. Additionally, in the monthly Business Reviews for the quarter ending in March and September, the company publishes the Group’s adjusted EBITA and adjusted EBITA-% as well as corresponding figures for the same period in the previous year.  

The figures are unaudited.   

The table is updated as the year progresses.  

Net sales, MEUR (net sales 2019)1  Number of 
Number of working days in Finland  Overall capacity, 
September 8.3 (5.9) 716 22 666 107
August 5.6 (5.3) 612 21 579 64
July 2.4 (2.2) 609 23 569 33
June 6.1 (5.1) 610 21 579 71
May 6.0 (6.2) 606 19 572 75
April 6.4 (5.5) 596 20 559 80
March 6.8 (6.1) 585 22 549 73
February 5.9 (5.3) 578          20 539 68
January  6.1 (5.2)    587 21 548 60

1 Net sales, MEUR (net sales in 2019), reports net sales (unaudited) for that month.    
2 The number of employees at the end of the review period. 
3 The 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 agreements and other long-term deviations from normal working hours reduce the amount of overall capacity in comparison with the total number of employees.  
The 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.  

Quarterly development

Group (consolidated)  Q1/2020  Q2/2020  Q3/2020 Q4/2020
Net sales, MEUR  18.8  18.6  16.3  
EBITA, MEUR, adjusted  3.3  2.5  1.8  
EBITA-%, adjusted 17.3% 13.8% 11.3%  
Group (consolidated)  Q1/2019  Q2/2019  Q3/2019 Q4/2019
Net sales, MEUR 16.7  16.8  13.3 17.3 
EBITA, MEUR, adjusted  2.9  2.1  1.2 1.8
EBITA-%, adjusted 17.2%  12.6%  9.2% 10.5%
Growth-%  Q1/2020  Q2/2020  Q3/2020 Q4/2020
Net sales, growth-%  12.8%  10.6%  22.1%  
EBITA, adjusted, growth-%  13.9%  20.8%  49.2%  

EBITA is operating profit before amortisation of goodwill. Adjusted EBITA refers to operating profit before amortisation of goodwill (EBITA) excluding adjusted items. These items refer to the non-recurring expense of the UK subsidiary’s divestment and related provisions, amounting to EUR 0.7 million during 1 January–30 September 2020.

Further information: 
Mikael Nylund, CEO, Gofore Plc 
tel. +358 40 540 2280
Certified Adviser: Evli Bank Plc, tel. +358 40 579 6210 

Gofore Plc is a Finland-based digitalization specialist with international growth plans. Together with our customers, we are pioneering an ethical digital world. We’re made up of over 700 impact-driven people across Finland, Germany, Spain and Estonia  top experts in our industry who are our company’s heart, brain, and hands. We use consulting, coding and design 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 2019, our net sales amounted to EUR 64.1 million. Gofore Plc’s shares are quoted in the Nasdaq First North Growth Market Finland. Learn more:   

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