Company Announcement 9.4.2020

Gofore Plc: Gofore Plc’s Business Review 1 March-31 March 2020: March net sales to a record level – good profitability in the first quarter


Gofore Plc’s Business Review 1 March31 March 2020: March net sales to a record level – good profitability in the first quarter

Gofore’s net sales in March 2020 were EUR 6.8 million (2019: EUR 6.1 million). The Group had a total of 585 employees (544 employees) at the end of the period.

Net sales for the first quarter (1 January–31 March, 2020) were EUR 18.8 million and increased by 12.8% (EUR 16.7 million). The Group’s comparable adjusted EBITA (EBITA, adjusted for non-recurring items) for the quarter was EUR 3.3 million, corresponding to 17.3% of net sales (EUR 2.9 million corresponding to 17.2% of net sales).

The Group’s reported EBITA (operating profit before goodwill amortisation) for the quarter was EUR 2.5 million, corresponding to 13.5% of net sales (EUR 2.9 million corresponding to 17.2% of net sales). Operating profit was reduced by non-recurring costs and provisions related to the divestment of the UK subsidiary’s business.

CEO Mikael Nylund comments on development:

“Since the burst of the coronavirus epidemic, our focus has been on ensuring the safety and health of our employees and stakeholders, and ensuring business continuity. March was exceptional for us and the world at large. Gofore’s customers and employees have shown a remarkable ability to adapt to completely new conditions. In our customer projects we quickly moved to a 100% decentralised remote working model, as did all of our other operations. I am immensely proud of the shared crisis situational awareness raised and a common will to succeed in overcoming the crisis.

Despite the exceptional circumstances, Gofore reached record net sales in March. With that, the whole first quarter settled at a level we can be happy with. In addition to the corona crisis, the divestment of the UK subsidiary happened in the first quarter. Adjusted for non-recurring expenses, EBITA (EUR 3.3 million) also gave cause for satisfaction, and the relative profitability reached above the same excellent level as that of the first quarter the previous year (2020: 17.3 %, 2019: 17.2 %).

In addition to the acute but successful change to remote work, the positive news in March was the continuation of our long-term cooperation with the Finnish National Agency for Education. With the winning of the tender, the further development and maintenance of the Studyinfo service will continue well into the future. At the beginning of March, Gofore was chosen as the employer brand of the year in Finland, which was a great recognition of our corporate culture.

While the corona crisis continuing, we can be happy that we are doing meaningful work for our customers and that the projects we are doing are perceived as so important that customers have decided to continue them despite the crisis. I strongly believe that digital services and infrastructure play a key role in ensuring the operational reliability of society. I am proud that we are involved at the forefront of this development.

Managing the corona crisis continues to be a focus for our management. We constantly monitor the development of operations from the following aspects:

  • Efficiency of remote work. We invest in providing our customers with at least the same value as in a normal situation. Working remotely doesn’t hinder this.
  • The health and well-being of goforeans. Everyday life has changed a great deal for many. For this reason, we monitor the situation particularly closely and take care of the well-being of our employees.
  • Development of customer demand. So far, the immediate effects have been limited and development work with customers has continued. Our customers continue to launch development projects and carry out large-scale tenders. Many development projects are also clearly postponed.

Society as a whole and also businesses are now living in a time of uncertainty. Gofore is not immune to the effects of the corona either, but the financial development of our customers is likely to be reflected in our business and especially in the development of the market. We will continue to report on the development of the situation on a monthly basis”.

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 EBITA and 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,
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.
4 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.

For more information on the agreement with the Finnish National Agency for Education, see the company announcement published on 19 March 2020:

Further enquiries:
Mikael Nylund, CEO, Gofore Plc
tel. +358 40 540 2280

Certified Adviser: Evli Bank Plc, tel. +358 40 579 6210

Gofore Plc is a Finnish digitalisation specialist with international growth plans. We’re made up of close to 600 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 to know us better at

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