Half Year financial report 15.8.2022

Gofore Plc: Gofore Plc’s Half-year Report for January-June 2022: Strategy execution continues to bring great results – net sales +40% and adjusted EBITA +54%

Gofore Plc
Half-year Report
15 August, 2022 AT 9 A.M. EET
Inside information

Gofore Plc’s Half-year Report for January-June 2022: Strategy execution continues to bring great results – net sales +40% and adjusted EBITA +54%

January-June 2022

  • Net sales grew by 40% to EUR 72.5 (51.7) million. Organic net sales growth accounted for well over half of total growth (25%).
  • Adjusted EBITA grew by 54% to EUR 10.7 (6.9) million. Adjusted EBITA %, 14.8, improved from comparison period (13.4%).
  • Number of employees grew by 34%, to a total of 1,074 (803) people.
  • Net sales from private sector customers grew by 58 % and public sector customers sales by 31%.
  • Raise in customer pricing was an average of 4.2% and salary raises on average 5.6% (both excl. Devecto), which means higher prices compensated for the impact of salary raises.
  • Net sales generated from outside of Finland grew, share of total net sales remained 9% – growth in both German business and projects delivered from Finland to international customers.
  • Business of Devecto, a company acquired in January, has developed as expected.

April-June 2022

  • 40% Group net sales growth to EUR 37.1 (26.4) million, organic net sales growth accelerated from Q1 to 27%
  • 63% adjusted EBITA increase to EUR 5.6 (3.4) million, improved adjusted EBITA %, 15.1% (13.0%)
  • Exceptionally active sales throughout the quarter, and Gofore was successful in tenders with e.g. CSC, Ministry of Forest and Agriculture, Tax Administration, City of Helsinki, Finnish Institute of Healthcare and Wellness and Ministry of Finance

About this report

The half-year report is attached to this release and can be found on Gofore’s IR website at https://gofore.com/en/invest/. The report entails e.g. a market review, a long key figure table, an income statement and a balance sheet, as well as key figures for July. This is an IAS 34 compliant interim report, and the numbers are unaudited.

Key figures

Group Key Figure Summary, MEUR H1/2022 H1/2021 2021
Net sales 72.5 51.7 104.5
Adjusted EBITA 10.7 6.9 14.6
Adjusted EBITA, % 14.8% 13.4% 14.0%
EBITA 10.2 6.8 14.5
Operating profit (EBIT) 8.4 5.7 12.2
Earnings per share (EPS)* 0.40 0.27 0.61
Number of employees at the end of period 1,074 803 852
Overall capacity; in-house and subcontracted staff (FTE), at the end of period 1,177 863 926
* EPS is equal whether diluted or 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:

“As Gofore turns 20 years this August, we can be very proud of the kind of company we have built: positively impactful, fantastically steady in both growth and profitability, treasuring both its staff and customers and a company that has been managed with the same values for 20 years. The first half of 2022 again goes to show we are consistently just that. We also continuously evolve to match the changing world and needs of the ongoing digitalization journey of our customers.

We are very pleased with the excellent, 40% net sales growth and 54% adjusted EBITA growth for our first half-year period of 2022. Our mission to promote ethical digitalisation took steps ahead throughout January-June with great new contracts that all portray the impact we want our work to have. Even the month of June, traditionally quieter than the rest of the year in Finland, was exceptionally busy sales-wise, which promises well for the rest of the year and beyond.

Growth with our private sector customers – an important foundation of our strategy – has continued strong. In January, the acquisition of Devecto made our offering even more attractive to the big companies in the intelligent industry space that we are targeting to partner with. We’ve managed to deepen our relationships with important customers and have again seen almost 60% growth with the private sector. We are all looking forward to its vast opportunities of the future.

Our long-standing foundation, the public sector, is just as important. We are involved in a huge number of societally impactful projects that build a smart, inclusive and well-functioning society. We facilitate, design and carry out digital change for the better. Finland was recently placed number one in the EU digitalisation comparison, so we have a lot to offer to other European countries.

Our outlook on the market remains positive. We are, however, seeing a higher level of uncertainty. The geopolitical situation remains unpredictable, the corona virus endemic persistent and rising inflation affects us as well as our clients. In the reporting period, our salaries and customer prices developed in sync, and we will continue to work hard to keep a good balance. Our customers are also in the midst of uncertainty. We keep a very close ear to any signs of changes in this regard.

The world is changing faster than ever, but digitalisation is a permanent state. As we celebrate our jubilee, we are also working on updating our strategy, and intend to communicate the new strategy by the end of 2022. Goforeans have shown great desire to meet our targets and I’m sure that same ambition will also carry us in the future.”

Monthly business development

Net sales, MEUR (Net sales 2021) 1 Number of employees at end of period 2 No. of working days in Finland Full Time Equivalent,
Subcontracting, FTE4
January 10.8 (7.5) 993 (727) 20 (19) 917 (679) 147 (109)
February 11.3 (8.1) 1,015 (736) 20 (20) 942 (689) 153 (111)
March 13.3 (9.7) 1,043 (792) 23 (23) 968 (735) 155 (118)
April 11.5 (8.5) 1,056 (791) 19 (20) 988 (743) 156 (112)
May 13,1 (8.8) 1,068 (799) 21 (20) 1,004 (755) 163 (109)
June 12.5 (9.1) 1,074 (803) 21 (21) 1,015 (755) 162 (108)

Comparing figures presented in brackets refer to the corresponding period of the previous year, unless stated otherwise. Devecto Oy’s figures have been consolidated into Gofore Group’s figures as of 3 January, 2022.  The last twelve months’ net sales number (LTM) is only published in business reviews.

1) Net sales, MEUR (net sales in 2021) indicates the unaudited net sales for the month in question.  
2) Number of employees at the end of the review period.
3) 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.
4) 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.

Webcast on 15 August at 1 p.m. EET

CEO Mikael Nylund and CFO Teppo Talvinko will present the half-year report in a live webcast today, 15 August, 2022 at 1 p.m. EET. The webcast is held in English and can be watched live at https://gofore.videosync.fi/2022-h1-results. Participants can send through questions during the webcast, and they will be answered at the end of the event. There is no need to sign up for the event. The presentations and a recording of the webcast will be available after the event on Gofore’s investor website.

Financial disclosures

Gofore’s next financial disclosure will be the January-September 2022 business review on Tuesday, 18 October, 2022. Gofore also publishes monthly business reviews, at the beginning of the following month as soon as numbers are available.

Further information:

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

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.


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