Gofore Plc
Interim Report (Q1 and Q3)
29 April 2025 at 8.30 am EET
Gofore’s Interim Report January-March 2025: Profitability weakened by free capacity and individual delivery challenges
January-March 2025
- Net sales decreased by 5.7%, and profitability weakened, with adjusted EBITA at 8.0% (13.8%). The decline in profitability is attributed to both high free capacity and individual delivery challenges.
- Change in customer prices from January to March was -2.4%; without projects exceeding the work estimates, the price change would have been +0.3%.
- The average salary change was +0.1% (+3.6%).
- The number of employees increased to a total of 1,469 (1,456) people.
- Total capacity stood at 1,527 (1,531), and Gofore continued cautious recruitment until the end of the review period.
- Gofore initiated change negotiations in Finland on 14 April 2025.
The interim report is attached to this release and can be found on Gofore’s IR website at https://gofore.com/en/invest/. The report includes e.g. the most significant new agreements, an extensive key figure table, profit and loss statement and balance sheet, as well as Gofore’s market outlook and near-term risks. This is an IAS34 compliant interim report. The numbers are unaudited.
Key Figures
|
EUR thousand, unless otherwise specified |
Q1/2025 |
Q1/2024 |
2024 |
|
Net sales |
46.4 |
49.2 |
186.2 |
|
Organic Growth of Net Sales, % |
-5.7% |
-1.9% |
-3.2% |
|
Adjusted EBITA |
3.7 |
6.8 |
23.9 |
|
Adjusted EBITA, % |
8.0% |
13.8% |
12.8% |
|
EBITA |
3.7 |
6.8 |
24.4 |
|
Operating Profit (EBIT) |
2.8 |
5.8 |
20.8 |
|
Earnings per share (EPS), undiluted |
0.11 |
0.27 |
1.04 |
|
Earnings per share (EPS), diluted |
0.11 |
0.27 |
1.02 |
|
Number of employees at the end of period |
1,469 |
1,456 |
1,471 |
|
Overall capacity; own and subcontracted personnel (FTE) |
1,527 |
1,531 |
1,539 |
CEO Mikael Nylund:
“In the first quarter, as customer demand remained weak, Gofore’s revenue decreased by 5.7%, amounting to 46.4 million euros. At the same time, our profitability declined, and the adjusted EBITA was 8.0% due to poor capacity utilisation and individual delivery challenges in customer projects.
At the beginning of 2025, the high level of free capacity caused by discontinuities in projects could not be effectively utilised during the first quarter. This reflects customers’ ongoing caution in committing to new investments and the continuation of cost-saving programs. Hesitation has been exacerbated by strong uncertainty related to international trade and the threat of a trade war.
The uncertain outlook also led to the announcement in April of Gofore’s first-ever change negotiations aimed at reducing headcount. Our goal is to ensure that Gofore remains the best possible partner for our customers in digital transformation for the long term by reducing a maximum of 95 employees. Unfortunately, the prolonged period of weaker demand that began in 2023 has meant a trend of increasing free capacity, known as “bench” consultants. This, in turn, indicates that our available expertise no longer sufficiently meets customer needs, but rather reflects a partially chronic bench capacity.
As customer needs change, we are required to take more drastic measures to ensure an effective match between the expertise available and market needs.
The quarter’s results were also burdened by challenges in certain customer projects. This is quite unusual for us. According to our estimate, we lost about one million euros in net sales during the quarter due to delivery challenges. In addition to the challenges, such fixed-price and ceiling-price projects also provide Gofore with valuable learning opportunities and a chance to develop.
Gofore remains a growth company. We are not facing the new market situation in the IT sector solely through savings and efficiency but are actively seeking new growth. We are implementing our strategy through our customer-oriented organization that has been operational since the beginning of the year. We are investing in growing areas of our broad offering, such as data, artificial intelligence, cybersecurity, as well as architecture, ERP, and technology management services. We will continue to invest in our services and concepts so that we can continue to provide exceptional value to our customers.
Although reducing personnel would be a difficult decision, we believe that only through success can we ensure the best possible employee experience in the long term. Without a financially sustainable foundation, it would not be possible to continue investing in the expertise and wellbeing of our experts. For us, these factors form the basis of the most attractive employer brand, and therefore we see the planned actions as essential for attracting the best employees.
The journey towards improvement is also supported by valuable wins in the customer field. We will continue our excellent collaboration with Traficom for the next five years. We were also chosen as a partner for HSY and, in April, with a very broad offering, as a partner for the Employment Fund for their IT development needs. A great example of IT development supporting ESG progress is Valio’s Esko tool. We discuss these customers in this review.
There were no significant changes in the German-speaking European market during the review period. Throughout 2024, the savings implemented by customers continue to burden our operations, although new projects have partially compensated for the shortfall. However, Friedrich Merz‘s likely new government’s program, with its revitalizing measures, creates hope and confidence for the future. We are pleased to see that the upcoming government’s program includes significant measures to promote the digitalization of public administration. It is noteworthy that, at the federal level in Germany, a digitalization ministry is being established for the first time.
The year 2025 began under challenging circumstances. It is still clear that digital technology continues to evolve. Our intention is to grow alongside technological development, in all market situations.”
Significant events after the review period
- Gofore announced on 7 April 2025 that it will begin change negotiations to adjust its structure to demand and to enhance efficiency.
- Gofore’s Annual General Meeting 2025 was held on 11 April in Tampere. Meeting resolutions and authorisations granted to the Board of Directors are listed in the report’s section Corporate Governance and Share Info.
- The Supreme Administrative Court of Finland announced on April 17, 2025, that the appeal filed by Solita Oy in June 2023 regarding the procurement of the Ministry of Foreign Affairs’ visa information system has been rejected. Consequently, the project remains with the procurement winner Knowit and its subcontractor Gofore.
Monthly net sales development in 2025
The numbers are unaudited.
|
Month |
Net sales, |
LTM pro forma |
No. of employees |
No. of working |
Own capacity, |
Subcontracting, |
|
January |
15.6 (16.9) |
184.9 |
1,470 (1,463) |
21 (22) |
1,387 (1,372) |
148 (147) |
|
February |
14.8 (16.3) |
183.3 |
1,470 (1,461) |
20 (21) |
1,381 (1,372) |
144 (149) |
|
March |
16.1 (16.0) |
183.4 |
1,469 (1,456) |
21 (20) |
1,379 (1,371) |
150 (160) |
Financial disclosure
Gofore’s next interim report will be the Half-year Report on 14 August 2025. Gofore also publishes business reviews for the months that are not included in interim reports or the half-year report, in the beginning of the month following the month reported.
Further information:
Mikael Nylund, CEO, Gofore Plc
Tel. +358 40 540 2280
mikael.nylund@gofore.com
About Gofore Oyj
Gofore is an international digital transformation consultancy with Finnish roots. We employ nearly 1,500 experts across 18 locations in Finland, Germany, Austria, Spain, and Estonia. With our technology and business expertise, we work for functional, secure and equal services for the digital society and sustainable solutions for the intelligent industry. Our diverse group of professionals share a pioneering ambition to create a more humane and responsible digital world. Our values guide our business: Gofore is a great workplace that thrives on customer success. In 2024, our net sales amounted to EUR 186,2 million. Gofore Plc’s share is listed on the Nasdaq Helsinki Ltd. in Finland. Our vision is to be the most significant digital transformation consultancy in Europe. Discover more about us at gofore.com