Innofactor Plc Financial Statement 2023 (IFRS)
Innofactor Plc Financial Statement February 8, 2024, at 9:00
a.m. Finnish time
Innofactor’s full-year net sales for 2023 grew by 12.8
percent and exceeded EUR 80 million for the first time – EBITDA
also increased to an all-time high of over EUR 9
million
October–December 2023 in brief:
- Net sales were approximately EUR 21.9 million (2022: 20.5),
representing an increase of 6.8%
- The operating margin was approximately
EUR 2.9 million (2022: 2.6), which shows an increase of 10.2%
- Operating profit was EUR 1.9 million
(2022: 1.8), representing an increase of 7.0%
- The order backlog at the end of the
review period was EUR 71.6 million (2022: 75.8),
representing a decrease of 5.6%
- We transferred part of the order
backlog to the framework agreement backlog, which had a value of
EUR 29.8 million at the end of the quarter (2022: 18.9)
- Innofactor received several
significant orders in the fourth quarter, for example:
- Continued development and maintenance
of IF Metall’s membership management system, approximately EUR 1.6
million
- A comprehensive system delivery to
Tampereen Infra Oy, EUR 1.6 million
January–December 2023 in brief:
- Net sales were approximately EUR 80.3 million (2022: 71.1),
which shows an increase of 12.8%
- Of the growth, approximately 9.1% was
organic, excluding the Invenco acquisition of June 30, 2022
- The operating margin was approximately
EUR 9.1 million (2022: 7.8), representing an increase of 16.6%
- Operating profit was EUR 5.8 million
(2022: 4.8), which shows an increase of 22.8%
Key figures of the group, IFRS
. |
Oct 1–Dec 31, 2023 |
Oct 1–Dec 31, 2022 |
Change |
|
Jan 1–Dec 31, 2023 |
Jan 1–Dec 31, 2022 |
Change |
Net sales, EUR
thousand |
21,930 |
20,536 |
+6.8% |
|
80,263 |
71,130 |
+12.8% |
Growth of net
sales |
6.8% |
17.1% |
|
|
12.8% |
7.2% |
|
Operating
result before depreciation and amortization (EBITDA), EUR
thousand |
2,879 |
2,612 |
+10.2% |
|
9,101 |
7,808 |
+16.6% |
percentage of net sales |
13.1% |
12.7% |
|
|
11.3% |
11.0% |
|
Operating
profit/loss (EBIT), EUR thousand |
1,931 |
1,805 |
+7.0% |
|
5,835 |
4,751 |
+22.8% |
percentage of net sales |
8.8% |
8.8% |
|
|
7.3% |
6.7% |
|
Earnings
before taxes, EUR thousand |
1,623 |
1,678 |
-3.3% |
|
5,174 |
4,178 |
+23.9% |
percentage of net sales |
7.4% |
8.2% |
|
|
6.4% |
5.9% |
|
Earnings, EUR
thousand |
878 |
1,328 |
-33.9% |
|
3,438 |
3,320 |
3.6% |
percentage of net sales |
4.0% |
6.5% |
|
|
4.3% |
4.7% |
|
Order
backlog |
71,555 |
75,831 |
-5.6% |
|
71,555 |
75,831 |
-5.6% |
Net
gearing |
36.1% |
50.0% |
-13.9% |
|
36.1% |
50.0% |
-13.9% |
Net gearing
without IFRS 16 |
23.1% |
30.0% |
-6.9% |
|
23.1% |
30.0% |
-6.9% |
Equity
ratio |
48.3% |
44.8% |
+3.5% |
|
48.3% |
44.8% |
+3.5% |
Equity ratio
without IFRS 16 |
51.5% |
49.2% |
+2.3% |
|
51.5% |
49.2% |
+2.3% |
Active
personnel on average during the review period* |
581 |
562 |
+3.4% |
|
578 |
536 |
+7.8% |
Active
personnel at the end of the review period* |
581 |
564 |
+3.0% |
|
581 |
564 |
+3.0% |
Earnings per
share (EUR) |
0.02 |
0.04 |
-33.9% |
|
0.09 |
0.09 |
3.6% |
*) In accordance with IFRS 3, the operating result for October
1–December 31, 2023, includes EUR 184 thousand (2022: 55), and the
operating result for January 1–December 31, 2023, EUR 359 thousand
(2022: 277) in depreciations related to acquisitions, consisting of
allocations of the purchase price to intangible assets.
**) The Innofactor Group monitors the number of active
personnel. The number of active personnel does not include
employees who are on leave for more than three months.
Innofactor’s future outlook for 2024
Innofactor’s net sales and operating margin (EBITDA) in 2024 are
estimated to increase from 2023, during which net sales were EUR
80.3 million and the operating margin was EUR 9.1 million.
CEO Sami Ensio’s review: We achieved a good result in the fourth
quarter and for the full year in spite of the challenging market
situation
Our net sales in the fourth quarter of 2023 amounted to EUR 21.9
million, representing year-on-year growth of 6.8 percent. Net sales
increased in Finland and, denominated in the local currency, in
Norway. Net sales decreased in Sweden and Denmark. Net sales per
employee increased by 3.3 percent. The operating margin (EBITDA)
increased by 10.2 percent year-on-year and came to EUR 2.9 million
(13.1 percent of net sales). In the fourth quarter of 2023, EBITDA
was positive in Finland but negative in the other countries. The
order backlog at the end of the quarter amounted to EUR 71.6
million (2022: 75.8), representing a year-on-year decrease of 5.6
percent. We transferred part of the order backlog to the framework
agreement backlog, which had a value of EUR 29.8 million at the end
of the quarter (2022: 18.9).
Net sales for the full year 2023 totaled EUR 80.3 million,
representing year-on-year growth of 12.8 percent. The operating
margin (EBITDA) operationally was EUR 9.1 million (11.3 percent of
net sales). We achieved good business growth in Finland and Norway
in 2023, and profitability was positive in those countries. In
Sweden and Denmark, net sales decreased in 2023 and profitability
was negative. Our goal is to achieve a turnaround in growth and
profitability in Sweden and Denmark in 2024. In the Information and
Case Management solution area, which is based on our Dynasty
product, we achieved growth of 29.8 percent in 2023 and the EBITDA
was 29.0 percent in spite of the fact that the solution area is
allocated product development costs amounting to 14.6 percent of
net sales on a cost basis. Net sales of SaaS and licenses represent
60.9 percent of the solution area’s net sales. Net sales of SaaS
and licenses increased by 31.9 percent in 2023. Innofactor reached
record-high net sales and EBITDA in 2023.
Price competition in the markets remained intense in the fourth
quarter of 2023, although the weighted average prices of new
contracts continued to increase slightly from the preceding
quarter. We expect customer prices to continue to increase in 2024,
although we predict that the situation will remain challenging at
least for the first half of the year.
Our sales performance was excellent in the fourth quarter. Among
other contracts, we signed a contract to continue the development,
maintenance and support of IF Metall’s membership management system
in Sweden, valued at approximately EUR 1.6 million, and a contract
on a comprehensive system delivery to Tampereen Infra Oy in
Finland, valued at approximately EUR 1.6 million. In spite of the
challenging competitive situation, we were able to even slightly
increase our average selling price in 2023 compared to 2022. Our
strong order backlog, framework agreements and other purchases by
existing customers enable Innofactor to operate profitably.
In 2023, we managed to increase the share of SaaS and licenses
to approximately 31.5 percent of net sales, compared to
approximately 27.3 percent in the previous year. Increasing the
share of SaaS and licenses is one of our key strategic objectives,
and our target is to increase it to over 33 percent in the long
term.
In 2023, Innofactor published a sustainability strategy, which
is divided into four areas: we innovate for good, we are fair, we
put people first, and we build trust.
Innofactor’s strength lies in our highly competent and motivated
personnel. In 2023, we strengthened our team, trained our
personnel, completed certifications and developed our organization
and management style. Innofactor’s company-specific collective
agreement for Finland was signed in early 2023. The aim of the
company-specific collective agreement is to make it possible to
agree on issues that are important to our personnel, and to have a
more straightforward and easy-to-understand collective agreement
that reflects us as a company and supports our values. At the end
of 2023, we established a personnel bonus fund. Our employees can
transfer their performance bonuses to the fund, and bonuses
transferred to the fund are subject to increases. In accordance
with its rules, the fund invests in Innofactor Plc’s shares.
Generative artificial intelligence (ChatGPT, Microsoft Azure
Open AI and Microsoft Copilot) received growing attention in the
market in 2023. Generative AI presents our customers – and
Innofactor – with significant opportunities for improving
operational efficiency. Above all, it opens up significant new
business opportunities for Innofactor, and we have quickly
developed new offerings in response to these opportunities. We see
Copilot for Microsoft 365 as particularly significant, as we expect
it will enable us to grow our business in co-operation with our
main partner Microsoft.
Innofactor’s aim is to be the leading provider of organizations’
digital transformation in each of the Nordic countries. We believe
in our chosen Nordic strategy and in reaching our long-term goals.
This requires perseverance and determination from the company's
management and employees as well as investors. Innofactor is still
actively looking for new strategic partnerships in the Nordic
countries. The Group’s goal is to grow both organically and through
acquisitions.
I am pleased that we were able to use our distributable funds to
purchase our own shares in 2023 and will be able to distribute
funds to our shareholders for the year 2023 in accordance with our
dividend policy at EUR 0.06 per share (2022: EUR 0.08 per share). I
want to take this opportunity to thank our customers, partners,
employees, and investors for the year 2023.
Strategy and its realization in the review period
Innofactor’s strategy comprises our purpose, mission, vision,
strategic choices, values, working principle, and long-term
financial goals.
Our purpose: Innovating to make the world work better
Our mission: Driving the modern digital organization
Our vision: Leading Nordic digital transformation partner in the
Microsoft ecosystem
Our strategic choices:
- The most competent Nordic teams
- Productized and specialized
offering
- Proactive and agile way of
working
- Innovation with top customers
Our values:
- Accountability
- Empowerment
- Innovation
- Customer
Our working principle: Our principle is to put people first in
everything we do. We want to provide solutions that make our
customers’ everyday work and life run smoothly and bring a smile to
their faces.
Employer promise: Be the real you
Our long-term financial goals:
- To achieve annual growth of about 20 percent, the majority of
which is intended to be achieved by organic growth
- To achieve about 20 percent EBITDA in
relation to the net sales
- To keep the cash flow positive and
secure good financial standing in all situations.
Innofactor’s net sales for the review period January 1–December
31, 2023, amounted to EUR 80.3 million (2022: 71.1), representing
year-on-year growth of 12.8 percent. Of the growth, approximately
9.1 percent was organic, excluding net sales derived from the
Invenco acquisition of June 30, 2022. We are lagging behind our
strategic growth target. We aim to further improve our operational
performance to drive growth. Our goal is to increase the number of
chargeable personnel, taking the order backlog into consideration.
During the review period, the number of personnel at Innofactor
increased by 7.8 percent year-on-year. We look for acquisition
targets to enable inorganic growth.
The operating margin (EBITDA) increased in the review period of
January 1–December 31, 2023, from EUR 7.8 million in the
corresponding period of the previous year to EUR 9.1 million (11.3
percent of net sales). While profitability has improved, continued
attention and efforts by the management are still needed in the
coming years to reach the long-term target of approximately 20
percent. We aim to further enhance our operational performance to
improve profitability. We will pay particular attention to
improving profitability in our operating countries outside
Finland.
Innofactor’s operating cash flow for the review period January
1–December 31, 2023, amounted to EUR 7.2 million (2022: 6.7) and
the equity ratio at the end of the review period was 48.3 percent
(2022: 44.8%). Innofactor’s strong operating cash flow supports the
company’s strategic goal of profitable growth and securing a solid
financial standing in all situations.
Board of Directors’ proposal on the distribution of profits
Innofactor is a growing company and intends to use its operating
profit on actions promoting growth, for example, on realizing
mergers. According to the dividend policy, Innofactor aims to pay a
dividend regularly each year. The target is to pay about half of
the result for the financial period in dividends, taking into
account the company’s financial position, possible corporate
reorganizations, and other development needs. For 2023, the Group’s
result for the financial period was EUR 3,437,985.22. In making the
proposal on the dividend, the Board of Directors takes into account
the company's financial situation, profitability and near-term
outlook.
At the end of the financial year 2023, the distributable assets
of the Group's parent company amounted to EUR 21,277,171.60.
The Board of Directors proposes that Innofactor Plc distribute
EUR 0.07 per share as a repayment of capital.
The Board of Directors further proposes that the Annual General
Meeting authorize the Board to decide on a repayment of capital
amounting to a maximum of EUR 2,544,058 (EUR 0.07 per share, taking
into account the share issue authorization proposed to the Board of
Directors).
Espoo, February 7, 2024
INNOFACTOR PLC
Board of Directors
Additional information:
CEO Sami Ensio, Innofactor Plc
tel. +358 50 584 2029
sami.ensio@innofactor.com
Briefings concerning the financial statement of January
1–December 31, 2023
Innofactor will publish the financial statement 2023 and interim
report for October–December 2023 (Q4) on Thursday, February 8,
2023, at approximately 9:00 a.m. Finnish time.
A briefing for media, investors and analysts will be held in
Finnish on the same day beginning at 10:00 via Teams. The report
will be presented by CEO Sami Ensio. The corresponding video
conference in English will be held at noon Finnish time. The report
will be presented by CFO Antti Rokala.
Please register for the conferences beforehand by sending an
e-mail to ir@innofactor.com.
The presentation materials will be available on Innofactor’s
website after the conferences.
Financial releases in 2024
The annual report for 2023 will be published on the company’s
website on Wednesday, March 6, 2024.
The Annual General Meeting will be held on Wednesday, March 27,
2024, at 9:00 Finnish time.
The schedule for financial releases in 2024 is as follows:
- Interim report January–March 2024 (Q1)
on Tuesday, April 23, 2024
- Half-yearly report January–June 2024
(Q2) on Thursday, July 18, 2024
- Interim report January–September 2024
(Q3) on Tuesday, October 22, 2024
Distribution:
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Main media
www.innofactor.com
Innofactor
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organization in the Nordic Countries for its over 1,000 customers
in commercial and public sector. Innofactor has the widest solution
offering and leading know-how in the Microsoft ecosystem in the
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specialists in Finland, Sweden, Denmark and Norway. The Innofactor
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- Innofactor Plc Financial Statement 2023 (IFRS)
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