Continued good development
Summary of period, January–December 2020
- Net sales SEK 1,313 million (1,156)
- EBITA was SEK 345 million (247), with an EBITA margin of 26% (21)
- Operating profit was SEK 222 million (144), with an operating margin of 17% (12)
- Profit after net financial items SEK 208 million (130)
- Earnings per share before dilution totaled SEK 4.93 (3.16)
- Cash flow from operating activities SEK 436 million (283)
- The Board of Directors propose a dividend of SEK 1.64 per share (1.35)
Summary of period, October–December 2020
- Net sales SEK 362 million (298)
- EBITA was SEK 98 million (53), with an EBITA margin of 27% (18)
- Operating profit was SEK 65 million (26), with an operating margin of 18% (9)
- Profit after net financial items SEK 61 million (21)
- Earnings per share before dilution SEK 1.43 (0.49)
- Cash flow from operating activities SEK 61 million (56)
- The Finnish software company NexGolf Oy is acquired
In terms of earnings, the year has progressed well – for the first time our recurring revenues reached over SEK 1 billion. They increased by 19%, almost 4% of which is organic and accounts for 82% (79) of total revenue. We invested SEK 162 million (139) in our product portfolio and we have increased the number of employees. Today we have 27 operational business units and we completed 5 acquisitions during the year that added about SEK 150 million in sales.
Conditions have changed in terms of the work environment. The pandemic has entailed new laws, constantly changing rules and recommendations to observe, as well as closed borders within the Nordic region. For us with a pronounced Nordic strategy and presence, the closed borders have felt both completely unexpected and, of course, undesirable. I hope that the wounds between the countries caused by the events of 2020 can heal quickly and that once some time has passed in 2021, we can regain the feeling of a more unified Nordic region than is currently the case.
The pandemic restrictions have affected our internal working methods within the Group, but not our ability to pursue business and to serve our customers. We have a clear strengthening of the operating margin at 17% (12). However, we believe that about one percentage point of the improved margin is a positive effect of factors such as reduced travel in the Group. This means that we cannot be certain that about SEK 13 million of the improvement in profit will be permanent. We also had SEK 6 million in positive net gain from temporary general government pandemic relief measures during the first half of the year.
Our financial position is solid and we are well prepared for the future and for continued acquisition-based growth. Supported by our acquisition of well-established companies and a high and increasing percentage of recurring revenues, Vitec will stay its course – to be a vertical software company with excellent risk diversification and sustainable, profitable growth – and thereby increase our dividends for the nineteenth consecutive year. Finally, I would like to warmly thank all of our employees, who responsibly and creatively developed new working methods during the pandemic, while working from home with only digital interaction with both coworkers and customers. A difficult equation was solved with excellent results.
Lars Stenlund, CEO
For more information, please contact
Patrik Fransson, Investor Relations, Vitec Software Group AB (publ), firstname.lastname@example.org, mob. +46 76 942 85 97
This information is such information that Vitec Software Group AB (publ) is required to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. (CET) on Thursday, February 11, 2021.
Vitec is market leader for Vertical Market Software in the Nordic region. We develop and deliver standard niche software. Vitec grows through acquisitions of well-managed and well-established software companies. The Group's overall processes together with the employees' indepth knowledge of the customer's local market enables continuous improvement and innovation. Our 950 employees are based in Denmark, Finland, Norway and Sweden. Vitec is listed on Nasdaq Stockholm and had net sales of SEK 1,313 million in 2020. Find more at www.vitecsoftware.com.