Vitec Software Group AB Interim report January - June 2021
Summary of interim period, January–June 2021
- Net sales SEK 769 million (630), an increase of 22%
- Recurring revenues SEK 639 million (519), an increase of 23% including 8% organic
- EBITA was SEK 218 million (161), with an EBITA margin of 28% (26)
- Operating profit was SEK 142 million (97), with an operating margin of 18% (15)
- Earnings per share before dilution SEK 3.06 (2.19)
- Cash flow from operating activities SEK 340 million (302)
Summary of interim period, April–June 2021
- Net sales SEK 396 million (321), an increase of 24%
- Recurring revenues SEK 325 million (266), an increase of 22% including 9% organic
- EBITA was SEK 121 million (96), with an EBITA margin of 31% (30)
- Operating profit was SEK 86 million (64), with an operating margin of 22% (20)
- Earnings per share before dilution SEK 1.85 (1.52)
- Cash flow from operating activities SEK 30 million (69)
- Acquisition of Nordman
Stable business model continues to deliver
This is my first quarterly report as the CEO of Vitec and in many ways, it is “business as usual, but in an unusual way,” which is fully in line with how we want to move forward. To further underscore the long-term nature of our strategy and approach, I would like to start with our co-founder and chairman Lars Stenlund’s favorite conclusion to many of his 100+ report comments as CEO: 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, as well as sustainable and profitable growth.
In terms of earnings, we are pleased once again to see organic growth, especially in our recurring revenues, +8% so far this year and +7% for rolling 12-month ARR. During the second quarter, we completed our third acquisition of the year: Nordman, with sales support software for customers such as retailers, which will be a new vertical for us. EBITA for the first half increased by +35% to a margin of 28%. We continue to believe that around 1 percentage point of the margin is not sustainable since it is based on non-existent travel, low marketing costs and some delayed hiring.
Over the past 16 months we have lived with a pandemic that has affected everything around us, both privately and professionally. Our business model has proven to be both stable and evolving. We will synthesize the good examples of how we can work together and continue to evolve. This makes us well prepared for further good development and growth.With presumably eased restrictions, many of us are looking forward to meeting colleagues and customers again after the summer, to give an extra boost to the creative process that characterizes a software company like Vitec.
Have a great summer!
Olle Backman, CEO Vitec Software Group
For more information, please contact:
Patrik Fransson, Investor Relations, Vitec Software Group AB (publ), email@example.com, mobile +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 and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. (CET) on Thursday, July 15, 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' in-depth knowledge of the customer's local market enables continuous improvement and innovation. Our 975 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.