Vitec Software Group AB Interim report January - September 2021
Summary of interim period, January–September 2021
- Net sales SEK 1,150 million (951), an increase of 21%
- Recurring revenues SEK 975 million (796), an increase of 22% including 9% organic
- EBITA was SEK 327 million (247), with an EBITA margin of 28% (26)
- Operating profit was SEK 213 million (158), with an operating margin of 18% (17)
- Earnings per share before dilution SEK 4.55 (3.51)
- Cash flow from operating activities SEK 430 million (375)
Summary of interim period, July–September 2021
- Net sales SEK 380 million (321), an increase of 19%
- Recurring revenues SEK 336 million (277), an increase of 21% including 8% organic
- EBITA was SEK 109 million (86), with an EBITA margin of 29% (27)
- Operating profit was SEK 71 million (61), with an operating margin of 19% (19)
- Earnings per share before dilution SEK 1.48 (1.32)
- Cash flow from operating activities SEK 89 million (73)
- Directed share issue of SEK 920 million, acquisitions of Ecclesia and Vabi
Acquisition outside the Nordics and share issue
We have been extremely busy during the third quarter, which is usually dominated by holiday periods. We completed two acquisitions, first Ecclesia, an add-on acquisition that is an excellent complement to our offering in vertical software for church-related administration in Norway. This acquisition is an example of how we can also add small businesses to existing business units. The other acquisition is our first outside the Nordic countries, Vabi in the Netherlands. The Dutch market leader in building simulation, energy certification and energy advisory software within the real estate market, Vabi enables its customers to meet increasingly ambitious environmental targets that are set in-house or by the authorities. We also completed a directed share issue that added SEK 920 million before issuing costs, which strengthens our balance sheet and provides a solid base that enables us to continue to be a profitable growth company in vertical software with a clear acquisition strategy. The significantly oversubscribed issue broadened our ownership base and we are pleased to welcome several new well-known Nordic financial institutions as owners.
A lower new case rate and relaxed restrictions in the countries in which we operate bring opportunities to meet with our customers and colleagues once again, both physically and digitally. The takeaway from our work during the pandemic includes many good examples of how we can run our businesses more sustainably, with less travel, increased focus and more efficient meetings. Based on these lessons learned and combined with the innovative power of human encounters, we see a bright future with continued growth for Vitec moving forward.
The share of recurring revenues is 88% for the period and 85% cumulatively, which is fully in line with our aims. We also see that our organic growth remains relatively steady, well ahead of growth in the economy at large. This trend is due to a number of factors, including increased customer inflow, additional sales to existing customers and increases in our volume-dependent services such as digital signing and messaging services.
Regarding earnings, we can once again report a quarter with increased margins compared with the same period last year, although our overhead expenses are still a bit too low. The increased margins are the result of the efforts of all business units to grow their businesses, involving many small continuous improvements and a long-term perspective. That is how we foster continued sustainable growth at Vitec.
Olle Backman, CEO
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, October 14, 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. Vitec has 1,000 employees, is listed on Nasdaq Stockholm, and had net sales of SEK 1,313 million in 2020. Find more at www.vitecsoftware.com.