Nixu Corporation's Half-Year Financial Report 2021: Improved profitability and building up for growth
Nixu Corporation, Stock Exchange Release on August 12, 2021 at 8:30 AM EEST
This release is a summary of the Nixu Corporation’s January 1 – June 30, 2021 Half-Year Financial report. The complete report is attached to this release as a pdf-file. It is also available on the company website at https://www.nixu.com/H12021.
Highlights for January–June 2021:
- Revenue: EUR 26,720 thousand (27,655), change -3%.
Organic growth: -3%. Managed continuous services declined by -1% representing 19% of revenue. - EBITDA: EUR 805 thousand (59), share of revenue: 3% (0%).
- Adjusted EBITDA: EUR 1,198 thousand (764), share of revenue: 5% (3%).
- EBIT: EUR -154 thousand (-1,066), share of revenue: -1% (-4%).
- Nixu reorganized its operations to increase cross-border alignment for improved customer experience, improved brand recognition and efficiency in staffing and deliveries.
Financial Guidance for 2021
Nixu changed its financial guidance for 2021 with a stock exchange release on June 23, 2021. According to the new guidance, Nixu estimates its revenue to remain on the same level and its EBITDA to decrease from 2020. Simultaneously investments to growth are increased.
Previous guidance for 2021: Nixu estimates its revenue to grow organically and its EBITDA to increase from 2020. Simultaneously investments to growth are increased.
Key Figures
| EUR thousand | 1 Jan-30 Jun 2021 | 1 Jan-30 Jun 2020 | 1 Jan-31 Dec 2020 |
| Revenue | 26,720 | 27,655 | 53,272 |
| Result of the period | -452 | -1,457 | -1,835 |
| Earnings per share (EUR) | -0.06 | -0.20 | -0.25 |
| EBITDA | 805 | 59 | 2,895 |
| EBITDA, % of net sales | 3.0 % | 0.2% | 5.4% |
| Adjusted EBITDA1,2 | 1,198 | 764 | 3,350 |
| Adjusted EBITDA, % of net sales1,2 | 4.5 % | 2.8% | 6.3 % |
| EBIT | -154 | -1,066 | -702 |
| EBIT, % of net sales | -0.6% | -3.9% | -1.3% |
| Adjusted EBIT1,2 | 238 | -361 | -247 |
| Adjusted EBIT %1,2 | 0.9% | -1.3 % | -0.5 % |
1 Adjustment items are material items outside the ordinary course of business, which costs related to reorganization and business combinations. January-June 2021 EBITDA included the non-recurring costs EUR 393 (705) thousand.
2 The figures for the comparison period have been adjusted for COVID-19 NOW benefit from other operating income to adjustment items. The effect on the adjustment items is 1 Jan-30 Jun 2020 EUR 147 thousand and 1 Jan-31 Dec 2020 EUR 337 thousand.
| EUR thousand | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
| Equity ratio, % | 32.9% | 32.5% | 34.4% |
| Net interest-bearing debt | 2,156 | 2,538 | 2,244 |
| Net gearing, % | 16.0% | 18.0% | 16.0% |
The figures presented in the half-year financial report have not been audited.
Petri Kairinen, CEO of Nixu:
The first half of 2021 continued to be tinged by the global coronavirus pandemic, which caused some instability in service deliveries. Cost savings during 2020 and the decrease in the number of employees contributed to the fact that the previous revenue level was not reached during the beginning of the year, and the revenue decreased by 3%. During this time the average number of employees was 38 persons (circa 9%) lower than in the comparison period. At the end of 2020, Nixu relaunched its efforts to accelerate growth investments, however, we were still able to significantly improve the EBITDA, which was EUR 805 thousand in H1 2021. We were also able to recruit efficiently and at the end of the period were only 14 persons less than in the comparison period.
Nixu’s strategy relies firmly on the growing need of digitalizing companies to have a specialized cybersecurity partner alongside them. Nixu’s target clientele are especially internationally operating enterprises, which we want to serve with the One Nixu model and services in the different markets were we operate. Because of this we changed our operating model during the period. With the new model, we strive for a better customer experience for these clients, better Nixu brand visibility in markets outside Finland, and improved profitability with better-optimized deliveries as a result of a truly international operating model and teams.
In connection with the change in the operating model, we formed a new business unit focused on ensuring the security of IoT devices. In April, we strengthened our position in Denmark’s fragmented cybersecurity market when the employees of Danish cybersecurity company C-cure transferred to Nixu. Throughout the review period, we have invested heavily in ensuring the deployment of the new operating model along with client work, personnel and recruitment, and training of new experts in the cybersecurity sector.
During the economically uncertain pandemic period, many companies’ cybersecurity measures and development projects have not kept pace with the accelerating digitalization trend. We are now seeing signs that these postponed cybersecurity projects are again relevant, and we believe market demand will continue to grow during the latter half of the year in countries where Nixu operates. Together with increased recruitment, a more client- centric operating model and bright market outlook for cybersecurity services, we are well positioned to continue serving our clients successfully across Northern Europe.
Financial Reporting in 2021
Nixu publishes, in addition to its financial statements and annual report, its half-year financial report, CEO’s review, revenue information and EBITDA for the first and third quarters, and stock exchange and press releases in accordance with Nixu’s disclosure policy. These releases and a range of other information for investors is available on the company website at https://www.nixu.com/investors.
October 14, 2021 Q3/2021 CEO’s review, revenue information and EBITDA
News conference
A news conference will be available for analysts, investors and media on Thursday, August 12, 2021 at 9:30 AM EEST at Scandic Simonkenttä, Simonkatu 9, Helsinki. The event will be available through a live webcast at https://nixu.videosync.fi/2021-08-12-nixu-corporation-h1-2021.
Nixu Corporation
Attachment: Nixu Half-Year Financial Report 2021
Further information:
CEO Petri Kairinen, Nixu Corporation
Telephone: +358 40 832 1832, e-mail: petri.kairinen@nixu.com
Distribution:
Nasdaq Helsinki
Main media
www.nixu.com
Nixu in Brief:
Nixu is a cybersecurity services company on a mission to keep the digital society running. Our passion is to help organizations embrace digitalization securely. Partnering with our clients we provide practical solutions for ensuring business continuity, an easy access to digital services and data protection. We aim to provide the best workplace to our team of over 400 cybersecurity professionals with a hands-on attitude. With Nordic roots we serve enterprise clients worldwide. Nixu shares are listed on the Nasdaq Helsinki stock exchange.
www.nixu.com