Vitec Software Group AB Interim report January - June 2021
Summary of interim period, January–June 2022
• Net sales SEK 895 million (769), an increase of 16%
• Recurring revenues SEK 763 million (639), an increase of 19% including 8% organic
• EBITA SEK 250 million (218), an increase of 15%
• EBITA margin 28% (28)
• Operating profit SEK 158 million (142), an increase of 11%
• Operating margin 18% (18)
• Earnings per share before dilution SEK 3.28 (3.06)
• Cash flow from operating activities SEK 402 million (340)
Summary of interim period, April–June 2022
• Net sales SEK 449 million (396), an increase of 13%
• Recurring revenues SEK 384 million (325), an increase of 18% including 8% organic
• EBITA SEK 120 million (121), a decrease of 2%
• EBITA margin 27% (31)
• Operating profit SEK 74 million (86), a decrease of 14%
• Operating margin 17% (22)
• Earnings per share before dilution SEK 1.52 (1.85)
• Cash flow from operating activities SEK -43 million (30)
• Acquisition of Hotellinx Systems Oy and Scanrate Financial Systems A/S
Stable growth in both sales and earnings
As we summarize the first half of 2022, Vitec continues to show stable growth in both sales and earnings. Growth for the six months, compared with the corresponding year-earlier period, was +16%. EBITA increased by 15% and the EBITA margin was in line with last year’s at 28%, which we see as improvements, given the excessively low overhead level for the comparison period. As we commented in the previous report, we successfully made this year’s price increases, but now we have also had increases in costs mainly in the form of increased personnel costs. Important highlights in the spring were that we were able to carry out prospective marketing work and were also able to hold long-awaited staff meetings.
The quarter offered two acquisitions: first, the Finnish Hotellinx, whose software supports processes for booking and working procedures for hotels, restaurants, spa and conference facilities. Subsequently, an agreement was signed for the acquisition of Danish Scanrate, with software for analysis, valuation and risk management aimed at the Danish bond market, the completion of which is subject to approval by the Danish authorities. Right after the end of the period, we announced our largest acquisition to date in Dutch ABS, which develops, delivers, and maintains an ERP application for the global laundry and textile rental industry. Through this acquisition, Vitec becomes even more international with employees and customers both in Asia and North America, at the same time that our focus on vertical software remains firm.
On an annual basis, the four acquisitions of the year to date will contribute about SEK 300 million in sales, with good profitability. All of the companies are well-established, profitable vertical software companies that meet our acquisition criteria at the same time as we see great similarities in culture and values, which provides excellent conditions for continued collaboration and growth. During the period, we renewed and expanded our credit limits at good terms, which, together with our stable cash flows, gives us headroom for future acquisitions.
Olle Backman, CEO, Vitec Software Group
For more information please contact
Patrik Fransson, Investor Relations, Vitec Software Group AB (publ), patrik.fransson@vitecsoftware.com, +46 76 942 85 97
Disclaimer
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 persons set out above, at 8:00 a.m. (CET) on July 15, 2022
About Vitec
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 1,020 employees, is listed on Nasdaq Stockholm, and had net sales of SEK 1,571 million in 2021. Find more at www.vitecsoftware.com.