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Vitec Software Group AB Interim report January - March 2022

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Summary of interim period, January–March 2022

  • Net sales SEK 447 million (373), an increase of 20%
  • Recurring revenues SEK 378 million (313), an increase of 21% including 8% organic
  • EBITA was SEK 130 million (96), an increase of 36%
  • EBITA margin 29% (26)
  • Operating profit was SEK 83 million (56), an increase of 50%
  • Operating margin 19% (15)
  • Earnings per share before dilution SEK 1.76 (1.21)
  • Cash flow from operating activities SEK 445 million (310)
  • Acquisition DocuBizz ApS

Increased marketing activities, development initiatives and continued good growth

The year is off to a good start, with continued robust organic growth, +8% for our recurring revenues on a full-year basis. Total growth for the quarter compared with the corresponding year-earlier period is up +20%, EBITA rose 36% and operating profit grew an impressive 50% for the period. Margins also increased to 29% (26) for EBITA and 19% (15) for operating profit.

At the beginning of the year, we were able to adjust prices based on the index clauses included in many agreements; in recent years, this adjustment has not resulted in such large increases, but it now follows the general rising price trend in each market. Of course, there is also a corresponding increase on the expense side, mainly for our personnel costs, but this trend has not yet fully taken effect.

Cash flow is strong, which is in line with the seasonal pattern in which a high proportion of the recurring revenues for the year are paid in advance during the first quarter. These circumstances, along with continuous improvement in earnings, give us a strong financial position from which we are well prepared for future acquisitions.

We have also had a high level of activity in our product development, as well as a quarter with few holidays and vacations. A gradual return to the offices after the pandemic for both us and our customers has resulted in an increase in marketing activities, customer meetings and long-awaited creative and spontaneous meetings with colleagues.

At the beginning of the year we welcomed DocuBizz to the Vitec family, a Danish company who with their software streamlines and simplifies the management of supplier invoices for their customers in the automotive industry. During the period, the work with acquisition candidates has continued, and we see good opportunities 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. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. (CET) on April 22, 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.

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