Interim Report Q1 2022: Revenue growth of 111%

Company Announcement no. 8/2022
10 May 2022

The Board of Directors for Wirtek A/S has today approved the interim report for first quarter of 2021 for the Wirtek Group. The detailed interim report for Q1 2021 is attached to this announcement.

CEO Michael Aaen comments:

“Our strong momentum from 2021 continued in Q1 2022 with solid order intake, positive adjustment of our expectations to 2022 and the release of our updated growth strategy, Accelerate25XL. Revenue grew by 111% the first quarter of 2022 compared to Q1 last year and EBITDA was up 76%, although Wirtek has been investing heavily in building an even stronger organization to support the future growth. These are truly spectacular numbers!

Wirtek remains very well-positioned to gain from the intense focus on digitalization across all industries and public agencies which also shows in our updated long term revenue goal of DKK 130 million by 2025 and a corresponding pre-tax profit goal of DKK 15 million. We are very confident about the future.”

Financial highlights for the period 1 January – 31 March 2022

• Revenue grew by 111% to TDKK 16,341 during Q1 2022 compared to revenue of TDKK 7,747 during Q1 2021. The organic revenue growth was 41% during Q1.
• EBITDA was TDKK 2,598 in Q1 2022 compared to TDKK 1,478 for the same period last year, a growth of 76%.
• The EBITDA-margin for Q1 2022 was 15.9% compared to 19.1% during same period in 2021, down by 17% due to Investments in both strengthening the organisation and a new ERP system.
• Pre-tax profits (EBT) were TDKK 2,146 in Q1 2022 compared to TDKK 1,491 during Q1 2021, a growth of 44%.
• Cash holdings were TDKK 6,526 end of Q1 2022, up 21% from last year. Part of the cash-position is offset by a credit facility of TDKK 3,975. A positive cash flow of TDKK 1,736 was generated during Q1 2022, with operating activities generating TDKK 2,031 in cash.
• Headcount was 187 at the end of Q1 2022, a growth of 72% compared to Q1 2021. The acquisition of CoreBuild during 2021 has contributed significantly to the headcount growth.

Outlook for 2022

After signing a large, long-term contract with a new client on 3 March 2022 (see company announcement no. 3/2022), Wirtek raised the expectations for 2022.

• Revenue expectations for 2022 was raised to DKK 64.0m – 69.0m (up from a previous expectation of DKK 61.0m – 66.0m), a growth of 41% – 52% compared to 2021.
• EBITDA expectations for 2022 was raised to DKK 8.6m – 9.6m (up from a previous expectation of DKK 7.5m – 8.5m), a growth of 39% – 54% compared to 2021.

Further information

• Michael Aaen, CEO, Wirtek A/S, Phone: +45 2529 7575, E-mail: ir@wirtek.com
  Niels Jernes Vej 10, 9220 Aalborg Ø, www.wirtek.com
• Kent Mousten Sørensen, Chairman, Wirtek A/S, Phone: +45 2125 9001
• Per Vestergaard, Certified Advisor, CDI Global, Phone: +45 2176 4317

About Wirtek

Wirtek is a Danish IT outsourcing company. Since 2001, we have been teaming up with companies to help them create great software solutions and electronic equipment products.

Several clients have been with us for more than 10 years, so we can confidently say that in outsourcing, the quality of the relationship matters just as much as the quality of the delivered software. Our clients get state-of-the-art technical solutions and a committed team that works with them as if it were their own.

Wirtek has offices in Denmark (HQ + sales) and four development and test centres in Romania, and we are 180+ colleagues. Wirtek was listed at Nasdaq First North Growth Market Denmark in 2006.

Ticker Code: WIRTEK (DK0060040913)