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Interim Report Q1 2023: Organic revenue growth of 11% despite softening in the market

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Company Announcement No. 6/2023
 10 May 2023

Wirtek’s Board of Directors has today approved the interim report for Q1 2023. Below a summary - the detailed report is attached to this announcement.

CEO Michael Aaen comments:

“I am pleased to report that Wirtek continued to grow organically during Q1 2023. We increased our revenue by 11%, which is a testament to our team's dedication to delivering high-quality software development and testing services to our clients. However, it is important to note that we also experience a softening in the market, and we have seen continued rising costs, which altogether has led to a 30% decrease in EBITDA in Q1 2023 compared to Q1 2022.

To improve profitability, we are focusing on decreasing the cost base and have also initiated activities to expand the sales pipeline to fuel further organic growth and reduce any future overcapacities.

We are committed to our journey of profitable growth and retain our expectations for 2023 and our long-term goals of our Accelerate25XL strategy even though we experience a higher level of uncertainty.”

Revenue growth of 11% with an EBITDA-margin of 10% during Q1 2023

  • Revenue grew organically by 11% to TDKK 18,137 during Q1 2023 compared to revenue of TDKK 16,341 during Q1 2022.
  • EBITDA was TDKK 1,810 in Q1 2023, down by 30% compared to TDKK 2,598 for the same period last year. The decrease in EBITDA is mainly attributed to a significant increase in external costs covering consultants as well as investments in digitalization, including our new ERP system that in part has gone live in January 2023. 
  • The EBITDA-margin for Q1 2023 was 10.0% compared to 15.9% during same period in 2022.
  • Pre-tax profits (EBT) were TDKK 1,436 in Q1 2023 compared to TDKK 2,146 during Q1 2022, down by 33%.
  • Cash holdings were TDKK 6,961 end of Q1 2023, up 7% from last year. Part of the cash-position is offset by a credit facility of TDKK 2,967. A positive cash flow of TDKK 1,844 was generated during Q1 2023, with operating activities generating TDKK 2,345 in cash. Cash flow from operating activities was up by 15% compared to Q1 2022.

Expectations for 2023 retained

The softening we are experiencing in the market has led some of our clients to cut back on the services we are providing to them, while at the same time we are experiencing growth with other clients. Therefore, expectations are retained for 2023. 

  • Organic Revenue for 2023 is expected in the range of DKK 73.0m – 78.0m, a growth of 11% – 19% compared to 2022.
  • EBITDA for 2023 is expected in the range DKK 6.0m – 9.0m, a growth of -20% – +27% compared to 2022.

Further information

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

About Wirtek

Wirtek A/S is a Danish IT consultancy company that provides software development, testing, and consultancy services to help clients worldwide. With a team of more than 200 talented professionals, Wirtek specializes in Digitalization, Energy, Workforce & Facility Management, Wireless Communication & Automation, and Trade & E-commerce.

At Wirtek, we prioritize building long-term client relationships, with some lasting over a decade. We believe that quality partnerships are just as important as software quality in achieving our client's goals. Established in 2001, we have offices in Denmark and Romania and have been listed on Nasdaq First North Copenhagen since 2006.  

Ticker Code: WIRTEK (DK0060040913)

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