Interim Report Q1 2024: Revenue growth of 82% in Energy

Company Announcement no. 7/2024
15 May 2024

Wirtek’s Board of Directors has today approved the interim report for Q1 2024. Below a summary - the detailed report is attached to this announcement.

CEO Michael Aaen comments:

“We continue to predict nervous markets in 2024 due to high interest rates and a continued uncertain geopolitical situation. Inflation rates are approaching a more normal level in Europe, and we expect to see reduced interest rates and an overall improvement of the market conditions towards the end of 2024. We especially have high expectations to continue the growth in our Energy business unit throughout 2024 where revenue grew 82% during Q1 2024 compared to Q1 2023.

We will invest significantly in business development during 2024 to get Wirtek back to double-digit organic growth rates from 2025. To head this effort, Niels Erik Wøhlk started on 1 May 2024 as Chief Revenue Officer (CRO) in Wirtek.

As part of Wirtek’s Accelerate25XL growth strategy, Wirtek has signed a non-binding Letter of Intent to acquire a profitable IT services company in Portugal that provides services complementing Wirtek’s existing service offerings in the Energy sector. The final closing is conditional upon a satisfactory due diligence result.”

Financial highlights for the period 1 January - 31 March 2024

EBITDA-margin improved during Q1 2024

• Revenue was TDKK 17,985 during Q1 2024, down by 1% compared to Q1 2023.
• EBITDA was TDKK 1,838 in Q1 2024, an increase of 2% compared to Q1 2023.
• The EBITDA margin for Q1 2024 was 10.2%, an increase of 2% compared to Q1 2023.
• Pre-tax profit was TDKK 1,251 in Q1 2024, up by 3% compared to TDKK 1,216 during Q1 2023.
• Equity was TDKK 19,636 end of Q1 2024, up by 19% compared to Q1 2023. The equity ratio was 59% end of Q1 2024, up from 55% end of Q1 2023. 
• Cash holdings were TDKK 3,420 end of Q1 2024, down by 51% from Q1 2023. This decrease in cash position is primarily due to a cash position beginning of 2024 lower by DKK 2.6m compared to beginning of 2023 due to significant investments in 2023. Cash from operating activities was TDKK 1,401.

Financial expectations for 2024

The Board of Directors still sees and expects a cautious market sentiment from Wirtek’s clients due to continued market uncertainties and retains the previously announced 2024 expectations.

• Organic Revenue for 2024 is expected in the range of DKK 74.0m – 78.0m, a growth of 5% - 11% compared to 2023.
• EBITDA for 2024 is expected in the range of DKK 6.5m – 7.5m, a growth of 3% - 19% compared to 2023.

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
• Grant Thornton, Certified Advisor, Phone: +45 3311 0020

About Wirtek

Wirtek A/S is a Danish IT consultancy company that provides software development, testing, and consultancy services to help clients worldwide. 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)