Interim Report Q2 2024: Wirtek strengthens its focus on the energy sector

Company Announcement no. 11/2024
14 August 2024

Wirtek’s Board of Directors has today approved the interim report for Q2 2024. Below a summary - the detailed report is attached to this announcement.

CEO Michael Aaen comments:

“To improve our competitive advantage by fostering deeper knowledge of our clients’ business domains, Wirtek transformed the organisation into five separate business units beginning of 2023. The organisational transformation has proven to be a great success. After a very strong growth of 95% in Q2 2024 compares to Q2 2023, Energy has grown from being Wirtek’s smallest business unit beginning of 2023 to our largest business unit in Q2 2024.

Wirtek will augment its Energy offerings by expanding into markets that include products and platforms, a shift that we believe will significantly enhance both the growth and profitability of our business in the medium- and long-term. The acquisitions of Pragmasoft in Portugal and Seluxit in Denmark beginning of Q3 2024 will further strengthen our capabilities within the Clean Energy sector and will enable us to deliver exceptional value to our clients through high-quality services, IoT hardware, and SaaS products, ultimately driving margins and growth.

We are confident that expanding our offerings with products and platforms will not only benefit our clients and partners but also create significant value for our shareholders and our employees, setting the stage for Wirtek’s continued success in the years to come.”

Financial highlights for the period 1 January - 30 June 2024

Revenue development was flat with EBITDA significantly influenced by acquisition-related costs

• Revenue was TDKK 16,812 during Q2 2024, a decrease of 3% compared to Q2 2023. Revenue decreased by 2% in H1 2024 compares to H1 2024. Wirtek still sees pressure on business f due to market uncertainties.
• EBITDA was TDKK 678 in Q2 2024 compared to TDKK 1,819 in Q2 2023, a decrease of 63%. This drop was negatively affected by periods of overcapacity due to reduction in purchases from existing clients. Wirtek’s acquisitions of Pragmasoft and Seluxit entailed acquisition-related costs of TDKK 550 in Q2 2024. Wirtek also initiated significant investments in business development initiatives during the period. EBITDA was TDKK 2,516 in H1 2024, down by 31% compared to H1 2023. The EBITDA-margin, at 7.2% for H1 2024, was also significantly impacted. 
• Pre-tax profit (EBT) in Q2 2024 was TDKK 48 compared to TDKK 1,660 in Q2 2023. For H1 2024 EBT was TDKK 1,299, down from TDKK 3,096 in H1 2023.
• Equity increased by 4% to TDKK 17,053 in H1 2024, compared to TDKK 16,448 in H1 2023. Equity ratio increased to 60% by the end of Q2 2024.
• Cash holdings decreased significantly by 67%, from TDKK 5,166 in H1 2023 to TDKK 1,710 in H1 2024. This reduction primarily reflects that the cash holdings beginning of 2024 was TDKK 1,747 below cash holdings beginning of 2023 following planned investments throughout 2023.

Financial expectations for 2024

The Board of Directors still expects negative impact from market uncertainties during H2 2024. The Pragmasoft and Seluxit acquisitions will both start impacting Wirtek’s business from August 2024. The announced 2024 expectations are maintained while Wirtek assesses the full impact from the two acquisitions and the ongoing investments in business development.

• 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, Romania and Portugal and have been listed on Nasdaq First North Copenhagen since 2006. 

Ticker Code: WIRTEK (DK0060040913)