Interim Report Q3 2022: New clients contribute to continued strong organic growth

Company Announcement no. 15/2022
9 November 2022

Wirtek’s Board of Directors has today approved the interim report for Q3 2022. Below a summary - the detailed report is attached to this announcement.

CEO Michael Aaen comments:

“We are looking back on yet another quarter with strong organic revenue growth of 21% compared to Q3 2021 and EBITDA grew by 2%. The implementation of the new ERP system, the conversion to IFRS and the introduction of a new modern hybrid organization are all being executed satisfactorily, and we are satisfied with the financial results.

During the past 6 months Wirtek gained 3 new clients that already contribute with 9% of Wirtek’s monthly revenue and we are happy to see that our existing clients also have expanded their activities with Wirtek.

We got off to a good start in Q4 and maintain our expectations for the full year of 2022”.

Financial highlights for the period 1 January – 30 September 2022

Revenue growth of 21% during Q3 2022 and organic revenue growth of 27% year-to-date

• Revenue grew by 21% to TDKK 16,502 during Q3 2022 compared to revenue of TDKK 13,658 during Q3 2021. Revenue growth during Q1-Q3 2022 was 55% compared to Q1-Q3 2021. Revenue grew organically by 27% during Q1-Q3 2022. 
• EBITDA was TDKK 2,027 in Q3 2022 compared to TDKK 1,987 for the same period last year, a growth of 2%. High inflation has led to rising costs, and significant investments in a new ERP system and IFRS implementation have also had a negatively impact on EBITDA during Q3. During Q1-Q3 2022 EBITDA was TDKK 6,349, a growth of 56% compared to Q1-Q3 2021.
• The EBITDA-margin for Q3 2022 was 12.3% compared to 14.5% during same period in 2021, a decrease of 15%. For Q1-Q3 2022 the EBITDA-margin was 13.1%, an increase of 1% compared to Q1-Q3 2021.
• Pre-tax profits (EBT) were TDKK 1,669 in Q3 2022 compared to TDKK 1,653 during Q3 2021, a growth of 1%. EBT for Q1-Q3 2022 grew by 47% compared to Q1-Q3 2021.
• Cash holdings were TDKK 3,264 end of Q3 2022. Part of the cash-position is offset by a credit facility. A negative cash flow of TDKK 853 was generated during Q3 2022. The cash flow from operating activities was negative TDKK 722 during Q3 2022 and positive TDKK 1,500 during Q1-Q3 2022.

Maintaining expectations for 2022

After raising expectations in March 2022 (see company announcement no. 3/2022), Wirtek has the following revenue and EBITDA expectations for 2022:

• Revenue expectations for 2022 are DKK 64.0m – 69.0m, a growth of 41% – 52% compared to 2021.
• EBITDA expectations for 2022 are DKK 8.6m – 9.6m, 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 an international IT outsourcing company teaming up with companies to help them create great software solutions and electronic equipment products. Several clients have been with Wirtek for 10+ years. Wirtek has offices in Denmark (HQ + sales) and four development and test centres in Romania. Wirtek was established in 2001 and the staff counts 180+ talents. Wirtek was listed at Nasdaq First North Growth Market Denmark in 2006.

Ticker Code: WIRTEK (DK0060040913)