Interim Report Q3 2024: Wirtek doubles revenue in Energy

Company Announcement no. 16/2024
13 November 2024

Wirtek’s Board of Directors has today approved the interim report for Q3 2024. Below a summary - the detailed report is attached to this announcement.

CEO Michael Aaen comments:

“Our Energy business unit has made extraordinary strides this quarter, representing 39% of total revenue in Q3 2024, with a remarkable growth rate of 98% compared to Q3 2023. This achievement underscores both the resilience and potential of our focus on Clean and Green Energy.

In addition to continue growing our existing Services business, our ambition is to provide clients with innovative and scalable Solutions. The recent acquisitions of Pragmasoft and Seluxit are already proving instrumental in accelerating our progress in this area, as we integrate specialised talent, intellectual property, and technology into our operations. Since acquiring Seluxit in July this year, we have signed three new contracts within just two months, highlighting the strong market demand for our solutions.

Despite current market challenges, we remain optimistic about our future growth trajectory. We are confident that our focus on scalable solutions, bolstered by strategic acquisitions, positions Wirtek well for 2025 and beyond. Our investments in Energy, IoT, and recurring revenue models are aligned with long-term market trends and provide the company with an enhanced ability to deliver sustainable, profitable growth and long-term value creation.”

Financial highlights for the period 1 January - 30 June 2024

*) Adjusted for special items related to the acquisitions of Pragmasoft and Seluxit.

Improved revenue growth but profitability remains under pressure

• Revenue was TDKK 18,776 during Q3 2024, an increase of 8% compared to Q3 2023. Revenue grew by 1% in Q1-Q3 2024 compared to the same period in 2023. Wirtek still sees pressure on business due to continued market uncertainties.
• EBITDA was TDKK 1,352 in Q3 2024 compared to TDKK 1,172 in Q3 2023, an increase of 15%. This rise was positively affected by adjusted operational efficiencies. For Q1-Q3 2024, EBITDA was TDKK 3,868, down by 19% compared to the same period in 2023.
• Adjusted EBITDA for Q3 2024 was TDKK 2,379, a 103% increase from Q3 2023. The adjustment to EBITDA is due to special items from the Seluxit and the Pragmasoft acquisitions of TDKK 1,027. The adjusted EBITDA better reflects Wirtek’s core profitability. Adjusted EBITDA-margin for Q3 2024 was 12.7%, up from 6.7% in Q3 2023.
• Pre-tax profit (EBT) in Q3 2024 was TDKK 455 compared to TDKK 812 in Q3 2023, a decrease of 44%. For Q1-Q3 2024, EBT was TDKK 1,754, down from TDKK 3,522 in Q1-Q3 2023. Adjusted for special items the Pre-tax profit (EBT) for Q3 2024 is up by 83%. 
• Equity increased by 16% to TDKK 19,417 in Q3 2024, compared to TDKK 16,732 in Q3 2023. The equity ratio remains at a healthy 42% following the acquisitions of Seluxit and Pragmasoft.
• Cash holdings increased by 16%, reaching TDKK 4,815 in Q3 2024, up from TDKK 4,165 in Q3 2023. This improvement reflects consistent positive operational cash flows and careful liquidity management.

Financial expectations for 2024

While Wirtek still experiences challenges in the existing Services business from the current market uncertainties, the Pragmasoft and Seluxit acquisitions have contributed to Wirtek’s business from August 2024. The announced 2024 expectations are still maintained while Wirtek continue to assess the full long-term impact from the two acquisitions and the continued investments in business development.

• 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 0% - 15% 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)