Admicom Oyj: ADMICOM’S GROWTH IN Q1 AT THE FORECASTED LEVEL: revenue +21%, EBITDA 45%

ADMICOM’S GROWTH IN Q1 AT THE FORECASTED LEVEL: revenue +21%, EBITDA 45%

Jan-March 2021 summary (comparable period January 1, 2020 – March 31, 2020)

• Revenue amounted to EUR 5,893 million (4,886), the growth was +21%.

• Net change in annual adjustment fees of current customers decreased the revenue by -3% as the customers’ revenue growth slowed down during 2020. At the same time structural revenue growth was +12% due to the acquisition of Tocoman in 2020.

• EBITDA amounted to EUR 2,676 million (2,043), EBITDA percentage was 45 (42).

• Operating profit amounted to EUR 2,314 million (1,818), operating profit percentage was 39 (37).

• Profit of the first quarter amounted to EUR 1,794 million (1,419).

• Building Services Engineering accounted for 14%, Construction for 67%, Industrial Manufacturing for 10% and companies of LITE-size and non-core industries altogether for 9% of new sales in the first quarter.

• Customers’ annual adjustment fees being lower and the impact of the Covid-19 pandemic on the number of churned customers at the beginning of the year and on new sales bring the growth towards the lower end of the 10-20 % range and emphasises the importance inorganic growth. The weakest revenue growth period will be in the second quarter, mainly due to annual adjustment fees.

Key figures by quarter

Admicom Oyj	1-3/2021	1-3/2020	Change	2020
Revenue, 1 000 €	5 893	4 886	21%	21 917
EBITDA, 1 000 €	2 676	2 043	31%	9 954
% of revenue	45%	42%		45%
Operating profit, 1 000 €	2 314	1 818	27%	8 618
% of revenue	39%	37%		39%
Profit for the period, 1 000 €	1 794	1 419	26%	6 699
Employees at the end of period	181	172		162
Earnings per share, EPS €	0,36	0,29	26%	1,36

The figures from the interim report are unaudited and in FAS format.

The CEO, Antti Seppä:

”The first quarter of 2021 went according to the growth objectives with revenue growth of 21%. Especially Construction and LITE segments’ development was promising. Our customers’ lower annual adjustment fees, due to the customers’ reduced revenues in 2020, pulled down our revenue by -3 percentage points. The background is basically the cyclicality of the construction industry as well as the corona epidemic, which is holding back customer industries. We anticipate the annual adjustment fees in the current financial period to be approximately on a level of EUR 0,2-0,3 million, while last year’s level was EUR 1,1 million. The biggest drop will be seen on the second quarter of the year. Structural growth accounted for +12 percentage points of the revenue when January and February of the acquisition of Tocoman on March 10, 2020 were combined to the revenue in 2021. Our profitability stayed on a good level with EBITDA being 45% of the revenue. At the beginning of the year we recruited several new employees with whom we intend to prepare for important personnel changes and to secure conditions for growth.

The new cloud-based version of cost calculation, which was communicated alongside with the acquisition of Tocoman in 2020, was launched in March 2021. The acquisition of Tocoman has clearly strengthened the Company’s position in the construction industry. The new organisation, consistent with the strategic work from 2020, has started to establish its operational models after several changes. One significant change at the beginning of the year was separating the CEO roles of Admicom’s parent company and subsidiaries. We announced on January 7, 2021 that Admicom Oyj’s CEO, Antti Seppä will leave the company during the ongoing year, and on January 15, 2021 we announced that managerial responsibilities of Admicom Finland Oy’s operative functions will be passed on to the CEO, Anna-Maija Ijäs.

The Annual General Meeting of 2021 was organised as an advance voting procedure in accordance with the temporary legislative act for the Covid-19 pandemic times. The Meeting resolved to pay a dividend of EUR 0,91 per share from the financial period 2020 and to authorise the Board of Directors to decide on the issuance of shares, altogether maximum of 2% of all shares in the Company to be issued to the employees of the Company and maximum of 18% of all shares in the Company to be issued for acquisitions. The Company is actively researching several different options for acquisitions. Additionally, the Annual General Meeting resolved to authorise the Board to decide on a share issue without payment (so called split) during the year 2021. The Company’s Board of Directors was significantly reformed for the term 2021 when three members left and two new members were elected in their place. The previous Chairman of the Board and the main shareholder Matti Häll left the Board. Convening after the Annual General Meeting the Board elected Timo Häll as the new Chairman of the Board.”

Outlook for the year 2021

Alongside with the publication of the annual report on January 15, 2021, Admicom guided the growth of revenue during the ongoing year to be on a level of 10-20% and the profitability to be on a level of 40-50% EBITDA.

The company maintains the above-mentioned financial guidelines for the whole year, but comments that the more detailed outlook for the decline in customers' annual invoicing and the continuation of the corona epidemic e.g. as bankruptcies and challenges for customers in new sales, bring revenue growth prospects towards the bottom of the projected 10-20% growth range. At the same time, the importance of successful structural growth is emphasized.

Financial publications

The Company will publish the half-year financial report on July 2, 2021.

Admicom Oyj

BOARD OF DIRECTORS

 

Additional information:

Antti Seppä

CEO

antti.seppa@admicom.fi

+358 40 575 9709

Petri Aho

CFO

petri.aho@admicom.fi

+358 50 340 2986

Approved advisor:

Oaklins Merasco Oy

+358 09 612 9670

Admicom Oyj Admicom, established in 2004, is a Finnish forerunner and provider of cloud-based ERP solutions for construction, building services engineering and manufacturing companies and a comprehensive partner in software and accounting services. The Company’s cloud-based SaaS ERP solution Adminet helps small and medium-sized companies enhance their competitive advantage by automating manual processes of production site and office seamlessly all the way to accounting.

The cost calculation and the production management software developed by our daughter company Tocoman Oy have a long history and a stable position on the market. Combining the product strengths of Tocoman with the strengths of Adminet creates by far the most extensive cloud-based solution for the construction industry.

The Company employs more than 170 professionals in Jyväskylä, Vantaa, Tampere, Oulu and Helsinki. Further information: www.admicom.fi/investors