Quarterly Report • Apr 25, 2023
Quarterly Report
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GOFORE PLC Q1 / 2023
Gofore's organic growth 32% and very strong adjusted EBITA, 16.9%
25 April, 2023 Unaudited
| Group Key Figures Summary, MEUR | Q1/2023 | Q1/2022 | 2022 |
|---|---|---|---|
| Net sales | 49.1 | 35.4 | 149.9 |
| Organic Growth of Net Sales, % | 32.4% | 22.9% | 32.2% |
| Adjusted EBITA | 8.3 | 5.1 | 22.0 |
| Adjusted EBITA, % | 16.9% | 14.4% | 14.7% |
| EBITA | 8.1 | 4.5 | 20.4 |
| Operating Profit (EBIT) | 7.1 | 3.6 | 16.6 |
| Earnings per share (EPS), undiluted | 0.34 | 0.16 | 0.78 |
| Earnings per share (EPS), diluted | 0.34 | 0.16 | 0.78 |
| Number of employees at the end of period | 1,354 | 1,043 | 1,297 |
| Overall capacity; in-house and subcontracted staff (FTE), at the end of period |
1,461 | 1,123 | 1,383 |
There were no significant events after the reporting period. All figures are compared to the corresponding period of the previous year. All key figure calculation methods are explained in section "Calculation" formulas for key figures"
Gofore's organic growth has been exceeding both the IT services market overall as well as the company's own targets.
25%
minimum annual growth in net sales. At least 15% organic annual growth
15%
Profitability of adjusted EBITA 40%
Dividends at least of annual net profit
The first quarter of 2023 was an excellent one. Our growth continued as very strong. As for our organic growth, we kept the same high level. We also continued a positive trend in profitability, with an excellent ratio of price and salary development. This shows not only strong operational performance, but also that we have successfully scaled our operations and benefitted from the higher volumes.
Considering the uncertainty of our operating environment, the Gofore team's performance was even better than expected. For example, the racing inflation, geopolitical tension and the radical change of interest rates have been visible in Finland, Europe and as a wider petering out of economic growth. This reflects on Gofore's customers variably, depending on e.g. the industry they represent and the cyclicity of their business. In our view, the willingness and need to invest in the future has, however, not fundamentally suffered.
We see strong faith and investment in a future that is even more digital than before on the sectors important to Gofore, Digital Society and Intelligent Industry. The most significant collaborations and agreements of January-March can be found on this report.
During the quarter, we communicated having slowed down recruitment in certain expertise areas. In this market situation, talent profile demands vary. For example, needs for experts in project and change management are on their previous levels, whereas customers weigh their decisions more when it comes to software designers. As always, Gofore finds it important to react to changes in demand fast. From this setup, we recruited 99 new Goforeans in January-March.
The changed market situation is also visible in the talent market. Talent availability has improved in certain expertise areas, and the growth bottleneck has shifted from talent availability to customer demand. This setting favors consultancy companies like us, who have invested in strong customer relationships and building partnerships with their clientele.
We don't, however, expect the talent market to be relieved in the long term. We continue investing in developing our employer experience, to be an exemplary employer now and in the future. Our rising employee net promoter score and decreasing attrition rate are signs of the hard work that has already been put into this.
A high ratio of participants in the 6th period of Gofore's
share saving plan, 53%, is also a sign of employee commitment.
German-speaking Europe, the DACH area, is a center of our growing attention, as our business there develops and grows. Integrating eMundo, who joined us last November, has shown promise. It has been great to see how excited the Emundis are about our collaboration prospects and how organically similar teams start to mix and learn from each other!
During the spring, Finland joined NATO. The economy is predicted to return to a growth curve at the end of the year in both Finland and Europe. Finland just had its parliamentary elections, and a new government is being formed. We believe our operating environment to continue as favorable, especially in a long-term view.
Gofore continues on its chosen strategic path. We continue to work for growth also across the weaker economic cycle, while making sure we remain profitable.
| Customer | Project / Service | Topic | ~Value, MEUR | Years |
|---|---|---|---|---|
| Traficom (Finnish Transport & Communications Agency) |
Scrum Master service & Agile Coaching | Technology and information systems development |
2.8 | 5 |
| KEHA Centre | Development & expert services; frame agreement |
Nation-wide digital development of employment & integration services |
N/A | 3 |
| Business Finland | Project office; not specified | Project mgmt services | N/A | $2 + 1 + 1$ |
| CSC IT Center for Science | Strategy, process and development consulting |
N/A; new frame agreement | 3 | $2.5+1$ |
| LähiTapiola | Acceptance testing | Life insurance service system integration | 2.9 | $3-6$ |
| YLE | Frame agreement | N/A | N/A | 4 |
Reporting frame agreements
Upon being chosen as a supplier in a public tender, it is too early to say when and how much invoicing there will be. When communicated, the tender has only just decided on and Gofore made aware of its placement among suppliers. Actual purchase orders and assignments within a frame agreements follow later, and agreements are usually 3-7 years long with options for extensions.
•
•
Gofore wants to be an active participant in designing future worklife and be a thought leader in this field.
In line with its strategy of offering a more personalized employee experience and individual support for employees, Gofore has taken concrete action to develop its knowhow and be the best possible employer also to neuroatypical experts. These are e.g.:
| EUR thousand, unless otherwise specified | Q1/2023 | Q4/2022 | Q3/2022 | Q2/2022 | Q1/2022 |
|---|---|---|---|---|---|
| Net sales | 49,150 | 45,686 | 31,717 | 37,120 | 35,398 |
| Change in Net sales, % | 39% | 46% | 47% | 40% | 40% |
| Adjusted EBITA | 8,302 | 7,521 | 3,743 | 5,613 | 5,109 |
| Adjusted EBITA, % | 16.9% | $16.5\%$ | $11.8\%$ | $15.1\%$ | 14.4% |
| Change in Adjusted EBITA, % | 62% | $51\%$ | 38% | 63% | 46% |
| Organic growth of Net sales, % | 32% | 29% | $32\%$ | 27% | 23% |
| Month 2023 | Net sales, MEUR (Net sales 2022) |
Pro forma LTM Net sales | Number of employees at end of period No. of working days in Finland |
Full Time Equivalent, FTE | Subcontracting, FTE | |
|---|---|---|---|---|---|---|
| January | 15,8 (10,8) | 160.6 | 1 318 (993) | 21(20) | 1 225 (917) | 186 (147) |
| February | 15,3 (11.3) | 164.2 | 1342 (1015) | 20(20) | 1256 (942) | 184 (153) |
| March | 18,1(13,3) | 168.0 | 1 354 (1 043) | 23(23) | 1271 (968) | 189 (155) |
All key figure calculation methods are explained in section "Calculation formulas for key figures"
| EUR thousand, unless otherwise specified | Q1/2023 | Q1/2022 | Change | 2022 |
|---|---|---|---|---|
| Net sales | 49,150 | 35,398 | 13,752 | 149,921 |
| Change in Net sales, % | 38.8% | 40.3% | 43.5% | |
| EBITDA | 8,794 | 5,118 | 3,677 | 22,736 |
| EBITDA, % | 17.9% | 14.5% | 15.2% | |
| Adjusted EBITA | 8,302 | 5,109 | 3,192 | 21,987 |
| Adjusted EBITA, % | 16.9% | 14.4% | 14.7% | |
| EBITA | 8,091 | 4,548 | 3,543 | 20,426 |
| EBITA, % | 16.5% | 12.8% | 13.6% | |
| Operating Profit (EBIT) | 7,134 | 3,602 | 3,531 | 16,637 |
| Operating Profit (EBIT), % | 14.5% | 10.2% | 11.1% | |
| Profit for the period | 5,442 | 2,518 | 2,924 | 12,223 |
| Earnings per share (EPS), undiluted | 0.34 | 0.16 | 0.78 | |
| Earnings per share (EPS), diluted | 0.34 | 0.16 | 0.78 | |
| Effective dividend yield (DPS/Price), % | 1.5% | |||
| Price-Earnings ratio, P/E | 28.5 | |||
| Return on equity (ROE), % | 27.1% | 15.8% | 17.3% | |
| Return on investment (ROI), % | 28.6% | 17.6% | 18.8% | |
| Equity ratio, % | 54.7% | 52.4% | 54.0% | |
| Net gearing, % | $-26.1%$ | $-23.0\%$ | $-29.5%$ | |
| Number of employees at the end of period | 1,354 | 1,043 | 311 | 1,297 |
| Average overall capacity, FTE | 1,251 | 942 | 308 | 1,035 |
| Average subcontracting, FTE | 186 | 152 | 35 | 159 |
All key figure calculation methods are explained in section "Calculation formulas for key figures"
$\blacksquare$
Digital transformation's outlook is strong in the mid and long term. Short-term outlook is still largely determined by macro-economic development and somewhat by politics by next Finnish government.
Macro economic factors continue to contribute to the uncertainty in the economy, with halted growth in Europe during Q4/2022. Estimates indicate a return to economic growth in the second half of 2023, but significant uncertainty still exists about the scale and speed of growth. The downturn has, however, not significantly affected the customers' willingness to invest in digital development. We estimate that future investments are dependent on timing and speed of economic growth. The digitalisation megatrend continues to strengthen customer demand in the medium and long-term.
Finnish public sector digitalisation continues actively. Big structural reforms - especially social and healthcare reform are continuing. This is reflected on the high level of development activities at the start of 2023. This activity is expected to continue through 2023 and beyond. A possible downturn in economic activity and deepening deficit in public finances will affect public spending. The effect on digital investments is mostly subject to political decision making of the next Finnish government.
The parliamentary elections in April 2023 showed the way for future politics regarding digitalisation of society.
As we write this report, a new Finnish government had not yet been formed. We are still expecting the public sector demand to grow steadily. Difficulties and delays in forming a new government would have negative effects on demand. A potential slowdown of demand from the private sector may increase competition for public sector tenders. Gofore's strong position in bigger development programs is a competitive edge compared to most of the competition.
Digital transformation remains a high priority for private companies. However, their willingness to invest is affected by the economic cycle. Many of Gofore's focus customers have faired well in the beginning the year, thanks to healthy order backlogs. The length and severity of the negative economic cycle will determine the impact on continued investments during 2023.
For Gofore's Intelligent Industry sector, a national plan and legislation to raise R&D funding to 4% of GDP by 2030, is expected to support customer demand.
International markets relevant to Gofore are subject to the same macro-economic changes as described above.
The German and the whole DACH market are of special relevance to Gofore. Latest estimates show a slightly more positive view on the recovery of the economy during 2023, but still slow growth going into 2024. For Gofore this is relevant especially through the outlook of globally operating customers companies.
Public investments in digital development are growing in Europe. Market entry into local markets is not easy but is aided by the advanced development in Finland and the Nordic countries.
In the medium and long-term, the talent market is expected to remain competitive in all geographies where Gofore operates. Gofore has proven competitiveness as an attractive employer and a good operative ability to recruit. In the short-term, the weaker economic cycle and related lesser demand on talent has favored Gofore's recruiting activities.
Wage inflation in the market is driven by talent shortage and strengthened by inflation in the economy. In the short term, however, we estimate a slightly lesser salary hike pressure. On the other hand, slower churn and recruitment with related lesser leverage on salary structure, might affect average salary development.
$14 -$
Economical uncertainty significantly grew in early 2023, but so far, has had no material impact on Gofore's business. A prolonged negative growth or very slow recovery of the economy would negatively impact Gofore's customers ability to invest in digital development, especially in the private sector. We are still unsure how the latter part of the year will develop.
Adding costs raised by the inflation on customer pricing was carried out successfully in 2022. A slower market with heavier competition might hamper customer price development in 2023.
The public sector is more resilient to macro-economic changes than the private sector. Weakening public economy may affect the public sector's IT investment. Finnish parliamentary elections in April 2023 were expected to temporarily affect market activity but had very little impact on Gofore in Q1. A delay in forming a new government might have a negative effect for the rest of 2023.
A sizeable share of assignments from the public sector are given within larger frame agreements. Frame agreements are quantitative or otherwise time limited, and retendered as they are or in another form. During 2023, Gofore estimates it has one significant frame agreement that the customer is about to retender. However, Gofore believes its public sector market position continues strong and therefore sees this risk as very low.
Companies are more vulnerable to political situation or country-specific macroeconomical risks. Especially Finnish export companies had on average a strong order intake in the start 2023. Gofore currently sees this risk as medium. In the mid and long term, digitalisation is high on private company agendas, and Gofore's offering creates high added value to customers.
Demand for skilled workforce continues high in the industry. Short-term uncertainty of the economy has slightly decreased the demand for talent, as e.g. international technology businesses and SaaS companies have slowed down recruitment and even laid off staff. Gofore continues to mitigate talent supply related risks by further developing its already strong employer brand and flexibility in work.
Gofore intends to continue disciplined acquisitions by acquiring companies that fit its strategy. The M&A market has picked up somewhat with increased activity in companies being offered for sale. We are also seeing a slight decrease in expected valuations. Integration of acquired companies includes uncertainty. In Finland, Gofore is an experienced, valued buyer. In the new market area, German-speaking Europe, it faces a higher risk in M&A.
Russia's invasion and related sanctions imposed on the country continue to have very little direct impact on Gofore. Gofore has no operations in Russia, Ukraine or Belorussia. The conflict has had a negative impact on some customer businesses. Finland's overall geopolitical risk was alleviated, as the country joined NATO early April 2023.
This content is based on management assessment, made after the end of the reporting period. Both short-term and overall risks and uncertainty factors are listed on Gofore's IR website's section "Gofore as an investment".
As of February 2022, Gofore has not provided forecasts about the revenue or profit for the financial year. Before, Gofore may have presented an estimate of the company's revenue or performance guidance in the financial statement release or half-year report.
Gofore continuously develops the content of its monthly business reviews and interim reports, in an effort to further improve the company's transparency and more real-time monitoring of financial developments.
January - March 2023
GOFORE
At the end of March 2023, the Group employed a total of 1,354 (1,043) employees. The number of personnel increased from the corresponding period in 2022 by 30%. Growth was due to Gofore's strong organic growth, as well as a result of the two acquisitions made in 2022.
The number of employees in Finland amounted to 1,194 (1,000), and in the other countries of operation to a total of 160 (43) employees.
Gofore's has 19 offices in Finland, Estonia, Germany, Austria, Italy and Spain.
Organic growth in January-March 2023 was 32%. Strong growth in net sales from outside Finland and the private sector.
January - March 2023
During the period of January - March 2023, Gofore's net sales increased by 39% compared to the corresponding period in 2022, amounting to EUR 49.1 $(35.4)$ million.
Growth was attributable to the eMundo acquisition and strong organic growth of 32%. The average hourly price of services sold also increased by 3.8% from the comparison period.
Net sales generated from public sector sales increased to EUR 28.2 (21.7) million. Net sales generated from the private sector grew by as much as 52% to EUR 20.9 (13.7) million. The eMundo and the Devecto acquisition both have contributed to the private sector sales growth.
The public sector's share of total net sales was 57 (61)% and private sector 43 $(39)$ %.
Net sales coming from Finland was EUR 41.1 (32.4) million, representing a 84 (92)% share of the Group's net sales. Other countries' share of Group net sales was 16 (8)%; EUR 8.0 (3.0) million.
Subcontracted work represented 19 (19)% share of the Group's net sales; EUR 9.2 (6.9) million.
During the period of January - March 2023, Gofore's adjusted EBITA increased by 62% compared to the corresponding period in 2022 and amounted to EUR 8.3 (5.1) million and accounted to 16.9 (14.4)% of net sales.
Adjusted EBITA for the period was improved by an adjustment of business acquisition contingent consideration cost of EUR 0.2 million. Adjusted EBITA in the comparison period was affected by a EUR 0.6 million adjustment of acquisition transaction costs. The calculation method of the adjusted EBITA is presented separately in the section "Calculation formulas for key figures".
EBITA for January - March 2023 amounted to EUR 8.1 (4.5) million and accounted for 16.5 (12.8)% of net sales.
The proportion of personnel expenses of net sales decreased slightly the level of the comparison period, accounting for 56.4 (57.1)%. Personnel expenses for January - March 2023 amounted to EUR 27.7 (20.2) million. The increase is attributable to growth in the number of personnel.
Other operating expenses amounted to a total of EUR 5.0 (4.3) million and accounted for 10.3 (12.2)% of net sales. Excluding the contingent consideration and transaction costs related to acquisitions, expenses accounted for 9.8 (10.6)%. The largest expense items included other personnel expenses, ICT expenses and external services.
Depreciations excluding amortizations of intangible assets related to acquisitions were EUR 0.7 (0.6) million, accounting for 1.4 (1.6)% of net sales. Depreciations and amortizations were 1.7 (1.5) million euros; 3.4 (4.3)% of net sales.
Operating profit (EBIT) in January – March 2023 amounted to EUR 7.1 (3.6) million and accounted for 14.5 (10.2)% of net sales. Finance costs and income were EUR -0.2 (-0.2) million.
Profit for the financial period amounted to EUR 5.4 (2.5) million, showing 116% growth.
Gofore's equity ratio amounted to 54.7 (52.4)%, with net gearing of -26.1 $(-23.0)\%$ .
At the end of March 2023, the balance sheet total of the Gofore Group amounted to EUR 147.6 (128.5) million, of which total equity accounted for EUR 80.6 (66.4) million. At the end of the review period, interest-bearing net debt amounted to EUR-21.1 (-15.3) million.
Cash flow from operations decreased over the period of January – March 2023 to EUR 3.2 (8.0) million. Cash flow from investments during the review period amounted to EUR-5.2 (-13.3) million.
Investments in subsidiary shares during the review period amounted to EUR -5.0 (-13.0) million. Investment related to the payment of the Devecto acquisitions' additional purchase price.
Cash flow from financing activities during the period amounted to EUR -1.4 (2.2) million, including repayments of lease agreement liabilities for EUR -0.6 million, loan amortisations for EUR-1.3 million and cash flows from financials instruments EUR 0.5 million.
At the end of the review period, cash assets amounted to EUR 40.8 (36.0) million.
At the end of the review period, Gofore Plc's unsecured loans from credit institutions amounted to EUR 16.8 (17.1) million. Gofore has not withdrawn any new loan during the review period. The company has interest rate cap and interest rate swap agreements in place to hedge variable rate borrowings. More information can be found in the disclosure Financing, related party transactions & commitments.
The loans are associated with the customary covenants tied to the equity ratio and interest-bearing net debt. The covenant conditions were met on 31 March 2023. In addition, Gofore has in its disposal an EUR 5 million binding, unsecured credit limit for the Group's short-term, general financing needs such as corporate acquisitions. The limit was not used during the review period.
The company's development activity in the reporting period was focused on enhancing its digital platform and enterprise resource management system.
January-March 2023
Gofore Plc's share is quoted on the official stock exchange list of Nasdaq Helsinki Ltd; share trading code GOFORE.
At the end of the reporting period on 31 March 2023
Market value at the end of period, MEUR
$+14.2\%$
Share value change since beginning of the year
27.80
Highest price, EUR
• On 28 March 2023, Gofore received a notification pursuant to the Finnish Securities Markets Act, according to which Alcur Fonder AB's holding of Gofore Plc's shares and voting rights exceeded five (5) percent on 27 March 2023. According to the notification, reason for the notification was the acquisition of shares and voting rights. According to the flagging notification, Alcur Fonder AB's total share of votes and shares is 7.22%; 1,121,593 shares.
• On 10 March 2023: A directed share issue (31,783) shares as par of the CrewShare employee share savings plan; new shares were trade registered on 21 March 2023.
6,193 Shareholders at the end of period
53.4 %
Household ownership
28.7%
Financial and insurance institutions ownership
Gofore has had a share savings plan called CrewShare open to its entire staff since 2018. In February 2023, the Board of Directors resolved on a new plan period for 2023–2024, as well as on a new Performance Share Plan for key people.
The plan is available to all Gofore Group's employees, who are offered the possibility to save monthly and invest in shares in the company at a 10 percent discount, if the Board of Directors of the company so decides. The accrued savings are allocated towards acquiring Gofore's shares after the expiration of the savings period.
The new plan period commenced on 1 March 2023 and ends on 29 February 2024. Employees will be offered an opportunity to save a proportion of their regular salaries (EUR 50-400 per month). The accrued savings will be used for the acquisition of the Gofore shares biannually following the publications of the Half-year Report in September 2023 and financial statements release for the year 2023 in March 2024.
A total of 815 Gofore Group employees are participating in active CrewShare programs at the end of the reporting period.
Read more:
https://gofore.com/en/news/gofore-initiates-a-newperiod-of-employee-share-savings-plan/
In March 2023, the Board of
Directors of Gofore Plc also decided to establish a new share-based incentive plan for the group's key personnel as a continuation to the 2022 plan. The target is to align the objectives of the shareholders and key personnel for increasing the value of the company in the long-term, to commit the key employees to work for the company and to offer them a competitive incentive scheme that is based on earning and accumulating shares.
The Performance Share Plan 2023-2025 consists of a three-year performance period, covering the financial years in question. The Board may decide annually on new performance periods.
26 persons, including the CEO and other management team members, were part of this plan at the end of March.
https://gofore.com/en/news/gofore-decides-to-start-anew-performance-share-plan-for-key-personnel/
53%
of Goforeans save on
company shares
The Annual General Meeting adopted the company's financial statements for the financial period from 1 January-31 December 2022.
The Annual General Meeting confirmed a dividend of EUR 0.34 per share to be paid for the financial period 1 January-31 December 2022. The total amount of dividend is EUR 5,282,891.10, calculated on the basis of the outstanding shares as per the day of the Annual General Meeting. The record date for the dividend distribution will be 28 March 2023 and the dividend payment date will be 4 April 2023.
It was resolved to discharge the members of the Board of Directors and the CEO from liability for the financial period of 1 January-31 December 2022.
It was resolved to adopt the Remuneration Report for the Governing Bodies. Remuneration of the members of the Board of Directors
It was resolved that the remuneration for the Chair of the Board is EUR 6,000 per month and for the members of the Board EUR 3,000 per month. In addition, it was approved that the Shareholders' Nomination Board proposes that each Board Member be paid a fee for each committee meeting as follows: The Chair of the Committee should be paid EUR 800 and other committee members EUR 400 for each meeting. All members of the Board will be compensated for travel expenses against receipt in accordance with the company's travel policy.
It was resolved that the Board of Directors consists of six members.
The following persons were re-elected as the Board of Directors: Eveliina Huurre, Mammu Kaario, Piia-Noora Kauppi, Timur Kärki, Tapani Liimatta and Sami Somero.
It was resolved that the auditor's remuneration is paid against the invoices approved by the company.
KPMG Oy Ab was re-elected as the company's auditor for a term that will continue until the end of the next Annual General Meeting. KPMG Oy Ab has announced that Lotta Nurminen APA, would be the Auditor with principal responsibility.
It was resolved that the Company's Articles of Association are amended to enable arranging a General Meeting as a hybrid meeting. In addition, it proposed that the General Meeting can be arranged without a meeting venue as an alternative for a physical meeting.
The amendment also enables holding General Meetings of Shareholders virtually in situations like pandemics or other unforeseen or exceptional circumstances, however not limited to these situations. The Finnish Companies Act requires that shareholders can exercise their full rights in virtual meetings, with equal rights to those in customary inperson General Meetings.
All resolutions and minutes of the AGM can be seen at https://gofore.com/en/invest/governance/agm2022/
The Annual General Meeting decided to authorise the Board of Directors to decide upon the acquisition of a maximum of 1,550,613 of the company's own shares and/or accepting the same number of the company's own shares as a pledge, in one or several tranches, by using the company's unrestricted equity. The maximum total of shares that will be acquired and/or accepted as a pledge corresponds to approximately 10% of all shares in the company as of the date of this notice. However, the company cannot, together with its subsidiaries, own or accept as a pledge altogether more than 10% of its own shares at any point in time.
Shares will be acquired otherwise than in proportion to the holdings of the shareholders via public trading arranged by Nasdaq Helsinki Ltd at the market price that applies on the date of the acquisition or otherwise at a price formed on the market. Shares can be acquired and/or accepted as a pledge e.g. in order to execute a transaction or implement sharebased incentive schemes or for other purposes as decided by the Board of Directors or otherwise for the purposes of further assignation, retention or cancellation. The Board of Directors is authorised to decide on all other terms and conditions that will apply to the acquisition and/or acceptance as a pledge of the company's own shares.
This authorisation revokes the authorisation given by the Annual General Meeting on 25 March 2022 to resolve on the repurchase of the company's own shares. The authorisation is valid until the closing of the next Annual General Meeting, however, no longer than 30 June 2024.
Authorising the Board of Directors to resolve on the issuance of shares and the issuance of option rights and other special rights entitling to shares
The Annual General Meeting decided to authorise the Board of Directors to resolve on the issuance of shares as well as the issuance of option rights and other special rights entitling to shares referred to in chapter 10, section 1 of the Finnish Limited Liability Companies Act, in one or several tranches, either against payment or without payment.
The number of shares to be issued, including the shares received on the basis of the option rights and other special rights, may not exceed 2,325,920 shares, which amounts to approximately 15% of all shares in the company as of the date of this summons. The Board of Directors may decide to either issue new shares or to assign company shares that are held by the company.
The authorisation entitles the Board of Directors to decide on all terms and conditions that will apply to the share issue and to the issuance of option rights or other special rights entitling to shares, including the right to derogate from the shareholders' pre-emptive right. The shares can be used as consideration in transactions, as part of the company's incentive schemes or for other purposes as decided by the Board of Directors.
The authorisation remains in force until the end of the next annual general meeting, however not for longer than until 30 June 2024. This authorisation will revoke any existing, unused authorisations to decide on a share issue and the issuance of option rights or other special rights entitling to shares.
Authorising the Board of Directors to decide on the donation to Gofore Impact foundation
The Annual General Meeting decided to authorise the Board of Directors to decide on one or several donations to the company's planned Gofore Impact foundation for a charitable or similar purpose up to a maximum amount of EUR 250,000. Board of Directors is also authorised to decide on the timing of the abovementioned donation as well as on the other terms of the donation. The authorisation is valid until the end of the next Annual General Meeting.
The main purpose of the Gofore Impact foundation is to support the positive impacts of digitalisation, such as democracy and equality development, to mitigate the social tensions and side effects related to digital change, as well as relieve digital inequality and social exclusion. The foundation also wishes to impact the diversity of digital change makers, as well as the overall vitality of the industry.
1 January – 31 March 2023 Tables Section
Unaudited
| EUR thousand | Q1/2023 | Q1/2022 | 2022 |
|---|---|---|---|
| Net sales | 49,150 | 35,398 | 149,921 |
| Production for own use | 88 | 34 | 305 |
| Other operating income | 44 | 25 | 126 |
| Materials and services | $-7,705$ | $-5,822$ | $-25,073$ |
| Employee benefit expenses | $-27,738$ | $-20,196$ | $-85,150$ |
| Depreciations, amortisations and impairment | $-1,661$ | $-1,515$ | $-6,099$ |
| Other operating expenses | $-5,043$ | $-4,322$ | $-17,394$ |
| Operating profit (EBIT) | 7,134 | 3,602 | 16,637 |
| Finance costs | $-262$ | $-217$ | $-824$ |
| Finance income | 89 | $\overline{2}$ | 60 |
| Profit before tax | 6,960 | 3,387 | 15,873 |
| Income tax | $-1,518$ | $-869$ | $-3,650$ |
| Profit for the financial period | 5,442 | 2,518 | 12,223 |
| Other Comprehensive Income | |||
| Net other comprehensive profit or loss to be reclassified to profit or loss in subsequent periods | |||
| Exchange differences on translation of foreign operations | $\overline{0}$ | $\Omega$ | $\Omega$ |
| Cash flow hedges | $-68$ | 165 | 542 |
| Other comprehensive income, net of tax | $-68$ | 165 | 542 |
| Total comprehensive income for the financial period | 5,374 | 2,684 | 12,765 |
| Profit/loss for the financial period attributable to: | |||
| Equity holders of the parent | 5,344 | 2,464 | 11,954 |
| Non-controlling interests | 98 | 54 | 269 |
| 5,442 | 2,518 | 12,223 | |
| Total comprehensive income for the financial period attributable to: | |||
| Equity holders of the parent | 5,277 | 2,629 | 12,496 |
| Non-controlling interests | 98 | 54 | 269 |
| 5,374 | 2,684 | 12,765 | |
| Earnings per share (EPS), undiluted | 0.34 | 0.16 | 0.78 |
| Earnings per share (EPS), diluted | 0.34 | 0.16 | 0.78 |
| EUR thousand | Q1/2023 | Q1/2022 | 2022 | |
|---|---|---|---|---|
| Assets | ||||
| Non-current assets | ||||
| Goodwill | 47,694 | 41,045 | 47,694 | |
| Other intangible assets | 21,535 | 21,635 | 22,465 | |
| Tangible assets | 834 | 471 | 751 | |
| Right-of-use assets | 3,495 | 4,148 | 3,564 | |
| Other receivables | 826 | 364 | 917 | |
| Deferred tax assets | 158 | 48 | 147 | |
| Total non-current assets | 74,542 | 67,711 | 75,537 | |
| Current assets | ||||
| Trade receivables | 28,548 | 20,749 | 24,248 | |
| Contract assets | 1,124 | 1.049 | 465 | |
| Other current assets | 1,888 | 2,409 | 2,826 | |
| Income tax receivables | 140 | 16 | 140 | |
| Securities | 592 | 549 | 1,077 | |
| Cash and cash equivalents | 40,797 | 36,019 | 44,135 | |
| Total current assets | 73,089 | 60,791 | 72,890 | |
| Total assets | 147,631 | 128,502 | 148,427 |
| EUR thousand | Q1/2023 | Q1/2022 | 2022 | |
|---|---|---|---|---|
| Equity and liabilities | ||||
| Equity | ||||
| Share capital | 80 | 80 | 80 | |
| Fund for unrestricted equity | 50,535 | 46,843 | 49,897 | |
| Other reserves | 474 | 165 | 542 | |
| Retained earnings | 28,949 | 18,917 | 28,764 | |
| Equity attributable to equity holders of the parent |
80,039 | 66,005 | 79,283 | |
| Non-controlling interests | 573 | 372 | 475 | |
| Total equity | 80,612 | 66,377 | 79,759 | |
| Non-current liabilities | ||||
| Interest-bearing loans and borrowings | 12,347 | 13,371 | 13,464 | |
| Other payables | 3,190 | 149 | 3,196 | |
| Lease liabilities | 1,421 | 2,302 | 1,464 | |
| Deferred tax liabilities | 4,446 | 4,222 | 4,664 | |
| Total non-current liabilities | 21,403 | 20,045 | 22,788 | |
| Current liabilities | ||||
| Trade and other payables | 20,281 | 21,381 | 21,480 | |
| Contract liabilities | 257 | 1,876 | 688 | |
| Interest-bearing loans and borrowings | 4,443 | 3,743 | 4,593 | |
| Lease liabilities | 2,121 | 1,888 | 2,141 | |
| Accrued expenses | 17,546 | 12,780 | 15,750 | |
| Income tax payable | 968 | 414 | 1,229 | |
| Total current liabilities | 45,616 | 42,081 | 45,881 | |
| Total liabilities | 67,019 | 62,126 | 68,668 | |
| Total equity and liabilities | 147,631 | 128,502 | 148,427 |
| 2023 | ||||||||
|---|---|---|---|---|---|---|---|---|
| EUR thousand | Share capital | Fund for unrestricted equity |
Reserve for fair value |
Translation differences |
Retained earnings | Total | Non-controlling interests |
Total equity |
| Equity on 1 of January 2023 | 80 | 49,897 | 542 | $\mathbf{0}$ | 28,764 | 79,283 | 475 | 79,759 |
| Profit for the period | 5,344 | 5,344 | 98 | 5,442 | ||||
| Other comprehensive income | $-68$ | $-68$ | $-68$ | |||||
| Total comprehensive income | $\Omega$ | $\Omega$ | $-68$ | $\mathbf{0}$ | 5,344 | 5,277 | 98 | 5,374 |
| Transactions with shareholders and non-controlling interests: | ||||||||
| Share-based payments | 638 | 124 | 762 | 762 | ||||
| Dividends | $-5,283$ | $-5,283$ | $-5,283$ | |||||
| Share issue | $\overline{0}$ | $\Omega$ | ||||||
| Purchase of own shares | $\overline{0}$ | $\overline{O}$ | ||||||
| Acquisition of a subsidiary paid in shares | $\Omega$ | $\overline{0}$ | ||||||
| Change in non-controlling interests | $\Omega$ | $\overline{0}$ | ||||||
| Other changes | $\Omega$ | $\overline{O}$ | ||||||
| Equity on 31 of March 2023 | 80 | 50,535 | 474 | $\mathbf{0}$ | 28,949 | 80,039 | 573 | 80,612 |
| 2022 Attributable to equity holders of the parent |
||||||||
|---|---|---|---|---|---|---|---|---|
| EUR thousand | Share capital | Fund for unrestricted equity |
Reserve for fair value |
Translation differences |
Retained earnings | Total | Non-controlling interests |
Total equity |
| Equity on 1 of January 2022 | 80 | 40,103 | 0 | $\mathbf 0$ | 20,822 | 61,005 | 304 | 61,309 |
| Profit for the period | 2,464 | 2,464 | 54 | 2,518 | ||||
| Other comprehensive income | 165 | 165 | 165 | |||||
| Total comprehensive income | 0 | $\mathbf{0}$ | 165 | $\mathbf 0$ | 2,464 | 2,629 | 54 | 2,684 |
| Transactions with shareholders and non-controlling interests: | $\sim$ | |||||||
| Share-based payments | 425 College |
$-65$ | 360 | 360 | ||||
| Dividends | $-4,304$ | $-4,304$ | $-4,304$ | |||||
| Share issue | $\overline{0}$ | |||||||
| Purchase of own shares | $-1$ | $-1$ | ||||||
| Acquisition of a subsidiary paid in shares | 6,315 | 6,315 | 6,315 | |||||
| Change in non-controlling interests | $\overline{0}$ | $\Omega$ | $\Omega$ | 15 | 15 | |||
| Other changes | ||||||||
| Equity on 31 of March 2022 | 80 | 46,843 | 165 | $\mathbf 0$ | 18,917 | 66,005 | 372 | 66,377 |
| EUR thousand | Q1/2023 | Q1/2022 | 2022 | |
|---|---|---|---|---|
| Operating activities | ||||
| Profit before tax | 6,960 | 3,387 | 15,873 | |
| Adjustments to reconcile profit before tax to net cash flows: | ||||
| Depreciation and impairment | 1,661 | 1,515 | 6,099 | |
| Finance income and expenses | 173 | 215 | 764 | |
| Other adjustments | 934 | 367 | 1,406 | |
| Change in working capital | $-4,486$ | $-523$ | 1,799 | |
| Interest received and paid | $-38$ | $-52$ | $-210$ | |
| Other financial items | $-15$ | $-48$ | -79 | |
| Income tax paid | $-1,992$ | $-1,180$ | $-3,911$ | |
| Net cash flow from operating activities | 3,198 | 7,985 | 21,740 | |
| Net cashflow from investing activities | ||||
| Proceeds from sale of tangible assets | $\overline{O}$ | 53 | 65 | |
| Purchase of intangible assets | $-88$ | $-34$ | $-312$ | |
| Purchase of tangible assets | $-138$ | $-71$ | $-355$ | |
| Acquisition of a subsidiary, net of cash acquired | $-4,954$ | $-13,270$ | $-17,486$ | |
| Net cash flow from investing activities | $-5,179$ | $-13,322$ | $-18,089$ | |
| Net cash flow from financing activities | ||||
| Repayment of lease liabilities | $-583$ | $-478$ | $-1,949$ | |
| Proceeds from borrowings | $\Omega$ | 8,000 | 11,500 | |
| Repayment of borrowings | $-1,267$ | $-989$ | $-3,802$ | |
| Financial instruments | 492 | $\mathbf{O}$ | $-10$ | |
| Dividends paid to equity holders of the parent | $\overline{O}$ | $\overline{O}$ | $-4,304$ | |
| Dividends paid to non-controlling interest | $\Omega$ | $\Omega$ | $-131$ | |
| Changes in non-controlling interest | $\overline{O}$ | 13 | 65 | |
| Net cash flow from financing activities | $-1,357$ | 2,242 | 1,370 | |
| Net increase in cash and cash equivalents | $-3,339$ | $-3,095$ | 5,021 | |
| Cash and cash equivalents at beginning of period | 44,135 | 39,114 | 39,114 | |
| Cash and cash equivalents at end of period | 40,797 | 36,019 | 44,135 |
1 January - 31 March 2023
C
The unaudited interim report of Gofore Plc for January-March 2023 has been prepared in accordance with IAS 34, Interim Financial Reporting, and it should be read in conjunction with the consolidated financial statements for 2022. Information concerning the full year 2022 is based on the audited financial statements for 2022.
The same accounting policies, methods of computation and applications of judgment are followed in this interim report as wasfollowed in the consolidated financial statements for 2022. Amendments to the standards taking effect in 2023 did not affect the Group.
The fair values of financial assets and liabilities are materially consistent with their carrying amounts. For this reason, they are not presented separately in table format in the interim report. Disclosures concerning share-based payments are presented in section Corporate Governance and Share Information.
| EUR thousand, unless otherwise specified | Q1/2023 | Q1/2022 | Change, % | 2022 |
|---|---|---|---|---|
| Net sales by customer sector | ||||
| Private sector sales | 20,925 | 13,744 | 52% | 59,840 |
| Public sector sales | 28,225 | 21,654 | 30% | 90,081 |
| Net sales by origin of customer | ||||
| Finland | 41,135 | 32,446 | 27% | 133,955 |
| Other countries | 8,015 | 2,952 | 172% | 15,966 |
| Net sales by Crew / subcontracting | ||||
| Net sales, Crew | 39,992 | 28,544 | 40% | 120,291 |
| Net sales, subcontracting | 9,157 | 6,854 | 34% | 29,630 |
| Net sales by agreement types | ||||
| Time and material based projects | 46,250 | 32,732 | 41% | 139,261 |
| Fixed price projects | 2,111 | 1,962 | 8% | 8,004 |
| Maintenance services | 775 | 669 | 16% | 2,546 |
| Third party commissions | 14 | 35 | $-60%$ | 110 |
| Net sales, Group total | 49,150 | 35,398 | 39% | 149,921 |
G
| EUR thousand | Trademarks | Customer relationships |
Non-compete agreement |
Technology based intangibles |
Models and templates |
Capitalized development expenditure |
Other intangible assets |
Other intangible assets total |
Goodwill | Intangible assets total |
|---|---|---|---|---|---|---|---|---|---|---|
| Cost | ||||||||||
| 1 January 2023 | 1,228 | 22,069 | 5,288 | 66 | 200 | 101 | 1,743 | 30,696 | 47,694 | 78,390 |
| Additions | $\overline{0}$ | $\overline{O}$ | $\overline{0}$ | $\overline{O}$ | $\overline{O}$ | $\mathbf{O}$ | 88 | 88 | $\Omega$ | 88 |
| Business combinations | $\mathbf{0}$ | $\overline{O}$ | $\overline{O}$ | $\overline{O}$ | $\overline{O}$ | $\overline{O}$ | $\overline{O}$ | $\overline{0}$ | $\Omega$ | $\Omega$ |
| Reclassifications | $\overline{O}$ | $\Omega$ | $\overline{O}$ | $\Omega$ | $\overline{0}$ | $\overline{O}$ | $\Omega$ | $\Omega$ | $\Omega$ | $\overline{O}$ |
| 31 March 2023 | 1,228 | 22,069 | 5,288 | 66 | 200 | 101 | 1,831 | 30,784 | 47,694 | 78,478 |
| Amortisation and impairment | ||||||||||
| 1 January 2023 | $-788$ | $-5,137$ | $-1,806$ | $-24$ | $-122$ | $-49$ | $-304$ | $-8,231$ | $\overline{0}$ | $-8,231$ |
| Amortisations | $-51$ | $-650$ | $-236$ | $-3$ | $-17$ | $-3$ | $-57$ | $-1,018$ | $\Omega$ | $-1,018$ |
| 31 March 2023 | $-840$ | $-5,788$ | $-2,042$ | $-28$ | $-139$ | $-52$ | $-361$ | $-9,249$ | $\mathbf 0$ | $-9,249$ |
| Net book value | ||||||||||
| 1 January 2023 | 440 | 16,932 | 3,482 | 42 | 78 | 52 | 1,440 | 22,465 | 47,694 | 70,159 |
| 31 March 2023 | 388 | 16,281 | 3,246 | 39 | 61 | 48 | 1,471 | 21,535 | 47,694 | 69,229 |
| EUR thousand | Trademarks | Customer relationships |
Non-compete agreement |
Technology based intangibles |
Models and templates |
Capitalized development expenditure |
Other intangible assets |
Other intangible assets total |
Goodwill | Intangible assets total |
|---|---|---|---|---|---|---|---|---|---|---|
| Cost | ||||||||||
| 1 January 2022 | 672 | 10,031 | 3,438 | 66 | 200 | 101 | 1,035 | 15,543 | 26,897 | 42,440 |
| Additions | $\circ$ | 0 | $\overline{0}$ | $\circ$ | $\overline{0}$ | $\overline{0}$ | 34 | 34 | O | 34 |
| Business combinations | 197 | 9,833 | 1,298 | $\Omega$ | $\Omega$ | $\overline{0}$ | $\Omega$ | 11,329 | 14,148 | 25,477 |
| Reclassifications | $\overline{0}$ | $\Omega$ | $\Omega$ | $\Omega$ | $\overline{O}$ | $\Omega$ | $\Omega$ | |||
| 31 March 2022 | 869 | 19,865 | 4,736 | 66 | 200 | 101 | 1,069 | 26,906 | 41,045 | 67,951 |
| Amortisation and impairment | ||||||||||
| 1 January 2022 | $-348$ | $-2,720$ | $-955$ | $-11$ | $-56$ | $-36$ | $-160$ | $-4,286$ | $\Omega$ | $-4,286$ |
| Amortisations | $-122$ | $-595$ | $-208$ | $-3$ | $-17$ | $-3$ | $-36$ | $-985$ | $\Omega$ | $-985$ |
| 31 March 2022 | $-470$ | $-3,315$ | $-1,163$ | $-14$ | $-72$ | $-39$ | $-196$ | $-5,270$ | $\mathbf 0$ | $-5,270$ |
| Net book value | ||||||||||
| 1 January 2022 | 324 | 7,311 | 2,483 | 55 | 144 | 64 | 875 | 11,257 | 26,897 | 38,154 |
| 31 March 2022 | 399 | 16,550 | 3,573 | 52 | 128 | 61 | 873 | 21,635 | 41,045 | 62,680 |
| EUR thousand | Machinery & Equipment | Other tangible assets | Total |
|---|---|---|---|
| Cost | |||
| 1 January 2023 | 1,328 | 680 | 2,007 |
| Additions | 49 | 88 | 138 |
| Business combinations | $\overline{0}$ | $\circ$ | $\overline{0}$ |
| Disposals | $\overline{O}$ | $\circ$ | $\overline{0}$ |
| 31 March 2023 | 1,377 | 768 | 2,145 |
| Depreciation and impairment | |||
| 1 January 2023 | $-974$ | $-283$ | $-1,256$ |
| Depreciations charge for the year | $-44$ | $-11$ | $-55$ |
| Disposals | $\mathbf{O}$ | $\Omega$ | $\Omega$ |
| 31 March 2023 | $-1,018$ | $-293$ | $-1,311$ |
| Net book value | |||
| 1 January 2023 | 354 | 397 | 751 |
| 31 March 2023 | 359 | 475 | 834 |
| EUR thousand | Machinery & Equipment | Other tangible assets | Total |
|---|---|---|---|
| Cost | |||
| 1 January 2022 | 997 | 480 | 1,477 |
| Additions | 40 | 31 | 71 |
| Business combinations | 64 | $\Omega$ | 64 |
| Disposals | $-39$ | $\Omega$ | $-39$ |
| 31 March 2022 | 1,062 | 511 | 1,573 |
| Depreciation and impairment | |||
| 1 January 2022 | $-815$ | $-235$ | $-1,049$ |
| Depreciations charge for the year | $-40$ | $-12$ | $-53$ |
| Disposals | $\Omega$ | $\Omega$ | $\Omega$ |
| 31 March 2022 | $-855$ | $-247$ | $-1,102$ |
| Net book value | |||
| 1 January 2022 | 182 | 245 | 427 |
| 31 March 2022 | 207 | 264 | 471 |
| EUR thousand | Right-of-use assets, buildings | Right-of-use assets, buildings | Total |
|---|---|---|---|
| 1 January 2023 | 3,365 | 198 | 3,564 |
| Additions | 440 | 79 | 519 |
| Disposals | $\overline{0}$ | $\overline{O}$ | $\overline{O}$ |
| Business combinations | $\mathsf{O}\xspace$ | $\mathsf{O}\xspace$ | $\overline{O}$ |
| Depreciations for the financial year | $-548$ | $-40$ | $-588$ |
| 31 March 2023 | 3,258 | 237 | 3,495 |
| 1 January 2022 | 4,323 | 86 | 4,409 |
| Additions | 37 | 91 | 128 |
| Disposals | $\mathsf{O}$ | $\overline{O}$ | $\mathbf{0}$ |
| Business combinations | $\mathbf{O}$ | 89 | 89 |
| Depreciations for the financial year | $-447$ | $-31$ | $-478$ |
| 31 March 2022 | 3,914 | 234 | 4,148 |
| 1 January 2022 | 4,323 | 86 | 4,409 |
| Additions | 750 | 152 | 902 |
| Disposals | $-235$ | $\overline{O}$ | $-235$ |
| Business combinations | 342 | 92 | 434 |
| Depreciations for the financial year | $-1,815$ | $-132$ | $-1,947$ |
| 31 December 2022 | 3,365 | 198 | 3,564 |
Gofore Plc had unsecured loans of EUR 16.8 (17.1) million at the end of the review period. Gofore did not raised any new loans during the period. The loans are associated with the conventional covenants tied to the equity ratio and interest-bearing net debt. The covenant conditions were met on 31 March 2023.
Gofore Plc has also a binding, unsecured revolving credit facility of EUR 5 million for the short-term general financing needs of the Group, such as corporate acquisitions. The credit facility remained undrawn throughout the review period.
The company has made interest rate cap and swap agreements of EUR 11.7 million nominal value to hedge its floating rate loans. Cash flow hedge accounting is applied to those agreements. On 31 March 2023 70% of the variable interest loans were hedged. The effective portion of fair value changes is recognized into OCI and presented in fair value reserves in equity. Interest rate cap agreements are valid until 2 March 2026 and 29 December 2028. Interest rate swap is valid until 1 November 2027, respectively. The fair value of the agreements were EUR 593 (206) thousand at the end of the reporting period.
There were no sales, purchases, receivables or payables with related parties during the review period. The remuneration of the Board of Directors, Group CEO and members of the Group executive management team is published in the annual financial statements.
Gofore Plc holds an unsecured operative guarantee limit of EUR 1 million of which EUR 488 thousand is in use at 31.3.2023. The company has made a 10-year rental commitment to new business premises at the end of 2020. Estimated time for the new premises is at the end of 2023.
Gofore has given a negative pledge on its financial loans.
Gofore is not involved in any ongoing litigations nor proceedings relating to its business operations.
Gofore applies ESMA (European Securities and Markets Authority) guidelines on alternative performance measures.
Gofore uses and presents among others the following alternative performance measures to better illustrate the operative development of its business:
The items included in the EBITA and adjusted EBITA consist of the following:
| EUR thousand, unless otherwise specified | Q1/2023 | Q1/2022 | 2022 |
|---|---|---|---|
| EBITA, Adjusted EBITA and EBITDA | |||
| EBIT | 7,134 | 3,602 | 16,637 |
| Amortisation of intangible assets identified in PPA |
957 | 946 | 3,789 |
| EBITA | 8,091 | 4,548 | 20,426 |
| Transaction costs from business combinations |
6 | 576 | 1,587 |
| PNL Impact of Contingent Consideration | 204 | $\Omega$ | O |
| Restructuring costs | O | $\Omega$ | O |
| Gains or losses from sales of fixed assets | $\Omega$ | $-14$ | $-26$ |
| Adjusted EBITA | 8,302 | 5,109 | 21,987 |
| EBIT | 7,134 | 3,602 | 16,637 |
| Depreciations | 704 | 570 | 2,310 |
| Amortisation of intangible assets identified in PPA |
957 | 946 | 3,789 |
| EBITDA | 8,794 | 5,118 | 22,736 |
| Figure | Definition |
|---|---|
| EBITDA | Operating profit + depreciations and amortization. |
| EBITDA margin, % | Operating profit + depreciations and amortization divided by net sales and multiplied by a hundred. |
| Operating profit before amortization of intangible assets identified in PPA and impairment of goodwill (EBITA) |
Operating profit + amortization of intangible assets identified in purchase price allocation (PPA) + impairment of goodwill. |
| Operating profit before amortization of intangible assets identified in PPA and impairment of goodwill (EBITA) margin, % |
Operating profit + amortization of intangible assets identified in purchase price allocation (PPA) + impairment of goodwill divided by net sales and multiplied by a hundred. |
| Operating profit (EBIT) margin, % | Operating profit divided by net sales and multiplied by a hundred. |
| Earnings per share (EPS), euros | Profit for the period attributable for shareholders of the company divided by the weighted average number of shares outstanding during the financial period adjusted for share issues, multiplied by a hundred. |
| Earnings per share (EPS), euros, diluted | Profit for the period attributable for shareholders of the company divided by the weighted average number of shares outstanding during the financial period adjusted for share issues added with new potential shares, multiplied by a hundred. |
G
| Figure | Definition |
|---|---|
| Effective dividend yield, % | Dividend per share divided by share price at the end of the financial period. |
| $P/E$ -ratio | Share price at the end of financial period divided by Earning per share, undiluted, multiplied by a hundred |
| Return on equity (ROE), % | Profit for the period (annualised) divided by average total equity, multiplied by a hundred. |
| Return on investment (ROI), % | Profit before taxes (annualised) + financial expenses (annualised) divided by average total equity + average interest- bearing loans and borrowings, multiplied by a hundred. |
| Equity ratio, % | Total equity divided by balance sheet total – advances received, multiplied by a hundred. |
| Net gearing, % | Non-current interest-bearing liabilities + Non-current lease liabilities + Current interest-bearing liabilities + Current lease liabilities - Cash and cash equivalents - Other rights of ownership under Current and Non-current investments, divided by total equity and multiplied by a hundred. |
| Figure | Definition |
|---|---|
| Full-time Equivalent, FTE | Overall capacity of the Group's personnel, converted into a value corresponding to the number of full-time employees. The figure includes the entire personnel, regardless of their role. The figure is not affected by annual leave, time-off in lieu of overtime, sick leave or other short-term absences. Part-time agreements and other long-term deviations from normal working hours reduce the amount of overall capacity in comparison with the total number of employees. The capacity of acquired companies' personnel has been considered as of the acquisition date. |
| Subcontracting, FTE | Subcontracting, FTE (Full Time Equivalent) figure shows the overall amount of subcontracting used in invoiced work, converted into a value corresponding to the number of full-time employees. Subcontracting used by acquired companies has been included as of the acquisition date. |
| Number of employees, at the end of the period | The number of employees at the end of the review period. |
| Attrition rate | The number of terminated employment divided by the number of staff at the end of the reporting period. Therefore, attrition rate numbers from time periods of different lengths are not comparable. |
| Adjusted EBITA | Reported EBITA + (+ goodwill impairment +/- costs/gains directly related to acquiring business combinations +/- costs/ gains from contingent considerations+ restructuring costs of business structure - gains of sales of fixed assets + losses of sales of fixed assets). |
| Adjusted EBITA, % | Reported EBITA + (+ goodwill impairment +/- costs/gains directly related to acquiring business combinations +/- costs/ gains from contingent considerations+ restructuring costs of business structure – gains of sales of fixed assets + losses of sales of fixed assets) divided by net sales and multiplied by a hundred. |
| Organic growth | Organic growth is defined by comparing the quarterly net sales in the Group income statement with the net sales of the previous reporting period's corresponding quarter. The growth is calculated with a comparable Group structure using the Group structure of the time of reporting to calculate pro forma net sales for the corresponding period. The pro forma net sales include the impact of acquisitions and divestments retroactively and is unaudited. |
| Last twelve months' net sales, LTM | The last twelve months (LTM) pro forma net sales figure that the company uses tells the net sales for the Group structure of the time of reporting. The pro forma net sales include the impact of acquisitions and divestments retroactively and is unaudited. |
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