Webstep

Earnings Release • Aug 27, 2024

Webstep ASA: Second quarter results 2024

Webstep ASA: Second quarter results 2024

Oslo, 27 August 2024: Webstep ASA today reports revenues of NOK 258.3 million

(249.5) for the second quarter of 2024, a growth of 3.5 percent. EBIT was NOK

18.9 million (17.6), an increase of 7.4 percent, corresponding to an EBIT margin

of 7.3 percent (7.1)

In May, Webstep entered into an agreement to sell its Swedish operations, and

the transaction was closed in July. The continuing Norwegian operation increased

its revenue by 8.0 percent to NOK 229.5 million (212.5)  in the second quarter.

The EBIT margin for the Norwegian business was 8.3 percent, up from 7.8 percent

in the corresponding quarter last year.

"Webstep made significant progress in the second quarter. We continued to grow

our revenues, we continued to deliver on our cost reduction program announced

last year, and we entered into an agreement to divest our Swedish operation. We

firmly believe that streamlining the organisation will support growth and

profitability both in the short and medium term.," said CEO of Webstep, Kristine

Lund.

Webstep's Norwegian business had 451 FTEs at the end of the second quarter

(459). The change was related to the cost reduction program affecting non

-billable FTEs executed in the fourth quarter of 2023. Compared to the end of

the first quarter 2024, FTE grew by 3.

"We will continue to balance growth and profitability. This means that we

constantly will seek to selectively recruit additional consultants in order to

further grow our revenue capacity, while keeping a close eye on utilisation and

cost. In Bergen, for example, we are delighted to see a net growth in the number

of colleagues. This strengthens our position particularly among large customers

in the region," said Kristine Lund.

The divestment of the Swedish operation, combined with a solid cash flow from

running business has strengthened Webstep's financial position.The Board of

Directors has decided to propose allocating approximately half of the surplus

cash for the repurchase of the company's own shares in the Fall of 2024, with

the remaining half to be distributed as an extra dividend to shareholders in the

Spring of 2025. A notice for an Extraordinary General Meeting of Shareholders,

where the proposal will be presented in detail, will be made available in

September.

Webstep maintains its long-term goal of more than 10 percent EBIT margin.

"Webstep is on a long-term journey, and we will be fully focused on continued

growth and profit improvement. Our strong market position, good reputation,

large base of returning customers, and, not the least, our experienced and

highly competent team, means that we have a great opportunity to enhance our

customer value proposition, delivering on our long-term ambitions," Kristine

Lund concludes.

Contact details for further information:

Nina Stemshaug, Interim CFO

Cell: +47 982 60 394

Email: ir@webstep.com

Website : www.webstep.com

Webstep ASA is a provider of consultancy services to the private and public

sector, with the IT expertise necessary to deliver the most demanding

digitalisation and IT services.

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act