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Columbus Interim / Quarterly Report 2021
3396_rns_2021-08-18_de55430b-4516-4bbc-a5cc-05d2fcd68045.pdf
Interim / Quarterly Report
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Columbus A/S | CVR no. 13 22 83 45
Columbus
Once you know how...
Interim Report H1/2021
Columbus
18 August 2021
Highlights
Solid development in second quarter of 2021, where progress in key business areas, tight cost control and high efficiency in the services business have driven the results.
Financial highlights
- Revenue increased by 6% in Q2 2021 to DKK 426m (Q2 2020: 402m).
- EBITDA increased by 12% in Q2 2021 to DKK 31m (Q2 2020: 28m).
- Profit before tax increased by 14% to DKK 13m (Q2 2020: 12m).
- Extraordinary dividend pay-out of DKK 6 per share, amounting to DKK 776m in total.
All numbers and comments in the H1 report are on the continued business, thus excluding discontinued operations (excluding the divested entities To-Increase and Baltics).
Operational highlights
- Our new CEO, Søren Krogh Knudsen, joined Columbus 7 June 2021.
- High utilization in our consultancy business rising from 55% to 59%.
"We are satisfied with the result for Q2 and the first 6 months overall. Columbus has reached the first milestones in executing the Focus23 strategy, comprising the re-organization of the company in a new customer focused matrix structure. It is time to unleash the full potential of our skilled employees, relevant end-to-end solutions and the increasing demand for digitalization services", says CEO and President Søren Krogh Knudsen.
Contents
Highlights 2
Solid results – momentum implementing the Focus23 strategy 3
Key figures and ratios 4
High market demands result in 6% revenue growth in Q2 2021 5
Outlook for 2021 8
Statement by management 9
Financial statements 10
Columbus A/S
Ballerup (Headquarter)
Lautrupvang 6
DK-2750 Ballerup
Tel: +45 70 20 50 00
Columbus
Solid results – momentum implementing the Focus23 strategy
Columbus delivered a satisfactory second quarter of 2021 with progress across the majority of the business, thus accelerating recruitment of new talents to keep up with market demand. A major step of the Focus23 strategy is being executed to refocus the company around the larger customers in our key industries. It is time to claim a larger market share.
Increased demand and high efficiency
Columbus delivered a solid Q2 with 6% revenue growth which almost compensated for the revenue decline from Q1. Total revenue for the first 6 months is in line with last year amounting to DKK 847 (2020: DKK 859m.).
During Q2, we have experienced an increased demand for our services and solutions in our markets. Especially our key strategic business areas Digital Commerce, Data & Analytics and Customer Experience delivered strong growth in Q2 as expected.
EBITDA grew by 12% in Q2 which is due to continued high efficiency in our consultancy business. In order to keep up with the demand from our customers we are in the process of staffing up in all areas of the business.
We are satisfied with the results for the first six months of the year, which undoubtedly has been driven by team effort and our employees' commitment to Columbus' customers.
Strong foundation for growth
For many years, Columbus has been leading within the ERP space in our key industries and geographical markets and has at the same time managed to stay relevant and innovative. In recent years, Columbus has established a strong market position within digital transformation offering end-to-end digital solutions which has opened new opportunities to help our customers in their entire digital transformation journey.
Customer-focused and solution-driven
With the new strategy, Focus23, Columbus has framed the next step in our growth journey to become digital trusted advisor for our customers. The strategy is being executed as we speak, prioritizing the Focus & Simplify initiatives comprising a new operating model. In Q2, we reorganized Columbus, refocusing the company around our larger customers with local Market Units and around solutions with global Business Lines. As we continue to build on our strategy this new setup leads to a simplified operation, increased accountability, faster decision-making and empowering our employees to a greater extent.
Time to claim a larger market share
When I look at Columbus, I see a company in good progress with increasing momentum in executing the Focus23 strategy, with talented and passionate people, relevant end-to-end solutions portfolio, and global innovation capabilities. I also see a potential for more, and my goal is to fully unleash the true potential of the company.
With the Focus23 strategy I believe that we are on the right track to take Columbus to the next level and conquer our share of the market within the digital advisory space – always with the purpose of delivering value to our customers.
Søren Krogh Knudsen
CEO & President
Columbus
Key figures and ratios
| DKK '000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
|---|---|---|---|---|---|
| Income related figures | |||||
| Sale of services | 348,433 | 323,820 | 697,674 | 693,220 | 1,261,455 |
| Sale of products | 77,917 | 77,927 | 149,297 | 165,419 | 316,877 |
| Net revenue | 426,350 | 401,747 | 846,971 | 858,639 | 1,578,332 |
| Recurring revenue % of total revenue | 24.1% | 23.0% | 22.8% | 21.6% | 18.6% |
| EBITDA before share-based payment | 31,630 | 29,267 | 87,072 | 69,806 | 138,705 |
| EBITDA | 31,328 | 28,051 | 86,468 | 67,373 | 134,226 |
| EBIT | 18,517 | 15,022 | 60,526 | 40,295 | 80,995 |
| Net financial items | -5,074 | -3,212 | 580 | -5,042 | -16,852 |
| Profit before tax | 13,443 | 11,810 | 61,106 | 35,253 | 64,143 |
| Profit after tax, continuing operations | 9,466 | 10,483 | 54,559 | 31,060 | 53,734 |
| Profit after tax, discontinued operations | -132 | 9,365 | 720,454 | 11,529 | -5,172 |
| Profit after tax | 9,334 | 19,848 | 775,013 | 42,589 | 48,562 |
| DKK '000 | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 | ||
| --- | --- | --- | --- | ||
| Balance sheet* | |||||
| Non-current assets | 975,021 | 1,164,995 | 987,440 | ||
| Current assets | 518,273 | 510,686 | 438,944 | ||
| Assets classified as held for sale | 0 | 0 | 214,481 | ||
| Total assets | 1,493,294 | 1,675,681 | 1,640,865 | ||
| Group shareholder equity | 773,522 | 690,770 | 712,421 | ||
| Minority interests | 0 | 3,204 | 3,184 | ||
| Total liabilities | 719,772 | 981,707 | 831,369 | ||
| Total liabilities relating to assets classified as held for sale | 0 | 0 | 93,891 | ||
| Total equity and liabilities | 1,493,294 | 1,675,681 | 1,640,865 | ||
| DKK '000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
| --- | --- | --- | --- | --- | --- |
| Investments in tangible assets | 1,603 | 851 | 3,637 | 2,243 | 3,832 |
| Cash flow | |||||
| Cash flow from operating activities | -10,246 | 133,102 | 6,095 | 169,074 | 190,862 |
| Cash flow from investing activities | -82,745 | -51,816 | 722,063 | -96,700 | -127,830 |
| Cash flow from financing activities | -633,951 | -10,703 | -672,907 | -22,168 | -43,972 |
| Total net change in cash and cash equivalents | -726,942 | 70,583 | 55,251 | 50,206 | 19,060 |
| Key ratios | |||||
| EBITDA-margin | 7.3% | 7.0% | 10.2% | 7.8% | 8.5% |
| Operating profit margin | 4.3% | 3.7% | 7.1% | 4.7% | 5.1% |
| Equity ratio** | 51.8% | 41.2% | 51.8% | 41.2% | 43.4% |
| Return on equity** | 1.3% | 2.9% | 105.9% | 6.3% | 7.0% |
| Return on invested capital (ROIC)** | 2.9% | 2.1% | 8.9% | 5.5% | 11.9% |
| Number of shares | 129,276 | 124,622 | 129,276 | 124,622 | 124,622 |
| Average number of shares | 127,083 | 124,622 | 127,083 | 124,622 | 124,622 |
| Book value of equity per share (BVPS) | 6.62 | 5.54 | 5.98 | 5.54 | 5.72 |
| Earnings per share (EPS) from continuing operations | 0.07 | 0.08 | 0.43 | 0.25 | 0.43 |
| Cash flow per share | -0.08 | 1.07 | 0.05 | 1.36 | 1.53 |
| Share price, end of period | 10.64 | 7.47 | 10.64 | 7.47 | 11.24 |
| Average full time employee for the period | 1,632 | 1,729 | 1,648 | 1,825 | 1,707 |
*All 2020 balance sheet items include Baltics which were sold March 2021. Balance sheet items as of June 2020 include To-Increase which were classified as held for sale as of Q3 2020
** Key ratios are calculated with balance sheet items including assets classified as held for sale
The key figures and financial ratios above have been calculated in accordance with Danish Finance Society "Recommendation & Financial Ratios"
Columbus
High market demands result in 6% revenue growth in Q2 2021
Revenue development
Columbus realised a revenue of DKK 426m in Q2 2021 corresponding to an increase of 6%. Organically, the revenue increased by 5%. The increase is partly due to high demand from our customers and the fact that Q2 last year was hit hard by the uncertainty related to the Covid-19 pandemic. The revenue growth in Q2 2021 comes from all our Market Units except Russia and US.
With the revenue growth in Q2, the revenue gap from Q1 is almost closed leaving a cumulated decline in organic revenue of 2% in H1 2021. The revenue decline is caused by all Market Units except Columbus Norway, which has delivered significant growth in H1 2021.
The positive development in Norway is driven by all Business Lines. In addition, we have had a successful integration of our acquisitions of Advania Business Solutions, which we made in January last year where we have achieved the expected synergies.
EBITDA improved significantly
In Q2 2021 reported EBITDA increased by 12% to DKK 31m. Normalized EBITDA¹ increased by 3% providing normalized EBITDA-margin of 7.4%.
Columbus realised an EBITDA increase of 28% in H1 2021 amounting to DKK 86m. Normalized EBITDA¹ increased by 18% providing normalized EBITDA-margin in H1 2021 to 10.3%.
The EBITDA increase is mainly driven by significantly higher customer work amounting to 59% vs. 55% last year and by cost savings, in particular less travel costs and employee related costs.
| DKKm | Q2 2021 | Q2 2020 | Δ% | H1 2021 | H1 2020 | Δ% |
|---|---|---|---|---|---|---|
| Revenue reported | 426 | 402 | 6% | 847 | 859 | -1% |
| Foreign exchange | -5 | 0 | 0% | -4 | 0 | 0% |
| Organic revenue | 421 | 402 | 5% | 843 | 859 | -2% |
| EBITDA reported | 31 | 28 | 12% | 86 | 67 | 28% |
| Adjustment of provision for loss making contract | 0 | 2 | -100% | 0 | 6 | -100% |
| Normalized EBITDA¹ | 31 | 30 | 3% | 86 | 73 | 18% |
| Normalized EBITDA-margin | 7.4% | 7.6% | -1.8% | 10.3% | 8.5% | 20.0% |
¹ EBITDA adjusted for provision for loss-making contract
Development in customer work
1 EBITDA adjusted for provision for loss-making contract
Columbus
Development in service revenue and business segments
Service revenue increased by 8% to DKK 348m in Q2 2021. The increase is driven by all our Business Lines, where especially Columbus Care, Digital Commerce and Data & Analytics increased with double digit numbers, 18%, 16% and 33% growth compared to Q2 last year.
In H1 2021, service revenue increased by 1% to DKK 698m. The increase is driven by all our Business Lines except Cloud ERP, which is still impacted by the reduced number of consultants compared to last year.
The high demand for digital transformation we saw in Q1 continued into Q2 and in particular our new strategic Business Lines such as Digital Commerce, Data & Analytics and Customer Experience &
Engagement are delivering satisfactory growth.
Profit before tax
Columbus realised a profit before tax of DKK 13m in Q2 2021, corresponding to an increase of 14%. The increase is mainly driven by the positive development in EBITDA.
In H1 2021, Columbus realised a profit before tax of DKK 61m, corresponding to an increase of 73%. The increase is mainly driven by the positive development in EBITDA and financial income from currency adjustments.
Increase in recurring revenue
In Q2 2021, recurring revenue increased by 11% to DKK 103m (Q2 2020 DKK 93m).
The recurring revenue continues to constitute a larger part of the total revenue with Q2 recurring revenue constituting 24% of total revenue (Q2 2020: 23%).
The development in the recurring revenue in Q2 shows great progress in Columbus Care contracts (+21%) and Cloud products (+75%) and a decline in subscriptions (-13%). Going forward, Columbus expects subscriptions to decline as part of the cloud conversion.
In H1 2021, recurring revenue increased by 4% to DKK 193m (H1 2020 DKK 185m). Recurring revenue in H1 2021 constituted 23% of total revenue (H1 2020: 22%).
Development in recurring revenue
DKKm
Service revenue split on Business Lines
Development in service revenue
Columbus
Cash
Development in cash flow in Q2 2021 was negative with DKK 727m, mainly due to the extraordinary dividend payment of DKK 694m and payment of earn-out of DKK 74m in April 2021. Cash flow from operating activities was negative with DKK 10m, as Columbus has decided to pay a significant amount in withheld holiday allowance to a holiday fund in Denmark in June 2021.
The development in cash flow in H1 2021 was positive with DKK 55m, mainly due to the divestments made in Q1 2021 amounting to DKK 816m and the significant transactions in Q2 as just mentioned above. In total, Columbus' cash position improved by DKK 62m compared to 31 December 2020.
Equity
Columbus' equity has increased by DKK 61m since 31 December 2020, primarily due to the positive net result and the executed divestments. With a total equity of DKK 774m, Columbus has a solvency of 52% (2020: 43%). The high solvency ratio together with the cash position leaves Columbus in a strong financial position.
Events after the balance sheet date
Due to Columbus' high cash position, the Board of Directors has decided to repay DKK 100m in bank loan in July 2021.
No other events or transactions with a material effect on the company's financial position have occurred since the balance sheet date.
Columbus
Outlook for 2021
Financial guidance
Despite the continued Covid-19 uncertainty and the negative market impact, the management believes that there are good business opportunities going forward.
Columbus' ambition is to gradually increase profitable growth to minimum 10% annually by 2023.
Based on the financial performance in H1 2021, current order book and pipeline, our guidance for full-year 2021 will remain unchanged as follows:
Revenue is expected to be in the range of DKK 1,650m – 1,800m corresponding to a growth of 5% to 14%.
EBITDA is expected to be in the range of DKK 125m – 150m corresponding to an increase of 1% to 21% compared to the 2020 EBITDA adjusted for customer provision and earn-out adjustments.
| DKKm | Revenue | EBITDA | ||||
|---|---|---|---|---|---|---|
| 2021 Outlook | 1,650 | - | 1,800 | 125 | - | 150 |
| Implied growth to 2020 result | 5% | - | 14% | 1% | - | 21% |
Columbus
Statement by management
We have today considered and approved the interim financial report for the period 1 January 2021 – 30 June 2021 for Columbus A/S.
The interim financial report has been prepared in accordance with IAS 34 and additional Danish interim reporting requirements for listed companies. The interim financial report is unaudited and has not been reviewed by the Company's auditor.
We consider the accounting policies applied to be appropriate to the effect that the interim financial report gives a true and fair view of the Group's assets, liabilities and financial position at 30 June 2021, and of the results of the Group's operations and cash flows during the first half of 2021.
We consider the management report to give a true and fair view of the development in the Group's business activities and financial situation, the financial result for the period and the Group's financial position as a whole together with a true and fair description of the significant risks and uncertainty factors which the Group faces.
Ballerup, 18 August 2021
Executive Board
Søren Krogh Knudsen
CEO & President
Hans Henrik Thrane
Corporate CFO
Board of Directors
Columbus Interim Report H1/2021
Financial statements
Columbus Interim Report H1 2021
Statement of comprehensive income
| DKK '000 | Note | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
|---|---|---|---|---|---|---|
| Net revenue | 2 | 426,350 | 401,747 | 846,971 | 858,639 | 1,578,332 |
| External project costs | -86,613 | -91,916 | -163,214 | -190,346 | -333,541 | |
| Gross profit | 339,737 | 309,831 | 683,757 | 668,293 | 1,244,791 | |
| Staff expenses and remuneration | 3 | -276,652 | -252,127 | -543,460 | -524,276 | -1,010,972 |
| Other external costs | -31,531 | -28,445 | -53,541 | -74,210 | -141,362 | |
| Other operating income | 79 | 12 | 321 | 4 | 46,265 | |
| Other operating costs | -3 | -4 | -5 | -5 | -17 | |
| EBITDA before share-based payment | 31,630 | 29,267 | 87,072 | 69,806 | 138,705 | |
| Share-based payment | 3 | -302 | -1,216 | -604 | -2,433 | -4,479 |
| EBITDA | 31,328 | 28,051 | 86,468 | 67,373 | 134,226 | |
| Depreciation, amortization and impairment | 4 | -12,811 | -13,029 | -25,942 | -27,078 | -53,231 |
| Operating profit (EBIT) | 18,517 | 15,022 | 60,526 | 40,295 | 80,995 | |
| Financial income | 456 | 39 | 8,629 | 183 | 949 | |
| Financial expenses | -5,530 | -3,251 | -8,049 | -5,225 | -17,801 | |
| Profit before tax from continuing operations | 13,443 | 11,810 | 61,106 | 35,253 | 64,143 | |
| Corporate tax | -3,977 | -1,327 | -6,547 | -4,193 | -10,409 | |
| Profit after tax from continuing operations | 9,466 | 10,483 | 54,559 | 31,060 | 53,734 | |
| Profit after tax from discontinued operations | 8 | -132 | 9,365 | 720,454 | 11,529 | -5,172 |
| Profit after tax for the period | 9,334 | 19,848 | 775,013 | 42,589 | 48,562 | |
| DKK '000 | Note | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
| --- | --- | --- | --- | --- | --- | --- |
| Items that may be reclassified subsequently to profit and loss: | ||||||
| Foreign exchange adjustments of subsidiaries | 3,990 | 20,498 | 5,453 | -19,528 | -5,916 | |
| Other comprehensive income | 3,990 | 20,498 | 5,453 | -19,528 | -5,916 | |
| Total comprehensive income for the period | 13,324 | 40,346 | 780,466 | 23,061 | 42,646 | |
| Profit after tax allocated to: | ||||||
| Shareholders in Columbus A/S | 9,334 | 19,562 | 775,620 | 42,504 | 48,492 | |
| Minority interests | 0 | 286 | -607 | 85 | 70 | |
| 9,334 | 19,848 | 775,013 | 42,589 | 48,562 | ||
| Total comprehensive income allocated to: | ||||||
| Shareholders in Columbus A/S | 13,324 | 40,066 | 781,074 | 22,983 | 42,588 | |
| Minority interests | 0 | 280 | -608 | 78 | 58 | |
| 13,324 | 40,346 | 780,466 | 23,061 | 42,646 | ||
| Earnings per share of DKK 1.25 (EPS) | 0.07 | 0.16 | 6.10 | 0.34 | 0.39 | |
| Earnings per share of DKK 1.25, diluted (EPS-D) | 0.07 | 0.16 | 6.07 | 0.34 | 0.39 |
Columbus Interim Report H1 2021
Balance sheet
| DKK '000 | Note | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
|---|---|---|---|---|
| ASSETS | ||||
| Goodwill | 766,367 | 851,212 | 776,961 | |
| Customer base | 35,164 | 52,274 | 41,394 | |
| Other intangible assets | 24,964 | 9,459 | 17,805 | |
| Development projects finalized | 3,741 | 65,091 | 3,397 | |
| Development projects in progress | 0 | 22,303 | 940 | |
| Property, plant and equipment | 9,445 | 11,271 | 8,674 | |
| Right-of-use assets | 74,629 | 103,306 | 87,616 | |
| Deferred tax assets | 41,572 | 42,308 | 43,390 | |
| Other receivables | 19,139 | 7,771 | 7,263 | |
| Total non-current assets | 975,021 | 1,164,995 | 987,440 | |
| Trade receivables | 5 | 239,622 | 246,426 | 222,571 |
| Contract assets | 6 | 7,566 | 34,814 | 14,733 |
| Corporate tax receivables | 3,561 | 618 | 871 | |
| Other receivables | 3,295 | 4,809 | 8,058 | |
| Prepayments | 37,897 | 33,104 | 28,498 | |
| Receivables | 291,941 | 319,771 | 274,731 | |
| Cash | 226,332 | 190,915 | 164,213 | |
| Total current assets | 518,273 | 510,686 | 438,944 | |
| Assets classified as held for sale | 10 | 0 | 0 | 214,481 |
| TOTAL ASSETS | 1,493,294 | 1,675,681 | 1,640,865 | |
| DKK '000 | Note | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
| --- | --- | --- | --- | --- |
| EQUITY AND LIABILITIES | ||||
| Share capital | 161,596 | 155,778 | 155,778 | |
| Reserves on foreign currency translation | -40,815 | -59,886 | -46,269 | |
| Retained profit | 652,741 | 594,878 | 602,912 | |
| Group shareholders' equity | 773,522 | 690,770 | 712,421 | |
| Minority interests | 0 | 3,204 | 3,184 | |
| Equity | 773,522 | 693,974 | 715,605 | |
| Deferred tax | 20,975 | 31,206 | 24,493 | |
| Other provisions | 1,026 | 24,498 | 21,337 | |
| Debt to credit institutions | 176,000 | 176,000 | 176,000 | |
| Lease liability right-of-use assets | 46,789 | 71,875 | 59,929 | |
| Non-current liabilities | 244,790 | 303,579 | 281,759 | |
| Contingent consideration | 6,539 | 128,819 | 81,594 | |
| Contract liabilities | 6 | 12,260 | 19,305 | 19,607 |
| Trade payables | 54,264 | 70,371 | 69,210 | |
| Corporate tax payables | 5,665 | 18,435 | 10,202 | |
| Other payables | 326,039 | 316,725 | 300,470 | |
| Other provisions | 7,000 | 16,712 | 6,722 | |
| Accruals and deferred income | 31,781 | 70,905 | 29,799 | |
| Lease liability right-of-use assets | 31,434 | 36,856 | 32,006 | |
| Current liabilities | 474,982 | 678,128 | 549,610 | |
| Total liabilities | 719,772 | 981,707 | 831,369 | |
| Total liabilities relating to assets classified as held for sale | 10 | 0 | 0 | 93,891 |
| TOTAL EQUITY AND LIABILITIES | 1,493,294 | 1,675,681 | 1,640,865 |
Columbus Interim Report H1 2021
Statement of changes in equity
| DKK '000 | Shareholders in Columbus A/S | Minority interests | Equity | ||
|---|---|---|---|---|---|
| Share capital | Reserves on foreign currency translation | Retained profits | |||
| YTD 2021 | |||||
| Balance at 1 Jan 2021 | 155,778 | -46,269 | 602,912 | 3,184 | 715,605 |
| Profit after tax | 0 | 0 | 775,620 | -607 | 775,013 |
| Currency adjustments of investments in subsidiaries | 0 | 5,454 | 0 | -1 | 5,453 |
| Total comprehensive income | 0 | 5,454 | 775,620 | -608 | 780,466 |
| Capital increase | 5,818 | 0 | 50,752 | 0 | 56,570 |
| Share-based payment | 0 | 0 | -886 | 0 | -886 |
| Disposal of minority interest | 0 | 0 | 0 | -2,576 | -2,576 |
| Payment of dividend | 0 | 0 | -775,657 | 0 | -775,657 |
| Balance at 30 Jun 2021 | 161,596 | -40,815 | 652,741 | 0 | 773,522 |
| DKK '000 | Shareholders in Columbus A/S | Minority interests | Equity | ||
| --- | --- | --- | --- | --- | --- |
| Share capital | Reserves on foreign currency translation | Retained profits | |||
| YTD 2020 | |||||
| Balance at 1 Jan 2020 | 155,778 | -40,365 | 549,941 | 3,126 | 668,480 |
| Profit after tax | 0 | 0 | 42,504 | 85 | 42,589 |
| Currency adjustments of investments in subsidiaries | 0 | -19,521 | 0 | -7 | -19,528 |
| Total comprehensive income | 0 | -19,521 | 42,504 | 78 | 23,061 |
| Share-based payment | 0 | 0 | 2,433 | 0 | 2,433 |
| Balance at 30 Jun 2020 | 155,778 | -59,886 | 594,878 | 3,204 | 693,974 |
| DKK '000 | Shareholders in Columbus A/S | Minority interests | Equity | ||
| --- | --- | --- | --- | --- | --- |
| Share capital | Reserves on foreign currency translation | Retained profits | |||
| 2020 | |||||
| Balance at 1 Jan 2020 | 155,778 | -40,365 | 549,941 | 3,126 | 668,480 |
| Profit after tax | 0 | 0 | 48,492 | 70 | 48,562 |
| Currency adjustments of investments in subsidiaries | 0 | -5,904 | 0 | -12 | -5,916 |
| Total comprehensive income | 0 | -5,904 | 48,492 | 58 | 42,646 |
| Share-based payment | 0 | 0 | 4,479 | 0 | 4,479 |
| Balance at 31 Dec 2020 | 155,778 | -46,269 | 602,912 | 3,184 | 715,605 |
Columbus Interim Report H1 2021
Cash flow
| DKK '000 | Note | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
|---|---|---|---|---|---|---|
| Operating profit (EBIT) | 18,517 | 15,022 | 60,526 | 40,295 | 80,995 | |
| Non-recurring income and expenses from acquisitions | 0 | 0 | 0 | 0 | -45,766 | |
| Depreciation, amortization and impairment | 4 | 12,811 | 13,029 | 25,942 | 27,078 | 53,231 |
| Cost of incentive scheme | -1,189 | 1,217 | -884 | 2,435 | 4,480 | |
| Changes in net working capital | -43,479 | 60,612 | -69,046 | 62,262 | 31,574 | |
| Cash flow from primary activities | -13,340 | 89,880 | 16,538 | 132,070 | 124,514 | |
| Interest received, etc. | -3,185 | -320 | 4,865 | 224 | 594 | |
| Interest paid, etc. | -411 | 17,342 | -6,080 | -3,119 | -3,363 | |
| Corporate tax paid | 2,226 | -2,152 | -13,851 | -2,570 | -6,019 | |
| Cash flow from operating activities discontinued operations | 8 | 4,464 | 28,352 | 4,623 | 42,469 | 75,136 |
| Cash flow from operating activities | -10,246 | 133,102 | 6,095 | 169,074 | 190,862 | |
| Net investment in development projects | 0 | -436 | -2 | -435 | 509 | |
| Acquisition of tangible assets | -1,603 | -851 | -3,637 | -2,243 | -3,832 | |
| Acquisition of intangible assets | -2,059 | 0 | -8,169 | 0 | -9,408 | |
| Disposal of tangible assets | 14 | 0 | 2 | 0 | 0 | |
| Acquisition of subsidiaries and activities | 7 | -74,152 | -38,645 | -74,152 | -74,015 | -75,147 |
| Disposals of subsidiaries and activities | 9 | -481 | 0 | 815,500 | 0 | -2,696 |
| Cash flow from investing activities discontinued operations | 8 | -4,464 | -11,884 | -7,479 | -20,007 | -37,256 |
| Cash flow from investing activities | -82,745 | -51,816 | 722,063 | -96,700 | -127,830 | |
| DKK '000 | Note | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
| --- | --- | --- | --- | --- | --- | --- |
| Proceeds from capital increase/warrants exercised | 56,570 | 0 | 56,570 | 0 | 0 | |
| Repayment of lease liabilities | -8,557 | -8,788 | -17,354 | -18,261 | -36,050 | |
| Dividends paid | -693,914 | 0 | -693,914 | 0 | 0 | |
| Cash flow from financing activities discontinued operations | 8 | 11,950 | -1,915 | -18,209 | -3,907 | -7,922 |
| Cash flow from financing activities | -633,951 | -10,703 | -672,907 | -22,168 | -43,972 | |
| Total net change in cash and cash equivalents | -726,942 | 70,583 | 55,251 | 50,206 | 19,060 | |
| Cash funds at the beginning of the period | 951,698 | 118,746 | 164,213 | 147,265 | 147,264 | |
| Exchange rate adjustments | 1,576 | 1,586 | 6,868 | -6,556 | -2,111 | |
| Cash funds at the end of the period | 226,332 | 190,915 | 226,332 | 190,915 | 164,213 |
Columbus Interim Report H1 2021
Notes
| Note | Page |
|---|---|
| Note 1 – Significant accounting principles | 16 |
| Note 2 – Segment data | 17 |
| Note 3 – Staff expenses and remuneration | 21 |
| Note 4 – Depreciation, amortization and impairment | 21 |
| Note 5 – Trade receivables | 22 |
| Note 6 – Contract assets and contract liabilities | 23 |
| Note 7 – Business combinations | 24 |
| Note 8 – Discontinued operations | 25 |
| Note 9 – Disposal of subsidiaries | 26 |
| Note 10 – Assets classified as held for sale | 27 |
| Key figures, ratios and Alternative Performance Measures | 28 |
Columbus Interim Report H1 2021
Notes
Note 1 – Significant accounting principles
The consolidated interim financial report is prepared in accordance with IAS 34, Presentation of Interim Financial Reporting, as approved by the EU. The interim financial report is presented in Danish kroner (DKK), which is the Parent Company's functional currency.
The accounting policies applied in the interim financial report are prepared in accordance with International Financial Reporting Standards, as approved by the EU, and additional Danish disclosure requirements for interim financial reports of listed companies and is unchanged compared to 2020, except for any new, amended or revised accounting standards and interpretations endorsed by the EU, effective for the accounting period beginning on 1 January 2021, as well as the following accounting policies.
Gains and losses on divestments or dissolvement of subsidiaries or associates
Gains or losses on divestments or dissolvements of subsidiaries and associates are stated as the difference between the sales price or settlement price and the fair value of any remaining equity and the book value of net assets on the time of sale or winding up, including goodwill, less any minority interests. Gains or losses are recognized in the statement of comprehensive income as well as accumulated foreign currency translation adjustments previously recognized in other comprehensive income.
For more information on the accounting policies, we refer to our Annual Report for 2020.
Columbus Interim Report H1 2021
Notes
Note 2 – Segment data
In order to support decisions about allocation of resources and assessment of performance of the segments, the Group's internal reporting to the Board of Directors of the Parent Company is based on the following grouping of operating segments:
| Strategic Business Lines | Market Units |
|---|---|
| Cloud ERP | Sweden |
| Columbus Care | Denmark |
| Digital Commerce | Norway |
| Data & Analytics | UK |
| Customer Experience & Engagement | US |
| Other Local Business | Russia |
Management monitors the business primarily based on the Business Lines and the geographical segments. Information about the Group's Business Lines is stated below.
| DKK '000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
|---|---|---|---|---|---|
| Sale of services | |||||
| Cloud ERP | 203,795 | 198,207 | 417,732 | 435,309 | 779,904 |
| Columbus Care | 68,347 | 57,870 | 131,275 | 122,328 | 233,143 |
| Digital Commerce | 42,019 | 36,258 | 81,452 | 74,139 | 128,059 |
| Data & Analytics | 7,862 | 5,905 | 12,969 | 11,843 | 24,007 |
| Customer Experience & Engagement | 7,342 | 7,010 | 15,706 | 12,743 | 23,762 |
| Other Local Business | 19,068 | 18,570 | 38,540 | 36,858 | 72,581 |
| Total sale of services | 348,433 | 323,820 | 697,674 | 693,220 | 1,261,455 |
| Sale of products | |||||
| Cloud ERP | 57,929 | 58,601 | 114,457 | 129,692 | 248,085 |
| Columbus Care | 6,330 | 4,684 | 10,131 | 9,171 | 19,676 |
| Digital Commerce | 3,671 | 2,636 | 7,179 | 5,821 | 10,196 |
| Data & Analytics | 374 | 155 | 655 | 473 | 895 |
| Customer Experience & Engagement | 523 | 448 | 992 | 1,280 | 2,741 |
| Other Local Business | 9,089 | 11,403 | 15,882 | 18,982 | 35,283 |
| Total sale of products | 77,917 | 77,927 | 149,297 | 165,419 | 316,877 |
| Total net revenue | 426,350 | 401,747 | 846,971 | 858,639 | 1,578,332 |
During the launch of the Focus23 strategy, management has changed the way the business is assessed. In order to support decisions and the Focus23 strategy, the operating segments have been divided into Business Lines and Market Units.
Business Lines relate to the type of services or products that are delivered, and comprise of Cloud ERP, Columbus Care, Data & Analytics, Customer Experience & Engagement and Other Local Business. Market Units comprise of significant geographical markets that the group operates in. The Market Units are classified as being the market where the customer is located, rather than the legal entity it is delivered by.
The operating segments are measured from revenue to EBITDA, as this represents the significant part of the operation of the segments. The balance sheet is measured for legal entities only.
Business Lines Revenue Split H1 2021
Columbus Interim Report H1 2021
Notes
Note 2 – Segment data (continued)
| DKK '000 | Sweden | Denmark | Norway | UK | US | Russia | Other* | Total |
|---|---|---|---|---|---|---|---|---|
| Q2 2021 | ||||||||
| Sale of services | 142,612 | 63,774 | 63,541 | 35,053 | 30,172 | 13,218 | 63 | 348,433 |
| Sale of products | 9,350 | 20,916 | 8,096 | 7,765 | 30,062 | 1,728 | 0 | 77,917 |
| Total net revenue | 151,962 | 84,690 | 71,637 | 42,818 | 60,234 | 14,946 | 63 | 426,350 |
| Gross profit | 130,595 | 74,207 | 45,938 | 42,054 | 35,278 | 13,079 | -1,414 | 339,737 |
| EBITDA | 10,365 | 3,396 | 9,966 | 3,757 | 2,077 | 1,417 | 350 | 31,328 |
| Operating profit (EBIT) | 18,517 | |||||||
| Profit before tax | 13,443 | |||||||
| Profit after tax | 9,466 | |||||||
| Average number of employees | 524 | 307 | 159 | 212 | 157 | 179 | 95 | 1,632 |
| Q2 2020 | ||||||||
| Sale of services | 138,572 | 66,300 | 39,597 | 31,455 | 33,742 | 14,110 | 44 | 323,820 |
| Sale of products | 8,184 | 18,022 | 7,117 | 7,374 | 34,515 | 2,715 | 0 | 77,927 |
| Total net revenue | 146,756 | 84,322 | 46,714 | 38,829 | 68,257 | 16,825 | 44 | 401,747 |
| Gross profit | 116,364 | 70,875 | 34,412 | 34,804 | 39,886 | 14,479 | -989 | 309,831 |
| EBITDA | 2,352 | 12,041 | 110 | 5,021 | 2,320 | 1,924 | 4,283 | 28,051 |
| Operating profit (EBIT) | 15,022 | |||||||
| Profit before tax | 11,810 | |||||||
| Profit after tax | 10,483 | |||||||
| Average number of employees | 623 | 342 | 157 | 190 | 161 | 188 | 68 | 1,729 |
*Other consist of India, Poland, Czech and other shareholder costs
Columbus Interim Report H1 2021
Notes
Note 2 – Segment data (continued)
| DKK '000 | Sweden | Denmark | Norway | UK | US | Russia | Other* | Total |
|---|---|---|---|---|---|---|---|---|
| H1 2021 | ||||||||
| Sale of services | 286,240 | 127,330 | 125,474 | 73,151 | 60,469 | 23,831 | 1,179 | 697,674 |
| Sale of products | 17,217 | 38,019 | 14,075 | 17,747 | 58,642 | 3,597 | 0 | 149,297 |
| Total net revenue | 303,457 | 165,349 | 139,549 | 90,898 | 119,111 | 27,428 | 1,179 | 846,971 |
| Gross profit | 265,714 | 149,230 | 90,195 | 87,434 | 70,844 | 23,441 | -3,101 | 683,757 |
| EBITDA | 32,785 | 10,473 | 17,685 | 11,672 | 4,045 | 1,495 | 8,313 | 86,468 |
| Operating profit (EBIT) | 60,526 | |||||||
| Profit before tax | 61,106 | |||||||
| Profit after tax | 54,559 | |||||||
| Average number of employees | 540 | 314 | 159 | 214 | 162 | 174 | 85 | 1,648 |
| H1 2020 | ||||||||
| Sale of services | 292,867 | 131,742 | 93,253 | 74,897 | 71,869 | 28,308 | 284 | 693,220 |
| Sale of products | 17,773 | 35,802 | 21,246 | 16,339 | 67,061 | 7,198 | 0 | 165,419 |
| Total net revenue | 310,640 | 167,544 | 114,499 | 91,236 | 138,930 | 35,506 | 284 | 858,639 |
| Gross profit | 250,099 | 141,924 | 80,817 | 79,814 | 83,912 | 29,296 | 2,431 | 668,293 |
| EBITDA | 20,506 | 20,505 | 5,450 | 10,554 | 2,107 | 2,922 | 5,329 | 67,373 |
| Operating profit (EBIT) | 40,295 | |||||||
| Profit before tax | 35,253 | |||||||
| Profit after tax | 31,060 | |||||||
| Average number of employees | 641 | 341 | 194 | 221 | 163 | 205 | 60 | 1,825 |
*Other consist of India, Poland, Czech and other shareholder costs
Columbus Interim Report H1 2021
Notes
Note 2 – Segment data (continued)
| DKK '000 | Sweden | Denmark | Norway | UK | US | Russia | Other* | Total |
|---|---|---|---|---|---|---|---|---|
| 2020 | ||||||||
| Sale of services | 527,582 | 247,746 | 151,567 | 143,747 | 136,414 | 54,089 | 310 | 1,261,455 |
| Sale of products | 36,711 | 83,452 | 35,868 | 28,882 | 116,777 | 15,187 | 0 | 316,877 |
| Total net revenue | 564,293 | 331,198 | 187,435 | 172,629 | 253,191 | 69,276 | 310 | 1,578,332 |
| Gross profit | 463,723 | 281,863 | 133,581 | 154,537 | 157,119 | 55,774 | -1,806 | 1,244,791 |
| EBITDA | 41,562 | 45,442 | -17,851 | 22,429 | 7,735 | 5,583 | 29,326 | 134,226 |
| Operating profit (EBIT) | 80,995 | |||||||
| Profit before tax | 64,143 | |||||||
| Profit after tax | 53,734 | |||||||
| Average number of employees | 590 | 338 | 155 | 213 | 167 | 190 | 54 | 1,707 |
*Other consist of India, Poland, Czech and other shareholder costs
| Legal entities | Net revenue from external customers | Non-current assets | ||||||
|---|---|---|---|---|---|---|---|---|
| DKK '000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
| Sweden | 158,727 | 155,962 | 318,207 | 332,687 | 595,297 | 488,260 | 478,261 | 498,248 |
| Denmark | 77,925 | 79,954 | 150,597 | 158,869 | 312,014 | 171,189 | 149,787 | 156,263 |
| Norway | 71,637 | 41,876 | 139,549 | 101,127 | 175,789 | 73,243 | 71,682 | 72,159 |
| United Kingdom | 42,818 | 38,829 | 90,898 | 91,236 | 172,629 | 50,974 | 48,479 | 49,108 |
| USA | 60,235 | 68,244 | 119,111 | 138,929 | 253,100 | 143,461 | 160,448 | 142,368 |
| Russia | 14,945 | 16,825 | 27,428 | 35,507 | 69,193 | 35,371 | 36,890 | 34,894 |
| Rest of the world | 63 | 57 | 1,181 | 284 | 310 | 12,523 | 219,448 | 34,400 |
| Total | 426,350 | 401,747 | 846,971 | 858,639 | 1,578,332 | 975,021 | 1,164,995 | 987,440 |
*The non-current assets for the rest of the world segment are higher as of 31 March 2020 compared to 31 December 2020 and 31 March 2021, due to To-Increase was not held for sale at this point. To-Increase amounted to DKK 183,297k as of 31 March 2020.
Revenue and non-current assets distributed in legal entities
The Group's revenue from external customers and non-current assets distribution in geographical areas are specified below. Revenue is distributed according to the country of the entity from where invoicing has taken place, and the non-current assets are distributed according to location and legal relation.
In order to be able to estimate the results of the segments and allocate resources between these, the Board of Directors also monitors the tangible, intangible and financial assets related to each segment.
Columbus Interim Report H1 2021
Notes
Note 3 – Staff expenses and remuneration
| DKK '000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
|---|---|---|---|---|---|
| Staff expenses | |||||
| Salary and wages | 223,545 | 199,011 | 438,984 | 419,828 | 828,236 |
| Other social security costs | 34,407 | 37,343 | 70,619 | 74,603 | 144,610 |
| Other staff expenses | 18,700 | 15,773 | 33,857 | 29,845 | 38,126 |
| Staff costs before share-based payment | 276,652 | 252,127 | 543,460 | 524,276 | 1,010,972 |
| Share-based payment | 302 | 1,216 | 604 | 2,433 | 4,479 |
| Staff expenses | 276,954 | 253,343 | 544,064 | 526,709 | 1,015,451 |
| Average number of employees | 1,632 | 1,729 | 1,648 | 1,825 | 1,707 |
Note 4 – Depreciation, amortization and impairment
| DKK '000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
|---|---|---|---|---|---|
| Depreciation | 8,985 | 9,031 | 18,219 | 19,013 | 37,433 |
| Amortization | 3,826 | 3,998 | 7,723 | 8,065 | 15,798 |
| Total depreciation, amortization and impairment | 12,811 | 13,029 | 25,942 | 27,078 | 53,231 |
Columbus Interim Report H1 2021
Notes
Note 5 – Trade receivables
| DKK '000 | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
|---|---|---|---|
| Receivables (gross) at 1 Jan | 241,749 | 322,535 | 322,535 |
| Change in receivables during the period | 13,116 | -57,071 | -80,786 |
| Receivables (gross) end of period | 254,865 | 265,464 | 241,749 |
| Provisions for bad debt at 1 Jan | 19,178 | 15,304 | 15,304 |
| Change in provisions for bad debt during the period | -3,916 | 3,464 | 3,799 |
| Loss realized during the period | -19 | 270 | 75 |
| Provisions for bad debt end of period | 15,243 | 19,038 | 19,178 |
| Carrying amount end of period | 239,622 | 246,426 | 222,571 |
Provisions for bad debt are made based on the lifetime expected credit losses in line with the Group's accounting policies.
| DKK '000 | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
|---|---|---|---|
| Age of receivables (gross): | |||
| Not due | 145,797 | 188,165 | 167,236 |
| 0-30 days | 54,484 | 36,577 | 48,834 |
| 30-60 days | 32,072 | 8,336 | 9,827 |
| 61-90 days | 6,496 | 8,955 | 2,771 |
| 91-180 days | 5,309 | 10,572 | 4,508 |
| 181-270 days | 2,067 | 6,829 | 954 |
| 270-360 days | 1,493 | 4,318 | 1,874 |
| Above 360 days | 7,147 | 1,712 | 5,745 |
| Total | 254,865 | 265,464 | 241,749 |
| DKK '000 | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
| --- | --- | --- | --- |
| Age of impairment: | |||
| Not due | 17 | 359 | 2,599 |
| 0-30 days | 272 | 183 | 1,044 |
| 30-60 days | 802 | 208 | 446 |
| 61-90 days | 487 | 672 | 2,008 |
| 91-180 days | 2,958 | 4,757 | 4,508 |
| 181-270 days | 2,067 | 6,829 | 954 |
| 271-360 days | 1,493 | 4,318 | 1,874 |
| Over 360 days | 7,147 | 1,712 | 5,745 |
| Total | 15,243 | 19,038 | 19,178 |
| DKK '000 | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
| --- | --- | --- | --- |
| Provision matrix: | |||
| Not due | 0.0% | 0.2% | 1.6% |
| 0-30 days | 0.5% | 0.5% | 2.1% |
| 30-60 days | 2.5% | 2.5% | 4.5% |
| 61-90 days | 7.5% | 7.5% | 72.5% |
| 91-180 days | 55.7% | 45.0% | 100.0% |
| 181-270 days | 100.0% | 100.0% | 100.0% |
| 271-360 days | 100.0% | 100.0% | 100.0% |
| Over 360 days | 100.0% | 100.0% | 100.0% |
Columbus Interim Report H1 2021
Notes
Note 6 – Contract assets and contract liabilities
| DKK '000 | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
|---|---|---|---|
| Balance at 1 Jan | -4,874 | 10,877 | 10,877 |
| Changes contract assets during the period | -16,754 | 4,351 | -65,331 |
| Changes on account billing and prepayments during the period | 16,934 | 281 | 47,526 |
| Reclassified to assets held for sale | 0 | 0 | 2,054 |
| Balance at end of period | -4,694 | 15,509 | -4,874 |
| Work in progress | 29,175 | 136,351 | 45,929 |
| On account billing and prepayments | -33,869 | -120,842 | -50,803 |
| Balance at end of period | -4,694 | 15,509 | -4,874 |
| The net value is included in the balance as follows: | |||
| Contract assets | 7,566 | 34,814 | 14,733 |
| Contract liabilities | -12,260 | -19,305 | -19,607 |
| Balance at end of period | -4,694 | 15,509 | -4,874 |
The Group's contract assets are subject to significant judgements in relation to the classification of the contract and in terms of how the contract is handled and recognized in the financial statements. When determining the appropriate recognition of the contract, the Group accounting policies are applied.
Columbus Interim Report H1 2021
Notes
Note 7 – Business combinations
Acquisition of companies in 2021
There have been no acquisitions during H1 2021.
Acquisition of companies in 2020
The Group has per 6 January 2020 acquired Advania Business Solutions. The acquisition was an asset purchase.
| Name | Primary activity | Date of control gained | Acquired ownership | Acquired voting rights | Total consideration DKK '000 |
|---|---|---|---|---|---|
| Advania Business Solutions | Distribution and implementation of standardised business solutions. | 6 January | Activity | Activity | 36,357 |
| Total | 36,357 |
With the acquisition of Advania Business Solutions, Columbus creates a Microsoft Dynamics cloud Powerhouse in Norway. After recognition of identifiable assets, liabilities and contingent liabilities at fair value, goodwill in relation to the acquisition was assessed to DKK 16.8m. Customer base is recognised separate from goodwill and goodwill therefore relates to knowhow.
Estimated tax deductibility of goodwill for Advania Business Solutions is DKK 16.8m.
Advania Business Solutions has since the acquisition 6 January 2020 had a revenue of DKK 44m and a result after tax of DKK 11m.
| DKK '000 | H1 2021 | 2020 |
|---|---|---|
| Fair value assessment of trade receivables | ||
| Trade receivables, gross amount | 0 | 15,103 |
| Trade receivables, not expected to be collected | 0 | -277 |
| Trade receivables, fair value | 0 | 14,826 |
Opening balances
| DKK '000 | H1 2021 | 2020 |
|---|---|---|
| Tangible fixed assets | 0 | 13 |
| Other intangible assets | 0 | 10,800 |
| Other receivables | 0 | 85 |
| Total non-current assets | 0 | 10,898 |
| Trade receivables | 0 | 14,826 |
| Work in progress | 0 | 191 |
| Prepayments | 0 | 5,315 |
| Total current assets | 0 | 20,332 |
| Corporation tax and deferred tax | 0 | -2,187 |
| Deferred income | 0 | -3,736 |
| Accruals | 0 | -398 |
| Other debt | 0 | -5,404 |
| Total current debt | 0 | -11,725 |
| Net assets acquired | 0 | 19,505 |
| Goodwill | 0 | 16,852 |
| Total consideration | 0 | 36,357 |
| Net working capital not paid | 0 | -987 |
| Cash consideration on acquisition date | 0 | 35,370 |
| Contingent consideration payments* | 74,152 | 39,777 |
| Net cash flows on acquisitions | 74,152 | 75,147 |
- Contingent consideration payments in 2020 relate to the acquisitions of iStone AB, which were paid in Q2 and Q4 2020. (DKK 38,645k.), BMI (DKK 1,132k). Contingent consideration payments in 2021 relate to the acquisitions of iStone AB, which were paid in Q2 2021. (DKK 74,152). Since the acquisition date of Advania Business Solution the other intangible assets have been revalued with DKK 3.8m and this has affected the goodwill accordingly.
Columbus Interim Report H1 2021
Notes
Note 8 – Discontinued operations
| DKK '000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
|---|---|---|---|---|---|
| Net revenue | 0 | 57,307 | 29,296 | 110,524 | 208,487 |
| External project costs | 0 | -1,672 | -2,286 | -5,225 | -8,395 |
| Gross profit | 0 | 55,635 | 27,010 | 105,299 | 200,092 |
| Staff expenses and remuneration | 0 | -31,253 | -19,510 | -60,428 | -113,992 |
| Other external costs | 0 | -2,128 | -3,707 | -8,665 | -16,832 |
| Other operating income | 0 | 2 | 15 | 16 | 314 |
| EBITDA | 0 | 22,256 | 3,808 | 36,222 | 69,582 |
| Depreciation, amortization and impairment | 0 | -9,584 | -561 | -19,057 | -29,912 |
| Operating profit (EBIT) | 0 | 12,672 | 3,247 | 17,165 | 39,670 |
| Financial income | 0 | 8 | 195 | 409 | 49 |
| Financial expenses | 0 | -471 | -129 | -469 | -1,621 |
| Profit before tax from discontinuing operations | 0 | 12,209 | 3,313 | 17,105 | 38,098 |
| Corporate tax | 0 | -2,844 | -20 | -5,576 | -13,768 |
| Profit after tax from discontinuing operations | 0 | 9,364 | 3,293 | 11,529 | 24,330 |
| Total gain (loss) on divestment of discontinued operations | -132 | 0 | 717,161 | 0 | -29,502 |
| Profit from discontinued operations | -132 | 9,364 | 720,454 | 11,529 | -5,172 |
| DKK '000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
| --- | --- | --- | --- | --- | --- |
| Earnings per share from discontinued operations of DKK 1.25 (EPS) | 0.00 | 0.08 | 5.67 | 0.09 | -0.04 |
| Earnings per share from discontinued operations of DKK 1.25, diluted (EPS-D) | 0.00 | 0.08 | 5.64 | 0.09 | -0.04 |
| DKK '000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
| --- | --- | --- | --- | --- | --- |
| Gain on disposal of subsidiaries | 0 | 0 | 721,712 | 0 | 0 |
| Transaction costs related to disposal | -132 | 0 | -4,551 | 0 | -29,502 |
| Total gain (loss) on divestment of discontinued operations | -132 | 0 | 717,161 | 0 | -29,502 |
| DKK '000 | Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | 2020 |
| --- | --- | --- | --- | --- | --- |
| Cash flow from operating activities | 4,464 | 28,352 | 4,623 | 42,469 | 75,136 |
| Cash flow from investing activities | -4,464 | -11,884 | -7,479 | -20,007 | -37,256 |
| Cash flow from financing activities | 11,950 | -1,915 | -18,209 | -3,907 | -7,922 |
| Cash flow from discontinued operations | 11,950 | 14,553 | -21,065 | 18,555 | 29,958 |
Discontinued operations in 2021
During 2020 Columbus initiated the process of a sale of our software company To-Increase, which represented our entire ISV segment. The sale was finalised in January 2021, and the business is therefore reported as discontinued operations in the profit and loss.
Further, our Danish private cloud business was sold in January 2021 and this business is consequently also classified as discontinued operations. The private cloud business was represented in our consultancy segment across all Market Units.
Finally, in March 2021 our two companies in the Baltics were sold and consequently also classified as discontinued operations. The Baltic entities were represented in our consultancy segment.
Columbus Interim Report H1 2021
Notes
Note 9 – Disposal of subsidiaries
On 26 January 2021, the Group disposed of its 100% equity interest in its subsidiary, To-Increase. The subsidiary was classified as held for sale in the 2020 consolidated financial statement.
On 26 March 2021, the Group disposed of its 100% equity interest in its subsidiary, Columbus Lithuania and 51% equity interest in its subsidiary, Columbus Estonia.
There were no disposals of subsidiaries made in 2020.
The deferred consideration was partly settled in cash by the purchaser in April 2021 (DKK 12m), and the remaining consideration will be paid in monthly instalments until 2026.
The gain on disposal is included in the profit for the year from discontinued operations, note 8.
At the date of disposal, the carrying amounts of disposed subsidiaries net assets were as follows.
| DKK '000 | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
|---|---|---|---|
| Goodwill | 97,258 | 0 | 0 |
| Customer base | 5,166 | 0 | 0 |
| Other intangible assets | 19 | 0 | 0 |
| Development projects finalized | 52,334 | 0 | 0 |
| Development projects in progress | 42,404 | 0 | 0 |
| Property, plant and equipment | 2,281 | 0 | 0 |
| Right-of-use assets | 20,712 | 0 | 0 |
| Investments in subsidiaries | 0 | 0 | 0 |
| Trade receivables | 36,753 | 0 | 0 |
| Contract assets | 7,575 | 0 | 0 |
| Corporate tax receivables | 1,052 | 0 | 0 |
| Deferred tax assets | 370 | 0 | 0 |
| Other receivables | 1,474 | 0 | 0 |
| Prepayments | 2,800 | 0 | 0 |
| Cash | 22,169 | 0 | 0 |
| Total assets | 292,367 | 0 | 0 |
| DKK '000 | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
| --- | --- | --- | --- |
| Deferred tax | 19,095 | 0 | 0 |
| Other provisions | 0 | 0 | 0 |
| Contingent consideration | 0 | 0 | 0 |
| Debt to credit institutions | 357 | 0 | 0 |
| Lease liability right-of-use assets | 20,277 | 0 | 0 |
| Contract liabilities | 3,854 | 0 | 0 |
| Trade payables | 14,829 | 0 | 0 |
| Corporate tax payables | 54 | 0 | 0 |
| Other payables | 30,221 | 0 | 0 |
| Accruals and deferred income | 30,578 | 0 | 0 |
| Total liabilities | 119,265 | 0 | 0 |
| Net assets disposed of | 173,102 | 0 | 0 |
| Cash and cash equivalents | 877,229 | 0 | 0 |
| Deferred consideration | 17,585 | 0 | 0 |
| Total consideration | 894,814 | 0 | 0 |
| Gain on disposal of subsidiaries | 721,712 | 0 | 0 |
| Net Cash inflow arising on disposal: | |||
| Consideration received in cash and cash equivalents | 865,279 | 0 | 0 |
| Less: cash and cash equivalents disposed of | -22,169 | 0 | 0 |
| Transaction costs related to disposal | -27,610 | 0 | 0 |
| Net Cash inflow arising on disposal | 815,500 | 0 | 0 |
Columbus Interim Report H1 2021
Notes
Note 10 – Assets classified as held for sale
At 30 June 2021, no parts of group were classified as held for sale.
| DKK '000 | 30 Jun 2021 | 30 Jun 2020 | 31 Dec 2020 |
|---|---|---|---|
| Goodwill | 0 | 0 | 81,683 |
| Customer base | 0 | 0 | 4,670 |
| Development projects finalized | 0 | 0 | 52,350 |
| Development projects in progress | 0 | 0 | 38,899 |
| Property, plant and equipment | 0 | 0 | 1,567 |
| Right-of-use assets | 0 | 0 | 16,086 |
| Trade receivables | 0 | 0 | 15,739 |
| Contract assets | 0 | 0 | 950 |
| Corporate tax receivables | 0 | 0 | 1,050 |
| Other receivables | 0 | 0 | 676 |
| Prepayments | 0 | 0 | 811 |
| Total assets classified as held for sale | 0 | 0 | 214,481 |
| Deferred tax | 0 | 0 | 17,181 |
| Other provisions | 0 | 0 | 4,464 |
| Lease liability right-of-use assets | 0 | 0 | 15,409 |
| Contract liabilities | 0 | 0 | 3,004 |
| Trade payables | 0 | 0 | 3,278 |
| Other payables | 0 | 0 | 13,380 |
| Accruals and deferred income | 0 | 0 | 37,175 |
| Total liabilities relating to assets classified as held for sale | 0 | 0 | 93,891 |
| Net assets | 0 | 0 | 120,590 |
Columbus Interim Report H1 2021
Notes
Key figures, ratios and Alternative Performance Measures
Key figures and ratios
Earnings per share (EPS) and diluted earnings per share (EPS-D) are calculated in accordance with IAS 33.
Other ratios are calculated in accordance with the Danish Finance Society “Recommendations & Financial Ratios”. The financial ratios stated are calculated as follows:
| EBITDA-margin | Earnings before interest, tax, depreciations and amortizations (EBITDA) |
|---|---|
| Net revenue | |
| Operating margin | Operating profit (EBIT) |
| Net revenue | |
| Return on equity | Profit after tax and excl. minority interests |
| Average equity excl. minority interests | |
| Return on invested capital (ROIC) | EBITA |
| Average invested capital including goodwill | |
| Equity ratio | Equity excl. minority interests |
| Total equity and liabilities | |
| Earnings per share (EPS) | Profit after tax and excl. minority interests |
| Average number of shares | |
| Book value per share (BVPS) | Equity excl. minority interests end of year x 100 |
| Number of shares end of year | |
| Cash flow per share | Cash flow from operations |
| Average number of diluted shares | |
| Adjustment factor (f) | Theoretical rate |
| Listed price of stock the day before the subscription and/or stock right cease | |
| Recurring Revenue % of total revenue | Recurring revenue |
| Net revenue |
Alternative Performance Measures
Recurring Revenue
Recurring Revenue includes Software maintenance, Cloud revenue and Columbus Care agreements.
Recurring revenue does not necessarily mean a binding contractual agreement. However recurring revenue is defined as revenue with a high degree of certainty for renewal >95%.
The purpose of defining Recurring Revenue is to express a level of predictability in the revenue. The higher degree of Recurring Revenue in pct. of total revenue – the more predictable is the Columbus revenue going forward.
EBITDA before Share Based Payment
EBITDA before Share Based Payment is Earnings Before Interest Taxes Depreciation, Amortization and the expense (black Scholes value) from Share Based Payment.
The purpose of excluding Share Based Payment is that this is a non-cash consideration and therefore different characteristics than cash-based considerations. Another purpose is that the IFRS rules for expending Share Based payments is uneven through the 3-year maturing period Columbus normally exercise.
EBITDA before Share Based Payment will therefore express a more comparable year over year development.
Normalized EBITDA
Normalized EBITDA represents the business excluding the impact of one-off items, such as acquisitions, divestments etc. Details on the normalization is provided on page 5.
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