Quarterly Report • Jul 15, 2022
Quarterly Report
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| 2022 | 2021 | 2021* | |
|---|---|---|---|
| Net sales of SEK | 120 m | (143 m) | (102 m) |
| Recurring revenues of SEK | 78 m | (68 m) | (68 m) |
| which corresponds to % of net sales | 66 % | (48 %) | (67 %) |
| EBITDA SEK | 15 m | (58 m) | (18 m) |
| EBITDA margin | 12 % | (40 %) | (17 %) |
| EBIT | 0 m | (30 m) | (4 m) |
| EBIT margin | 0 % | (21 %) | (4%) |
| Net profit SEK | -1 m | (23 m) | (3 m) |
| Net profit margin | -1 % | (16 %) | (3 %) |
| EPS before dilution SEK | -0.02 | (0.43) | (0,04) |
| Cash flow from operating activities SEK | -5 m | (11 m) | |
| ACV SEK | 10 m | (10 m) | |
| ARR SEK | 333 m | (280 m) |
| ACV | SEK 10 m (10 m) |
|---|---|
| ARR | SEK 333 m (280 m) |
| 2022 | 2021 | 2021* | |
|---|---|---|---|
| Net sales of SEK | 240 m | (245 m) | (204 m) |
| Recurring revenues of SEK | 155 m | (135 m) | (135 m) |
| which corresponds to % of net sales | 65 % | (55 %) | (66 %) |
| EBITDA SEK | 32 m | (77 m) | (37 m) |
| EBITDA margin | 13 % | (32 %) | (18 %) |
| EBIT | 4 m | (35 m) | (10 m) |
| EBIT margin | 2 % | (15 %) | (5 %) |
| Net profit SEK | 0 m | (27 m) | (7 m) |
| Net profit margin | 0 % | (11 %) | (3 %) |
| EPS before dilution SEK | 0.01 | (0.51) | (0,12) |
| Cash flow from operating activities SEK | 8 m | (17 m) | |
| ACV SEK | 19 m | (16 m) | |
| ARR SEK | 333 m | (280 m) |
"We have made significant progress in our transition to a full service provide for the public sector"
Christian Sundin, CEO Formpipe
| Apr-Jun | Jan-Jun Full year |
|||||
|---|---|---|---|---|---|---|
| (SEK Million) | 2022 | 2021 | 2021* | 2022 | 2021 | 2021* R12 |
| Net sales | 119,6 | 143,0 | 102,1 | 239,9 | 244,5 | 203,6 |
| whereof recurring revenue | 78,4 | 68,2 | 68,2 | 154,9 | 134,6 | 134,6 |
| EBITDA | 14,7 | 57,8 | 17,6 | 31,7 | 77,4 | 37,1 |
| Margin, % | 12,3% | 40,4% | 17,2% | 13,2% | 31,6% | 18,2% |
| EBIT | 0,4 | 29,7 | 3,9 | 3,9 | 35,4 | 9,6 |
| Margin, % | 0,3% | 20,7% | 3,8% | 1,6% | 14,5% | 4,7% |
*Comparative numbers excluding the one-off agreement with Danish Landbrugsstyrelsen in June, 2021.
This is a translation of the original Swedish version. In the event of any discrepancies between the two versions, the original Swedish version shall take precedence. The information was submitted for publication, at 08.45 CET, 15 June 2022
Current operations show good growth in all business areas. Last year, we completed a one-off transaction with Landbrugsstyrelsen, the Danish Board of Agriculture (order value SEK 41 million and a positive impact on operating profit of SEK 26 million). Excluding this, growth in the second quarter is 16%. ACV amounts to SEK 10 million, and ARR is SEK 333 million (SEK 280 million), an increase of 19% compared with the end of the second quarter 2021.
In our transision of the business model to a full service provider in the public sector, we made significant progress during the quarter. We see a stable trend with increasing delivery revenues and higher capacity utilisation of our consultants. During the quarter, the City of Malmö decided to extend and expand its collaboration with us. The agreement runs over 10 years and is estimated by the City of Malmö to have a business value of just over SEK 50 million. We are making a strong sales quarter in Sweden, and are pleased that the majority of these sales are SaaS.
In the Private business area, we are continuing according to our growth plan and, despite tough competition in the labor market, have succeeded well in recruitment. Among other things, we have expanded our sales capacity in the US and in Singapore, to further strengthen our close partnership with Temenos. This puts a strain on the profit short term, but provides good conditions for continued growth of the SaaS business within both Microsoft Dynamics and Temenos.
Continuously evaluating how Formpipe best create value for its shareholders has a high priority for both the Board and management. In light of this, during the quarter we carried out a thorough review of the conditions the business areas within Public and Private, respectively, have for further development, and in what structure this should take place.
Our business rests on two pillars, with strong offerings to players in both the public and private sectors, which are developed and run with strategies that are well adapted to the strengths of each business area. At the same time, they form part of a
common corporate culture with common core values and we achieve cost efficiency through common support functions.
Our current analysis has provided the Board and management with valuable insight and confidence in continuing to develop Formpipe's operations in line with current strategies and in accordance with existing financial targets. Public and Private today constitute a strong and stable combination that together create a balanced, profitable growth company. The Private business area operates in a market with good conditions for continued strong growth, while Public is a player that will continue to deliver stable growth combined with good profitability. The growth strategies for both Public and Private are based on a combination of organic growth and complementary acquisitions.
Christian Sundin, CEO Formpipe
Net sales for the period decreased by 16 % compared to previous year and totalled to SEK 119.6 million (143,0 million). Software revenue decreased by 30 % from the previous year and totalled to SEK 80.8 million (116.0 million).
Compared to previous year, adjusted for the effects of the transaction with Landbruggsstyrelsen, revenue increased by 17% to SEK 119,6 million (102.1 million). Software revenue increased by 8% to SEK 80.8 million (75.1 million).
Total recurring revenue for the period increased by 15 % from the previous year and totalled to SEK 78.4 million (68.2 million), which is equivalent to 66 % of net sales (48 %). Exchange rate effects have affected net sales favourably by SEK 2.5 million in comparison with the previous year.
Compared to previous year, adjusted for the effects of the transaction with Landbruggsstyrelsen, revenue increased by 18% to SEK 239,9 million (203.6 million). Software revenue increased by 9% to SEK 161.0 million (147.8 million).
Total recurring revenue for the period increased by 15 % from the previous year and totalled to SEK 154.9 million (134.6 million), which is equivalent to 65 % of net sales (55 %). Exchange rate effects have affected net sales favourably by SEK 7.0 million in comparison with the previous year.
Net sales for the period decreased by 2 % compared to previous year and totalled to SEK 239.9 million (244.5 million). Software revenue decreased by 4 % from the previous year and totalled to SEK 320.0 million (333.9 million).
The operating costs for the period totalled to SEK 119.2 million (113.3 million). Personnel costs totalled to SEK 71.5 million (64.6 million). Selling expenses totalled to SEK 15.8 million (11.6 million). Other costs totalled to SEK 30.7 million (22.5 million). Exchange rate effects have increased expenses by SEK 1.7 million in comparison with the previous year.
The operating costs for the period totalled to SEK 236.0 million (209.1 million). Personnel costs totalled to SEK 143.7 million (127.8 million). Selling expenses totalled to SEK 31.8 million (23.7 million). Other costs totalled to SEK 57.7 million (42.2 million). Exchange rate effects have increased expenses by SEK 6.0 million in comparison with the previous year.
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 14.7 million (57.8 million) with an EBITDA margin of 12.3 % (40.4 %). Operating profit (EBIT) totalled to SEK 0.4 million (29.7 million) with an operating margin of 0.3 % (20.7 %). Net profit totalled
to SEK -0.8 million (22.8 million). Exchange rate effects have affected EBITDA favourably by SEK 0.8 million in comparison with the previous year.
Compared to previous year, adjusted for the effects of the transaction with Landbruggsstyrelsen, EBITDA totalled SEK 14.7 million (17.6 million), with a margin of 12.3 % (17.2 %). Operating profit totalled to SEK 0.4 million (3.9 million) with an operation margin of 0.3 % /3.8 %). Net profit totalled to SEK -0.8 million (2.7 million).
Operating profit before depreciation and amortization and items affecting comparability (EBITDA) totalled to SEK 31.7 million (77.4 million) with an EBITDA margin of 13.2 % (31.6 %). Operating profit (EBIT) totalled to SEK 3.9 million (35.4 million) with an operating margin of 1.6 % (14.5 %). Net profit totalled to SEK 0.3 million (27.1 million). Exchange rate effects have affected EBITDA favourably by SEK 1.1 million in comparison with the previous year.
Compared to previous year, adjusted for the effects of the transaction with Landbruggsstyrelsen, EBITDA totalled SEK 31.7 million (37.1 million), with a margin of 13.2 % (18.2 %). Operating profit totalled to SEK 3.9 million (9.6 million) with an operation margin of 1.6 % (4.7 %). Net profit totalled to SEK 0.3 million (7.0 million).
Cash and cash equivalents at the end of the period amounted to SEK 0.0 million (2.0 million). The company had interest-bearing debt at the end of the period totalling to SEK 68.4 million (51.4 million), whereof SEK 11.4 million (17.4 million) refers to lease debts according to IFRS 16. The company's total bank overdraft limit amounts to SEK 50.0 million, at the end of the period it was utilized with SEK 19.5 million (- million).
The company's net debt position thereby totalled to SEK 68.4 million (51.5 million), which corresponds to a net debt position of SEK 57.0 million (34.0 million) excluding IFRS 16-related debt.
By the end of the period the company's deferred tax assets attributable to accumulated losses amounted to SEK 5.7 million (SEK 7.7 million).
Equity at the end of the period amounted to SEK 420.2 million (394.9 million), which was equivalent to SEK 7.75 (7.35) per outstanding share at the end of the period. Changes in the value of the Swedish krona compared to other currencies have changed the value of the group's net assets in foreign currencies by SEK 13.3 million (3.6 million) from the end of the year.
The equity ratio at the end of the period was 57 % (56 %).
Cash flow from operating activities for the period January - June totalled to SEK 7.7 million (17.1 million).
During the period January – June a new loan of SEK 40.0 million was raised as payment for the acquisition of subsidiaries.
During the period January – June the company amortized SEK 4.0 million (10.2 million). Whereof SEK 1.2 million (3.7 million) relates to leasing debts.
The existing bank overdraft facility totalling to SEK 50.0 million was utilized with 19.5 million at the end of the period (- million). Leasing related liabilities amounted to SEK 11.4 million (17.4 million) at the end of the period. The company's interest-bearing debt at the end of the period was thereby SEK 68.4 million (51.4 million).
During the period, dividends were paid to the company's shareholders amounting to SEK 37.8 million (- million, paid in Q3 2021).
As an outcome from the exercise of the personnel warrant program 2019/2022, 252,800 new shares were issued and payments amounting to SEK 6.5 million (4.7 million) has been added to the Company. At the same time the Company repurchased 226,200 warrants to a value of SEK 2.2 million (4.1 million).
During the period, a new warrant program (2022/2025) has been issued to the company's employees, amounting to 93,800 warrants, which provided the company with payments of SEK 0.3 million (1.3 million).
Data and information become more and more important for the financial development: it is the foundation for many new products and services, which leads to productivity and resource efficiency gains in all sectors of the economy. Being able to take advantage of the possibilities of digitalization has become one of the most important issues of our time. The benefits of being able to collect, process and present data are extensive.
Formpipe's products are used to create, store, distribute, automate, relocate, archive and manage information, data and metadata regarding e.g. scanned documents, e-mail, reports, records, business documents or information from other source systems. The goal is to be able to refine and analyze content from one or more sources, to thereby provide the right insights by the right people receiving relevant information when they need it. It is in the Content Services (previously Enterprise Content Management) market that Formpipe has grown to become a market leader in the public sector and a strong challenger in the private sector where we digitalize and streamline customer communication in sectors such as retail, finance and manufacturing.
The growth in the market is fuelled in large part by the organizational and corporate-wide need to streamline operations and meet legal requirements and regulations. To be able to get the value out of the collective amount of information at companies and organizations, applications and services are needed – in order to securely – collaborate, search, analyze, process and distribute data and content. Growth drivers tend to gain strength as the amount of data and information increases.
Gartner's forecast for the global market is an average annual growth (CAGR) of 10 percent in 2020-2024. The Content Services market is estimated to be USD1 11 billion in system revenue.
An important part of the change of the Content Services market is also that the development is moving increasingly towards cloud-based solutions, where the customers pay for what is used and where costs for development, operations, maintenance, upgrade and support are included in the running agreement. The transition to SaaS is taking place very quickly now and Gartner estimates that the SaaS revenues will reach up to 60 per cent of the total sales of software in 20242 .
This development is well in line with Formpipe's reality where growing numbers of the Company's customers choose to shift to Formpipe's cloud services for the standard products and with the Company's development of service modules that can process information both from Formpipe's existing systems and other systems.
In the private sector, the business revolves around the product Lasernet. Through a certified partner network, Formpipe addresses the global market for ERP and banking systems. The most common purchase of Lasernet and Formpipe's complementary offering Autoform DM takes place when implementing, or upgrading to, Microsoft Dynamics 365 in industries such as manufacturing, retail and utilities and Temenos Transact and Infinity in banking and finance. The partner network thus primarily consists of implementation partners of these systems and constitutes a sales and delivery channel for Formpipe's offering.
The cloud-based ERP system Microsoft Dynamics 365 grew by 45 percent in the second quarter of Microsoft's fiscal year 2022. Temenos grew its SaaS business by 30 percent in the third quarter of 2021 with the largest ACV contribution coming from Europe and the United States.
The growth of Formpipe's business in the private sector is based on being included in more and more of Microsoft's and Temenos' business and offering Lasernet and Autoform DM as SaaS. In the Dynamics market, this is done via a globally certified partner network and with Temenos through a strengthened partner relationship.
1 Enterprise Application Software Forecast Q420, Gartner, Inc. 2020 2 Market Trends: Cloud Shift — 2020 Through 2024, Gartner, Inc. 2020
Formpipe's strategy in the public sector is based on the long-term goal of becoming the preferred provider of digital government in the EU.
Hundreds of authorities, municipalities, universities and state- and municipally owned companies today build their public administration around Formpipe's products. Based on Formpipe's market share for its platforms in Denmark and Sweden, the business is growing mainly through additional sales of add-ons to these, which are primarily co-created in customer projects. Customers' needs revolve around the requirements for a more efficient, innovative and data-driven business.
The focus for these add-ons is on business processes linked to record keeping, such as archiveproof and secure digital signatures or an application for collaboration on meeting documents for municipal politicians.
In the Swedish public sector, Formpipe has a stable customer base in municipalities, regions and authorities.
In the Swedish public sector, up to SEK 45 billion is invested in IT every year. The Swedish government's ambition is for state authorities, municipalities and regions to be the best in the world at using the opportunities of digitalisation to create an efficient public sector - a simpler everyday life for private individuals and companies, more jobs and increased welfare. Digital solutions and automation are an important component for meeting the growing welfare needs and at the same time increasing the service to the citizens.
Formpipe is also a leading supplier of digital government software in the Danish public sector. Digital solutions and automation create opportunities to meet the growing welfare needs and at the same time increase the service to the citizens.
The employers' organization Dansk Industri believes that a modernization and digitalisation of the public sector can free up DKK 20 billion by 2025. Money that can then be returned to the public sector and contribute to increasing the level of service.
Formpipe acquires Alkemit AB, a successful partner for Formpipe's products within the Swedish public sector with SEK 25 million turnover and 19 competent employees. Alkemit has successfully built a delivery organisation around Formpipe's products, offering solution management, development projects and support. Alkemit has verified processes in place that swiftly have increased their business with existing as well as new clients. With the deal, the company increases its competence and capacity to grow its footprint at customers – a step in the long-term strategy to become a 'one-stop-shop vendor' of digital government.
Formpipe acquires 100% of the shares in Alkemit AB. The purchase price amounts to SEK 33 million (Enterprise Value) that is paid in connection with the takeover effective per today and is financed through a combination of own cash (SEK 23 million) and newly issued shares (SEK 10 million to key individuals in the upcoming business). Alkemit's turnover amounted to SEK 25 million with SEK 4 million in operating profit.
In connection with the acquisition of Alkemit AB, 238,968 new shares were issued as partial payment. The number of shares and votes in the Company has therefore increased with 238,968 and share capital has increased with SEK 23,896.80. After the issue of new shares, the total number of outstanding shares and votes amounts to 53,965,025 and the share capital amounts to SEK 5,396,502.50.
Over the past 15 years, Formpipe has continued to develop and grow its partnership with Temenos and can proudly state that Formpipe's software will be among the first partner solutions available on Temenos' cloud platform, Temenos Banking Cloud.
Almost 100 financial institutions are currently using Formpipe's pre-integrated solutions, Lasernet and Autoform DM, both of which are available on Temenos Exchange, (Temenos' marketplace for
partner solutions). Formpipe's software provides enriched and branded customer-facing documents and archiving across all channels within the Temenos ecosystem.
Formpipe is proud to be one of Temenos' major revenue-generating solution providers and look forward to continued success together in the future.
Formpipe has signed an exclusive agreement with the City of Malmö regarding maintenance and further development of the city's case- and document management system, including associated modules. The agreement runs over 10 years and the order value amounts to a minimum of SEK 15 million in the form of a recurring fee for support and management. Including additional fees for new development and adaptations of existing systems, the order value is estimated to amount to approximately SEK 50 million according to Malmö City's estimate.
The case- and document management system Platina by Formpipe has been created and developed in Sweden for the Swedish public sector, a flexible and scalable system that is configured to be able to meet business-specific needs in the public sector.
The agreement has been subject to the usual standstill period within the framework of the rules that apply in a public procurement and enters into force immediately.
Following the exercise of the warrant program 2019/2022 new shares have been issued and the number of shares and votes in the company has increased by 252,800 and the share capital has increased by SEK 25,280.
Following this increase, the number of outstanding shares and votes in the company amounts to 54,217,825 and the share capital amounts to SEK 5,421,782.50.
The number of employees at the end of the reporting period totalled to 287 persons (271 persons).
The significant risk and uncertainty factors for the group and the parent company, which include business and financial risks, are described in the annual report for the last financial year. During the period there have been no other changes in the risk and uncertainty factors for the group and the parent company.
No related party transactions have occurred during the period.
The group's financial reports are prepared in accordance with International Financial Reporting Standards (IFRS) in the way in which they have been adopted by the European Union, the Swedish Annual Accounts Act, RFR 1 Additional Accounting Regulations for Groups issued by the Swedish Financial Reporting Board and in accordance with the regulations that the Stockholm Stock Exchange stipulates for companies listed on Nasdaq Stockholm. Preparing financial reports in accordance with IFRS requires that the company management makes accounting evaluations and estimates and makes assumptions that affect the application of the accounting policies and the reported values of assets, liabilities, income and costs. The actual result can differ from these estimates and evaluations. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The interim report covers pages 1-21 and the interim report on pages 1-9 is thus an integral part of this financial report. The most important accounting policies according to IFRS, which constitute the accounting standard for the preparation of this interim report, are stated in the company's most recently published annual report.
The financial reports of the parent company have been pre-pared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. The same accounting policies and methods
of calculation have been applied in the interim report and in the most recent annual report.
Formpipe Software AB (publ) is a Swedish software company in the field of Content Services (previously Enterprise Content Management, ECM). Several thousand customers in more than 60 countries currently entrust us and our services. Our marketleading position gives us clear competitive advantages in the development and sale of software for effective and valuable information services. The Company focuses on products for document and records management, automation of informationintensive business processes, e-archives, data quality and smart management of customer communication.
Formpipe was founded in 2004 and has offices in Sweden, Denmark, United Kingdom, USA and Germany. The Formpipe share is listed on Nasdaq Stockholm.
| October 27, 2022 | Interim report Jan-Sep |
|---|---|
| February 15, 2023 | Interim report Jan-Dec |
Can be ordered from the below contact details. All financial information is published on www.formpipe.com immediately after being made public.
Christian Sundin, Managing Director Telephone: +46 70 567 73 85, +46 8 555 290 84 E-mail: [email protected]
Formpipe Software AB The Board of Directors and the Managing Director
Formpipe Software AB (publ) Swedish company reg. no.: 556668-6605Sveavägen 168 | Box 231 31 | 104 35 Stockholm T: +46 8 555 290 60 | F: +46 8 555 290 99 [email protected] | www.formpipe.se
| Apr-Jun | Jan-Jun | ||||
|---|---|---|---|---|---|
| (SEK 000) | 2022 | 2021 | 2022 | 2021 | |
| Net Sales | 119 580 | 142 974 | 239 927 | 244 514 | |
| Sales expenses | -15 760 | -11 634 | -31 816 | -23 652 | |
| Other costs | -30 680 | -22 518 | -57 685 | -42 207 | |
| Personnel costs | -71 546 | -64 583 | -143 670 | -127 801 | |
| Capitalized work for own account | 13 085 | 13 555 | 24 966 | 26 503 | |
| Operating profit/loss before depreciation/amortization | |||||
| and non-comparative items (EBITDA) | 14 679 | 57 793 | 31 721 | 77 356 | |
| Depreciation/amortization | -14 298 | -28 135 | -27 809 | -41 966 | |
| Operating profit/loss (EBIT) | 381 | 29 659 | 3 912 | 35 390 | |
| Financial income and expenses | -374 | -468 | -682 | -818 | |
| Exchange rate differences | -962 | 580 | -367 | 736 | |
| Tax | 146 | -7 015 | -2 546 | -8 203 | |
| Net profit for the period | -809 | 22 756 | 317 | 27 106 | |
| Of which the following relates to: | |||||
| Parent company shareholders | -809 | 22 756 | 317 | 27 106 | |
| Other comprehensive income | |||||
| Translation differences | 11 317 | -9 566 | 13 313 | 3 620 | |
| Other comprehensive income for the period, net after tax | 11 317 | -9 566 | 13 313 | 3 620 | |
| Total comprehensive income for the period | 10 508 | 13 190 | 13 629 | 30 726 | |
| Of which the following relates to: | |||||
| Parent company shareholders | 10 508 | 13 190 | 13 629 | 30 726 | |
| Shareholding with no controlling influence | - | - | - | - | |
| EBITDA margin, % | 12,3% | 40,4% | 13,2% | 31,6% | |
| EBIT margin, % | 0,3% | 20,7% | 1,6% | 14,5% | |
| Profit margin, % | -0,7% | 15,9% | 0,1% | 11,1% | |
| Earnings per share attributable to the parent company's shareholders during the | |||||
| period (SEK per share) | |||||
| - before dilution | -0,01 | 0,42 | 0,01 | 0,51 | |
| - after dilution | -0,01 | 0,42 | 0,01 | 0,51 | |
| Average no. of shares before dilution, in 000 | 54 049 | 53 551 | 54 007 | 53 508 | |
| Average no. of shares after dilution, in 000 | 54 146 | 53 868 | 54 180 | 53 666 |
| 30 Jun | 31 Dec | ||
|---|---|---|---|
| (SEK 000) | 2022 | 2021 | 2021 |
| Intangible assets | 591 418 | 519 429 | 537 533 |
| Tangible assets | 18 491 | 23 433 | 19 508 |
| Financial assets | 4 491 | 5 935 | 6 827 |
| Deferred tax asset | 7 477 | 7 675 | 4 182 |
| Current assets (excl. cash equivalents) | 129 914 | 144 133 | 116 691 |
| Cash equivalents | - | 2 016 | 18 064 |
| TOTAL ASSETS | 751 792 | 702 619 | 702 805 |
| Equity | 420 248 | 394 877 | 429 605 |
| Long-term liabilities | 81 504 | 72 414 | 23 406 |
| Current liabilities | 250 039 | 235 328 | 249 760 |
| TOTAL EQUITY AND LIABILITIES | 751 792 | 702 619 | 702 771 |
| Net interest-bearing debt (-) / cash (+) | -68 403 | -51 449 | 4 347 |
| Equity attributable to the parent company's shareholders | |||||
|---|---|---|---|---|---|
| Other | Profit/loss | ||||
| Share | contributed | Other | brought | ||
| (SEK 000) | capital | capital | reserves | forward | Total |
| Balance at January 1, 2021 | 5 346 | 212 644 | 9 066 | 171 807 | 398 865 |
| Comprehensive income | - | - | - | - | - |
| Net profit for the period | - | - | - | 27 106 | 27 106 |
| Other comprehensive income items | - | - | 3 620 | - | 3 620 |
| Total comprehensive income | - | - | 3 620 | 27 106 | 30 726 |
| Transaction with owners | |||||
| Dividend | - | - | - | -35 286 | -35 286 |
| Share issue | 26 | 4 666 | - | - | 4 692 |
| Repurchase of warrants | - | -4 119 | - | - | -4 119 |
| Total transaction with owners | 26 | 547 | - | -35 286 | -34 713 |
| Balance at June 30, 2021 | 5 373 | 213 191 | 12 686 | 163 627 | 394 877 |
| Balance at January 1, 2022 | 5 373 | 214 501 | 22 808 | 186 958 | 429 640 |
| Comprehensive income | - | - | - | - | - |
| Net profit for the period | - | - | - | 317 | 317 |
| Other comprehensive income items | - | - | 13 313 | - | 13 313 |
| Total comprehensive income | - | - | 13 313 | 317 | 13 629 |
| Transaction with owners | |||||
| Dividend | - | - | - | -37 776 | -37 776 |
| Share issue | 49 | 16 578 | - | - | 16 627 |
| Repurchase of warrants | - | -2 151 | - | - | -2 151 |
| Employee warrant schemes | - | 279 | - | - | 279 |
| Total transaction with owners | 49 | 14 705 | - | -37 776 | -23 021 |
| Balance at June 30, 2022 | 5 422 | 229 207 | 36 120 | 149 499 | 420 248 |
| Apr-Jun | Jan-Jun | ||||
|---|---|---|---|---|---|
| (SEK 000) | 2022 | 2021 | 2022 | 2021 | |
| Cash flow from operating activities | |||||
| before working capital changes | 22 493 | 55 349 | 24 167 | 81 416 | |
| Cash flow from working capital changes | -27 913 | -44 563 | -16 505 | -64 274 | |
| Cash flow from operating activities | -5 420 | 10 786 | 7 662 | 17 142 | |
| Cash flow from investing activities | -14 747 | -15 707 | -60 327 | -31 213 | |
| Of which acquisition/divesture of business activities | - | - | -32 877 | - | |
| Cash flow from financing activities | -17 138 | -38 696 | 32 428 | -44 873 | |
| Of which dividend paid | -37 776 | -35 286 | -37 776 | -35 286 | |
| Cash flow for the period | -37 305 | -43 618 | -20 237 | -58 945 | |
| Change in cash and cash equivalent | |||||
| Cash and cash equivalent at the beginning of the period | 35 367 | 46 402 | 18 065 | 58 593 | |
| Translation differences | 1 938 | -769 | 2 172 | 2 368 | |
| Cash flow for the period | -37 305 | -43 618 | -20 237 | -58 945 | |
| Cash and cash equivalent at the end of the period | - | 2 016 | - | 2 016 |
| (SEK 000) | Q3 2020 | Q4 2020 | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 |
|---|---|---|---|---|---|---|---|---|
| License | 5 817 | 8 971 | 6 324 | 47 775 | 5 255 | 9 923 | 3 691 | 2 437 |
| SaaS | 13 755 | 14 571 | 14 171 | 15 458 | 17 038 | 19 427 | 20 832 | 22 192 |
| Support and maintenance | 49 552 | 52 592 | 52 214 | 52 749 | 53 332 | 53 990 | 55 685 | 56 175 |
| Software revenues | 69 123 | 76 134 | 72 709 | 115 982 | 75 625 | 83 340 | 80 208 | 80 805 |
| whereof recurring revenue | 63 307 | 67 163 | 66 385 | 68 208 | 70 369 | 73 418 | 76 517 | 78 368 |
| Deliveries | 27 260 | 27 219 | 28 832 | 26 991 | 30 805 | 38 921 | 40 139 | 38 775 |
| Net sales | 96 383 | 103 353 | 101 540 | 142 974 | 106 429 | 122 261 | 120 347 | 119 580 |
| Sales expenses | -9 718 | -10 083 | -12 018 | -11 634 | -12 064 | -15 200 | -16 056 | -15 760 |
| Other costs | -19 042 | -20 401 | -19 690 | -22 518 | -22 327 | -26 879 | -27 005 | -30 680 |
| Personnel costs | -50 192 | -58 794 | -63 218 | -64 583 | -54 945 | -65 486 | -72 124 | -71 546 |
| Capitalized development costs | 9 606 | 11 860 | 12 948 | 13 555 | 12 592 | 13 377 | 11 881 | 13 085 |
| Total operating expenses | -69 346 | -77 419 | -81 977 | -85 180 | -76 745 | -94 189 | -103 305 | -104 901 |
| EBITDA | 27 037 | 25 935 | 19 563 | 57 793 | 29 684 | 28 072 | 17 042 | 14 679 |
| % | 28,1% | 25,1% | 19,3% | 40,4% | 27,9% | 23,0% | 14,2% | 12,3% |
| Depreciation/amortization | -13 075 | -13 235 | -13 831 | -28 135 | -12 584 | -12 046 | -13 511 | -14 298 |
| EBIT | 13 962 | 12 699 | 5 732 | 29 659 | 17 100 | 16 027 | 3 531 | 381 |
| % | 14,5% | 12,3% | 5,6% | 20,7% | 16,1% | 13,1% | 2,9% | 0,3% |
The Group's segments are divided according to which customer groups they target. The segments are divided into SE Public, DK Public, Private and Other and reflect the Group's internal reporting and follow-up of Group management.
The SE Public and DK Public segments find their customers in Sweden's and Denmark's public sectors. Segment Private collects the Group's offers that are aimed at customers outside the public sector and are not bound to any particular geographic market. Segment Other includes the Group's older products that are not included in any of the other segments and the Group's overhead costs.
In the Group's follow-up on the segments, the intercompany invoicing (revenues and costs) is presented as a net because of the substantial invoicing within the segments related to royalties to IP owning entities. The line Intercompany net includes de intercompany revenues and costs netted out to reflect a more accurate view of the segments.
| Apr-Jun 2022 | Jan-Jun 2022 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | ||||||||
| (SEK 000) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group | |
| License | 500 | 813 | 1 124 | - | 2 437 | 1 513 | 884 | 3 731 | - | 6 128 | |
| SaaS | 3 648 | 1 933 | 16 612 | - | 22 192 | 7 164 | 3 766 | 32 095 | - | 43 025 | |
| Support & Maintenance | 21 284 | 15 839 | 18 088 | 964 | 56 175 | 42 201 | 31 418 | 36 290 | 1 952 | 111 860 | |
| Delivery | 11 808 | 19 395 | 7 572 | -0 | 38 775 | 21 461 | 42 270 | 15 183 | -0 | 78 914 | |
| Net sales | 37 240 | 37 981 | 43 395 | 964 | 119 580 | 72 338 | 78 338 | 87 299 | 1 952 | 239 927 | |
| Costs, external | -24 844 | -28 369 | -43 011 | -8 677 | -104 901 | -52 534 | -57 415 | -83 377 | -14 880 | -208 206 | |
| Intercompany net | 232 | -234 | 2 | - | 0 | 286 | -287 | 1 | - | -0 | |
| EBITDA | 12 628 | 9 378 | 386 | -7 713 | 14 679 | 20 091 | 20 635 | 3 923 | -12 928 | 31 721 | |
| % | 33,9% | 24,7% | 0,9% | -800,1% | 12,3% | 27,8% | 26,3% | 4,5% | -662,5% | 13,2% |
| Apr-Jun 2021 | Jan-Jun 2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | ||||||||
| (SEK 000) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group | |
| License | 813 | 3 083 | 3 022 | 40 857 | 47 775 | 4 861 | 3 083 | 5 297 | 40 857 | 54 098 | |
| SaaS | 3 193 | 1 645 | 10 620 | - | 15 458 | 6 531 | 3 162 | 19 936 | - | 29 629 | |
| Support & Maintenance | 20 185 | 14 274 | 17 235 | 1 056 | 52 749 | 39 970 | 28 771 | 34 086 | 2 137 | 104 963 | |
| Delivery | 4 106 | 16 240 | 6 645 | 0 | 26 991 | 8 282 | 33 630 | 13 910 | 0 | 55 823 | |
| Net sales | 28 297 | 35 242 | 37 521 | 41 913 | 142 974 | 59 644 | 68 647 | 73 229 | 42 994 | 244 514 | |
| Costs, external | -21 429 | -23 259 | -34 174 | -6 318 | -85 180 | -41 146 | -47 043 | -67 942 | -11 027 | -167 158 | |
| Intercompany net | 173 | -173 | -0 | - | -0 | 155 | -155 | -0 | - | -0 | |
| EBITDA | 7 041 | 11 810 | 3 347 | 35 595 | 57 793 | 18 653 | 21 449 | 5 288 | 31 967 | 77 356 | |
| % | 24,9% | 33,5% | 8,9% | 84,9% | 40,4% | 31,3% | 31,2% | 7,2% | 74,4% | 31,6% |
| Apr-Jun 2022 | Jan-Jun 2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | |||||||
| (Mkr) | Public | Public | Private | Other | Group | Public | Public | Private | Other | Group |
| ARR In - SaaS | 16,6 | 10,0 | 65,8 | - | 92,3 | 16,1 | 8,7 | 59,9 | - | 84,7 |
| ARR In - Support & Maint. | 85,6 | 61,4 | 71,9 | 3,5 | 222,4 | 84,3 | 60,1 | 71,1 | 3,7 | 219,2 |
| ARR In - FX | - | 2,4 | 5,3 | - | 7,8 | - | 3,2 | 6,7 | - | 9,9 |
| ARR In* | 102,2 | 73,8 | 143,0 | 3,5 | 322,5 | 100,4 | 72,0 | 137,7 | 3,7 | 313,7 |
| ACV - SaaS | 2,4 | 1,6 | 5,8 | - | 9,8 | 2,9 | 2,7 | 11,1 | - | 16,7 |
| ACV - Support & Maintenance | 2,0 | -1,3 | -0,4 | -0,1 | 0,2 | 3,3 | -0,5 | -0,4 | -0,2 | 2,1 |
| ACV - Net | 4,4 | 0,3 | 5,4 | -0,1 | 10,0 | 6,2 | 2,2 | 10,7 | -0,2 | 18,8 |
| ARR Out - SaaS | 19,0 | 11,9 | 73,8 | - | 104,7 | 19,0 | 11,9 | 73,8 | - | 104,7 |
| ARR Out - Support & Maint. | 87,6 | 62,3 | 74,5 | 3,5 | 227,9 | 87,6 | 62,3 | 74,5 | 3,5 | 227,9 |
| ARR Out | 106,6 | 74,1 | 148,4 | 3,5 | 332,5 | 106,6 | 74,1 | 148,4 | 3,5 | 332,5 |
| Apr-Jun 2021 | Jan-Jun 2021 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SE | DK | SE | DK | |||||||
| (Mkr) | Public | Public | Private | Other Koncern | Public | Public | Private | Other Koncern | ||
| ARR In - SaaS | 12,8 | 6,4 | 40,6 | - | 59,8 | 13,3 | 5,9 | 35,4 | - | 54,7 |
| ARR In - Support & Maint. | 83,1 | 54,6 | 69,3 | 3,9 | 210,9 | 81,6 | 51,5 | 68,3 | 4,0 | 205,5 |
| ARR In - FX | - | -0,4 | -0,4 | - | -0,8 | - | 0,6 | 2,6 | - | 3,2 |
| ARR In | 95,9 | 60,6 | 109,5 | 3,9 | 269,9 | 95,0 | 58,1 | 106,3 | 4,0 | 263,3 |
| ACV - SaaS | 1,0 | 0,6 | 7,5 | - | 9,2 | 0,5 | 1,0 | 11,9 | - | 13,5 |
| ACV - Support & Maintenance | -0,2 | 0,4 | 0,5 | -0,1 | 0,6 | 1,2 | 2,5 | -0,7 | -0,2 | 2,8 |
| ACV - Net | 0,8 | 1,0 | 8,0 | -0,1 | 9,7 | 1,8 | 3,5 | 11,3 | -0,2 | 16,3 |
| ARR Out - SaaS | 13,9 | 7,0 | 48,0 | - | 68,9 | 13,9 | 7,0 | 48,0 | - | 68,9 |
| ARR Out - Support & Maint. | 82,8 | 54,6 | 69,5 | 3,8 | 210,8 | 82,8 | 54,6 | 69,5 | 3,8 | 210,8 |
| ARR Out | 96,7 | 61,6 | 117,5 | 3,8 | 279,7 | 96,7 | 61,6 | 117,5 | 3,8 | 279,7 |
| 2018-01-01 | 2019-01-01 | 2020-01-01 | 2021-01-01 | 2022-01-01 | |
|---|---|---|---|---|---|
| 2018-12-31 | 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-06-30 | |
| Shares outstanding beginning of the period | 51 873 025 | 52 887 406 | 53 173 907 | 53 463 907 | 53 726 057 |
| Share issue from warrant programme | 314 576 | 286 501 | 290 000 | 262 150 | 252 800 |
| 0 | 0 | 0 | 0 | 238 968 | |
| Non-cash issue | 699 805 | 0 | 0 | 0 | 0 |
| Shares outstanding at the end of the period | 52 887 406 | 53 173 907 | 53 463 907 | 53 726 057 | 54 217 825 |
In order to strengthen Formpipe's competence and capacity to create enhanced cooperation with customers within the SE Public business area, a step towards our long-term strategy of becoming a 'one-stop-shop vendor' of digital government, Alkemit AB was acquired on January 1st. Alkemit AB is one of Formpipe's leading partners in the Swedish public sector and has in recent years successfully built a delivery organization around Formpipe's products and offers management, development projects and support. The acquisition pertained to 100% of the shares in Alkemit AB and has affected the Group's balance sheet and cash and cash equivalents as described below at the time of acquisition. Since the acquisition date, Alkemit AB has contributed SEK 10.2 million in sales and SEK 2.9 million in operating profit before depreciation and non-recurring acquisition-related costs (EBITDA).
Goodwill has been recognised at the time of the acquisition and consists of synergy effects and personnel. Adjustments to the carrying amount are represented by acquired surplus values regarding customer relations, technology and brand. In making this adjustment, the effect of deferred tax has also been taken into account. No portion of reported goodwill is anticipated to be income tax deductible.
The acquisition balance sheet is subject to final adjustments no later than one year after the transaction date.
| (SEK '000) | Fair value |
|---|---|
| Tangible assets | 191 |
| Intangible assets | 3 444 |
| Finansiella tillgångar | 30 |
| Trade and other receivables | 4 034 |
| Cash and cash equivalents | 7 625 |
| Trade payables and other liabilities | -5 877 |
| Deferred tax | -709 |
| Acquired net assets | 8 736 |
| Goodwill | 29 141 |
| Total purchase price | 37 877 |
| - Likvid med emitterade egna aktier | -10 082 |
| - Existing cash in the acquired business | -7 625 |
| Changes to group cash at acquisition | 20 170 |
| Jan-Jun | |||
|---|---|---|---|
| 2022 | 2021 | ||
| Employees at end of period | 287 | 271 | |
| Net sales, SEK 000 | 239 927 | 244 514 | |
| EBITDA, SEK 000 | 31 721 | 77 356 | |
| EBIT, SEK 000 | 3 912 | 35 390 | |
| Net profit for the period, SEK 000 | 317 | 27 106 | |
| EBITDA margin, % | 13,2% | 31,6% | |
| EBIT margin, % | 1,6% | 14,5% | |
| Profit margin, % | 0,1% | 11,1% | |
| Return on equity, %* | 5,8% | 5,6% | |
| Return on working capital, %* | 8,2% | 7,4% | |
| Equity ratio, % | 57% | 56% | |
| Equity per outstanding share at the end of the period, SEK | 7,75 | 7,35 | |
| Earnings per share - before dilution, SEK | 0,01 | 0,51 | |
| Earnings per share - after dilution, SEK | 0,01 | 0,51 | |
| Share price at the end of the period, SEK | 28,90 | 27,00 | |
| * Ratios including P&L measures are based on the most recent 12-month period |
| Apr-Jun | Jan-Jun | |||
|---|---|---|---|---|
| (SEK 000) | 2022 | 2021 | 2022 | 2021 |
| Net sales | 34 600 | 30 603 | 66 586 | 63 745 |
| Operating expenses | ||||
| Sales expenses | -4 004 | -1 278 | -5 796 | -2 951 |
| Other costs | -16 566 | -12 992 | -30 009 | -23 740 |
| Personnel costs | -22 423 | -21 897 | -45 704 | -43 693 |
| Depreciation/amortization | -867 | -716 | -1 719 | -1 331 |
| Total operating expenses | -43 860 | -36 882 | -83 228 | -71 715 |
| Operating profit/loss | -9 260 | -6 280 | -16 642 | -7 970 |
| Result from participations in group companies | - | - | - | - |
| Other financial items | -3 698 | 527 | -4 538 | -573 |
| Appropriations | 466 | - | 466 | - |
| Net profit for the period | -12 492 | -5 752 | -20 714 | -8 543 |
| 30 Jun | 31 Dec |
| 30 Jun | |||
|---|---|---|---|
| (SEK 000) | 2022 | 2021 | 2021 |
| Intangible assets | 8 891 | 8 411 | 9 301 |
| Tangible assets | 1 001 | 1 076 | 1 174 |
| Financial assets | 385 897 | 349 557 | 348 708 |
| Deferred tax asset | 2 249 | - | 2 249 |
| Current assets (excl. cash equivalents) | 87 347 | 39 684 | 161 089 |
| Cash and bank balances | - | 22 470 | 15 898 |
| TOTAL ASSETS | 485 385 | 421 197 | 538 419 |
| Restricted equity | 23 112 | 23 037 | 23 063 |
| Non-restricted equity | 183 320 | 165 097 | 227 130 |
| Total equity | 206 433 | 188 135 | 250 193 |
| Long-term liabilities | 27 500 | 25 330 | - |
| Current liabilities | 251 452 | 207 733 | 288 226 |
| TOTAL EQUITY AND LIABILITIES | 485 385 | 421 197 | 538 419 |
Pledged assets referred to shares in subsidiaries as security for loans. The pledged assets in the Group were the same as disclosed for the Parent Company.
| 30 Jun | 31 Dec | |
|---|---|---|
| (SEK 000) | 2022 | 2021 |
| Pledged assets | - | - |
| Contingent liabilities | - | - |
Formpipe uses alternative key figures, also called APM (Alternative Performance Measures). Formpipe's APM's are calculated from the financial reports, which are prepared in accordance with applicable rules for financial reporting, where prepared figures are altered by adding or subtracting amounts from the presented numbers. Below the alternative performance measures, that Formpipe uses in published reports, are defined and described
The total of license revenue and revenue from support and maintenance contracts.
Revenue of an annually recurring nature such as support and maintenance revenue and revenue from SAAS services regarding license agreements.
Recurring revenue for the period's last month multiplied by 12, to obtain the recurring revenue for the coming 12 months from contracts with recognized revenue.
Initial value for the period's Annual recurring revenue.
Annual recurring revenue of the period's won (ACV +) and lost (ACV -) contracts (net).
Closing value of the period's Annual recurring revenue, provided that all new/lost contracts (ACV) of the period have begun/ceased to be recognized.
Revaluation of ARR IN to the closing balance exchange rates.
Other costs and personnel costs.
Sales costs, other costs, personnel costs, capitalized development and depreciation.
Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability.
EBITDA exclusive capitalized work for own account.
The item must be of a material nature to be reported separately and considered undesirable from the regular core operations and complicate the comparison. For example, acquisition-related items, restructuring-related items and write-downs.
Operating profit/loss.
Earnings before depreciation, amortization, acquisitionrelated costs and other items affecting comparability as a percentage of net sales.
Earnings before capitalized work for own account, depreciation, amortization, acquisition-related costs and other items affecting comparability as a percentage of net sales.
Operating profit/loss as a percentage of net sales.
Net profit/loss after tax as a percentage of sales at the end of the period.
Net profit/loss after tax divided by the average number of shares during the period.
Net proft/loss after tax adjusted for dilution effects divided by the average number of shares after dilution during the period.
Equity at the end of the period divided by the number of shares at the end of the period.
Profit/loss after tax as a percentage of average equity.
Operating profit/loss as a percentage of average working capital (balance sheet total less non-interest bearing liabilities and cash and bank balances).
Cash flow from operating activities minus cash flow from investing activities excluding acquisitions.
Interest bearing debts minus cash and cash equivalents.
Equity as a percentage of the balance sheet total.
Financial information and other related corporate information is published on www.formpipe.se Information may also be ordered from: Formpipe, Box 23131, SE-104 35 Stockholm and on [email protected]
Contact person for investor relations CFO Joakim Alfredson [email protected]
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