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Innofactor Plc Interim / Quarterly Report 2024
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Interim / Quarterly Report
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INNOFACTOR
HALF-YEARLY REPORT Q2/2024
1 (28)
Innofactor Plc Half-Yearly Report July 18, 2024, at 9:00 Finnish time
Innofactor Plc's Half-Yearly Report for January 1–June 30, 2024 (IFRS)
In a challenging market situation, Innofactor fell short of its targets in the second quarter, and profitability was also significantly further reduced by legal expenses.
April–June 2024 in brief:
- Net sales were approximately EUR 19.9 million (2023: 20.1), representing a decrease of 1.1%
- The operating margin was approximately EUR 0.6 million (2023: 1.8), representing a decrease of 65.8%
- The operating margin includes legal expenses of approximately EUR 0.75 million, without which the operating margin would have amounted to EUR 1.4 million and the comparable change would have been a decrease of 23.2%
- Operating profit was EUR -0.1 million (2023: 1.0), representing a decrease of 114.5%
- The operating profit includes the corresponding legal expenses as the operating margin, without which the operating profit would have been approximately EUR 0.6 million and the comparable change would have been a decrease of 38.2%
- The order backlog at the end of the review period was EUR 70.4 million (2023: 77.3), representing a decrease of 8.9%
January–June 2024 in brief:
- Net sales were approximately EUR 41.1 million (2023: 40.3), representing an increase of 1.8%
- The operating margin was approximately EUR 3.2 million (2023: 4.3), representing a decrease of 24.6%
- The operating margin includes legal expenses of approximately EUR 0.75 million, without which the operating margin would have amounted to EUR 4.0 million and the comparable change would have been a decrease of 7.0%
- Operating profit was EUR 1.7 million (2023: 2.7), representing a decrease of 37.2%
- The operating profit includes the corresponding legal expenses as the operating margin, without which the operating profit would have been approximately EUR 2.4 million and the comparable change would have been a decrease of 9.3%
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
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Key figures of the group, IFRS
| Apr 1–Jun 30, 2024 | Apr 1–Jun 30, 2023 | Change | Jan 1–Jun 30, 2024 | Jan 1–Jun 30, 2023 | Change | |
|---|---|---|---|---|---|---|
| Net sales, EUR thousand | 19,866 | 20,095 | -1.1% | 41,052 | 40,317 | 1.8% |
| Revenue in the previous period | 20,095 | 16,946 | 40,317 | 33,911 | ||
| Growth of net sales | -1.1% | 18.6% | 1.8% | 18.9% | ||
| Operating result before depreciation and amortization (EBITDA), EUR thousand | 604 | 1,765 | -65.8% | 3,204 | 4,252 | -24.6% |
| percentage of net sales | 3.0% | 8.8% | 7.8% | 10.5% | ||
| Operating profit/loss (EBIT), EUR thousand | -143 | 984 | -114.5% | 1,693 | 2,695 | -37.2% |
| percentage of net sales | -0.7% | 4.9% | 4.1% | 6.7% | ||
| Earnings before taxes, EUR thousand | -202 | 813 | -124.9% | 1,541 | 2,124 | -27.4% |
| percentage of net sales | -1.0% | 4.0% | 3.8% | 5.3% | ||
| Earnings, EUR thousand | -343 | 459 | -174.8% | 1,034 | 1,496 | -30.8% |
| percentage of net sales | -1.7% | 2.3% | 2.5% | 3.7% | ||
| Order backlog | 70,355 | 77,250 | -8.9% | 70,355 | 77,250 | -8.9% |
| Net gearing | 24.6% | 46.6% | -22.0% | 24.6% | 46.6% | -22.0% |
| Net gearing without IFRS 16 | 15.2% | 30.5% | -15.3% | 15.2% | 30.5% | -15.3% |
| Equity ratio | 51.0% | 46.6% | 4.4% | 51.0% | 46.6% | 4.4% |
| Equity ratio without IFRS 16 | 53.6% | 50.4% | 3.2% | 53.6% | 50.4% | 3.2% |
| Active personnel on average during the review period* | 587 | 584 | 0.5% | 583 | 576 | 1.2% |
| Active personnel at the end of the review period* | 591 | 588 | 0.5% | 591 | 588 | 0.5% |
| Earnings per share (EUR) | -0.01 | 0.01 | -174.8% | 0.03 | 0.04 | -30.8% |
*) Innofactor Group monitors the number of active personnel. The number of active personnel does not include employees who are on leave for more than three months.
Innofactor’s future outlook for 2024
Innofactor’s net sales and operating margin (EBITDA) in 2024 are estimated to increase from 2023, during which net sales were EUR 80.3 million and the operating margin was EUR 9.1 million.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
3 (28)
CEO Sami Ensio’s review: In spite of the challenging market situation, we managed to increase our order backlog when compared to the previous quarter
Net sales in the second quarter of 2024 amounted to EUR 19.9 million, representing a year-on-year decrease of 1.1 percent. During the second quarter, net sales increased in Finland and Norway, but decreased in Sweden and Denmark. The operating margin (EBITDA) decreased by 65.8 percent year-on-year to EUR 0.6 million (3.0 percent of net sales), and was positive in Finland. The operating margin includes legal expenses of approximately EUR 0.75 million, without which the operating margin would have amounted to EUR 1.4 million and the comparable change would have been a decrease of 23.2%.
Net sales in the first half of 2024 amounted to EUR 41.1 million, representing a year-on-year increase of 1.8 percent. In the first half of the year, net sales increased in Finland and Norway, but decreased in Sweden and Denmark. The operating margin (EBITDA) decreased by 24.6 percent year-on-year to EUR 3.2 million (7.8 percent of net sales), and was positive in Finland and Norway. The operating margin includes legal expenses of approximately EUR 0.75 million, without which the operating margin would have amounted to EUR 4.0 million and the comparable change would have been a decrease of 7.0%.
The market situation remained difficult in the second quarter of 2024. New sales were challenging during the second quarter. The order backlog at the end of the review period was EUR 70.4 million, representing a year-on-year decrease of 8.9 percent. However, the order backlog increased by 2.2 percent when compared to the first quarter of the year. Our invoicing rate fell short of our target due to the challenging demand situation.
Innofactor wants to maintain its competitiveness when demand eventually turns to growth again. In our tendering activities, we have not priced our services below our cost. We are adapting our operations with a conservative approach. We have reduced the use of subcontracting, especially in Finland and Sweden. In the second quarter, we also reduced the number of our personnel by approximately 20 percent in Sweden, where profitability has been weak for an extended period of time and the challenging market situation has further exacerbated the situation. This resulted in expenses in the second quarter, but that will no longer be the case in the second half of the year.
According to a decision handed down by the arbitration tribunal of the Stockholm Chamber of Commerce, Innofactor Plc will not be able to collect the previously awarded damages of approximately EUR 2.3 million in relation to the 2016 Lumagate acquisition to the full extent of the awarded damages. Instead, Innofactor Plc's distribution share will be approximately EUR 1 million at a maximum. In addition to this, Innofactor Plc will bear its own legal costs of approximately EUR 309,000, the opposing party's legal costs of approximately EUR 310,000 and the costs of the arbitration, EUR 166,150. These expenses were recognised in full in the second quarter, and there should be no further costs related to the matter.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
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Innofactor’s aim is to be the leading provider of organizations’ digital transformation in each of the Nordic countries. We believe in our chosen Nordic strategy and in reaching our long-term goals. This requires perseverance and determination from the company’s management and employees as well as investors. Innofactor is still actively looking for new strategic partnerships in the Nordic countries. The Group’s goal is to grow both organically and through acquisitions.
Strategy and its realization in the review period
Innofactor’s strategy comprises our purpose, mission, vision, strategic choices, values, working principle, employer promise, and long-term financial goals.
Our purpose: Innovating to make the world work better
Our mission: Driving the modern digital organization
Our vision: Leading Nordic digital transformation partner in the Microsoft ecosystem
Our strategic choices:
- The most competent Nordic teams
- Productized and specialized offering
- Proactive and agile way of working
- Innovation with top customers
Our values:
- Accountability
- Empowerment
- Innovation
- Customer
Our working principle: Our principle is to put people first in everything we do. We want to provide solutions that make our customers’ everyday work and life run smoothly and bring a smile to their faces.
Employer Value Proposition: Be the real you
Our long-term financial goals:
- To achieve annual growth of about 20 percent, the majority of which is intended to be achieved by organic growth
- To achieve about 20 percent EBITDA in relation to the net sales
- To keep the cash flow positive and secure good financial standing in all situations.
Innofactor’s net sales in the first half of the year amounted to EUR 41.1 million (2023: 40.3), representing year-on-year growth of 1.8 percent. The prevailing weak market situation makes the
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
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net sales growth target challenging at present. Innofactor aims to continue to take measures to support stronger net sales growth going forward.
The operating margin (EBITDA) was 7.8 percent of net sales (2023: 10.5%). In the period under review, the operating margin decreased by 24.6 percent year-on-year. The operating margin includes legal expenses of approximately EUR 0.75 million, without which the operating margin would have amounted to EUR 4.0 million and the comparable change would have been a decrease of 7.0%. While profitability has improved over the long term, continued attention and efforts by the management are still needed in the coming years to reach the long-term operating margin target of approximately 20 percent.
Innofactor's operating cash flow for the review period January 1–June 30, 2024, amounted to EUR 5.5 million (2023: EUR 3.9 million) and the equity ratio at the end of the review period was 51.0 percent (2023: 46.6 percent). Innofactor's strong operating cash flow supports the company's strategic goal of profitable growth and securing a solid financial standing in all situations. The amount of interest-bearing liabilities has decreased considerably. At the end of the review period, the company's interest-bearing liabilities to financial institutions amounted to only approximately EUR 4.0 million, consisting entirely of current liabilities.
Innofactor's Q2 net sales decreased year-on-year
Innofactor's net sales for the period April 1–June 30, 2024, amounted to EUR 19,866 thousand (2023: 20,095), representing a decrease of 1.1 percent. Net sales per active employee amounted to approximately EUR 33.8 thousand (2023: 34.4), representing a decrease of 1.6 percent.
Innofactor's net sales for the period January 1–June 30, 2024, amounted to EUR 41,052 thousand (2023: 40,317), which shows an increase of 1.8 percent. Net sales per active employee amounted to approximately EUR 70.4 thousand (2023: 70.0), which shows an increase of 0.6 percent. We focus on continuing to increase our net sales per active employee, which is supported particularly by the growth of the invoicing rate.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
Innofactor
HALF-YEARLY REPORT Q2/2024
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Distribution of net sales in January 1–June 30, 2024
Innofactor’s business operations were focused on Finland, Sweden, Denmark and Norway. During the period January 1–June 30, 2024, approximately 73 percent of the net sales came from Finland, approximately 13 percent from Sweden, approximately 13 percent from Norway, and approximately 1 percent from Denmark. Compared with the corresponding period in 2023, net sales increased in Finland and Norway, but decreased in Sweden and Denmark.
During the period January 1–June 30, 2024, approximately 51 percent of the net sales came from commercial customers (including third-sector customers) and approximately 49 percent came from public sector customers.
Innofactor’s net sales for the review period of January 1–June 30, 2024, were derived from the following sources:
- Licenses: 3 percent, including all non-recurring fees received for software
- SaaS: 28 percent, including recurring income from SaaS, cloud and hosting services and from software maintenance
- Services: 37 percent, including specialist work based on recurring service contracts, such as smaller customer-specific changes and the further development of IT systems
- Projects: 32 percent from IT system delivery projects and consulting
Innofactor’s 10 largest customers accounted for approximately 35.4 percent of net sales for the review period January 1–June 30, 2024.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
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Innofactor's operating margin decreased year-on-year
Innofactor's operating margin (EBITDA) for April 1–June 30, 2024, was EUR 604 thousand (2023: 1,765), representing a decrease of 65.8 percent. EBITDA represented 3.0 percent of net sales (2023: 8.8%). Innofactor's operating margin was positive in Finland and negative in Sweden, Norway and Denmark. The operating margin includes legal expenses of approximately EUR 751 thousand, without which the operating margin would have amounted to EUR 1,355 thousand and the comparable change would have been a decrease of 23.2%.
Innofactor's operating margin (EBITDA) for January 1–June 30, 2024, was EUR 3,204 thousand (2023: 4,252), representing a decrease of 24.6 percent. EBITDA was 7.8 percent of net sales (2023: 10.5%). Innofactor's operating margin was positive in Finland and Norway, and negative in Sweden and Denmark. The operating margin includes legal expenses of approximately EUR 751 thousand, without which the operating margin would have amounted to EUR 3,955 thousand and the comparable change would have been a decrease of 7.0%.
Innofactor's operating profit for the period April 1–June 30, 2024, was EUR -143 thousand (2023: 984), representing a decrease of 114.5 percent. Operating profit was -0.7 percent of net sales (2023: 4.9%). The operating profit includes legal expenses of approximately EUR 751 thousand, without which the operating profit would have amounted to EUR 608 thousand and the comparable change would have been a decrease of 38.2%.
Innofactor's operating profit for the period January 1–June 30, 2024, amounted to EUR 1,693 thousand (2023: 2,695), representing a decrease of 37.2 percent. Operating profit was 4.1 percent of net sales (2023: 6.7%). The operating profit includes legal expenses of approximately EUR 751 thousand, without which the operating profit would have amounted to EUR 2,444 thousand and the comparable change would have been a decrease of 9.3%.
Acquisitions have been a central part of Innofactor's strategy. Depreciations of intangible rights resulting from acquisitions vary greatly depending on how valuable the customer contracts and technology of the acquired company are estimated to be and also according to what kind of schedule the resulting intangible rights will be depreciated. For this reason, the company's view is that, instead of operating profit, the primary measure for profitability should be the operating margin (EBITDA), because it is not affected by the said depreciation.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
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Innofactor's order backlog decreased year-on-year, but increased from the preceding quarter
Innofactor's order backlog at the end of the review period was EUR 70,355 thousand (2023: 77,250), representing a year-on-year decrease of 8.9 percent. The decrease in the order backlog is due to the weak market situation, in which generating new sales has been challenging between Q2/2023 and Q2/2024. The order backlog improved from the preceding quarter (Q1/2024: EUR 68,819 thousand), representing an increase of 2.2 percent.
At the end of the review period, the value of the framework agreement backlog was EUR 30,692 thousand (2023: 28,410), which shows an increase of 8.0 percent. The framework agreement backlog remained largely on a par with the preceding quarter (Q1/2024: EUR 30,527 thousand), representing an increase of 0.5 percent.
Innofactor's operating cash flow remained strong during the review period
Innofactor's balance sheet total at the end of the review period was EUR 51,226 thousand (2023: 54,164). The Group's liquid assets totaled EUR 262 thousand (2023: 226), consisting entirely of cash funds.
Operating cash flow for the review period January 1–June 30, 2024, was EUR 5,519 thousand (2023: 3,925). Cash flow from investing activities was EUR -257 thousand (2023: -394).
The equity ratio at the end of the review period was 51.0 percent (2023: 46.6%) and net gearing was 24.6 percent (2023: 46.6%).
At the end of the review period, the company had EUR 3,974 thousand in interest-bearing liabilities to financial institutions (2023: 7,508), consisting entirely of current liabilities (2023: non-current liabilities 2,747 and current liabilities 4,761). The company had IFRS 16 lease liabilities amounting to EUR 2,301 thousand (2023: 3,845) of which EUR 1,804 thousand in current leases (2023: 2,073) and EUR 497 thousand in non-current leases (2023: 1,772). The total amount of interest-bearing liabilities was EUR 6,275 thousand (2023: 11,353).
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
Innofactor
HALF-YEARLY REPORT Q2/2024
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The return on invested capital for the rolling four quarters from January 1 to June 30, 2024, decreased slightly year-on-year and was 16.6 percent (2023: 16.7%). The return on equity for the rolling four quarters from January 1 to June 30, 2024, decreased year-on-year and was 13.1 percent (2023: 13.6%).
The non-current assets on Innofactor's balance sheet at the end of the review period totaled EUR 33,788 thousand (2023: 37,203).
Innofactor's gross investments in tangible and intangible assets during the review period of January 1–June 30, 2024, came to EUR 270 thousand (2023: 273), consisting of normal additional and replacement investments required by growth.
Innofactor's research and product development investments increased from last year
During the review period, the focus of product development was on the renewal of existing products and services as well as continuous further development in order to support the growth of product-based business. The focus of the investments was particularly on the Innofactor Dynasty product family.
Innofactor's research and development costs recognized in profit or loss for January 1–June 30, 2024, amounted to approximately EUR 3,033 thousand (2023: 2,453), representing 7.4 percent of net sales (2023: 6.1%).
Innofactor's number of personnel increased slightly
Active headcount 2020 - 2024
Innofactor primarily monitors the number of active personnel. The number of active personnel does not include employees who are on leave for more than three months.
The average number of active personnel during the period April 1–June 30, 2024, was 587 (2023: 584), which shows an increase of 0.5 percent.
At the end of the review period, the number of active personnel was 591 (2023: 588), representing an increase of 0.5 percent.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
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At the end of the review period, the average age of the personnel was 42.2 years (2023: 42.2). Women accounted for 27 percent (2023: 27%) of the personnel. Men accounted for 73 percent (2023: 73%) of the personnel.
The reductions in personnel implemented in Sweden in the second quarter are not yet reflected in the figures.
Growth was achieved in Digital Services and Information and Case Management
During the period April 1–June 30, 2024, the net sales of the Digital Solutions solution area amounted to EUR 4,851 thousand (2023: 4,589), showing growth of 5.7 percent. The solution area’s operating margin for the period April 1–June 30, 2024, was EUR 644 thousand (2023: 679), representing 13.3 percent of net sales (2023: 14.8%). The solution area’s order backlog at the end of the review period amounted to EUR 12,943 thousand (2023: 31,421). We transferred part of the order backlog to the framework agreement backlog in the financial statements for 2023.
The solution area’s net sales for the period January 1–June 30, 2024, amounted to EUR 10,475 thousand (2023: 9,286), showing an increase of 12.8 percent. The solution area’s operating margin for the period January 1–June 30, 2024, was EUR 1,802 thousand (2023: 1,509), representing 17.2 percent of net sales (2023: 16.2%).
During the period April 1–June 30, 2024, the net sales of the Business Solutions solution area amounted to EUR 4,270 thousand (2023: 4,678), showing a decrease of 8.7 percent. The solution area’s operating margin for the period April 1–June 30, 2024, was EUR -709 thousand (2023: -107), representing -16.6 percent of net sales (2023: -2.3%). The solution area’s order backlog at the end of the review period amounted to EUR 14,009 thousand (2023: 11,107).
The solution area’s net sales for the period January 1–June 30, 2024, amounted to EUR 8,714 thousand (2023: 9,510), showing a decrease of 8.4 percent. The solution area’s operating margin for the period January 1–June 30, 2024, was EUR -737 thousand (2023: -36), representing -8.5 percent of net sales (2023: -0.4%).
During the period April 1–June 30, 2024, the net sales of the Information and Case Management* solution area amounted to EUR 5,001 thousand (2023: 4,919), showing growth of 1.7 percent. The solution area’s operating margin for the period April 1–June 30, 2024, was EUR 827 thousand (2023: 1,032), representing 16.5 percent of net sales (2023: 21.0%). The solution area’s order backlog at the end of the review period amounted to EUR 21,134 thousand (2023: 20,366).
The solution area’s net sales for the period January 1–June 30, 2024, amounted to EUR 9,801 thousand (2023: 9,077), showing growth of 8.0 percent. The solution area’s operating margin for the period January 1–June 30, 2024, was EUR 1,838 thousand (2023: 1,783), representing 18.8 percent of net sales (2023: 19.6%).
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
11 (28)
During the period April 1–June 30, 2024, the net sales of the Cloud, Data, Modern Work and Data Security* solution area amounted to EUR 5,745 thousand (2023: 5,909), showing a decrease of 2.8 percent. The solution area’s operating margin for the period April 1–June 30, 2024, was EUR -159 thousand (2023: 160), representing -2.8 percent of net sales (2023: 2.7%). The solution area’s order backlog at the end of the review period amounted to EUR 22,269 thousand (2023: 14,357).
The solution area’s net sales for the period January 1–June 30, 2024, amounted to EUR 12,062 thousand (2023: 12,443), showing a decrease of 3.1 percent. The solution area’s operating margin for the period January 1–June 30, 2024, was EUR 301 thousand (2023: 996), representing 2.5 percent of net sales (2023: 8.0%).
*) The figures for 2024 and 2023 are not fully comparable because, at the beginning of 2024, one team with annual net sales of approximately EUR 950 thousand moved from the Information and Case Management solution area to the Cloud, Data, Modern Work and Data Security solution area.
Other events in the review period
On May 2, 2024, Innofactor issued a stock exchange release to disclose that Innofactor Plc had transferred a total of 45,628 of its own shares held by the company to the members of the Board of Directors as part of their remuneration in accordance with the decision made at the Annual General Meeting held on March 27, 2024. The share-based board member incentive was paid using the closing price of the share on the publication date of the interim report for January 1–March 31, 2024, which was April 23, 2024. As a result of these transfers, the share-based board member incentive was fully paid off. Following the transfers, Innofactor holds 554,372 of its own shares.
On May 22, 2024, Innofactor issued a stock exchange release to disclose that Keva has chosen Innofactor to provide expert work and support services related to the development of their Microsoft Dynamics 365 services.
Shareholders
At the end of the review period, Innofactor Plc’s share capital was EUR 2,100,000.00 and the total number of shares was 36,343,691. Innofactor Plc has one series of shares. Each share confers one vote.
During the period April 1–June 30, 2024, the highest price of the company’s share was EUR 1.34 (2023: 1.29), the lowest price was EUR 1.25 (2023: 1.13) and the average price was EUR 1.30 (2023: 1.22). The closing price for the review period on June 30, 2024, was EUR 1.30 (2023: 1.20).
In public trading during the period April 1–June 30, 2024, a total of 1,871,403 shares were traded (2023: 1,531,497 shares), which corresponds to 5.1 percent (2023: 4.2%) of the average number of shares in the said period. During the period April 1–June 30, 2024, the average number of shares
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
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was 36,343,691 (2023: 36,782,233). The share trading volume increased by 22.2 percent when compared to the corresponding period in 2023.
In public trading during the period January 1–June 30, 2024, a total of 4,035,169 shares were traded (2023: 3,832,968), which corresponds to 11.1 percent (2023: 10.3%) of the average number of shares in the said period. During the period January 1–June 30, 2024, the average number of shares was 36,343,691 (2023: 37,083,555). The share trading volume increased by 5.3 percent when compared to the corresponding period in 2023.
The market value of the share capital at the closing price of EUR 1.30 on June 30, 2024, was EUR 47,065 thousand (2023: 43,431), which shows an increase of 8.4 percent.
On June 30, 2024, the company had a total of 11,690 shareholders (2023: 11,807), including nominee-registered shares.
On June 30, 2024, the company held 554,372 treasury shares.
Decisions of the Annual General Meeting
On March 27, 2024, the Annual General Meeting decided, in accordance with the proposal of the Board of Directors, that a repayment of capital of EUR 0.07 per share be paid for the financial year 2023. The repayment of capital was paid to shareholders who, on the record date of the capital repayment on April 2, 2024, were recorded in the company's shareholders' register held by Euroclear Finland Oy. The repayment of capital was paid on April 9, 2024.
The Annual General Meeting of March 27, 2024, decided that the Board of Directors shall have four members. Mr. Sami Ensio, Ms. Anna Lindén, Mr. Risto Linturi, and Mr. Heikki Nikku were re-elected as members to the Board of Directors. At the organizing meeting held after the Annual General Meeting, the Board of Directors elected Anna Lindén as the Chairman of the Board.
The Annual General Meeting approved the proposal to appoint Ernst & Young Oy, an auditing firm authorized by the Central Chamber of Commerce, as the auditor for the company, with Juha Hilmola as the main responsible auditor.
The Board of Directors has been given the following authorizations:
- Until June 30, 2025, to decide on a share issue and granting of special rights entitling to shares, concerning a maximum of 3,600,000 new shares (decided by the Annual General Meeting of March 27, 2024); the authorization has not been used.
- Until June 30, 2025, to decide on an acquisition of a maximum of 3,600,000 treasury shares (decided by the Annual General Meeting of March 27, 2024); the authorization has not been used.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
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- Until the next Annual General Meeting, to distribute assets to shareholders as repayment of capital totaling a maximum of EUR 2,544,058, which allows the distribution of assets up to a maximum of EUR 0.07 per share; the authorization has not been used.
Management of the company
Innofactor Plc complies with the recommendations of the Corporate Governance Code 2022 for Finnish listed companies, published by the Securities Market Association.
Innofactor has drawn up a separate Corporate Governance Statement for the financial period 2023.
Innofactor Plc's entire Corporate Governance and statements are available on the company's website at: www.innofactor.com/invest-in-us/corporate-governance/
Related party transactions
The company's managers considered to be related parties have EUR 9 thousand in liabilities from the company's personnel issues to the company. The loan period is five years, and the loan is repaid in fixed monthly installments. There are also two-year loans that are repaid in four equal instalments every six months. The interest rate for the loan is 12-month Euribor 360. However, the interest rate is always a minimum of 0%. The accrued interest is paid to the company monthly.
Market outlook and business environment
The market outlook and business environment are published in their entirety in the financial statement and in the Annual Report.
There have been no other significant changes in market outlook and business environment during the review period, nor are other significant changes foreseen.
Short term risks and uncertainty factors
Innofactor's operations and finances involve risks that may be significant for the company and its share value. These risks are assessed by Innofactor Plc's Board of Directors four times a year as part of the strategy and business planning process. The risks are published in their entirety in the financial statement and in the Annual Report of the Board of Directors. The interim reports only present the changes in short-term risks.
There have been no other significant changes in Innofactor's short-term risks and uncertainty factors during the review period nor can any other significant changes be seen.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
14 (28)
Acquisitions and changes in the Group structure
There were no acquisitions or changes in the group structure during the review period.
Events after the review period
On July 3, 2024, Innofactor issued a stock exchange release to disclose that, according to a decision handed down by the arbitration tribunal of the Stockholm Chamber of Commerce, Innofactor Plc will not be able to collect the previously awarded damages of approximately EUR 2.3 million in relation to the 2016 Lumagate acquisition to the full extent of the awarded damages. Instead, Innofactor Plc's distribution share will be approximately EUR 1 million at a maximum. In addition to this, Innofactor Plc will bear its own legal costs of approximately EUR 309,000, the opposing party's legal costs of approximately EUR 310,000 and the costs of the arbitration, EUR 166,150.
Espoo, July 17, 2024
INNOFACTOR PLC
Board of Directors
Additional information:
CEO Sami Ensio, Innofactor Plc
tel. +358 50 584 2029
[email protected]
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
15 (28)
Briefings concerning Innofactor Plc's half-yearly report for January 1–June 30, 2024
Innofactor will publish its half-yearly report for January–June 2024 on Thursday, July 18, 2024, at approximately 9:00 Finnish time.
A briefing in Finnish concerning the half-yearly report will be held for media, investors and analysts on the same day at 10:00 Finnish time, at the company’s premises at Keilaranta 9, Espoo. The report will be presented by CEO Sami Ensio. The corresponding video conference in English will be held at 12 noon Finnish time. The report will be presented by CFO Antti Rokala.
Please register for the briefing in advance by sending an e-mail to [email protected].
The presentation materials will be available on Innofactor’s website after the briefing.
Distribution:
NASDAQ Helsinki
Main media
www.innofactor.fi
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
16 (28)
Financial statement summary and notes January 1–June 30, 2024 (IFRS)
Accounting policies
Innofactor operates on a single segment, offering software, systems and related services.
This interim report has been drafted in accordance with the IAS 34 Interim financial reporting standard.
The interim report adheres to the same accounting policies and calculation methods as the last annual financial statement 2023. However, as of January 1, 2024, the Group has introduced the new or renewed IFRS standards and IFRIC interpretations published by IASB and mentioned in the accounting policies section of the financial report 2023. The principles for calculating the key figures and the calculation formulas have not been changed, and they have been presented in an appendix to this report.
In addition to the IFRS key figures, Innofactor publishes certain alternative key figures in order to present the financial development of the actual business operations and to improve comparisons between different periods, such as equity ratio, net gearing, return on investment, return on equity, and net sales per person. The formulas for calculating the other alternative key figures are presented at the end of this report.
Drafting a financial statement in accordance with the IFRS standards requires the management of Innofactor to use estimates and presuppositions, which affect the amounts of assets and debts at the time of drafting the balance sheet and the amounts of earnings and costs for the review period. The application of the accounting policies also requires judgment. As estimates and presuppositions are based on the views held at the time of drafting the statement, they contain risks and uncertainty factors. The actual figures may deviate from the estimates and presuppositions. The figures of the profit and loss statement and the balance sheet are figures for the Group. The figures of the statement have been rounded, so the sum of individual figures may differ from the sum presented.
Translation differences
In the consolidated financial statements, exchange rate differences arising from the equity of foreign subsidiaries and loans comparable with foreign net investments are recognized in translation differences through the Group's other comprehensive income items. In the second quarter of the financial year 2022, the Group's management classified certain intra-group loans as loans comparable with net investments and the exchange rate differences arising from these loans are recognized in translation differences.
The figures in this interim report have not been audited.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
17 (28)
Comprehensive consolidated profit and loss statement, IFRS
| Apr 1–Jun 30, 2024 | Apr 1–Jun 30, 2023 | Jan 1–Jun 30, 2024 | Jan 1–Jun 30, 2023 | |
|---|---|---|---|---|
| EUR thousand | ||||
| Net sales | 19,866 | 20,095 | 41,052 | 40,317 |
| Other operating income | 29 | 28 | 54 | 48 |
| Materials and services (–) | -3,238 | -3,256 | -6,871 | -6,530 |
| Employee benefit expenses (–) | -13,183 | -13,140 | -26,507 | -25,916 |
| Depreciation (–) | -747 | -781 | -1,512 | -1,556 |
| Other operating expenses (–) | -2,870 | -1,962 | -4,522 | -3,667 |
| Operating profit/loss | -143 | 984 | 1,693 | 2,695 |
| Financial income | 7 | 16 | 50 | 26 |
| Financial expenses (–) | -66 | -187 | -201 | -597 |
| Profit/loss before taxes | -202 | 813 | 1,541 | 2,124 |
| Income taxes | -141 | -354 | -507 | -628 |
| Profit/loss for the financial period | -343 | 459 | 1,034 | 1,496 |
| Distribution of the result | ||||
| To shareholders of the parent company | -343 | 459 | 1,034 | 1,496 |
| To non-controlling interests | 0 | 0 | 0 | 0 |
| Other comprehensive income | ||||
| Items that may be later recognized | ||||
| in profit or loss: | ||||
| Translation differences | -11 | -581 | -122 | -361 |
| Total comprehensive income | -354 | -122 | 912 | 1,135 |
| Distribution of the comprehensive income | ||||
| To shareholders of the parent company | -354 | -122 | 912 | 1,135 |
| To non-controlling interests | 0 | 0 | 0 | 0 |
| Earnings per share calculated from the profit attributable to equity holders of the parent: | ||||
| basic earnings per share (EUR) | -0.0094 | 0.0126 | 0.0283 | 0.0409 |
| diluted earnings per share (EUR) | -0.0094 | 0.0126 | 0.0283 | 0.0409 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
18 (28)
Consolidated balance sheet, IFRS
ASSETS
| EUR thousand | Jun 30, 2024 | Jun 30, 2023 | Dec 31, 2023 |
|---|---|---|---|
| Non-current assets | |||
| Tangible assets | 986 | 1,182 | 1,080 |
| Right-of-use assets | 2,216 | 3,730 | 3,177 |
| Goodwill | 26,692 | 26,474 | 26,835 |
| Other intangible assets | 1,774 | 2,206 | 1,929 |
| Shares and holdings | 98 | 98 | 98 |
| Receivables | 44 | 108 | 44 |
| Deferred tax assets | 1,978 | 3,405 | 2,415 |
| Non-current assets | 33,788 | 37,203 | 35,578 |
| Current assets | |||
| Trade and other receivables | 17,176 | 16,735 | 18,449 |
| Cash and cash equivalents | 262 | 226 | 425 |
| Current assets | 17,437 | 16,961 | 18,873 |
| TOTAL ASSETS | 51,226 | 54,164 | 54,451 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
19 (28)
SHAREHOLDERS' EQUITY AND LIABILITIES
| Jun 30, 2024 | Jun 30, 2023 | Dec 31, 2023 | |
|---|---|---|---|
| EUR thousand | |||
| Share capital | 2,100 | 2,100 | 2,100 |
| Share premium reserve | 72 | 72 | 72 |
| Other reserves (+/-) | 59 | 59 | 59 |
| Fund for invested unrestricted equity | 13,105 | 15,069 | 15,069 |
| Retained earnings | 11,167 | 8,823 | 10,133 |
| Translation differences | -2,073 | -2,262 | -1,950 |
| Equity attributable to the shareholders of the parent company | 24,431 | 23,861 | 25,483 |
| Non-controlling interest | 0 | 0 | 0 |
| Total shareholders' equity | 24,431 | 23,861 | 25,483 |
| Non-current liabilities | |||
| Loans from financial institutions | 0 | 2,747 | 1,770 |
| Lease liabilities | 497 | 1,772 | 1,295 |
| Deferred tax liabilities | 1,714 | 1,828 | 1,779 |
| Other non-current liabilities | 0 | 0 | 0 |
| Total non-current liabilities | 2,211 | 6,346 | 4,845 |
| Current liabilities | |||
| Loans from financial institutions | 3,974 | 4,761 | 4,555 |
| Lease liabilities | 1,804 | 2,073 | 1,996 |
| Trade and other payables | 18,806 | 17,122 | 17,573 |
| Current liabilities total | 24,584 | 23,957 | 24,123 |
| Total liabilities | 26,795 | 30,302 | 28,968 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 51,226 | 54,164 | 54,451 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
20 (28)
Statement of change in shareholders' equity, IFRS
| EUR thousand | Share capital | Share premium reserve | Reserve fund | Fund for invested unrestricted equity | Own shares | Retained earnings | Exchange differences | Total shareholders' equity |
|---|---|---|---|---|---|---|---|---|
| Shareholders' equity Jan 1, 2024 | 2,100 | 72 | 59 | 15,069 | -2,119 | 12,252 | -1,950 | 25,483 |
| Comprehensive income | ||||||||
| Result for the financial period | 1,034 | 1,034 | ||||||
| Other comprehensive income: | ||||||||
| Translation differences | -122 | -122 | ||||||
| Total comprehensive income | 1,033 | -122 | 911 | |||||
| Repayment of capital | -1,963 | -1,963 | ||||||
| Change in treasury shares | 0 | |||||||
| Shareholders' equity Jun 30, 2024 | 2,100 | 72 | 59 | 13,106 | -2,119 | 13,286 | -2,073 | 24,431 |
| EUR thousand | Share capital | Share premium reserve | Reserve fund | Fund for invested unrestricted equity | Own shares | Retained earnings | Exchange differences | Total shareholders' equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Shareholders' equity Jan 1, 2023 | 2,100 | 72 | 59 | 17,247 | -1,592 | 8,815 | -1,902 | 24,799 |
| Comprehensive income | ||||||||
| Result for the financial period | 1,496 | 1,496 | ||||||
| Other changes | -6 | -6 | ||||||
| Other comprehensive income: | ||||||||
| Translation differences | -361 | -361 | ||||||
| Total comprehensive income | 1,489 | -361 | 1,128 | |||||
| Repayment of capital | -2,177 | -2,177 | ||||||
| Change in treasury shares | 111 | 111 | ||||||
| Shareholders' equity Jun 30, 2023 | 2,100 | 72 | 59 | 15,069 | -1,481 | 10,304 | -2,262 | 23,861 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
21 (28)
Consolidated cash flow statement, IFRS
| Jan 1–Jun 30, 2024 | Jan 1–Jun 30, 2023 | |
|---|---|---|
| EUR thousand | ||
| Cash flow from operating activities | ||
| Profit before taxes | 1,541 | 2,124 |
| Adjustments: | ||
| Depreciation | 1,512 | 1,556 |
| Other transactions with no related cash flow | 203 | 209 |
| Operating profit before change in working capital | 3,256 | 3,889 |
| Change in trade and other receivables (+/-) | 1,261 | -2,198 |
| Change in trade and other payables (+/-) | 1,233 | 2,307 |
| Change in working capital | 2,493 | 108 |
| Cash flow from operating activities before financing and income taxes paid | 5,749 | 3,997 |
| Interest received | 48 | 26 |
| Interest paid (-) | -57 | -98 |
| Taxes paid | -221 | 0 |
| Net cash flow from operating activities | 5,519 | 3,925 |
| Investment cash flow | ||
| Acquisition of subsidiaries | 0 | 0 |
| Purchase of shares in associated companies | 0 | -93 |
| Investments in intangible and tangible assets (-) | -270 | -273 |
| Change in loan receivables | 12 | -28 |
| Net cash flow from investments | -257 | -394 |
| Cash flow from financing | ||
| Loans withdrawn | 0 | 0 |
| Loans paid | -2,351 | -1,895 |
| Lease liability payments | -1,111 | -1,136 |
| Dividend distribution/repayment of capital | -1,963 | -2,177 |
| Payment of equity loans | 0 | 0 |
| Purchase of own shares | 0 | -389 |
| Transfer of own shares | 0 | 336 |
| Net cash flow from financing | -5,425 | -5,261 |
| Change in cash and cash equivalents (+/-) | -163 | -1,730 |
| Cash and cash equivalents, opening balance | 425 | 1,956 |
| Cash and cash equivalents, closing balance | 262 | 226 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
22 (28)
Consolidated profit and loss statement by quarter, IFRS
| EUR thousand | Jan 1–Mar 31, 2024 | Apr 1–Jun 30, 2024 | Jul 1–Sep 30, 2024 | Oct 1–Dec 31, 2024 | Jan 1–Mar 31, 2023 | Apr 1–Jun 30, 2023 | Jul 1–Sep 30, 2023 | Oct 1–Dec 31, 2023 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 21,186 | 19,866 | 20,223 | 20,095 | 18,015 | 21,930 | ||
| Other operating income | 25 | 29 | 19 | 28 | 41 | 0 | ||
| Materials (–) | -3,633 | -3,238 | -3,275 | -3,256 | -3,566 | -3,411 | ||
| Employee benefit expenses (–) | -13,324 | -13,183 | -12,776 | -13,140 | -11,101 | -13,767 | ||
| Depreciation (–) | -765 | -747 | -775 | -781 | -761 | -948 | ||
| Other operating expenses (–) | -1,653 | -2,870 | -1,704 | -1,962 | -1,419 | -1,925 | ||
| Operating profit/loss | 1,836 | -143 | 1,712 | 984 | 1,209 | 1,209 | ||
| Financial income | 43 | 7 | 42 | 16 | 91 | 0 | ||
| Financial expenses (–) | -135 | -66 | -411 | -187 | 128 | -308 | ||
| Profit/loss before taxes | 1,744 | -202 | 1,311 | 813 | 1,428 | 1,428 | ||
| Income taxes | -366 | -141 | -274 | -354 | -363 | -745 | ||
| Profit/loss for the financial period | 1,378 | -343 | 1,036 | 459 | 1,064 | 1,064 | ||
| EBITDA | 2,601 | 604 | 2,487 | 1,765 | 1,970 | 2,879 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
23 (28)
Key figures for the solution areas
| Apr 1–Jun 30, 2024 | Digital Services | Business Solutions | Information and Case Management | Cloud, Data, Modern Work and Data Security | Total |
|---|---|---|---|---|---|
| EUR thousand | |||||
| SaaS net sales | 554 | 1,329 | 2,457 | 1,476 | 5,816 |
| License net sales | 26 | 225 | 211 | 175 | 637 |
| Project net sales | 1,252 | 1,428 | 1,762 | 1,636 | 6,077 |
| Service net sales | 3,020 | 1,287 | 572 | 2,457 | 7,336 |
| Total net sales | 4,851 | 4,269 | 5,001 | 5,745 | 19,866 |
| Growth, % | 5.7% | -8.7% | 1.7% | -2.8% | -1.1% |
| EBITDA | 644 | -709 | 827 | -159 | 604 |
| percentage of net sales | 13.3% | -16.6% | 16.5% | -2.8% | 3.0% |
| Order backlog | 12,943 | 14,009 | 21,134 | 22,269 | 70,355 |
| percentage of net sales | 267% | 328% | 423% | 388% | 354% |
| Research and product development expenses | 36 | 153 | 1,295 | 101 | 1,585 |
| percentage of net sales | 1% | 4% | 26% | 2% | 8% |
| Apr 1–Jun 30, 2023 | Digital Services | Business Solutions | Information and Case Management | Cloud, Data, Modern Work and Data Security | Total |
| --- | --- | --- | --- | --- | --- |
| EUR thousand | |||||
| SaaS net sales | 641 | 1,330 | 2,270 | 1,202 | 5,442 |
| License net sales | 45 | 191 | 323 | 175 | 734 |
| Project net sales | 1,781 | 1,579 | 1,194 | 2,364 | 6,919 |
| Service net sales | 2,122 | 1,577 | 1,132 | 2,169 | 6,999 |
| Total net sales | 4,589 | 4,678 | 4,919 | 5,909 | 20,094 |
| Growth, % | 15.1% | 1.2% | 32.2% | 28.0% | 18.6% |
| EBITDA | 679 | -107 | 1,032 | 160 | 1,764 |
| percentage of net sales | 14.8% | -2.3% | -21.0% | 2.7% | 8.8% |
| Order backlog | 31,421 | 11,107 | 20,366 | 14,357 | 77,250 |
| percentage of net sales | 685% | 237% | 414% | 243% | 384% |
| Research and product development expenses | 0 | 142 | 1,101 | 8 | 1,251 |
| percentage of net sales | 0% | 3% | 22% | 0% | 6% |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
24 (28)
| Jan 1–Jun 30, 2024 | Digital Services | Business Solutions | Information and Case Management | Cloud, Data, Modern Work and Data Security | Total |
|---|---|---|---|---|---|
| EUR thousand | |||||
| SaaS net sales | 1,016 | 2,631 | 4,667 | 2,986 | 11,301 |
| License net sales | 50 | 319 | 441 | 428 | 1,238 |
| Project net sales | 3,387 | 2,956 | 3,328 | 3,464 | 13,135 |
| Service net sales | 6,021 | 2,808 | 1,365 | 5,184 | 15,378 |
| Total net sales | 10,475 | 8,714 | 9,801 | 12,062 | 41,052 |
| Growth, % | 12.8% | -8.4% | 8.0% | -3.1% | 1.8% |
| EBITDA | 1,802 | -737 | 1,838 | 301 | 3,204 |
| percentage of net sales | 17.2% | -8.5% | 18.8% | 2.5% | 7.8% |
| Order backlog | 12,943 | 14,009 | 21,134 | 22,269 | 70,355 |
| percentage of net sales | 124% | 161% | 216% | 185% | 171% |
| Research and product development expenses | 36 | 297 | 2,496 | 1,271 | 3,033 |
| percentage of net sales | 0% | 3% | 25% | 2% | 7% |
| Jan 1–Jun 30, 2023 | Digital Services | Business Solutions | Information and Case Management | Cloud, Data, Modern Work and Data Security | Total |
| EUR thousand | |||||
| SaaS net sales | 1,067 | 2,734 | 4,345 | 2,248 | 10,394 |
| License net sales | 81 | 239 | 557 | 401 | 1,279 |
| Project net sales | 3,574 | 3,106 | 2,158 | 5,194 | 14,032 |
| Service net sales | 4,565 | 3,431 | 2,017 | 4,599 | 14,612 |
| Total net sales | 9,286 | 9,510 | 9,077 | 12,443 | 40,317 |
| Growth, % | 12.8% | 6.5% | 26.3% | 30.5% | 18.9% |
| EBITDA | 1,509 | -36 | 1,783 | 996 | 4,252 |
| percentage of net sales | 16.2% | -0.4% | 19.6% | 8.0% | 10.5% |
| Order backlog | 31,421 | 11,107 | 20,366 | 14,357 | 77,250 |
| percentage of net sales | 338% | 117% | 224% | 115% | 192% |
| Research and product development expenses | 0 | 269 | 2,086 | 97 | 2,453 |
| percentage of net sales | 0% | 3% | 23% | 1% | 6% |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
25 (28)
Fair Values of Financial Assets and Liabilities
The table below shows the fair value and carrying amount of each item in financial assets and liabilities. These values correspond with the consolidated balance sheet values.
| EUR thousand | Jun 30, 2024 | Jun 30, 2023 | Dec 31, 2023 |
|---|---|---|---|
| Trade and other receivables | 17,176 | 16,735 | 18,449 |
| Cash and cash equivalents | 262 | 226 | 425 |
| Total | 17,437 | 16,961 | 18,873 |
| Loans from financial institutions | 3,974 | 7,508 | 6,325 |
| Lease liabilities | 2,301 | 3,845 | 3,291 |
| Trade and other payables: | |||
| Received advances | 3,327 | 2,977 | 1,703 |
| Trade payables | 1,686 | 1,437 | 2,074 |
| Other liabilities | 3,012 | 3,155 | 5,139 |
| Accrued expenses | 10,781 | 9,554 | 8,657 |
| Total | 25,081 | 28,475 | 27,188 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
26 (28)
The Group's commitments and contingent liabilities
| Jun 30, 2024 | Jun 30, 2023 | |
|---|---|---|
| EUR thousand | ||
| Collateral given for own commitments | ||
| Lease collateral | 188 | 125 |
| Mortgages on company assets | 16,350 | 17,250 |
| Bank guarantees | 326 | 326 |
| Other own liabilities | ||
| Lease and rent liabilities | ||
| Liabilities maturing in less than one year | 48 | 45 |
| Liabilities maturing in 1–5 years | 59 | 10 |
| Total | 107 | 118 |
| Other own liabilities total | 107 | 118 |
Other commitments include leasing and other leases as well as liabilities arising from license agreements,
to which the IFRS 16 standard has not been applied. Commitments
due to long-term service contracts have not been included.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
27 (28)
Largest shareholders
According to the share register maintained by Euroclear Finland Oy, the share ownership of the 20 largest Innofactor Plc shareholders at the end of the review period, on June 30, 2024, was as follows:
| Name | Number of shares | % of share capital | |
|---|---|---|---|
| 1. | Ensoo Sami (under control of) | 7,936,804 | 21.84% |
| Sami Ensoo | 5,763,044 | 15.86% | |
| Minor under guardianship | 724,588 | 1.99% | |
| Iiris Ensoo | 724,586 | 1.99% | |
| Minor under guardianship | 724,586 | 1.99% | |
| Ilmarinen Mutual Pension Insurance | 4.95% | ||
| 2. | Company | 1,800,000 | |
| 3. | R. Linturi Oyj (under control of) | 1,256,411 | 3.46% |
| R. Linturi Oyj | 489,107 | 1.35% | |
| Linturi Kaija Anneli | 430,000 | 1.18% | |
| Linturi Risto Erkki Olavi | 337,304 | 0.93% | |
| 4. | Hellen Stefan Andreas | 486,000 | 1.34% |
| 5. | Mäki Antti-Jussi | 459,236 | 1.26% |
| 6. | Ingman Finance Oy Ab | 450,000 | 1.24% |
| 7. | Muukkonen Teemu Heikki | 387,511 | 1.07% |
| 8. | Mandatum Life Insurance Company Limited | 376,377 | 1.04% |
| 9. | Laiho Rami Tapani | 230,480 | 0.63% |
| 10. | Kannisto Jaakko Mikael | 227,946 | 0.63% |
| 11. | Kukkonen Heikki-Harri | 213,606 | 0.59% |
| 12. | Järvenpää Janne-Olli | 213,079 | 0.59% |
| 13. | Tilman Tuomo Tapani | 209,028 | 0.58% |
| 14. | Varsio Jussi Ilari | 200,000 | 0.55% |
| 15. | Mäkinen Antti Vilho Juhani | 168,000 | 0.46% |
| 16. | Ärje Matias Juhanpoika | 155,800 | 0.43% |
| 17. | Pesonen Tuomo Sakari | 146,010 | 0.40% |
| 18. | Lindén Anna Sofia | 144,665 | 0.40% |
| 19. | Saarnio Mikko Markus | 138,000 | 0.38% |
| 20. | Heikkinen Janne Mikael | 136,543 | 0.38% |
| Total | 15,335,496 | 42.20% |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
HALF-YEARLY REPORT Q2/2024
28 (28)
Formulas for calculating the key figures
Operating margin (EBITDA):
Operating profit/loss - Depreciations
Order backlog:
Received license and project orders - realized net sales related to the order + net sales from recurring agreements for the next 12 months (does not include expected purchase activity not based on agreement, so called Run Rate)
Framework agreement backlog:
The management's estimate of future net sales to be derived from framework agreements concluded by the company. The net sales are transferred to the order backlog when a binding order is received from the customer.
Net sales/employee:
Net sales
Active personnel on average during the review period
Percentage of return on equity:
Profit/loss for the financial period
Shareholders' equity
Percentage of return on investment:
Profit or loss before taxes + Interest and other financial expenses
Shareholders' equity + Interest bearing financial liabilities
Net gearing:
Interest bearing liabilities - Cash funds
Shareholders' equity
Equity ratio, (%):
Shareholders' equity
Balance sheet total - Received advances
Result/share:
Profit before taxes attributable to equity holders of the parent - Taxes
Average number of shares on the financial period adjusted after the share issue
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000