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Innofactor Plc Interim / Quarterly Report 2024
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Interim / Quarterly Report
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INNOFACTOR
INTERIM REPORT Q1/2024
1 (25)
Innofactor Plc Interim Report April 23, 2024, at 9:00 Finnish time
Innofactor Plc's Interim Report for January 1–March 31, 2024 (IFRS)
Innofactor increased its net sales in the first quarter of 2024 in spite of the continued challenging market situation
January–March 2024 in brief:
- Net sales were approximately EUR 21.2 million (2023: 20.2), representing an increase of 4.8%
- The operating margin was approximately EUR 2.6 million (2023: 2.5), which shows an increase of 4.6%
- Operating profit was EUR 1.8 million (2023: 1.7), representing an increase of 7.3%
- The order backlog at the end of the review period was EUR 68.8 million (2023: 76.3), representing a decrease of 9.8%
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
2 (25)
Key figures of the group, IFRS
| Jan 1–Mar 31, 2024 | Jan 1–Mar 31, 2023 | Change | |
|---|---|---|---|
| Net sales, EUR thousand | 21,186 | 20,223 | 4.8% |
| Growth of net sales | 4.8% | 19.2% | |
| Operating result before depreciation and amortization (EBITDA), EUR thousand | 2,601 | 2,487 | 4.6% |
| percentage of net sales | 12.3% | 12.3% | |
| Operating profit/loss (EBIT), EUR thousand | 1,836 | 1,712 | 7.3% |
| percentage of net sales | 8.7% | 8.5% | |
| Earnings before taxes, EUR thousand | 1,743 | 1,311 | 33.0% |
| percentage of net sales | 8.2% | 6.5% | |
| Earnings, EUR thousand | 1,378 | 1,036 | 32.9% |
| percentage of net sales | 6.5% | 5.1% | |
| Order backlog | 68,819 | 76,293 | -9.8% |
| Net gearing | 19.2% | 33.1% | -13.9% |
| Net gearing without IFRS 16 | 8.8% | 16.4% | -7.5% |
| Equity ratio | 53.9% | 47.3% | 6.7% |
| Equity ratio without IFRS 16 | 57.1% | 51.3% | 5.8% |
| Active personnel on average during the review period* | 579 | 567 | 2.1% |
| Active personnel at the end of the review period* | 583 | 572 | 1.9% |
| Earnings per share (EUR) | 0.04 | 0.03 | 32.9% |
*) 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
INTERIM REPORT Q1/2024
3 (25)
CEO Sami Ensio’s review: We continue to adapt our operations due to the continued challenging market situation
Net sales in the first quarter of 2024 amounted to EUR 21.2 million, representing year-on-year growth of 4.8 percent. The operating margin (EBITDA) increased by 4.6 percent year-on-year to EUR 2.6 million (12.3 percent of net sales), and was positive in Finland and Norway. The order backlog at the end of the quarter amounted to EUR 68.8 million, representing a year-on-year decrease of 9.8 percent.
In accordance with our previous assessment, the market situation remained challenging in the first quarter of 2024. New sales were challenging during the first quarter, but we were successful in our sales activities particularly with regard to the extensions of existing customer accounts. Our invoicing rate fell short of our target due to the challenging demand situation.
We are confident that the market conditions will improve and we want to maintain our competitiveness when demand 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, and continue to reduce, the use of subcontracting, especially in Finland and Sweden. In the second quarter, we will reduce 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.
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, 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
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
4 (25)
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 quarter amounted to EUR 21.2 million (2023: 20.2), which shows an increase of 4.8 percent compared to the previous year. Achieving the net sales growth target is challenging at present due to the prevailing weak market situation. Innofactor aims to continue to take measures to support stronger net sales growth going forward.
The operating margin (EBITDA) was 12.3 percent of net sales (2023: 12.3%). In the period under review, the operating margin increased by 4.6 percent year-on-year. Profitability has remained at the previous level, and attention and efforts by the management are needed to reach the long-term target of approximately 20 percent.
Innofactor's operating cash flow for the review period January 1–March 31, 2024, was EUR 4.4 million (2023 Q1: EUR 3.9 million) and the equity ratio at the end of the review period was 53.9 percent (2023: 47.3 percent). Innofactor's high equity ratio and strong operating cash flow supports the company's strategic goal of profitable growth and securing a solid financial standing in all situations.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
5 (25)
Innofactor's net sales increased in spite of the challenging market conditions
Innofactor's net sales for the period January 1–March 31, 2024, amounted to EUR 21,186 thousand (2023: 20,223), which shows an increase of 4.8 percent.
Net sales per active employee amounted to approximately EUR 36.6 thousand (2023: 35.7), which shows an increase of 2.6 percent. This was partly due to the reduction of the use of subcontracting. We focus on continuing to increase our net sales per active employee.
Innofactor's business operations were focused on Finland, Sweden, Denmark and Norway. During the period January 1–March 31, 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–March 31, 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–March 31, 2024, were derived from the following sources:
- Licenses: 3 percent, including all non-recurring fees received for software
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
6 (25)
- SaaS: 26 percent, including recurring income from SaaS, cloud and hosting services and from software maintenance
- Services: 38 percent, including specialist work based on recurring service contracts, such as smaller customer-specific changes and the further development of IT systems
- Projects: 33 percent, including 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–March 31, 2024.
Innofactor’s operating margin remained on a par with the comparison period
Innofactor’s operating margin (EBITDA) for January 1–March 31, 2024, was EUR 2,601 thousand (2023: 2,487), which shows an increase of 4.6 percent. EBITDA represented 12.3 percent of net sales (2023: 12.3%). Innofactor’s operating margin was positive in Finland and Norway, but negative in Sweden and Denmark.
Innofactor’s operating profit for the period January 1–March 31, 2024, amounted to EUR 1,836 thousand (2023: 1,712), which shows an increase of 7.3 percent. Operating profit was 8.7 percent of net sales (2023: 8.5%).
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
INTERIM REPORT Q1/2024
7 (25)
Innofactor's order backlog weakened due to the challenging market situation, the framework agreement backlog grew
Innofactor's order backlog at the end of the review period was EUR 68,819 thousand (2023: 76,293), representing a decrease of 9.8 percent. The decrease in the order backlog is due to the weak market situation, in which generating new sales has been challenging.
At the end of the review period, the value of the framework agreement backlog was EUR 30,527 thousand (2023: 26,104), showing an increase of 16.9 percent.
Innofactor's operating cash flow in the review period continued to be strong
Innofactor's balance sheet total at the end of the review period was EUR 53,897 thousand (2023: 59,105). The Group's liquid assets totaled EUR 1,870 thousand (2023: 5,493), consisting entirely of cash funds.
Operating cash flow for the review period January 1–March 31, 2024, was EUR 4,442 thousand (2023: 3,882). Cash flow from investing activities was EUR -165 thousand (2023: -98).
The equity ratio at the end of the review period was 53.9 percent (2023: 47.3%) and net gearing was 19.2 percent (2023: 33.1%).
At the end of the review period, the company had EUR 2,707 thousand in current interest-bearing liabilities to financial institutions (2023: 5,676) and EUR 1,353 thousand in non-current interest-bearing liabilities to financial institutions (2023: 4,100). The total amount of interest-bearing liabilities to financial institutions was EUR 4,060 thousand (2023: 9,776). The company had IFRS 16 lease liabilities amounting to EUR 2,756 thousand (2023: 4,370) of which EUR 1,880 thousand in current leases (2023: 2,098) and EUR 876 thousand in non-current leases (2023: 2,272). The total amount of interest-bearing liabilities was EUR 6,816 thousand (2023: 14,146).
The return on invested capital for the rolling four quarters from January 1 to March 31, 2024 increased from the previous year and was 18.3 percent (2023: 15.7%). The return on equity for the
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
8 (25)
rolling four quarters from January 1 to March 31, 2024 increased from the previous year and was 15.0 percent (2023: 14.0%).
The non-current assets on Innofactor’s balance sheet at the end of the review period totaled EUR 34,367 thousand.
Innofactor’s gross investments in tangible and intangible assets during the review period of January 1–March 31, 2024, came to EUR 171 thousand (2023: 59), 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–March 31, 2024, amounted to approximately EUR 1,448 thousand (2023: 1,201), representing 6.8 percent of net sales (2023: 5.9%).
Innofactor’s headcount remained at the level of the preceding quarter
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 January 1–March 31, 2024, was 579 (2023: 567), which shows an increase of 2.1 percent.
At the end of the review period, the number of active personnel was 583 (2023: 572), which shows an increase of 1.9 percent.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
9 (25)
At the end of the review period, the average age of the personnel was 42.1 years (2023: 42.5). Women accounted for 26 percent (2023: 26%) of the personnel. Men accounted for 74 percent (2023: 74%) of the personnel.
Digital Services and Information and Case Management maintained their strong growth and profitability
During the period January 1–March 31, 2024, the net sales of the Digital Solutions solution area amounted to EUR 5,624 thousand (2023: 4,697), showing growth of 19.7 percent. The solution area’s operating margin for the period January 1–March 31, 2024, was EUR 1,159 thousand (2023: 830), representing 20.6 percent of net sales (2023: 17.7%). The solution area’s order backlog at the end of the review period amounted to EUR 15,043 thousand (2023: 29,015). We transferred part of the order backlog to the framework agreement backlog at the end of 2023.
During the period January 1–March 31, 2024, the net sales of the Business Solutions solution area amounted to EUR 4,445 thousand (2023: 4,832), down 8.0 percent. The solution area’s operating margin for the period January 1–March 31, 2024, was EUR -28 thousand (2023: 71), representing -0.6 percent of net sales (2023: 1.5%). The solution area’s order backlog at the end of the review period amounted to EUR 13,766 thousand (2023: 10,257).
During the period January 1–March 31, 2024, the net sales of the Information and Case Management* solution area amounted to EUR 4,799 thousand (2023: 4,159), showing growth of 15.4 percent. The solution area’s operating margin for the period January 1–March 31, 2024, was EUR 1,011 thousand (2023: 751), representing 21.1 percent of net sales (2023: 18.1%). The solution area’s order backlog at the end of the review period amounted to EUR 22,779 thousand (2023: 18,806).
During the period January 1–March 31, 2024, the net sales of the Cloud, Data, Modern Work and Data Security* solution area amounted to EUR 6,317 thousand (2023: 6,534), down 3.3 percent. The solution area’s operating margin for the period January 1–March 31, 2024, was EUR 460 thousand (2023: 837), representing 7.3 percent of net sales (2023: 12.8%). The solution area’s order backlog at the end of the review period amounted to EUR 17,231 thousand (2023: 13,257). We transferred part of the order backlog to the framework agreement backlog at the end of 2023.
*) 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
There were no other significant events during the review period.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
10 (25)
Share and 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 January 1–March 31, 2024, the highest price of the company’s share was EUR 1.42 (2023: 1.34), the lowest price was EUR 1.12 (2023: 1.05) and the average price was EUR 1.28 (2023: 1.20).
The closing price for the review period on March 31, 2024, was EUR 1.32 (2023: 1.22).
In public trading during the period of January 1–March 31, 2024, a total of 2,163,766 shares were traded (2023: 2,301,471 shares), which corresponds to 6.0 percent (2023: 6.2%) of the average number of shares in the said period. During the period January 1–March 31, 2024, the average number of shares was 36,343,691 (2023: 37,388,225). The share trading volume decreased by 6.0 percent when compared to the corresponding period in 2023.
The market value of the share capital at the closing price of EUR 1.32 on March 31, 2024, was EUR 47,974 thousand (2023: 45,763), which shows an increase of 4.8 percent.
On March 31, 2024, the company had a total of 11,761 shareholders (2023: 11,838), including nominee-registered shares.
On March 31, 2024, the company held 600,000 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.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
11 (25)
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.
- 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.
Management of the company
Innofactor Plc complies with the recommendations of the Corporate Governance Code 2020 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 14 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 monthly to the company. The company does not have any other major related party transactions.
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 significant changes in market outlook and business environment 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
INTERIM REPORT Q1/2024
12 (25)
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 significant changes in Innofactor's short-term risks and uncertainty factors during the review period nor can any other significant changes be seen.
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
Innofactor had no significant events after the review period.
Espoo, April 22, 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
INTERIM REPORT Q1/2024
13 (25)
Briefings concerning the Interim Report for January 1–March 31, 2024
Innofactor will publish its Interim Report for January–March 2024 on Tuesday, April 23, 2024, at approximately 9:00 Finnish time.
A briefing in Finnish concerning the Interim 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
INTERIM REPORT Q1/2024
14 (25)
Financial statement summary and notes January 1–March 31, 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 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.
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
INTERIM REPORT Q1/2024
15 (25)
Comprehensive consolidated profit and loss statement and balance sheet, IFRS
Comprehensive consolidated profit and loss statement, IFRS
| Jan 1–Mar 31, | Jan 1–Mar 31, | |
|---|---|---|
| EUR thousand | 2024 | 2023 |
| Net sales | 21,186 | 20,223 |
| Other operating income | 25 | 19 |
| Materials and services (–) | -3,633 | -3,275 |
| Employee benefit expenses (–) | -13,324 | -12,776 |
| Depreciation (–) | -765 | -775 |
| Other operating expenses (–) | -1,653 | -1,704 |
| Operating profit/loss | 1,836 | 1,712 |
| Financial income | 43 | 42 |
| Financial expenses (–) | -135 | -411 |
| Profit/loss before taxes | 1,743 | 1,311 |
| Income taxes | -366 | -274 |
| Profit/loss for the financial period | 1,378 | 1,036 |
| Distribution of the result | ||
| To shareholders of the parent company | 1,378 | 1,036 |
| To non-controlling interests | 0 | 0 |
| Other comprehensive income | ||
| Items that may be later recognized | ||
| in profit or loss: | ||
| Translation differences | -111 | 87 |
| Total comprehensive income | 1,266 | 1,124 |
| Distribution of the comprehensive income | ||
| To shareholders of the parent company | 1,266 | 1,124 |
| To non-controlling interests | 0 | 0 |
| Earnings per share calculated from the profit attributable to equity holders of the parent: | ||
| basic earnings per share (EUR) | 0.0377 | 0.0283 |
| diluted earnings per share (EUR) | 0.0377 | 0.0283 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
16 (25)
Consolidated balance sheet, IFRS
ASSETS
| EUR thousand | Mar 31, 2024 | Mar 31, 2023 | Dec 31, 2023 |
|---|---|---|---|
| Non-current assets | |||
| Tangible Assets | 1,052 | 1,006 | 1,080 |
| Right-of-use assets | 2,648 | 4,260 | 3,177 |
| Goodwill | 26,606 | 26,831 | 26,835 |
| Other intangible assets | 1,852 | 2,296 | 1,929 |
| Shares and holdings | 98 | 76 | 98 |
| Receivables | 44 | 108 | 44 |
| Deferred tax assets | 2,067 | 3,782 | 2,415 |
| Non-current assets | 34,367 | 38,358 | 35,578 |
| Current assets | |||
| Trade and other receivables | 17,661 | 15,254 | 18,449 |
| Cash and cash equivalents | 1,870 | 5,493 | 425 |
| Current assets | 19,530 | 20,747 | 18,873 |
| TOTAL ASSETS | 53,897 | 59,105 | 54,451 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
17 (25)
SHAREHOLDERS' EQUITY AND LIABILITIES
| Mar 31, 2024 | Mar 31, 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 | 15,069 | 17,247 | 13,549 |
| Retained earnings | 11,511 | 8,365 | 10,133 |
| Translation differences | -2,062 | -1,681 | -1,950 |
| Equity attributable to the shareholders of the parent company | 26,749 | 26,162 | 25,483 |
| Non-controlling interest | 0 | 0 | 0 |
| Total shareholders' equity | 26,749 | 26,162 | 25,483 |
| Non-current liabilities | |||
| Loans from financial institutions | 1,353 | 4,100 | 1,770 |
| Lease liabilities | 876 | 2,272 | 1,295 |
| Deferred tax liabilities | 1,768 | 1,839 | 1,779 |
| Other non-current liabilities | 0 | 0 | 0 |
| Total non-current liabilities | 3,997 | 8,212 | 4,845 |
| Current liabilities | |||
| Loans from financial institutions | 2,707 | 5,676 | 4,555 |
| Lease liabilities | 1,880 | 2,098 | 1,996 |
| Trade and other payables | 18,564 | 16,958 | 17,573 |
| Current liabilities total | 23,150 | 24,732 | 24,123 |
| Total liabilities | 27,148 | 32,943 | 28,968 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 53,897 | 59,105 | 54,451 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
18 (25)
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 difference | 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 | 1 378 | 1 378 | ||||||
| Exchange differences | -111 | -111 | ||||||
| Total comprehensive income | 1 377 | -111 | 1 266 | |||||
| Repayment of capital | 0 | |||||||
| Shareholders' equity Mar 31, 2024 | 2 100 | 72 | 59 | 15 069 | -2 119 | 13 629 | -2 062 | 26 749 |
| EUR thousand | Share capital | Share premium reserve | Reserve fund | Fund for invested unrestricted equity | Own shares | Retained earnings | Exchange difference | Total shareholders' equity |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Shareholders' equity Jan 1, 2023 | 2 100 | 72 | 59 | 20 174 | -1 146 | 5 496 | -1 351 | 25 404 |
| Comprehensive income | ||||||||
| Result for the financial period | 3438 | 3438 | ||||||
| Exchange differences | -49 | -49 | ||||||
| Total comprehensive income | 3 437 | -49 | 3 388 | |||||
| Repayment of capital | -2 177 | -2 177 | ||||||
| Purchase of own shares | -527 | -527 | ||||||
| Shareholders' equity Mar 31, 2023 | 2 100 | 72 | 59 | 15 069 | -2 119 | 12 252 | -1 950 | 25 483 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
19 (25)
Consolidated cash flow statement, IFRS
| Jan 1–Mar 31, | Jan 1–Mar 31, | |
|---|---|---|
| EUR thousand | 2024 | 2023 |
| Cash flow from operating activities | ||
| Profit before taxes | 1,743 | 1,311 |
| Adjustments: | ||
| Depreciation | 765 | 775 |
| Other transactions with no related cash flow: | 291 | 336 |
| Operating profit before change in working capital | 2,800 | 2,422 |
| Change in trade and other receivables (+/-) | 783 | -707 |
| Change in trade and other payables (+/-) | 991 | 2,142 |
| Change in working capital | 1,774 | 1,436 |
| Cash flow from operating activities before financing and income taxes paid | 4,573 | 3,858 |
| Interest received | 42 | -10 |
| Interest paid (-) | -40 | 34 |
| Taxes paid | -133 | 0 |
| Net cash flow from operating activities | 4,442 | 3,882 |
| Investment cash flow | ||
| Acquisition of subsidiaries | 0 | 0 |
| Purchase of shares in associated companies | 0 | 0 |
| Investments in intangible and tangible assets (-) | -171 | -59 |
| Change in loan receivables | 5 | -39 |
| Net cash flow from investments | -165 | -98 |
| Cash flow from financing | ||
| Loans withdrawn | 0 | 0 |
| Loans paid | -2,265 | 374 |
| Lease liability payments | -567 | -568 |
| Dividend distribution/repayment of capital | 0 | 0 |
| Payment of equity loans | 0 | 0 |
| Purchase of own shares | 0 | -389 |
| Transfer of own shares | 0 | 0 |
| Net cash flow from financing | -2,832 | -583 |
| Change in cash and cash equivalents (+/-) | 1,445 | 3,202 |
| Cash and cash equivalents, opening balance | 425 | 1,956 |
| Cash and cash equivalents, closing balance | 1,870 | 5,493 |
| 1,445 | 3,537 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
20 (25)
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 | 20,223 | 20,095 | 18,015 | 21,930 | |||
| Other operating income | 25 | 19 | 28 | 41 | 52 | |||
| Materials (–) | -3,633 | -3,275 | -3,256 | -3,566 | -3,411 | |||
| Employee benefit expenses (–) | -13,324 | -12,776 | -13,140 | -11,101 | -13,767 | |||
| Depreciation (–) | -765 | -775 | -781 | -761 | -948 | |||
| Other operating expenses (–) | -1,653 | -1,704 | -1,962 | -1,419 | -1,925 | |||
| Operating profit/loss | 1,836 | 1,712 | 984 | 1,209 | 1,209 | |||
| Financial income | 43 | 10 | 16 | 91 | 0 | |||
| Financial expenses (–) | -135 | -411 | -187 | 128 | -308 | |||
| Profit/loss before taxes | 1,743 | 1,311 | 813 | 1,428 | 1,428 | |||
| Income taxes | -366 | -274 | -354 | -363 | -745 | |||
| Profit/loss for the financial period | 1,378 | 1,036 | 459 | 1,064 | 1,064 | |||
| EBITDA | 2,601 | 2,487 | 1,765 | 1,970 | 2,879 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
21 (25)
Key figures for the solution areas
| Jan 1–Mar 31, 2024
EUR thousand | Digital Services | Business Solutions | Information and Case Management | Cloud, Data, Modern Work and Data Security | Total |
| --- | --- | --- | --- | --- | --- |
| SaaS net sales | 462 | 1,302 | 2,211 | 1,510 | 5,485 |
| License net sales | 25 | 94 | 229 | 253 | 601 |
| Project net sales | 2,135 | 1,528 | 1,566 | 1,828 | 7,057 |
| Service net sales | 3,002 | 1,521 | 793 | 2,727 | 8,042 |
| Total net sales | 5,624 | 4,445 | 4,799 | 6,317 | 21,186 |
| Growth, % | 19.7% | -8.0% | 15.4% | -3.3% | 4.8% |
| EBITDA | 1,159 | -28 | 1,011 | 460 | 2,601 |
| percentage of net sales | 20.6% | -0.6% | 21.1% | 7.3% | 12.3% |
| Order backlog | 15,043 | 13,766 | 22,779 | 17,231 | 68,819 |
| percentage of net sales | 267% | 310% | 475% | 273% | 325% |
| Research and product development expenses | | 144 | 1,200 | 103 | 1,448 |
| percentage of net sales | 0% | 3% | 25% | 2% | 7% |
| Jan 1–Mar 31, 2023
EUR thousand | Digital Services | Business Solutions | Information and Case Management | Cloud, Data, Modern Work and Data Security | Total |
| --- | --- | --- | --- | --- | --- |
| SaaS net sales | 426 | 1,404 | 2,075 | 1,046 | 4,952 |
| License net sales | 36 | 48 | 234 | 227 | 545 |
| Project net sales | 1,792 | 1,526 | 964 | 2,831 | 7,113 |
| Service net sales | 2,443 | 1,854 | 885 | 2,430 | 7,613 |
| Total net sales | 4,697 | 4,832 | 4,159 | 6,534 | 20,222 |
| Growth, % | 10.6% | 11.6% | 20.0% | 32.8% | 19.2% |
| EBITDA | 830 | 71 | 751 | 837 | 2,488 |
| percentage of net sales | 17.7% | 1.5% | 18.1% | 12.8% | 12.3% |
| Order backlog | 29,015 | 10,257 | 18,806 | 13,257 | 71,336 |
| percentage of net sales | 618% | 212% | 452% | 203% | 353% |
| Research and product development expenses | | 127 | 985 | 89 | 1,202 |
| percentage of net sales | 0% | 3% | 24% | 1% | 6% |
*) 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.
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
22 (25)
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 | Mar 31, 2024 | Mar 31, 2023 | Dec 31, 2023 |
|---|---|---|---|
| Trade and other receivables | 17,661 | 15,254 | 18,449 |
| Cash and cash equivalents | 1,870 | 5,493 | 425 |
| Total | 19,530 | 20,747 | 18,873 |
| Loans from financial institutions | 4,060 | 9,776 | 6,325 |
| Lease liabilities | 2,756 | 4,370 | 3,291 |
| Trade and other payables: | |||
| Received advances | 4,417 | 3,739 | 1,703 |
| Trade payables | 2,145 | 1,703 | 2,074 |
| Other liabilities | 2,754 | 3,260 | 5,139 |
| Accrued expenses | 9,248 | 8,256 | 8,657 |
| Interest rate swap agreements, not in hedge accounting * | |||
| Total | 25,380 | 31,104 | 27,188 |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
23 (25)
The Group's commitments and contingent liabilities
| EUR thousand | Mar 31, 2024 | Mar 31, 2023 |
|---|---|---|
| Collateral given for own commitments | ||
| Lease collateral | 163 | 156 |
| Mortgages on company assets | 16,650 | 16,950 |
| Bank guarantees | 326 | 309 |
| Other own liabilities | ||
| Lease and rent liabilities | ||
| Liabilities maturing in less than one year | 45 | 128 |
| Liabilities maturing in 1–5 years | 63 | 112 |
| Total | 108 | 240 |
| Other own liabilities total | 108 | 240 |
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
INTERIM REPORT Q1/2024
24 (25)
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 March 31, 2024, was as follows:
| Name | Number of shares | % of share capital | |
|---|---|---|---|
| 1. | Ensoo Sami (under control of) | 7,925,397 | 21.81% |
| Sami Ensoo | 5,751,637 | 15.83% | |
| Minor under guardianship | 724,588 | 1.99% | |
| Iiris Ensoo | 724,586 | 1.99% | |
| Minor under guardianship | 724,586 | 1.99% | |
| 2. | Ilmarinen Mutual Pension Insurance Company | 1,800,000 | 4.95% |
| 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 | 460,000 | 1.27% |
| 6. | Ingman Finance Oy Ab | 450,000 | 1.24% |
| 7. | Muukkonen Teemu Heikki | 402,857 | 1.11% |
| 8. | Mandatum Life Insurance Company Limited | 292,583 | 0.81% |
| 9. | Tilman Tuomo Tapani | 287,538 | 0.77% |
| 10. | Laiho Rami Tapani | 246,480 | 0.68% |
| 11. | Kannisto Jaakko Mikael | 226,533 | 0.62% |
| 12. | Kukkonen Heikki-Harri | 213,606 | 0.59% |
| 13. | Järvenpää Janne-Olli | 213,079 | 0.59% |
| 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 | 139,862 | 0.38% |
| 18. | Saarnio Mikko Markus | 138,000 | 0.38% |
| 19. | Heikkinen Janne Mikael | 136,543 | 0.38% |
| 20. | Muurinen Hannu Olavi | 125,750 | 0.35% |
| Total | 15,315,439 | 42.14% |
Innofactor Oyj
Keilaranta 9
FI-02150 Espoo
[email protected]
http://www.innofactor.com
tel. +358 10 272 9000
INNOFACTOR
INTERIM REPORT Q1/2024
25 (25)
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