ADMICOM OYJ HALF-YEAR FINANCIAL REPORT: Growth continued in Q2 despite lower annual adjustment fees and EBITDA improved to 38.4%

Unofficial translation of the company release on July 9, 2024 at 9 AM EEST. In case the document differs from the original, the Finnish version prevails.

Welcome to join an investor call on Admicom's Q2 results on July 9, 2024 at 10.00 EEST. You can register for the event via this link: Interim Report Q2 2024 (videosync.fi).

Figures in parenthesis refer to the comparable period in the previous year, unless otherwise stated.

April - June 2024 (Q2) summary:

• Annual recurring revenue (ARR)¹⁾ increased by 6.7% to EUR 33.7 million (31.6).
• Recurring revenue²⁾ increased by 1.7% and was EUR 9.0 million (8.8).
• Revenue increased by 0.7% and was EUR 9.5 million (9.4).
• Adjusted EBITDA³⁾ was EUR 3.6 million (3.6), or 38.4% of revenue (38.1%). There were no adjustments to EBITDA in the second quarter.
• Adjusted EBIT³⁾ was EUR 2.7 million (2.8), or 28.4% of revenue (30.1%).
• Earnings per share were EUR 0.38 (0.42).
• Admicom signed a contract with a large Swedish construction company operating in the Nordic countries for Admicom's project management solution package for its group-wide use.

January - June 2024 (H1) summary:

• Annual recurring revenue (ARR)¹⁾ increased by 6.7% to EUR 33.7 million (31.6).
• Recurring revenue²⁾ increased by 4.3% and was EUR 17.0 million (16.3).
• Revenue increased by 2.6 % and was EUR 18.1 million (17.6).
• Adjusted EBITDA³⁾ was EUR 6.3 million (6.6), 34.8% of revenue (37.4%). Adjustments to EBITDA were EUR 81 thousand.
• Adjusted EBIT³⁾ was EUR 4.4 million (5.1), or 24.3% of revenue (28.9%).
• Earnings per share were EUR 0.60 (0.74).
• Admicom strengthened its forerunner position in construction technology solutions by acquiring asset management and IoT-solution company Trackinno Oy. Trackinno has been consolidated in the Group financials from the acquisition date 19 Jan 2024. Trackinno generated EUR 262 thousand to Group’s revenue and EUR 585 thousand to Group’s ARR.
• Helena Marjokorpi (MSc) was appointed as Head of People Operations and a member of Admicom Oyj’s Leadership Team as of 1 January, 2024.

_{1) Annual Recurring Revenue = Monthly recurring revenue (MRR) at the end of the period multiplied by 12 and added with revenues from annual adjustment fees and financial statement fees during last twelve months.}

_{2) Recurring Revenue = Monthly recurring revenue added with revenues from annual adjustment fees and financial statement fees.}

_{3) Admicom reports Adjusted EBITDA and EBIT as alternative performance measures to improve comparability between periods. Adjustments are material items outside the normal course of business. They can include costs related to mergers and acquisitions, gains and losses from material divestments, restructuring costs, impairment losses and other unusual, one-off items.}

 

Key figures 

ADMICOM GROUP (EUR 1,000 unless otherwise stated)	4-6/2024	4-6/2023	Change-%	1-6/2024	1-6/2023	Change-%	2023
ARR, MEUR	33.7	31.6	6.7%	33.7	31.6	6.7%	32.5
Revenue	9 479	9 417	0.7%	18 084	17 625	2.6%	34 321
Recurring revenue	8 955	8 808	1.7%	17 009	16 304	4.3%	31 936
Adjusted EBITDA	3 640	3 586	1.5%	6 297	6 595	-4.5%	12 800
% of revenue	38.4%	38.1%		34.8%	37.4%		37.3%
EBITDA	3 640	3 586	1.5%	6 217	6 595	-5.7%	12 800
% of revenue	38.4%	38.1%		34.4%	37.4%		37.3%
Adjusted EBIT	2 688	2 836	-5.2%	4 402	5 099	-13.7%	8 823
% of revenue	28.4%	30.1%		24.3%	28.9%		25.7%
EBIT	2 688	2 836	-5.2%	4 321	5 099	-15.3%	8 823
% of revenue	28.4%	30.1%		23.9%	28.9%		25.7%
Profit for the period,	1 918	2 073	-7.4%	2 989	3 668	-18.5%	6 317
% of revenue	20.2%	22.0%		16.5%	20.8%		18.4%
Earnings per share, EPS, EUR	0.38	0.42	-7.4%	0.60	0.74	-18.5%	1.27
Total balance sheet1)	39 877	36 693		39 877	36 693		38 678
Employees at the end of the period	288	275		288	275		271
Return on equity, %	27.5%	32.6%		21.6%	26.3%		21.7%
Return on investment, %	33.7%	33.2%		27.1%	27.8%		23.2%
Equity ratio, %1)	72.6%	73.0%		72.6%	73.0%		76.3%
Net gearing, %	-23.5%	-4.4%		-23.5%	-4.4%		-19.9%
Number of shares at the end of the period, 1 000 shares	4 986	4 986		4 986	4 986		4 986

_{1) Total balance sheet for reporting period and comparison periods has been adjusted with unpaid deferred revenue according to Finnish Accounting Board statement (KILA 2056/13.2.2024). The amount of adjustment is EUR 1.9 million on 30 June 2023 and EUR 1.9 million on 31 December 2023.}

CEO Petri Kairinen:

The second quarter of 2024 has been a period of cautious optimism and continued strategic progress for Admicom. The construction sector in Finland remains weak, particularly in residential new builds. However, there are first encouraging signs of recovery in other construction sectors. We remain hopeful that this positive momentum will extend across the broader market in the coming months. Our focused execution of the growth strategy and the resilience of our business model have enabled us to navigate this landscape effectively.

Despite the significant headwind posed by lower annual adjustment fee revenues (EUR -0.5 million during Q2) based on customers’ revenue volumes from 2023, we managed to achieve growth during Q2. New sales bookings have remained at reasonable levels despite the challenging market conditions. We are happy to report a steady amount of new logos acquired in Q2 2024, with increasing amount of customers opting for multiple products from our suite. However, the ERP target market in mid-to-large customers has shown hesitancy in making substantial investment decisions, resulting in clearly smaller deal sizes. A significant highlight of Q2 is the signing of a large agreement with a Swedish headquartered Nordic construction company. They will internationally adopt our entire project management suite, marking a potential new route for organic internationalization through their subcontracting network. This partnership not only expands our footprint but also validates the competitiveness and value of our integrated solutions.

While the market conditions continues to impact the amount of insolvencies leading to churn, the number of customer based terminations has a downward trend. Additionally, the net effect of upsell and downsell is improving. The mission-critical nature of our products continues to provide stability in our customer base even during these turbulent times.

Our financial performance remains robust with EBITDA margin improving to 38.4%, supported by disciplined cost management while making strategic investments in our product suite. This commitment to product development and innovation continues to bear fruit. The modern, customizable dashboard for Ultima customers launched in April is a key milestone in improving user experience and integration across our product suite. Additionally, the rollout of our first AI support within Vision application and plans for further AI innovations are set to provide significant competitive advantages.

Aligned with our purpose of “building a sustainable future together”, we have during the quarter started our sustainability strategy work. This work will, in addition to our own business and reporting, also impact our product offering and help our customers in their sustainability work and as an example reduction of carbon emissions.

We are preparing for the next strategic phase of Accelerated Growth to start in 2025. Our focus on enhancing product integration, improving user experience, and leveraging AI technologies will continue to drive our competitive edge. Short term actions are focused on increasing ARR both via sales and churn prevention. In terms of acquisitions, we are constantly exploring opportunities that align with our strategic goals, both domestically and internationally. We are confident on our full year financial guidance in relation to the growth of ARR and revenue and the level of adjusted EBITDA. However, during Q3 the growth is not expected yet to accelerate and in the profitability we do not expect to exceed the relatively high level of last year as the lower adjustment fees continue to weigh down the revenue growth.

Outlook

Financial Guidance 2024

Financial guidance given in relation to financial statements release on January 19, 2024 remains unchanged.

Annual Recurring Revenue (ARR) is expected to grow in 2024 by 5-10%. ARR in 2023 was EUR 32.5 million.

Total revenue is expected to grow from 2023 level. Total revenue in 2023 was EUR 34.3 million.

Adjusted EBITDA is expected to be 32-37% of revenue.

Themes affecting revenue and profitability

The company sees significant growth opportunities in its software solutions as well as upsell and cross-selling to existing customers, but the economic downturn in the construction industry causes uncertainty in the development of new sales in 2024 and keeps customer churn high especially due to insolvencies. The company continues to transfer capability from external software development services to its internal use, which also reduces revenues.

The pricing of Admicom Ultima product (formerly Adminet) and accounting services is based on a monthly fee determined by the customer's revenue. Invoicing is reviewed when the customer's actual revenue of the financial year deviates from the forecast. This annual adjustment fee item is typically invoiced five months after the end of the customer's financial year. Due to the decreased customer revenues, we estimate that annual adjustment fees will be approximately EUR 1.5 million in 2024 (EUR 2.3 million in 2023). This change will weaken the company's growth and relative profitability.

Adjustments for adjusted EBITDA are material items outside the normal course of business related to e.g. acquisitions or other one-off transactions.

Financial development

April - June 2024 (Q2)

Revenue for the second quarter increased by 0.7% to EUR 9.5 (9.4) million.

Revenue for the period included EUR 1.1 million (1.6) of invoiced annual adjustment fees based on customers’ 2023 revenue . The decrease in annual adjustment fees from the comparison period was EUR 0.5 million, and had a negative impact of 5.0 percentage points on the revenue growth.

The Group’s adjusted EBITDA and EBITDA grew by 1.5% year-on-year and were EUR 3.6 million (3.6), or 38.4% of revenue (38.1%). EBITDA for the period did not include items affecting comparability. Adjusted EBITDA improved slightly due to revenue growth, cost management and capitalized development costs.

The Group’s adjusted EBIT and EBIT for the period decreased 5.2% and were EUR 2.7 million (2.8), or 28.4% of revenue (30.1%). The decrease in EBIT was driven by the increase in the amortization of goodwill (0,2m) due to change in the amortization period of goodwill generated in Kotopro acquisition and the acquisition of Trackinno.  Profit for the second quarter was EUR 1.9 (2.1) million.

The Group's cash flow from operating activities before financial items and taxes decreased by EUR 0.1 million, and was EUR 4.2 million (4.3). Cash flow from operating activities decreased equivalently by EUR 0.1 million, and was EUR 3.5 million (3.6). Cash flow from investing activities was EUR -0.2 million (-0.2). Cash flow from financing activities was EUR -0.7 million (-10.2) and related to taxes from dividend distribution. In the comparison period, the Group made an additional EUR 9 million repayment to the loan. Cash flow in the second quarter was EUR 2.6 (-6.8) million.

January - June 2024 (H1)

The Group's revenue for the period was EUR 18.1 (17.6) million. Revenue growth was 2.6% from the previous year.

Revenue for the period included EUR 1.2 million (1.8) of invoiced annual adjustment fees based on customers’ 2023 revenue. The decrease in annual adjustment fees from the comparison period was EUR 0.5 million, and had a negative impact of 3.1 percentage points on the revenue growth.

SaaS invoicing accounted for 74% (73%) of revenue during the period, mainly recurring accounting services for 21% (20%), and training, consulting and other income for 5% (7%). 

The Group’s EBITDA decreased by 5.7%, and was EUR 6.2 million (6.6), or 34.4% of revenue (37.4%). Adjusted EBITDA decreased by 4.5% and was EUR 6.3 million (6.6). Adjustments to EBITDA were EUR 81 thousand (0.0). Decrease in adjusted EBITDA was expected, as the growth investments made in 2023 were fully in the cost base during the reporting period.

The Group’s EBIT decreased by 15.3% and was EUR 4.3 million (5.1). Adjusted EBIT decreased by 13.7% and was EUR 4.4 million (5.1). In addition to the growth investments made in 2023, EBIT was impacted by the increase in the amortization of goodwill (EUR 0.4 million) related to change in the amortization period of goodwill from Kotopro acquisition and Trackinno acquisition. Profit for the period was EUR 3.0 million (3,7).

The Group's cash flow from operating activities before financial items and taxes increased by EUR 0.2 million, and was EUR 7.2 million (7.0). Cash flow from operating activities increased by EUR 0.5 million, and was EUR 5.9 million (5.4). Cash flow from investing activities was EUR -1.2 million (-0.2) and included the acquisition cost of Trackinno. Cash flow from financing activities was EUR -3.5 million (-15.5) and related to dividend distribution. In the comparison period, the Group made an additional EUR 9 million repayment to the loan. Cash flow in the first half was EUR 1.1 (-10.3) million.

Balance sheet and financing

The Group's balance sheet total 30.6.2024 was EUR 39.9 million (36.7). Group goodwill at the end of the reporting period was EUR 26.4 million (29.2)

The Group's equity at the end of the reporting period was EUR 28.7 million (26.6) and the equity ratio was 72.6% (73.0%). Dividend distribution to the shareholders during the reporting period was EUR 3.5 million (6.5).

The Group's financial position remained strong despite the acquisition of Trackinno and dividend distribution, and the Group's liquid cash and cash equivalents on 30.6.2024 were EUR 11.0 million (5.2). On 30.6.2024, the Group's net debt was EUR -6.8 million (-1.2) and gearing was -23.5% (-4.4%).

Investments, depreciation and amortization

Capital expenditure during the reporting period was EUR -1.2 million (-0.2), and related to capitalized development and Trackinno acquisition.

During the reporting period, capitalized development costs related to the Group’s software products were EUR 0.3 million (0.2). 

On 19 January, 2024 Admicom acquired the entire share capital of Trackinno Oy, a company developing a cloud-based asset management, maintenance and tracking solution. The total valuation (EV) of the arrangement at the time of acquisition was EUR 1.1 million. In addition, the parties have agreed upon conditional additional purchase price of EUR 0.0-0.4 million which is tied to Trackinno’s ARR growth and profitability development in 2024-2025 as well as fulfilment of other business targets. The basic purchase price and any additional purchase price will be paid fully in cash.

Depreciation and amortization during the first half were EUR 1.9 million (1.5). Amortization of goodwill represents 96% of the total depreciation and amortization.

Personnel and management

At the end of the review period, the Group had 288 (275) employees, of whom 31% (31%) worked in accounting services, 26% (26%) in R&D, 15% (16%) in sales and marketing, 22% (22%) in customer success and 6% (5%) in administration.

The Group Leadership Team composition at the end of the review period has been:

• Petri Kairinen, CEO 
• Petri Aho, deputy CEO and Chief Development Officer (CDO), M&A and strategy
• Satu Helamo, Chief Financial Officer
• Pekka Pulkkinen, Chief Growth Officer
• Anna-Maija Ijäs, Business Unit Director, ERP solutions
• Thomas Raehalme, Chief Technology Officer (CTO) and Business Unit Director of software development services
• Mikko Järvi, Business Unit Director, Documentation solutions
• Jari Kangassalo, Business Unit Director, Project management solutions
• Helena Marjokorpi, Head of People Operations

The Annual General Meeting March 19,2024 re-elected the following persons as members of the Board of Directors: Pasi Aaltola, Tomi Lod, Henna Mäkinen, Petri Niemi, Olli Nokso-Koivisto, Camilla Skoog and Marko Somerma. Petri Niemi was elected as the Chairman of the Board.

Henna Mäkinen (Chair), Marko Somerma and Petri Niemi were elected as members of Admicom Oyj’s Board of Director’s Audit Committee on 19 March 2024.

Shares and shareholders

Admicom Oyj’s number of shares on 30 June 2024 was 4,988,985 and the company's share capital at the end of June 2024 was EUR 106,000. At the end of the financial year, Admicom Finland Oy held 2,520 Admicom Oyj shares.

The closing price of Admicom Oyj’s share on Nasdaq First North Growth Market Finland on 30 June 2024 was EUR 45.00, resulting in a market capitalization of EUR 224.50 million. The average daily trading volume was 6,074 during the review period. In January-June, the highest purchase price was 50.40 euros, the lowest price was 38.05 euros and the average price was 44.16 euros.

The total holdings of the Board of Directors and the Leadership Team were 67,345 shares (1,35% of the share capital).

Stock option programs

Admicom Oyj's Board of Directors decided on 8 December, 2023 on the option plan for key employees based on the authorization decided by the Annual General Meeting held on 21 March, 2023. The stock options are offered to selected key employees of the Admicom Group as part of the Group's incentive and commitment program, and their purpose is to motivate the key employees to work long-term in order to increase the shareholder value of the company.

The maximum total number of stock options is 164,000. The stock options entitle their owners to subscribe for a maximum total of 164,000 Admicom Oyj shares. Each stock option entitles its holder to subscribe for one (1) new share or existing share held by the company. Of the stock options, a maximum of 82,000 are marked with the symbol 2023A and a maximum of 82,000 with the symbol 2023B. The stock options will be issued free-of-charge. The maximum number of shares subscribed with stock options, 164,000 shares, constitutes approximately 3.29 per cent of the company's shares on a fully diluted basis.

Under the symbol 2023A, 79,000 stock options have been allocated by 30 June 2024. The subscription period for the options is 1 July, 2026 – 1 January, 2029.

 

Option program	Total allocated amount	Outstanding	Subscription price, eur/share	Subscription time
2023A	79 000	79 000	36.30	1.7.2026-1.1.2029

No allocations have been made for option program 2023B on the reporting date.

For stock options 2023B, the trade volume weighted average quotation of the Company’s Share subject to public trading on a market maintained by Nasdaq Helsinki Ltd, rounded to the nearest cent, during the forty trading days following the publication date (said date excluded) of the company’s H1/2024 financial results release. The subscription time is 1 July 2027 – 1 January 2030.

Annual General Meeting and governance

Admicom Oyj's Annual General Meeting on March 19, 2024 approved the company's financial statements for the financial year 2023 and discharged the members of the Board of Directors and the CEO from liability for the financial year 2023.

The Annual General Meeting resolved that a dividend of EUR 0.70 per registered share be paid of the profit for the financial period. The dividend will be paid to a shareholder registered in the Company’s shareholders’ register maintained by Euroclear Finland Oy on the dividend record date March 21, 2024. The dividend will be paid on March 28, 2024.

The Annual General Meeting resolved that the number of members of the Board of Directors of the company shall be seven (7). The Annual General Meeting re-elected the following persons as members of the Board of Directors: Pasi Aaltola, Tomi Lod, Henna Mäkinen, Petri Niemi, Olli Nokso-Koivisto, Camilla Skoog and Marko Somerma. Petri Niemi was elected as the Chairman of the Board.

The Annual General Meeting resolved that the remuneration of the Board of Directors is EUR 28,000 for each member of the Board of Directors and EUR 60,000 for the Chairman of the Board for the term from the Annual General Meeting to the next Annual General Meeting. In addition, the Chairman of the Audit Committee receives an additional EUR 5,000 and each other member of the Audit Committee EUR 2,500 for the term. If a member of the Board resigns during the term of office, the remuneration will be paid in proportion to the term of office.

KPMG Oy Ab was re-elected as the company's audit firm. Anna-Riikka Maunula, APA, will continue to audit the company as the principal auditor. The Annual General Meeting resolved that the auditor will be paid a fee according to the auditor's reasonable invoice.

The proposal made to the Annual General Meeting to authorise the Board of Directors to decide on the issuance of shares and the issuance of special rights entitling to shares as referred to in chapter 10, section 1 of the Finnish Limited Liability Companies Act, associated with incentivising and promoting the commitment of the personnel and management, in one or more tranches either against payment or free of charge was not supported by two thirds of the votes cast and the shares represented at the meeting, as required by the Finnish Companies Act, so the authorisation was not approved.

The Annual General Meeting authorised the Board of Directors to decide on the issuance of shares in one or several tranches either against payment or free of charge. The Board may use the authorisation to finance and enable, for example, corporate and business transactions or other business arrangements and investments. The total maximum number of shares to be issued based on the authorisation is 498,898 shares. The Board of Directors can decide to either issue new shares or dispose of any treasury shares held by the Company. The maximum amount of the authorisation corresponds to approximately 10% of all the shares in the Company as at the date of the notice to the General Meeting. The authorisation entitles the Board of Directors to decide on all terms of the share issue, including the right to deviate from the shareholders’ pre-emptive subscription right provided that there is a weighty financial reason to do so. The authorisation is valid until the end of the next Annual General Meeting, however, for a maximum of 18 months from the General Meeting’s resolution on authorisation.

The Annual General Meeting authorised the Board of Directors to decide on the repurchase of the Company’s shares using the Company’s unrestricted equity. The total maximum number of shares to be repurchased under the authorisation is 498,898 shares, which corresponds to approximately 10% of all the shares in the Company as at the date of the notice to the Annual General Meeting. The shares will be repurchased in public trading arranged by Nasdaq Helsinki Ltd at their market value on Nasdaq First North Growth Market Finland at the time of the repurchase. Based on the authorisation, the Board of Directors may decide on the repurchase of the Company’s own shares also in deviation from the proportional holdings of the shareholders. The authorisation is valid until the end of the next Annual General Meeting, however, for a maximum of 18 months from the General Meeting’s resolution on authorisation.

The Annual General Meeting resolved, in accordance with the proposal of the Board of Directors, to amend the Articles of Association so that the Articles of Association will in the future allow the Annual General Meeting to be held entirely without a meeting venue as a so-called remote meeting.

In addition, the Annual General Meeting resolved, in accordance with the proposal of the Board of Directors, to amend the Articles of Association so that the Articles of Association will in the future allow the Annual General Meeting to be held in Helsinki in addition to the company’s domicile.

At its constitutive meeting held after the Annual General Meeting, the Board of Directors stated that Petri Niemi will continue as the Chairman of the Board of Directors by decision of the Annual General Meeting. In addition, the Board of Directors decided at the meeting that Henna Mäkinen will continue as Chairman of the Audit Committee and Marko Somerma and Petri Niemi as members.

Risks and uncertainties

The main risks and uncertainties in Admicom’s business include:

• Changes in the competitor field may increase the company's business risks in its home market. The number of mergers and acquisitions, and the interests of foreign private equity investors and companies in Finnish software companies have increased, which may shape the competitive field. In addition, small, focused software companies have emerged in the industry. Admicom actively monitors changes in the competitive field and takes changes into account in strategy work and development and market positioning of its products.
• In its strategy, Admicom has announced that it plans becoming international as part of the strategy phase of Accelerated Growth. Internationalisation through acquisitions or the establishment of international operations requires new operations and complicates the current operating environment. This may entail risks of weakening relative profitability in the short term. To mitigate the risk, Admicom conducts market research and carefully examines the best ways to become international and assesses the business case of each opportunity.
• The challenging market situation in the construction sector, if continued, may slow down growth and increase customer churn as bankruptcies and liquidity challenges increase. A decrease in the revenues of customer companies may affect the Group's revenue, especially through retrospective customers’ revenue based annual adjustment fees for Admicom Ultima (formerly Adminet). The risk is mitigated by the mission critical nature of Admicom's software even in a difficult market situation and the good scalability of the software. In addition, Admicom’s customers are typically able to shift focus between new build and renovation.The risk is also mitigated by supporting customers' business operations through training, developing customer service, and by offering customers solutions that improve productivity and cost-efficiency.
• Technology and cyber security risks together with related reputational risk are critical areas for cloud software companies. Admicom continuously takes measures to improve the cyber security of the software products, detect and prevent technology and information security threats and developg the organization’s data protection and information security processes.
• Skilled personnel plays a significant role in implementing the company's growth strategy and maintaining service capability. The attrition of key personnel from the company or challenges in recruitment may lead to delays in business development and strategy implementation. The company recruits and nurtures new talent to prepare for critical attritions. Admicom has also invested in creating a common growth culture and developing new reward systems and leadership.
• Mergers and acquisitions carried out by Admicom may involve risks that are typical when acquiring or integrating business operations. In addition, the increasing competition of acquisition targets may lead to situation where acquisitions are challenging to complete with reasonable valuations. The Group aims to manage risks by combining operations, expanding M&A expertise and by assessing the business case for each acquisition.

Material events after period end

No material events.

Accounting principles of the financial statements release

The half-yearly report has been prepared in accordance with good accounting practice and Finnish legislation. The figures in this half-yearly financial report are unaudited and have been prepared in accordance with national legislation (FAS). The information has been presented to the extent required by the Nasdaq First North Growth Market rules. The figures presented have been rounded off from the exact figures.

Financial publications in 2024

The company will publish Q3 interim report on October 9, 2024.

Admicom Oyj

BOARD OF DIRECTORS

Additional information:

Petri Kairinen
CEO
petri.kairinen@admicom.com
+358 50 303 4275

Satu Helamo
CFO
satu.helamo@admicom.com
+358 45 633 7710

Certified Advisor:

Oaklins Merasco Oy
+358 9 6129 670

Admicom Oyj

Established in 2004, Admicom is a pioneer in system development and a comprehensive software and accounting services partner for small and medium-sized enterprises.

At the core of our service package is the Admicom Ultima ERP system (formerly Adminet), which covers a wide range of solutions for managing customer companies' operations from mobile tools on the construction site to real-time financial monitoring and project management. A highly automated SaaS solution helps SMEs improve their competitiveness and profitability and saves significant time on site and in the office. We also offer our clients training, consulting and accounting services.

Our software family also includes Ultima Lite (formerly Adminet Lite), a cost-effective software and service package for small businesses, Admicom Flex (formerly Hillava), a precision solution for mobile work management, Admicom Vision (formerly Kotopro), which offers modern solutions for higher quality documentation, and a project management unit whose range of services includes solutions for quantity and cost calculation (Estima and Estima Pro), scheduling (Tempo and Planner, formerly Tocoman Aikataulu) and BIM3 solutions for utilising building information models.

We are constantly working to coordinate the functions of our software family in order to provide our customers with a consistent user experience between systems and eliminate extra work phases, enabling our customers to do more profitable business using modern software solutions.

The continuously growing Admicommunity employs around 300 people in its offices in Jyväskylä, Helsinki, Tampere, Oulu, Seinäjoki and Turku. More information: www.admicom.com.

Admicom's press releases and financial reports: https://investors.admicom.fi/releases-and-reports/

QUARTERLY KEY FIGURES

ADMICOM GROUP (EUR 1,000 unless otherwise stated)	4-6/2024	1-3/2024	10-12/2023	7-9/2023	4-6/2023	1-3/2023
ARR, MEUR	33.7	33.8	32.5	32.7	31.6	30.7
Revenue	9 479	8 605	8 194	8 502	9 417	8 208
Recurring revenue	8 955	8 054	7 631	8 002	8 808	7 496
Adjusted EBITDA	3 640	2 657	2 443	3 762	3 586	3 009
% of revenue	38.4%	30.9%	29.8%	44.2%	38.1%	36.7%
EBITDA	3 640	2 577	2 443	3 762	3 586	3 009
% of revenue	38.4%	29.9%	29.8%	44.2%	38.1%	36.7%
Adjusted EBIT	2 688	1 713	721	3 004	2 836	2 263
% of revenue	28.4%	19.9%	8.8%	35.3%	30.1%	27.6%
EBIT	2 688	1 633	721	3 004	2 836	2 263
% of revenue	28.4%	19.0%	8.8%	35.3%	30.1%	27.6%
Profit for the period,	1 918	1 071	455	2 194	2 073	1 595
% of revenue	20.2%	12.4%	5.5%	25.8%	22.0%	19.4%
Earnings per share, EPS, EUR	0.38	0.21	0.09	0.44	0.42	0.32
Employees at the end of the period	288	279	271	263	275	258

PROFIT AND LOSS STATEMENT, GROUP

EUR 1 000	1-6/2024	1-6/2023	1-12/2023
REVENUE	18 084	17 625	34 321
Other operating income	1	15	18
Materials and services	-801	-772	-1 563
Personnel expenses	-8 432	-7 656	-14 943
Depreciation and amortisation	-1 896	-1 496	-3 976
Other operating expenses	-2 636	-2 617	-5 034
OPERATING PROFIT (LOSS)	4 321	5 099	8 823
Financial income and expenses
Other interest income and other financial income	31	1	19
Interest and other financial expenses	-99	-115	-214
PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAXES	4 253	4 986	8 629
Income taxes	-1 263	-1 284	-2 255
Minority interest	-1	-34	-57
PROFIT (LOSS) FOR THE FINANCIAL PERIOD	2 989	3 668	6 317

BALANCE SHEET, GROUP

EUR 1 000		6/2024		6/2023	12/2023
ASSETS
NON-CURRENT ASSETS
Intangible assets
Capitalised development costs		748		318	451
Intangible rights		3		8	5
Goodwill		15		43	25
Group goodwill		26 449		29 166	26 773
Other intangible rights		14		0
Advance payments		0		0	16
Total intangible assets		27 228		29 535	27 271
Tangible assets
Machinery and equipment		126		168	144
Total tangible assets		126		168	144
Investments
Other shares and holdings		3		3	3
Total investments		3		3	3
TOTAL NON-CURRENT ASSETS		27 356		29 705	27 417
CURRENT ASSETS
Inventory
Materials and supplies		24		14	15
Total inventory		24		14	15
Long-term receivables    Other receivables Total long-term receivables		21 21		21 21	21 21
Short-term receivables
Accounts receivable1)		569		1 145	820
Other receivables		49		99	115
Prepayments and accrued income		836		461	368
Total short-term receivables		1 454		1 706	1 302
Cash and cash equivalents		11 021		5 247	9 922
TOTAL CURRENT ASSETS		12 521		6 988	11 261
TOTAL ASSETS		39 877		36 693	38 678

BALANCE SHEET, GROUP
EUR 1 000	6/2024		6/2023		12/2023
EQUITY AND LIABILITIES
EQUITY
Share capital	106		106		106
Reserve for invested unrestricted equity	15 308		15 308		15 308
Retained earnings	10 328		7 501		7 501
Profit of the financial year	2 989		3 668		6 317
TOTAL EQUITY	28 731		26 583		29 232
Minority interest	35		65		89
LIABILITIES
Long term liabilities
Loans from financial institutions	4 253		4 081		4 073
Other liabilities	385		500		500
Total long term liabilities	4 638		4 581		4 573
Current liabilities
Loans from financial institutions	4		4		8
Received advances	274		189		242
Accounts payable	627		208		574
Other liabilities	1 978		1 926		1 306
Accruals and deferred income1)	3 589		3 137		2 654
Total current liabilities	6 472		5 464		4 784
TOTAL LIABILITIES	11 110		10 045		9 357
TOTAL EQUITY AND LIABILITIES	39 877		36 693		38 678

_{1) Amount of Accounts receivable and Accruals and deferred income for reporting period and comparison periods have been adjusted with unpaid deferred revenue according to Finnish Accounting Board statement (KILA 2056/13.2.2024). The amount of adjustment is EUR 1.9 million on 30 June 2023 and EUR 1.9 million on 31 December 2023.}

CASH FLOW STATEMENT, GROUP
EUR 1 000	1-6/2024	1-6/2023	1-12/2023
Cash flow from operating activities
Profit (loss) before taxes	4 253	4 986	8 629
Adjustments:
Depreciation and amortisation	1 896	1 496	3 976
Financial income and expenses	68	113	195
Cash flow before changes in working capital	6 217	6 595	12 800
Changes in working capital
Increase (-) / decrease (+) in short-term non-interest-bearing receivables	147	-619	-195
Increase (-) / decrease (+) in inventories	3	0	0
Increase (+) / decrease (-) in short-term non-interest-bearing liabilities	828	980	436
Cash flow from operating activities before financial items and taxes	7 195	6 956	13 041
Interest and other financial costs paid	-99	-174	-223
Interest received	28	1	16
Income taxes paid	-1 258	-1 354	-2 483
Cash flow from operating activities (A)	5 865	5 428	10 350
Cash flow from investing activities
Investments to tangible and intangible assets	-309	-174	-366
Acquisition of the subsidiary, net of cash	-912	-1	-1
Cash flow from investing activities (B)	-1 221	-176	-368
Cash flow from financing activities
Repayments of non-current liabilities		- 9 000	-9 000
Paid dividends and other profit distribution	-3 545	-6 538	-6 593
Cash flow from financing activities (C)	-3 545	- 15 538	-15 593
Change in cash and cash equivalents (A+B+C), increase (+) / decrease (-)	1 100	-10 285	-5 610
Cash and cash equivalents at the beginning of the financial year	9 922	15 532	15 532
Cash and cash equivalents at the end of the financial year	11 021	5 247	9 922
Change in cash and cash equivalents	1 100	-10 285	-5 610

CHANGES IN EQUITY
EUR 1 000	1-6/2024		1-6/2023		1-12/2023
RESTRICTED EQUITY
Share capital	106		106		106
TOTAL RESTRICTED EQUITY	106		106		106
NON-RESTRICTED EQUITY
Invested unrestricted equity reserve at the beginning of the financial year	15 308		15 308		15 308
Invested unrestricted equity reserve at the end of the financial year	15 308		15 308		15 308
Profit (loss) of previous financial years at the beginning of the financial year	13 818		13 984		13 984
Distribution of dividend	-3 491		-6 482		-6 482
Profit (loss) of previous financial years at the end of the financial year	10 328		7 501		7 501
Profit/loss of the financial year	2 989		3 668		6 317
TOTAL NON-RESTRICTED EQUITY	28 625		26 477		29 126
TOTAL EQUITY	28 731		26 583		29 232

 

 

Calculation of financial ratios

Operating profit, % of revenue  =	Operating profit	x 100
	Revenue
EBITDA, % of revenue =	Operating profit + depreciation and amortisation	x 100
	Revenue
Adjusted EBITDA =	EBITDA +/- items affecting comparability
Adjusted EBIT =	EBIT +/- items affecting comparability
Return on equity, % =	Operating profit before appropriations and taxes - income tax	x 100
	Equity on average + minority interest on average
Return on investment, % =	Operating profit before appropriations and taxes + net financing expenses	x 100
	Balance sheet total on average – non-interest-bearing debts on average
Equity ratio, % =	Equity + minority interest	x 100
	Balance sheet total – advance payments received
Net gearing, % =	Interest-bearing debt - cash at banks	x 100
	Equity + minority interest
Earnings per share (EPS), EUR =	Profit of the financial year
	Number of shares on average during the financial year
Annual Recurring Revenue (ARR) =	Monthly recurring revenue (MRR) at the end of the period multiplied by 12 and added with revenues from annual adjustment fees and financial statement fees during last twelve months.
Recurring Revenue =	Monthly recurring revenue added with revenues from annual adjustment fees and financial statement fees.