Gofore Plc: Gofore Plc’s Financial Statements Release 1 January–31 December 2020: Gofore continued strong growth – profitability improved
GOFORE PLC COMPANY ANNOUNCEMENT 5 MARCH 2021 AT 9.00 EETGofore Plc’s Financial Statements Release 1 January–31 December 2020
Gofore continued strong growth – profitability improvedRevenue grew 21.7% to EUR 78.0 (64.1) million.Adjusted EBITA1 was EUR 10.8 (7.7) million, corresponding to 13.8% of revenue (12.0%).Operating profit (EBIT) was EUR 8.8 (6.6) million, corresponding to 11.2% of revenue (10.3%).The number of employees increased by approximately 24% to a total of 724 people (582).Acquisition of Qentinel Finland Oy, a specialist in digital quality assurance and testing automation, in September 2020.July–December 2020 in briefRevenue grew 32.5% to EUR 40.6 (30.6) million.Adjusted EBITA1 was EUR 5.1 (2.9) million, corresponding to 12.7% of revenue (9.4%).EBIT was EUR 4.3 (2.4) million, corresponding to 10.5% of revenue (7.9%).The figures presented in this release are based on audited financial statements that have been prepared in accordance with the International Financial Reporting Standards (IFRS). The company adopted the IFRS-based reporting for the financial period ended 31 December 2020. The quarterly and half-yearly figures are unaudited. The figures presented in parentheses in this review refer to the comparison period, the same period in 2019, unless otherwise specified.1 The company uses adjusted EBITA as a measure for operative profitability. Adjusted EBITA is defined in the formulas of key figures in the table section. Reconciliation calculations are presented at the end of the section.Financial guidance for 2021
Gofore estimates its 2021 revenue to grow compared to 2020 and its adjusted EBITA to grow in 2021 compared to 2020.Key figures (IFRS)1 Silver Planet Oy’s figures have been combined with the Gofore Group figures from 15 February 2019 and mangodesign Finke-Anlauff & Anlauff GbR:n figures from 1 July 2019.
2 Qentinel Finland Oy figures have been combined with the Gofore Group figures from 1 September 2020.
3 Diluted EPS equals to undiluted EPS.1 Qentinel Finland Oy figures have been combined with the Gofore Group figures from 1 September 2020.
2 Silver Planet Oy figures have been combined with the Gofore Group figures from 15 February 2019 and mangodesign Finke-Anlauff & Anlauff figures from 1 July 2019. Although general uncertainty in the business environment increased, 2020 was a good year in business terms. Compared to the previous year, our revenue increased by approximately 22% to EUR 78 million and adjusted EBITA grew by approximately 40% to EUR 10.8 million. Revenue growth has now continued uninterrupted for 16 consecutive financial years. Our customer projects were mainly carried out as planned, and demand in different business areas developed well. We estimate that the Covid-19 pandemic will accelerate the digitalisation of societies and businesses in both the short and long term.Especially in Finland, we strengthened our position as an agile expert partner to our customers that creates sustainable value. We are a trusted partner of the public sector in particular – it accounted for as much as 74% of our revenue last year. Our international business also grew and developed especially supported by our large customers.With Qentinel Finland Oy’s acquisition, completed in September, we expanded our service offering to quality assurance and test automation of information systems and digital services. This improves significantly our ability to serve our customers comprehensively throughout the value chain and act as the lead provider in demanding, large-scale projects.People are at the core of digitalisation, and Gofore’s success depends on the best experts. We do our best at every moment to ensure that our appeal and employee experience are top-notch. In 2020, we received a record number of approximately 2,800 outstanding applications and recruited over 100 new goforeans. In addition, our ranks were strengthened by Qentinel Finland’s 104 experts. The large-scale remote work experiment caused by the Covid-19 pandemic shows that a more location-independent approach is possible. Not all work can continue to be done remotely and virtually, but in an industry plagued by a shortage of experts, new opportunities open up for us to find suitable expertise for our customers’ needs.In December, we updated our strategy for the period of 2021–2023 as well as our long-term financial targets. With the strategy update, we affirmed our vision to be one of the most significant digital transformation consultancies in Europe.In December, we also specified the schedule to transfer to Nasdaq Helsinki main market, which will take place during March. The transition will improve our visibility and awareness of us as well as elevate us both domestically and internationally to a new reference group in the eyes of investors, customers, partners.In 2020, Gofore faced significant changes that we will manage and make the most of. The year was demanding for us goforeans and our customers, but cooperation and trust in the future took us forward. Together, we will continue to build a better world; this work’s motto is well aligned with our new brand promise “Pioneering an ethical digital world”.I would like to thank all our stakeholders, especially goforeans and customers, for 2020 – the new year has begun, and I believe that 2021 will be a successful year!Strategy
Gofore published its updated strategy for 2021–2023 and long-term financial targets on 16 December 2020. The company’s strategy was presented in more detail at the Capital Markets Day held on 14 January 2021.Gofore’s vision is to be one of the most significant digital transformation consultancies in Europe.Business growth is pursued in three areas: continued growth in Finland, growth in international
markets and growth through acquisitions.1. Continued growth in Finland
In the public sector in Finland, Gofore aims to continue developing into a leading provider of expert services for digital transformation and further strengthening its strong position. Finland is one of the world’s leading countries in public digital services, and significant investments in the development of digital services are expected to continue. Gofore strives to support its public sector customers with its extensive and continuously evolving expertise and service offering. Gofore strives to develop its service capabilities to be the most attractive provider of major public sector development projects, providing exceptional customer experience and success stories.Gofore of the future is an international and diverse company that is able to serve its large international customers in the best possible way. International business is directed to both the public and private sector IT service markets.Gofore actively seeks possibilities to acquire internationally operating private and public sector customers that the company is able to serve with its current strengths and existing resources independently of location.The company has identified Germany as an attractive growth market in which it wants to increase its presence both through organic growth and acquisitions. Germany has a large industrial manufacturing sector where the company can take advantage of its existing industry experience to serve its customers. In Germany, Gofore has an established business and offices in Munich and Brunswick. Sales and customer relationship development in the German-speaking market are carried out by the local organisation.The aim is to achieve international growth at the same pace as the Group’s net sales growth.3. Growth through acquisitions
As part of its growth, Gofore aims to make acquisitions that support its strategy. Gofore has an excellent track-record in acquisitions during 2017–2020: acquisitions have improved the company’s expertise and ability to serve its customers, and increased shareholder value. Gofore continues to develop its capabilities to make successful acquisitions.In the coming years, approximately half of the growth will be targeted through business and company acquisitions that are well suited to Gofore’s business model and culture. Through acquisitions Gofore aims to achieve expertise that supports its strategy, expand its customer base or strengthen its geographical position, while simultaneously ensuring synergies.In the private sector, the pandemic has had a greater direct impact, which has been reflected as delays in development projects and cancellations of projects in single cases. Disruptions in customers’ own business have also affected customer prices.Financial review 1 January–31 December 2020Revenue developmentJanuary–December 2020
In January–December 2020, revenue grew by 21.7% from the previous year, amounting to EUR 78.0 (64.1) million. The increase was mainly due to the increase in demand, but also to the acquisition of Qentinel Finland Oy as of September.74% (70%) of Gofore’s revenue came from public sector customers, amounting to EUR 57.8 million (EUR 44.8 million) and 26% (30%) from private sector customers, amounting to EUR 20.1 million (EUR 19.3 million). In geographical terms, 90% (91%) of combined revenue came from Finland, amounting to EUR 69.9 million (EUR 58.6 million), and a total of 10% (9%) from other countries, amounting to EUR 8.1 million (EUR 5.5 million). Subcontracting accounted for 19% (16%) of revenue, amounting to EUR 14.6 million (EUR 9.9 million).Monthly development of revenue in January–December 20201 Revenue, MEUR (revenue in 2019) indicates the revenue (unaudited) for the month concerned.
2 The number of employees at the end of the review period.
3 Overall capacity, FTE (Full Time Equivalent) figure shows the overall capacity of the Group’s personnel, converted into a value corresponding to the number of full-time employees. The figure includes the entire personnel, regardless of their role. The figure is not affected by annual leave, time-off in lieu of overtime, sick leave or other short-term absences. Part-time agreements and other long-term deviations from normal working hours reduce the amount of overall capacity in comparison with the total number of employees. The capacity of acquired companies personnel is included as of the acquisition date.
4 Subcontracting, FTE (Full Time Equivalent) figure shows the overall amount of subcontracting used in invoiced work, converted into a value corresponding to the number of full-time employees. Subcontracting used by acquired companies is included as of the acquisition date.July–December 2020
July–December 2020 revenue grew 32.5% from the comparison period in the previous year, to EUR 40.6 million (EUR 30.6 million). The growth reflected the acquisition of Qentinel Finland Oy.Operating profit (EBIT) in January–December 2020 was EUR 8.8 million (EUR 6.6 million), corresponding to 11.2% of revenue (10.3%).Due to the growth of the number of personnel, the Group’s employee benefit expenses increased to EUR 44.4 million (EUR 37.1 million) in January–December 2020, corresponding to 57.0% of revenue (57.8%).Other operating expenses amounted to EUR 9.8 million (EUR 9.4 million). The largest expense items were other indirect employee expenses, facility expenses and expenses for machinery and equipment. Other operating expenses for the review period include a non-recurring expense of EUR 0.6 million related to the divestment of the operations of the UK subsidiary (Gofore UK Ltd.).Cash flow from financing activities during the period was EUR -1.8 million (EUR -2.0 million), including dividends paid of EUR -2.8 million, repayment of lease liabilities EUR -2.2 million, proceeds from borrowings EUR 10.0 million, repayment of borrowings of EUR -6.4 million and treasury shares acquired of EUR -0.5 million.Personnel and offices
At the end of December 2020, the Group employed 724 (582) people. The number of employees grew due to the organic growth of the business and the acquisition of Qentinel Finland Oy. A total of 692 (540) people worked in Finland and 32 (42) in other operating countries. In Finland, the company has offices in Helsinki, Espoo, Jyväskylä, Tampere and Turku. The offices abroad are located in Brunswick and Munich in Germany, Madrid in Spain and Tallinn in Estonia.Elja Kirjavainen was appointed Director, Digital transformation and a member of the Group Executive Team on 17 April 2020. He took up his position and as a member of the Group Executive Team on 1 May 2020.Resolutions of the Annual General Meeting
The Annual General Meeting of Gofore Plc was held in Tampere on 29 April 2020. The Annual General Meeting resolved to adopt the financial statements for 2019, and discharged the members of the Board of Directors and the CEO from liability for the financial period 2019. The Annual General Meeting authorised the Board of Directors to resolve on the acquisition of the company’s own shares and the issuance of shares as well as the issuance of option rights and other special rights entitling to shares. Additionally, the Annual General Meeting adopt the remuneration policy for governing bodies of the company.
The Annual General Meeting resolved, in accordance with the proposal of the Nomination Committee, that the members of the Board be paid a fee of EUR 1,500 per month and the Chairman of the Board EUR 2,500 per month and, in addition, the Chairman of the Audit Committee be paid a fee of EUR 500 per month provided that he or she does not act as the Chairman of the Board at the same time. The Annual General Meeting elected five members to the company’s Board of Directors. Timur Kärki, Sami Somero and Stefan Baggström were re-elected as members of the Board of Directors and Mammu Kaario and Juha Eteläniemi were elected as new members. The Board of Directors elected Timur Kärki to continue as its Chairman. The Board of Directors’ term of office will continue until the end of the next Annual General Meeting.
KPMG Oy Ab was elected as the company’s auditor for a term that will continue until the end of the next Annual General Meeting. KPMG Oy Ab has announced that Lotta Nurminen, APA, will be the auditor with principal responsibility.
The Annual General Meeting resolved that a Shareholders’ Nomination Board be established, and the rules of procedure of the Shareholders’ Nomination Board as proposed by the Board of Directors were approved. Shares and shareholders
At the end of December 2020, Gofore Plc’s registered share capital amounted to EUR 80,000.00 (EUR 80,000.00), which corresponded to a total of 14,036,927 (14, 012,802) shares. At the end of the review period, the company held 0 (174) own shares.At the end of December 2020, the company had 5,101 (2,771) registered shareholders. There were 298,497 (54,753) nominee-registered shares, which corresponds to approximately 2.1% (0.4%) of total shares. Share price development and share trading
During 2020, 2.95 (1.22) million of the company’s shares were traded, which is approximately 21% (9%) of the average number of shares outstanding. The total value of the shares traded was EUR 30.0 (9.8) million.Repurchase of own shares
In the review period, Gofore carried out the repurchase programme of the company’s own shares based on the authorisation given by the 2019 Annual General Meeting (26 March 2019). The shares were acquired between 26 March 2020 and 30 June 2020. During this time, the authorisation given by the Annual General Meeting held on 29 April 2020 revoked the authorisation given by the Annual General Meeting held on 26 March 2019. During the repurchase program, the company acquired 57,839 of its own shares at an average price of EUR 7.08. The shares were acquired in public trading on Nasdaq Helsinki Oy at the market price at the time of acquisition. The purpose of the repurchase of shares is to use the shares as a part of purchase price in potential corporate acquisitions, as a part of the company’s share-based incentive schemes, and otherwise to be transferred, held by the company, or nullified. Share-based commitment and incentive plans
In connection with the personnel offering in the company’s listing on First North Growth Market Finland in 2017, a Matching Share plan was offered for personnel. In the plan, employees who subscribed for shares in the personnel offering would receive one matching share for every three shares subscribed, provided they remain employed by the Group three years after the start of share subscription, and that they have held the acquired shares for the entire period. In autumn 2018, Gofore’s Board of Directors resolved to launch the CrewShare share savings plan for Group personnel. The Board of Directors decides annually on any savings periods to be initiated under the plan. As an incentive for participants in the plan, Gofore will offer one matching share per three shares acquired with savings after a two-year share ownership period. Dividends paid on shares purchased with savings are automatically used to purchase the shares on the next possible purchase date.At the end of 31 December 2020, there were three savings periods in the CrewShare share savings plan. The first savings period was from 1 November 2018 to 28 February 2019. On 31 December 2020, the company had 128 employees entitled to a total of 5,109 matching shares. In the second savings period from 1 March 2019 to 29 February 2020, there were 152 employees entitled to 14,743 matching shares on 31 December 2020.On 12 February 2020, the company’s Board of Directors decided on the third savings period to be launched under the share savings plan for 2020–2021. The third savings period was from 1 March 2020 to 28 February 2021.On 11 September 2020, the company’s Board of Directors decided to issue a total of 24,125 new shares as part of the CrewShare share savings plan. The new shares are the matching shares acquired for the participants with the savings accumulated during the savings period from 1 March to 31 August 2020. The shares were subscribed for at a price of EUR 7.9466 per share, based on the volume-weighted average share price on Nasdaq Helsinki Oy’s First North Growth Market Finland in the period 1–31 August 2020 and a 10% discount calculated therefrom. As at 31 December 2020, 171 Group employees entitled to 7,914 matching shares participated in the share savings plan.Significant events after the review period
As part of the updated company strategy, announced on 16 December 2020, Gofore also announced nominations to the Group Executive Team as follows, as of 1 January 2021: Kalle Mäki, General Counsel; Sanna Hilden, Director, People Operations, and Miika Nurminen, Director, Digital Quality Assurance and CEO of Qentinel Finland Oy.Gofore Group’s revenue in January 2021 was EUR 7.5 million (EUR 6.1 million). The number of employees at the end of the review period was 727. The number of working days in Finland during the period was 19. The total capacity Full Time Equivalent (FTE) was 679 and the subcontracting FTE 109.1 Revenue, MEUR (revenue in 2020) indicates the revenue (unaudited) for the month concerned.
2 The number of employees at the end of the review period.
3 Overall capacity, FTE (Full Time Equivalent) figure shows the overall capacity of the Group’s personnel, converted into a value corresponding to the number of full-time employees. The figure includes the entire personnel, regardless of their role. The figure is not affected by annual leave, time-off in lieu of overtime, sick leave or other short-term absences. Part-time agreements and other long-term deviations from normal working hours reduce the amount of overall capacity in comparison with the total number of employees.
4 Subcontracting, FTE (Full Time Equivalent) figure shows the overall amount of subcontracting used in invoiced work, converted into a value corresponding to the number of full-time employees.Short-term risks and uncertainties
The most significant short-term risks are related to changes caused by the coronavirus pandemic in the company’s operating environment. The protracted pandemic situation creates uncertainty regarding the development of customer demand and the well-being of the company’s personnel. Apart from the pandemic situation, the company’s short-term risks are similar in relation to previous years.Board of Directors’ proposal for the distribution of dividend
The parent company’s distributable equity as at 31 December 2020 amounted to EUR 36.3 million, including the profit for the period, EUR 6.3 million.No material changes have taken place in the company’s financial position after the balance sheet date, nor does the solvency test referred to in chapter 13, section 2 of the Limited Liability Companies Act affect the amount of distributable funds.The dividend will be paid to a shareholder who is registered in the company’s shareholder register maintained by Euroclear Finland Oy on the record date for the dividend payment, 30 March 2021. No dividend will be paid on treasury shares held by the company on the record date. It is proposed that the dividends be paid on 8 April 2021.Publication of Annual Report, and Annual General Meeting
The Annual Report for the year 2020 will be published on 5 March 2021, and it includes the Board of Directors’ Report, Auditor’s Report and financial statements 2020. Additionally, a separate Remuneration Statement will be published.The Annual General Meeting will be held on Friday, 26 March 2021.Financial calendar in 2021
During the year 2021, Gofore Plc will publish its financial reviews as follows: In addition, Gofore publishes a monthly business review that includes the number of employees and monthly revenue with comparable information, management’s assessment of the development of the business during the review period, and other key figures that facilitate the monitoring of the company’s growth strategy. Tables section (IFRS)
This financial statements release was prepared applying the same accounting principles and calculation formulas than in the audited 2020 financial statements. The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS). Gofore adopted IFRS in its reporting for the financial period ended 31 December 2020. Presented half-year 2020 figures are unaudited. Consolidated Statement of Financial Position
Further enquiries:
Mikael Nylund, CEO, Gofore Plc
tel. +358 40 540 2280
mikael.nylund@gofore.comAttachmentGofore Plc Financial Statements Release 2020
Gofore continued strong growth – profitability improvedRevenue grew 21.7% to EUR 78.0 (64.1) million.Adjusted EBITA1 was EUR 10.8 (7.7) million, corresponding to 13.8% of revenue (12.0%).Operating profit (EBIT) was EUR 8.8 (6.6) million, corresponding to 11.2% of revenue (10.3%).The number of employees increased by approximately 24% to a total of 724 people (582).Acquisition of Qentinel Finland Oy, a specialist in digital quality assurance and testing automation, in September 2020.July–December 2020 in briefRevenue grew 32.5% to EUR 40.6 (30.6) million.Adjusted EBITA1 was EUR 5.1 (2.9) million, corresponding to 12.7% of revenue (9.4%).EBIT was EUR 4.3 (2.4) million, corresponding to 10.5% of revenue (7.9%).The figures presented in this release are based on audited financial statements that have been prepared in accordance with the International Financial Reporting Standards (IFRS). The company adopted the IFRS-based reporting for the financial period ended 31 December 2020. The quarterly and half-yearly figures are unaudited. The figures presented in parentheses in this review refer to the comparison period, the same period in 2019, unless otherwise specified.1 The company uses adjusted EBITA as a measure for operative profitability. Adjusted EBITA is defined in the formulas of key figures in the table section. Reconciliation calculations are presented at the end of the section.Financial guidance for 2021
Gofore estimates its 2021 revenue to grow compared to 2020 and its adjusted EBITA to grow in 2021 compared to 2020.Key figures (IFRS)1 Silver Planet Oy’s figures have been combined with the Gofore Group figures from 15 February 2019 and mangodesign Finke-Anlauff & Anlauff GbR:n figures from 1 July 2019.
2 Qentinel Finland Oy figures have been combined with the Gofore Group figures from 1 September 2020.
3 Diluted EPS equals to undiluted EPS.1 Qentinel Finland Oy figures have been combined with the Gofore Group figures from 1 September 2020.
2 Silver Planet Oy figures have been combined with the Gofore Group figures from 15 February 2019 and mangodesign Finke-Anlauff & Anlauff figures from 1 July 2019. Although general uncertainty in the business environment increased, 2020 was a good year in business terms. Compared to the previous year, our revenue increased by approximately 22% to EUR 78 million and adjusted EBITA grew by approximately 40% to EUR 10.8 million. Revenue growth has now continued uninterrupted for 16 consecutive financial years. Our customer projects were mainly carried out as planned, and demand in different business areas developed well. We estimate that the Covid-19 pandemic will accelerate the digitalisation of societies and businesses in both the short and long term.Especially in Finland, we strengthened our position as an agile expert partner to our customers that creates sustainable value. We are a trusted partner of the public sector in particular – it accounted for as much as 74% of our revenue last year. Our international business also grew and developed especially supported by our large customers.With Qentinel Finland Oy’s acquisition, completed in September, we expanded our service offering to quality assurance and test automation of information systems and digital services. This improves significantly our ability to serve our customers comprehensively throughout the value chain and act as the lead provider in demanding, large-scale projects.People are at the core of digitalisation, and Gofore’s success depends on the best experts. We do our best at every moment to ensure that our appeal and employee experience are top-notch. In 2020, we received a record number of approximately 2,800 outstanding applications and recruited over 100 new goforeans. In addition, our ranks were strengthened by Qentinel Finland’s 104 experts. The large-scale remote work experiment caused by the Covid-19 pandemic shows that a more location-independent approach is possible. Not all work can continue to be done remotely and virtually, but in an industry plagued by a shortage of experts, new opportunities open up for us to find suitable expertise for our customers’ needs.In December, we updated our strategy for the period of 2021–2023 as well as our long-term financial targets. With the strategy update, we affirmed our vision to be one of the most significant digital transformation consultancies in Europe.In December, we also specified the schedule to transfer to Nasdaq Helsinki main market, which will take place during March. The transition will improve our visibility and awareness of us as well as elevate us both domestically and internationally to a new reference group in the eyes of investors, customers, partners.In 2020, Gofore faced significant changes that we will manage and make the most of. The year was demanding for us goforeans and our customers, but cooperation and trust in the future took us forward. Together, we will continue to build a better world; this work’s motto is well aligned with our new brand promise “Pioneering an ethical digital world”.I would like to thank all our stakeholders, especially goforeans and customers, for 2020 – the new year has begun, and I believe that 2021 will be a successful year!Strategy
Gofore published its updated strategy for 2021–2023 and long-term financial targets on 16 December 2020. The company’s strategy was presented in more detail at the Capital Markets Day held on 14 January 2021.Gofore’s vision is to be one of the most significant digital transformation consultancies in Europe.Business growth is pursued in three areas: continued growth in Finland, growth in international
markets and growth through acquisitions.1. Continued growth in Finland
In the public sector in Finland, Gofore aims to continue developing into a leading provider of expert services for digital transformation and further strengthening its strong position. Finland is one of the world’s leading countries in public digital services, and significant investments in the development of digital services are expected to continue. Gofore strives to support its public sector customers with its extensive and continuously evolving expertise and service offering. Gofore strives to develop its service capabilities to be the most attractive provider of major public sector development projects, providing exceptional customer experience and success stories.Gofore of the future is an international and diverse company that is able to serve its large international customers in the best possible way. International business is directed to both the public and private sector IT service markets.Gofore actively seeks possibilities to acquire internationally operating private and public sector customers that the company is able to serve with its current strengths and existing resources independently of location.The company has identified Germany as an attractive growth market in which it wants to increase its presence both through organic growth and acquisitions. Germany has a large industrial manufacturing sector where the company can take advantage of its existing industry experience to serve its customers. In Germany, Gofore has an established business and offices in Munich and Brunswick. Sales and customer relationship development in the German-speaking market are carried out by the local organisation.The aim is to achieve international growth at the same pace as the Group’s net sales growth.3. Growth through acquisitions
As part of its growth, Gofore aims to make acquisitions that support its strategy. Gofore has an excellent track-record in acquisitions during 2017–2020: acquisitions have improved the company’s expertise and ability to serve its customers, and increased shareholder value. Gofore continues to develop its capabilities to make successful acquisitions.In the coming years, approximately half of the growth will be targeted through business and company acquisitions that are well suited to Gofore’s business model and culture. Through acquisitions Gofore aims to achieve expertise that supports its strategy, expand its customer base or strengthen its geographical position, while simultaneously ensuring synergies.In the private sector, the pandemic has had a greater direct impact, which has been reflected as delays in development projects and cancellations of projects in single cases. Disruptions in customers’ own business have also affected customer prices.Financial review 1 January–31 December 2020Revenue developmentJanuary–December 2020
In January–December 2020, revenue grew by 21.7% from the previous year, amounting to EUR 78.0 (64.1) million. The increase was mainly due to the increase in demand, but also to the acquisition of Qentinel Finland Oy as of September.74% (70%) of Gofore’s revenue came from public sector customers, amounting to EUR 57.8 million (EUR 44.8 million) and 26% (30%) from private sector customers, amounting to EUR 20.1 million (EUR 19.3 million). In geographical terms, 90% (91%) of combined revenue came from Finland, amounting to EUR 69.9 million (EUR 58.6 million), and a total of 10% (9%) from other countries, amounting to EUR 8.1 million (EUR 5.5 million). Subcontracting accounted for 19% (16%) of revenue, amounting to EUR 14.6 million (EUR 9.9 million).Monthly development of revenue in January–December 20201 Revenue, MEUR (revenue in 2019) indicates the revenue (unaudited) for the month concerned.
2 The number of employees at the end of the review period.
3 Overall capacity, FTE (Full Time Equivalent) figure shows the overall capacity of the Group’s personnel, converted into a value corresponding to the number of full-time employees. The figure includes the entire personnel, regardless of their role. The figure is not affected by annual leave, time-off in lieu of overtime, sick leave or other short-term absences. Part-time agreements and other long-term deviations from normal working hours reduce the amount of overall capacity in comparison with the total number of employees. The capacity of acquired companies personnel is included as of the acquisition date.
4 Subcontracting, FTE (Full Time Equivalent) figure shows the overall amount of subcontracting used in invoiced work, converted into a value corresponding to the number of full-time employees. Subcontracting used by acquired companies is included as of the acquisition date.July–December 2020
July–December 2020 revenue grew 32.5% from the comparison period in the previous year, to EUR 40.6 million (EUR 30.6 million). The growth reflected the acquisition of Qentinel Finland Oy.Operating profit (EBIT) in January–December 2020 was EUR 8.8 million (EUR 6.6 million), corresponding to 11.2% of revenue (10.3%).Due to the growth of the number of personnel, the Group’s employee benefit expenses increased to EUR 44.4 million (EUR 37.1 million) in January–December 2020, corresponding to 57.0% of revenue (57.8%).Other operating expenses amounted to EUR 9.8 million (EUR 9.4 million). The largest expense items were other indirect employee expenses, facility expenses and expenses for machinery and equipment. Other operating expenses for the review period include a non-recurring expense of EUR 0.6 million related to the divestment of the operations of the UK subsidiary (Gofore UK Ltd.).Cash flow from financing activities during the period was EUR -1.8 million (EUR -2.0 million), including dividends paid of EUR -2.8 million, repayment of lease liabilities EUR -2.2 million, proceeds from borrowings EUR 10.0 million, repayment of borrowings of EUR -6.4 million and treasury shares acquired of EUR -0.5 million.Personnel and offices
At the end of December 2020, the Group employed 724 (582) people. The number of employees grew due to the organic growth of the business and the acquisition of Qentinel Finland Oy. A total of 692 (540) people worked in Finland and 32 (42) in other operating countries. In Finland, the company has offices in Helsinki, Espoo, Jyväskylä, Tampere and Turku. The offices abroad are located in Brunswick and Munich in Germany, Madrid in Spain and Tallinn in Estonia.Elja Kirjavainen was appointed Director, Digital transformation and a member of the Group Executive Team on 17 April 2020. He took up his position and as a member of the Group Executive Team on 1 May 2020.Resolutions of the Annual General Meeting
The Annual General Meeting of Gofore Plc was held in Tampere on 29 April 2020. The Annual General Meeting resolved to adopt the financial statements for 2019, and discharged the members of the Board of Directors and the CEO from liability for the financial period 2019. The Annual General Meeting authorised the Board of Directors to resolve on the acquisition of the company’s own shares and the issuance of shares as well as the issuance of option rights and other special rights entitling to shares. Additionally, the Annual General Meeting adopt the remuneration policy for governing bodies of the company.
The Annual General Meeting resolved, in accordance with the proposal of the Nomination Committee, that the members of the Board be paid a fee of EUR 1,500 per month and the Chairman of the Board EUR 2,500 per month and, in addition, the Chairman of the Audit Committee be paid a fee of EUR 500 per month provided that he or she does not act as the Chairman of the Board at the same time. The Annual General Meeting elected five members to the company’s Board of Directors. Timur Kärki, Sami Somero and Stefan Baggström were re-elected as members of the Board of Directors and Mammu Kaario and Juha Eteläniemi were elected as new members. The Board of Directors elected Timur Kärki to continue as its Chairman. The Board of Directors’ term of office will continue until the end of the next Annual General Meeting.
KPMG Oy Ab was elected as the company’s auditor for a term that will continue until the end of the next Annual General Meeting. KPMG Oy Ab has announced that Lotta Nurminen, APA, will be the auditor with principal responsibility.
The Annual General Meeting resolved that a Shareholders’ Nomination Board be established, and the rules of procedure of the Shareholders’ Nomination Board as proposed by the Board of Directors were approved. Shares and shareholders
At the end of December 2020, Gofore Plc’s registered share capital amounted to EUR 80,000.00 (EUR 80,000.00), which corresponded to a total of 14,036,927 (14, 012,802) shares. At the end of the review period, the company held 0 (174) own shares.At the end of December 2020, the company had 5,101 (2,771) registered shareholders. There were 298,497 (54,753) nominee-registered shares, which corresponds to approximately 2.1% (0.4%) of total shares. Share price development and share trading
During 2020, 2.95 (1.22) million of the company’s shares were traded, which is approximately 21% (9%) of the average number of shares outstanding. The total value of the shares traded was EUR 30.0 (9.8) million.Repurchase of own shares
In the review period, Gofore carried out the repurchase programme of the company’s own shares based on the authorisation given by the 2019 Annual General Meeting (26 March 2019). The shares were acquired between 26 March 2020 and 30 June 2020. During this time, the authorisation given by the Annual General Meeting held on 29 April 2020 revoked the authorisation given by the Annual General Meeting held on 26 March 2019. During the repurchase program, the company acquired 57,839 of its own shares at an average price of EUR 7.08. The shares were acquired in public trading on Nasdaq Helsinki Oy at the market price at the time of acquisition. The purpose of the repurchase of shares is to use the shares as a part of purchase price in potential corporate acquisitions, as a part of the company’s share-based incentive schemes, and otherwise to be transferred, held by the company, or nullified. Share-based commitment and incentive plans
In connection with the personnel offering in the company’s listing on First North Growth Market Finland in 2017, a Matching Share plan was offered for personnel. In the plan, employees who subscribed for shares in the personnel offering would receive one matching share for every three shares subscribed, provided they remain employed by the Group three years after the start of share subscription, and that they have held the acquired shares for the entire period. In autumn 2018, Gofore’s Board of Directors resolved to launch the CrewShare share savings plan for Group personnel. The Board of Directors decides annually on any savings periods to be initiated under the plan. As an incentive for participants in the plan, Gofore will offer one matching share per three shares acquired with savings after a two-year share ownership period. Dividends paid on shares purchased with savings are automatically used to purchase the shares on the next possible purchase date.At the end of 31 December 2020, there were three savings periods in the CrewShare share savings plan. The first savings period was from 1 November 2018 to 28 February 2019. On 31 December 2020, the company had 128 employees entitled to a total of 5,109 matching shares. In the second savings period from 1 March 2019 to 29 February 2020, there were 152 employees entitled to 14,743 matching shares on 31 December 2020.On 12 February 2020, the company’s Board of Directors decided on the third savings period to be launched under the share savings plan for 2020–2021. The third savings period was from 1 March 2020 to 28 February 2021.On 11 September 2020, the company’s Board of Directors decided to issue a total of 24,125 new shares as part of the CrewShare share savings plan. The new shares are the matching shares acquired for the participants with the savings accumulated during the savings period from 1 March to 31 August 2020. The shares were subscribed for at a price of EUR 7.9466 per share, based on the volume-weighted average share price on Nasdaq Helsinki Oy’s First North Growth Market Finland in the period 1–31 August 2020 and a 10% discount calculated therefrom. As at 31 December 2020, 171 Group employees entitled to 7,914 matching shares participated in the share savings plan.Significant events after the review period
As part of the updated company strategy, announced on 16 December 2020, Gofore also announced nominations to the Group Executive Team as follows, as of 1 January 2021: Kalle Mäki, General Counsel; Sanna Hilden, Director, People Operations, and Miika Nurminen, Director, Digital Quality Assurance and CEO of Qentinel Finland Oy.Gofore Group’s revenue in January 2021 was EUR 7.5 million (EUR 6.1 million). The number of employees at the end of the review period was 727. The number of working days in Finland during the period was 19. The total capacity Full Time Equivalent (FTE) was 679 and the subcontracting FTE 109.1 Revenue, MEUR (revenue in 2020) indicates the revenue (unaudited) for the month concerned.
2 The number of employees at the end of the review period.
3 Overall capacity, FTE (Full Time Equivalent) figure shows the overall capacity of the Group’s personnel, converted into a value corresponding to the number of full-time employees. The figure includes the entire personnel, regardless of their role. The figure is not affected by annual leave, time-off in lieu of overtime, sick leave or other short-term absences. Part-time agreements and other long-term deviations from normal working hours reduce the amount of overall capacity in comparison with the total number of employees.
4 Subcontracting, FTE (Full Time Equivalent) figure shows the overall amount of subcontracting used in invoiced work, converted into a value corresponding to the number of full-time employees.Short-term risks and uncertainties
The most significant short-term risks are related to changes caused by the coronavirus pandemic in the company’s operating environment. The protracted pandemic situation creates uncertainty regarding the development of customer demand and the well-being of the company’s personnel. Apart from the pandemic situation, the company’s short-term risks are similar in relation to previous years.Board of Directors’ proposal for the distribution of dividend
The parent company’s distributable equity as at 31 December 2020 amounted to EUR 36.3 million, including the profit for the period, EUR 6.3 million.No material changes have taken place in the company’s financial position after the balance sheet date, nor does the solvency test referred to in chapter 13, section 2 of the Limited Liability Companies Act affect the amount of distributable funds.The dividend will be paid to a shareholder who is registered in the company’s shareholder register maintained by Euroclear Finland Oy on the record date for the dividend payment, 30 March 2021. No dividend will be paid on treasury shares held by the company on the record date. It is proposed that the dividends be paid on 8 April 2021.Publication of Annual Report, and Annual General Meeting
The Annual Report for the year 2020 will be published on 5 March 2021, and it includes the Board of Directors’ Report, Auditor’s Report and financial statements 2020. Additionally, a separate Remuneration Statement will be published.The Annual General Meeting will be held on Friday, 26 March 2021.Financial calendar in 2021
During the year 2021, Gofore Plc will publish its financial reviews as follows: In addition, Gofore publishes a monthly business review that includes the number of employees and monthly revenue with comparable information, management’s assessment of the development of the business during the review period, and other key figures that facilitate the monitoring of the company’s growth strategy. Tables section (IFRS)
This financial statements release was prepared applying the same accounting principles and calculation formulas than in the audited 2020 financial statements. The financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS). Gofore adopted IFRS in its reporting for the financial period ended 31 December 2020. Presented half-year 2020 figures are unaudited. Consolidated Statement of Financial Position
Further enquiries:
Mikael Nylund, CEO, Gofore Plc
tel. +358 40 540 2280
mikael.nylund@gofore.comAttachmentGofore Plc Financial Statements Release 2020
