Netcompany – Interim report for the six months ended 30 June 2021
Netcompany continues to grow and lifts expectations to full year revenue growth.
Company Announcement
No. 14/2021
18 August 2021
Summary
In Q2 2021, revenue grew organically by 21.2% in constant currencies to DKK 818.6m compared to the same period last year. In reported currencies revenue grew 22.4%.
Adjusted EBITA grew 3.3% to DKK 166.7m corresponding to an adjusted EBITA margin of 20.2% compared to 23.9% in Q2 2020.
Average number of full-time employees grew by 575, equal to an increase of 21.6% to 3,238 compared to 2,663 in Q2 2020.
Free cash flow was negative DKK 10.2m, impacted by a voluntary one-off payment to the Danish Vacation Fund of DKK 96.9m due to the new Danish Holiday Act. Normalised for the payment to the Danish Vacation Fund and on account income tax payments free cash flow was DKK 47.7m.
By the start of July 2021, revenue visibility for the full year increased by 23.4% to DKK 3,064.5m compared to DKK 2,483.6m at the beginning of July 2020 of which DKK 1,681.8m reflects realised revenue in the first half of 2021.
For 2021, Netcompany lifts expectations to organic revenue growth in constant currencies to be around 18%-20%. Netcompany still expects adjusted EBITA margin in constant currencies to be around 23-25%.
“In Q2 2021, we grew 21% and continued the strong momentum from the first quarter of 2021.
With the growth achieved in both the UK and Norway we see that the increased usage of resources across the Group was the right investment made to support long term sustainable growth.
Our continued growth is dependent on our ability to maintain and attract talent and I am pleased to have welcomed more than 350 new Netcompany employees to our large and growing family during the quarter.
As COVID-19 restrictions ease, we have increased our activities with our employees, and I am delighted to see more and more of our talented employees and meet our customers in face-to-face engagements again.
I am excited about the outlook for Netcompany and look forward to continue to expand our presence in Northern Europe together with our employees, customers and other key stakeholders.”
André Rogaczewski, Netcompany CEO and Co-founder
Q2 Performance highlights
- Revenue increased by 22.4% to DKK 826.7 in reported currencies and by 21.2% in constant currencies.
- Gross profit margin was 35.5% against 38.4% in Q2 2020.
- Adjusted EBITA margin was 20.2% against 23.9% in Q2 2020.
- Free cash flow was DKK -10.2m and was negatively impacted by a one-off payment to the Danish Vacation Fund of DKK 96.9m. Adjusted for this, free cash flow was DKK 86.8m.
- Cash conversion rate was -8.5%. Adjusted for the payment to the Danish Vacation Fund and on account income tax payments conversion rate was 39.9%.
- Debt leverage to 12 months rolling adjusted EBITA was 0.8.
Financial overview
For full details on financial performance, see enclosed Company announcement Q2 2021.
Conference call details
In connection with the publication of the results for Q2 2021, Netcompany will host a conference call on 18 August 2021 at 11.00 CEST.
The conference call will be held in English and can be followed live via the company’s website; www.netcompany.com.
Dial-in details for investors and analysts:
DK: +45 78 15 01 09
UK: +44 333 300 9262
US: +1 631 913 1422 (PIN: 40313976#)
Webcast Player URL: https://streams.eventcdn.net/netcompany/2021q2
Additional information
André Rogaczewski, CEO
+45 70 13 14 40
Thomas Johansen, CFO
+45 51 19 32 24
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