Talenom Plc, Inventory change launch on 25 October 2022 at 9:00 EEST
TALENOM PLC BUSINESS REVIEW JANUARY–SEPTEMBER 2022 (UNAUDITED): GROWTH CONTINUED AS STRONG AND STRATEGY IMPLEMENTATION WAS PROMOTED WITH DETERMINATION
JANUARY-SEPTEMBER 2022 IN BRIEF:
- Internet gross sales EUR 75.8 million (61.1), progress 24.1% (25.4)
- EBITDA EUR 25.4 million (21.1), 33.6% (34.5) of internet gross sales
- Working revenue (EBIT) EUR 13.1 million (12.0), 17.2% (19.6) of internet gross sales
- Internet revenue EUR 10.0 million (8.9)
- Earnings per share EUR 0.23 (0.21)
JULY-SEPTEMBER 2022 IN BRIEF:
- Internet gross sales EUR 23.6 million (19.4), progress 21.7% (30.4)
- EBITDA EUR 7.3 million (6.7), 30.8% (34.5) of internet gross sales
- Working revenue (EBIT) EUR 3.1 million (3.4), 13.0% (17.8) of internet gross sales
- Internet revenue EUR 2.2 million (2.5)
- Earnings per share EUR 0.05 (0.06)
KEY FIGURES
| Group | 1–9/2022 | 1–9/2021 | Change, % | 7–9/2022 | 7–9/2021 | Change, % |
| Internet gross sales, EUR 1,000 | 75,763 | 61,052 | 24.1% | 23,575 | 19,364 | 21.7% |
| Internet gross sales, improve % | 24.1% | 25.4% | 21.7% | 30.4% | ||
| EBITDA, EUR 1,000 | 25,427 | 21,077 | 20.6% | 7,272 | 6,679 | 8.9% |
| EBITDA of internet gross sales, % | 33.6% | 34.5% | 30.8% | 34.5% | ||
| Working revenue (EBIT), EUR 1,000 | 13,067 | 11,996 | 8.9% | 3,074 | 3,445 | -10.8% |
| Working revenue (EBIT), as % of internet gross sales | 17.2% | 19.6% | 13.0% | 17.8% | ||
| Return on funding (ROI), % (rolling 12 months) | 14.8% | 17.8% | 14.8% | 17.8% | ||
| Curiosity-bearing internet liabilities, EUR 1,000 | 51,225 | 39,987 | 28.1% | 51,225 | 39,987 | 28.1% |
| Internet gearing ratio, % | 96.0% | 94.0% | 96.0% | 94.0% | ||
| Fairness ratio, % | 35.9% | 38.1% | 35.9% | 38.1% | ||
| Internet investments, EUR 1,000 | 31,919 | 31,846 | 0.2% | 16,481 | 8,392 | 96.4% |
| Liquid belongings, EUR 1,000 | 17,755 | 8,625 | 105.8% | 17,755 | 8,625 | 105.8% |
| Earnings per share, EUR | 0.23 | 0.21 | 9.3% | 0.05 | 0.06 | -15.7% |
| Weighted common variety of shares in the course of the interval | 44,242,888 | 43,403,560 | 1.9% | 44,242,888 | 43,403,560 | 1.9% |
| Internet revenue, EUR 1,000 | 9,964 | 8,941 | 11.4% | 2,165 | 2,530 | -14.4% |
GUIDANCE FOR 2022 UNCHANGED (PUBLISHED 16 DECEMBER 2021)
Talenom expects 2022 internet gross sales to be EUR 100-110 million and working revenue to be EUR 15-18 million.
CEO OTTO-PEKKA HUHTALA: BUSINESS REVIEW JANUARY-SEPTEMBER 2022
Technique implementation progressed quickly in the course of the evaluate interval. We bought an personal software program platform from Spain and began the implementation of personal software program in Sweden. As well as, we expanded our partnership with Fellow Financial institution for distributing financial institution accounts and playing cards to our prospects and made progress in creating the digital distribution channel for small prospects. We additionally continued making acquisitions, investments in natural progress and researching new markets.
In January-September, internet gross sales grew by 24.1% (25.4) to EUR 75.8 million (61.1). The EBITDA margin was 33.6% (34.5) and the EBIT margin 17.2% (19.6). Internet gross sales grew by 21.7% (30.4) in Q3. The EBITDA margin was 30.8% (34.5) and the EBIT margin 13.0% (17.8). On account of robust progress according to our technique our relative profitability deteriorated as a result of integration work elevated, acquired corporations usually have decrease profitability and depreciation on acquisitions and software program elevated. This has been a acutely aware alternative.
In January-September, Finnish internet gross sales grew by 15.1% (15.3) to EUR 61.2 million (53.1). The EBITDA margin was 39.2% (38.0) and the EBIT margin 21.2% (22.4). The robust efficiency of the Finnish enterprise relies on the excessive diploma of automation of personal software program, glorious buyer retention and good inflation resilience. The robust money circulate from Finnish operations permits implementation of the expansion technique.
Progress nonetheless continued as very robust in Sweden. Internet gross sales grew by 75.5% (196.5) in January-September to EUR 13.6 (7.8) million and EBITDA at 10.9% (11.6) was a typical degree for the accounting business. The Swedish enterprise is in a speedy progress and improvement part, the place implementation of personal automation rising software program has commenced as deliberate whereas different integration work continues. Implementation of the software program can have a damaging impact on profitability within the brief time period however will flip optimistic within the longer-term as has been witnessed in Finland. The implementation progresses in levels, one workplace on the time, and for places of work the place the implementation has been accomplished the Finnish profitability degree is aimed for inside three years.
In our Spanish operations, we’ve got achieved a wonderful platform for progress extra rapidly than anticipated. We’ve got our personal digital distribution channel and software program to facilitate the each day lives of shoppers, our personal service manufacturing and a powerful professional unit. All preconditions for robust acceleration of each natural and acquisition-driven progress are in place. Within the brief time period, our investments in Spain weaken the Group’s EBIT, however on the identical time open progress alternative in our largest nation of operation.
We keep our 2022 steering unchanged and count on 2022 internet gross sales to be EUR 100-110 million and the EBIT to be EUR 15-18 million.
STRONGER FOCUS ON ACCELERATING GROWTH – NEW MEDIUM-TERM FINANCIAL TARGETS
The digital transformation within the European accounting and banking sector is going on now, and we wish to be a part of it. The event is supported by laws, market tendencies and adjustments in client behaviour. SMEs at the moment are making monetary administration platform selections at an accelerating tempo and, in our expertise, the brink to vary the chosen platform is sort of excessive.
Talenom’s enterprise is in glorious situation, which offers foundation for accelerating progress within the rising accounting companies market. We’ve got a confirmed technique and a powerful track-record of our efficiency. In 2000-2015, we constructed a powerful place in Finland, the place we managed to mix accounting and software program experience in a novel method. In 2016-2020, the advantages of the digital transformation have been seen as a big enchancment in profitability. Sooner or later, we’ll attempt to develop ever sooner in Europe and replicate the Finnish idea in our working international locations. We imagine that our business is digitalising rapidly in Europe. With the introduction of our personal software program, our purpose is to duplicate Finland’s profitability pattern in Sweden and Spain and in future goal international locations.
At present, we introduced medium-term monetary targets, that are:
- annual internet gross sales progress of over 30%,
- annual EBITDA progress of over 15%,
- rising EBIT in euros and
- rising dividend per share.
We’ve got chosen a path of robust progress based mostly on additional improvement of lively gross sales, digital gross sales and acquisitions. On account of our selections, our relative profitability will lower, however absolute profitability will enhance. We imagine that within the long-term robust progress is within the curiosity of shoppers, staff and shareholders alike.
GROUP’S FINANCIAL PERFORMANCE IN JANUARY–SEPTEMBER 2022
Internet gross sales elevated by 24.1% to EUR 75.8 million (61.1). Some two-thirds of the rise in internet gross sales got here from acquisitions and one-third organically via progress in buyer numbers and gross sales of value-added companies primarily in Finland.
Personnel prices amounted to EUR 39.8 million (32.4) representing 52.6% (53.1) of internet gross sales. Different working bills, together with supplies and companies, totalled EUR 11.1 million (8.1) or 14.6% (13.3) of internet gross sales.
EBITDA elevated by 21.6% to EUR 25.4 million (21.1) or 33.6% (34.5) of internet gross sales. Working revenue elevated by 8.9% to EUR 13.1 million (12.0) or 17.2% (19.6) of internet gross sales. Relative profitability was depressed by decrease profitability of the acquired companies in comparison with different items, integration prices of acquisitions and better depreciation. Internet revenue grew by 11.4% to EUR 10.0 million (8.9).
GROUP’S FINANCIAL PERFORMANCE IN JULY–SEPTEMBER 2022
Internet gross sales elevated by 21.7% to EUR 23.6 million (19.4). Some two-thirds of the rise in internet gross sales got here from acquisitions and one-third organically via progress in buyer numbers and gross sales of value-added companies primarily in Finland.
EBITDA elevated by 8.9% to EUR 7.3 million (6.7) or 30.8% (34.5) of internet gross sales. Working revenue decreased by 10.8% to EUR 3.1 million (3.4) or 13.0% (17.8) of internet gross sales. Relative profitability was depressed by decrease profitability of the acquired companies in comparison with different items, integration and different prices of acquisitions, investments in growth-supporting buildings, and better depreciation on account of elevated software program and acquisition funding ranges. Internet revenue decreased by 14.4% to EUR 2.2 million (2.5).
COUNTRY-SPECIFIC FINANCIAL DEVELOPMENT
FINLAND
| 1–9/2022 | 1–9/2021 | Change, % | 7–9/2022 | 7–9/2021 | Change, % | |
| Internet gross sales, EUR 1,000 | 61,189 | 53,148 | 15.1% | 18,821 | 16,759 | 12.3% |
| Internet gross sales progress, % | 15.1% | 15.3% | 12.3% | 21.2% | ||
| EBITDA, EUR 1000 | 24,017 | 20,205 | 18.9% | 7,013 | 6,380 | 9.9% |
| EBITDA of internet gross sales, % | 39.2% | 38.0% | 37.3% | 38.1% | ||
| Depreciation and amortisations, EUR 1,000 | -11,042 | -8,306 | 32.9% | -3,734 | -2,927 | 27.6% |
| Working revenue, EUR 1,000 | 12,975 | 11,899 | 9.0% | 3,279 | 3,453 | -5,0% |
| Working revenue of internet gross sales, % | 21.2% | 22.4% | 17.4% | 20.6% |
JANUARY-SEPTEMBER 2022
Internet gross sales elevated by 15.1% to EUR 61.2 million (53.1). Two-thirds of internet gross sales progress was natural and one-third got here from acquisitions. Natural progress was pushed by elevated buyer numbers and gross sales of value-added companies.
EBITDA was at a wonderful degree. Automation improvement had a optimistic and acquisitions a damaging impact on relative profitability.
JULY-SEPTEMBER 2022
Internet gross sales elevated by 12.3% to EUR 18.8 million (16.8). Round 80% of the expansion was natural and 20% got here from acquisitions. Natural progress was pushed by elevated buyer numbers and gross sales of value-added companies.
Automation improvement had a optimistic and acquisitions and elevated depreciation ranges a damaging impact on relative profitability.
SWEDEN
| 1–9/2022 | 1–9/2021 | Change, % | 7–9/2022 | 7–9/2021 | Change, % | |
| Internet gross sales, EUR 1,000 | 13,605 | 7,754 | 75.5% | 4,307 | 2,455 | 75.4% |
| Internet gross sales progress, % | 75.5% | 196.5% | 75.4% | 141.8% | ||
| EBITDA, EUR 1000 | 1,481 | 899 | 64.8% | 218 | 327 | -33.2% |
| EBITDA of internet gross sales, % | 10.9% | 11.6% | 5.1% | 13.3% | ||
| Depreciation and amortisations, EUR 1,000 | -1,239 | -768 | 61.5% | -434 | -300 | 44.7% |
| Working revenue, EUR 1,000 | 242 | 131 | 84.3% | -216 | 27 | -902.3% |
| Working revenue of internet gross sales, % | 1.8% | 1.7% | -5.0% | 1.1% |
JANUARY-SEPTEMBER 2022
Internet gross sales elevated by 75.5% to EUR 13.6 million (7.8). Internet gross sales progress got here primarily from acquisitions.
EBITDA elevated from the comparability interval. Relative profitability has been depressed by our gross sales investments, organising assist features, creating administration buildings and implementation of personal software program.
JULY-SEPTEMBER 2022
Internet gross sales elevated by 75.4% to EUR 4.3 million (2.5). Internet gross sales progress got here primarily from acquisitions.
EBITDA declined from the comparability interval. Relative profitability has been depressed by our investments in gross sales, constructing assist features and creating administration buildings. Implementation of personal software program was notably seen in July-September.
OTHER COUNTRIES
| 1–9/2022 | 1–9/2021 | Change, % | 7–9/2022 | 7–9/2021 | Change, % | |
| Internet gross sales, EUR 1,000 | 969 | 150 | 546.2% | 447 | 150 | 198.0% |
| Internet gross sales progress, % | 546.2% | 198.0% | ||||
| EBITDA, EUR 1000 | -71 | -27 | 161.4% | 41 | -27 | -249.5% |
| EBITDA of internet gross sales, % | -7.3% | -18.1% | 9.1% | -18.1% | ||
| Depreciation and amortisations, EUR 1,000 | -79 | -8 | 902.9% | -30 | -8 | 279.3% |
| Working revenue, EUR 1,000 | -150 | -35 | -328.1% | 11 | -35 | 130.6% |
| Working revenue of internet gross sales, % | -15.4% | -23.3% | 2.4% | -23.3% |
JANUARY-SEPTEMBER 2022
Talenom expanded to the Spanish accounting enterprise market via an acquisition in July 2021 and began working there on 1 August 2021. After the deal, we’ve got analysed Spanish accounting processes in additional element. We launched market analysis on how one can utilise our scalable product on the Spanish market and began creating a digital gross sales channel. We carried out the Nomo platform deal that grew to become a part of Talenom as of 1 October 2022. We additionally made two acquisitions to strengthen our accounting enterprise. Along with the agreed transactions, we constantly analysis the market to strengthen our accounting enterprise via acquisitions. We improve our investments in digital gross sales in all our enterprise areas.
INVESTMENTS AND BUSINESS ACQUISITIONS
Internet investments in the course of the evaluate interval totalled EUR 31.9 (31.8) million.
| Investments | 1 Jan–30 Sep 2022 | 1 Jan–30 Sep 2021 | Change |
| New buyer agreements, EUR 1,000 | 2,422 | 2,799 | -377 |
| Software program and digital companies, EUR 1,000 | 8,434 | 8,200 | 234 |
| Acquisitions in Finland, EUR 1,000 *) | 857 | 8,077 | -7,220 |
| Acquisitions overseas, EUR 1,000 **) | 19,623 | 11,719 | 7,904 |
| Different investments | 583 | 1,051 | -468 |
| Whole internet investments, EUR 1,000 | 31,919 | 31,846 | 73 |
*) consists of an estimated EUR 116,000 (770,000) in recorded extra deal costs
**) consists of an estimated EUR 5,184,000 (3,858,000) in recorded extra deal costs
Enterprise acquisitions in the course of the evaluate interval:
- Accodome Oy, Finland
- Tilitoimisto Kuopion Tili-Consults Oy, Finland
- Saarijärven Tilipalvelu Oy, Finland
- PJ Yrityspalvelu Oy, Finland
- ACompany Asesoraria Y Gestion de Empresas SL, Spain
- Tilipalvelu Elisa Ruinu Oy, Finland
Share transactions in the course of the evaluate interval:
- MH Konsult Väst AB, Sweden
- Kjell Wengbrand Redovisnings AB, Sweden
- Lindgren & Lindgren Ekonomi AB, Sweden
- Confido Redovisning AB, Sweden
- Redovisningsbyrån Öckerö AB, Sweden
- Mazars Redovisning AB, Sweden
- Gestoria Teruel SL, Spain
Buy costs, internet gross sales and working revenue of the acquisition targets in the course of the evaluate interval:
| EUR 1,000 | Share transactions | Enterprise acquisitions |
| Whole buy costs | 13,531 | 1,463 |
| Most contingent consideration | 9,625 | 116 |
| Internet gross sales, earlier 12 months at time of buy, complete | 11,981 | 2,597 |
| Working revenue, earlier 12 months at time of buy, complete | 1,595 | 364 |
In acquisitions, a part of the acquisition value was paid with new Talenom Plc shares subscribed for in directed points. A complete of 221,486 shares have been subscribed for in directed share points associated to acquisitions in the course of the evaluate interval
TALENOM’S BUSINESS REVIEW AND STRATEGY REVIEW
Talenom will discuss extra about its Q3 end result, technique and monetary targets in an occasion that begins as we speak, 25 October 2022 at 10:00 EEST. The evaluate will probably be in English and will be adopted both by webcast at https://talenom.videosync.fi/2022-q3 or on the firm’s premises in Sanomatalo (Töölönlahdenkatu 2, 00100 Helsinki).
Pre-registration is required for on-site participation. A recording of the webcast will probably be accessible after the occasion on the corporate’s web site https://sijoittajat.talenom.fi/en/
TALENOM PLC
Board of Administrators
ADDITIONAL INFORMATION:
Otto-Pekka Huhtala
CEO, Talenom Plc
+358 40 703 8554
otto-pekka.huhtala@talenom.fi
Talenom is an agile and progressive accounting agency established in 1972. Our enterprise concept is to make each day life simpler for entrepreneurs with the easiest-to-use digital instruments available on the market and extremely automated companies. Along with complete accounting companies, we assist our prospects’ enterprise with a variety of professional companies, in addition to financing, account and fee visitors companies. Our imaginative and prescient is to supply superior accounting, account and fee visitors companies for SMEs.
Talenom’s progress historical past is powerful – common annual internet gross sales progress was roughly 16.2% between 2005 and 2021. In 2021, Talenom had on common 1,012 staff in Finland, Sweden and Spain at a complete of 52 areas. Talenom’s share is quoted on the Major Market of Nasdaq Helsinki.
Learn extra: sijoittajat.talenom.fi/en/
Source link
