Netcompany publishes Interim report for the 12 months ended 31 December 2021

Netcompany grew revenue by 27% and realised 21.8% margin in 2021 – in line with expectations

In Q4 2021, Netcompany grew revenue in constant currencies to DKK 1,140.8m – equal to 47.6% growth compared to Q4 2020. In reported currencies, revenue grew by 49.1%. Of the total revenue growth, 37 percentage points was non-organic related to the acquisition of Intrasoft International S.A.

Adjusted EBITDA was DKK 238.4m in reported currencies, which was in line with results in Q4 2020. Adjusted EBITDA margin for Netcompany Core [1] was 24.3% and 9.7% for Netcompany-Intrasoft.

Adjusted EBITA was DKK 210.3m in Q4 2021 compared to DKK 223.5m in Q4 2020. Adjusted EBITA margin was 18.3% including results from Netcompany-Intrasoft, which diluted margins by 3.6 percentage points.

Average number of full-time employees in Netcompany Core grew 513 from 2,996 in Q4 2020 to 3,509 in Q4 2021, while the acquisition of Intrasoft added another 2,862 FTE. End of 2021, total FTE´s for the Group was 6,380.

For the full year, Netcompany realised total revenue growth of 27.9% in reported currencies, which resulted in total reported revenue of DKK 3,623m for the year. In constant currencies revenue grew 27% – in line with guidance for the year – of which 10.1 percentage points was non-organic related to the acquisition of Intrasoft International in 2021.

For 2021, adjusted EBITDA for the Group was 24.2%, which was slightly above guidance. For Netcompany-Intrasoft, adjusted EBITDA was 9.7%, which was above guidance. For Netcompany Core adjusted EBITA was 23.1% – in line with guidance.

Free cash flow for the year was DKK 408m compared to DKK 557m in 2020. Normalised cash conversion ratio was 94.3%. Cash and cash equivalents increased by around DKK 100m.

Revenue visibility increased by 79.4% to DKK 3,824.8m for 2022 compared to DKK 2,131.7m for 2021. Netcompany Core accounts for DKK 2,488.1m, which is an increase of 16.7% compared to 2021. Netcompany-Intrasoft accounts for DKK 1,336.6m.

For 2022, Netcompany expects revenue growth in constant currencies of between 48-56%, of which 13-18 is expected to be organic.

Adjusted EBITDA margin is expected to be above 20% and adjusted EBITA margin for Netcompany Core is expected to be above 23%.

[1] Netcompany Core is defined as Group less Netcompany-Intrasoft