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Interim Report Q1 2021: Strong EBITDA growth of 72% In Q1 2021

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The Board of Directors for Wirtek A/S has approved the interim financial statements for first quarter of 2021 for the Wirtek Group today. The detailed interim financial statement for Q1 2021 is attached to this announcement.

CEO Michael Aaen comments:

“Wirtek is off to a good start in 2021, with EBITDA growth of 72% based on organic revenue growth of 11% during Q1.

Q1 2021 has been a very exciting period for Wirtek. In January this year we announced our new Accelerate25 strategy. The financial targets for 2025 are DKK 100m in revenue and DKK 10m in pre-tax earnings.

In February Wirtek announced the signing of a non-binding agreement to acquire a profitable, growth-oriented software company and after a thorough due diligence, the acquisition was successfully completed on April 29.

Consequently, Wirtek significantly raised the outlook for 2021 to a revenue growth of 52% - 59% and EBITDA growth of 55% - 68% compared to 2020.

This acquisition is an important milestone and gives us a head start in achieving our ambitious goals for 2025.”


Financial highlights for the period 1 January – 31 March 2021

TDKK

Q1 2021

Q1 2020

Change

Revenue

7,747

6,992

11%

EBITDA

1,478

861

72%

EBITDA-margin (%)

19.1%

12.3%

55%

Pre-tax profits (EBT)

1,491

824

81%

Cash holdings

5,374

3,705

45%


Strong performance during Q1 2021

Wirtek achieved double-digit organic revenue growth during Q1 2021 compared to Q1 2020, with a very high increase in both profitability and cash holdings. The Board is pleased with the solid organic growth during Q1 this year after a great 2020.

  • Revenue grew organically by 11% to TDKK 7,747 during Q1 2021 compared to revenue of TDKK 6,992 during Q1 2020.

  • EBITDA was TDKK 1,478 in Q1 2021 compared to TDKK 861 for the same period last year, a growth of 72%.

  • An EBITDA-margin of 19.1% for Q1 2021, compared to 12.3% during same period in 2020, shows continued improvement in the operational efficiency and economics of scale of Wirtek.

  • Pre-tax profits (EBT) grew to TDKK 1,491 in Q1 2021 compared to TDKK 824 during Q1 2020, an increase of 81%.

  • Cash flow from operating activities has improved by TDKK 1,504 during first quarter this year.

  • Cash holdings are very solid, at TDKK 5,374 end of Q1 2021, up 45% from Q1 2020.

Outlook for 2021 significantly raised in April

After announcing the completion of the acquisition of CoreBuild SRL and Core Technology Services SRL with effective date 1 June 2021 (see company announcement no. 06/2021), Wirtek has raised the outlook for 2021:

  • Revenue for 2021 was raised to DKK 42.0m – 44.0m (up from previously expected DKK 31.6m – 33.2m), a growth of 52%–59% compared to 2021.

  • EBITDA for 2021 was raised to DKK 5.0m – 5.4m (up from previously expected DKK 3.5m – 3.9m), a growth of 55%–68% compared to 2020.


Further information

  • Michael Aaen, CEO, Wirtek A/S, Phone: +45 2529 7575, E-mail: ir@wirtek.com
    Niels Jernes Vej 10, 9220 Aalborg Ø, www.wirtek.com

  • Kent Mousten Sørensen, Chairman, Wirtek A/S, Phone: +45 2125 9001

  • Per Vestergaard, Certified Advisor, CDI Global, Phone: +45 2176 4317

About Wirtek

Wirtek is a Danish IT outsourcing company. Since 2001, we have been teaming up with companies to help them create great software solutions and electronic equipment products.

Several clients have been with us for more than 10 years, so we can confidently say that in outsourcing, the quality of the relationship matters just as much as the quality of the delivered software. Our clients get state-of-the-art technical solutions and a committed team that works with them as if it were their own.

Wirtek has offices in Denmark (HQ + sales) and four development and test centres in Romania, and we are 150+ colleagues. Wirtek was listed at Nasdaq First North Growth Market Denmark in 2006.

Ticker Code: WIRTEK (DK0060040913)

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