Talenom Plc’s Financial Statement Release 2022: Net sales growth continued as strong and internationalisation progressed in a digitalising Europe
Talenom Plc, Financial Statement Release 31 January 2023 at 9:00 EET
Talenom Plc’s Financial Statement Release 2022: Net sales growth continued as strong and internationalisation progressed in a digitalising Europe
January–December 2022 in brief
- Net sales EUR 102.1 million (82.8), growth 23.3% (27.1)
- EBITDA EUR 32.4 million (27.7), 31.7% (33.4) of net sales
- Operating profit (EBIT) EUR 15.3 million (14.8), 15.0% (17.8) of net sales
- Net profit EUR 11.8 million (10.8)
- Earnings per share EUR 0.27 (0.25)
- Board of Directors’ dividend proposal EUR 0.18 (0.17) per share
October–December 2022 in brief
- Net sales EUR 26.3 million (21.8), growth 21.1% (32.2)
- EBITDA EUR 7.0 million (6.6), 26.4% (30.4) of net sales
- Operating profit (EBIT) EUR 2.2 million (2.8), 8.3% (12.8) of net sales
- Net profit EUR 1.8 million (1.9)
- Earnings per share EUR 0.04 (0.04)
Guidance for 2023
Talenom estimates that 2023 net sales will be about EUR 120–130 million and that its euro-denominated EBITDA and operating profit will grow from 2022.
Key figures
| Group | 1–12/2022 | 1–12/2021 | Change, % | 10–12/2022 | 10–12/2021 | Change, % |
| Net sales, EUR 1,000 | 102,107 | 82,808 | 23.3% | 26,344 | 21,756 | 21.1% |
| Net sales, increase % | 23.3% | 27.1% | 21.1% | 32.2% | ||
| EBITDA, EUR 1,000 | 32,394 | 27,662 | 17.1% | 6 967 | 6,608 | 5.4% |
| EBITDA of net sales, % | 31.7% | 33.4% | 26.4% | 30.4% | ||
| Operating profit (EBIT), EUR 1,000 | 15,266 | 14,763 | 3.4% | 2,199 | 2,791 | -21.2% |
| Operating profit (EBIT), as % of net sales | 15.0% | 17.8% | 8.3% | 12.8% | ||
| Return on investment (ROI), % (rolling 12 months) | 14.0% | 17.7% | 14.0% | 17.7% | ||
| Cash flow from operations, EUR 1,000 | 27,448 | 25,582 | 7.3% | |||
| Interest-bearing net liabilities, EUR 1,000 | 54,404 | 39,240 | 38.6% | |||
| Net gearing ratio, % | 97.1% | 87.8% | ||||
| Equity ratio, % | 35.9% | 38.1% | ||||
| Net investments, EUR 1,000 | 40,868 | 37,957 | 7.7% | 8,949 | 6,112 | 46.4% |
| Liquid assets, EUR 1,000 | 15,970 | 10,121 | 57.8% | 15,970 | 10,121 | 57.8% |
| Earnings per share, EUR | 0.27 | 0.25 | 7.2% | 0.04 | 0.04 | -3.8% |
| Weighted average number of shares during the period | 44,384,390 | 43,462,583 | 2.1% | 44,384,390 | 43,639,652 | 1.7% |
| Net profit, EUR 1,000 | 11,801 | 10,794 | 9.3% | 1,837 | 1,877 | -2.1% |
CEO Otto-Pekka Huhtala
In 2022, the economic environment changed rapidly with COVID subsiding, the war in Ukraine, accelerating inflation and rising interest rates. Decisions were taken in Europe on the mandatory introduction of the e-invoicing directive in coming years, which we believe will accelerate the digital transformation of our industry. We want to digitalise the accounting services industry in Europe. One example is the expansion to Italy that we announced in late 2022.
Last year our net sales grew by 23.3% (27.1) to EUR 102.1 million (82.8). The growth was based on several acquisitions in Sweden and Spain and strong organic growth in Finland. EBITDA increased to EUR 32.4 million (27.7) and the EBITDA margin was still excellent at 31.7 (33.4). Operating profit increased to EUR 15.3 million (14.8) and the EBIT margin was 15.0 (17.8). Relative profitability was weakened by our investments during the year, which will enable strong profitable growth in line with our strategy in the future. We acquired a platform business in Spain, continued developing our software in a more customer-friendly direction, started implementing our own software and strengthened our sales organisation in Sweden. In addition, we carried out a brand reform, developed banking services forward as planned, and strengthened the organisation to support faster international growth. The investments together with increased depreciation burdened the result especially towards the end of the year.
In Finland, net sales grew by 12.9% (17.1) to EUR 81.0 million (71.8). The EBITDA margin was excellent at 38.6 (37.5). The excellent performance of the Finnish business continued.
Growth still continued as very strong in Sweden. Net sales increased by 81.8% (177.5) to EUR 19.4 million (10.7) and EBITDA was 8.4% (7.1). The Swedish business was in a phase of rapid growth and development. Integration work accelerated and implementation of the own platform started, which burdened profitability. The implementation of the platform will have a positive impact on the result in the longer term.
In Spain, we achieved a good position and lay the foundation for a strongly digitalising market. We acquired our own digital distribution channel and platform to make daily life easier for our customers. In addition, we strengthened our own service production through acquisitions to accompany the existing strong expert unit. Preconditions for strong acceleration of both organic and acquisition-driven growth are in place. This will decrease the Group's profitability during 2023 but will open good growth opportunities in a large market.
We enter the new year with a positive outlook. At the end of January 2023, we will publish a new unified brand and product offering in Finland, Sweden and Spain. Last year, we made a major change in our management structures, strengthening a unified way of operating in Talenom and scaling our business to faster growth. Strategic themes for the new year include accelerating digital sales, distributing banking services, implementing systems in Sweden, and quicker improvement of profitability in acquisition targets. We estimate that our 2023 net sales will be about EUR 120–130 million and that euro-denominated EBITDA and operating profit will grow from 2022. We follow the development of inflation and the interest market. Talenom's inflation resilience is good and debt relative to EBITDA is moderate.
I would like to thank our customers for their confidence in us, our excellent personnel for their commitment and our partners for good cooperation in the past year.
Board of Director's proposal concerning the result for the period
The Board of Directors proposes that the parent company's profit for the financial year EUR 10,899,822.70 is transferred to the retained earnings/loss account. The Board of Directors proposes that a dividend of EUR 0.18 (0.17) per share be paid.
The company’s financial position has not changed substantially since the end of the fiscal year.
Webcast
CEO Otto-Pekka Huhtala, CFO Matti Eilonen and CMO Tuomas Iivanainen will present the main points of the review for analysts, investors and media live on a webcast today on 31 January 2023 at 10:00 EET.
The webcast will be held in English. Participants can ask questions during the webcast via the chat function of the video platform in both Finnish and English. A recording of the webcast will be available after the event on the company website http://investors.talenom.com/en
You can watch the webcast online at https://talenom.videosync.fi/financial-statement-2022
The presentation materials will be published before the start of the briefing on the company’s website at http://investors.talenom.com/en
Talenom Plc
Board of Directors
Further information:
Otto-Pekka Huhtala
CEO, Talenom Plc
+358 40 703 8554
[email protected]
Talenom in brief
Talenom is an agile and progressive accounting firm established in 1972. Our business idea is to make daily life easier for entrepreneurs with the easiest-to-use digital tools on the market and highly automated services. In addition to comprehensive accounting services, we support our customers’ business with a wide range of expert services, as well as financing, account and payment traffic services. Our vision is to provide superior accounting, account and payment traffic services for SMEs.
Talenom’s growth history is strong – average annual net sales growth was approximately 17% between 2005 and 2022. In 2022, Talenom’s net sales was some EUR 102 million and the company has more than 1,300 employees in Finland, Sweden, Spain and Italy at the end of the year. Talenom’s share is quoted on the Main Market of Nasdaq Helsinki. Read more: investors.talenom.com/en
Attachment
