Vitec Software Group AB Year-end report January - December 2021
Summary of interim period, January–December 2021
• Net sales SEK 1,571 million (1,313), an increase of 20%
• Recurring revenues SEK 1,324 million (1,080), an increase of 23% including 7% organic
• EBITA was SEK 440 million (345), with an EBITA margin of 28% (26)
• Operating profit was SEK 283 million (222), with an operating margin of 18% (17)
• Earnings per share before dilution SEK 6.14 (4.93)
• Cash flow from operating activities SEK 488 million (436)
• The Board of Directors propose increased dividend of SEK 2.00 per share (1.64)
Summary of interim period, October–December 2021
• Net sales SEK 421 million (362), an increase of 16%
• Recurring revenues SEK 350 million (285), an increase of 23% including 6% organic
• EBITA was SEK 113 million (98), with an EBITA margin of 27% (27)
• Operating profit was SEK 70 million (65), with an operating margin of 17% (18)
• Earnings per share before dilution SEK 1.59 (1.43)
• Cash flow from operating activities SEK 58 million (61)
Stable year and new targets
As we look back at 2021, we can once again conclude that Vitec continues to increase both profit and sales at a good pace. Our business model, based on a high proportion of recurring revenues, and our strategy, with a decentralized organization where decisions are made close to the customer and employees, remain in place and have proven to be robust and scalable – even in times of major changes. The Board of Directors proposes a dividend of SEK 2.00 per share, an increase for the twentieth consecutive year. The Board has also decided to update our financial targets by raising the EBIT margin target to at least 20%, while leaving the other targets unchanged.
Revenues rose a total of 20% and the share of recurring revenues rose 23%. The EBITA margin also strengthened during the year to 28% compared with 26% last year. We completed five acquisitions and established a presence outside the Nordic region for the first time through the acquisition of Dutch Vabi. Acquisition activity has been high and we continue to see good opportunities to welcome more companies that fit our criteria. Our strong financial position and preparedness are crucial and were further strengthened by the private placement carried out in August 2021 that raised SEK 920 million for the company before issuing costs and brought in a number of new highly respected institutional owners. Proof of our long-term efforts to create value came at the turn of the year as the Vitec share will now be included in the Nasdaq Stockholm Large Cap beginning in 2022.
During the year, the Board and management conducted a review and in-depth examination of our sustainability work, which culminated in an update of our business description and framework, as well as identification of four focus areas to serve as a starting point for further sustainability work. Our greatest opportunity to have an impact is through our products and we aim to integrate sustainability throughout the value chain in order to continue delivering on our brand promise: To rely on – today and tomorrow. More information on this topic will be provided in our sustainability report in the upcoming annual report.
Finally, I would like to thank both customers and employees for the past year, where Vitec has once again shown that we are well positioned with our business-critical software that helps our customers to improve their business and achieve their goals. Because of this position we remain highly optimistic regarding our potential to continue to grow, just as we have done so successfully in the past.
Olle Backman, CEO
For more information, please contact
Patrik Fransson, Investor Relations, Vitec Software Group AB (publ), [email protected], +46 76 942 85 97
Disclaimer
This information is such information that Vitec Software Group AB (publ) is required to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:00 a.m. (CET) on Friday, February 11, 2022.
About Vitec
Vitec is market leader for Vertical Market Software in the Nordic region. We develop and deliver standard niche software. Vitec grows through acquisitions of well-managed and well-established software companies. The Group's overall processes together with the employees' in-depth knowledge of the customer's local market enables continuous improvement and innovation. Vitec has 1,020 employees, is listed on Nasdaq Stockholm, and had net sales of SEK 1,571 million in 2021. Find more at www.vitecsoftware.com.