Talenom Plc, Stock exchange release, 19 July 2024 at 9:00 EEST
Talenom Plc Half-Year Financial Report 2024: EBITDA increased by 14.6% and strategy implementation progressed as planned
January-June 2024 in brief
- Net sales EUR 68.0 million (63.7), growth 6.7% (22.1)
- EBITDA EUR 19.7 million (17.2), 29.0% (27.0) of net sales
- Operating profit (EBIT) EUR 8.4 million (7.1), 12.3 % (11.2) of net sales
- Net profit EUR 4.7 million (4.2)
- Earnings per share EUR 0.10 (0.09)
April-June 2024 in brief
- Net sales EUR 33.9 million (32.4), growth 4.5% (20.1)
- EBITDA EUR 10.3 million (8.9), 30.3 % (27.3) of net sales
- Operating profit (EBIT) EUR 4.5 million (3.7), 13.3% (11.3) of net sales
- Net profit EUR 2.7 million (2.2)
- Earnings per share EUR 0.06 (0.05)
Key figures
| Group | 1-6/2024 | 1-6/2023 | Change, % | 4-6/2024 | 4-6/2023 | Change, % |
| Net sales, EUR 1,000 | 67,971 | 63,720 | 6.7% | 33,876 | 32,409 | 4.5% |
| Net sales, growth % | 6.7% | 22.1% | 4.5 % | 20.1% | ||
| EBITDA, EUR 1,000 | 19,741 | 17,228 | 14.6% | 10,253 | 8,862 | 15.7% |
| EBITDA of net sales, % | 29.0% | 27.0% | 30.3% | 27.3% | ||
| Operating profit (EBIT), EUR 1,000 | 8,356 | 7,123 | 17.3% | 4,501 | 3,665 | 22.8% |
| Operating profit (EBIT), as % of net sales | 12.3% | 11.2 % | 13.3% | 11.3% | ||
| Return on investment (ROI), % (rolling 12 months) | 6.5% | 9.7% | 6.5% | 9.7% | ||
| Cash flow from operations, EUR 1,000 | 18,157 | 14,932 | 21.6% | |||
| Interest-bearing net liabilities, EUR 1,000 | 83,899 | 70,438 | 19.1% | 83,899 | 70,438 | |
| Net gearing ratio, % | 160.1% | 125.7 % | 160.1% | 125.7% | ||
| Equity ratio, % | 28.7% | 32.8 % | 28.7% | 32.8% | ||
| Net investments, EUR 1,000 | 13,125 | 24,848 | -47.2% | 4,767 | 12,207 | -61.0% |
| Liquid assets, EUR 1,000 | 12,314 | 10,789 | 14.1% | 12,314 | 10,789 | 14.1% |
| Earnings per share, EUR | 0.10 | 0.09 | 10.1% | 0.06 | 0.05 | 21.9% |
| Weighted average number of shares during the period | 45,467,837 | 45,004,577 | 1.0% | 45,477,972 | 45,115,100 | 0.8% |
| Net profit, EUR 1,000 | 4,692 | 4,219 | 11.2% | 2,657 | 2,162 | 22.9% |
Guidance for 2024 unchanged
Talenom estimates that 2024 net sales will be about EUR 130-140 million, EBITDA EUR 34-40 million and operating profit EUR 14-17 million.
CEO Otto-Pekka Huhtala
The first half of the year progressed well. We continued to implement this year's strategic priorities. This year these include improving operational efficiency, launching our platform in Sweden and accelerating organic growth. Our main objective was to improve profitability, which has materialized as planned. In Sweden, we were also able to migrate customers to our own platform in line with our targets. Our goal is to migrate at least 50% of our regular reporting customers to our own systems during 2024. Based on the experience in Finland, the introduction of Talenom's processes and platform enables reducing routine work time by up to 75%. To strengthen organic growth, we continued to develop the digital purchase path and made key hires to support growth.
Net sales grew by 6.7% (22.1) to EUR 68.0 million (63.7) in the first half of 2024. Compared to the comparison period, the acquisition pace has been significantly slowed down in line with plans. The economic downturn had a negative impact on the business volumes of our customers in Finland and Sweden. This resulted in a reduction in transaction volumes for Talenom, which resulted in a decrease in customer invoicing. Business closures and bankruptcies were higher than in the comparison period. Successful new customer acquisition compensated for the effects of the weak economic cycle.
Profitability improved. EBITDA for January-June rose by 14.6% to EUR 19.7 million (17.2), while operating profit increased by 17.3% to EUR 8.4 million (7.1). Profitability was significantly improved in Finland with the efficiency measures initiated in 2023. Simultaneously, we have prioritized customer retention to be better positioned when the economic upswing starts. In Sweden, the introduction of our own software weighed on profitability. We completed several integration projects that engaged the organization. Spanish business operations have grown to more than 10% of the Group's net sales and profitability was significantly improved as EBITDA increased by approximately EUR 1 million from the comparison period. We expect strong profitability development and growth to continue in Spain in the future.
We are positive about the future and believe in our strengths, which include providing easy routines to the customer, high automation and customer orientation. Talenom's approach combines accounting, payment and card services with a proprietary software platform in a unique way. Over 90% of net sales are recurring, providing a solid foundation for the company's long-term development.
Webcast
CEO Otto-Pekka Huhtala and CFO Matti Eilonen will present the main points of the review in a live webcast today on 19 July 2024 at 10:00 EEST (in Finnish) and at 12:00 EEST (in English). Recordings of the events will be published on Talenom's website https://investors.talenom.com/fi/ and https://investors.talenom.com/en
You can watch the webcast live in Finnish at 10:00 EEST at https://talenom.videosync.fi/2024-h1-tulosjulkistus
You can watch the webcast live in English at 12:00 EEST at https://talenom.videosync.fi/2024-h1-results
The presentation materials will be published before the start of the briefing on the company's website.
Talenom Plc
Board of Directors
Further information:
Otto-Pekka Huhtala
CEO, Talenom Plc
+358 40 703 8554
otto-pekka.huhtala@talenom.fi
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 2023. In 2023, Talenom's net sales was some EUR 122 million and the company had 1,560 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
