Talenom Plc, inside information 9 October 2024 at 9:00 EEST
Inside information: Talenom is planning to separate the software business into its own company and initiates change negotiations due to this
As a result of an in-depth and comprehensive review, Talenom has decided to update its strategy to accelerate growth and make it more scalable. Our key competitive advantage is to make the daily life of an entrepreneur as easy as possible, automate accounting routines, and our conceptualized operating model that takes care of our customers. We still believe in these. We want to focus on our strengths and also build our future on them.
There are two major changes in the strategy update:
- We are planning to separate the software business into its own company and start offering our software to other accounting firms and their customers. We will seek an international software business expert to lead the company, and until then the unit will be led by Antti Aho, Executive Vice President of Talenom.
- We are planning to focus on our core competencies by transferring all non-accounting services and products like debt collection, banking and financial services to our partners.
The competitive advantage of Talenom's software is based on a package developed over more than two decades, which optimally considers the entire value chain, both in terms of ease of use for the end customer and automation for the producer. The software has been developed on efficient processes, as evidenced by Talenom's excellent profitability in Finland. Selling software as a separate product enables scalable growth, of which we already have positive experiences. So far, the growth of the service business has been limited by the close relationship with our system. In the future, we can grow with the support of two independent pillars.
Our software is particularly suitable for SMEs. In addition to our own software, the service business can use commercial software directed at larger customers. The competitive advantages of the service business are a conceptualized and easily purchased product that is efficiently produced with uniform operating models, high quality and expertise, as well as local and industry-specific service teams. Our customer satisfaction is very high based on a personal, caring and consultative approach.
The net sales of Talenom's software business in Finland is estimated to be approximately EUR 15-20 million. The software has undergone a major architectural reform in recent years, which makes it faster to introduce in new countries. The user volume is expected to grow quickly as Talenom is currently introducing the software in Sweden and Spain to existing customers. The software will be sold directly to individual companies and financial departments, as well as accountants and accounting firms.
To respond to the new strategy, we will initiate change negotiations regarding the planned separation of the software business. The negotiations concern around 180 people in Finland and may lead to the termination of up to 35 employment contracts. We are seeking total annual savings of approximately EUR 2-3 million in investments and direct costs with the reorganization.
More information on the strategy and reorganization will be provided in connection with the Q3 earnings release on 31 October 2024.
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 help entrepreneurs succeed by making their daily lives easier with the market's easiest-to-use digital tools and highly automated personal services. In addition to comprehensive accounting services, we support our customers' business with a wide range of expert services and our partners' services. Our vision is to be the preferred partner in financial management.
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
