20.2.2025 08:30:01 EET | Gofore Oyj | Financial Statement Release
Gofore Plc
Financial Statements Release
20 February 2025 at 8.30 am EET
Gofore's Financial Statements Release January-December 2024: Last quarter profitability strong considering market situation
October-December 2024
- Net sales declined by -3.6%, were 49.8 (51.7) million euros. Organic growth -3.6%.
- Own personnel capacity continued to increase also in the last quarter of the year compared to previous year.
- Adjusted EBITA 6.7 (8.3) million euros, 13.4% (16.0%).
- Customer prices declined -0.8%, average salary +0.5%.
- Number of employees total of 1,471 (1,465) people, overall capacity standing at 1,539 (1,529).
- The Board of Directors approved of a new strategy, financial targeting and changes in the Group Executive Team on 19 December 2024.
January-December 2024
- Net sales slightly below the previous year's level, -1.6% and were 186.2 (189.2) million euros.
- Adjusted EBITA 23.9 (26.7) million euros, 12.8% (14.1%)
of net sales. - Customer prices dropped, -0.3%, average salary development standing at +1.0%.
- Gofore's employer brand strengthened and employee experience improved.
- Amount of large accounts grew and customer net promoter score rose to an all-time high.
Board of Director's proposal for dividends
The parent company's distributable assets as at 31 December 2024 amounted to EUR 99.2 million, including the profit for the financial period of EUR 18.6 million. The Board of Directors proposes to the Annual General Meeting on 11 April 2025 that dividends be distributed for the financial period ended on 31 December 2024 in the amount of EUR 0.48 per share, equaling a total of 7.5 million euros in dividend payout.
The 2024 dividend is paid to a shareholder who is on the company's list of shareholders maintained by Euroclear Finland Oy on the record date 15 April 2025. A dividend will not be paid for the shares in the company's possession on the record date. According to the proposal, dividends are paid on estimate on 24 April 2025.
Key Figures
EUR thousand, unless otherwise specified | Q4/2024 | Q4/2023 | 2024 | 2023 |
Net sales | 49,829 | 51,710 | 186,166 | 189,241 |
Change in Net sales, % | -3.6% | 13.2% | -1.6% | 26.2% |
EBITDA | 7,630 | 10,135 | 28,461 | 30,428 |
EBITDA, % | 15.3% | 19.6% | 15.3% | 16.1% |
Adjusted EBITA | 6,674 | 8,276 | 23,916 | 26,704 |
Adjusted EBITA, % | 13.4% | 16.0% | 12.8% | 14.1% |
EBITA | 6,607 | 9,081 | 24,429 | 27,090 |
EBITA, % | 13.3% | 17.6% | 13.1% | 14.3% |
Operating Profit (EBIT) | 5,731 | 8,003 | 20,776 | 23,019 |
Operating Profit (EBIT), % | 11.5% | 15.5% | 11.2% | 12.2% |
Profit for the period | 4,918 | 6,849 | 16,806 | 18,263 |
Return on equity (ROE), % | 19.1% | 29.9% | 16.9% | 21.1% |
Return on investment (ROI), % | 19.2% | 28.9% | 17.8% | 21.3% |
Equity ratio, % | 62.1% | 56.0% | 62.1% | 56.0% |
Net gearing, % | -34.1% | -13.1% | -34.1% | -13.1% |
Number of employees at the end of period | 1,471 | 1,465 | 1,471 | 1,465 |
Average overall capacity, FTE | 1,379 | 1,373 | 1,373 | 1,322 |
Average subcontracting, FTE | 164 | 174 | 149 | 172 |
Earnings per share (EPS), undiluted | 0.31 | 0.43 | 1.04 | 1.15 |
Earnings per share (EPS), diluted | 0.30 | 0.43 | 1.02 | 1.15 |
Cash flow from operative activities per share | 2.37 | 1.23 | ||
Equity per share | 6.69 | 5.98 | ||
Dividend per share | 0.48 | 0.47 | ||
DPS/EPS, % | 46.2% | 40.9% | ||
Effective dividend yield (DPS/Price), % | 2.2% | 2.1% | ||
Price-Earnings ratio, P/E | 21.3 | 19.5 |
CEO Mikael Nylund:
"Gofore's net sales contracted in 2024 for the first time after more than 15 years of profitable growth. The net sales ultimately settled at 186.2 million euros, which is 1.6% lower than in 2023. Profitability remained at a good level, with adjusted EBITA at 12.8%.
In a weaker economic environment, customer demand was lower throughout the year compared to previous year. We refrained from the fiercest price competition, which hindered growth but protected profitability.
At the beginning of 2024, we believed in a quicker economic recovery than what occurred. However, customers in both the private and public sectors have continued to take a cautious approach to investments.
Despite this, we managed to grow our business moderately in our domestic market in Finland, particularly among public sector customers and in consulting services. In contrast, we suffered a contraction in net sales in new areas, such as outside Finland and in the more cyclical industrial customer base.
We successfully continued to implement our customer strategy based on strategic partnerships. As a result, customer satisfaction even increased slightly despite the challenging savings situations. The number of large customers (>1 million euros/year in billing) continued to grow. We were pleased to notice that many of our customers value a long-term, broadly serving, and responsible partner even in tougher times.
At the same time, it was significantly difficult to open new accounts. In the public sector, the competitive situation was tough, as the open nature of its procurement attracts supply when the market is generally quieter. The number of competitors increased, and price competition due to oversupply remained fierce, which complicated our growth during the year. Savings programs were implemented in almost all customer groups, cutting ongoing projects and postponing new initiatives.
However, we see that we strengthened our positions during the past year. We navigated through a difficult year together with our staff and managed to avoid the widespread layoffs and redundancies common in the industry. This reflects the healthy state of Gofore's structures and the good resilience of both them and our personnel.
We believe this also played a role in our continued rise in the employer comparison within the IT consulting sector, with Gofore being recognized as the most attractive IT consulting employer in Universum's professional survey.
The last quarter of the year continued the trend of gradual growth in capacity that turned in the second half of the year. In the latter part of the year-when customer projects typically face the most urgent deadlines-the utilisation rate also reached its highest level of the year. December was a very fragmented month this year due to long holidays. This significantly affected the overall results for the quarter.
At the end of 2024, we announced our updated long-term targets: we aim in net sales of 500 million euros by 2030, while maintaining our ability to be a profitability leader in the industry. Regarding the market, we have not seen a sudden improvement at the beginning of the year, but we expect a gradual and long-term phase of demand recovery. We are, however, decidedly pursuing new growth, including through our new, more customer-oriented organization.
The fundamentals of our business and structures are on a healthy foundation. In our thinking, Gofore is and will remain a growth company."
Significant events after the review period
13.1.2025 Gofore's Shareholders' Nomination Board's proposals to the Annual General Meeting 2025
22.1.2025 Gofore initiates a new period of employee share savings plan
Releases of the significant events can be found on Gofore's website at https://gofore.com/en/news/.
January 2025
Gofore's January net sales were 15.6 (16.9) million euros with one less working day than a year ago. Number of employees went down by one to 1,470 people, own capacity rose to 1,387 people and subcontracting capacity declined to 148. The amount of working days in January was 21.
The year 2025 began similarly to the previous year, still under challenging and cautious signs in terms of customer demand. By the end of the year, customer projects were concluding, and new projects are partly still being sought.
Consequently, the available capacity remained high, consistent with the situation from a year ago, and the utilisation rate in January was still low. Simulator product sales also started cautiously in January.
Financial Statements livestream
Gofore's CEO Mikael Nylund and CFO Teppo Talvinko present the financial statements release in a livestream on 20 February 2025 starting at 1 pm EET. The event is held in English, and it can be watched either live or as a recording at https://gofore.videosync.fi/q4-2024.
Participants can send through questions during the livestream and they will be answered at the end of the event. There is no need to RSVP to this event. Its presentations and a recording of the livestream will become available on Gofore's IR website after the event.
Further information:
Mikael Nylund, CEO, Gofore Plc
Tel. +358 40 540 2280
mikael.nylund@gofore.com
About Gofore Oyj
Gofore is an international digital transformation consultancy with Finnish roots. We employ nearly 1,500 experts across 18 locations in Finland, Germany, Austria, Spain, and Estonia. With our technology and business expertise, we work for functional, secure and equal services for the digital society and sustainable solutions for the intelligent industry. Our diverse group of professionals share a pioneering ambition to create a more humane and responsible digital world. Our values guide our business: Gofore is a great workplace that thrives on customer success. In 2024, our net sales amounted to EUR 186,2 million. Gofore Plc's share is listed on the Nasdaq Helsinki Ltd. in Finland. Our vision is to be the most significant digital transformation consultancy in Europe. Discover more about us at gofore.com
