Netcompany reported 18% revenue growth and continued to improve free cash flow in Q2 2019.
21 August 2019
In Q2 2019, Netcompany realised reported revenue of DKK 593.1m, of which DKK 586.0m was organic, corresponding to 18.1% growth in local currencies and an organic revenue growth of 16.6%.
Adjusted EBITA grew by 5.8% to DKK 126.1m compared to DKK 119.3m in Q2 2018, corresponding to an adjusted EBITA margin of 21.3%.
The average number of full-time employees grew by 432 from 1,828 in Q2 2018 to 2,259 in Q2 2019. Part of the increase was related to the acquisition of Netcompany Netherlands, which affected the average FTEs in Q2 2019 by 47 and came with a total of 88 FTEs.
Free cash flow remained strong and increased by 390.4% from DKK 23.9m in Q2 2018 to DKK 117.2m in Q2 2019. Normalised for on account tax payments, free cash flow increased by 216.6% to DKK 99.1m, corresponding to a cash conversion rate of 122.6%.
By the start of July 2019, revenue visibility increased by 17.9% to DKK 2,105.5m compared to DKK 1,786.3m at the beginning of Q2 2019, of which DKK 1,190.8m reflects realised revenue in the first half of 2019.
For 2019, Netcompany narrows its expectations to organic revenue growth in constant currencies from previously between 20% – 25% to between 20% – 22%. Netcompany still expects Group adjusted EBITA margin in constant currencies before impact from acquisitions to be around 26%.
“During Q2, we continued to grow by 18%. On 13 May 2019, we welcomed yet another member to the Netcompany family through the acquisition of the Dutch based Q Delft B.V. I am thrilled to see the ambition of creating a Northern European market leader gradually being realised with our entry now into the Netherlands too.
The Danish election during the early summer has resulted in delays in the decision processes on a number of larger public tenders and projects in our late-stage pipeline and therefore we narrow our expectations to the full year revenue growth – however still within the range of our initial guidance. I am certain, that Netcompany is well positioned to continue to grow during the second half of 2019 and onwards.”
André Rogaczewski, Netcompany CEO and Co-founder
Performance highlights for Q2 2019
- Revenue increased by 18% (18.1% constant), hereof 16.6% from organic growth to DKK 593.1m in reported currencies.
- Gross profit margin was 37.6% against 39.1% in Q2 2018.
- Free cash flow improved by 390.4% to DKK 117.2m.
- Normalised cash conversion rate of 122.6%.
For full details on financial performance, see enclosed interim report for the six months ended 30 June 2019.
Conference call details
In connection with the publication of the results for Q2 2019, Netcompany will host a conference call on 21 August 2019 at 11.00 am CEST. The conference call will be held in English and can be followed live via the company’s website; www.netcompany.com
Dial-in details for investors and analysts:
DK: +45 32 72 80 42
UK: +44 (0) 8445718892
Confirmation code: 8269031
Webcast Player URL: https://edge.media-server.com/mmc/p/oh8bdx86
André Rogaczewski, CEO +45 70 13 14 40
Thomas Johansen, CFO +45 51 19 32 24