This release is a summary of Administer’s Half-year Financial Review January-
Figures in parenthesis refer to the comparison period in the previous year, unless otherwise stated.
January–June 2023
Key figures
- Net sales
EUR 39.2 million (23.9), showing an increase of 64.1%. The increase was caused particularly by the acquisition of Econia. Organic growth was nearly 10%, and it stemmed mainly from payroll management, staffing and software. -
EBITDA
EUR 1.6 million (1.0), or 4.0% (4.2%) of the net sales. The increase was mainly caused by the corporate acquisitions carried out during 2022; cost inflation burdened relative profitability. -
Operating profit (loss)
EUR -1.3 million (-0.5), or -3.3% (-2.1%) of the net sales. The operating profit was weighed down by amortisation of goodwill from the acquisitions, amounting toEUR -2,0 million (-1,0) in total.
Key events
Kimmo Herranen started as the new CEO ofAdminister Group on1 May 2023 .-
Econia, part of
Administer Group , continued to execute its growth strategy by carrying out a corporate acquisition that supports the growth of its international and Compliance services. With the acquisition of its own service platform, Econia can provide significantly better and more comprehensive services for preventing grey economy and ensuring regulatory compliance. - Administer’s accounting firm business carried out three accounting firm acquisitions.
-
Silta, part of
Administer Group , entered into a significant agreement with an energy industry company relating to outsourced payroll and working time management services. - The company started preparations for a profitability programme focusing on improving long-term result and profitability.
EUR million, unless stated otherwise | 1‒6/ | 1‒6/ |
Change, % | 1‒12/ |
Net sales | 39.2 | 23.9 | +64.1% | 52.8 |
EBITDA | 1.6 | 1.0 | +53.1% | 3.8 |
% of net sales | 4.0% | 4.2% | 7.1% | |
Operating profit (EBITA) adjusted with amortisation of goodwill | 0.7 | 0.6 | +26.9% | 2.7 |
% of net sales | 1.8% | 2.3% | 5.1% | |
Operating profit (loss) | -1.3 | -0.5 | 0.1 | |
Profit before appropriations and tax | -1.6 | -0.5 | -0.3 | |
Result adjusted with amortisation of goodwill | 0.2 | 0.5 | 1.8 | |
% of net sales | 0.4% | 2.0% | 3.5% | |
Earnings per share (EPS) | -0.13 | -0.05 |
| -0.05 |
Return on equity (ROE), % | -6.3% | -9.4% | -2.0% | |
Equity ratio, % | 46.8% | 68.0% | 48.7% | |
Debt-to-equity ratio, % | 51.5% | 14.8% | 51.1% | |
Personnel on average | 1,026 | 576 | +78.1% | 657 |
Personnel at the end of the review period | 1,087 | 596 | +82.4% | 1,029 |
CEO’s review
The first half of 2023 was rather divided for us. Our net sales increased by 64 per cent to
For me personally, the period was a highly interesting one as I started as the CEO of
In the payroll service business, we are the market leader in
Our EBITDA increased to
During the review period, we completed the rationalisation project concerning our office premises and made the integration of units that have joined the Group through acquisitions more efficient. We estimate that these measures will have a positive impact on our result from the second half of the year onwards. However, these actions alone are not enough to sufficiently improve our profitability, and we have therefore begun to prepare a profitability programme focusing on improving long-term result and profitability.
A new CEO,
We continued to implement our growth strategy by carrying out an acquisition relating to international and Compliance services and three accounting firm acquisitions. Going forward, our main focus will be on improving profitability and maintaining growth. We will continue to seek growth through acquisitions and organic growth in
We have grown from a small company into a versatile expert in payroll and financial management, HR, software and consulting, and we want to be the best in our industry in the
CEO
Outlook
On
New outlook (published on 8 August 2023)
Administer seeks to continue growth investments as well as organic and inorganic growth in 2023. Administer estimates that its net sales will be EUR 76–81 million (52.8 in 2022) and its EBITDA margin will be 4–8% (7.1 in 2022) in 2023.
Previous outlook (published on 30 March 2023)
Administer seeks to continue growth investments as well as organic and inorganic growth in 2023. Administer estimates that its net sales will be EUR 76–81 million (52.8 in 2022) and its EBITDA margin will be 7–9% (7.1 in 2022) in 2023.
Risks and near-term uncertainties
Interruptions or disturbances in Administer’s IT, network or communication systems may lead to unforeseen costs and malfunctions and be detrimental to the business operations of the company or its customers. Data security breaches targeted at IT systems and data links or other data security breaches may be detrimental to Administer or its customers and negatively impact Administer’s business.
Administer’s field of business is competitive and the competition is fragmented, which may have a negative impact on the company’s operations, if Administer is unable to respond to competitor pricing or service quality or fails to develop new products or services.
Corporate acquisitions are an important part of the company’s growth strategy. Administer may fail in integrating corporate acquisitions or finding new acquisition targets or an acquisition may fail.
Administer’s brand and reputation are important competitive advantages, and reputation damage might have negative impacts on Administer’s business and market position.
There are uncertainties relating to Finland’s economic development this year. Administer has no business operations in
The acceleration of inflation in
More information
Webinar
CEO
You can join the webinar at https://administer.videosync.fi/h1-2023-results
A recording will be available after the event at https://administergroup.com/sijoittajat/.
Contacts
- Hyväksytty neuvonantaja:, Evli Oyj, +358 40 579 6210
About Administer Oyj
Attachments
- Download announcement as PDF.pdf
- Administer 1-6 2023_EN.pdf
© STT Info Finland, source