Interim Report
Gofore Plc’s Interim Report January-
January-
- Gofore was not immune to industry over capacity and price competition, but managed to maintain good profitability. Adjusted EBITA 6.8
(8.3) million euros , 13.8%. -
No net sales growth, 0%, net sales were 49.2
(49.1) million euros . Organic growth -2%. - Beginning of the year saw ending projects and savings measures that put a strain on the utilisation rate.
- Improving demand and sales successes lead to a moderate improvement in utilisation rate towards the end of the quarter.
-
There was one less working day than in the comparison period, profitability impact of an estimated
0.7 million euros . - Customer prices rose +0.9%, average salary +2,2%.
- Number of employees grew to a total of 1,456 (1,354) people.
Significant event after the review period was Gofore’s Annual General Meeting 2024 on
The interim report is attached to this release and can be found on Gofore’s IR website at https://gofore.com/en/invest/. The report includes e.g. the most significant new agreements, an extensive key figure table, profit and loss statement and balance sheet, as well as Gofore’s market outlook and near-term risks. This is an IAS34 compliant interim report. The numbers are unaudited.
Key figures
Group Key Figures Summary, MEUR | Q1/2024 | Q1/2023 | 2023 |
Net sales | 49.2 | 49.1 | 189.2 |
Organic Growth of | -1.9% | 32.4% | 22.0% |
Adjusted EBITA | 6.8 | 8.3 | 26.7 |
Adjusted EBITA, % | 13.8% | 16.9% | 14.1% |
EBITA | 6.8 | 8.1 | 27.1 |
Operating Profit (EBIT) | 5.8 | 7.1 | 23.0 |
Earnings per share (EPS), undiluted | 0.27 | 0.34 | 1.15 |
Earnings per share (EPS), diluted | 0.27 | 0.34 | 1.15 |
Number of employees at the end of period | 1,456 | 1,354 | 1,465 |
Overall capacity; in-house and subcontracted staff (FTE), | 1,531 | 1,461 | 1,529 |
CEO
“Net sales of the year’s first quarter were
Multiple new projects were started with customers over the quarter. Thanks to this, the amount of free capacity came down and utilisation rate improved along the quarter, supporting profitability. Starting point of the year was, however, weak, so there was still room for improvement at the end of the review period. What’s important is that things have gone to the right direction.
The tight competitive situation of the industry, driven by over capacity, continued in the first quarter. Price competition has been very visible in public sector tenders for quite some time. In the beginning of the year, many private sector customers have also wanted to revise their price level and consolidate their supplier selection. This development could be seen as weaker than before customer price development. Gofore has, however, managed to hold onto its long-term customer relationships, thanks to offering that answers the customers’ wide-ranging needs, and our expertise. Simultaneously, the consolidation development also offers new opportunities to deepen customer relationships and create new strategic partnerships with customers.
In our eyes, the first quarter seems like the low point of this weaker market situation. Especially the beginning of the year saw ending projects and budget cuts, but also starts to new projects. This was evident in both the public and the private sector. As net development, the positive trend has been comparably slow, and we naturally hope to see more volume especially in private sector investments.
Gofore has every opportunity to answer the improving customer demand when the time comes. We have chosen to hold onto our own skilled people, to secure the long-term success made together with Goforeans.
In times of less growth, we have also been able to renew our operations. In line with our strategy, we have strengthened our offering to select customer groups, with an objective of producing meaningful, comprehensive service that is of value to our customers in the
Although risks remain in both geopolitics and macro economy, we believe that the growth lever from the market is strengthening. We especially have faith in the Gofore team’s ability to use opportunities that arise and return us to a strong growth curve.”
Monthly net sales development in 2024
The numbers are unaudited. The below table includes a correction to the FTE number for
Month | Net sales, | LTM pro | No. of employees | No. of working days | Overall capacity | Subcontracting, FTE |
January | 16.9 (15.8) | 193.3 | 1,463 (1,318) | 22 (21) | 1,372 (1,225) | 147 (186) |
February | 16.3 (15.3) | 193.7 | 1,461 (1,342) | 21 (20) | 1,372 (1,256) | 149 (184) |
March | 16.0 (18.1) | 191.3 | 1,456 (1,354) | 20 (23) | 1,371 (1,271) | 160 (189) |
Next financial disclosure
Gofore’s next financial disclosure will be the Half-year Report 2024 on
Contacts
Mikael Nylund , CEO,Gofore Oyj , +358 40 540 2280, mikael.nylund@gofore.com
About Gofore Oyj
Gofore is an international digital transformation consultancy with Finnish roots. We have over 1,400 impact-driven people in 19 locations across
Attachments
- Gofore Interim Report Q1 2024.pdf
© STT Info Finland, source