OCTOBER-
- Net sales increased 30.5% and were
EUR 6,449 thousand (4,943) - EBITDA was
EUR 2,222 thousand (52), 34.5% (1.1) of net sales - Adjusted EBITDA was
EUR 2,236 thousand (1,269), 34.7% (25.7) of net sales - EBIT was
EUR 1,497 thousand (-298), 23.2% (-6.0) of net sales - Adjusted EBIT was
EUR 2,159 thousand (1,207), 33.5% (24.4) of net sales - Profit of the review period was
EUR 977 thousand (-364), 15.2% (-7.4) of net sales
JANUARY-
- Net sales increased 30.9% and were
EUR 22,550 thousand (17,227) - EBITDA was
EUR 6,848 thousand (4,231), 30.4% (24.6) of net sales - Adjusted EBITDA was
EUR 6,907 thousand (5,635), 30.6% (32.7) of net sales - EBIT was
EUR 4,665 thousand (3,070), 20.7% (17.8) of net sales - Adjusted EBIT was
EUR 6,669 thousand (5,411), 29.6% (31.4) of net sales - Profit of the review period was
EUR 3,229 thousand (2,272), 14.3% (13.2) of net sales
10-12/2022 | 10-12/2021 | Change | 1-12/2022 | 1-12/2021 | Change | |
Net sales | 6,449 | 4,943 | 30.5 % | 22,550 | 17,227 | 30.9 % |
SaaS | 4,581 | 3,741 | 22.4 % | 16,989 | 12,996 | 30.7 % |
Transaction | 308 | 298 | 3.6 % | 1,172 | 1,084 | 8.1 % |
Consulting and other | 1,560 | 904 | 72.5 % | 4,390 | 3,148 | 39.4 % |
Gross margin | 5,798 | 4,381 | 32.3 % | 19,982 | 15,380 | 29.9 % |
Gross margin, % of net sales | 89.9 % | 88.6 % | 88.6 % | 89.3 % | ||
EBITDA | 2,222 | 52 | 4146.5 % | 6,848 | 4,231 | 61.9 % |
EBITDA, % of net sales | 34.5 % | 1.1 % | 30.4 % | 24.6 % | ||
Adjusted EBITDA 1) | 2,236 | 1,269 | 76.2 % | 6,907 | 5,635 | 22.6 % |
Adjusted EBITDA, % of net sales | 34.7 % | 25.7 % | 30.6 % | 32.7 % | ||
EBIT | 1,497 | -298 | 603.1 % | 4,665 | 3,070 | 51.9 % |
EBIT, % of net sales | 23.2 % | -6.0 % | 20.7 % | 17.8 % | ||
Adjusted EBIT 2) | 2,159 | 1,207 | 78.8 % | 6,669 | 5,411 | 23.2 % |
Adjusted EBIT, % of net sales | 33.5 % | 24.4 % | 29.6 % | 31.4 % | ||
Profit (Loss) of the period/financial year | 977 | -364 | 368.6 % | 3,229 | 2,272 | 42.1 % |
Profit (Loss) of the period/financial year, % of net sales | 15.2 % | -7.4 % | 14.3 % | 13.2 % | ||
Equity ratio, % | 70.4 % | 75.0 % | 70.4 % | 75.0 % | ||
Net debt | -9,292 | -15,760 | 41.0 % | -9,292 | -15,760 | 41.0 % |
Gearing, % | -38.1 % | -71.7 % | -38.1 % | -71.7 % | ||
Earnings per share (EPS) 3) | 0.05 | -0.02 | 348.2 % | 0.18 | 0.39 | -54.5 % |
Number of employees at the end of the period | 184 | 153 | 20.3 % | 184 | 153 | 20.3 % |
Outstanding shares at the end of the period | 18,393,440 | 18,273,726 | 18,393,440 | 18,273,726 | ||
Average outstanding shares during the period | 18,393,440 | 17,849,151 | 18,343,559 | 5,879,408 |
1) Adjusted EBITDA is EBITDA adjusted by costs related to the acquisitions and the IPO as well as certain extraordinary items (Business Finland’s aid)
2) Adjusted EBIT is EBIT adjusted by goodwill amortizations, costs related to the acquisitions and the IPO as well as certain extraordinary items (Business Finland’s aid)
3) The share split has been considered in 2021 figures
CEO
Year 2022 was a period of strong growth. Our net sales grew 30.9 % and adjusted EBIT was 29.6 % of net sales. The year included three acquisitions: Logentia, Finazilla and Duunissa.fi. The latest of these was an asset deal, where we bought the business of Duunissa.fi to strengthen our work time monitoring solutions. The acquisitions made during 2022 have developed according to our objectives as part of the
The number of customers continued to grow and during the last quarter we gained nearly 600 new customers, of which Duunissa.fi brought almost 400. At the end of the year,
The prevailing economic situation affected both new customer acquisition and the current customer base slightly more than expected - customer payment delays have increased, and several customer companies have reduced the number of users during the fall. Revenue churn increased slightly from previous year and was 3.5% of net sales, compared to 3.1% in 2021. The Net Revenue Retention (NRR) ended up at around 103% after the fourth quarter, compared to 108% in 2021.
As part of the ongoing strategy work, we moved to an industry-driven organizational model on
Although the uncertain global market situation will affect us as well, I believe that companies will continue digitalization to improve the efficiency of their businesses. A modern enterprise resource planning system is an excellent foundation for building a company's operations, and our investments in developing new technology help us to capture market share.
Group financial result and profitability
October-
Net sales for the review period were
The share of SaaS income during the review period was 71.0% (75.7), the share of transaction income 4.8% (6.0), and consulting and other income 24.2% (18.3). The relative share of SaaS income in the fourth quarter was lower than before due to higher consulting income.
EBITDA was
EBIT was
Profit for the review period was
Cash flow from operating activities during the review period was
January-
Net sales for the review period were
The share of SaaS income during the review period was 75.3% (75.4), the share of transaction income 5.2% (6.3), and consulting and other income 19.5% (18.3).
EBITDA was
EBIT was
Profit for the review period was
Cash flow from operating activities during the review period was
Balance sheet, financing and investments
The balance sheet total at the end of the review period was
The Group has capitalized R&D expenses of
Equity at the end of the review period was
Equity ratio at the end of the review period was 70.4% (75.0 at the end of the year 2021) and interest-bearing debt was
Cash and cash equivalents at the end of the review period were
Personnel, management and administration
The Group number of employees was 184 (153) on
The personnel are divided as follows:
- R&D 98 employees
- Customer service 47 employees
- Sales 20 employees
- Other functions, a total of 19 employees
Shares and shareholders
Share capital and number of shares
The company has one series of shares, and all shares have equal rights. At the end of the review period, Lemonsoft Oyj’s share capital consisted of 18,393,440 (18,273,726) shares. The average number of shares during the review period was 18,393,440 (17,849,151).
The company's share is traded on the First North Growth Market Finland marketplace maintained by
On
Authorizations of the Board of Directors
The authorization is in force until the next Annual General Meeting, however, no longer than until
As part of the completion of the acquisition of
Significant short-term risks and uncertainties
The deterioration of the economic situation and events with a global impact, such as the war in
In the longer term, the biggest challenge for our industry is the availability of skilled personnel. Success of the Group and opportunities for organic growth depend largely on how well we can recruit, motivate, and engage more skilled personnel and develop our expertise.
In
The ERP market is generally a highly competitive market, and the industry is fragmented. Smaller players are primarily focused in a specific sector of SMEs and larger players do not compete directly for customers in the same market. However, competition in
Risks related to information security and the IT systems of service providers are a significant factor affecting the security and continuity of the Group's business.
Success in acquisitions and related integration work is a key factor for
Board of Director’s proposal for dividend
At the end of the financial year 2022, the Group's parent company’s distributable funds were
Lemonsoft Oyj’s Board of Directors proposes to the Annual General Meeting that a dividend of
Events after the review period
Outlook 2023
Profit forecast for 2023
Financial information and Annual General Meeting in 2023
- Interim Report January –
March 2023 on Friday,28 April 2023 - Half-year Report January-
June 2023 on Friday,11 August 2023 - Interim Report January –
September 2023 on Thursday,26 October 2023
The company's annual report for the financial year ending
Webcast for investors and media
A recording of the event and the presentation material will be available after the event at https://investors.lemonsoft.fi/.
Board of Directors
For further information, please contact:
CEO
kari.joki-hollanti@lemonsoft.fi
+358 44 730 9271
Director, M&A and IR
alpo.luostarinen@lemonsoft.fi
+358 50 911 3507
Certified Adviser:
About
Get to know us better at www.lemonsoft.fi.
Distribution
Principal media
TABLES
Accounting principles for the review period
The figures have been prepared in accordance with Finnish Accounting Standards (FAS).
The figures of the review period are unaudited.
CONSOLIDATED INCOME STATEMENT
10-12/2022 | 10-12/2021 | 1-12/2022 | 1-12/2021 | |
6,449 | 4,943 | 22,550 | 17,227 | |
Other operating income | 0 | 1 | 4 | 45 |
Materials and services | -652 | -563 | -2,572 | -1,893 |
Personnel expenses | -2,958 | -2,538 | -11,001 | -8,091 |
Depreciation and amortization | ||||
Depreciation | -176 | -146 | -559 | -462 |
-549 | -204 | -1,624 | -699 | |
Total depreciation and amortization | -725 | -350 | -2,184 | -1,161 |
Other operating expenses | -617 | -1,791 | -2,132 | -3,059 |
EBIT | 1,497 | -298 | 4,665 | 3,070 |
Financial income and expenses | -4 | 27 | -19 | 16 |
PROFIT (LOSS) BEFORE TAXES | 1,493 | -270 | 4,645 | 3,086 |
Income taxes | -441 | -80 | -1,318 | -778 |
Minority share | 75 | 13 | 98 | 35 |
PROFIT (LOSS) FOR THE PERIOD/FINANCIAL YEAR | 977 | -364 | 3,229 | 2,272 |
CONSOLIDATED BALANCE SHEET
12/2022 | 12/2021 | |
NON-CURRENT ASSETS | ||
Intangible assets | 16,809 | 6,484 |
Tangible assets | 757 | 533 |
Investments | 2,878 | 1,874 |
TOTAL NON-CURRENT ASSETS | 20,444 | 8,891 |
CURRENT ASSETS | ||
Inventories | 88 | 52 |
Current receivables | 2,839 | 1,795 |
Cash at bank and in hand | 11,692 | 19,060 |
TOTAL CURRENT ASSETS | 14,619 | 20,907 |
Total Assets | 35,063 | 29,798 |
EQUITY | 24,362 | 21,991 |
Minority interest | 129 | 30 |
LIABILITIES | ||
Non-current liabilites | 1,500 | 2,400 |
Current liabilities | 9,072 | 5,377 |
TOTAL LIABILITIES | 10,572 | 7,777 |
Total equity and liabilities | 35,063 | 29,798 |
CONSOLIDATED CASH FLOW STATEMENT
10-12/2022 | 10-12/2021 | 1-12/2022 | 1-12/2021 | |
Cash flow from operating activities: | ||||
Profit (Loss) before taxes | 1,493 | -270 | 4,645 | 3,086 |
Adjustments | 727 | 336 | 2,185 | 1,182 |
Cash flow before change in working capital | 2,220 | 65 | 6,831 | 4,267 |
Change in working capital | 707 | 225 | -8 | 328 |
Cash flow from operating activities before financial items and taxes | 2,927 | 290 | 6,822 | 4,595 |
Net financial items and taxes | -235 | -21 | -1,117 | -602 |
Net cash from operating activities (A) | 2,692 | 269 | 5,706 | 3,994 |
Cash flow from investing activities: | ||||
Acquisition of intangible and tangible assets | -1,135 | 107 | -2,256 | -2,560 |
Proceeds from sale of tangible and intangible assets | 0 | 32 | 0 | 107 |
Other investments | 0 | -379 | -1,000 | -379 |
Acquired shares in subsidiaries | 0 | 0 | -6,542 | -1,236 |
Net cash used in investing activities (B) | -1,135 | -241 | -9,798 | -4,069 |
Cash flow from financing activities: | ||||
Dividends paid | 0 | 0 | -2,376 | -2,210 |
Net cash flow from non-current loans | -450 | -450 | -900 | 1,300 |
Share issue | 0 | 14,945 | 0 | 14,945 |
Net cash from financing activities (C) | -450 | 14,495 | -3,276 | 14,035 |
Change in cash at bank and in hand (A + B + C) increase (+) / decrease (–) | 1,108 | 14,523 | -7,368 | 13,960 |
Cash at bank and in hand at the beginning of the period/financial year | 10,584 | 4,537 | 19,060 | 5,100 |
Cash at bank and in hand at the end of the period/financial year | 11,692 | 19,060 | 11,692 | 19,060 |
Change in cash | 1,108 | 14,523 | -7,368 | 13,960 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
1-12/2022 | 1-12/2021 | |
Restricted equity | ||
Share capital at the beginning of the financial year | 80 | 8 |
Increase of share capital | 0 | 72 |
Share capital at the end of the financial year | 80 | 80 |
Total restricted equity | 80 | 80 |
Free equity | ||
Invested unrestricted equity reserve at the beginning of the financial year | 14,980 | 36 |
Directed share issue/IPO | 1,500 | 14,945 |
Invested unrestricted equity reserve at the end of the financial year | 16,480 | 14,980 |
Invested unrestricted equity reserve total | 16,480 | 14,980 |
Retained earnings at the beginning of the financial year * | 6,949 | 6,935 |
Dividends distributed | -2,376 | -2,210 |
Increase of share capital | 0 | -72 |
Retained earnings at the end of the financial year | 4,573 | 4,658 |
Profit (Loss) for the financial year | 3,229 | 2,272 |
Total free equity | 24,282 | 21,911 |
Capital loans | ||
Capital loans at the beginning of the financial year | 0 | 200 |
Transfer of capital loan | 0 | -200 |
Capital loans at the end of the financial year | 0 | 0 |
Total capital loan | 0 | 0 |
TOTAL EQUITY | 24,362 | 21,991 |
* Earnings from subsidiary mergers transferred to Retained earnings in 2021
* Change in the additional purchase price paid to the subsidiary transferred to Retained earnings in 2022
GROUP’S COMMITMENTS
12/2022 | 12/2021 | |
Rental obligations | ||
Rental obligations < 1 y | 268 | 200 |
Rental obligations > 1 y | 109 | 5 |
Total rental obligations | 377 | 205 |
Lease obligations | ||
Lease obligations < 1 y | 1 | 1 |
Lease obligations > 1 y | 0 | 0 |
Total lease obligations | 1 | 1 |
Collateral securities | ||
Cash pledges (movable object, security) * | 1,073 | 1,073 |
Business mortgage, parent company | 2,000 | 2,000 |
Total collateral securities | 3,073 | 3,073 |
*The value of cash pledges corresponds to the purchase price of the pledged real estate shares
CALCULATION OF
Gross margin = Net sales + Other operating income – Materials and services
EBITDA = EBIT + Depreciation and amortization
Adjusted EBITDA = EBIT + Depreciation and amortization – Business Finland’s aid + M&A costs + IPO costs
Operating profit (EBIT) = Net sales + Other operating income - Materials and services - Personnel expenses - Other operating expenses – Depreciation and amortization
Adjusted EBIT = EBIT – Business Finland’s aid + M&A costs + IPO costs +
Equity ratio, % = Equity +/- Minority interest x100 / (Balance sheet total - Advances received)
Net debt = Loans from credit institutions – Cash at bank and in hand
Gearing, % = (Loans from credit institutions - Cash at bank and in hand) x100 / Equity
Earnings per share (EPS) = Profit (Loss) of the period / Adjusted average number of outstanding shares during the period
EBITDA AND EBIT ADJUSTMENTS
10-12/2022 | 10-12/2021 | 1-12/2022 | 1-12/2021 | |
EBITDA | 2,222 | 52 | 6,848 | 4,231 |
EBITDA, % of net sales | 34.5 % | 1.1 % | 30.4 % | 24.6 % |
Business | 0 | 0 | 0 | -45 |
M&A and IPO costs | 14 | 1,216 | 59 | 1,449 |
Adjusted EBITDA | 2,236 | 1,269 | 6,907 | 5,635 |
Adjusted EBITDA, % of net sales | 34.7 % | 25.7 % | 30.6 % | 32.7 % |
10-12/2022 | 10-12/2021 | 1-12/2022 | 1-12/2021 | |
EBIT | 1,497 | -298 | 4,665 | 3,070 |
EBIT, % of net sales | 23.2 % | -6.0 % | 20.7 % | 17.8 % |
Business | 0 | 0 | 0 | -45 |
M&A and IPO costs | 14 | 1,216 | 59 | 1,449 |
648 | 288 | 1,946 | 937 | |
Adjusted EBIT | 2,159 | 1,207 | 6,669 | 5,411 |
Adjusted EBIT, % of net sales | 33.5 % | 24.4 % | 29.6 % | 31.4 % |
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