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Gofore Plc’s Business Review 1.-30. June 2022: Half-year net

Gofore Plc’s Business Review 1.-30.  June 2022: Half-year net

Gofore Plc
Stock exchange announcement
July 8, 2022 at 11.00 EET
Inside information

Gofore Plc’s Business Review 1.-30. June 2022: Half-year net sales increased by 40% – New agreements in June with e.g. Ministry of Agriculture and Forestry and the City of Helsinki

In June 2022, Gofore’s net sales were 12.5 million euros (9.1 million euros in June 2021). The last 12 months (LTM) pro forma net sales were 130.8 million euros in June. The group employed 1,074 (803) people at the end of the month.

Net sales in January-June grew by 40 percent to 72.5 million euros from 51.7 million euros in the corresponding period in 2021. Gofore’s net sales in April-June were 37.1 million euros (26.4 million euros in Q2 / 2021) , which also shows 40 percent growth. Gofore’s half-year report will be published on 15 August 2022.

CEO Mikael Nylund comments:

“We are very pleased with a successful June and the significant growth in our first half-year period. Gofore’s mission to promote ethical digitization took the lead in June with great new contracts that all depict the effect we want our work to have. In terms of sales, June was exceptional busy, which bodes well for the rest of the year.

For example, we were chosen as a partner for agencies under the Finnish Ministry of Agriculture and Forestry, in a comprehensive IT service tender conducted by the Finnish Land Survey; as the number one priority position in cloud development and expert services, and as a subcontractor in testing to our long-standing partner, Knowit Oy. You will find a link to the customer’s release about this at the end of this review.

In this tender competition, customers emphasized secure, reliable digital services and expertise in cloud and artificial intelligence technologies. In addition to the ministry itself, it involved the National Land Survey of Finland, the National Resource Institute Finland and Metsähallitus (state forestry company). The work they do for the environment and natural resources develops a renewable, competitive and sustainable Finland.

The agreement period is four years with an optional period of two years, and the parties will then make their individual framework agreements. The whole event is worth 188 million euros. Although it is not easy for us to assess the value of such a multi-operator tender, our goal is to make Gofore’s share of this worth a few million euros per year.

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As communicated in June, our collaboration with Helsinki Municipality has also been further deepened, as our expertise in service and operations designers will be utilized by the city in a new framework agreement. Gofore is involved in the framework agreement to a total value of 22 million euros, both in digital service design and organizational design. This is especially encouraging for us, since we have purposefully invested in our design expertise for many years, and we employ as many as over a hundred designers. This project focuses on ethical and inclusive development of services, which we both find important.

Social impact can also be seen in the Virtual Finland project for the Finnish Ministry of Foreign Affairs, which we offer a development team for a test environment. This project is about creating a digital immigration service infrastructure for Finland, which makes it easier for companies, employees and students to enter and settle in Finland.

Continuing and expanding our long-term customer relationships to an even closer collaboration is one of our important goals that was realized in June with e.g. Digital and Population Data Services Agency, University of Helsinki and CSC – IT Center for Science. We will help the university with flexible software development, and for the Digital and Population Data Services Agency we will provide expert services in data management and security. As we mentioned in our review from January to March, cybersecurity is a long-term trend, and there is a very high demand for expertise. We have also recently had the pleasure of announcing the EUR 12 million expert service agreement with CSC regarding the Digivisio 2030 project. Sales in the private sector continued their positive development in June.

The amount of sick leave caused by the coronavirus remained at the May level in June, in other words fluctuating, but not growing. Recruitment activity has decreased as usual in Finland during the summer, but many new top talents will join us after the holidays.

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The estimates we have given earlier on our long-term risks remain unchanged. “

Press release on the design agreement with the City of Helsinki:

The stock exchange announcement about the CSC agreement:

Key figures

The figures have not been revised. In the table below, we have corrected the figures for full-time equivalents that we have incorrectly stated in the business reviews for March and April, such as 959 for March and 980 for April.

Net sales, MEUR (Net sales 2021) 1 Proforma LTM
Net sales 2
Number of employees at the end of the period 3 Number of working days in Finland Full-time equivalent,
Subcontracting, FTE5
January 10.8 (7.5) 118.5 993 (727) 20 (19) 917 (697) 147 (109)
February 11.3 (8.1) 120.3 1015 (736) 20 (20) 942 (698) 153 (111)
March 13.3 (9.7) 122.9 1043 (792) 23 (23) 968 (735) 155 (118)
April 11.5 (8.5) 125.0 1056 (791) 19 (20) 988 (743) 156 (112)
Can 13.1 (8.8) 128.3 1,068 (799) 21 (20) 1004 (755) 163 (109)
June 12.5 (9.1) 130.8 1,074 (803) 21 (21) 1015 (755) 162 (108)

Unless otherwise stated, the comparative figures in parentheses refer to the corresponding period the year before. Devecto Oy’s figures have been consolidated into Gofore Group’s figures as of 3 January 2022.
1) Net sales, MEUR (net sales in 2021) indicate unaudited net sales for the current month.
2) The last twelve months (LTM) pro forma net sales figures that the company uses, tell the net sales for the group structure at the time of reporting. Pro forma net sales include the effect of acquisitions and sales and are unaudited.
3) Number of employees at the end of the review period.
4) Total capacity, FTE (Full Time Equivalent) figure shows the total capacity of the group’s personnel, converted to a value corresponding to the number of full-time employees. The number includes all personnel, regardless of role. The figure is not affected by annual leave, time off instead of overtime, sick leave or other short-term absence. Part-time agreements and other long-term deviations from normal working hours reduce the amount of total capacity in relation to the total number of employees. The staff capacity for company acquisitions is accounted for at the time of acquisition.
5) Subcontract, FTE (Full Time Equivalent) figure shows the total amount of subcontractors used in billable work, converted to a value corresponding to the number of full-time employees. Subcontracting of the companies acquired by Gofore is accounted for on the acquisition date.

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Gofore’s financial reporting

In its monthly business review, Gofore reveals its monthly net sales, last ten-month pro forma net sales and number of employees with comparative figures, as well as other indicators that help evaluate the company’s growth strategy execution, such as Full Time Equivalent (FTE) figures describing total capacity and the relationship between subcontractors.

In its quarterly business reviews, Gofore also publishes its EBITA, adjusted EBITA and EBITA% for the current quarter along with comparative figures, its organic growth for the reporting period, and e.g. income statement and balance sheet.

Business reviews are published as soon as possible after the figures are confirmed at the beginning of the following month, with the exception of January figures included in the full-year accounts, March figures included in the January-March review, and July figures included in the half-year report.

Mikael Nylund
CEO, Gofore Plc
tel. +358 40 540 2280
[email protected]

Gofore Plc is a consulting company for digital transformation with over 1000 influence-driven employees across Finland, Germany, Spain and Estonia – top experts in our industry who are the company’s heart, brain and hands. We use our comprehensive range of services – consulting, coding, design and verification – as tools to stimulate positive change. We care about our people, our customers and the outside world. Our values ​​guide our business: Gofore is a great workplace that thrives on customer success. In 2021, our net sales were 104.5 million euros. In 2022, Gofore celebrates its 20th anniversary. Gofore Plc’s share is listed on Nasdaq Helsinki Ltd. in Finland. Get to know us better

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