Gofore Oyj’s business review June 1-30, 2022: Half-year net
Gofore Oyj
Stock exchange release
8/7/2022 at 11:00 EET
Inside information
Gofore Oyj’s business review 1-30 June 2022: Half-year turnover increased by 40% – New contracts in June, e.g. with the Ministry of Agriculture and Forestry and the City of Helsinki
In June 2022, Gofore’s turnover was EUR 12.5 million (EUR 9.1 million in June 2021). Last 12-month (LTM) pro forma turnover in June was EUR 130.8 million. At the end of the month, the group employed 1,074 (803) people.
The net sales for January-June increased by 40 percent to 72.5 million euros from 51.7 million euros in the corresponding period of 2021. Gofore’s turnover in April-June was 37.1 million euros (26.4 million euros in Q2/2021), which is also 40 percent. growth. Gofore’s half-yearly report will be published on August 15, 2022.
CEO Mikael Nylund commented:
“We are very satisfied with the successful June and the significant growth of the first half of the year. Gofore’s mission to promote ethical digitization progressed in June with great new contracts, all of which speak to the impact we want to have with our work. In terms of sales, June was exceptionally busy, which bodes well for the rest of the year.
For example, we were chosen as a partner of the agencies under the Ministry of Agriculture and Forestry in the extensive IT service competition conducted by the Land Survey; As the number one position in cloud development and expert services, and as a testing subcontractor for our long-term partner Knowit Oy. You can find a link to the customer’s announcement at the end of this review.
In this tender, the customers emphasized safe, reliable digital services and know-how in cloud and artificial intelligence technology. In addition to the ministry, the Land Surveying Institute, Resource Center and Metsähallitus participated in it. Their work for the environment and natural resources develops a renewable, competitive and sustainable Finland.
The contract period is four years with an optional two-year period, and the parties then conclude individual framework agreements. The value of the entire arrangement is 188 million euros. Although it is not easy for us to estimate the value of such a multi-player tender, our goal is to make Gofore’s share of this worth a few million euros per year.
As announced in June, our cooperation with the city of Helsinki will also deepen further, when our service and function planner will be harnessed to the city’s use in connection with the new framework agreement. Gofore is involved in a framework agreement worth a total of 22 million euros in the area of digital service planning and organizational planning. This is particularly encouraging for us, as we have purposefully invested in our design expertise for several years and employ even more than a hundred design professionals. This project focuses on ethical and inclusive service development, both of which we believe are important.
The social effects can also be seen in the Virtual Finland project of the Ministry of Foreign Affairs, for which we provide a development team for the testing environment. The project aims to create a digital immigration service infrastructure in Finland that facilitates the entry and settlement of companies, employees and students in Finland.
Continuing and expanding long-term customer relationships into even closer cooperation is one of our most important goals, which was realized in June, e.g. With the Digital and Population Information Agency, the University of Helsinki and the Science Information Technology Center CSC. We help the university with agile software development and the Digital and Population Information Agency with expert services in data management and security. As we stated in our January-March review, cyber security is a long-term trend for which there is a very high demand for expertise. We also recently had the pleasure of announcing a 12 million euro professional services contract with CSC for the Digivision 2030 project. Our private sector sales continued their positive development in June.
In June, the number of sickness absences caused by the coronavirus remained at the level of May, i.e. it varied, but did not increase. Recruiting activity has slowed down as usual in Finland in the summer, but after the holiday season, many new top talents are joining our ranks.
Our previous assessments of our long-term risks remain unchanged.”
Press release on the planning agreement with the City of Helsinki:
https://gofore.com/en/releases/gofore-involved-in-designing-helsinki-into-a-city-of-sustainable-growth-for-all/
Stock exchange release about the CSC contract:
https://gofore.com/en/releases/gofore-plc-finnish-it-center-for-science-chose-gofores-expert-resources-for-the-digivisio-2030-project/
Key figures
The figures are unaudited. In the table below, we have corrected the Full Time Equivalent numbers that we incorrectly reported in the March and April company reviews to 959 for March and 980 for April.
Month (2022) |
Turnover, MEUR (Turnover 2021) 1 | Pro forma LTM From turnover 2 |
Number of employees at the end of the period 3 | Number of working days in Finland | Full-time, FTE4 |
Subcontracting, FTE5 |
January | 10.8 (7.5) | 118.5 | 993 (727) | 20 (19) | 917 (697) | 147 (109) |
February | 11.3 (8.1) | 120.3 | 1,015 (736) | 20 (20) | 942 (698) | 153 (111) |
March | 13.3 (9.7) | 122.9 | 1,043 (792) | 23 (23) | 968 (735) | 155 (118) |
April | 11.5 (8.5) | 125.0 | 1,056 (791) | 19 (20) | 988 (743) | 156 (112) |
may | 13.1 (8.8) | 128.3 | 1,068 (799) | 21 (20) | 1,004 (755) | 163 (109) |
June | 12.5 (9.1) | 130.8 | 1,074 (803) | 21 (21) | 1,015 (755) | 162 (108) |
Unless otherwise stated, the comparative figures in parentheses refer to the corresponding period of the previous year. The figures of Devecto Oy have been consolidated into the figures of the Gofore Group from January 3, 2022.
1) Turnover, MEUR (turnover 2021) indicates the unaudited turnover for that month.
2) The last 12 months (LTM) pro forma turnover figure used by the company indicates the turnover of the group structure at the time of reporting. Pro forma turnover includes the effect of acquisitions and divestitures and is unaudited.
3) Number of personnel at the end of the review period.
4) Total capacity, the FTE (Full Time Equivalent) figure shows the total capacity of the group’s personnel, changed 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 absences. Part-time contracts and other long-term deviations from normal working hours reduce the amount of total capacity in relation to the total number of personnel. The personnel capacity of acquisitions has been taken into account at the time of acquisition.
5) Subcontracting, the FTE (Full Time Equivalent) figure shows the total amount of subcontracting used in the billable work, converted to a value corresponding to the number of full-time employees. The subcontracting of companies acquired by Gofore has been taken into account since the acquisition.
Gofore’s financial reporting
In its monthly business review, Gofore publishes its monthly turnover, its pro forma turnover for the last ten months and the number of employees with comparison figures, as well as other indicators that help evaluate the implementation of the company’s growth strategy, such as Full Time Equivalent FTE) numbers that describe total capacity and subcontracting relationships.
In its quarterly reports, Gofore also publishes the EBITA, adjusted EBITA and EBITA% for the quarter in question, as well as comparative figures, the organic growth figure for the reporting period, and e.g. income statement and balance sheet.
The business reviews are published as soon as possible after the confirmation of the numbers at the beginning of the following month, except for the January numbers, which are included in the full-year financial statement bulletin, the March numbers, which are included in the January-March review, and the July numbers, which are included in the half-year review.
Mikael Nylund
CEO, Gofore Plc
tel. +358 40 540 2280
[email protected]
Gofore Oyj is a digital transformation consulting company with more than 1,000 influential employees in different parts of Finland, Germany, Spain and Estonia – top experts in our field, who are the heart, brain and hands of our company. We use our comprehensive service offering – consulting, coding, planning and verification – as tools to bring about positive change. We care about our people, our customers and the world around us. Our values guide our business: Gofore is a great place to work that thrives on customer success. In 2021, our turnover was 104.5 million euros. In 2022, Gofore will celebrate its 20th anniversary. Gofore Oyj’s shares are listed on Nasdaq Helsinki Oy in Finland. Get to know us better www.gofore.com.