XCSE:NETC ESEF Annual Report
Netcompany Group A/S (XCSE:NETC)
ESEF Annual Report
2024-10-03
For: 2024-06-30
View Original
Added on
September 23, 2026
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1
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
Netcompany
Q2 2024
Company Announcement
Six months ended 30 June 2024
Continued growth and improved margin
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
2
38
Summary
Conference call details
In connection with the publication of the results for Q2 2024, Netcompany will host a
conference call on 14 August 2024 at 11.00 CEST.
The conference call can be followed live via
https://netcompany-as.eventcdn.net/events/interim-report-for-the-first-6-months-of-2024
For further dial-in details please visit the company’s website; www.netcompany.com
Revenue increased by 10.5% (constant 10.2%)
DKK 1,650.2m
Q
DKK 1,493.9m
Q
DKK 3,248.4m
YTD
DKK 3,034.1m
DKK 269.1m
DKK 195.1m
DKK 516.2m
DKK 437.2m
13.1%
16.3%
Adj. EBITDA increased 38% (constant 38.7%)
Adj. EBITDA margin of 16.3% (constant 16.4%)
14.4%
15.9%
7,884 FTEs
7,699 FTEs
7,846 FTEs
7,606 FTEs
Average employees increased by 186 FTEs
DKK 148.2m
DKK -72.5m
DKK 143.3m
DKK 69.1m
-87.9%
104.7%
32.6%
55.9%
1.4x
1.5x
Debt leverage was on level
Cash conversion ratio was 104.7%
Free cash flow improved DKK 220.7m
YTD
Q
Q
YTD
YTD
Q
Q
YTD
YTD
Q
Q
YTD
YTD
Q
Q
YTD
YTD
Q
Q
YTD
YTD
Q
Q
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
3
38
“In Q2, we grew revenue by 10.2% driven by continued recovery in the Danish part of the Group as well as
strong growth in Netcompany-Intrasoft and in the Netherlands. In addition, we continued to win new large
projects based on our products and platforms.
As anticipated, margins continued to improve, and in Q2 we realised a margin of 16.4% and more than
doubled our net result compared to the same period last year. The improved margins are a result of
improved efficiencies and better utilisation, particular in the Danish part of the Group.
We have continued to hire outstanding talent throughout the quarter, giving a 2.4% growth in FTEs
compared to the same period last year and end of Q2 the total number of FTEs passed 7,900.
It makes me proud and humble to see the results our employees deliver in a business environment that
continues to be somewhat uncertain. We maintain our expectations to our financial performance for 2024
and initiate a new share buyback programme of DKK 150m running until the end of October 2024, and
increase the expected share buyback programme for the full year to more than DKK 700m.
The performance in the past quarter makes me confident that we are on the right trajectory to deliver on
our midterm targets for 2026.”
André Rogaczewski
NETCOMPANYCEOANDCOFOUNDER
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
4
38
Performance overview Q2
Q2 2024 Q2 2024 % change % change
DKK million
(reported) (constant)* Q2 2023 (reported) (constant)*
Revenue 1,650.2 1,645.7 1,493.9 10.5% 10.2%
Cost of services -1,170.1 -1,164.9 -1,091.1 7.2% 6.8%
Gross profit 480.1 480.7 402.8 19.2% 19.3%
Gross profit margin
29.1% 29.2% 27.0% 2.1pp 2.2pp
Sales and marketing costs -12.1 -12.0 -13.7 -11.5% -12.0%
Administrative costs -246.1 -245.3 -244.4 0.7% 0.4%
Adjusted EBITA 221.9 223.4 144.8 53.3% 54.3%
Adjusted EBITA margin
13.4% 13.6% 9.7% 3.8pp 3.9pp
Other operating income / expense -0.0 -0.0 0.4 -110.4% -110.4%
EBITA 221.9 223.4 145.2 52.8% 53.9%
EBITA margin
13.4% 13.6% 9.7% 3.7pp 3.9pp
Amortisation -29.1 -29.1 -34.9 -16.5% -16.5%
Operating profit (EBIT) 192.8 194.3 110.3 74.8% 76.1%
Operating profit margin
11.7% 11.8% 7.4 % 4.3pp 4.4pp
Net financials -34.3 -34.2 -34.7 -1.1% -1.3%
Income / loss, joint venture / associates -4.3 -4.3 -1.8 138.8% 138.8%
Profit / loss before tax 154.1 155.7 73.8 108.9% 111.0%
Tax -35.3 -35.3 -18.6 89.8% 89.7%
Effective tax rate
22.9% 22.6% 25.2% -2.3pp -2.5pp
Net profit / loss 118.8 120.4 55.2 115.3% 118.2%
Additional KPIs
Adjusted EBITDA 269.1 270.5 195.1 38.0% 38.7%
Adjusted EBITDA margin
16.3% 16.4% 13.1% 3.3pp 3.4pp
Free cash flow 148.2 N/A -72.5 -304.6% N/A
Cash conversion rate
104.7% N/A -87.9% 192.7pp N/A
*Constant currencies measured using average exchange rates for Q2 2023
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
5
38
lated to both Smarter Airports and Festina
Finance driven by continued investment in
market related activities in accordance with
strategic plans.
Profit before tax increased 108.9% to DKK
154.1m mainly driven by the increase in
EBIT.
Income taxes in Q2 2024 were DKK 35.3m
compared to DKK 18.6m the same quarter
last year. The effective tax rate was 22.9%
in the quarter, compared to 25.2% in Q2
2023. The decrease in effective tax rate
was mainly caused by lower non-deducti-
ble expenses compared to Q2 2023.
Free cash flow increased by DKK 220.7m
from negative DKK 72.5m in Q2 to DKK
148.2m in Q2 2024, driven by improved
EBITDA and working capital changes.
Sales and marketing costs were DKK 12.1m
and administrative costs were DKK 246.1m,
both in line with the same period last year.
Adjusted EBITDA increased 38% to DKK
269.1m in Q2 2024 compared to DKK 195.1m
in Q2 2023. The adjusted EBITDA margin
was 16.3% (constant 16.4%), which was
an improvement of 3.3 percentage points
compared to the same quarter last year.
The improvement was mainly driven by the
Danish entity.
Amortisation was DKK 29.1m in Q2 2024
and DKK 5.8m lower than the same period
last year.
Operating profit (EBIT) amounted to DKK
192.8m in Q2 2024 compared to DKK
110.3m in Q2 2023 equal to an increase of
74.8%. EBIT margin was 11.7%, compared to
7.4% in the same quarter last year.
Net financials were negative DKK 34.3m in
Q2 2024, in line with Q2 2023.
Loss from joint venture and associate was
DKK 4.3m in Q2 2024, compared to DKK
1.8m last year. The increase in loss was re-
PERFORMANCEOVERVIEWQ2CONTINUED
Reported revenue grew 10.5% (constant
10.2%) compared to Q2 2023 and amount-
ed to DKK 1,650.2m in Q2 2024. Revenue
from public and private clients increased
by 11.8% and 7.7% respectively, compared
to the same period last year. The strong
performance was driven by the continued
recovery in the Danish part of the Group as
well as continued strong growth in Netcom-
pany-Intrasoft and the Netherlands. Due
to the timing of Easter, Q2 2024 had more
working days in Denmark, UK, Norway and
the Netherlands, which had a positive im-
pact on revenue growth.
Client facing FTEs grew 2.1% and FTEs at
the end of Q2 2024 amounted to 7,884.
Gross profit margin increased by 2.1 per-
centage points to 29.1% in Q2 2024, com-
pared to 27% in the same period last year,
driven by more working days in Q2 2024,
but somewhat offset by lower license rev-
enue in Q2 2024 compared to Q2 2023.
Sequentially, gross profit margin grew 1.7
percentage points from Q1 to Q2 despite
fewer working days in Q2 compared to Q1.
The sequential increase was driven by im-
proved utilisation in Denmark, Norway and
the Netherlands.
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
6
38
Business Segments Q2
DKK million
Q2 2024
Constant (2023 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,645.7 790.6 580.2 142.1 82.1 50.7
Gross profit 486.3 306.1 129.5 22.1 11.2 17.4
Gross profit margin 29.6% 38.7% 22.3% 15.6% 13.6% 34.4%
Local admin costs -201.5 -115.3 -50.2 -16.8 -12.1 -7.2
Adjusted EBITDA before allocated cost from HQ 284.8 190.8 79.3 5.3 -0.9 10.2
Adjusted EBITDA margin before allocated cost from HQ
17.3% 24.1% 13.7% 3.8% -1.1% 20.2%
Allocated costs from HQ -14.3 -10.2 0.0 -2.1 -1.3 -0.7
Depreciation -47.1 -24.1 -18.1 -1.3 -2.0 -1.6
Amortisation -29.1 -11.6 -14.1 -1.8 -1.1 -0.6
Other operating income / expense -0.0 0.0 -0.0 0.0 0.0 0.0
EBIT 194.3 144.9 47.1 0.2 -5.3 7.4
Client facing FTEs 7,365 2,814 3,433 577 356 184
DKK million
Q2 2023
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,493.9 693.6 523.3 169.1 76.4 31.4
Gross profit 407.2 235.8 120.8 41.6 7.7 1.4
Gross profit margin
27.3% 34.0% 23.1% 24.6% 10.1% 4.5%
Local admin costs -200.1 -110.6 -45.8 -23.1 -13.3 -7.2
Adjusted EBITDA before allocated cost from HQ 207.1 125.1 74.9 18.5 -5.6 -5.8
Adjusted EBITDA margin before allocated cost from HQ
13.9% 18.0% 14.3% 10.9% -7.4%
-18.4%
Allocated costs from HQ -12.1 -8.4 0.0 -2.1 -1.0 -0.5
Depreciation -50.3 -30.6 -13.5 -2.8 -1.9 -1.5
Amortisation -34.9 -17.3 -10.8 -3.9 -1.9 -1.0
Other operating income / expense 0.4 0.0 0.4 0.0 0.0 0.0
EBIT 110.3 68.8 51.0 9.7 -10.5 -8.8
Client facing FTEs 7,214 2,874 3,204 629 349 158
Revenue, %
8.6%
48.0%
35.3%
Q2 2024
3.1%
5.0%
Revenue, %
11.3%
46.4%
35.0%
Q2 2023
2.1%
5.1%
NORWAY
DENMARK
UNITEDKINGDOM
INTRASOFT
NETHERLANDS
NORWAY
DENMARK
UNITEDKINGDOM
INTRASOFT
NETHERLANDS
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
7
38
Netcompany Denmark
Revenue in Denmark increased 14% caused
by increases of 15.9% in the public seg-
ment and 11% in the private segment. The
improvement in both the public and private
segment was mainly driven by increased
utilisation and by three more working days
due to the timing of Easter. In addition, rev-
enue in Denmark was positively impacted
by an increase in our PULSE platform sales
in the private segment.
As a consequence of improved utilisation
and increased number of working days,
gross profit margin increased to 38.7% in
Q2 2024 compared to 34% in Q2 2023. Se-
quentially, there was one working day less
in Q2 compared to Q1, and despite that,
margin was up 1.6 pecentage points from
Q1 2024, confirming the improved perfor-
mance in the Danish business unit.
Adjusted EBITDA margin was 24.1% in Q2
2024 compared to 18% in Q2 2023.
Client facing FTEs decreased 2.1% com-
pared to Q2 2023.
Netcompany-Intrasoft
Revenue in Netcompany-Intrasoft in-
creased by 10.9% driven by the public
and EU area that grew 15.6% despite a
tough comparable in Q2 2023. However,
the tough comparable resulted in a 2.2%
decline in the private segment. Revenue
was positively impacted by an increase in
license revenue, with the SOLON product
win in Sweden to Skatteverket.
Gross profit margin decreased 0.8 per-
centage points to 22.3% compared 23.1% in
Q2 2023, due to higher amount of revenue
from licenses recognised in Q2 2023.
As a consequense of the different revenue
mix, adjusted EBITDA margin decreased to
13.7% compared to 14.3% the same quarter
last year. Adjusted for the license revenue,
margins improved.
Client facing FTEs grew 7.1% in Q2 2024.
Netcompany UK
Netcompany UK realised revenue of DKK
142.1m in Q2 2024, compared to DKK 169.1m
in Q2 2023 mainly as a consequence of the
slower than expected ramp up under the
DALAS framework, announced in connec-
tion with Q1 2024. Revenue from the frame-
work, will thus be more backend loaded for
the year and the full impact will not be seen
before 2025.
As a result of decline in topline and time
spent on business development, gross
margin decreased 9 percentage points to
15.6%.
Adjusted EBITDA margin was 3.8% com-
pared to 10.9% in the same quarter last
year driven by decreased gross profit mar-
gin, and somewhat offset by a decrease in
administrative costs.
Client facing FTEs decreased by 8.2% in Q2
2024.
Netcompany Norway
Revenue in Netcompany Norway increased
7.5% to DKK 82.1m in Q2 2024, despite
slower than expected ramp up on the Avi-
nor contract, driven by an increase of 10.9%
in the public segment and 3.5% in the pri-
vate segment.
Gross profit margin increased by 3.5 per-
centage points, mainly driven by two more
working days in Q2 2024 compared to the
same quarter last year.
Adjusted EBITDA margin improved by 6.3
percentage points to negative 1.1% in Q2
2024 compared to negative 7.4% in Q2
2023. Adjusted for fewer working days
in Q2 2024 compared to Q1 2024, margin
improved sequentially, and is expected to
increase further during 2024 as the staff-
ing on Avinor is ramping up throughout the
year.
Client facing FTEs grew 1.8% in Q2 2024.
Netcompany Netherlands
Netcompany Netherlands continued the
strong growth from the beginning of the
year and grew revenue 61.2% in Q2 2024
compared to the same quarter last year.
Growth was solely generated in the public
segment.
Gross profit margin was 34.4% in Q2 2024
compared to 4.5% in the same quarter last
year, as a result of better project econom-
ics and improved utilisation driven by joint
projects.
Consequently, adjusted EBITDA margin was
20.2% in the quarter and significantly better
than negative 18.4% realised in Q2 2023.
Client facing FTEs increased 16.4% com-
pared to the same quarter last year.
BUSINESSSEGMENTSQ2CONTINUED
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
8
38
YTD 2024 YTD 2024 % change % change
DKK million
(reported) (constant)* YTD 2023 (reported) (constant)* Total 2023
Revenue 3,248.4 3,240.8 3,034.1 7.1 % 6.8% 6,078.4
Cost of services -2,330.2 -2,319.6 -2,191.2 6.3% 5.9% -4,375.5
Gross profit 918.2 921.2 842.9 8.9% 9.3% 1,703.0
Gross profit margin 28.3% 28.4% 27.8 % 0.5pp 0.6pp 28.0%
Sales and marketing costs -23.9 -23.8 -25.6 -6.6% -7.0% -54.7
Administrative costs -473.0 -471.2 -475.6 -0.6% -0.9% -935.5
Adjusted EBITA 421.3 426.1 341.6 23.3% 24.7% 712.7
Adjusted EBITA margin 13.0% 13.1% 11.3% 1.7pp 1.9pp 11.7%
Special items -0.7 -0.7 0.0 N /A N/A -0.5
Other operating income / expense 0.1 0.1 0.6 -78.2% -78.2% -0.0
EBITA 420.7 425.5 342.2 22.9% 24.3% 712.2
EBITA margin 13.0% 13.1% 11.3% 1.7pp 1.9pp 11.7%
Amortisation -57.6 -57.6 -68.7 -16.1% -16.2% -134.2
Operating profit (EBIT) 363.1 368.0 273.6 32.7% 34.5% 578.0
Operating profit margin 11.2% 11.4% 9.0% 2.2pp 2.3pp 9.5%
Net financials -68.3 -68.3 -64.3 6.3% 6.2% -138.0
Income / loss, joint venture / associates -9.2 -9.2 -4.5 104.4% 104.4% -7.7
Profit / loss before tax 285.6 290.5 204.8 39.4% 41.9% 432.3
Tax -74.2 -74.1 -46.3 60.3% 60.0% -128.2
Effective tax rate 26.0% 25.5% 22.6% 3.4pp 2.9pp 29.7 %
Net profit / loss 211.3 216.5 158.5 33.3% 36.6% 304.0
Additional KPIs
Adjusted EBITDA 516.2 520.9 437.2 18.1% 19.2% 901.2
Adjusted EBITDA margin 15.9% 16.1% 14.4% 1.5pp 1.7pp 14.8%
Free cash flow 143.3 N/A 69.1 107.4% N/A 552.1
Cash conversion rate 55.9% N/A 32.6% 23.3pp N/A 135.1%
*Constant currencies measured using average exchange rates for 2023
Performance overview First 6 months
Reported revenue grew 7.1% (constant
6.8%) in the first six months of 2024 to DKK
3,248.4m. Revenue in the public segment
grew 9%, while revenue in private segment
grew 3.1% compared to the same period
last year.
Client facing FTEs grew 3.2% and the aver-
age number of FTEs amounted to 7,846.
Gross profit margin was 28.3% in the first
six months of 2024 compared to 27.8% in
the same period last year. Adjusting for
the lower license revenue in the first half
of 2024 compared to the first half of 2023,
gross margin would have increased around
1 percentage point further from realised
levels.
Adjusted EBITDA increased 18.1% in the first
six months of 2024 to DKK 516.2m. The
adjusted EBITDA margin was 15.9% in the
first six months of 2024 compared to 14.4%
in the same period last year. The increase
was a result of the continued recovery in
the Danish part of the Group and improved
performance in Netherlands and Norway.
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
9
38
Business Segments First 6 months
DKK million
YTD 2024
Constant (2023 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 3,240.8 1,559.8 1,109.8 300.1 172.1 99.1
Gross profit 932.5 591.7 231.3 52.0 23.8 33.7
Gross profit margin
28.8% 37.9% 20.8% 17.3% 13.8% 34.0%
Local admin costs -382.7 -217.8 -94.7 -31.6 -24.9 -13.9
Adjusted EBITDA before allocated cost from HQ 549.7 374.0 136.6 20.4 -1.1 19.8
Adjusted EBITDA margin before allocated cost from HQ
17.0% 24.0% 12.3% 6.8% -0.7%
20.0%
Allocated costs from HQ -28.8 -20.3 0.0 -4.5 -2.6 -1.5
Special Items, allocated -0.7 -0.5 0.0 -0.1 -0.1 -0.0
Depreciation -94.8 -48.0 -35.6 -3.9 -4.2 -3.2
Amortisation -57.6 -23.0 -27.4 -3.8 -2.2 -1.2
Other operating income / expense 0.1 0.0 0.1 0.0 0.0 0.0
EBIT 368.0 282.2 73.8 8.2 -10.2 13.9
Client facing FTEs 7,341 2,775 3,440 589 356 182
DKK million
YTD 2023
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 3,034.1 1,462.8 1,005.3 333.8 166.3 65.8
Gross profit 852.0 510.1 219.0 91.0 23.4 8.5
Gross profit margin
28.1% 34.9% 21.8% 27.3% 14.1% 12.9%
Local admin costs -388.5 -218.1 -88.2 -40.0 -28.6 -13.7
Adjusted EBITDA before allocated cost from HQ 463.5 292.0 130.9 51.0 -5.2 -5.2
Adjusted EBITDA margin before allocated cost from HQ
15.3% 20.0% 13.0% 15.3% -3.1% -7.9%
Allocated costs from HQ -26.3 -18.6 0.0 -4.4 -2.2 -1.1
Depreciation -95.6 -58.7 -24.1 -6.0 -3.8 -3.0
Amortisation -68.7 -35.0 -20.6 -7.4 -3.8 -1.9
Other operating income / expense 0.6 0.0 0.6 0.0 0.0 0.0
EBIT 273.6 179.7 86.8 33.3 -15.0 -11.2
Client facing FTEs 7,117 2,872 3,155 592 343 155
Revenue, %
9.3%
48.1%
34.2%
YTD 2024
3.1%
5.3%
Revenue, %
11.0%
48.2%
33.1%
YTD 2023
2.2%
5.5%
NORWAY
DENMARK
UNITEDKINGDOM
INTRASOFT
NETHERLANDS
NORWAY
DENMARK
UNITEDKINGDOM
INTRASOFT
NETHERLANDS
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
10
38
Netcompany Denmark
Revenue growth in the Danish business unit
was 6.6% for the first six months of 2024.
Revenue in the public segment grew 8.4%
and in the private segment revenue grew
3.8% in the period. In the first half of 2024
both segments benefitted from the Go-To-
Market strategy, launched in the beginning
of 2023, with focus on product and plat-
form sales.
Gross profit margin increased 3.1 percent-
age points to 37.9%. The increase was driv-
en by improved performance and utilisation
in the business unit.
Adjusted EBITDA increased 28.1% to DKK
374m in the first six months of 2024, yield-
ing a margin of 24% compared to 20% in
the same period last year. The increase
was a result of improved gross profit mar-
gin combined with administrative costs on
level with the same period last year.
Netcompany-Intrasoft
Netcompany-Intrasoft grew revenue 10.4%
in the first six months of 2024, despite
tough comparable of 23.1% revenue growth
for the first six months of 2023. Revenue
growth was driven by strong performance
in the public and EU area that grew 14.7%,
while revenue in private segment declined
1.7% in the period. The decline in private
segment was expected due to tough com-
parable, as private segment grew more
than 20% in the first six months of 2023.
Gross profit margin was 20.8% in the first
six months of the year, compared to 21.8%
in the same period last year. The lower
margin was a result of lower license rev-
enue in the first half of 2024 compared to
2023. For 2024, license revenue is expect-
ed to be backend-loaded.
Adjusted EBITDA grew 4.4% to DKK 136.6m
for the first six months of 2024 yielding a
margin of 12.3% for the first half of 2024
against 13% in the first half of 2023.
Netcompany UK
Revenue in the UK was DKK 300.1m for the
first six months of 2024, compared to DKK
333.8m in the same period in 2023. The
decline in revenue was a result of a 18.1%
decline in the public segment, despite a
revenue growth of 13.4% in the private seg-
ment in the period.
In Q1 2024, Netcompany UK won a signifi-
cant contract within the DALAS framework
with duration of up to five years and an
estimated contract spend of £120-£135m.
As a part of the contract, 30% will be allo-
cated to subcontractors and Netcompany
UK are obliged to recognise all revenue and
passthrough work to the subcontractors.
Going forward, passthrough revenue and
costs associated to subcontractors will be
outlined when realised.
Revenue from the DALAS contract is not
expected to be fully mobilised till 2025, due
to slower ramp up than initially expected.
Gross profit margin in the UK was 17.3%
for the first half of 2024. The lower margin
compared to the same period the year be-
fore, was a result of continued time spend
on business development in the UK.
Adjusted EBITDA margin was 6.8% for the
first six months of 2024 compared to 15.3%
in the same period last year.
Netcompany Norway
Revenue in Netcompany Norway grew
3.5% in the first half of 2024, driven by the
public segment that grew revenue 5.6% in
the period, whereas the private segment
was on level with the first half of 2023 and
increased by 1.1%.
Ramp up of staffing for the Avinor contract
was slower than expected, as all employ-
ees must get a security clearance to work
on the project. Despite the slower than
anticipated ramp up, it is still expected that
the full amount of NOK 1.2bn will be real-
ised within the contract period running until
2030.
The gross profit in Norway was DKK 23.8m
for the first half of 2024, yielding a margin
of 13.8%, in line with the gross profit margin
realised in the same period the year before.
Adjusted EBITDA was close to breakeven
for the first six month of the year.
Netcompany Netherlands
Netcompany Netherlands grew revenue
50.6% for the first six months of 2024, com-
pared to the same period the year before –
solely driven by the public segment.
The gross profit margin was 34% for the
first half, against 12.9% for the same period
in 2023. The improvement in margin was
a result of continued focus on jointed pro-
jects delivery and no more legacy projects
in the business unit.
Adjusted EBITDA margin was 20% for the
first six months of 2024.
BUSINESSSEGMENTSFIRST6MONTHSCONTINUED
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
11
38
Revenue visibility
Netcompany measures revenue visibili-
ty on a 12 months rolling basis, based on
two main input parameters, which are
defined as the total value of committed
engagements (comprised of fixed price en-
gagements and service agreements), and
ongoing time and material engagements
with a high likelihood of conversion and/or
prolongation, defined as non-contractual
committed engagements.
By the beginning of July 2024, revenue vis-
ibility for 2024 amounted to DKK 5,841.2m,
of which contractual committed revenue
amounted to DKK 2,435.2m and non-con-
tractual committed engagements amount-
ed to DKK 157.6m, while realised revenue
in the first six months of 2024 amounted to
DKK 3,248.4m.
Compared to Q2 2023, revenue visibility
improved by 6.7%. Compared to Q1 2024,
revenue visibility improved by 7.8%.
License revenue is expected to be more
backend loaded in 2024 compared to 2023.
Revenue visibility in the public segment for
2024 amounted to DKK 4,053.2m, of which
for Netcompany-Intrasoft DKK 942.5m
is expected to be released in the last six
month of 2024 and DKK 5,559.2m is ex-
pected to be released in the period from
2025 and 2031.
Public segment Private segment Total segment
DKK million
contractual committed revenue amount-
ed to DKK 1,758.9m and non-contractual
committed engagements amounted to DKK
77.4m, while realised revenue amounted to
DKK 2,216.9m in the first six months.
Revenue visibility in the private segment for
2024 amounted to DKK 1,788m, of which
contractual committed revenue amounted
to DKK 676.3m and non-contractual com-
mitted engagements amounted to DKK
80.2m, while realised revenue amounted to
1,031.5m in the first six months.
By the beginning of July 2024, the total
order backlog for Netcompany-Intrasoft
amounted to DKK 6,501.7m mainly within
EU institutions. Of the total order backlog
,.
.%
,.
,.
.
.
.
.%
.
.%
.%
.%
.%
.%
.%
,.
,.
,.
Revenue
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
,.
Non con-
tractual
committed
.
.%
.%
.
.%
.
Revenue
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
Non con-
tractual
committed
Revenue
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
Non con-
tractual
committed
.
.%
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
12
38
Employees
Netcompany employed an average of 7,884
FTEs in Q2 2024, which was an increase
of 186 FTEs compared to Q2 2023 (7,699
FTEs).
The number of client facing employees for
the Group increased by 151 from 7,214 in Q2
2023 to 7,365 in Q2 2024, while the level of
non-client facing employees was 6.6% in
Q2 2024 compared to 6.3% in Q2 2023. The
level of non-client facing employees was
unchanged compared to Q4 2023 and Q1
2024.
The attrition rate for the last twelve months
was 17.2%, which was on level with the
same period last year. On a sequential ba-
sis the churn rate increased 0.9 percentage
points compared to Q1 2024.
3 months rolling churn rates have increased
in Denmark, Norway, UK and Greece com-
pared to the same period last year.
Avg. FTEs increased to 7,884 during Q2 2024
Attrition rate
21.3%
24.3%
15.5%
16.8%
20.1%
18.1%
34.7%
DK NO UK NL
27.0%
GR LUBE
25.2%
18.8%
12.1%
21.0%
LTM JUNE 2023
LTM JUNE 2024
3 months rolling churn
JUNE/JULY 2024
20%
5%
25%
10%
30%
15%
35%
40%
45%
50%
12.1%
14.2%
14.1%
16.2%
15.2%
10.8%
9.7%
16.9%
12.7%
NONCLIENTFACING
FREELANCERS
UNITEDKINGDOM POLAND
DENMARK
UKCONTRACTORS
VIETNAM
NETHERLANDS
NORWAY
INTRASOFT
YTD
YTD
,
, ,
,
,
Q
,
,
,
,, ,
,
Q
,
,
,
,
,
,
,
,
,
,
,
,
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
13
38
1
Taxes paid within the Group are, due to local tax regula-
tions, paid on account in Q1 and in Q4. To adjust for this
timing mismatch between expensed and paid corporate
income taxes the free cash flow should be viewed in a
tax normalised manner to better reflect the underlying
development in free cash flow based on operations rather
than impact from local tax legislation in Denmark.
Free cash flow and cash conversion rate
The Group generated a free cash flow of
DKK 148.2m in Q2 2024 compared to neg-
ative DKK 72.5m in Q2 2023. The develop-
ment was driven by improvement in EBITDA
and working capital changes. EBITDA for
the quarter increased by DKK 73.6m to
DKK 269.1m compared to DKK 195.5m in Q2
2023. Working capital changes in Q2 2024
impacted free cash flow negative by DKK
69m compared to negative DKK 175.4m in
Q2 2023.
The development in working capital chang-
es was mainly driven by the development
in work in progress, which decreased by
DKK 27.2m in Q2 2024 compared to an in-
crease of DKK 78.1m in the same period last
year. The decrease was caused by a large
amount being invoiced end of Q2 2024,
which consequently increased trade receiv-
ables significantly by DKK 172.3m within
the quarter. However, the increase in trade
receivables was less significant in Q2 2024
compared to Q2 2023, due to the trade re-
ceivables ramped up by the end of Q1 2024
and collected in the beginning of Q2 2024,
caused by the timing of Easter.
Within Q2 2024, the negative impact from
trade receivables of DKK 172.3m was
somewhat offset by the development in
combined work in progress of DKK 62.7m.
In addition, free cash flow was furthermore
impacted positively by the development in
other debt, which increased by DKK 57.4m
in Q2 2024.
Normalised for taxes paid on account
1
,
the free cash flow for Q2 2024 was DKK
111.4m compared to negative DKK 93m in
Q2 2023.
Cash conversion rate increased from neg-
ative 87.9% in Q2 2023 to positive 104.7%
in Q2 2024. Adjusted for taxes paid on ac-
count, cash conversion rate increased from
negative 112.8% to positive 78.7%.
For the first six months of 2024, Netcom-
pany generated a free cash flow of DKK
143.3m compared to DKK 69.1m for the
same period last year, corresponding to
an increase of 107.4%, mainly driven by an
improved operating result. Consequently,
cash conversion ratio tax normalised in-
creased from 32.6% to 55.9% in the first six
months of 2024.
Trade receivables
End of Q2 2024, trade receivables amount-
ed DKK 1,324.1m and increased by 19%
compared to DKK 1,112.3m end of Q2 2023.
In the same period revenue increased by
10.5%. The further increase in trade re-
ceivables was caused by milestones being
met on a number of large ongoing project,
which meant that a large amount of work
in progress was invoiced end of Q2 (as WIP
was reduced).
As a result, days sales outstanding in-
creased by 5 days from 68 days in Q2
2023 to 73 days in Q2 2024. This develop-
ment is expected to reverse during next
quarter, when these larger invoices have
been collected.
Cash flow and other significant
financial positions
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion
Total
Trade receivables, 30 June
2024
887.7 292.8 68.6 28.0 68.0 -21.1 1,324.1
Paid in the following month 388.4 219.9 68.6 16.4 10.3 0.0 703.7
% paid subsequently
43.8% 75.1% 99.9% 58.4% 15.2% 0.0% 53.1%
Trade receivables, 30 June
2023
726.8 203.6 67.4 26.8 104.9 -17.3 1,112.3
Paid in the following month 295.6 152.6 57.5 11.9 19.2 0.0 536.7
% paid subsequently
40.7% 74.9% 85.3% 44.6% 18.3% 0.0% 48.3%
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion Total
The overdue part of trade receivables im-
proved from 35.7% by the end of Q2 2023
to 34% by the end of Q2 2024, and the
overdue by more than 90 days decreased
by 35.2%. from DKK 104.9m to DKK 68m
end of Q2 2024.
Trade receivables paid in the following
month amounted to DKK 703.7m in July,
of which DKK 315.2m was overdue end of
June, equal to a repayment of 53.1% of the
total balance compared to 48.3% last year.
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
14
38
CASHFLOWANDOTHERSIGNIFICANT
FINANCIALPOSITIONS
CONTINUED
April 2024, the loan was prolonged twice by
one year and now runs to 2027.
The combined committed facilities con-
stitute DKK 2,848.4m and an additional
facility of DKK 2,000m available only for
new acquisitions. At 30 June 2024, DKK
1,734.9m of the committed lines were
utilised on borrowings and DKK 37.5m on
guarantees, leaving a total of DKK 3,076m
available in unutilised funding of which DKK
1,182.5m can be utilised for normal opera-
tions if needed with no additional costs or
covenants.
In addition, Netcompany-Intrasoft had
utilised DKK 503.1m on local guarantees,
having no impact on the Group facilities
except for leverage.
Including net cash balance as of 30 June
2024 of DKK 237.2m available Group fund-
ing was DKK 1,419.7m.
Work in progress
At 30 June 2024, Netcompany’s work in
progress amounted to DKK 847.2m, repre-
sented by contract work in progress of DKK
1,461.3m and prepayments received from
customers of DKK 614.1m.
Work in progress decreased by 14.3% from
DKK 988.4m in Q2 2023 to DKK 847.2m in
Q2 2024, while revenue increased 10.5%
from Q2 2023 to Q2 2024. Revenue in the
prevailing 12 months (LTM) increased by
6.6%. In both comparisons of WIP to reve-
nue, development in revenue was opposite
the development in combined work in pro-
gress, which was caused by larger amounts
from work in progress being invoiced end
of Q2 2024.
As a total, trade receivables and work in
progress increased by 3.4% from DKK
2,100.7m end of Q2 2023 to DKK 2,171.2m
end of Q2 2024.
Funding and liquidity
Originally, the maturity of the Group bank
loan would expire in 2025. In April 2023 and
-.%
+.%
+.%
.
,.
Work in progress overview (DKK million)
,
,
Jun.
Q
Q
LTM
,.
WIP
REVENUE
.
Jun.
,.
Q
Q
LTM
,.
Risk management
Please refer to the overview of risk factors
provided by the Group in the Annual Report
for 2023.
Capital structure
In Q2 2024, the debt ratio based on adjust-
ed EBITDA was 1.5x compared to 1.4x in Q2
2023. All covenants are complied with.
Events after the balance sheet date
To this date, no events have occurred after
the balance sheet date, which would influ-
ence the evaluation of this report.
,
,
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
15
38
Netcompany realised revenue growth of
10.2% and adjusted EBITDA margin of 16.4%
(both in constant currencies) in Q2 2024
positively impacted by the timing of Easter.
For the first six months revenue growth was
6.8% and adjusted EBITDA margin was 16.1%
(both in constant currencies) - an improve-
ment of 1.7 percentage points compared to
the first six months of 2023.
As expected, cash flow was strong in Q2
2024, reversing the negative cash flow in Q1.
The positive development in cash flow for
the first half of 2024 was driven by im-
provement in EBITDA and working capital
changes.
As a result, Netcompany will initiate another
share buyback programme to be executed
towards the end October 2024. As Necom-
pany is also deleveraging by DKK 106.5m
in Q3, the share buyback programme to be
initiated is DKK 150m, bringing total share
buyback to DKK 550m.
We maintain our expectation to full year
revenue growth of 7-10% and an adjusted
EBITDA margin of 15-18%. We increase the
expected share buyback programme for
2024 from more than DKK 500m to more
than DKK 700m.
We reiterate our midterm financial targets
of revenue of at least DKK 8.5bn, EBITDA
margin of at least 20% and re-distribution of
at least DKK 2bn of cash to shareholders by
the end of 2026.
A number of risks and assumptions to our
full year guidance for 2024 were discussed
in connection with our Annual Report 2023.
Those risks and assumptions still prevail
and could impact our performance for the
remaining part of 2024.
Guidance 2024
Original Actual
target performance
Financial metrics in constant currencies
2024 2023
Group revenue growth, organic 7-10% 10.7%
Group Adjusted EBITDA margin 15-18% 14.9%
Midterm targets 2026
Revenue >8.5bn
Adjusted EBITDA margin >20%
Cash redistribution to share-
holders >2bn
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
16
38
Capital
Netcompany’s share capital is DKK 50m
divided into 50m shares. End of Q2 2024
Netcompany held 1,339,318 treasury shares
equivalent to 2.7% of the share capital.
Some of the shares will be used to honor
the Group’s commitments under its long-
term incentive programmes. Shares exced-
ing the commitments under the long-term
incentive programmes will be cancelled on
an ongoing basis.
Share-based incentive schemes/restrict-
ed stock units
In total, 468,109 restricted stock unites
(RSUs) and 154,200 matching shares
in relation to the share-based incentive
schemes were issued at 30 June 2024 of
which 101,640 RSUs and 24,000 matching
shares were granted to Executive Man-
agement and 366,469 RSUs and 130,200
matching shares were granted to Other Key
Management Personnel and Other Employ-
ees.
The fair value of the shares at grant was
DKK 180.3m. The cost related hereto is
expensed over the vesting period.
A total amount of DKK 14.1m was recog-
nised as personnel costs in the income
statement in Q2 2024 and DKK 26.8m for
the first six month of 2024.
Additional information on the holdings of
Netcompany shares and restricted stock
units by members of the Board of Directors
and Executive Management Board is dis-
closed in the Remuneration Report.
Financial Calendar
31 October 2024
Interim report for the first 9 months of
2024.
Shareholder information
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
17
38
Executive Management
Board of Directors
Statement of the Board of Directors
and Executive Management
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
18
38
Consolidated interim
financial statements
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
19
38
Income statement and Statement
of comprehensive income
DKK million
Note Q2 2024 Q2 2023 YTD 2024 YTD 2023 Total 2023
Income statement
Revenue 1 1,650.2 1,493.9 3,248.4 3,034.1 6,078.4
Cost of services 2 -1,170.1 -1,091.1 -2,330.2 -2,191.2 -4,375.5
Gross profit 480.1 402.8 918.2 842.9 1,703.0
Sales and marketing costs -12.1 -13.7 -23.9 -25.6 -54.7
Administrative costs 3 -246.1 -244.4 -473.0 -475.6 -935.5
Special items 0.0 0.0 -0.7 0.0 -0.5
Other operating income / expense -0.0 0.4 0.1 0.6 -0.0
EBITA 221.9 145.2 420.7 342.2 712.2
Amortisation -29.1 -34.9 -57.6 -68.7 -134.2
Operating profit (EBIT) 192.8 110.3 363.1 273.6 578.0
Financial income 4 11.1 5.0 15.8 8.9 25.2
Financial expenses 4 -45.4 -39.7 -84.1 -73.2 -163.3
Income / loss, joint venture / associates -4.3 -1.8 -9.2 -4.5 -7.7
Profit / loss before tax 154.1 73.8 285.6 204.8 432.3
Tax on the profit for the period -35.3 -18.6 -74.2 -46.3 -128.2
Net profit / loss for the period 118.8 55.2 211.3 158.5 304.0
Of which
Non-controlling interest
-0.7 0.3 -1.6 -0.0 0.5
Netcompany Group A/S' share 120 55 213 158 303
Earnings per share
Earnings per share (DKK) 5 2.46 1.11 4.34 3.20 6.13
Diluted Earnings per share (DKK) 5
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
20
38
Statement of comprehensive income
Net profit / loss for the period 118.8 55.2 211.3 158.5 304.0
Other comprehensive income items that may be reclassified subsequently
to profit or loss:
Exchange rate adjustments on translating foreign subsidiaries 3.1 4.9 2.9 4.7 6.7
Other comprehensive income items that may not be reclassified to profit or
loss:
Actuarial profit / loss on defined benefit plans 0.0 0.0 0.0 0.0 1.1
Other comprehensive income, net of tax 3.1 4.9 2.9 4.7 7.8
Of which
Non-controlling interest
Netcompany Group A/S' share
Total comprehensive income / loss 121.9 60.1 214.2 163.2 311.8
Of which
Non-controlling interest
-0.6 0.3 -1.6 -0.1 0.4
Netcompany Group A/S' share
DKK million
Note Q2 2024 Q2 2023 YTD 2024 YTD 2023 Total 2023
INCOMESTATEMENTANDSTATEMENTOFCOMPREHENSIVEINCOME
CONTINUED
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
21
38
Statement of financial position
Equity and liabilities
Share capital 50.0 50.0 50.0
Treasury shares -438.9 -183.6 -193.1
Retained earnings 4,166.7 3,820.7 3,965.1
Other reserves
Equity attributable to Group 3,779.2 3,687.5 3,823.5
Non-controlling interest 5.0 6.1 6.5
Total equity 3,784.2 3,693.6 3,830.1
Borrowings 1,572.6 1,573.9 1,586.9
Lease liabilities 735.9 620.0 761.8
Pension obligations 20.5 15.1 19.0
Deferred tax liability 64.1 105.1 69.0
Total non-current liabilities 2,393.0 2,314.1 2,436.7
Borrowings 154.4 42.5 146.9
Lease liabilities 117.5 84.7 114.7
Pension obligations 1.7 5.8 1.7
Prebilled invoices 7 614.1 456.4 561.3
Trade payables 326.7 340.2 340.0
Other payables 8 804.7 660.2 670.9
Provisions 2.3 2.5 16.7
Income tax payable 22.5 0.0 40.9
Total current liabilities 2,043.9 1,592.3 1,893.1
Total liabilities 4,437.0 3,906.3 4,329.8
Total equity and liabilities 8,221.2 7,600.0 8,159.8
30 June 30 June 31 December
DKK million
Note 2024 2023 2023
Assets
Intangible assets 3,717.0 3,749.2 3,733.1
Tangible assets 894.3 792.9 946.9
Investment in joint venture 84.1 92.9 89.5
Investment in associates 110.8 8.0 114.6
Other securities and investments 1.1 1.1 1.1
Other receivables 56.9 55.2 54.5
Deferred tax assets 48.2 36.2 41.8
Total non-current assets 4,912.4 4,735.5 4,981.4
Trade receivables 6 1,324.1 1,112.3 1,261.8
Receivables from joint venture 10.0 3.4 8.1
Receivables from associates 13.6 16.4 12.7
Contract work in progress 7 1,461.3 1,444.8 1,263.9
Other receivables 121.8 89.8 61.9
Prepayments 114.0 120.9 122.0
Tax receivables 26.9 40.1 0.0
Total receivables 3,071.5 2,827.7 2,730.3
Cash 237.2 36.7 448.1
Total current assets 3,308.8 2,864.4 3,178.4
Total assets 8,221.2 7,600.0 8,159.8
30 June 30 June 31 December
DKK million
Note 2024 2023 2023
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
22
38
Cash Flow statement
DKK million
Q2 2024 Q2 2023 YTD 2024 YTD 2023 Total 2023
Operating profit (EBIT) 192.8 110.3 363.1 273.6 578.0
Depreciation and amortisation 76.3 85.2 152.6 164.2 322.7
Non-cash items 16.1 14.0 27.6 21.2 44.2
Working capital changes -69.0 -175.4 -153.9 -161.0 26.7
Total 216.2 34.1 389.3 298.0 971.6
Income taxes paid -9.2 -6.1 -130.9 -60.9 -103.3
Financial income received 7.8 1.2 9.9 2.6 7.6
Financial expenses paid -37.5 -28.8 -62.2 -49.1 -117.3
Cash flow from operating activities 177.3 0.4 206.2 190.6 758.6
Other investments 0.0 0.3 0.0 0.3 -105.7
Capitalisation of intangible assets -21.1 -28.8 -40.6 -58.6 -107.9
Acquisition of fixed assets -8.0 -44.0 -22.2 -62.9 -98.5
Disposals of fixed assets 0.0 0.0 0.0 0.0 4.9
Other receivables (deposits) -1.3 6.7 -2.6 0.1 4.5
Cash flow from investment activities -30.3 -65.8 -65.4 -121.1 -302.8
Payment of treasury shares -183.1 0.0 -287.5 0.0 -32.0
Proceeds from borrowings 0.0 0.0 0.0 0.5 127.5
Repayment of borrowings 0.4 -102.9 -6.2 -305.4 -314.3
Repayment of lease liabilities -30.2 -38.1 -59.6 -62.9 -124.5
Cash flow from financing activities -212.9 -141.0 -353.4 -367.8 -343.4
Net increase in cash and cash equivalents -66.0 -206.4 -212.6 -298.3 112.4
Cash and cash equivalents at the beginning 301.6 242.2 448.1 336.0 336.0
Effect of exchange rate changes on the balance cash held in foreign currencies 1.6 0.9 1.8 -1.0 -0.4
Cash and cash equivalents at the end 237.2 36.7 237.2 36.7 448.1
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
23
38
Statement of changes in Equity
Foreign
currency Total equity, Non-
Share Treasury Share-based translation Other Retained Netcompany controlling
DKK million
capital shares remuneration subsidiaries reserves earnings Group A/S interest Total equity
Equity at 1 April 2024 50.0 -265.3 54.5 5.1 1.5 3,980.0 3,825.7 5.6 3,831.3
Profit for the period 0.0 0.0 0.0 0.0 0.0 119.5 119.5 -0.7 118.8
Other comprehensive income 0.0 0.0 0.0 3.0 0.0 0.0 3.0 0.0 3.1
Total comprehensive income 0.0 0.0 0.0 3.0 0.0 119.5 122.5 -0.6 121.9
Treasury Shares for the period 0.0 -183.1 0.0 0.0 0.0 0.0 -183.1 0.0 -183.1
Share-based remuneration for the period 0.0 9.5 10.0 0.0 0.0 -5.3 14.1 0.0 14.1
Total transactions with owners 0.0 -173.7 10.0 0.0 0.0 -5.3 -169.0 0.0 -169.0
Equity at 30 June 2024 50.0 -438.9 64.4 8.1 1.5 4,094.2 3,779.2 5.0 3,784.2
Equity at 1 January 2024 50.0 -193.1 67.2 5.2 1.5 3,892.7 3,823.5 6.5 3,830.1
Profit for the period 0.0 0.0 0.0 0.0 0.0 213.0 213.0 -1.6 211.3
Other comprehensive income 0.0 0.0 0.0 2.8 0.0 0.0 2.8 0.1 2.9
Total comprehensive income 0.0 0.0 0.0 2.8 0.0 213.0 215.8 -1.6 214.2
Treasury Shares for the period 0.0 -286.8 0.0 0.0 0.0 0.0 -286.8 0.0 -286.8
Share-based remuneration for the period 0.0 41.0 -2.7 0.0 0.0 -11.5 26.8 0.0 26.8
Total transactions with owners 0.0 -245.9 -2.7 0.0 0.0 -11.5 -260.1 0.0 -260.1
Equity at 30 June 2024 50.0 -438.9 64.4 8.1 1.5 4,094.2 3,779.2 5.0 3,784.2
Equity at 1 April 2023 50.0 -186.5 40.3 -1.7 0.4 3,714.0 3,616.5 5.8 3,622.3
Profit for the period 0.0 0.0 0.0 0.0 0.0 54.9 54.9 0.3 55.2
Other comprehensive income 0.0 0.0 0.0 4.9 0.0 0.0 4.9 -0.0 4.9
Total comprehensive income 0.0 0.0 0.0 4.9 0.0 54.9 59.8 0.3 60.1
Share-based remuneration for the period 0.0 2.9 9.5 0.0 0.0 -1.2 11.2 0.0 11.2
Total transactions with owners 0.0 2.9 9.5 0.0 0.0 -1.2 11.2 0.0 11.2
Equity at 30 June 2023 50.0 -183.6 49.8 3.2 0.4 3,767.8 3,687.5 6.1 3,693.6
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
24
38
Foreign
currency Total equity, Non-
Share Treasury Share-based translation Other Retained Netcompany controlling
DKK million
capital shares remuneration subsidiaries reserves earnings Group A/S interest Total equity
STATEMENTOFCHANGESINEQUITY
CONTINUED
Equity at 1 January 2023 50.0 -313.3 54.2 -1.6 0.4 3,731.0 3,520.7 6.2 3,526.9
Adjustment related to previous year* 0.0 0.0 118.4 0.0 0.0 -120.4 -2.1 0.0 -2.1
Adjusted Equity at 1 January 2023 50.0 -313.3 172.6 -1.6 0.4 3,610.5 3,518.6 6.2 3,524.8
Profit for the period 0.0 0.0 0.0 0.0 0.0 158.5 158.5 -0.0 158.5
Other comprehensive income 0.0 0.0 0.0 4.8 0.0 0.0 4.8 -0.1 4.7
Total comprehensive income 0.0 0.0 0.0 4.8 0.0 158.5 163.3 -0.1 163.2
Share-based remuneration for the period 0.0 129.7 -122.8 0.0 0.0 -1.3 5.6 0.0 5.6
Total transactions with owners 0.0 129.7 -122.8 0.0 0.0 -1.3 5.6 0.0 5.6
Equity at 30 June 2023 50.0 -183.6 49.8 3.2 0.4 3,767.8 3,687.5 6.1 3,693.6
Equity at 1 January 2023 50.0 -313.3 54.2 -1.6 0.4 3,731.0 3,520.7 6.2 3,526.9
Adjusted Equity at 1 January 2023 50.0 -313.3 172.6 -1.6 0.4 3,610.5 3,518.6 6.2 3,524.8
Total comprehensive income 0.0 0.0 0.0 6.9 1.1 303.5 311.4 0.4 311.8
Total transactions with owners 0.0 120.2 -105.4 0.0 0.0 -21.3 -6.5 0.0 -6.5
Equity at 31 December 2023 50.0 -193.1 67.2 5.2 1.5 3,892.7 3,823.5 6.5 3,830.1
*The adjustment relates to change of accounting policies for business combinations following a compliance review of the Annual
Reports for 2020 and 2021. Reference is made to note 11 regarding accounting policies and description in the 2022 Annual Report.
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
25
38
Segment information
Public Q2
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q2 2024 Q2 2023 % change Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023
Revenue 1,128.2 1,009.1 11.8% 491.3 423.9 444.3 383.8 96.0 129.1 45.9 41.0 50.6 31.2
Cost of service -806.2 -747.5 7.9% -314.8 -293.0 -342.4 -292.9 -82.6 -99.2 -33.1 -32.5 -33.2 -29.8
Gross profit 322.0 261.6
23.1%
176.5 130.9 101.9 90.9 13.4 29.8 12.8 8.6 17.4 1.4
Gross profit margin
28.5% 25.9% 2.6pp 35.9% 30.9% 22.9% 23.7% 14.0% 23.1% 27.9% 20.8% 34.4% 4.5%
Allocated costs -160.4 -163.4 -1.8% -83.2 -84.5 -49.2 -43.0 -12.1 -19.8 -7.2 -7.5 -8.7 -8.6
Adjusted EBITA before HQ costs 161.6 98.2
64.5%
93.3 46.4 52.7 48.0 1.3 10.0 5.6 1.0 8.7 -7.2
Adjusted EBITA margin before
allocated cost from HQ
14.3% 9.7% 4.6pp 19.0% 11.0% 11.9% 12.5% 1.3% 7.8 % 12.2% 2.5% 17.1% -23.1%
Allocated costs from HQ -9.0 -7.8 15.0% -6.3 -5.2 0.0 0.0 -1.4 -1.6 -0.6 -0.5 -0.7 -0.5
EBITA 152.6 90.4
68.8%
87.0 41.3 52.7 48.0 -0.1 8.4 5.0 0.5 7.9 -7.7
EBITA margin
13.5% 9.0% 4.6pp 17.7% 9.7% 11.9% 12.5% -0.1% 6.5% 10.8% 1.2% 15.7% -24.8%
Amortisation -19.1 -22.9 -16.7% -5.4 -9.6 -11.3 -8.4 -1.2 -3.0 -0.5 -0.9 -0.6 -1.0
Operating profit 133.5 67.5
97. 8 %
81.6 31.7 41.4 39.6 -1.3 5.4 4.4 -0.4 7.3 -8.7
Operating profit margin
11.8% 6.7% 5.1pp 16.6% 7.5% 9.3% 10.3% -1.3% 4.2% 9.6% -1.1% 14.5% -27.9%
NOTE1
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
26
38
Segment information
Private Q2
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q2 2024 Q2 2023 % change Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023
Revenue 522.1 484.8 7.7 % 299.3 269.6 136.7 139.5 49.1 40.1 36.9 35.4 0.1 0.2
Cost of service -364.0 -343.6 5.9% -175.5 -169.0 -110.1 -109.8 -39.8 -28.3 -38.4 -36.2 -0.1 -0.2
Gross profit 158.1 141.2
12.0%
123.8 100.6 26.6 29.7 9.3 11.8 -1.5 -0.9 -0.0 -0.0
Gross profit margin
30.3% 29.1% 1.2pp 41.4% 37.3% 19.4% 21.3% 18.9% 29.4% -4.1% -2.4% -56.2% -4.7%
Allocated costs -83.5 -82.6 1.1% -52.1 -52.5 -18.0 -16.2 -6.3 -6.1 -7.0 -7.7 -0.0 -0.0
Adjusted EBITA before HQ costs 74.7 58.6
27. 4 %
71.7 48.1 8.6 13.5 3.0 5.7 -8.6 -8.6 -0.1 -0.1
Adjusted EBITA margin before
allocated cost from HQ
14.3% 12.1% 2.2pp 24.0% 17.8% 6.3% 9.7 % 6.1% 14.2% -23.2% -24.2% -87.6% -26.4%
Allocated costs from HQ -5.3 -4.2 24.8% -3.9 -3.2 0.0 0.0 -0.7 -0.5 -0.6 -0.5 -0.0 -0.0
Other operating income / ex-
pense
-0.0 0.4 -110.4% 0.0 0.0 -0.0 0.4 0.0 0.0 0.0 0.0 0.0 0.0
EBITA 69.3 54.8
26.5%
67.8 44.8 8.5 13.9 2.3 5.2 -9.2 -9.1 -0.1 -0.1
EBITA margin
13.3% 11.3% 2.0pp 22.6% 16.6% 6.2% 10.0% 4.7% 13.0% -24.9% -25.7% -90.1% -27.8%
Amortisation -10.1 -12.0 -16.2% -6.1 -7.7 -2.8 -2.5 -0.6 -0.9 -0.5 -1.0 -0.0 -0.0
Operating profit 59.3 42.8
38.5%
61.6 37.1 5.7 11.4 1.7 4.3 -9.7 -10.0 -0.1 -0.1
Operating profit margin
11.4% 8.8% 2.5pp 20.6% 13.8% 4.2% 8.2% 3.4% 10.8% -26.4% -28.4% -92.3% -30.2%
CONTINUED
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
27
38
Segment information
Public First 6 months
Group Denmark Intrasoft UK Norway Netherlands
DKK million
YTD 2024 YTD 2023 % change YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023
Revenue 2,216.9 2,033.6 9.0% 964.2 889.2 852.1 741.8 209.6 249.0 92.0 88.4 99.0 65.3
Cost of service -1,608.8 -1,500.9 7.2% -627.1 -609.9 -670.9 -578.8 -177.0 -185.3 -68.4 -70.0 -65.4 -56.9
Gross profit 608.0 532.7
14.1%
337.1 279.2 181.2 163.0 32.6 63.7 23.5 18.4 33.6 8.4
Gross profit margin 27.4 % 26.2% 1.2pp 35.0% 31.4% 21.3% 22.0% 15.6% 25.6% 25.6% 20.8% 33.9% 12.9%
Allocated costs -308.7 -314.4 -1.8% -159.1 -164.7 -93.6 -82.2 -24.6 -34.4 -14.4 -16.5 -17.0 -16.6
Adjusted EBITA before HQ costs 299.3 218.3
37.1 %
178.0 114.5 87.6 80.8 8.0 29.3 9.1 1.9 16.6 -8.2
Adjusted EBITA margin before
allocated cost from HQ
13.5% 10.7% 2.8pp 18.5% 12.9% 10.3% 10.9% 3.8% 11.8% 9.9% 2.2% 16.8% -12.5%
Allocated costs from HQ -18.3 -17.0 8.0% -12.5 -11.4 0.0 0.0 -3.0 -3.3 -1.3 -1.1 -1.5 -1.1
Special items -0.5 0.0 N/A -0.3 0.0 0.0 0.0 -0.1 0.0 -0.0 0.0 -0.0 0.0
EBITA 280.5 201.4
39.3%
165.2 103.1 87.6 80.8 4.9 26.1 7.8 0.8 15.1 -9.3
EBITA margin
12.7% 9.9% 2.8pp 17.1% 11.6% 10.3% 10.9% 2.3% 10.5% 8.4% 0.9% 15.3% -14.2%
Amortisation -37.6 -44.6 -15.6% -10.9 -19.4 -21.9 -15.8 -2.6 -5.6 -1 .1 -1.9 -1.2 -1.9
Operating profit 242.9 156.8
54.9%
154.3 83.7 65.7 65.0 2.3 20.5 6.7 -1.2 13.9 -11.2
Operating profit margin
11.0% 7.7 % 3.2pp 16.0% 9.4% 7.7 % 8.8% 1.1% 8.2% 7.3% -1.3% 14.0% -17.2%
CONTINUED
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
28
38
Segment information
Private First 6 months
Group Denmark Intrasoft UK Norway Netherlands
DKK million
YTD 2024 YTD 2023 % change YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023
Revenue 1,031.5 1,000.4 3.1% 595.6 573.7 259.4 263.5 98.8 84.8 77.5 7 7.9 0.2 0.5
Cost of service -721.4 -690.3 4.5% -353.8 -351.7 -211.4 -207.7 -77.6 -57.6 -78.3 -72.9 -0.3 -0.4
Gross profit 310.1 310.2
-0.0%
241.9 222.0 48.1 55.8 21.1 27.2 -0.8 5.0 -0.1 0.1
Gross profit margin
30.1% 31.0% -0.9pp 40.6% 38.7% 18.5% 21.2% 21.4% 32.1% -1.0% 6.5% -49.4% 13.8%
Allocated costs -159.4 -160.5 -0.7% -98.9 -103.2 -34.4 -29.8 -11.7 -11.5 -14.3 -15.9 -0.1 - 0.1
Adjusted EBITA before HQ costs 150.8 149.6
0.8%
143.0 118.8 13.6 26.0 9.4 15.7 -15.1 -10.9 -0.2 -0.0
Adjusted EBITA margin before
allocated cost from HQ
14.6% 15.0% -0.3pp 24.0% 20.7% 5.3% 9.9% 9.5% 18.5% -19.5% -14.0% -81.1% -4.1%
Allocated costs from HQ -10.5 -9.4 11.9% -7.8 -7.2 0.0 0.0 -1.4 -1.1 -1.3 -1.1 -0.0 -0.0
Special items -0.3 0.0 N /A -0.2 0.0 0.0 0.0 -0.0 0.0 -0.0 0.0 -0.0 0.0
Other operating income / ex-
pense
0.1 0.6 -78.2% 0.0 0.0 0.1 0.6 0.0 0.0 0.0 0.0 0.0 0.0
EBITA 140.2 140.9
-0.5%
135.0 111.6 13.8 26.6 8.0 14.6 -16.5 -12.0 -0.2 -0.0
EBITA margin
13.6% 14.1% -0.5pp 22.7% 19.5% 5.3% 10.1% 8.1% 17.2% -21.2% -15.4% -83.9% -5.4%
Amortisation -20.0 -24.1 -17.0% -12.1 -15.6 -5.6 -4.8 -1.2 -1.9 -1.1 -1.9 -0.0 -0.0
Operating profit 120.2 116.8
2.9%
122.9 96.0 8.2 21.9 6.8 12.7 -17.5 -13.8 -0.2 -0.0
Operating profit margin
11.7% 11.7% -0.0pp 20.6% 16.7% 3.2% 8.3% 6.8% 15.0% -22.6% -17.7% -86.2% -7.4%
CONTINUED
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
29
38
Segment information
Geographical
Segment information related to geographical areas
Q2 2024
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 817.0 202.5 150.4 207.9 83.8 53.4 58.9 76.4 1,650.2
Q2 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 704.6 197.9 176.3 168.6 77.5 59.7 36.4 72.7 1,493.9
CONTINUED
YTD 2024
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 1,587.2 388.0 316.5 407.2 171.7 122.9 114.6 140.2 3,248.4
YTD 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 1,484.1 372.7 346.0 317.2 168.1 142.1 75.2 128.6 3,034.1
Total 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 2,903.1 777.3 668.8 706.6 331.4 226.1 179.8 285.4 6,078.4
Geographical 6 months and full year
Segment information related to geographical areas
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
30
38
Administrative costs
Cost of services
NOTE2
DKK million
Q2 2024 Q2 2023 YTD 2024 YTD 2023 Total 2023
Cost of services -295.0 -279.8 -574.2 -549.1 -1,163.6
Salaries -869.5 -806.8 -1,744.8 -1,632.9 -3,193.6
Depreciation -5.6 -4.4 -11.2 -9.2 -18.2
Cost of services total -1,170.1 -1,091.1 -2,330.2 -2,191.2 -4,375.5
DKK million
Q2 2024 Q2 2023 YTD 2024 YTD 2023 Total 2023
Administrative costs -105.7 -113.0 -197.0 -216.4 -425.9
Salaries -98.8 -85.5 -192.3 -172.8 -339.5
Depreciation -41.6 -45.9 -83.7 -86.4 -170.2
Administrative costs total -246.1 -244.4 -473.0 -475.6 -935.5
Financial income and expenses
NOTE4
DKK million
Q2 2024 Q2 2023 YTD 2024 YTD 2023 Total 2023
Financial Income
Exchange rate adjustments 4.4 4.4 7.4 7.7 21.9
Other financial income 1.8 0.6 3.6 1.2 3.4
Fair value adjustment 4.9 0.0 4.9 0.0 0.0
Financial income total 11.1 5.0 15.8 8.9 25.2
Financial expenses
Interest expense, bank loan -27.4 -20.7 -53.7 -40.1 -88.5
Interest expense, leasing -7.9 -6.0 -15.7 -8.3 -25.3
Exchange rate adjustments -4.6 -8.0 -4.1 -17.1 -30.7
Other financial expenses -5.5 -5.0 -10.7 -7.7 -18.7
Financial expenses total -45.4 -39.7 -84.1 -73.2 -163.3
NOTE3
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
31
38
Earnings per share
NOTE5
DKK million
Q2 2024 Q2 2023 YTD 2024 YTD 2023 Total 2023
Earnings per share - EPS (DKK) 2.46 1.11 4.34 3.20 6.13
Diluted earnings per share - EPS-D (DKK) 2.43 1.10 4.30 3.18 6.09
Profit 119.5 54.9 213.0 158.5 303.5
Average number of shares 50.0 50.0 50.0 50.0 50.0
Average number of treasury shares 1.4 0.4 1.0 0.5 0.5
Average number of shares in circulation 48.6 49.6 49.0 49.5 49.5
Average number of outstanding restricted stock units 0.5 0.3 0.5 0.3 0.3
Average number of diluted shares in circulation 49.1 49.9 49.5 49.8 49.8
The Group is continuously conducting
individual assessments of bad debt.
At 30 June 2024, the Group recognised a
provision for expected credit losses of DKK
21.1m (30 June 2023: DKK 17.3m), and no
credit losses have incurred during Q2 2024.
The credit quality of trade receivables at 30
June 2024, is considered satisfactory.
Trade receivables
NOTE6
30 June 30 June 31 December
DKK million
2024 2023 2023
Not overdue 887.7 726.8 826.2
0-30 days overdue 292.8 203.6 302.9
31-60 days overdue 68.6 67.4 67.8
61-90 days overdue 28.0 26.8 13.4
Over 90 days overdue 68.0 104.9 70.7
Total trade receivables excl. expected credit loss 1,345.1 1,129.6 1,280.9
Expected credit loss -21.1 -17.3 -19.1
Total trade receivables 1,324.1 1,112.3 1,261.8
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
32
38
Contract work in progress
NOTE7
30 June 30 June 31 December
DKK million
2024 2023 2023
Selling price of work performed on fixed price projects 4,228.3 3,822.9 3,950.7
Invoiced amount on fixed price projects -3,381.1 -2,834.4 -3,248.0
Total contract work in progress 847.2 988.4 702.6
Net value – stated on a contract-per-contract basis – is presented in the statement of finan-
cial position as follows:
Contract work in progress 1,461.3 1,444.8 1,263.9
Prebilled invoices -614.1 -456.4 -561.3
Total contract work in progress 847.2 988.4 702.6
Other costs payable include accruals
for external fees, administration costs
and other items. Total other payables
have a remaining term of up to one year.
Other payables
NOTE8
30 June 30 June 31 December
DKK million
2024 2023 2023
Wages and salaries, payroll taxes, social security costs, etc. payable 117.1 98.6 131.2
Holiday pay obligation 189.2 187.4 112.2
VAT and duties 106.7 93.8 129.7
Holdback 10.2 10.2 10.2
Other costs payable 381.4 270.2 287.6
Total other payables 804.7 660.2 670.9
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
33
38
Income Statement classified by function
DKK million
Q2 2024 Q2 2023 YTD 2024 YTD 2023 Total 2023
Income statement
Revenue 1,650.2 1,493.9 3,248.4 3,034.1 6,078.4
Cost of services, incl. depreciation and amortisation -1,187.2 -1,103.6 -2,363.5 -2,215.2 -4,427.2
Gross profit 463.0 390.3 884.9 818.9 1,651.2
Sales and marketing costs -12.1 -13.7 -23.9 -25.6 -54.7
Administrative costs, incl. depreciation, amortisation and special items -258.2 -266.7 -498.0 -520.3 -1,018.5
Other operating income / expense -0.0 0.4 0.1 0.6 -0.0
Operating profit (EBIT) 192.8 110.3 363.1 273.6 578.0
Financial income 11.1 5.0 15.8 8.9 25.2
Financial expenses -45.4 -39.7 -84.1 -73.2 -163.3
Income / loss from joint venture / associates -4.3 -1.8 -9.2 -4.5 -7.7
Profit / loss before tax 154.1 73.8 285.6 204.8 432.3
Tax on the profit for the period
-35.3 -18.6 -74.2 -46.3 -128.2
Net profit / loss for the period
118.8 55.2 211.3 158.5 304.0
Depreciation and Amortisation have been presented as follows in the
income statement:
Cost of services -22.7 -17.0 -44.6 -33.1 -70.0
Administrative costs -53.7 -68.2 -108.0 -131.1 -252.7
Depreciation and amortisation -76.3 -85.2 -152.6 -164.2 -322.7
NOTE9
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
34
38
As a part of the contract commitments with
customers, the Group has through its banks
provided performance guarantees of DKK
540.6m (DKK 567.8m).
In Q2 2024, Netcompany recognised
revenue from Smarter Airports A/S of DKK
11.8m (DKK 9.1m), and revenue from Festina
Finance A/S of DKK 2.7m (DKK 0).
There are no collaterals provided for
the Group’s bank loan.
The Group is in 2024 as well as in 2023 part
of some legal claims. The outcome of these
disputes is not considered likely to impact
the Group’s financial position significantly,
besides what is already recognised in the
balance sheet.
Related party transactions
Collateral provided and contingent liabilities
NOTE10
NOTE11
The annual consolidated financial state-
ments of the Group are prepared in
accordance with IFRS as adopted by the
European Union. The interim consolidated
financial statements included in this Q2
2024 financial report have been prepared in
accordance with IAS 34 “Interim Financial
Reporting” as adopted by the European
Union. The accounting policies applied are
consistent with those applied in the consol-
Accounting policies
NOTE12
idated Annual Report for the year ended
31 December 2023 for Netcompany Group
A/S.
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
35
38
Financial figures and highlights
NOTE 13
% change % change
DKK million
Q2 2024 Q2 2023 Q2 YTD 2024 YTD 2023 YTD
Income statement
Public revenue 1,128.2 1,009.1 11.8% 2,216.9 2,033.6 9.0%
Private revenue 522.1 484.8 7.7 % 1,031.5 1,000.4 3.1%
Development revenue 482.9 521.2 -7.4% 975.5 1,145.5 -14.8%
Maintenance revenue 1,147.9 938.2 22.3% 2,250.9 1,850.9 21.6%
License revenue 19.4 34.4 -43.5% 22.0 37.6 -41.5%
Organic revenue 1,650.2 1,493.9 10.5% 3,248.4 3,034.1 7.1 %
Non-organic revenue 0.0 0.0 N /A 0.0 0.0 N/A
Revenue by growth, total 1,650.2 1,493.9
10.5%
3,248.4 3,034.1
7. 1 %
Special items 0.0 0.0 N/A -0.7 0.0 N/A
Adjusted EBITDA 269.1 195.1 38.0% 516.2 437.2 18.1%
EBITDA 269.1 195.5 37.7 % 515.6 437.8 17.8%
Adjusted EBITA 221.9 144.8 53.3% 421.3 341.6 23.3%
EBITA 221.9 145.2 52.8% 420.7 342.2 22.9%
Operating profit (EBIT) 192.8 110.3 74.8% 363.1 273.6 32.7%
Net financials -34.3 -34.7 -1.1% -68.3 -64.3 6.3%
Net profit / loss 118.8 55.2 115.3% 211.3 158.5 33.3%
Financial position
Capex -29.0 -72.9 -60.2% -62.8 -121.5 -48.3%
Total assets 8,221.2 7,600.0 8.2% 8,221.2 7,600.0 8.2%
Equity 3,784.2 3,693.6 2.5% 3,784.2 3,693.6 2.5%
Net increase in cash and cash equivalents -66.0 -206.4 -68.0% -212.6 -298.3 -28.7%
Free cash flow 148.2 -72.5 -304.6% 143.3 6 9.1 107.4%
Free cash flow (tax normalised) 111.4 -93.0 -219.8% 188.5 73.6 156.3%
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
36
38
Earnings per share
Earnings per share (DKK) 2.46 1.11 122.2% 4.34 3.20 35.5%
Diluted earnings per share (DKK) 2.43 1.10 121.2% 4.30 3.18 35.0%
Employees
Average number of full-time employees 7,884 7,699 2.4% 7,846 7,606 3.2%
FINANCIALFIGURESANDHIGHLIGHTS
CONTINUED
Financial ratios
Revenue growth 10.5% 14.4% -3.9pp 7.1% 13.3% -6.3pp
Gross profit margin 29.1% 27.0% 2.1pp 28.3% 27.8% 0.5pp
Adjusted EBITDA margin 16.3% 13.1% 3.3pp 15.9% 14.4% 1.5pp
EBITDA margin 16.3% 13.1% 3.2pp 15.9% 14.4% 1.4pp
Adjusted EBITA margin 13.4% 9.7% 3.8pp 13.0% 11.3% 1.7pp
EBITA margin 13.4% 9.7% 3.7pp 13.0% 11.3% 1.7pp
Operating profit margin 11.7% 7.4% 4.3pp 11.2% 9.0% 2.2pp
Effective tax rate 22.9% 25.2% -2.3pp 26.0% 22.6% 3.4pp
Return on equity 3.2% 1.6% 1.6pp 5.7% 4.6% 1.0pp
Solvency ratio 46.0% 48.6% -2.6pp 46.0% 48.6% -2.6pp
ROIC 2.3% 1.1% 1.2pp 4.0% 3.0% 1.0pp
ROIC (Adjusted for Goodwill) 5.9% 2.9% 3.0pp 10.5% 8.4% 2.1pp
Cash conversion ratio 104.7% -87.9% 192.7pp 55.9% 32.6% 23.3pp
Cash conversion ratio (tax normalised) 78.7% -112.8% 191.5pp 73.6% 34.7% 38.9pp
% change % change
DKK million
Q2 2024 Q2 2023 Q2 YTD 2024 YTD 2023 YTD
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
37
38
Formulas
Organic
revenue
=
Revenue not classified as
non-organic revenue
Non-organic
revenue
=
Revenue from acquired businesses
the first 12 months after acquisition
Organic
Growth
1
=
Organic revenue current year x 100
Revenue last year
Gross profit
margin
1,2
=
Gross profit x 100
Revenue
EBITA
1,2
= Operating profit + Amortisation
EBITA
margin
1,2
=
EBITA x 100
Revenue
Adjusted
EBITA
=
EBITA + Special items + Other
operating income
Adjusted
EBITA
margin
=
Adjusted EBITA x 100
Revenue
Capex
1,2
=
Capitalised costs and cost spent to buy
intangible and tangible assets,
excluding impact from business
acquisitions.
Cash
conversion
ratio
1,2
=
Free cash flow x 100
Net profit - Amortisation and deferred
tax of amortisation
Days sales
outstanding
1,2
=
Trade receivables x days
Revenue
Return on
equity
2
=
Net profit for the period x 100
Average equity
Return on
invested
capital
(ROIC)
1,2
=
Net profit x 100
Average invested capital
ROIC
(Adjusted for
Goodwill)
1
=
Net profit x 100
Average invested capital
– average Goodwill
Solvency
(equity ratio)
1
=
Equity x 100
Total assets
Operating
profit margin
1
=
Operating profit x 100
Revenue
EBITDA
1,2
= EBIT + Depreciation and amortisation
EBITDA
margin
=
EBITDA x 100
Revenue
Adjusted
EBITDA
=
EBITDA + Special items + Other
operating income
Adjusted
EBTIDA
margin
=
Adjusted EBITDA x 100
Revenue
EPS
1
=
Net profit - Non-controlling interest
Average outstanding shares
EPS diluted
1
=
Net profit - Non-controlling interest
Average outstanding shares
+ Diluted shares
Free cash
flow
1,2
=
Cash flow from operating activities
- Capex
1
Key figures defined according to IFRS.
2
Key figures defined according to “Recommendations &
Financial Ratios” issued by the Danish Finance Society.
Key figures and financial ratios have been compiled in accordance with the following calculation formulas.
Continued growth and improved margin
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 35/2024
14 August 2024
38
38
This report contains forward-looking state-
ments including, but not limited to, the
statements and expectations contained in
the outlook section. Forward-looking state-
ments are statements (other than state-
ments of historical fact) relating to future
events and Netcompany’s anticipated or
planned financial and operational perfor-
mance.
The words ‘may’, ‘will’, ‘will continue’,
‘should’, ‘expect’, ‘foresee’, ‘anticipate’, ‘be-
lieve’, ‘estimate’, ‘plan’, ‘predict’, ‘intend’ or
variations of these words, including nega-
tives thereof, as well as other statements
regarding matters that are not historical
fact or regarding future events or pros-
pects, constitute forward-looking state-
ments.
Netcompany has based these for-
ward-looking statements on its current
views with respect to future events and
financial performance. These views involve
a number of risks and uncertainties, which
could cause actual results to differ materi-
ally from those predicted in the
forward-looking statements and from
the past performance of Netcompany.
Although Netcompany believes that the
estimates and projections reflected in the
forward-looking statements are reasonable,
they may prove materially incorrect, and
actual results may materially differ, e.g. as
the result of risks related to the industry in
general or Netcompany in particular, includ-
ing those described in Netcompany Group
A/S’ Annual Report 2023 and other infor-
mation made available by Netcompany.
Factors that may affect future results in-
clude, but are not limited to, global and
economic conditions, including currency
exchange rate and interest rate fluctua-
tions, delay or failure of projects related to
research and/or development, unexpected
contract breaches or terminations, un-
planned loss of patents, government-man-
dated or market-driven price decreases
for Netcompany’s products, introduction
of competing products, reliance on infor-
mation technology, Netcompany’s ability to
successfully market current and new prod-
ucts, exposure to product liability, litigation
and investigations, regulatory develop-
ments, actual or perceived failure to adhere
to ethical marketing practices, unexpected
growth in costs and expenses, failure to
recruit and retain the right employees, and
failure to maintain a culture of compliance.
As a result, forward-looking statements
should not be relied on as a prediction of
actual results. Netcompany undertakes
no obligation to update or revise any for-
ward-looking statements, whether as a re-
sult of new information, future events
or otherwise, except to the extent required
by law.
The Annual Report 2023 of Netcompany
Group A/S is available at our website
www.netcompany.com
About Netcompany
Netcompany delivers business critical IT
solutions and consultancy that help our
customers to achieve significant business
benefits in a digitised world. Netcompany
also helps our customers to manage and
operate IT solutions both on location and in
the cloud.
Disclaimer