Netcompany – Interim report for the three months ended 31 March 2019

Netcompany - Interim report for the three months ended 31 March 2019

Company announcement
No 13/2019
8 May 2019

Summary
Netcompany realised organic revenue of DKK 597.7m in Q1 2019, corresponding to an organic and reported revenue growth of 15.6%.

Adjusted EBITA grew by 15.2% to DKK 147.2m compared to DKK 127.8m in Q1 2018, corresponding to an adjusted EBITA margin of 24.6%.

The average number of full-time employees grew by 332 from 1,766 during Q1 2018 to 2,098 during Q1 2019.

Free cash flow remained strong and increased by 11.2% from DKK 67.6m in Q1 2018 to DKK 75.2m in Q1 2019. Normalised for on account tax payments, free cash flow increased by 67% to DKK 111.1m, yielding a cash conversion ratio of 92.7%.

Revenue visibility for the year 2019 increased by 13.1% to DKK 1,786.3m compared to DKK 1,579.4m at the beginning of 2019, of which DKK 597.7m reflected realised revenue during Q1 2019.

For 2019, Netcompany maintains its expectations to revenue growth in constant currencies of between 20% - 25% and group adjusted EBITA margin in constant currencies of around 26%.

“We have delivered growth as expected of 15.6% in Q1 2019 against a relative high revenue growth in Q1 2018, supportive of our ambition to grow between 20% and 25% for the full year. Margins and free cash flow was improved compared to Q1 2018 as a result of our continued focus on delivering projects on time, quality and budget to our customers. Our businesses in both Norway and the UK grew by around 30% and margins were improved. In Denmark, we saw growth returning to the private segment based on larger scale projects coming to the market.
During Q1 2019, we deliberately slowed the recruiting pace and yet we have welcomed more than 137 employees since the beginning of the year.
We are off to a good start for the year in line with our expectations.” André Rogaczewski, Netcompany CEO and Co-founder
 

Q1 Performance highlights