1 Interim Report Q2 2024
•
Columbus A/S | CVR no. 13 22 83 45
Interim Report Q2 2024
2 Interim Report Q2 2024
22
August 2024
Highligh
ts
Q
2 2024 highlights
•
Revenue growth of 9% amounting to
DKK 427m. 8% growth adjusted for
acquisitions and currency.
•
EBITDA amounted to DKK 30m
compared to DKK 18m in Q2 2023.
•
EBITDA margin was 7.0% com-
pared to 4.6% in Q2 2023.
•
Efficiency of 63% in Q2 2024 com-
pared to 66% in Q2 2023.
YTD 2024 highlights
• Revenue growth of 12%, amounting
to DKK 871m. 10% growth adjusted
for acquisitions and currency.
• EBITDA amounted to DKK 85m
(DKK 65m adjusted for the M3CS le-
gal case in Q1 2024), compared to
DKK 57m H1 2023.
•
EBITDA margin was 9.8% compared
to 7.3% in H1 2023. Adjusted for the
M3CS case in Q1 2024, EBITDA
margin was 7.5%.
• Efficiency of 63% in H1 2024 com-
pared to 65% in H1 2023.
Outlook 2024 maintained
Based on the development in the first
half of 2024, our strong pipeline and or-
der backlog, we maintain our 2024 ex-
pectations:
• Revenue guidance expected to be in
the range of 8-10% organic growth
•
EBITDA margin expected to be in the
range of 9-10%.
R
evenue growth of 9% in Q2 2024, primarily arising from our key Cloud ERP Business Lines,
Dynamics a
nd M3. EBITDA amounted to DKK 30m, corresponding to an EBITDA margin of 7.0%.
Sustained focus on cost management
led to necessary streamlining of the organization with
special focus on Digital Commerce and Security.
Contents
Highlights
2
Satisfactory result
-
continued
streamlining to
reach EBITDA15 goal
3
Key figures and ratios
5
Key Business Lines
sustaining momentum in
Q2
6
Outlook for 2024
9
Statement by
management
10
Financial statements
11
Webcast
22 August 2024 at
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t and presentation
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“
We delivered a strong revenue growth of 9% in Q2 2024 driven by solid development in our core
ERP business. H
owever, our relentless focus on achieving a 15% EBITDA margin by 2026 led to
necessary streamlining of the organization
during the quarter.”
CEO & President Søren Krogh Knudsen
3 Interim Report Q2 2024
T
he market for IT consulting services is
constantly evolving, and we are adapting
to the demand, which is currently high in
our core area of Cloud ERP as well as in
Data & AI and Customer Experience & En-
gagement (CXE). In other areas we are
experiencing restraint in investments, par-
ticularly in Sweden.
C
loud ERP: A catalyst for revenue
growth
Our core Business Lines, Dynamics and
M3, representing 75% of our operations,
have delivered a robust performance in Q2
2024, which underlines the increased de-
mand for IT services essential for busi-
ness-critical systems.
We have entered into new partnerships
with valued customers such as Schur,
who chose Columbus for comprehensive
support for their Microsoft Dynamics365
Finance and Operations system, and Win-
dowMaster International, who selected
us as their strategic partner for IT moderni-
sation. In addition, we have extended our
30 years partnership with FedEx in a new
agreement for Columbus to undertake a
significant engagement as part of their so-
lution modernization program.
O
ur commitment to deliver innovative solu-
tions was recently acknowledged by Mi-
crosoft at the Danish Partner Award 2024.
Columbus was honored with the “Business
Applications - Enterprise and Corporate”
Award, celebrating our extensive collabo-
ration with Bang & Olufsen utilizing Mi-
crosoft technologies.
O
rganic revenue growth of 8% in Q2
2024
In Q2 2024, revenue grew to DKK 427m, a
growth of 9% compared to Q2 2023. Or-
ganically, revenue grew by 8% adjusted
for acquisitions and currency. H1 2024
revenue was DKK 871m - a growth of
12%, and 10% organically.
Cl
oud ERP contributed significantly with
Dynamics and M3 growing service reve-
nue by 17% and 10%, respectively, in Q2
2024. In addition, our strategic Business
Lines Data & AI and CXE delivered a
strong quarter, growing by 18% and 50%,
respectively. On the contrary, we saw a
weaker development in Digital Commerce
and Security with declines of 10% and
36%, respectively, compared to Q2 2023.
O
ur Danish and UK Market Units contin-
ued the strong development, growing ser-
vice revenues by 28% and 43% in Q2
2024, respectively. Norway delivered a
growth of 6% while Sweden declined by
9% in Q2 2024.
Th
e EBITDA result in Q2 2024 amounted
to DKK 30m, corresponding to an EBITDA
margin of 7%. Compared to Q2 2023 the
increase in EBITDA amounted to 67%. For
H1 2024, EBITDA amounted to DKK 85m
with an EBITDA margin of 10%, or 7.5%
excluding the net gain of DKK 20m from
the legal proceedings against M3CS in Q1
2024.
S
ustained focus on cost management
In our New Heights strategy, we aim to
sustain robust top-line growth, capitalising
our market momentum, while diligently
working towards a 15% EBITDA margin by
2026. One key element of the EBITDA15
program is to improve commercial excel-
lence, thus improving project profitability.
W
e are beginning to see a positive impact
of the commercial initiatives we imple-
mented last year, particularly in key areas
of the business, resulting in improved pro-
ject margins. However, lower-than-ex-
pected efficiency in part of the business is
currently hindering our progress. We have
therefore streamlined the organisation, in-
cluding a reduction of ~60 FTEs with a
special focus on two Business Lines: Digi-
tal Commerce and Security.
D
igital Commerce: We have implemented
a leaner management structure, trans-
forming the organization into a more sales
and customer-centric entity, enhancing
project quality, profitability and efficiency.
Security: After initiating cost and sales
measures in Q1 2024 to boost perfor-
mance, we have recalibrated the manage-
ment team and further optimized the or-
ganisation in Q2 2024. From Q3 2024, the
Satisfactory result - continued streamlining
to reach EBITDA15 goal
The development
in Q2 2024 reflects a strong momentum in the majority of our business with particular strong performance in our largest area,
Cloud ERP
, representing 75% of our operations. Overall, the revenue growth of 9% in Q2 2024 was in line with expectations. The EBITDA
margin for the quarter was 7%
. Our unconditional focus on EBITDA15 led to a streamlining and performance exercise in Q2 2024 with full effect
in Q4
2024. We maintain our 2024 full-year financial expectations.
4 Interim Report Q2 2024
Security Business Line will be integrated
into the Dynamics Business Line in order
to enhance our reach to existing custom-
ers by being an integral part of a larger or-
ganisation with a strong customer portfo-
lio. While our existing Security Business
Line specialized in Identity and Access
Management, we will now broaden the fo-
cus on Governance, Risk & Compliance,
as well as Cloud Security. This broader
scope will enable us to address a wider
range of security challenges that many
companies face today, particularly those
related to the shared responsibility model
in the cloud, that often leaves gaps on
data management and access manage-
ment.
With the optimised setup, our go-to-market
strategy now places greater emphasis on
cloud security and is more tightly inte-
grated with our global services operation.
Maintaining our 2024 expectations
Based on our pipeline and completed cost
adjustments, we maintain our financial ex-
pectations for 2024.
We are vigilant of the geopolitical land-
scape and its potential impact on invest-
ment trends and ongoing projects. Never-
theless, we are optimistic about our strong
market position in the current business en-
vironment.
Once again, I want to thank our employ-
ees for their continuous commitment and
contribution to the results and our custom-
ers for trusting and supporting Columbus.
Søren Krogh Knudsen
CEO & President
5 Interim Report Q2 2024
DKK ´000
Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023
Income related
figures
Sale of services
410,361 370,492 839,201 747,370 1,475,056
Sale of products
16,538 19,980 31,937 33,602 64,899
Net revenue
426,899 390,472 871,138 780,972 1,539,955
Recurring revenue % of
total revenue
14.0% 13.5% 13.5% 13.0% 13.3%
EBITDA
30,012 17,970 85,235 57,136 117,534
EBIT
-4,470 3,589 35,315 28,571 60,088
Net financial items
-3,462 -5,791 -5,881 -13,737 -20,750
Profit before tax
-7,932 -2,202 29,434 14,834 39,338
Profit after tax, continuing
operations
-13,396 -4,106 22,380 11,153 23,762
Profit after tax, discontinued
operations
-1,367 -386 -2,078 3,076 3,127
Profit after tax
-14,763 -4,492 20,302 14,229 26,889
DKK ´000
30 Jun 2024 30 Jun 2023 31 Dec 2023
Balance sheet
Non
-current assets 844,044 874,541 852,442
Current assets
504,242 427,735 445,409
Total assets
1,348,286 1,302,276 1,297,851
Group shareholder equity
716,208 685,416 716,829
Total liabilities
632,078 616,860 581,022
Total equity and liabilities
1,348,286 1,302,276 1,297,851
Key figures and ratios
DKK ´000
Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023
Investments in tangible assets
1,896 2,349 3,365 2,824 7,888
Cash flow
Cash flow
from operating activities 15,656 12,055 39,151 47,775 76,954
Cash flow from investing activities
-2,864 -41,794 -16,948 -40,007 -47,080
Cash flow from financing activities
-5,727 44,350 -12,737 16,937 -15,894
Total net change in cash and cash
equivalents
7,065 14,611 9,466 24,705 13,980
Key ratios
EBITDA
-margin 7.0% 4.6% 9.8% 7.3% 7.6%
EBIT
-margin -1.0% 0.9% 4.1% 3.7% 3.9%
Equity ratio
53.1% 52.6% 53.1% 52.6% 55.2%
Return on equity
-2.1% -0.6% 2.9% 2.0% 3.8%
Return on invested capital (ROIC)
2.2% 1.1% 7.3% 4.7% 9.6%
Number of shares
129,276 129,276 129,276 129,276 129,276
Average number of shares
129,276
129,276
129,276
129,276
129,276
Book value of equity per share
(BVPS) (DKK)
5.54 5.30 5.54 5.30 5.54
Earnings per share (EPS) from
continuing operations (DKK)
-0.10 -0.03 0.17 0.09 0.18
Cash flow per share (DKK)
0.12 0.09 0.30 0.37 0.60
Share price, end of period (DKK)
9.64 6.58 9.64 6.58 7.10
Average full
-time employee for the
period
1,590 1,554 1,612 1,562 1,568
The key figures and financial ratios above have been calculated in accordance with Danish Finance
Society's "Recommendation & Financial Ratios”
6 Interim Report Q2 2024
Revenue development
In Q2 2024, Columbus realized a revenue
of DKK 427m, corresponding to an in-
crease of 9% compared to Q2 2023. The
increase is mainly driven by sale of ser-
vices, which increased by 11% compared
to the same period last year and counts for
96% of total revenue in Q2 2024. Product
sales decreased by 17%, which is in line
with expectations.
We continue to see strong growth in ser-
vice revenue in the major Business Lines
Dynamics and M3 while our strategic Busi-
ness Lines delivered a more mixed perfor-
mance. Dynamics and M3 compose 75%
of the group’s service revenue. Data & AI
and Customer Experience & Engagement
both delivered solid growth in Q2 2024.
Digital Commerce and Security are facing
more challenging market conditions in cer-
tain markets, resulting in less than satis-
factory performance in Q2 2024. Our stra-
tegic Business Lines are key components
in extending our capabilities within digital
advisory.
Our largest Business Line, Dynamics, de-
livered a strong Q2 with growth of 17% in
service revenue, and we continue to see a
strong win rate and request for our ser-
vices.
We continue to see high efficiency across
all markets in Dynamics and customer pro-
jects progressing well. The Business Line
is continuously performing well in Denmark
and the UK, whereas the Swedish and
Norwegian markets see a modest devel-
opment in Q2 2024. Dynamics is expected
to continue the growth journey during
2024.
In Q1 2024, we started to focus on the Life
Science vertical, and our efforts to grow
this segment continued through the sec-
ond quarter of 2024.
Key Business Lines sustaining
momentum in Q2
Service revenue split on Business Lines
DKK ´000
Q2 2024 Q2 2023 ∆% YTD 2024 YTD 2023 ∆%
Dynamics
224,026 191,261 17% 454,062 387,640 17%
M3
81,935 74,717 10% 175,010 155,313 13%
Digital
Commerce 45,108 50,203 -10% 98,487 108,883 -10%
Data & AI
22,105 18,719 18% 40,812 38,085 7%
CXE
23,775 15,853 50% 43,202 31,455 37%
Security
7,926 12,301 -36% 15,893 12,301 29%
Other Local Business
5,486 7,438 -26% 11,735 13,693 -14%
Total sale of
services 410,361 370,492 11% 839,201 747,370 12%
Total sale of products
16,538 19,980 -17% 31,937 33,602 -5%
Total net revenue
426,899 390,472 9% 871,138 780,972 12%
Service revenue split on
Market Units
DKK ´000
Q2 2024 Q2 2023 ∆% YTD 2024 YTD 2023 ∆%
Sweden
133,849 147,730 -9% 281,795 293,594 -4%
Denmark
106,917 83,636 28% 215,234 164,086 31%
Norway
60,613 57,338 6% 126,728 129,146 -2%
UK
77,461 54,037 43% 152,994 99,743 53%
US
20,242
19,339
5%
39,797
41,359
-4%
Other
10,144 7,438 36% 20,248 17,497 16%
GDC
1,135 974 17% 2,405 1,945 24%
Total sale of services
410,361 370,492 11% 839,201 747,370 12%
Total sale of products
16,538 19,980 -17% 31,937 33,602 -5%
Total net revenue
426,899 390,472 9% 871,138 780,972 12%
7 Interim Report Q2 2024
M3, our second largest Cloud ERP Busi-
ness Line, saw an increase in service rev-
enue of 10%. The revenue growth is fuel-
ling an enhanced utilisation of resources
across geographies. This development is
a positive testament to our global operat-
ing model. M3 is continuously gaining mo-
mentum and growing in Sweden, which
counts for 57% of the revenue in Q2.
Digital Commerce revenue decreased by
10% in Q2 2024 compared to Q2 2023.
Adjusted for the acquistion of Endless
Gain on 1 January 2024, the revenue de-
clined by 18%. The lower-than-usual
growth in the Business Line is primarily
due to the uncertainty in the Swedish and
Norwegian markets, mainly within the retail
segment.
Market uncertainty is affecting the pace at
which new projects are signed and initi-
ated. The acquisition of Endless Gain con-
tinues to perform well, adding new and ad-
ditional business globally.
Data & AI. In Q2 2024, we announced
Claes Kongsdam as the new Business
Line Executive. Claes has previously fo-
cused on the Danish Market Unit, which
has experienced strong growth in recent
years.
In addition to maintaining our focus on de-
livering value to our customers in the AI
space, attention to profitable growth re-
mains a key priority for H2 2024.
In Customer Experience & Engagement
(CXE) a continued focus on expanding the
customer portfolio is a high priority. The
growth is driven globally with a specific fo-
cus on Denmark.
The ambition for the Business Line is to in-
crease deal sizes with existing customers
and leverage cross-sales to customers
from other Business Lines.
Security has delivered another unsatisfac-
tory quarter with a negative growth of 36%
in service revenue. Rapid technological
changes and reluctance to invest in the
IAM (Identity and Access Management)
security area have resulted in customer
losses and declining sales. Additionally,
the anticipated cross-sales effect has not
materialized as expected. We have initi-
ated further restructuring and cost-saving
initiatives to align the organization with
current activity levels, and from Q3 2024,
the Security Business Line will be inte-
grated in the Dynamics Business Line in
order to enhance our reach to existing
customers.
Development in Market Units
In Q2 2024, we continued to see a mixed
picture with both strong growth markets
and slightly negative growth markets. This
is partly due to macroeconomic develop-
ments. Currencies have stabilized com-
pared to Q2 2023 with negligible impact at
group level.
The Swedish Market Unit, which is our
largest market, ended Q2 2024 with a ser-
vice revenue decrease of 9%. The
decrease is mainly related to Digital Com-
merce and Dynamics. The Swedish Mar-
ket Unit is experiencing some reluctance
from customers to commit to and start new
engagements due to macroeconomic fac-
tors.
The Danish Market Unit maintained the
strong growth journey with a growth of
28% in service revenue in Q2 2024. The
growth was primarily driven by Dynamics.
Security, which is mainly operating in Den-
mark, was the only Business Line showing
negative growth.
The Norwegian Market Unit is still im-
pacted by challenging market conditions,
although delivering an increase of 6% in
service revenue compared to Q2 2023.
The increase is driven by most Business
Lines, except Digital Commerce which de-
creased slightly.
The UK Market Unit continued to deliver a
strong growth of 43% in service revenue in
Q2 2024, including the newly acquired
company Endless Gain and a slightly posi-
tive currency impact. Organically, the UK
Market Unit delivered a significant growth
of 31%. All Business Lines contributed to
the positive progress. Especially Dynamics
and Digital Commerce demonstrated
strong growth in Q2 2024.
The US Market Unit ended Q2 2024 with
a 5% increase in service revenue. The US
is primarily represented by the M3 and Dy-
namics Business Lines. The M3
Business Line delivered growth, while the
Dynamics Business Line decreased
slightly.
End-to-end customer engagements
drive value
In Q2 2024, the growth was primarily
driven by our Cloud ERP Business Lines,
welcoming new customers or expanding
the engagements with existing customers.
WindowMaster International A/S has
chosen Columbus as their trusted advisor
and strategic partner for their journey to
modernize their IT infrastructure, focusing
on Data & AI, Power Platform, Customer
Experience (CXE) and Microsoft Dynamics
365 Business Central. This collaboration
has streamlined their business processes,
enabling them to reduce energy consump-
tion and enhance indoor air quality with
their innovative ventilation products. The
success of this project is marked by its
agility and cost savings, reflecting Win-
dowMaster’s commitment to sustainability
and innovation. The next step is to expand
these solutions globally, replicating this
success and supporting WindowMaster’s
growth and impact on the environment.
We have signed a new Operational Evolve
Agreement with Schur International
Holding A/S, who has chosen us to pro-
vide comprehensive support services for
their Microsoft Dynamics 365 Finance and
Operations system. This collaboration en-
compasses almost all our Columbus
Evolve offerings, including Solution Sup-
port, Release Management, Access Man-
agement. As a partner, we are dedicated
8 Interim Report Q2 2024
to helping Schur maximize the value of
their IT investment and landscape.
We have extended our long-time strategic
partnership with FedEx. This extension
marks the agreement for Columbus and
FedEx to undertake a significant engage-
ment as part of their solution modernisa-
tion program.
Recurring revenue
In Q2 2024, recurring revenue amounted
to DKK 60m, corresponding to a growth of
13% compared to Q2 2023. Recurring rev-
enue constitutes a stable part of 14% of
total revenue .
Over the past few years, it has been the
expectation that on-premises services
would decline, which has been the case.
Subscriptions now constitute a negligible
part of our revenue stream. Consequently,
we have combined revenue from subscrip-
tions and Cloud into Recurring Licenses.
Efficiency
The efficiency in Q2 2024 reached 63%,
compared to 66% in Q2 2023. The de-
crease is mainly due to the negative reve-
nue development in our Security and Digi-
tal Commerce Business Lines. As effi-
ciency is a key KPI in relation to our profit-
ability and EBITDA15 ambition, we initi-
ated a streamlining of our resources at the
end of Q2. This initiative will enhance
overall efficiency during H2 2024.
EBITDA development
In Q2 2024, reported EBITDA amounted to
DKK 30m, which is an increase of DKK
12m compared to Q2 2023. The EBITDA
margin was 7.0%. positively impacted by
the net gain of DKK 7.7m from other oper-
ating income.
The disappointing result from Security
continued in Q2 2024 and impacted the
group’s EBITDA negatively by more than
1%. As previously mentioned, additional
measures have been initiated during Q2
2024.
Other external costs decreased slightly,
primarily due to minor changes in the tim-
ing of
cost. Net other operating income
amounted to DKK 7.7m, which includes
the reversal of an unachieved earn-out of
DKK 16.8m related to the ICY Security ac-
quisition, as well as redundancy costs of
DKK 9.1m associated with the perfor-
mance exercise conducted in Q2 2024.
The reversal of the unachieved earn-out is
based on the assumption that the inade-
quate performance of the Security Busi-
ness Line makes it highly unlikely that the
earn-out will be achieved. Based on this
assumption, the remaining contingent con-
sideration on the balance sheet has been
recognized under other operating income.
The expensed redundancy costs consist of
employee termination costs primarily from
the Business Lines Digital Commerce and
Security.
Profit before tax
Compared to Q2 2023, profit before tax
decreased by DKK 5.7m to DKK -7.9m.
The decrease arises from the extraordi-
nary impairment of goodwill amounting to
DKK 18.8m, related to our Security Busi-
ness Line. The reduction in financial ex-
penses is due to currency stabilization and
reduced net debt.
Discontinued operations
In Q2 2024 no new events related to dis-
continued operations occurred. The loss of
DKK 1.4m is related to expenses associ-
ated with previous divestments.
Cash
Cash flow from operating activities in Q2
2024 was positive with DKK 15.7m. The
cash flow has increased slightly by DKK
3.6m compared to Q2 2023, primarily due
to the timing of payments from customers
and vendors.
Equity
Columbus’ equity decreased by net DKK
0.6m since 31 December 2023, primarily
due to the retained earnings, negative cur-
rency effects and payment of dividend.
Employee development
The company employed an average of
1,590 FTEs in Q2 2024, an increase of 36
FTEs compared to Q2 2023 (1,554 FTEs).
This workforce growth is primarily at-
tributed to the strategic acquisition of End-
less Gain, which added +25 FTEs as of 1
January 2024.
Recurring revenue
Efficiency
48
41
95
81
12
12
22
20
60
53
117
101
Q2 2024 Q2 2023 2024 YTD 2023 YTD
Recurring Licenses
Operational Service Agreements
62%
63%
64%
66%
60%
62%
Q1 Q2 Q3 Q4
2024 2023
9 Interim Report Q2 2024
In 2024 we expect organic growth of 8-
10% and earnings improvements through
enhanced efficiency and focus on contract
profitability.
As part of the new strategy, we estab-
lished a dedicated program named
EBITDA15, where increased focus on be-
low listed areas will support our mid-term
aim to reach an EBITDA margin of 15%:
• Continuous focus on efficiency
• Increasing use of Columbus’ service
centers
• Commercial excellence
• Leveraging of Columbus’ strong busi-
ness model
The outlook is subject to the general un-
certainties in our markets, such as the cur-
rent macro-economic conditions, higher
than normal exchange rate volatility and a
continuous geopolitical situation that may
impact the general business environment.
Although we continue to see a strong de-
mand for our digital advisory and services,
we do anticipate that some reluctance in
IT investments and the need to divide pro-
jects up into “smaller bites” will continue
throughout 2024. If the general uncertain-
ties worsen during 2024, it may impact the
Group’s growth and margin negatively.
Based on the financial performance in H1
2024 and the current order book and pipe-
line forecast, our full year guidance for
2024 is maintained as follows:
Outlook for 2024
The financial guidance is maintained
.
Outlook 2024
Realized 2023
Organic revenue growth
8-10%
14.8%
EBITDA margin
9-10%
7.6%
10 Interim Report Q2 2024
We have today considered and approved
the interim financial report for the period 1
January 2024 – 30 June 2024 for
Columbus A/S.
The interim financial report has been pre-
pared in accordance with IAS 34 and addi-
tional Danish interim reporting require-
ments for listed companies. The interim fi-
nancial report is unaudited and has not
been reviewed by the Company’s auditor.
We consider the accounting policies ap-
plied to be appropriate to the effect that
the interim financial report gives a true and
fair view of the Group’s assets, liabilities
and financial position at 30 June 2024,
and of the results of the Group’s opera-
tions and cash flows during the first six
months of 2024.
We consider the management report to
give a true and fair view of the develop-
ment in the Group’s business activities
and financial situation, the financial result
for the period and the Group’s financial po-
sition as a whole together with a true and
fair description of the significant risks and
uncertainty factors which the Group faces.
Executive Board
Board of
Directors
11 Interim Report Q2 2024
11 Interim Report Q2 2024
Financial
statements
12 Interim Report Q2 2024
DKK ´000
Note Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023
Net revenue
3 426,899 390,472 871,138 780,972 1,539,955
External project costs
-52,256 -40,302 -103,549 -78,619 -168,716
Gross profit
Staff expenses and
remuneration
4 -316,005 -292,678 -634,694 -570,780 -1,102,820
Other external costs
-36,320 -39,531 -75,480 -74,796 -154,359
Other operating income
/expenses
5 7,694 9 27,820 359 3,474
EBITDA
Depreciation, amortization
and impairment
6 -34,482 -14,381 -49,920 -28,565 -57,446
Operating profit (EBIT)
-4,470 3,589 35,315 28,571 60,088
Financial income
Financial expenses
-5,112 -6,514 -9,239 -14,782 -23,568
Profit before tax from
continuing operations
-7,932 -2,202 29,434 14,834 39,338
Corporate tax
-5,464 -1,904 -7,054 -3,681 -15,576
Profit after tax from
continuing operations
-13,396 -4,106 22,380 11,153 23,762
Profit (loss) after tax from
discontinued operations
14
-1,367 -386 -2,078 3,076 3,127
Profit (loss) after tax for the period
-14,763 -4,492 20,302 14,229 26,889
DKK ´000
Note Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023
Items that may be reclassified
subsequently to profit and loss:
Foreign exchange adjustments of
subsidiaries
-3,582 -4,396 -5,433 -19,300 -910
Other comprehensive
income
-3,582 -4,396 -5,433 -19,300 -910
Total comprehensive
income for the period
-18,345 -8,888 14,869 -5,071 25,979
Profit (loss) after tax allocated to:
Shareholders in Columbus A/S
-14,763 -4,492 20,302 14,229 26,889
-14,763 -4,492 20,302 14,229 26,889
Total comprehensive income
allocated to:
Shareholders in
Columbus A/S
-18,345 -8,888 14,869 -5,071 25,979
-18,345 -8,888 14,869 -5,071 25,979
Earnings per share of DKK 1.25
(EPS)
-0.11 -0.03 0.16 0.11 0.21
Earnings per share of DKK 1.25,
diluted (EPS
-D)
-0.11 -0.03 0.16 0.11 0.21
Statement of comprehensive income
13 Interim Report Q2 2024
DKK ´000
Note 30 Jun 2024 30 Jun 2023 31 Dec 2023
ASSETS
Goodwill
7 638,878 690,545 654,243
Customer base
Internal applications
Development projects
finalized 459 1,124 638
Property, plant and equipment
Right
-of-use assets 8 97,840 59,241 82,328
Deferred tax assets
Other receivables
Total non
-current assets
Trade receivables
9 343,963 273,252 293,906
Contract assets
11 9,943 10,854 9,065
Corporate tax receivables
Other receivables
Receivables from divestment of activities
14 59,214 58,322 57,322
Prepayments
Receivables
Cash
Total current assets
TOTAL ASSETS
DKK ´000
Note 30 Jun 2024 30 Jun 2023 31 Dec 2023
EQUITY AND LIABILITIES
Share capital
Reserves on foreign currency translation
-73,986 -86,943 -68,553
Retained profit
Equity
Deferred tax
Other provisions
Contingent consideration
12, 13 4,694 67,162 16,961
Debt to credit institutions
Lease liability
right-of-use assets 72,989 33,262 60,687
Non
-current liabilities 201,209 220,753 200,248
Debt to credit institutions
Contract liabilities
11 3,434 6,736 8,241
Trade payables
Corporate tax payables
Other payables
Accruals and deferred income
Lease liability right
-of-use assets 28,392 28,383 24,029
Current liabilities
Total liabilities
TOTAL EQUITY AND LIABILITIES
Balance sheet
14 Interim Report Q2 2024
Shareholders in Columbus A/S
DKK ´000
Share
capital
Reserves
on foreign
currency
translation
Retained
profits Equity
YTD 2024
Balance at 1 Jan 2024
Profit after tax
Currency adjustments of investments
in subsidiaries
Total
comprehensive income 0 -5,433 20,302 14,869
Share
-based payment 0 0 670 670
Payment of dividend
0 0 -16,160 -16,160
Balance at 30 Jun 2024
Shareholders in Columbus A/S
DKK
´000
Share
capital
Reserves
on foreign
currency
translation
Retained
profits Equity
YTD 2023
Balance at 1 Jan 2023
Profit after tax
Currency adjustments of
investments in subsidiar-
ies
Total comprehensive income
Share
-based payment 0 0 242 242
Payment of dividend
0 0 -16,160 -16,160
Balance at 30 Jun 2023
Shareholders in Columbus A/S
DKK ´000
Share
capital
Reserves
on foreign
currency
translation
Retained
profits Equity
2023
Balance at 1 Jan 2023
Profit after tax
Currency adjustments of investments
in subsidiaries
Total comprehensive income
Share
-based payment 0 0 605 605
Payment of dividend
Balance at 31 Dec 2023
Statement of changes in equity
15 Interim Report Q2 2024
DKK ´000
Note Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023
Operating profit (EBIT)
-4,470 3,589 35,315 28,571 60,088
Non
-recurring income and
expenses
from acquisitions
-16,777 0 -16,777 0 -3,104
Depreciation, amortization and
impairment
6 34,482 14,381 49,920 28,565 57,446
Cost of incentive scheme
Changes in net working
capital
Cash flow from primary activities
Interest received, etc.
Interest paid, etc.
-5,112 -3,519 -9,130 -4,700 -11,776
Corporate tax paid
-351 -1,462 -2,604 -1,977 -7,703
Cash flow from operating
activities
Acquisition of tangible
assets
-1,896 -2,349 -3,365 -2,824 -7,888
Acquisition of intangible
assets
Disposal of tangible assets
Payments for
financial
assets
Acquisition of activities
-537 -37,138 -13,112 -37,139 -35,895
Disposal of activities
14 -1,367 -386 -2,078 3,076 1,927
Cash flow from investing
activities
-2,864 -41,794 -16,948 -40,007 -47,080
DKK ´000
Note Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023
Proceeds from borrowings
Overdraft facilities
Repayment of lease liabilities
-7,394 -7,490 -14,375 -14,865 -27,201
Dividends paid
-16,160 -16,160 -16,160 -16,160 -16,160
Cash flow from financing
activities
-5,727 44,350 -12,737 16,937 -15,894
Cash flow from continuing
operations
7,065 14,611 9,466 24,705 13,980
Total net change in cash
and cash equivalents
Cash funds at the beginning
of the period
Exchange rate adjustments
Cash funds at the end of
the period
Cash flow
16 Interim Report Q2 2024
Note 1 – Material accounting principles 17
Note 2 – Management judgements and estimates 17
Note 3 – Segment data 18
Note 4 – Staff expenses and remuneration 23
Note 5 – Other operating income/expenses 23
Note 6 – Depreciation, amortization and impairment 24
Note 7 – Goodwill 24
Note 8 – Right of use assets 25
Note 9 – Trade receivables 27
Note 10 – Financial instruments 28
Note 11 – Contract assets and contract liabilities 28
Note 12 – Contingent consideration 29
Note 13 – Business combination 30
Note 14 – Discontinued operations 31
Note 15 – Related parties 32
Note 16 – Events after the balance sheet date 32
Key figures, ratios and Alternative Performance Measures 33
Notes
Note
Page
17 Interim Report Q2 2024
Notes
Note 1 – Material accounting principles
The consolidated interim financial report is prepared in accordance with IAS 34, Presentation of Interim Fi-
nancial Reporting, as approved by the EU, and additional Danish disclosure requirements for interim re-
ports of listed companies. The interim financial report is presented in Danish kroner (DKK), which is the
Parent Company’s functional currency.
The accounting policies applied in the interim financial report are unchanged compared to 2023, except for
any new, amended or revised accounting standards and interpretations endorsed by the EU, effective for
the accounting period beginning on 1 January 2024.
For more information on the accounting policies, we refer to our Annual Report for 2023.
Note 2 – Management judgements and estimates
In preparing the interim financial statements, Management makes various accounting judgements and esti-
mates that affect the reported amounts and disclosures in the financial statements and in the notes to the
statements. These are based on professional experience, historical data and other factors available to Man-
agement.
By nature, a degree of uncertainty is involved when carrying out these judgements and estimates, hence
actual results may deviate from the assessments made at the reporting date. Judgements and estimates
are continuously evaluated, and the effects of any changes are recognised in the relevant period.
Primary financial statement items in which more significant accounting judgements and estimates are ap-
plied are listed in Chapter 1 of the Notes to the 2023 Columbus A/S Annual Report to which is referred.
Contingent consideration
There is a significant estimate related to the earn-out payment relating to the acquisition of ICY Security
ApS. Based on unsatisfactory performance in first half of 2024, it is assessed that the earn-out is highly un-
likely to be achieved. Hence it is assessed most appropriate to reverse the full earn-out amount on DKK
16,8m and recognize it as another operating income.
Goodwill
As a consequence of the unsatisfactory performance in the first half of 2024 in the Security Business Line,
the Goodwill is tested for impairment. The test showed significantly lower future cash flows than the carry-
ing amount of goodwill and consequently a write-down on DKK 18.8m has been recognized as of 30 June
2024.
Estimate of payable tax and utilization of deferred tax assets
Taxable income and payable tax for the year assessed for each of the Groups individual entities. The esti-
mate is based on expected full year performance and taxable income as well as current tax positions.
Deferred tax assets are recognized for all unused tax losses and difference values to the extent it is
deemed likely that within the foreseeable future taxable profits will be realized in which the losses and the
difference values can be utilized. Determining the size of the amount that can be recognized for deferred
tax assets is based on management’s estimate of the likely time and amount of future taxable profits. At 30
June 2024, the carrying value of recognized deferred tax was DKK 15.9m, which is estimated to be realized
in the foreseeable future (5 years or less).
Receivables from divestment of activities
For the receivable from divestments, there is a significant judgement related. Refer to note 14 – Discontin-
ued operations.
18 Interim Report Q2 2024
Notes
In order to support decisions about allocation of resources and assessment of performance of the seg-
ments, the Group’s management reporting to the Executive Board is based on the following grouping of op-
erating segments:
Strategic Business Lines
Market Units
Global Delivery Centers (GDC)
Dynamics
M3
Digital Commerc
e
Data &
AI
Customer Experience & Engagement
(CXE)
Security
Other Local Business
Sweden
Denmark
Norwa
y
UK
U
S
Other
Poland
Czech Republic
India
Management monitors the business, primarily based on the Business Lines and secondarily on the geo-
graphical segments. Information about the Group’s Business Lines is stated below.
The Group has transformed its operations into a global operating model, with the Strategic Business Lines
becoming the primary driver for decision-making. Previously, Columbus used geography to divide each
segment. Markets are now a secondary driver and only used for assessing market strategies and maintain-
ing customer relations.
The Business Lines relate to the type of services and products that are delivered, and comprise of Dynam-
ics, M3, Digital Commerce, Data & AI, Customer Experience & Engagement and Security. The remaining
revenue, which does not fall into any of the above-mentioned Business Lines, is classified as Other Local
Business.
Market Units comprise of significant geographical markets that the Group operates in. Management uses
the Market Units to assess market conditions and performance on revenue only.
The operating segments are measured from revenue to contribution, as this represents the significant part
of the operation of the segments. The balance sheet is measured for legal entities only.
Cost related to functions necessary to support the business is classified as Enabling Functions and com-
prise of all cost not directly related to a specific Business Line, including costs related to facility, marketing,
finance, people, legal and management. Enabling Functions mostly operate as global teams, servicing
across Business Line and geography. Income and costs recognized in the profit and loss, that is not directly
related to a business line is included in Enabling functions, i.e. legal cases and M&A activities.
Reconciliation between EBITDA and Profit before tax is shown in the comprehensive income statement.
Business Lines Revenue Split 2024 YTD
Note
3 – Segment data
54%
20%
11%
5%
5%
2%
2%
Dynamics
M3
Digital Commerce
Data & AI
Customer Experience & Engagement
Security
Other Local Business
19 Interim Report Q2 2024
Notes
DKK ´000
Services Products
Total revenue
Direct costs Contribution CM %
Q2 2024
Dynamics
224,026 11,267
235,293
-170,324
64,969 28%
M3
81,935 809
82,744
-70,969
11,775 14%
Digital Commerce
45,108 418
45,526
-47,411
-1,885 -4%
Data & AI
22,105 166
22,271
-19,250
3,021 14%
CXE
23,775 271
24,046
-20,609
3,437 14%
Security
7,926 355
8,281
-13,931
-5,650 -68%
Other Local Business
5,486 3,252
8,738
-6,478
2,260 26%
Total
410,361 16,538 426,899 -348,972 77,927 18%
Enabling Functions
-47,915
EBITDA
30,012
DKK ´000
Services Products
Total revenue
Direct costs Contribution CM %
Q2 2023
Dynamics
191,261 15,449
206,710
-151,845
54,865 27%
M3
74,717 832
75,549
-67,252
8,297 11%
Digital Commerce
50,203 462
50,665
-42,410
8,255 16%
Data & AI
18,719 196
18,915
-16,719
2,196 12%
CXE
15,853 315
16,168
-13,760
2,408 15%
Security
12,301 253
12,554
-13,540
-986 -8%
Other Local Business
7,438 2,473
9,911
-9,733
178 2%
Total
370,492 19,980 390,472 -315,259 75,213 19%
Enabling Functions
-57,243
EBITDA
17,970
DKK ´000
Services Products Total revenue Direct costs Contribution CM %
YTD 2024
Dynamics
454,062 20,203
474,265
-338,926
135,339 29%
M3
175,010 2,980
177,990
-141,444
36,546 21%
Digital Commerce
98,487 835
99,322
-95,317
4,005 4%
Data & AI
40,812 304
41,116
-37,857
3,259 8%
CXE
43,202 517
43,719
-39,772
3,947 9%
Security
15,893 942
16,835
-27,038
-10,203 -61%
Other Local Business
11,735 6,156
17,891
-11,688
6,203 35%
Total
839,201 31,937 871,138 -692,042 179,096 21%
Enabling Functions
-93,861
EBITDA
85,235
DKK ´000
Services Products Total revenue Direct costs Contribution CM %
YTD 2023
Dynamics
387,640 23,520
411,160
-295,652
115,508 28%
M3
155,313 2,821
158,134
-133,409
24,725 16%
Digital Commerce
108,883 1,237
110,120
-86,352
23,768 22%
Data & AI
38,085 386
38,471
-31,638
6,833 18%
CXE
31,455 453
31,908
-27,431
4,477 14%
Security
12,301 253
12,554
-13,540
-986 -8%
Other Local Business
13,693 4,932
18,625
-18,241
384 2%
Total
747,370 33,602 780,972 -606,263 174,709 22%
Enabling Functions
-117,573
EBITDA
57,136
Note
3 – Segment data (continued)
20 Interim Report Q2 2024
Notes
Note
3 – Segment data (continued)
DKK ´000
Services Products Total revenue Direct costs Contribution
CM %
2023
Dynamics
778,901 44,151
823,052
-598,198
224,854 27%
M3
301,472 6,362
307,834
-247,591
60,243 20%
Digital Commerce
195,418 1,820
197,238
-163,584
33,654 17%
Data & AI
77,233 658
77,891
-64,991
12,900 17%
C
XE 67,248 700
67,948
-59,006
8,942 13%
Security
29,538 1,757
31,295
-36,083
-4,788 -15%
Other Local Business
25,246 9,451
34,697
-33,691
1,006 3%
Total
1,475,056 64,899 1,539,955 -1,203,144 336,811 22%
Enabling Functions
-219,277
EBITDA
117,534
Average FTE
Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023
Business Line
Dynamics
660 624 665 622 639
M3
257 266 258 268 265
Digital Commerce
215 214 222 217 216
Data & AI
91 84 92 82 87
C
XE 82 65 83 67 70
Security
34 47 33 47 36
Other Local
Business 39 44 43 44 29
Business Line average number of FTE
1,378 1,344 1,396 1,347 1,342
Enabling Functions
212 210 216 215 226
Average number of FTE
1,590 1,554 1,612 1,562 1,568
21 Interim Report Q2 2024
Notes
Note
3 – Segment data (continued)
DKK ´000
Sweden Denmark Norway UK US Other GDC Eliminations Total
Q2 2024
Sale of services
133,849 106,917 60,613 77,461 20,242 10,144 1,135 0
410,361
Sale of products
4,894 4,278 2,613 3,098 1,655 0 0 0
16,538
Total revenue from own markets
138,743 111,195 63,226 80,559 21,897 10,144 1,135 0 426,899
Total revenue from group companies
13,629 17,245 5,093 4,561 3,125 1,396 32,229 -77,278
0
Total revenue
152,372 128,440 68,319 85,120 25,022 11,540 33,364 -77,278 426,899
Average number of FTE
423 366 171 209 40 37 344 0 1,590
Q2 2023
Sale of services
147,730 83,636 57,338 54,037 19,339 7,438 974 0
370,492
Sale of products
8,326 4,854 1,865 3,065 1,870 0 0 0
19,980
Total revenue from own markets
156,056 88,490 59,203 57,102 21,209 7,438 974 0 390,472
Total revenue from group companies
8,946 12,347 1,537 2,383 758 1,097 25,182 -52,250
0
Total
revenue 165,002 100,837 60,740 59,485 21,967 8,535 26,156 -52,250 390,472
Average number of FTE
435 352 179 186 44 36 322 0 1,554
22 Interim Report Q2 2024
Notes
Note
3 – Segment data (continued)
DKK ´000
Sweden Denmark Norway UK US Other GDC Eliminations Total
YTD 2024
Sale of services
281,795 215,234 126,728 152,994 39,797 20,248 2,405 0
839,201
Sale of products
10,503 8,589 4,402 5,771 2,672 0 0 0
31,937
Total revenue from own markets
292,298 223,823 131,130 158,765 42,469 20,248 2,405 0 871,138
Total revenue from group companies
29,149 34,500 10,326 9,370 5,698 2,995 64,123 -156,161 0
Total revenue
321,447 258,323 141,456 168,135 48,167 23,243 66,528 -156,161 871,138
Average number of FTE
429 371 175 211 44 36 346 0 1,612
YTD 2023
Sale of services
293,594 164,086 129,146 99,743 41,359 17,497 1,945 0
747,370
Sale of products
14,115 7,891 3,595 5,485 2,516 0 0 0
33,602
Total revenue from own markets
307,709 171,977 132,741 105,228 43,875 17,497 1,945 0 780,972
Total revenue from group companies
25,566 39,282 5,819 6,818 2,728 3,282 52,542 -136,037
0
Total revenue
333,275 211,259 138,560 112,046 46,603 20,779 54,487 -136,037 780,972
Average number of FTE
440 349 181 185 47 36 324 0 1,562
2023
Sale of services
557,072 331,809 234,391 229,317 82,608 35,531 4,328 0
1,475,056
Sale of products
24,212 19,400 6,910 10,071 4,306 0 0 0
64,899
Total revenue from own markets
581,284 351,209 241,301 239,388 86,914 35,531 4,328 0 1,539,955
Total revenue from group companies
45,266 73,665 13,280 12,379 6,157 6,621 108,220 -265,588 0
Total revenue
626,550 424,874 254,581 251,767 93,071 42,152 112,548 -265,588 1,539,955
Average number of FTE
438 346 181 191 47 37 328 0 1,568
23 Interim Report Q2 2024
Notes
Note 4 – Staff expenses and remuneration
DKK ´000
Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023
Staff expenses
Salary and wages
257,681 241,037 522,926 468,475 944,367
Other social security costs
37,821 34,763 74,800 67,732 130,749
Other staff expenses
20,168
16,697
36,298
34,331
27,099
Share
-based payment 335 181 670 242 605
Total staff expenses
316,005 292,678 634,694 570,780 1,102,820
Average number of FTEs
1,590 1,554 1,612 1,562 1,568
Note 5 – Other operating income/expenses
DKK ´000
Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023
Other operating income / (expenses)
Redundancy cost
-9,083 0 -9,083 0 0
Unachieved earn
-out 16,777 0 16,777 0 3,104
Legal cases
0
0
20,126
0
0
Other
0 9 0 359 370
Total Other operating
income/(expenses) 7,694 9 27,820 359 3,474
24 Interim Report Q2 2024
Notes
Note 6 – Depreciation, amortization and impairment
DKK ´000
Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023
Depreciation
9,910 9,005 19,499 17,824 35,324
Amortization
5,795 5,376 11,644 10,741 22,122
Impairment
18,777 0 18,777 0 0
Total depreciation, amortization
and impairment
34,482 14,381 49,920 28,565 57,446
For description of the impairment, please refer to Note 7 – Goodwill.
Note 7 – Goodwill
As of 30 June 2024 there has been a significant change in Goodwill compared to 31.12.2023. Goodwill has
decreased net by DKK 15.4m. the amount arise from the write down of DKK 18.8m in the Business Line
Security and addition of goodwill from the acquisition of Endless Gain Ltd. in UK of DKK 9m. The remaining
DKK 5.6m is related to negative currency adjustments of goodwill recognized in foreign currency.
The write down of DKK 18.8m in Security is derived from the unsatisfactory performance in the Business
Line during the first half of 2024, hence an impairment test has been performed, which resulted in a the
write down to the recoverable amount (present value of expected future cash flows).
25 Interim Report Q2 2024
Notes
DKK
´000
Other
equipment Cars Offices Total
Group YTD 2024
Balance at 1 January 2024
4,159 16,601 173,931 194,691
Foreign currency translation
-58 -211 -782 -1,051
Re
-assessment of existing assets -8 0 7,365 7,357
Additions
825 1,197 25,034 27,056
Disposals
-23
-3,958
-3,539
-7,520
Balance at 31 December 2024
4,895 13,629 202,009 220,533
Depreciation at 1 January 2024
1,627 6,596 104,140 112,363
Foreign currency translation
-23 -62 -270 -355
Depreciation
384 1,705 13,433 15,522
Reversed depreciation on disposals
-23 -2,314 -2,500 -4,837
Depreciation at 31 December 2024
1,965 5,925 114,803 122,693
Carrying amount at 31 December 2024
2,930 7,704 87,206 97,840
Total cash flow for the Group relating to right-of-use-assets is equal to the actual payments on the leases
amounting to DKK 14m.
There has been an increase of 65% in Right-of-use-assets compared to YTD 2023, which mainly relates to
new offices.
DKK ´000
Other
equipment Cars Offices Total
Group YTD 2023
Balance at 1 January
3,336 16,126 153,264 172,726
Foreign currency translation
-185 -513 -3,908 -4,606
Re
-assessment of existing assets -52 9 2,041 1,998
Additions
345 2,868 7,295 10,508
Additions relating to acquisitions
1,403
0
0
1,403
Disposals
-38 -4,012 -12,726 -16,776
Balance at 30 June 2023
4,809 14,478 145,966 165,253
Depreciations at 1 January
1,462 6,414 99,535 107,411
Foreign currency translation
-94 -186 -2,062 -2,342
Depreciation
383 1,890 12,479 14,752
Additions relating to acquisitions
648 0 0 648
Reversed depreciation on disposals
-38 -1,952 -12,467 -14,457
Depreciation at 30 June 2023
2,361 6,166 97,485 106,012
Carrying amount at 30 June 2023
2,448 8,312 48,481 59,241
Total cash flow for the Group relating to right-of-use-assets is equal to the actual payments on the leases
amounting to DKK 15m.
Note
8 – Right of use assets
26 Interim Report Q2 2024
Notes
DKK ´000
Other
equipment Cars Offices Total
Group 2023
Balance at 1 January 2023
3,336 16,125 153,264 172,725
Foreign currency translation
-2 80 -300 -222
Re
-assessment of existing assets 1,159 228 34,307 35,694
Additions
479 5,798 5,768 12,045
Additions relating to acquisitions
0 331 1,663 1,994
Disposals
-813 -5,961 -20,771 -27,545
Balance at 31 December 2023
4,159 16,601 173,931 194,691
Depreciations at 1 January 2023
1,462 6,413 99,534 107,409
Foreign
currency translation -9 -7 -344 -360
Depreciation
768 3,635 24,450 28,853
Reversed depreciation on disposals
-594 -3,445 -19,500 -23,539
Depreciation at 31 December 2023
1,627 6,596 104,140 112,363
Carrying amount at 31 December 2023
2,532 10,005 69,791 82,328
Total cash flow for the Group relating to right-of-use-assets is equal to the actual payments on the leases
amounting to DKK 27m.
27 Interim Report Q2 2024
Notes
DKK ´000
30 Jun 2024 30 Jun 2023 31 Dec 2023
Receivables (gross) at 1 Jan
295,807 261,422 261,422
Change in receivables during the period
49,815 14,235 34,385
Receivables (gross) end of period
345,622 275,657 295,807
Provisions for bad debt at 1 Jan
1,901 6,622 6,622
Change in
provisions for bad debt during the period 1,362 -4,244 -4,767
Loss realized during the period
-1,604 27 46
Provisions for bad debt end of period
1,659 2,405 1,901
Carrying amount end of period
343,963 273,252 293,906
Provisions for bad debt are made based on the lifetime expected credit losses in line with the Group’s ac-
counting policies.
DKK ´000
30 Jun 2024 30 Jun 2023 31 Dec 2023
Age of receivables (gross):
Not due
281,459 230,035 193,805
0
-30 days 34,920 28,527 88,157
30
-60 days 17,800 10,186 8,333
61
-90 days 5,891 3,992 1,068
91
-180 days 4,618 1,825 1,705
181
-270 days 101 571 1,978
270
-360 days 10 404 197
Above 360 days
823 117 564
Total
345,622 275,657 295,807
DKK ´000
30 Jun 2024 30 Jun 2023 31 Dec 2023
Age of impairment:
Not due
27 16 18
0
-30 days
87 143 220
30
-60 days 92 255 125
61
-90 days 110 299 53
91
-180 days 409 600 426
181
-270 days 101 571 298
271
-360 days 10 404 197
Over 360 days
823 117 564
Total
1,659 2,405 1,901
DKK ´000
30 Jun 2024 30 Jun 2023 31 Dec 2023
Provision matrix:
Not due
0.0% 0.0% 0.0%
0
-30 days 0.3% 0.5% 0.3%
30
-60 days 0.5% 2.5% 1.5%
61
-90 days 1.9% 7.5% 5.0%
91
-180 days 8.9% 32.9% 25.0%
181
-270 days 100.0% 100.0% 15.1%
271
-360 days 100.0% 100.0% 100.0%
Over 360 days
100.0% 100.0% 100.0%
Note
9 – Trade receivables
28 Interim Report Q2 2024
Notes
Note 10 – Financial instruments
Overdraft and credit facilities
The carrying amount of overdraft and credit facilities measured at amortized cost is not considered to differ
significantly from the fair value.
Trade receivables, trade payables and other receivables
Receivables and payables pertaining to operating activities with short churn ratios are considered to have a
carrying amount equal to fair value.
Contracts assets and liabilities
Contract assets are recognized at present value, which reflects the current economic value of money and
the risk of future cash flows.
Cash and cash equivalents
The carrying amount of cash and cash equivalents is not considered to differ significantly from the fair
value.
Note 11 – Contract assets and contract liabilities
DKK ´000
30 Jun 2024 30 Jun 2023 31 Dec 2023
Balance at 1 Jan
824 -4,138 -4,138
Changes contract assets during the period
-3,267 15,958 25,631
Changes on account billing and prepayments
during the period
8,952 -7,702 -20,669
Balance at end of period
6,509 4,118 824
Work in progress
36,030
29,624
39,297
On account billing and prepayments
-29,521 -25,506 -38,473
Balance at end of period
6,509 4,118 824
The net value is included in the balance as follows:
Contract assets
9,943 10,854 9,065
Contract
liabilities -3,434 -6,736 -8,241
Balance at end of period
6,509 4,118 824
The Group’s contract assets are subject to significant judgements in relation to the classification of the con-
tract and in terms of how the contract is handled and recognized in the financial statements. When deter-
mining the appropriate recognition of the contract, the Group accounting policies are applied.
29 Interim Report Q2 2024
Notes
Changes in contingent considerations
As part of the opening balance of ICY as of 1 April 2023, the contingent consideration was recognized
based on management's best estimate. Based on unsatisfactory performance in first half of 2024, it is as-
sessed that the earn-out is highly unlikely to be achieved. Hence it is assessed most appropriate to reverse
the full earn-out amount on DKK 16.8m and recognize it as another operating income.
The addition in 2024 relates fully to the earn-out for Endless Gain. The management has assessed that the
provision for the earn-out payment for Endless Gain continues to be based on the best estimate and recog-
nition. The remaining part of the earn-out that is recognized solely represents the provision for Endless
Gain.
Note
12 – Contingent consideration
30 Interim Report Q2 2024
Notes
Note 13 – Business combination
Acquisition of companies in 2024
The Group has per 1 January 2024 acquired Endless Gain Limited. The acquisition was a share purchase.
After recognition of identifiable assets, liabilities and contingent liabilities at fair value, goodwill in relation to
the acquisition was assessed at GBP 1,049k (As of 31 December 2023 DKK 8,996k).
The opening balance presented is a preliminary balance since post-closing work is still ongoing.
Contingent consideration
The contingent consideration is based on a 3-year earn-out period with an increasing potential payout each
year based on specified revenue and Business Line contribution targets for each earn-out period. The mini-
mum payout for the entire contingent consideration is GBP 0, while the maximum is GBP 1,950k (As of 31
December 2023 DKK 16,726k). The earn-out period covers the financial years 2024 - 2026.
The most probable undiscounted contingent consideration for the three-year period is assessed at GBP
658k (As of 31 December 2023 DKK 5,644k). The fair value of the contingent consideration is GBP 507k
(As of 31 December 2023 DKK 4,349k). The estimates are based on a Weighted Average Cost of Capital
(WACC) of 10% as the basis for the calculation.
Opening balance
DKK ´000
Endless Gain Limited Total 2024
Other intangible assets
7,033 7,033
Total non
-current assets 7,033 7,033
Trade receivables
1,866 1,866
Prepayments
103 103
Other receivables
148 148
Cash
3,139 3,139
Total current assets
5,256 5,256
Trade payables
-237 -237
Debt to credit institutions
-123 -123
Corporation tax and deferred tax
-2,262 -2,262
Accruals
-174 -174
Other debt
-989 -989
Total current debt
-3,785 -3,785
Net assets acquired
8,504 8,504
Goodwill
8,996 8,996
Total consideration
17,500 17,500
Net working capital not paid
1,704 1,704
Acquired cash funds
-3,016 -3,016
Contingent consideration
-4,350 -4,350
Cash consideration on acquisition date
11,838 11,838
Name
Primary
activity
Date of control
gained
Acquired
ownership
Acquired
voting
rights
Total consideration
DKK ’000
Endless Gain
Limited
E
-commerce
business
01. January 2024 100% 100% 17,500
Total
17,500
31 Interim Report Q2 2024
Notes
Note 13 – Business combination (continued)
Other information
The fair value of acquired trade receivables is GBP 218k (As of 31 December 2023 DKK 1,866k). No mate-
rial amounts are recognized as provision for loss.
The goodwill is primarily attributable to the specific competences within the advanced analytical and behav-
ioral psychology insights their platform generates in Endless Gain. The goodwill is fully allocated to the
business line Digital Commerce and is not deductible for tax purposes.
All transaction cost is included in the Other external cost in the income statement.
Revenue and profit contribution
Endless Gain Limited were acquired on first of January, hence all revenue and profit contribution will be in-
cluded in the financial year 2024.
Note 14 – Discontinued operations
DKK ´000
Q2 2024 Q2 2023 YTD 2024 YTD 2023 2023
Gain (loss) on disposal of subsidiaries
0 0 0 0 3,050
Recirculation of historical currency
adjustments
0 0 0 0 1,200
Transaction costs related to disposal
-1,367 -386 -2,078 3,076 -1,123
Total gain (loss) on divestment of
discontinued operations
-1,367 -386 -2,078 3,076 3,127
Discontinued operations in 2024
There have not been any discontinued operations in 2024. The transaction costs are related to previous
disposals.
Receivables from divestments of activities
On 1st November 2021, our SMB business in our US entity was sold as part of the Focus23 strategy. The
business activity is consequently classified as discontinued operations in 2021. The transaction was settled
partly in cash at the transaction date (USD 8m), and partly as deferred consideration which was due in Q2
2022 (USD 8.5m) corresponding to DKK 59.214k. The buyer has still not paid the outstanding amount since
they have asserted claims related to the acquired activity. In 2024 the requirement were specified. We con-
tinue to consider our chances of recovering our receivable as good. It remains our assessment that we will
receive the full amount. The lawsuit, based on previous legal discussions, will proceed in 2025.
The requirement is not specified or documented further, why a legal collecting process has been initiated to
collect our receivable.
32 Interim Report Q2 2024
Notes
Note 15 – Related parties
Related parties with significant influence
ATEA (Lautrupvang 6, 2750 Ballerup)
Consolidated Holdings A/S has significant influence in ATEA, and certain dual roles in the
management are filled by the same persons in ATEA and the Columbus Group. Transactions
with the company are made on an arm's length basis.
X-Yachts A/S (Fjordagervej 21, 6100 Haderslev)
Consolidated Holdings A/S has a significant influence in X-Yachts A/S and certain roles in the
management are filled by the same persons in X-Yachts and Columbus Group. Transactions
with X-Yachts A/S were made on arm’s length.
Group
DKK ´000
Q2 2024 Q2 2023
Net sales
Atea
1,739 2,581
X
-Yachts A/S 174 806
Total
1,913 3,387
Net purchase
Atea
-4,776 -5,991
Total
-4,776 -5,991
Note 16 – Events after the balance sheet date
To this date, no events have occurred after the balance sheet date, which would influence the
evaluation of this report.
33 Interim Report Q2 2024
Notes
Key figures and ratios
Earnings per share (EPS) and diluted earnings per share (EPS-D) are calculated in accordance with
IAS 33.
Other ratios are calculated in accordance with the Danish Finance Society “Recommendations & Financial
Ratios”. The financial ratios stated are calculated as follows:
EBITDA
-margin
Earnings before interest, tax, depreciations and
amortizations (EBITDA)
Net revenue
Operating margin
Operating profit (EBIT)
Net revenue
Return o
n equity
Profit after tax and excl. minority interests
Average equity excl. minority interests
Return on invested capital (ROIC)
EBITA
Average invested capital including goodwill
Equity ratio
Equity excl. minority interests
Total equity and liabilities
Earnings per share (EPS)
Profit after tax and excl. minority interests
x f
Average number of shares
Book value per share (BVPS)
Equity excl. minority interests end of year x 100
x f
Number of shares end of year
Cash
flow per share Cash flow from operations
x f
Average number of diluted shares
Adjustment factor (f)
Theoretical rate
Listed price of stock the day before the subscription
and/or stock right cease
Re
curring Revenue % of total revenue
Recurring revenue
Net revenue
Alternative Performance Measures
Organic Growth and Revenue
Organic Growth and Revenue represents the business excluding the impact of acquisitions, divestments
and changes in currency.
The purpose of defining Organic Growth is to show a “like-for-like” comparison with the previous year.
Constant currency growth
Growth is measured in constant currency by converting actual figures in local currency to DKK with the his-
torical exchange rate for the given currency. When measuring for a period, the average historical exchange
rate is used. Growth is measured based on the actual historical figure compared to the calculated constant
currency figure.
Recurring Revenue
Recurring Revenue includes Columbus Software maintenance, Columbus Cloud revenue, 3rd party mainte-
nance revenue, 3rd party cloud revenue, Columbus Care agreements.
Recurring revenue does not necessarily mean a binding contractual agreement. However recurring revenue
is defined as revenue with a high degree of certainty for renewal >95%.
The purpose of defining Recurring Revenue is to express a level of predictability in the revenue. The higher
degree of Recurring Revenue in pct. of total revenue – the more predictable is the Columbus revenue going
forward.
Efficiency
Efficiency is calculated as all invoiced customer hours divided by available customer hours. Available cus-
tomer hours are calculated as normal work schedule hours for all productive employees, less hours for holi-
day and parental leave.
Key figures, ratios and Alternative Performance Measures
34 Interim Report Q2 2024
Notes
For more information about Columbus visit www.columbusglobal.com