Netcompany
Q1 2024
Company Announcement
Three months ended 31 March 2024
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
2
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Summary
Revenue increased by 3.8% (constant 3.6%)
DKK 1,598.1m
Q1 24
DKK 1,540.2m
Q1 23
Conference call details
In connection with the publication of the results for Q1 2024, Netcompany will host a confer-
ence call on 3 May at 11.00 CEST.
The conference call can be followed live via
https://netcompany-as.eventcdn.net/events/interim-report-for-the-first-3-months-of-2024
For further dial-in details please visit the company’s website; www.netcompany.com
DKK 247.1m
DKK 242.1m
Q1 24
15.7%
Q1 23
15.5%
Adj. EBITDA increased by 2.1% (constant 3.4%)
Adj. EBITDA margin decreased by 0.3pp (constant unchanged)
DKK -4.9m
Q1 24
DKK 141.6m
Q1 23
Q1 24
128.5%
Q1 23
67.2%
7,808 FTEs
Q1 24
7,513 FTEs
Q1 23
Average employees increased by 295 FTEs
Q1 24
1.6x
Q1 23
1.6x
Debt leverage was unchanged
Cash conversion ratio (tax normalised) was 67.2%
Free cash flow decreased by 103.5%
Q1 24
Q1 23
3
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
“We grew revenue by 3.6% and realised an EBITDA margin of 15.7% – both against a strong comparable and despite being
negatively impacted by fewer working days in the quarter.
In Denmark, we saw margin improving by more than 2 percentage points, while the gradual improvement in the private
segment continued and strengthened. Further, the international part of the Group continued to develop satisfactorily with
a strong performance in Netcompany-Intrasoft and in the Netherlands. Further, we won a significant contract in the UK.
FTEs grew by 295 employees driven by the international part of the Group, and at the end of the quarter the Group em-
ployed more than 7,800 talented people.
Our performance in Q1, combined with our continued momentum in the building of pipeline across our different platforms
and products makes us confident that we will deliver on our full year financial targets for 2024 and beyond. Based on our
outlook for the rest of the year, we are initiating a share buyback programme of DKK 250 million, which will be executed
before we report Q2 results in August 2024.”
André Rogaczewski
NETCOMPANYCEOANDCOFOUNDER
4
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Performance overview Q1
Q1 2024 Q1 2024 % change % change
DKK million
(reported) (constant)* Q1 2023 (reported) (constant)* Total 2023
Revenue 1,598.1 1,595.2 1,540.2 3.8% 3.6% 6,078.4
Cost of services -1,160.0 -1,154.7 -1,100.1 5.4% 5.0% -4,375.5
Gross profit
438.1 440.5 440.1
-0.5% 0.1%
1,703.0
Gross profit margin
27.4 % 27.6% 28.6% -1.2pp -1.0pp 28.0%
Sales and marketing costs -11.9 -11.8 -12.0 -0.9% -1.3% -54.7
Administrative costs -226.9 -226.0 -231.2 -1.9% -2.3% -935.5
Adjusted EBITA
199.3 202.9 196.9
1.3% 3.1%
712.7
Adjusted EBITA margin
12.5% 12.7% 12.8% -0.3pp -0.1pp 11.7%
Special items -0.7 -0.7 0.0 N/A N/A -0.5
Other operating income / expense 0.2 0.2 0.2 -2.9% -3.1% -0.0
EBITA 198.8 202.2 197.1 0.9% 2.6% 712.2
EBITA margin
12.4% 12.7% 12.8% -0.4pp -0.1pp 11.7%
Amortisation -28.5 -28.5 -33.8 -15.7% -15.7% -134.2
Operating profit (EBIT) 170.3 173.7 163.3 4.3% 6.4% 578.0
Operating profit margin
10.7% 10.9% 10.6% 0.1pp 0.3pp 9.5%
Net financials -34.0 -34.0 -29.6 14.9% 15.0% -138.0
Income / loss, joint venture / associates -4.9 -4.9 -2.7 81.2% 81.2% -7.7
Profit / loss before tax 131.4 134.8 131.0 0.3% 2.9% 432.3
Tax -38.9 -38.8 -27.7 40.5% 40.0% -128.2
Effective tax rate
29.6% 28.8% 21.2% 8.5pp 7.6pp 29.7%
Net profit / loss 92.5 96.0 103.3 -10.5% -7.1% 304.0
Additional KPIs
Adjusted EBITDA 247.1 250.4 242.1 2.1% 3.4% 901.2
Adjusted EBITDA margin
15.5% 15.7% 15.7% -0.3pp -0.0pp 14.8%
Free cash flow -4.9 N/A 141.6 -103.5% N/A 552.1
Cash conversion rate
-4.3% N/A 109.2% -113.5pp N/A 135.1%
*Constant currencies measured using average exchange rates for Q1 2023
5
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
for the increased financial costs was the
increase in the interest rate level and the
full effect of the calculated interest on right
of use assets.
Profit before tax in Q1 2024 was DKK 131.4m
and on level with Q1 2023.
Income taxes in Q1 2024 were DKK 38.9m
compared to DKK 27.7m in the same quar-
ter last year. Effective tax rate was 29.6%
compared to 21.2% for Q1 2023. The in-
crease in the effective tax rate was mainly
caused by an increase in non-deductable
expenses, non-deductable interests and
adjustments to prior year taxable income in
Netcompany-Intrasoft.
As a consequence of increased effective
tax rate, net profit decreased from DKK
103.3m in Q1 2023 to DKK 92.5m in Q1
2024.
Free cash flow decreased from DKK 141.6m
to negative DKK 4.9m mainly caused by the
timing of tax payments and working capital
changes impacted by Easter.
while administrative costs decreased by
1.9% to DKK 226.9m in Q1 2024, as the
Group began to gain scaling efficiencies.
Adjusted EBITDA was DKK 247.1m in Q1
2024, compared to DKK 242.1m last year,
equal to an increase of 2.1%. The adjusted
EBITDA margin was 15.5% (constant 15.7%),
which was 0.3 percentage points lower
than the same quarter last year, impacted
negatively by currency fluctuation. Adjusted
for currency fluctuations EBITDA margin
was on par with Q1 2023 despite fewer
working days in the quarter.
Amortisation was DKK 28.5m in Q1 2024
and DKK 5.3m lower than the same period
last year driven by intangibles recognised
at the acquisition of Netcompany Norway
and Netcompany-Intrasoft being fully amor-
tised during Q4 2023.
Operating profit (EBIT) was DKK 170.3m
compared to DKK 163.3m in Q1 2023, yield-
ing a margin of 10.7% on level with Q1 2023.
Net financials were negative DKK 34m
compared to negative DKK 29.6m for the
same period last year. The main reason
Reported revenue amounted to DKK
1,598.1m in Q1 2024 and grew 3.8% (con-
stant 3.6%) compared to Q1 2023, which
was a tough comparable due to strong
performance in the international part of the
Group last year. In addtion, revenue in Q1
2024 was negatively impacted by around 3
percentage points from fewer working days
in Denmark, Norway and the Netherlands,
due to the timing of Easter. Revenue from
public clients increased by 6.3%, whereas
revenue from private clients declined 1.2%
compared to the same period last year.
Adjusted for the timing of Easter, both seg-
ments realised growth in Q1 2024.
Client facing FTEs grew 4.3% and FTEs at
the end of Q1 2024 amounted to 7,847.
Gross profit margin was 27.4%, compared
to 28.6% in the same period last year. The
lower gross profit margin was driven by
fewer working days in Q1 2024 compared
to same period last year, which more than
offset an improved utilisation in both Den-
mark and Netherlands.
Sales and marketing costs of DKK 11.9m
were in line with the same period last year,
PERFORMANCEOVERVIEWQ1
CONTINUED
6
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Business Segments Q1
DKK million
Q1 2024
Constant (2023 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,595.2 769.2 529.6 157.9 90.0 48.4
Gross profit
446.1 285.7 101.8 29.8 12.6 16.2
Gross profit margin
28.0% 37.1 % 19.2% 18.9% 14.0% 33.5%
Local admin costs -181.2 -102.5 -44.5 -14.8 -12.8 -6.7
Adjusted EBITDA before allocated cost from HQ
264.9 183.1 57.3 15.1 -0.2 9.6
Adjusted EBITDA margin before allocated cost from HQ
16.6% 23.8% 10.8% 9.6% -0.3% 19.8%
Allocated costs from HQ -14.5 -10.1 0.0 -2.4 -1.3 -0.8
Special Items, allocated -0.7 -0.5 0.0 -0.1 -0.1 -0.0
Depreciation -47.6 -23.9 -17.4 -2.6 -2.2 -1.6
Amortisation -28.5 -11.4 -13.3 -2.0 -1.1 -0.6
Other operating income / expense 0.2 0.0 0.2 0.0 0.0 0.0
EBIT 173.7 137.3 26.7 8.0 -4.9 6.5
Client facing FTEs 7,318 2,736 3,446 600 356 180
DKK million
Q1 2023
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,540.2 769.3 482.0 164.7 89.9 34.3
Gross profit 444.8 274.4 98.2 49.4 15.7 7.1
Gross profit margin
28.9% 35.7% 20.4% 30.0% 17.5% 20.6%
Local admin costs -188.4 -107.5 -42.1 -16.9 -15.2 -6.5
Adjusted EBITDA before allocated cost from HQ 256.4 166.9 56.1 32.5 0.5 0.6
Adjusted EBITDA margin before allocated cost from HQ
16.6% 21.7% 11.6% 19.7% 0.5% 1.7%
Allocated costs from HQ -14.3 -10.2 0.0 -2.3 -1.2 -0.6
Depreciation -45.3 -28.1 -10.6 -3.2 -1.9 -1.5
Amortisation -33.8 -17.7 -9.7 -3.5 -1.9 -0.9
Other operating income / expense 0.2 0.0 0.0 0.0 0.0 0.0
EBIT 163.3 110.9 35.8 23.5 -4.5 -2.5
Client facing FTEs 7,019 2,870 3,105 555 337 152
Revenue, %
9.9%
48.2%
33.2%
Q1 2024
3.0%
5.6%
Revenue, %
10.7%
49.9%
31.3%
Q1 2023
2.2%
5.8%
NORWAY
DENMARK
UNITEDKINGDOM
INTRASOFT
NETHERLANDS
NORWAY
DENMARK
UNITEDKINGDOM
INTRASOFT
NETHERLANDS
7
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Netcompany Denmark
In Q1 2024, revenue from the public seg-
ment increased 1.6% compared to the
same period last year, while the private
segment revenue declined 2.5%. In total,
revenue was in line with Q1 2023, despite
three working days fewer in the quarter,
impacting revenue negatively by close to
5 percentage points. Adjusted for fewer
working days revenue in public and private
segments increased 6.6% and 2.2%, re-
spectively.
Gross profit margin was 37.1% in Q1 2024
compared to 35.7% in the same period last
year. The improvement was a result of bet-
ter utilisation in the Danish business unit,
which more than offset the fewer working
days that impacted margin negatively by
around 3 percentage points.
Adjusted EBITDA margin was 23.8% in Q1
2024 compared to 21.7% in Q1 2023. The
increase in margin despite the headwind
from working days, was a result of better
utilisation and lower administrative costs.
Client facing FTEs decreased 4.7% com-
pared to Q1 2023.
In February 2024, Danish media reported
about theft of source code involving Net-
company Denmark. Netcompany confirmed
one single incident involving theft of source
code and user manuals. The data theft has
not had any operational or financial impact.
Netcompany-Intrasoft
Netcompany-Intrasoft started the year of
strong and grew revenue by 9.9% to DKK
529.6m in Q1 2024. The revenue growth
was driven by strong performance in the
public and EU area that grew 13.7%, while
the private segment revenue declined 1.2%
compared to the same quarter last year.
The strong performance in the public seg-
ment was driven by the execution of RRF
projects, whereas the decline in the private
segment was caused by timing of projects.
Adjusted EBITDA margin was 10.8% in Q1
2024 compared to 11.6% in the same period
last year. The lower margin was a result of
a different activity mix.
Client facing FTEs grew 11% in Q1 2024.
Netcompany UK
Netcompany UK realised revenue of DKK
157.9m in Q1 2024, compared to DKK
164.7m in the same quarter last year.
Revenue in the private segment grew 7.4%
compared to Q1 last year while revenue
from the public segment declined 8.4%.
Netcompany UK won a significant contract
with duration of up to five years. Revenue
from this contract is expected to start ma-
terialising in the second half of 2024.
Adjusted EBITDA margin was 9.6% in Q1
2024 compared to 19.7% in the same period
last year. EBITDA margin was negatively
impacted in Q1 2024 by increased time
spent on business development compared
to Q1 last year.
Client facing FTEs grew by 8.1% in Q1 2024.
Netcompany Norway
Revenue in Netcompany Norway was
DKK 90m in Q1 2024, in line with the same
quarter last year, despite four working days
fewer in the quarter, impacting revenue
negatively by 6 percentage points. The
public segment increased 1.1% in Q1 2024
compared to Q1 2023, whereas the private
segment declined 0.9%. Adjusted for the
impact of fewer working days, the public
and private segment grew 7.7% and 5.6%,
respectively.
Gross profit margin was 14% in the quarter,
and 3.5 percentage points lower compared
to the same quarter last year, as an effect
of fewer working days.
Adjusted EBITDA margin was negative 0.3%
compared to 0.5% in Q1 2023. The margin
is expected to increase during 2024 as
utilisation is expected to increase as the
staffing on Avinor is ramping up throughout
the year.
Client facing FTEs grew 5.6% in Q1 2024
compared to the same quarter last year.
Netcompany Netherlands
Netcompany Netherlands had a strong
start to the year and delivered significant
revenue growth of 41% in Q1 2024 com-
pared to the same quarter last year. Growth
was solely generated in the public segment.
Gross profit margin was 33.5% in Q1 2024,
compared to 20.6% in Q1 2023. The in-
crease in gross profit margin was a result
of better project economics and improved
utilisation.
Adjusted EBITDA margin was 19.8% in the
quarter compared to 1.7% in Q1 2023. The
increase in margin was a result of joint
project delivery.
Client facing FTEs increased by 18% com-
pared to the same quarter last year.
BUSINESSSEGMENTSQ1
CONTINUED
8
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Netcompany measures revenue visibility
on a 12-month rolling basis, based on two
main input parameters, which are defined
as total value of committed engagements
(which is 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 April 2024, revenue vis-
ibility for 2024 amounted to DKK 5,420.7m,
of which contractual committed revenue
amounted to DKK 3,567m and non-contrac-
tual committed engagements amounted to
DKK 255.6m, while realised revenue in Q1
2024 amounted to DKK 1,598.1m.
Compared to Q1 2023, revenue visibility
improved by 9.7%. Compared to Q4 2023,
revenue visibility improved by 10.5% from
DKK 4,904.1m.
Revenue visibility in the public segment
amounted to DKK 3,781.6m, of which con-
tractual committed revenue amounted to
DKK 2,565.1m and non-contractual commit-
for Netcompany-Intrasoft, DKK 1,424.7m
is expected to be released in the last nine
months of 2024 and DKK 5,481.1m is ex-
pected to be released in the period from
2025 to 2031.
Revenue visibility
ted engagements amounted to DKK 127.8m,
while realised revenue in Q1 2024 amount-
ed to DKK 1,088.7m.
Revenue visibility in the private segment
amounted to DKK 1,639.2m, of which con-
tractual committed revenue amounted to
DKK 1,001.9m and non-contractual commit-
ted engagements amounted to DKK 127.8m,
while realised revenue in Q1 2024 amount-
ed to DKK 509.4m.
By the beginning of April 2024, the total
order backlog for Netcompany-Intrasoft
amounted to DKK 6,905.7m mainly within
EU institutions. Of the total order backlog
DKK million
Public segment Private segment Total segment
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Intrasoft
Total
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Revenue
Contractual
committed
Netcompany
Core
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committed
Netcompany
Intrasoft
Total
Non con-
tractual
committed
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committed
Netcompany
Core
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committed
Netcompany
Intrasoft
Total
Non con-
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.%
9
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Netcompany employed an average of 7,808
FTEs in Q1 2024, which was an increase
of 295 FTEs or 3.9% compared to Q1 2023
(7,513 FTEs). Revenue growth was on par
with the increase in FTEs, despite fewer
working days due to the timing of Easter –
underpinning improved utilisation.
The number of client facing employees
for the Group increased by 299 from 7,019
in Q1 2023 to 7,318 in Q1 2024, while the
level of non-client facing FTEs was 6.3%
in Q1 2024 compared to 6.6% in Q1 2023.
Freelancers increased 12.9% from 801 in Q1
2023 to 904 in Q1 2024 mainly caused by
increased activity on EU projects. However,
sequentially the increase was 6.6% com-
pared to Q4 2023.
The attrition rate for the last twelve months
was 16.3%, which was a decrease of 3.7
percentage points compared to 20% in Q1
2023. On a sequential basis the churn rate
decreased 1 percentage point compared to
Q4 2023.
3 months rolling churn rates have increased
in Denmark and Norway compared to the
same period last year. This was a result of a
higher proportion of forced churn realised.
Employees
Avg. FTEs increased to 7,808 during Q1 2024
Q1 2023
Attrition rate
19.3%
21.6%
14.5%
17.9%
26.2%
25.2%
42.6%
DK NO UK NL
29.0%
GR LUBE
21.8%
33.1%
8.8%
35.7%
LTM MARCH 2023
LTM MARCH 2024
3 months rolling churn
MAR/APR 2024
20%
5%
25%
10%
30%
15%
35%
40%
45%
50%
11.8%
16.4%
12.0%
17.9%
18.6%
26.6%
11.3%
33.1%
3.2%
Q1 2024
2,000
0
1,500
4,000
NONCLIENTFACING
FREELANCERS
UNITEDKINGDOM POLAND
DENMARK
UKCONTRACTORS
VIETNAM
NETHERLANDS
NORWAY
INTRASOFT
4,500
6,0005,500 6,500
7,000
5,000
7,500
2,585 904
7,808
2,088 321 426
163
553 490
28
250
801
7,513
2,109 306
142
518 493
32
268
2,347
8,000
497
3,500
10
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion
Total
Trade receivables, 31 March
2024
726.0 316.1 43.5 29.4 60.0 -21.0 1,154.0
Paid in the following month 345.7 251.9 19.7 15.8 19.0 0.0 652.0
% paid subsequently
47.6% 79.7% 45.3% 53.8% 31.6% 0.0% 56.5%
Trade receivables, 31 March
2023
640.6 144.2 32.5 62.1 56.6 -19.6 916.4
Paid in the following month 176.2 71.8 20.2 9.8 10.4 0.0 288.3
% paid subsequently
27.5% 49.8% 62.2% 15.7% 18.4% 0.0% 31.5%
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion
Total
Free cash flow and cash conversion rate
1
The Group had a negative free cash flow of
DKK 4.9m in Q1 2024, negatively impacted
by taxes paid related to prior year, taxes
paid on account and the timing of pay-
ments received from accounts receivables
due end of March, that because of Easter
was received in the beginning of April.
Normalised for taxes, the Group generated
a free cash flow of DKK 77.1m in Q1 2024
compared to DKK 166.5m in Q1 2023 mainly
caused by development in net working cap-
ital. Working capital changes impacted free
cash flow negatively by DKK 84.9m in Q1
2024 compared to DKK 14.3m in Q1 2023.
This development was impacted by Q1
2024 ending on a bank holiday, why a larger
than normal part of the trade receivables
was collected in the beginning of April.
During Q1 2024 work in progress was built
up by DKK 207.3m, while trade receivables
decreased by DKK 107.8m. The difference
is expected to be collected within the fol-
lowing quarter, and thereby have a positive
impact on the free cash flow in Q2 2024.
Consequently, cash conversion normalised
for taxes decreased from 128.5% in Q1 2023
to 67.2% in Q1 2024.
Trade receivables
At 31 March 2024, trade receivables were
DKK 1,154m compared to DKK 916.4m end
of Q1 2023, corresponding to an increase
of 25.9% compared to revenue growth of
3.8%. The increase compared to the same
period last year, was impacted by Q1 2024
ending on Easter holiday. However, on a se-
quential basis trade receivables decreased
8.5% from DKK 1,261.8m end of Q4 2023.
Days sales outstanding increased from 54
days in Q1 2023 to 66 days in Q1 2024 but
improved from 73 days in Q4 2023.
As a consequence of some trade receiv-
ables being collected later due to the Easter
holiday, the overdue part of the trade re-
ceivables increased from 31.6% in Q1 2023
to 38.2% in Q1 2024. The timing difference
of payments from trade receivables in Q1
is expected to catch up in April and thus
return to a normal level during Q2 2024.
The trade receivables paid in the following
month amounted to DKK 652m in April of
which DKK 306.4m was overdue end of
March. Compared to Q1 2023, the total
amount of trade receivables paid in the
following month increased by 126.2%.
Capital and other financial positions
1
Taxes paid within the Group are, due to local tax
regulations, 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 bet-
ter reflect the underlying development in free cash
flow based on operations rather than impact from
local tax legislation in Denmark.
11
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Work in progress
At 31 March 2024, Netcompany’s work in
progress amounted to DKK 909.9m, repre-
sented by contract work in progress of DKK
1,488.5m and prepayments received from
customers of DKK 578.6m.
Combined work in progress decreased by
2.7% from DKK 935m in Q1 2023 to DKK
909.9m in Q1 2024, naturally impacted by
fewer working days in March 2024 com-
pared to March 2023.
In the quarter revenue increased 3.8% from
DKK 1,540.2m in Q1 2023 to DKK 1,598.1m
in Q1 2024, whereas revenue for the last
twelve months increased by 7.4%.
As a total, trade receivables and work in
progress increased by 11.5% from DKK
1,851.4m end of Q1 2023 to DKK 2,063.9m
end of Q1 2024. The higher increase,
compared to revenue growth for the last
twelve months, was caused by the timing
of Easter, which brought trade receivables
up, temporarily.
Funding and liquidity
Originally, the maturity of the Group bank
loan expired in 2025. In April 2023 and April
2024, the loan was prolonged twice by one
year and now runs to 2027.
The combined committed facilities con-
stitute DKK 2,847.5m and an additional
facility of DKK 2,000m, available only for
new acquisitions. At 31 March 2024, DKK
1,627.5m of the committed lines were
utilised on ordinary borrowings, DKK 37.5m
on guarantees and DKK 106.5m utilised for
acquisitions, 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 528.8m on local guarantees,
having no impact on the Group facilities
except for leverage.
Including net cash balance of DKK 301.6m
as of 31 March 2024, DKK 1,484.1m was
available for Group funding.
Risk management
Please refer to the overview of risk factors
provided by the Group in the Annual Report
for 2023.
Capital structure
Compared to Q1 2023, debt ratio was
unchanged at 1.6x, which is fully compliant
with current covenants.
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.
CAPITALANDOTHERFINANCIALPOSITIONS
CONTINUED
-2.7%
+3.8%
+7.4%
909.9
1,598.1
Work in progress overview (DK million)
1,000
0
500
1,500
Mar. 31
2024
Q1 2024
Q1 2024
LT M
6,136.4
WIP
REVENUE
935.0
Mar. 31
2023
1,540.2
Q1 2023
Q1 2023
LT M
5,713.4
6,000
4,500
12
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 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%
Guidance 2024
Netcompany realised revenue growth of
3.6% and Adjusted EBITDA margin of 15.7%
in Q1 2024, both measured in constant
currencies.
Despite fewer working days related to the
timing of Easter the Group realised Adjusted
EBITDA margin in line with Q1 2023.
The negative impact from fewer working
days in Denmark and Norway in Q1 2024 will
be reversed in Q2 2024, and impact revenue
growth and margin positively.
We maintain our expectations for the finan-
cial performance for the year for the Group
of 7-10% revenue growth and Adjusted EBIT-
DA margin of 15-18%.
We reiterate our midterm targets to be
achieved by 2026 with a revenue target of
at least DKK 8.5bn and Adjusted EBITDA
margin of at least 20%. We also reiterate
our commitment to re-distribute at least
DKK 2bn of cash to shareholders – mainly
as share buyback – and in that aspect we
initiate a second share buyback programme
of DKK 250m to be executed by 12 August
2024.
A number of risks and assumptions to our
full year guidance for 2024 were discussed
in connection to the release of our Annual
Report 2023. Those risks and assumptions
still prevails and could impact our perfor-
mance for the remaining part of 2024.
Midterm targets 2026
Revenue >8.5bn
Adjusted EBITDA margin >20%
Cash redistribution to share-
holders >2bn
13
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Capital
Netcompany’s share capital is DKK 50m
divided into 50m shares. End of Q1 2024
Netcompany held 763,414 treasury shares
equivalent to 1.5% of the share capital. The
shares will be used to honour the Group’s
commitments under its long-term incentive
programmes.
Share-based incentive schemes/restrict-
ed stock units and matching shares
In total, 460,990 restricted stock unites
(RSUs) and 133,155 matching shares in rela-
tion to the share-based incentive schemes
were issued at 31 March 2024 of which
101,640 RSUs and 24,000 matching shares
were granted to Executive Management
and 359,350 RSUs and 109,155 matching
shares were granted to Other Key Man-
agement Personnel and Other Employees.
The fair value of the shares at grant was
DKK 173.3m. The cost related hereto is
expensed over the vesting period.
A total amount of DKK 12.7m was recog-
nised as personnel costs in the income
statement in Q1 2024. During the quarter,
the RSU programmes granted in 2020
exercised and 41,551 treasury shares
(recognised at DKK 23.9m on equity) were
transferred from reserves to Executive
Management, Other Key Management
Personnel and Other Employees part of the
RSU programme.
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
14 August 2024
Interim report for the first 6 months of
2024.
31 October 2024
Interim report for the first 9 months 2024.
Shareholder information
14
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Today, the Board of Directors and Executive
Management considered and approved the
interim consolidated financial statements
for Netcompany Group A/S (“Netcompa-
ny” or “the company” and together with
all its subsidiaries “the Group”) for the
period 1 January 2024 to 31 March 2024.
The Q1 2024 report has not been audited
or reviewed by the company’s independent
auditors.
The interim consolidated financial state-
ments have been prepared in accordance
with IAS 34 as adopted by the EU and addi-
tional Danish regulations for the presenta-
tion of interim reports by listed companies.
Furthermore, the interim report has been
prepared in accordance with the account-
ing policies set out in the Group’s Annual
Report for 2023.
In our opinion, the accounting policies used
are appropriate, and the overall presenta-
tion of the interim consolidated financial
statements gives a true and fair view of
the Group’s assets, liabilities and financial
position as at 31 March 2024 and of the
results of the Group’s operations and cash
flows for the period 1 January 2024 to 31
March 2024.
We further consider that the Management’s
Review in the preceding pages includes a
true and fair account of the development
and performance of the Group, the results
for the period and the financial position, as
well as a description of the principal risks
and uncertainties that the Group faces in
accordance with Danish disclosure require-
ments for listed companies.
COPENHAGEN,3MAY2024
Executive Management
André Rogaczewski
CEO
Bo Rygaard
Chairman of the Board
Åsa Riisberg
Claus Jørgensen
COO
Juha Christensen
Vice Chairman of the Board
Bart Walterus
Thomas Johansen
CFO
Board of Directors
Statement of the Board of Directors
and Executive Management
Susan Helen Cooklin
15
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Consolidated interim
financial statements
16
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Income statement and Statement
of comprehensive income
DKK million
Note Q1 2024 Q1 2023 Total 2023
Income statement
Revenue 1 1,598.1 1,540.2 6,078.4
Cost of services 2 -1,160.0 -1,100.1 -4,375.5
Gross profit
Sales and marketing costs -11.9 -12.0 -54.7
Administrative costs 3 -226.9 -231.2 -935.5
Special items -0.7 0.0 -0.5
Other operating income / expense 0.2 0.2 -0.0
EBITA 198.8 197.1 712.2
Amortisation -28.5 -33.8 -134.2
Operating profit (EBIT) 170.3 163.3 578.0
Financial income
4
Financial expenses 4 -38.7 -33.5 -163.3
Income / loss, joint venture / associates -4.9 -2.7 -7.7
Profit / loss before tax 131.4 131.0 432.3
Tax on the profit for the period -38.9 -27.7 -128.2
Net profit / loss for the period 92.5 103.3 304.0
Of which
Non-controlling interest -0.9 -0.3 0.5
Netcompany Group A/S' share
Earnings per share
Earnings per share (DKK)
5
Diluted Earnings per share (DKK)
5
DKK million
Note Q1 2024 Q1 2023 Total 2023
Statement of comprehensive income
Net profit / loss for the period 92.5 103.3 304.0
Other comprehensive income items
that may be reclassified subsequently
to profit or loss:
Exchange rate adjustments on translat-
ing foreign subsidiaries
-0.2 -0.2 6.7
Other comprehensive income items
that may not be reclassified to profit
or loss:
Actuarial profit / loss on defined benefit
plans
Other comprehensive income, net of
tax
-0.2 -0.2 7.8
Of which
Non-controlling interest 0.0 -0.1 -0.2
Netcompany Group A/S' share
-0.2 -0.1 7.9
Total comprehensive income 92.3 103.1 311.8
Of which
Non-controlling interest -0.9 -0.4 0.4
Netcompany Group A/S' share
17
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Statement of financial position
31 March 31 March 31 December
DKK million
Note
2024 2023 2023
Assets
Intangible assets 3,724.3 3,755.3 3,733.1
Tangible assets 923.6 390.2 946.9
Investment in joint venture 87.2 94.7 89.5
Investment in associates 112.0 8.0 114.6
Other securities and investments 1.1 1.4 1.1
Other receivables 55.8 61.6 54.5
Deferred tax assets 44.2 34.1 41.8
Total non-current assets
Trade receivables 6 1,154.0 916.4 1,261.8
Receivables from joint venture 7.4 7.6 8.1
Receivables from associates 13.9 16.4 12.7
Contract work in progress 7 1,488.5 1,366.7 1,263.9
Other receivables 119.9 87.6 61.9
Prepayments 125.0 116.1 122.0
Tax receivables 59.6 60.7 0.0
Total receivables 2,968.2 2,571.6 2,730.3
Cash 301.6 242.2 448.1
Total current assets 3,269.8 2,813.8 3,178.4
Total assets
31 March 31 March 31 December
DKK million
Note
2024
2023 2023
Equity and liabilities
Share capital 50.0 50.0 50.0
Treasury shares -265.3 -186.5 -193.1
Retained earnings 4,039.5 3,752.6 3,965.1
Other reserves
Equity attributable to Group
Non-controlling interest 5.6 5.8 6.5
Total equity
Borrowings 1,574.0 1,673.2 1,586.9
Lease liabilities 748.6 241.1 761.8
Pension obligations 19.8 14.5 19.0
Deferred tax liability 71.7 110.9 69.0
Total non-current liabilities
Borrowings 154.0 45.4 146.9
Lease liabilities 117.2 87.4 114.7
Pension obligations 1.7 5.8 1.7
Prebilled invoices 7 578.6 431.7 561.3
Trade payables 338.7 282.1 340.0
Other payables 8 747.3 637.9 670.9
Provisions 16.9 6.9 16.7
Income tax payable 18.3 0.0 40.9
Total current liabilities
Total liabilities
Total equity and liabilities 8,218.0 7,159.1 8,159.8
18
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Cash flow statement
DKK million
Q1 2024 Q1 2023 Total 2023
Operating profit (EBIT) 170.3 163.3 578.0
Depreciation and amortisation 76.2 79.0 322.7
Non-cash items 11.5 7.2 44.2
Working capital changes -84.9 14.3 26.7
Total
Income taxes paid -121.7 -54.8 -103.3
Financial income received 2.1 1.4 7.6
Financial expenses paid -24.7 -20.2 -117.3
Cash flow from operating activities
Other investments 0.0 -0.1 -105.7
Capitalisation of intangible assets -19.6 -29.8 -107.9
Acquisition of fixed assets -14.2 -18.9 -98.5
Disposals of fixed assets 0.0 0.0 4.9
Other receivables (deposits) -1.3 -6.6 4.5
Cash flow from investment activities
-35.1 -55.3 -302.8
Payment of treasury shares -104.4 0.0 -32.0
Proceeds from borrowings 0.0 0.5 127.5
Repayment of borrowings -6.6 -202.5 -314.3
Repayment of lease liabilities -29.4 -24.9 -124.5
Cash flow from financing activities -140.4 -226.9 -343.4
Net increase in cash and cash equivalents
-146.6 -92.0 112.4
Cash and cash equivalents at the beginning
Effect of exchange rate changes on the balance cash held in foreign currencies 0.2 -1.9 -0.4
Cash and cash equivalents at the end
19
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
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 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 93.4 93.4 -0.9 92.5
Other comprehensive income 0.0 0.0 0.0 -0.2 0.0 0.0 -0.2 0.0 -0.2
Total comprehensive income 0.0 0.0 0.0 -0.2 0.0 93.4 93.3 -0.9 92.3
Treasury Shares for the period 0.0 -103.7 0.0 0.0 0.0 0.0 -103.7 0.0 -103.7
Share-based remuneration for the period 0.0 31.5 -12.7 0.0 0.0 -6.2 12.6 0.0 12.6
Total transactions with owners 0.0 -72.2 -12.7 0.0 0.0 -6.2 -91.1 0.0 -91.1
Equity at 31 March 2024 50.0 -265.3 54.5 5.1 1.5 3,980.0 3,825.7 5.6 3,831.3
Equity at 1 January 2023
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 0.0 103.6 103.6 -0.3 103.3
Other comprehensive income 0.0 0.0 0.0 -0.1 0.0 0.0 -0.1 -0.1 -0.2
Total comprehensive income 0.0 0.0 0.0 -0.1 0.0 103.6 103.5 -0.4 103.1
Share-based remuneration for the period 0.0 126.8 -132.3 0.0 0.0 -0.1 -5.6 0.0 -5.6
Total transactions with owners 0.0 126.8 -132.3 0.0 0.0 -0.1 -5.6 0.0 -5.6
Equity at 31 March 2023
Equity at 1 January 2023
Adjusted Equity at 1 January 2023
Total comprehensive income
Total transactions with owners
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.
20
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q1 2024 Q1 2023 % change Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023
Revenue 1,088.7 1,024.6 6.3% 472.8 465.2 407.9 358.0 113.6 120.0 46.0 47.3 48.4 34.1
Cost of service -802.6 -753.5 6.5% -312.2 -316.9 -328.6 -285.9 -94.4 -86.0 -35.3 -37.5 -32.2 -27.1
Gross profit
286.1 271.1
5.5%
160.6 148.3 79.3 72.1 19.2 33.9 10.7 9.8 16.2 7.0
Gross profit margin
26.3% 26.5% -0.2pp 34.0% 31.9% 19.4% 20.1% 16.9% 28.3% 23.3% 20.8% 33.5% 20.5%
Allocated costs -148.3 -151.0 -1.8% -75.9 -80.2 -44.4 -39.2 -12.5 -14.6 -7.2 -8.9 -8.3 -7.9
Adjusted EBITA before HQ costs 137.7 120.1 14.6% 84.7 68.1 34.9 32.8 6.7 19.3 3.5 0.9 8.0 -0.9
Adjusted EBITA margin before
allocated cost from HQ
12.7% 11.7% 0.9pp 17.9% 14.6% 8.6% 9.2% 5.9% 16.1% 7.6 % 1.9% 16.4% -2.8%
Allocated costs from HQ -9.3 -9.1 2.0% -6.2 -6.3 0.0 0.0 -1.7 -1.6 -0.7 -0.6 -0.8 -0.6
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 128.0 111.0 15.3% 78.1 61.8 34.9 32.8 5.0 17.7 2.8 0.3 7.2 -1.5
EBITA margin
11.8% 10.8% 0.9pp 16.5% 13.3% 8.6% 9.2% 4.4% 14.7% 6.1% 0.5% 14.8% -4.5%
Amortisation -18.6 -21.7 -14.5% -5.4 -9.8 -10.6 -7.4 -1.4 -2.6 -0.6 -1.0 -0.6 -0.9
Operating profit 109.4 89.3 22.5% 72.7 52.0 24.3 25.4 3.6 15.1 2.3 -0.7 6.5 -2.5
Operating profit margin
10.0% 8.7% 1.3pp 15.4% 11.2% 6.0% 7.1 % 3.2% 12.6% 4.9% -1.6% 13.5% -7.3%
Segment information
Public Q1
NOTE1
21
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q1 2024 Q1 2023 % change Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023
Revenue 509.4 515.6 -1.2% 296.4 304.1 122.7 124.0 49.6 44.7 40.6 42.6 0.1 0.3
Cost of service -357.4 -346.6 3.1% -178.3 -182.6 -101.2 -97.9 -37.8 -29.3 -39.9 -36.7 -0.2 -0.2
Gross profit
152.0 169.0
-10.0%
118.1 121.4 21.5 26.1 11.8 15.5 0.7 5.9 -0.1 0.1
Gross profit margin
29.8% 32.8% -2.9pp 39.8% 39.9% 17.5% 21.1% 23.8% 34.6% 1.8% 13.9% -44.4% 28.4%
Allocated costs -75.9 -78.0 -2.6% -46.8 -50.7 -16.4 -13.4 -5.4 -5.4 -7.3 -8.2 -0.0 -0.0
Adjusted EBITA before HQ costs
76.1 91.0
-16.4%
71.3 70.8 5.1 12.7 6.4 10.0 -6.6 -2.3 -0.1 0.0
Adjusted EBITA margin before
allocated cost from HQ
14.9% 17.7% -2.7pp 24.1% 23.3% 4.1% 10.3% 12.9% 22.4% -16.2% -5.5% -76.4% 13.6%
Allocated costs from HQ -5.2 -5.1 1.3% -3.8 -4.0 0.0 0.0 -0.7 -0.6 -0.7 -0.6 -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
0.2 0.2 -2.9% 0.0 0.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBITA 70.8 86.0
-17.7%
67.3 66.8 5.2 12.7 5.7 9.4 -7.3 -2.9 -0.1 0.0
EBITA margin
13.9% 16.7% -2.8pp 22.7% 22.0% 4.3% 10.3% 11.4% 21.0% -17.9% -6.8% -79.4% 12.4%
Amortisation -9.9 -12.1 -17.8% -6.0 -7.9 -2.7 -2.3 -0.6 -1.0 -0.6 -0.9 -0.0 -0.0
Operating profit 60.9 74.0
-17.7%
61.3 58.9 2.5 10.4 5.1 8.4 -7.8 -3.8 -0.1 0.0
Operating profit margin
12.0% 14.3% -2.4pp 20.7% 19.4% 2.0% 8.4% 10.2% 18.9% -19.2% -8.9% -81.8% 10.6%
Segment information
Private Q1
CONTINUED
22
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Segment information related to geographical areas
CONTINUED
Q1 2024
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 770.2 185.6 166.1 199.3 88.0 69.5 55.8 63.8 1,598.1
Q1 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 779.5 174.7 169.7 148.6 90.5 82.5 38.8 55.9 1,540.2
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
Segment information
Geographical
23
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Administrative costs
Cost of services
DKK million
Q1 2024 Q1 2023 Total 2023
Cost of services -279.2 -269.3 -1,163.6
Salaries -875.2 -826.1 -3,193.6
Depreciation -5.6 -4.7 -18.2
Cost of services total
-1,160.0 -1,100.1 -4,375.5
DKK million
Q1 2024 Q1 2023 Total 2023
Administrative costs -91.3 -103.4 -425.9
Salaries -93.5 -87.3 -339.5
Depreciation -42.1 -40.5 -170.2
Administrative costs total
-226.9 -231.2 -935.5
NOTE2
NOTE3
Financial income and expenses
DKK million
Q1 2024 Q1 2023 Total 2023
Financial Income
Exchange rate adjustments 3.0 3.3 21.9
Other financial income 1.7 0.6 3.4
Financial income total
4.7 3.9 25.2
Financial expenses
Interest expense, bank loan -26.3 -19.4 -88.5
Interest expense, leasing -7.8 -2.3 -25.3
Exchange rate adjustments 0.6 -9.1 -30.7
Other financial expenses -5.2 -2.7 -18.7
Financial expenses total
-38.7 -33.5 -163.3
NOTE4
24
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Earnings per share
DKK million
Q1 2024 Q1 2023 Total 2023
Earnings per share - EPS (DKK) 1.89 2.10 6.13
Diluted earnings per share - EPS-D (DKK) 1.87 2.09 6.09
Profit 93.4 103.6 303.5
Average number of shares 50.0 50.0 50.0
Average number of treasury shares 0.5 0.7 0.5
Average number of shares in circulation 49.5 49.3 49.5
Average number of outstanding restricted stock units 0.5 0.3 0.3
Average number of diluted shares in circulation 49.9 49.6 49.8
NOTE5
The Group is continuously conducting
individual assessments of bad debt.
If this leads to an assessment that the
Group will not be able to collect the
amount accounted for, an allowance for
bad debt is made. At 31 March 2024, the
Group recognised a provision for expect-
ed credit losses of DKK 21m (31 March
2023: DKK 19.6m), and no credit losses
have incurred during Q1 2024.
The credit quality of trade receivables at
31 March 2024, is considered satisfactory.
Trade receivables
NOTE6
31 March 31 March 31 December
DKK million
2024 2023 2023
Not overdue 726.0 640.6 826.2
0-30 days overdue 316.1 144.2 302.9
31-60 days overdue 43.5 32.5 67.8
61-90 days overdue 29.4 62.1 13.4
Over 90 days overdue 60.0 56.6 70.7
Total trade receivables excl. expected credit loss
1,175.0 936.0 1,280.9
Expected credit loss -21.0 -19.6 -19.1
Total trade receivables
1,154.0 916.4 1,261.8
25
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Contract work in progress
NOTE7
31 March 31 March 31 December
DKK million
2024 2023 2023
Selling price of work performed on fixed price projects 5,220.9 4,169.7 3,950.7
Invoiced amount on fixed price projects -4,311.0 -3,234.7 -3,248.0
Total contract work in progress
909.9 935.0 702.6
Net value – stated on a contract-per-contract basis – is presented in the
statement of financial position as follows:
Contract work in progress 1,488.5 1,366.7 1,263.9
Prebilled invoices -578.6 -431.7 -561.3
Total contract work in progress
909.9 935.0 702.6
Based on the current project portfolio
including monitoring of deliveries on
projects, the Group has recognised a
provision of DKK 16.9m (DKK 6.9m),
covering legal claims and project related
risks.
Other costs include accruals for fee, ad-
ministration, sales, and other items. Other
accruals liabilities have a remaining term of
up to one year.
Other payables
31 March 31 March 31 December
DKK million
2024 2023 2023
Wages and salaries, payroll taxes, social security costs, etc. payable 115.5 88.4 131.2
Holiday pay obligation 194.2 183.8 112.2
VAT and duties 106.4 93.3 129.7
Holdback 10.2 10.2 10.2
Other costs payable 321.0 262.2 287.6
Total other payables 747.3 637.9 670.9
NOTE8
26
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Income Statement classified by function
DKK million
Q1 2024 Q1 2023 Total 2023
Income statement
Revenue 1,598.1 1,540.2 6,078.4
Cost of services, incl. depreciation and amortisation -1,176.3 -1,111.6 -4,427.2
Gross profit
421.8 428.6 1,651.2
Sales and marketing costs -11.9 -12.0 -54.7
Administrative costs, incl. depreciation, amortisation and special items -239.9 -253.6 -1,018.5
Other operating income / expense 0.2 0.2 -0.0
Operating profit (EBIT)
170.3 163.3 578.0
Financial income 4.7 3.9 25.2
Financial expenses -38.7 -33.5 -163.3
Income / loss from joint venture / associates -4.9 -2.7 -7.7
Profit / loss before tax
131.4 131.0 432.3
Tax on the profit for the period
-38.9 -27.7 -128.2
Net profit / loss for the period
92.5 103.3 304.0
Depreciation and Amortisation have been presented as follows in the
income statement:
Cost of services -21.9 -16.2 -70.0
Administrative costs -54.3 -62.9 -252.7
Depreciation and amortisation
-76.2 -79.0 -322.7
NOTE9
27
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
As part of its contract commitments with
customers, the Group has through its
banks provided performance guarantees
of DKK 566.3m (DKK 486.2m).
In Q1 2024, Netcompany recognised
revenue from Smarter Airports A/S of DKK
8.4m (DKK 15.4m), and revenue from Festi-
na Finance A/S of DKK 2.9m (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 Q1
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 con-
solidated Annual Report for the year ended
31 December 2023 for Netcompany Group
A/S.
Accounting policies
NOTE12
28
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
DKK million
Q1 2024 Q1 2023 % change Total 2023
Income statement
Public revenue 1,088.7 1,024.6 6.3% 4,108.5
Private revenue 509.4 515.6 -1.2% 1,969.9
Development revenue 492.6 624.2 -21.1% 2,047.8
Maintenance revenue 1,103.0 912.7 20.8% 3,968.2
License revenue 2.6 3.2 -20.8% 62.4
Organic revenue 1,598.1 1,540.2 3.8% 6,078.4
Non-organic revenue 0.0 0.0 N/A 0.0
Revenue by growth, total 1,598.1 1,540.2 3.8% 6,078.4
Special items -0.7 0.0 N/A -0.5
Adjusted EBITDA 247.1 242.1 2.1% 901.2
EBITDA 246.5 242.3 1.7% 900.7
Adjusted EBITA 199.3 196.9 1.3% 712.7
EBITA 198.8 197.1 0.9% 712.2
Operating profit (EBIT) 170.3 163.3 4.3% 578.0
Net financials -34.0 -29.6 14.9% -138.0
Net profit / loss 92.5 103.3 -10.5% 304.0
Financial position
Capex
-33.8 -48.6 -30.5% -206.5
Total assets 8,218.0 7,15 9.1 14.8% 8,159.8
Equity 3,831.3 3,622.3 5.8% 3,830.1
Net increase in cash and cash equivalents -146.6 -92.0 59.5% 112.4
Free cash flow -4.9 141.6 -103.5% 552.1
Free cash flow (tax normalised) 77.1 166.5 -53.7% 496.4
Financial figures and highlights
NOTE13
29
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
FINANCIALHIGHLIGHTSANDKEYFIGURES
CONTINUED
Earnings per share
Earnings per share (DKK)
1.89 2.10 -10.1% 6.13
Diluted earnings per share (DKK) 1.87 2.09 -10.3% 6.09
Employees
Average number of full-time employees
Financial ratios
Revenue growth 3.8% 12.3% -8.5pp 9.6%
Gross profit margin 27.4% 28.6% -1.2pp 28.0%
Adjusted EBITDA margin 15.5% 15.7% -0.3pp 14.8%
EBITDA margin 15.4% 15.7% -0.3pp 14.8%
Adjusted EBITA margin 12.5% 12.8% -0.3pp 11.7%
EBITA margin 12.4% 12.8% -0.4pp 11.7%
Operating profit margin 10.7% 10.6% 0.1pp 9.5%
Effective tax rate 29.6% 21.2% 8.5pp 29.7%
Return on equity 2.5% 3.1% -0.6pp 8.3%
Solvency ratio 46.6% 50.6% -4.0pp 46.9%
ROIC 1.8% 2.0% -0.3pp 5.9%
ROIC (adjusted for Goodwill) 4.8% 5.9% -1.1pp 16.9%
Cash conversion ratio -4.3% 109.2% -113.5pp 135.1%
Cash conversion ratio (tax normalised) 67.2% 128.5% -61.2pp 121.4%
DKK million
Q1 2024 Q1 2023 % change Total 2023
30
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
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
outstand-
ing
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 operat-
ing 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.
31
31
Underlying margin improvements with growth on track
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 18/2024
3 May 2024
Disclaimer
This report contains forward-looking
statements including, but not limited to, the
statements and expectations contained
in the outlook section. Forward-looking
statements are statements (other than
statements of historical fact) relating to
future events and Netcompany’s antici-
pated or planned financial and operational
performance.
The words ‘may’, ‘will’, ‘will continue’,
‘should’, ‘expect’, ‘foresee’, ‘anticipate’,
‘believe’, ‘estimate’, ‘plan’, ‘predict’, ‘intend’
or variations of these words, including
negatives thereof, as well as other state-
ments regarding matters that are not
historical fact or regarding future events
or prospects, constitute forward-looking
statements.
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 ma-
terially from those predicted in the for-
ward-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,
including those described in Netcompany
Group A/S’ Annual Report 2023 and other
information made available by Netcompany.
Factors that may affect future results
include, 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 informa-
tion 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
result 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.