Interim Report Q2 2021: Succesful CoreBuild acquisition with high impact
Company Announcement no. 14/2021
The Board of Directors for Wirtek A/S has approved the financial report for Q2 2021. The detailed financial report for Q2 2021 is attached to this announcement.
CEO Michael Aaen comments:
“Wirtek completed the acquisition of the two CoreBuild sister companies on April 29 with effect from June 1. The integration of CoreBuild is progressing very well and is already contributing positively to the financial results.
Although Wirtek had significant one-time costs related to the CoreBuild acquisition during Q2 2021, we still achieved a positive Q2 EBITDA of TDKK 594 and a revenue growth of 46% compared to Q2 2020. Organic revenue growth was 19% during Q2 2021.
Based on the good results and a favorable prognosis for second half of 2021, Wirtek raised both revenue and EBITDA expectations for 2021 a second time on August 5. With revenue growth of more than 60% and EBITDA growth of more than 80% expected this year, Wirtek is taking a huge step towards reaching the financial goals of our Accelerate25 strategy. “
Financial highlights for the period 1 January – 30 June 2021
| TDKK | Q2 2021 | Q2 2020 | Change | H1 2021 | H1 2020 | Change |
| Revenue | 9,699 | 6,663 | 46% | 17,446 | 13,656 | 28% |
| EBITDA | 594 | 793 | -25% | 2,072 | 1,654 | 25% |
| EBITDA-margin (%) | 6.1% | 11.9% | -49% | 11.9% | 12.1% | -2% |
| Pre-tax profits | 336 | 729 | -54% | 1,827 | 1,552 | 18% |
| Cash holdings | -1.329 | 4,544 | NA | -1.329 | 4,544 | NA |
Strong organic growth with boost from CoreBuild acquisition during Q2 2021
- Revenue grew by 46% to TDKK 9,699 during Q2 2021 compared to revenue of TDKK 6,663 during Q2 2020. The organic revenue growth was 19%. Revenue growth during H1 2021 was 28% compared to H1 2020.
- EBITDA was TDKK 594 in Q2 2021 compared to TDKK 793 for the same period last year. Significant one-time costs related to especially the CoreBuild acquisition impacted the EBITDA for Q2 2021. A normalized EBITDA for Q2 2021, adjusted for the one-time costs, would be more than DKK 1m. During H1 2021 EBITDA was TDKK 2,072, a growth of 25% compared to H1 2020.
- The EBITDA-margin for Q2 2021 was 6.1% compared to 11.9% during same period in 2020. The EBITDA-margin for H1 2021 of 11.9% is very close to the H1 2020 EBITDA-margin of 12.1%.
- Pre-tax profits (EBT) were TDKK 336 in Q2 2021 compared to TDKK 729 during Q2 2020. EBT for H1 2021 grew by 18% compared to H1 2020.
- Cash flow in Q2 2021 as significantly impacted by the acquisition of CoreBuild, both in terms of the up-front payment in cash and Wirtek shares as well as the purchase of Wirtek treasure shares to cover a significant part of the expected future earn-out payment to the former CoreBuild owners.
- Cash holdings of more than DKK 5m were used to cover a significant part of the acquisition costs and dividend pay-out during Q2 2021. Wirtek expects to quickly build up our cash holdings during the coming months.
Outlook for 2021
Wirtek has raised the outlook for 2021 twice this year. First time on 29 April 2021 after completing the acquisition of CoreBuild (see ) and second time on 5 August 2021 based on preliminary financial results for Q2 2021 and an updated prognosis for second half of 2021 (see ). Current outlook for 2021:
- Revenue expectations for 2021 were raised to DKK 44.5m – 45.5m (up from a previously raised expectation of DKK 42.0m – 44.0m), a growth of 61% – 65% compared to 2020.
- EBITDA expectations for 2021 were raised to DKK 5.9m – 6.3m (up from a previously raised expectation of DKK 5.0m – 5.4m), a growth of 83% – 95% compared to 2020.
Further information
- Michael Aaen, CEO, Wirtek A/S, Phone: , E-mail:
Niels Jernes Vej 10, 9220 Aalborg Ø, - Kent Mousten Sørensen, Chairman, Wirtek A/S, Phone:
- Per Vestergaard, Certified Advisor, CDI Global, Phone:
About Wirtek
Wirtek is a Danish IT outsourcing company. Since 2001, we have been teaming up with companies to help them create great software solutions and electronic equipment products.
Several clients have been with us for more than 10 years, so we can confidently say that in outsourcing, the quality of the relationship matters just as much as the quality of the delivered software. Our clients get state-of-the-art technical solutions and a committed team that works with them as if it were their own.
Wirtek has offices in Denmark (HQ + sales) and four development and test centres in Romania, and we are 180+ colleagues. Wirtek was listed at Nasdaq First North Growth Market Denmark in 2006.
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