Dataproces Group A/S presents interrim financial report - H1 2020/21

Company Announcement No. 7

The following are the main points of the report:

• Growth of 65% in revenue from Dataproces' SaaS solutions.
  • Three municipalities on "MARS" and three more after the balance sheet date.
  • Six municipalities on "Min Sag".
• Clear indication that the municipalities are ready to create more value with data themselves using solutions from Dataproces.
• The founders have chosen to shift gears for further growth through IPO on Nasdaq First North Growth Market Denmark.
• IPO oversubscribed by 159%.
• Strengthened board with two new board members.
• After the balance sheet date, a strong profile has been hired as Head of Sales.

Financial key figures

INCOME STATEMENT	H1 2020/21	H1 2019/2020	2019/2020
DKK THOUSAND	01.05.2020 – 31.10.2020	01.05.2019 – 31.10.2019	01.05.2019 – 30.04.2020
Revenue	8.139	8.963	28.486
Gross profit	5.458	6.931	24.503
Employee expenses	-8.146	-10.537	-19.632
Earnings before depreciasions	-2.688	-3.606	4.871
Depreciasions etc.	-1.225	-989	-1.925
Profit from ordinary operating activities	-3.913	-4.595	2.946
Financial expences etc.	-64	-42	-775
Profit from ordinary activities before tax	-3.977	-4.637	2.171
Tax expences	875	1.003	-613
Profit / Loss	-3.102	-3.634	1.558

Statement from CEO, Kjartan Jensen

"The first half of the financial year 2020/21 has been characterized by COVID-19 and significant strategic and organizational steps towards listing on Nasdaq First North Growth Market Denmark. The strategy presented in connection with the IPO process has three focus areas; further development of the SaaS solutions MARS and Min Sag, accelerated sales of the two SaaS solutions, and maintenance of a sound foundation in the business of data analysis.

The first half of 2020/21 has been extremely exciting for Dataproces, both with the increased exposure in the IPO process and with the major strategic changes we are in the process of implementing. We at Dataproces have a set of values ​​rooted in the logic of the data and for us it is completely natural to build tools that are based on the logic of the data. This includes a number of software solutions, which we make available as work tools for the skilled employees in the municipalities, so that they themselves can improve the administration based on the logic of the data. Based on the result of the half-year, we can also state that the municipalities accept our tools and technology - which is reflected in an increase of SaaS, of just over 65% in the period measured compared to the same period last year.

 

We are extremely pleased and proud of the positive reception we have received from the shareholders and the trust shown in Dataproces. It emphasizes that both the decision on listing and the choice of strategy have been the right one for our future growth.

We have created a satisfying result giving these times of COVID-19, the organizational features in connection with IPO and the phasing in of the strategy with a focus on SaaS. At the same time, we have further developed our SaaS solutions, and have a portfolio of strong tools, the most prominent of which are Min Sag and MARS. Our main focus is now on accelerating sales efforts and preparing for an exciting 2021.

Dataproces maintains the expectations for the financial year as announced in the IPO process. The year is thus expected to land at around DKK 35 million. DKK in revenue and EBITDA of approx. 2.2 million DKK - including IPO costs of expected approx. 4.0 million DKK. In relation to expectations, we are at approximately the same level this year as last year at the same time - which is partly due to the IPO process' impact on the organization and partly to pressure on our customers due to the COVID-19 restrictions. However, we can state that the projects in the pipeline will be postponed - not canceled. This causes a strong pipeline, where we expect a ‘ketchup effect’, which combined with a strong effort will contribute to fulfilling our goals for the financial year 2020/21.

I look back on this interim six-month period with a heavy pressure due to COVID-19, a large effort related to the IPO process and a pressure on our sales caused by the shutdown of municipalities, which have resulted in extra administrative tasks for the municipality. We’ve got well through this difficult time given a strong management team, skilled and adaptable employees and a visionary board – I give my biggest thanks to all of you. I would also like to thank all the shareholders for their trust and for embarking the upcoming journey with Dataproces."

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Attached Interim Financial Report is in Danish.

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Statements about the future

This report contains statements about the future - including statements about Dataproces Group A/S' future operating results, financial position, cash flows, business strategy and future objectives. The statements are based on expectations or predictions that management deems reasonable at the time of publication of this report. Statements about the future are associated with risks and uncertainty as well as a number of factors, many of which will be beyond control of the company. This may mean that the actual development and the actual result deviate significantly from the expectations in the report. Without being exhaustive, such factors include general economic and business conditions, including market, competition and supplier conditions, as well as financial and regulatory conditions.