Columbus Global

Annual Report 2020: Satisfying result in a challenging year

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Today, Columbus has published the annual report for 2020 - a year where the company demonstrated the ability to act in the changing market conditions. Revenue decreased by 6% but with a rapid adjustment of the cost base, its was possible to increase normalized EBITDA margin to 7.3%. 2020 was also the year, where we launched our new growth strategy, Focus23. The new strategy focuses on digital advisory of larger customers in key markets and consequently it was decided to divest the software company To-Increase and the Private Cloud business.

Despite the global pandemic, Columbus delivered a 2020 result in line with expectations. We are pleased with the results, especially seen in the light of the improved normalized EBITDA margin to 7.3%. Our Dynamics Sweden business and our Norwegian subsidiary have shown significant growth in 2020, and in addition Cloud services and Columbus Care have also shown progress. The launch of our new strategy, Focus23, was an important milestone in 2020, and the adaption of the business with, among others things the divestment of To-Increase was the first step towards simplifying the business with a great focus on advisory of larger customers. During Q4 2020, we saw an increase in revenue and look forward to an exciting and more normal 2021”, says Chairman of the Board, Ib Kunøe.

Group revenue declined by 6% in 2020 compared to 2019, however covers a positive development in several areas where among other things, cloud revenue grew by 41%, Columbus Care grew by 12% and recurring revenue grew by 4%. Normalized EBITDA declined by 7%, while normalized EBITDA margin increased from 7.1% to 7.3%.

The divestment of the software company To-Increase impacts corporate equity by approximately DKK 671m. In addition, Columbus divested its Private Cloud business in line with the desire to simplify the business and focus on digital advisory for larger customers in key markets. With Focus23, Columbus will unleash the full growth potential and gradually increase organic growth to a minimum 10% annually from 2023.

New CEO for Columbus will be announced in near future


Columbus’ Board of Directors is in process of finalizing the recruitment of the company’s future CEO and will in the near future announce the leader of Columbus’ continued development.

Performance highlights for 2020:

  • Reported revenue declined by 6%, amounting to DKK 1,655m mainly due Covid-19
  • Columbus Care grew by 12% to DKK 152m
  • Cloud Services grew by 41% to DKK 59m, due to continued cloud conversion
  • Recurring Revenue improved by 4%, constituting 25% of revenue
  • Normalized EBITDA declined by 7% to DKK 117m, and normalized EBITDA margin increased by 2% to 7.3%
  • Profit after tax increased from DKK -18m to DKK 55m

Other highlights

Focus and simplicity:

  • New strategy, Focus23, launched 12 November 2020
  • To-Increase software business sale completed for a price (Enterprise Value) of EUR 113m
  • Divestment of Columbus’ private cloud business ​
  • Closing of Spanish entity

 

Outlook for 2021

Based on the financial performance in 2020, current order book and pipeline forecast, our full year guidance for 2021 for the continued business is as follows:

  • Revenue is expected to be in the range of DKK 1,650m and DKK 1,800m.
  • EBITDA is expected to be in the range of DKK 125m and DKK 150m.

Related links:

Read the cover letter here

Read the annual report here

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Information om Columbus Global

Columbus Global
Columbus Global
Lautrupvang 6
2750 Ballerup

https://www.columbusglobal.com

Columbus is a global IT services and consulting company specialized in digital transformation. Our more than 1,500 digital explorers collaborate with our customers in the manufacturing, retail & distribution, and food & process industries. We advise, implement and manage business critical solutions within Strategy & Change, Customer Experience, Digital Commerce, Data & Analytics, Application Management and Cloud ERP. Headquartered in Denmark, we have offices and partners worldwide - delivering locally on a global scale

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Flere pressemeddelelser fra Columbus Global

New analysis of Columbus’ financial results for Q3 2023 and new strategy; New Heights4.12.2023 14:22:29 CET | Nyhed

The stock analysis firm, Aktieinfo, has just published an analysis of Columbus’ results for Q3 2023 and the newly published strategy - New Heights. The analysis concludes, among other things, that: "After ten consecutive quarters of growth and maintaining guidance for 2023 with organic growth expected to be between 8-12% and an EBITDA margin of 7.4-9.0%, Columbus concludes the strategic plan Focus23. All goals have been achieved. Now, new ambitious yet achievable goals are set for the period 2024-26, anticipating an annual average organic growth of 10% and a significant improvement in the EBITDA margin to 15% by 2026. Columbus is thus taking a step towards 'New Heights' for revenue, earnings, and stock prices." The analysis can we found here (in Danish): https://ir.columbusglobal.com/static-files/7dc8b8dd-b686-4a70-8dc9-5b93f513aaa5

Strong Q3 Interim Report, new ambitious growth targets for 2024-2026 and new focus on Life Science15.11.2023 09:18:19 CET | Pressemeddelelse

In the third quarter of 2023, Columbus once again delivered impressive organic top-line growth of 15% (excluding acquisitions and currency), and the increase in operating profit (EBITDA) was as much as 28%. Columbus has created a solid foundation for the upcoming strategy period – New Heights – which in particular will focus on boosting profitability with an EBITDA margin of 15% by the end of 2026. Columbus expects 10% compounded annual growth in 2024 – 2026.

New analysis of Columbus’ financial result for Q2 2023 published by Aktieinfo31.8.2023 12:16:10 CEST | Pressemeddelelse

The analysis concludes, among other things, that: Columbus delivers what is promised. Growth adjusted for acquisition and currency was achieved with 16% in the second quarter (19% adjusted for currency and including acquisitions) and 14% in the first half of the year. In the second quarter, Columbus managed to invoice 70% of the consultants' hours. This testifies increased efficiency, which is one of the goals of the Focus23 strategy. With the execution of the Focus23 strategy, Columbus appears stringent and focused on servicing the core customer group. The analysis can we found here (in Danish): https://ir.columbusglobal.com/static-files/96127943-4e58-4e34-97be-3790aa0f0a06

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