Organic growth and EBITDA margin increase in a year of transition
2021 was a year of transformation for Columbus where we reached important milestones while delivering organic revenue growth of 5%. It was the first year of the Focus23 strategy where we initiated major changes to the operation to focus and simplify the business and increase operating efficiency to move into a position as trusted digital advisor”, says Chairman of the Board, Ib Kunøe.
Performance highlights for 2021
- The Columbus Group delivered a revenue of DKK 1,482 corresponding to a growth of 5%, mainly driven by:
- Top line growth in most Business Lines where Digital Commerce, Data & Analytics and Customer Experience & Engagement delivered double digit growth numbers
- Columbus Norway with a revenue growth of 47%
- Service revenue increased by 7% to DKK 1,267m
- Reported EBITDA grew by 8% to DKK 109m providing an EBITDA margin of 7.4%, mainly driven by:
- Strong development in Norway
- Improvement in the continuing business in the US
- Product revenue declined by 3.9% to DKK 215m
- Recurring Revenue improved by 12.2% to DKK 319m, constituting 22% of total revenue
- Result for the year after tax increased to DKK 61m, a growth of 158%.
- Cash flow from continued operations was negative DKK 109m. The primary reason for the decline is an instalment of bank loans of DKK 100m
- Equity increased by DKK 29m since 31 December 2020, primarily due to the positive net result. With a total equity of DKK 741m, Columbus has a solvency of 58% (2020: 43%)
Key strategic milestones during 2021
In summary, we reached important strategic milestones during 2021:
- New CEO & President for Columbus, Søren Krogh Knudsen joined Columbus in June 2021
- Divestment of To-Increase and Columbus’ Microsoft Dynamics US SMB Business Unit
- Completed a comprehensive strategic acceleration program
- Implemented a new global customer-centric operating model
- Implemented new global ERP platform
- Launched common company values
Exiting the Russian market
With a part of Columbus’ business in Russia and Ukraine, Columbus is impacted by Russia’s invasion of the sovereign state of Ukraine.
Columbus has with effect from 3 March stopped new sales and hiring in Russia, but continues to serve existing contracts. Columbus will respect all present and future sanctions.
Columbus is currently investigating various options for how to exit the Russian market.
Outlook for 2022
2022 will be the first year for Columbus to operate in the new global organizational structure with global Business Lines and local Market Units. The new structure will ensure the foundation to streamline operations in order to improve efficiency and profitability.
Based on the financial performance in 2021, current order book and pipeline forecast, our guidance for full-year 2022 is as follows:
- Revenue is expected to be in the range of DKK 1,525m – 1,625m corresponding to an organic growth of 8% to 15%, respectively, excluding Russia.
- EBITDA is expected to be in the range of DKK 120m –145m corresponding to a margin of 7.4% to 9.5%.
Contacts
Tine RasmussenCommunications DirectorColumbus
Tel:+4529690677tra@columbusglobal.comImages
About Columbus Global
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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Latest releases from Columbus Global
Columbus surpasses growth expectations13.3.2024 09:12:57 CET | Pressemeddelelse
Columbus surpassed its organic growth expectations in 2023, delivering growth of 11%, and 15% adjusted for currency and acquisition. The growth is expected to continue. The Company has set new goals for the future, aiming to continuously grow the top line by 10% annually and improve profitability to an EBITDA margin of 15% by the end of 2026.
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
Columbus makes offer to acquire UK-based e-commerce consultancy30.11.2023 09:58:12 CET | Pressemeddelelse
Columbus A/S has submitted a conditional offer to acquire Endless Gain Ltd, a leading conversion rate optimization consultancy (CRO) focused on enhancing the digital customer experience for the UK retail industry
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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