Spyrosoft Group with the highest quarterly net profit in history
- Spyrosoft Group with the highest quarterly net profit in history
- In Q4 2021, the revenues of the Spyrosoft Group amounted to PLN 54.4 million, which means an increase by 57% YOY. Thus, the value of consolidated revenues in 2021 amounted to PLN 174 million, increasing by 54% as compared to the consolidated revenues in 2020 and confirming the rapid growth of the Group.
- Consolidated EBITDA (i.e. operating profit increased by depreciation) in Q4 2021 amounted to PLN 11.1 million, which means an increase by 29% YOY.
- The Group’s net profit (attributable to the parent company) in the last quarter of 2021 amounted to PLN 6.3 million and was almost 60% higher than in the same period of 2020. This is the highest quarterly net profit in the history of Spyrosoft. Throughout 2021, the Group increased its net profit by 37.4%, to PLN 17.0 million.
- In Q4 2021, the Group acquired 15 new clients and increased its team of experts by 100 more people. At the end of December 2021, the total number of the company’s associates was 874.
“Strong, steady growth of the Group’s revenues is the result of the continuing high demand for IT services and the constantly growing client portfolio. The growth of net revenue results also from increasing the rates for clients, which we plan to continue also in 2022,” says Konrad Weiske, President of the Management Board of Spyrosoft S.A. “New clients come from all sectors: automotive, industry 4.0, medical, finance, media and entertainment, and geospatial services. In the fourth quarter of the previous year, we started the implementation of over 60 new projects for both new and existing clients,” adds Konrad Weiske.
At the end of 2021, Spyrosoft expanded the Group’s offer by adding services related to cybersecurity, which resulted in the signing of two new contracts.
Following the intensive increase in the number of projects, the number of associates of the Spyrosoft Group is also growing – at the end of December 2021, it amounted to 874 people. This is yet another quarter in which the average number of newly hired employees remains at a level of about 40 persons per month.
The Spyrosoft Group plans to raise that already high level in the coming quarters of 2022 by expanding its presence outside Poland and expanding the recruitment team.
“We are very pleased with the development of the new office in Szczecin, run by Spyrosoft Synergy. We have already employed 30 people and acquired 5 clients. We also decided to open a facility in the capital of Argentina – Buenos Aires. This location will not only allow us to access a large group of IT specialists, but also, due to the time zone, will facilitate everyday cooperation with a growing number of US clients,” says Konrad Weiske.
In Q4 2021, Spyrosoft’s consolidated revenues amounted to PLN 54.4 million, which means an increase by 57% in comparison to the previous year. At that time, the Group also recorded the highest quarterly net profit in history. It amounted to PLN 6.3 million, which means an increase by almost 58% YOY. Consolidated operating profit in Q4 2021 increased by 30% YOY, to PLN 9.5 million. During this period, EBITDA increased by 29%, to PLN 11.1 million.
The consolidated cost of the Group’s products and services sold in Q4 2021 amounted to PLN 31.9 million and was 56% higher than in the corresponding period of the previous year.
Consolidated general and administrative costs in Q4 2021 amounted to PLN 12.7 million, which means an increase by 104% YOY. This amount included PLN 3.6 million due to the separation of the part of the staff costs from the production costs, which related to the general and administrative costs. This reduced the production costs by PLN 3.6 million and increased the general and administrative costs by the same amount. These costs will be reported in the future in the same manner.
Ignoring the impact of the change in the recognition of costs, general and administrative expenses would amount to PLN 9.1 million, which would mean an increase by 46% YOY. The YOY increase results, as in the previous quarter, from the base effect: during the pandemic period, the costs of support departments were reduced to the necessary minimum, while in 2021 these costs, treated as investments in human capital, were incurred in accordance with the budget assumptions and the company’s strategy.
Stable demand for IT services, a growing number of clients and high efficiency of recruitment processes are good prognoses for the upcoming periods.
Therefore, the management board of the Group is optimistic about the further increase in revenues and the number of associates – both through organic growth and through acquisitions of companies that complement the range of Spyrosoft services.
In mid-January 2022, Spyrosoft began negotiations on the acquisition of a controlling stake in a company offering software solutions. The investment decision will be made after completion of the due diligence process and negotiations, at the latest in the second quarter of 2022.
The Management Board recognizes the risk to the level of margins related to the growing pressure on wages resulting from both internal (rising inflation) and external (growing demand for specialists on a global scale) factors. Therefore, it continues the policy of increasing the quality of services provided and increasing rates accordingly, and opens and strengthens locations outside Poland. Investments related to foreign locations (Argentina, India, an office in one of the countries of central Europe) and new types of services (eCommerce, Customer Support) may cause a temporary reduction in operating profit in the coming quarters.
In December 2021, the prospectus submitted to transfer the quotations of Spyrosoft from NewConnect to the main market of the Warsaw Stock Exchange was approved. The debut on the main floor of the WSE will take place in the first quarter of 2022.
Selected consolidated financial results of the Spyrosoft Group:
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Spyrosoft is an international company from Wrocław that has been offering comprehensive software development services since 2016. About 86% of the company’s revenues come from contracts with foreign clients, mainly from Germany and the USA. The company cooperates with clients from 7 countries, whose diversified portfolio covers 6 specialized industries. The company has offices in Poland, the UK, Germany, Croatia, the United States, Argentina and India.
Last year, Spyrosoft was ranked #1 in Europe among technology companies in the Financial Times “FT1000: Europe’s Fastest Growing Companies” ranking. It was fifth in the overall ranking.
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