Consolidated revenues of the Spyrosoft Group in the second quarter of 2021 amounted to PLN 39.1 million, 49% more than in the previous year. Their level was 10% higher than in the first quarter of 2021.

“The trend related to the growing demand for IT services is still a key factor in the growth of the Spyrosoft Group, and the predicted continuity of that trend allows for optimistic planning for the next quarters of 2021,” says Sebastian Łękawa, member of the Spyrosoft Management Board.

In the second quarter of this year, the Spyrosoft Group acquired 18 new clients from the following industries: automotive, financial services, HR, media and entertainment, industry 4.0 and telemedicine. The second quarter of 2021 had the historically best result in terms of the number of new clients. Currently, the Group supports 84 partners, implementing a total of 178 projects for them.

Among the new customers, there is a client for whom the company is implementing a project in the field of digitization of board games. Spyrosoft engineers are working on electronic pawns in blockchain technology and a digital cube. These will be linked to the digital platform via a control unit that will communicate with the game board and send information to the platform.

In the financial industry, Spyrosoft has partnered with a global investment fund and obtained an order to develop a tool for integrating and reporting globally dispersed information, so that the users have easy access to reports and visualization of financial data.

In the automotive industry, Spyrosoft has acquired a new client, whom it advises on the implementation of the requirements of Automotive Spice. For another client from this sector, the company’s specialists are working on software for the device, which, when connected to a vehicle, will collect data, analyze it and send it to the cloud.

The Group is dynamically increasing the number of associates, both in Poland and in foreign markets. In the second quarter of 2021, 79 new people joined the Spyrosoft team, thus increasing the total number of specialists cooperating with the company to 673.

Due to the constantly growing number of clients and projects, by the end of 2021, the company plans to increase employment in the entire Group to at least 800 specialists. It also runs internship programs and educational courses that involve a growing number of people outside of Spyrosoft, as well as current employees, interested in a career change. Spyrosoft plans to further increase expenditure on the training and development of its employees.

The consolidated cost of the Capital Group’s products and services sold in Q2 2021 amounted to PLN 27.8 million and was 61% higher compared to the same period last year. The higher rate of cost growth compared to the rate of revenue growth YOY results, as in the previous quarter, from the base effect: in 2020, in connection with the outbreak of the pandemic, the company implemented measures aimed at reducing costs without reducing employment, for fear of an economic downturn in the economy. The increase in costs in the second quarter of 2021 is in line with the Group’s budget assumptions for 2021.

Consolidated operating profit for the period from April to June 2021 decreased by 8.8% YOY to PLN 4.3 million. On the other hand, the net profit was in the second quarter of this year. PLN 3.1 million, which means a decrease by 19.6% YOY.

“Due to the pandemic, in the first half of 2020, we froze some expenses, and as a result, we earned a higher profit. Now, these expenses had to be un-frozen, which is the reason behind the decrease. Also, the direct costs are growing from quarter to quarter – primarily the cost of employee salaries – but it is in line with the assumed budget and was expected by the company,” says Sebastian Łękawa.

“The distribution of margins throughout the year is not identical, and the fluctuations in the profit level are in line with what we planned in the budget. Nevertheless, we see potential in the growing demand for IT services, which, in the long term, will allow us to gradually increase the rates for our services,” he adds.

In June, by a resolution of the General Meeting of Shareholders, it was decided to introduce Spyrosoft shares to trading on the Warsaw Stock Exchange. The debut on the WSE main market is planned for the current calendar year.

Selected consolidated financial results of the Spyrosoft Group:

PLN  Q2 2021 Q2 2020 Change (%)
Net revenues 39,107,137 26,214,413 +49.1
EBITDA 5,857,000 6,033,000 -2.9
Operating profit 4,310,443 4,724,159 -8.8
Net profit 3,078,933 3,828,056 -19.6

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 the UK, Germany and the USA. The company cooperates with clients from 6 countries, whose diversified portfolio covers 6 specialized industries. The company has offices in Poland, the UK, Germany, Croatia, the United States and India.

This year, Spyrosoft was ranked #1 in Europe among technology companies in the Financial Times “FT1000: Europe’s Fastest Growing Companies” ranking.

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