Continued growth and increased dividendsPublished 07 Feb 2023
Knowit has had a stable end to the year with sound sales growth. During the quarter, the proportion of subconsultants in some larger assignments has increased compared with a year ago, which affects the EBITA margin negatively. Net sales during the quarter have increased by 25.2 percent, combined with an adjusted EBITA margin of 9.1 perecnt. Net sales were SEK 1,972.9 (1,575.9) million and the EBITA result, adjusted for acquisition and integration costs, was SEK 179.3 (181.1) million. Net sales for the full year 2022 increased by 42 percent to SEK 6,833.8 (4,811.8) million. Overall, Knowit is seeing high demand for digitalization competence on all Nordic markets. The Board proposes increased dividends of SEK 7.50 per share (7.00).
“I am proud to be able to conclude that Knowit has closed out the year well, despite increasing uncertainty regarding macroeconomic developments. Our clients appreciate our breadth and capacity to deliver specialist competence and support of their digitalization processes throughout the Nordic region. We are seeing continued high demand in all four business areas and are growing on all markets. Still, we can see that some clients are more cautious than a year ago and the start-up time for new projects is somewhat longer. As a result, we have increased our focus on sales activities and decreased investments in recruitment, a natural development on a more uncertain market,” says Per Wallentin, President and CEO.
The business area Connectivity has a continued positive trend with sound growth and improved profitability in both Sweden and Poland. Net sales have grown by 25.3 percent and the EBITA margin has increased to 12.1 percent. During the end of 2022, the business area Experience has expanded its offer through the operations in Poland, which opens for new discussions with clients and makes Knowit even more relevant. In the business area Solutions, the share of subconsultants has increased compared with a year ago, contributing to positive revenue development, but with a negative impact on the margin.
Knowit’s fourth business area, Insight, has continued its efforts to broaden and strengthen its offer in management consulting by acquiring the companies Ascend and Ionic, which both contribute with a very positive development. The work to counter a negative trend, mainly in Finland, has shown good results at the end of the year. Knowit now has more than 500 management consultants in the Nordic region, making it one of the leading players on the market.
“In the past year, Knowit has advanced even further as one of the Nordic region’s leading suppliers of projects that help companies and organizations in the digital transformation. We are trusted on the market and digitalization is high up on the agendas of our clients even in a weaker economic climate. This suggests that 2023 will also show a positive development for Knowit,” says Per Wallentin.
For more detailed information on the results of the first quarter, please see the Interim Report available on the website and attached to this press release.
Presentation of year-end report
Knowit will offer a presentation of its year-end report for January–December 2022 on February 7 at 10 AM. The presentation will be held in English. President and CEO Per Wallentin and CFO Marie Björklund comment on the results and answer questions.
Link to audiocast: https://www.investis-live.com/knowit/63b6f5e8d426f40c00068ca6/jarve
Phone number to audiocast:
Denmark (Local) 89 87 50 45
Finland (Local) 075 3252542
Norway (Local) 81 503 308
Sweden 0200 123 717
Sweden (Local) 010 884 80 16
United Kingdom 0800 640 6441
United Kingdom (Local) 020 3936 2999
United States 1 855 9796 654
United States (Local) 1 646 664 1960
Others +44 20 3936 2999
Pin code: 494305
No advance notification is necessary. After the presentation, a recording of the webcast will be available at https://www.knowit.eu/investor-relations/reports--presentations/
The information contained herein is such as shall be made public by Knowit, in accordance with the EU Market Abuse Regulation and the Securities Market Act. This press release was made public through the agency of President and CEO Per Wallentin, at 7:30 AM CET on February 7, 2023.