Columbus: A good start to 2024

This morning, Columbus reported its Q1 2024 results, showing a good start to 2024. In the quarter, revenue was DKK 444m, corresponding to a growth rate of 14% YoY (11% growth adjusted for acquisitions and currency), mainly driven by high growth rates in its Cloud ERP business lines, Dynamics and M3, of 17% and 15%, respectively. 

Across its key markets, the growth was strongest in the UK and Denmark. The UK market unit grew 65% (50% excluding the effect of the newly acquired company, Endless Gain), and the Danish market unit delivered 35% growth (26% excluding the acquisition of ICY security business in April 2023). Norway and the US were the most challenged markets with declines of -8% and -11%, respectively. 

In Q1 2024, EBITDA amounted to DKK 55m (DKK 35m adjusted for the M3CS legal case), corresponding to an EBITDA margin of 12.4% (7.9% adjusted for the M3CS legal case) compared to 10.0% in Q1 2023. Like other IT consultant companies, EBITDA was negatively impacted by the early Easter holiday in March, yet the EBITDA development was in line with Columbus’ expectations. Efficiency was 62% in Q1 2024, slightly below 64% in Q1 2023 (Columbus has adjusted its calculation methodology of the efficiency KPI). 

Strategically, Columbus also highlights that the company has signed new customers in the Life Science vertical. This is important as the vertical was formally introduced as a new focus vertical in the 'New Heights' strategy. Another highlighted focus in the Q1 report is Columbus' efforts to accelerate the expertise within PowerPlatform and AI (Microsoft Copilot) which is important in relation to the company's relevance in the Dynamics business line.  

Columbus maintains its financial expectations for 2024, which is an organic revenue growth in the range of 8-10% and EBITDA margin in the range of 9-10%.  

Read the full Q1 2024 report here: https://ir.columbusglobal.com/news-releases/news-release-details/interim-report-q1-2024

On Wednesday 15 May at 11:00, Columbus’ CEO & President Søren Krogh Knudsen and Group CFO Brian Iversen will present the strategic and financial results and answer questions from the audience. Sign up and submit your questions via this link: https://www.inderes.dk/videos/columbus-presentation-of-q1-report-2024

Disclaimer: HC Andersen Capital receives payment from Columbus for a Digital IR/Corporate Visibility subscription agreement. /Kasper Lihn 11:20, 8 May 2024.