Nixu Oyj: Nixu Corporation: Half-Year Financial Report For January 1 - June 30, 2023
Stock Exchange Release on August 10, 2023 at 8:30 AM EEST
Growth despite the challenging macroeconomic situation
Highlights for January-June 2023The company extended the maturity of its financing.
Key Figures
EUR thousand 1 Jan-30 Jun 2023 1 Jan-30 Jun 2022 1 Jan-31 Dec 2022
Revenue 31,918 28,580 60,222
Profit/loss for -1,058 -757 42
the period
Earnings per '-0.14 `-0.10 0.01
share (EUR)
EBITDA -177 377 2,409
EBITDA, % of net '-0.6% 1.3% 4.0%
sales
Adjusted EBITDA1 1,614 352 2,480
Adjusted EBITDA, 5.1% 1.2% 4.1%
% of net sales1
EBIT -1,084 -553 564
EBIT, % of net '-3.4% '-1.9% 0.9%
sales
Adjusted EBIT1 707 -578 634
Adjusted EBIT %1 2.2% '-2.0% 1.1%
1 Adjustment
items are
material items
outside the
ordinary course
of business,
which are
costs/income
related for
example to
reorganization
and business
combinations.
January-June
2023 EBITDA
included the non
-recurring items
EUR -1,791 (+25)
thousand.
EUR thousand 30.6.2023 30.6.2022 31.12.2022
Equity ratio, % 28.0% 30.6% 30.6%
Net interest 3,038 3,879 3,199
-bearing debt
Net gearing, % 26.1% 32.4% 25.2%
Teemu Salmi, CEO of Nixu:
The first half of 2023 shows continued profitable growth for Nixu despite a very challenging and tough macroeconomic environment. Revenue grew 12% for the group, amounting to EUR 31.9 (EUR 28.6) million and adjusted EBIT ended at EUR 707 (-578) thousand.
The challenging macroeconomic situation is portrayed by longer decision times by our clients, increasing uncertainty for Nixu. This was mentioned already when reporting our Q1 result this year. Despite this fact, our orders in Q2 ended up on par year-over-year, i.e., EUR 15.5 (15.8) million, while the same numbers for H1 were EUR 30.3 (30.9) million. Book-to-bill ratio in H1 ended at 95%, while the same number for Q2 isolated was 101%, showing that there is a positive change during the second half of H1; resulting in a slightly positive market development sentiment for H2 of 2023.
Looking at the different business segments and the mix of sales during 1H we see that all segments are growing year-over-year:
Nixu Certification growing by 39%.
Managed Services growing by 37%.
Professional Services growing by 4%.
Identity and Access Management growing by 1%.
Managed Services and recurring revenue streams are growing steadily as a proportion of the total revenue, which is one of the cornerstones of the Next Nixu strategy launched earlier this year.
The underlying development and need for cybersecurity services are there. The Nixu sales is developing favorably, apart from Sweden, and the market maturity for outsourcing cybersecurity operations is increasing. This together with increasing cybersecurity regulation and evolving cyber threats, are factors for our clients to enhance their cybersecurity posture and increase investments.
From a market perspective Finland is showing a growth of 17%, Denmark 16% and Benelux 69%. Sweden declined by 22%.
During the first half DNV announced a public tender offer process to acquire all outstanding shares and stock options in Nixu. At the end of June the result was that 98.3 percent of all outstanding shares and stock options were acquired and hence a de-listing process of Nixu from the Nasdaq stock exchange could be started. This process is now initiated and will be completed in due course.
Nixu is well positioned to continue the execution of the Next Nixu strategy and I would like to take the opportunity to thank all Nixu employees, our clients, and investors for their continued trust.
Financial Guidance for 2023
Nixu estimates its revenue to be EUR 66-70 million and profitability to improve.
Webcast
Analysts, investors and the media will be offered the opportunity to listen to a short summary about the result and ask questions by participating in an English-language webcast to be held on Thursday, 10 August 2023 at 10.00 a.m. Questions will be answered by CEO Teemu Salmi and CFO Janne Kärkkäinen.
Nixu Corporation