Innofactor as an Investment

Leading Nordic Provider of Digitalization and Cloud Solutions

Innofactor is a leading Nordic provider of digitalization and cloud solutions. Innofactor has Microsoft Ecosystem’s leading expertise and the most comprehensive offering in the Nordics. Innofactor has over 600 eager and motivated top professionals in Finland, Sweden, Denmark and Norway. Innofactor serves over 1,500 commercial, public, and third sector organizations. In 2012 to 2016, the annual growth of Innofactor’s net sales has been approximately 28%. The Innofactor Plc share is listed in the technology section of the main list of NASDAQ Helsinki Ltd.

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January–June 2017 in brief:

  • The net sales were approximately EUR 35.0 million (2016: 29.8), which shows an increase of 17.3%.
  • The operating margin was approximately EUR 2.0 million (2016: 2.0), which shows an increase of 2.6%.
  • The operating profit was approximately EUR 687 thousand (2016: 752), decreasing by 8.6% due to increased write-offs related to acquisitions, in accordance with IFRS 3, resulting in a decrease of EUR 1,014 thousand (2016: 910).
  • Innofactor received several significant orders during the first half of the year. For example, the Unemployment Insurance Fund (TVR) for approximately EUR 1.0 million, the Hospital District of Helsinki and Uusimaa (HUS) for approximately EUR 1.8 million, IF Metall (in Sweden) for approximately EUR 0.6-4 million, and a Finnish service company for approximately EUR 0.5 million.
  • The actions for improving effectiveness of operations, related to the Lumagate companies, have had the desired positive effect on the operating margin, especially in Norway.
  • The business operations in Denmark have not improved in the desired manner and, thus, the Country Manager in Denmark for now will be Per Bendix Olsen, who will also continue as the director of Innofactor's Nordic public administration business.
  • Innofactor's Executive Board has a new member, Vesa Syrjäkari, whose special goal is improving the Group's profitability.

April–June 2017 in brief:

  • The net sales were approximately EUR 17.5 million (2016: 15.2), which shows an increase of 14.6%.
  • The operating margin was approximately EUR 0.9 million (2016: 1.1), which shows a decrease of 18.5%; the weaker than expected profitability was contributed to by the lower than expected net sales and the fact that the results from the Danish business operations were significantly less than expected.
  • The operating profit was EUR 200 thousand (2016: 446), decreasing by 55.2% due to increased write-offs related to acquisitions, in accordance with IFRS 3, resulting in a decrease of EUR 507 thousand (2016: 455).

Investor Relations

Sami Ensio
President and CEO
sami.ensio@innofactor.com
+358 50 584 2029