Innofactor as an Investment

Innofactor Plc published its half-yearly report for January 1–June 30, 2020 (IFRS) on July 28, 2020: Innofactor's net sales grew on Q2 and H1, and the operating margin reached record highs as regards the comparison periods.


The Leading Driver of the Modern Digital Organization in the Nordic Countries

Innofactor is the leading driver of the modern digital organization in the Nordic Countries for its over 1,500 customers in commercial, public and third sector. Innofactor has the widest solution offering and leading know-how in the Microsoft ecosystem in the Nordics. Innofactor has over 500 enthusiastic and motivated top specialists in Finland, Sweden, Denmark and Norway. In 2015–2019, the annual growth of Innofactor's net sales has been approximately 10%. The Innofactor Plc share is listed in the technology section of the main list of NASDAQ Helsinki Oy. #ModernDigitalOrganization #PeopleFirst #CreatingSmiles

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Half-Yearly Report for January 1–June 30, 2020 (IFRS): Innofactor's net sales grew on Q2 and H1, and the operating margin reached record highs as regards the comparison periods

 

April–June 2020 in brief:

  • The net sales were approximately EUR 16.8 million (2019: 16.7), which shows an increase of 0.6%
  • The operating margin was approximately EUR 2.1 million (2019: 1.1), which shows an increase of 83%
  • The operating profit was EUR 0.9 million (2019: 0.2), which shows an increase of 479%
  • The order backlog at the end of the review period was EUR 56.9 million (2019: 44.2), which shows an increase of 29%
  • Innofactor got several significant orders in the first quarter, for example,
    • The framework agreement for The Employment Fund, approximately EUR 3–5 million (not yet in the order backlog at the end of the review period)
    • The Microsoft Office 365 and Microsoft SharePoint application management services for VTT, approximately EUR 2.5 million
    • Digitalizing the quotation process for a large manufacturing industry company, approximately EUR 1.7 million
    • Further development for a Swedish trade union, approximately EUR 1.0 million (not yet in the order backlog at the end of the review period)

January–June 2020 in brief:

  • The net sales were approximately EUR 33.9 million (2019: 32.8), which shows an increase of 3.4%
  • The operating margin was approximately EUR 4.0 million (2019: 2.0), which shows an increase of 101%
  • The operating profit was EUR 1.7 million (2019: EUR 0.1), showing growth of 2,602%.

Q2 2020 result interviews

Innofactor's CEO Sami Ensio's result interviews by Evli Research's Managing Director Jonas Forslund and Inderes' analyst Joni Grönqvist after Innofactor's Q2 2020 result.

 

Innofactor Q1 interview with CEO Sami Ensio - Evli (In English, 8 min)

Innofactor Q2 interview with CEO Sami Ensio - Inderes (in Finnish, English subtitles, 9 min)

CEO's Review

July 28, 2020

Gaining a strong upper hand on the coronavirus on Q2 – the negative effects of the epidemic on business are still estimated to remain small overall 

The net sales in the second quarter of 2020 were EUR 16.8 million, which shows an increase of 0.6 percent compared to the previous year. The operating margin (EBITDA) grew by 83 percent from the previous year and was EUR 2.1 million (12.3 percent of the net sales). In the second quarter, the order backlog grew to a record-breaking amount and was EUR 56.9 million at the end of the quarter, which shows an increase of 28.8 percent compared to the corresponding time in the previous year.

The net sales in the first half of 2020 were EUR 33.9 million, which shows an increase of 3.4 percent compared to the previous year. The net sales grew in Finland, remained approximately on last year's level in Norway and Denmark, and decreased in Sweden. The operating margin (EBITDA) grew by 101.4 percent from the previous year and was EUR 4.0 million (11.9 percent of the net sales).

The negative effects of the coronavirus epidemic remained smaller than estimated in the second quarter. The coronavirus situation did not affect Innofactor's ability to produce services for its customer's. On the contrary, the productivity of the employees partly even improved due to fewer sick leaves. All of the Group's employees worked remotely in March 12–June 25, 2020, after which the remote work recommendation has been extended on the country level in Sweden.

The corona epidemic lowered the net sales of the second half in Sweden, Norway and Denmark. However, in these countries, country level adjustments related to the coronavirus were utilized well to lessen the effects on the operating margin. In the Nordic countries in Q2, Innofactor received a total of approximately EUR 0.3 million in support from the states due to the coronavirus.

The goal of increasing the net sales during the rest of the year is supported by the record high order backlog and the potential of increasing the invoicing rate. However, our estimate is that the coronavirus epidemic will have a small effect on the net sales and profitability of the rest of the year on the Group level. We estimate that it is possible that we may not achieve comparable growth and profitability in the third quarter as we did in the first and second quarters. The growth and profitability in the fourth quarter are largely based on whether there will be a second wave of the coronavirus epidemic in Finland, Norway and Denmark, how the coronavirus epidemic can be managed in Sweden, and what kind of effects the epidemic will have on companies' willingness to invest in IT services near the end of 2020.

In short term, the coronavirus epidemic will affect Innofactor mainly, if our customers scale back their purchases or move their acquisitions to a later date. We estimate that the negative effects of the coronavirus epidemic in Innofactor's business remain small for the following reasons:

  • A significant part (over 50 percent) of Innofactor's business consists of recurring services, and the customers' purchase behavior does not affect these much
  • We mainly offer business critical systems for our customers, and customers typically continue their development and maintenance even in unusual conditions
  • Approximately half of our customer base consists of public administration and third sector customers, who are affected more slowly by the Coronavirus and who also consider it sensible to proceed with their purchases in order to keep the society going.
  • Our business customers are mainly from fields, such as industry, which are not so strongly and quickly affected by the Coronavirus as certain other fields.
  • Our order backlog is very strong, and if needed, we are able to transfer personnel between projects to some degree and make our deliveries faster, which means that a loss of an individual customer will not necessarily affect our business
  • We have been able to quickly develop new services for the Coronavirus epidemic situation for our customers, such as the Remote Work Acceleration Pack (www.innofactor.com/remote-work), which we believe will bring some replacement net sales to compensate for any losses
  • The societies in the countries in which we operate are granting many forms of relief, flexibility and support, which also helps Innofactor's profitability and financing

In the long term, we believe that the digital step the society is taking due to the coronavirus epidemic will increase Innofactor's possibilities to grow its business operations. The abilities of a modern digital organization will be even more important for our customers in the future – also when preparing for the possible second wave of the coronavirus. It is also possible that some of our customers will transfer some of their operations back to the Nordic countries in order to be closer to their customers. This would have a favorable effect as regards the business model of Innofactor's chosen strategy based on Nordic specialists. We also believe that Microsoft's position has strengthened during the coronavirus epidemic. We believe in our chances of increasing our market share in the Nordic countries.

In May, Innofactor made an agreement with the current owners of Arc Technology Oy concerning an arrangement in which Innofactor will increase its ownership in the HRM system provider Arc Technology Oy to 100 percent by the end of 2020. The agreement is binding on all parties. Currently Innofactor owns 45.13 percent of the company and has control over the company. After the signing of the agreement, the operative functions of Arc Technology have been integrated alongside Innofactor's functions in whole during the review period. This provides us synergy benefits, and we can offer even better quality services to Arc Technology due to our larger resources supported by Innofactor's offering, processes and personnel. Arc Technology will increase Innofactor's annual net sales by approximately EUR 1 million.

Innofactor's vision is to be the leading implementer of digitalization in each of the Nordic countries. We believe even stronger in our chosen Nordic strategy and in reaching our long-term goals in the world after the coronavirus epidemic. Innofactor is still actively looking for new strategic partnerships. The Group’s goal is to grow both organically and through acquisitions. The coronavirus epidemic and the time after it may provide new and even surprising opportunities for this, and those may require fast actions. In view of this, we have drafted a separate plan, started to actively monitor the situation and, at the end of April, acquired EUR 3.0 million in additional funding in the form of a senior loan from a major Finnish pension insurance company to support our possible projects for gaining growth.

 

Sami Ensio
Innofactor's founder, major owner, and CEO

Business Environment

We believe the markets will grow in the long term – due to the Coronavirus, the markets are not expected to grow in 2020

Main forces affecting market changes and main trends of innovation are, for example, augmented and virtual reality, Internet of Things (IoT), artificial intelligence, robotics, blockchains, and quantum computing. Factors enabling these include transfer of software into the cloud, data analytics, social media, and mobility. Prevention of the climate change sets new requirements for both societies and organizations, but it also creates new business opportunities and speeds up innovation. The purchase habits of customers have changed as these business changes are taking place. Our customers expect their IT partner to focus more on business benefits instead of technology benefits. They want to get solutions that are ready for use without a need to make major customer-specific changes. Additionally, customers increasingly expect to purchase continuous services instead of large one-off projects.

We estimate that the IT service market in the Nordic countries grew by approximately 3–5 percent in 2019. We estimate that the IT service market will not grow in the Nordic countries in 2020 due to the financial hardships caused by the coronavirus epidemic. Our estimate is based on research institutes’ forecasts and our own outlook on markets.

In the long term, we believe that the digital step the society is taking due to the coronavirus epidemic will increase Innofactor's possibilities to grow its business operations. The abilities of a modern digital organization will be even more important for our customers in the future – also when preparing for the possible second wave of the coronavirus. It is also possible that some of our customers will transfer some of their operations back to the Nordic countries in order to be closer to their customers. This would have a favorable effect as regards the business model of Innofactor's chosen strategy based on Nordic specialists. We also believe that Microsoft's position has strengthened during the coronavirus epidemic. We believe in our chances of increasing our market share in the Nordic countries.

The competition in Microsoft-based solutions in the Nordic countries is fragmented. The first competitor group consists of large companies operating in all Nordic countries. These competitors sell a wide variety of IT solutions that corporations and organizations need, and they offer several competing technologies of which the Microsoft technology is one. The second competitor group consists of mid-sized companies that focus on a narrower solution area in the Nordic level and also offer several different technologies. The third competitor group consists of mid-sized companies operating mainly in a specific country and typically offering a wide variety of solutions using several competing technologies. The third competitor group consists of small companies operating only in their own country and focusing on a clearly defined solution area, technology and field of business.

Microsoft's fragmented partner network consisting of small and mid-sized companies offers us interesting possibilities for acquisitions. In acquisitions, we will probably focus on mid-sized companies operating in one country. With these, we will aim at expanding the coverage of our offering in a specific country and also possibly acquiring more cloud-based product and service business. Good reputation, fast and profitable growth, successful acquisitions, and entrepreneurial spirit will make us an attractive partner for reorganizations in the field. The coronavirus epidemic will probably increase reorganizations, if small and mid-sized IT service companies end up in financial trouble.

Mission, Vision and Strategy

Becoming the leading provider of digital transformation in each of the Nordic countries

We have made a strategic choice to focus on solutions implemented with or supported by Microsoft platforms, and we have achieved a leading position in the Nordic countries in this market. Going forward, our aim is to become the leading player in the digital transformation in each of the Nordic countries. Our long-term goal is annual growth of 20 percent, the majority of which will be achieved organically, along with profitability of approximately 20 percent.

Innofactor's mission:

Driving the #ModernDigitalOrganization

Innofactor's vision:

The leading provider of organizations' digital transformation in each of the Nordic countries

Innofactor's strategy for achieving this vision includes:

  • The best Nordic professionals in the Microsoft ecosystem
  • Highly productized cloud offering and managed services
  • A proactive, value-adding and flexible delivery model
  • Innovation creation with leading customers in selected industries 

Strategy and its realization in the review period

Innofactor’s vision is to be the leading provider of organizations' digital transformation in each of the Nordic countries (Finland, Sweden, Denmark and Norway). The long-term financial goal is to grow profitably by achieving an annual growth of approximately 20 percent, of which majority is intended to be achieved by organic growth, by achieving approximately 20 percent operating margin (EBITDA) in relation to the net sales, and by keeping the cash flow positive and by securing solid financial standing in all situations.

Innofactor’s net sales in the first half of the year were EUR 33.9 million (2019: 32.8), which shows an increase of 3.4 percent compared to the previous year. The net sales grew in Finland, remained approximately on last year's level in Norway and Denmark, and decreased in Sweden. The growth of the net sales was limited by the coronavirus epidemic, especially outside of Finland. The goal of getting the net sales to grow is also supported by the record-breaking order backlog of EUR 56.9 million (2019: 44.2). Innofactor has plans for actions to achieve the growth of 20 percent in the coming years. The effects of the coronavirus epidemic and Innofactor's strengthened financing position may also provide new possibilities for inorganic growth in the future. For this reason, Innofactor acquired EUR 3.0 million in additional funding in the form of a senior loan from a major Finnish pension insurance company.

In the review period, the operating margin (EBITDA) grew by 101.4 percent from the previous year and was EUR 4.0 million (11.9 percent of the net sales). As regards profitability, Innofactor was able to improve its performance substantially. Innofactor has plans for actions to achieve an operating margin (EBITDA) of 20 percent in the coming years. Possibilities for improving profitability can be found especially outside of Finland, where there have been significant challenges to the profitability especially during the coronavirus epidemic.

Innofactor’s operating cash flow in the review period of January 1–June 30, 2020, was EUR 6.3 million (2019: EUR 2.1 million) and the equity ratio at the end of the review period was 41.3 percent (2019: 39.7 percent). The strong operating cash flow and financial position support Innofactor’s strategic goal of profitable growth and securing solid financial standing in all situations.

Key Figures

2019

2018

2017

2016

2015

Net sales, EUR thousand

64,198

63,144

65,666

59,616

44,452

Operating profit before depreciation
and amortization (EBITDA), EUR thousand

5,089

-1,029

1,308

4,831

3,705

percentage of net sales

7.9%

-1.6%

2.0%

8.1%

8.3%

Operating profit (EBIT), EUR thousand

795

-3,872

-1,461

2,332

2,542

percentage of net sales

1.2%

-6.1%

-2.2%

3.9%

5.7%

Earnings before taxes, EUR thousand

12

-3,811

-1,579

1,920

1,935

percentage of net sales

0.0%

-6.0%

-2.4%

3.2%

4.4%

Earnings, EUR thousand

418

-3,462

-2,007

1,536

1,548

percentage of net sales

0.7%

-5.5%

-3.1%

2.6%

3.5%

Shareholders' equity, EUR thousand

22,145

21,303

24,764

22,501

24,534

Interest bearing liabilities, EUR thousand

16,853

15,418

14,228

16,701

9,219

Cash and cash equivalents, EUR thousand

963

258

910

902

843

Deferred tax assets, EUR thousand

5,602

5,602

5,668

5,760

6,704

Return on equity

1.9%

-13.8%

-5.3%

6.5%

6.6%

Return on investment

2.3%

-7.7%

-2.4%

6.4%

7.6%

Net Gearing

71.8%

71.2%

53.8%

70.2%

34.1%

Equity ratio

40.2%

41.2%

43.4%

35.8%

56.9%

Balance sheet total, EUR thousand

55,720

51,875

58,272

63,587

43,983

Research and development, EUR thousand

2,795

2,860

3,298

3,394

2,495

percentage of net sales

4.4%

4.5%

5.0%

5.7%

5.6%

Personnel on average during the year

534

591

610

532

409

Personnel at the end of the year

538

550

601

591

415

Number of shares at the end of the year

37,388, 225

36,188,225

36,188,225

32,901,377

33,453,737

Earnings per share (EUR)

0.0113

-0.0880

-0.0357

0.0467

0.0475

Shareholders' equity per share (EUR)

0.592

 0.589

0.684

0.684

0.733

Growth and Financial Targets

Annual net sales growth from 2015 to 2019 has been 10% on average.

 

Innofactor's long term financial goal is to grow profitably:

  • By achieving annual growth of about 20 percent, of which majority is intended to be achieved by organic growth
  • By achieving about 20 percent EBITDA in relation to the net sales
  • By keeping the cash flow positive and securing solid financial standing in all situations

The main actions for reaching the approximately 20 percent growth and 20 percent operating margin:

  • Focus on selected industries and solution areas (customer journeys) that provide the highest growth opportunities and allow us to best scale existing offering in the Nordics
  • Focus on current customers and cross sales to get a bigger share of wallet of customers' digital transformation budgets
  • Improving modern digital marketing and sales skills to achieve better and more cost-effective sales results
  • Focus on competence planning, recruiting and resource optimization across Nordics
  • Shifting revenues from projects and professional services toward products, IP-based and continuously managed services that support selected solution areas and industries
  • Strengthening continuously our specialists' professional skills and improving our leading offering in order for our customers to pay hour price above market average
  • Aiming to move to self-organized teams and to reduce organizational layers achieving better communication and faster decision making
  • Continuously improving our flexible value-adding delivery model minimizing number of non-invoiced hours and maximizing customer satisfaction

Customers

Innofactor's business operations were focused on Finland, Sweden, Denmark, and Norway. In January 1–June 30, 2020, approximately 66 percent of the net sales came from Finland, approximately 20 percent from Sweden, approximately 10 percent from Norway, and approximately 5 percent from Denmark. The net sales grew in the second quarter in Finland and Norway (in the local currency), in Denmark the net sales remained approximately on the last year's level, and in Sweden it decreased.

Of the net sales in January 1–June 30, 2020, approximately 44 percent came from commercial clients, approximately 39 percent from public sector clients, and approximately 17 percent from third sector clients. During the coronavirus situation, the significance of the public sector clients has been especially emphasized.

 

Distribution of net sales in January 1–June 30, 2020

distribution of net sales

 

Innofactor's net sales in the review period of January 1–June 30, 2020, came from the following sources:

  • approximately 44 percent from IT system delivery projects and consulting
  • approximately 32 percent from specialist work based on recurring service contracts, such as smaller customer-specific changes and further development of IT systems
  • approximately 20 percent from services based on recurring service contracts, such as SaaS, cloud and hosting services, and from software maintenance
  • approximately 5 percent from licenses, of which the share of licensing income to third parties was approximately 4 percent of the net sales

Innofactor’s 10 largest clients accounted for approximately 29 percent of the net sales during the review period January 1–June 30, 2020.

 

Get to know our customer stories 

Personnel

People First and a Smile on the Face Every Working Day

In line with our mission, we continue building Innofactor as a modern digital organization. We develop our operating models to support the daily work of our employees within a Nordic organization. Highly competent employees, good leading practices, self-organization and company-wide practices support Innofactor’s long-term goals. We have a principle of putting people first in everything we do. We want to create an inspiring and motivating work environment for our employees and also have fun while working.

Interim Report for January 1–March 31, 2020: The number of personnel in Innofactor grew slightly from the comparison period

 

Primarily, Innofactor monitors the number of active personnel. The number of active personnel does not include employees who are on a leave of over 3 months.

The average number of active personnel in April 1–June 30, 2020, was 546 persons (2019: 540), which shows an increase of 1.1 percent. At the end of the review period, the number of active personnel was 548 (2019: 538), which shows an increase of 1.9 percent.

At the end of the review period, the average age among personnel was 41.2 years (2019: 40.8). Women accounted for 28 percent (2019: 26%) and men 72 percent (2019: 74%) of the personnel.

Get to know our people!

Self-Organized Teams, Lighter Organization and Better Management

In 2019, work in Finland was mainly carried out under the new organizational model and in self-organized teams. The reduction of organizational layers has been reflected, among other things, in improved flow of information and agile teamwork at the customer interface. During 2019, Innofactor focused on supporting the organizational change and implementing new operating models for teamwork. With the new People Manager roles that are 100% focused on managerial duties, Innofactor has continued to invest in high-quality, people-centered leadership, with a focus on interactivity, timely communication and coaching. Self-organized teams are expected to be deployed in other countries in the future.

Good leadership is based on data-driven business and open communication. People need to know in real time what is going on in the organization. During 2019, we developed the Group’s internal reporting using the company’s Power BI capability. The development of reporting has been made possible by a common, Nordic Microsoft Dynamics 365 enterprise resource planning system.

Operating Models to Support Modern Work

Innofactor’s target is to build a company with Nordic integration that can help its customers to build a modern digital organization. In 2019, Innofactor continued development projects which create a basis for common operating models in the Nordic countries. Common systems, processes and culture support Innofactor’s strategic targets and co-operation between the countries.

We carried out a performance management process and employee satisfaction surveys in a uniform way in all Nordic countries in 2019. A new questionnaire was piloted to measure employee satisfaction, which better measured employee satisfaction in the current operating environment. Development discussions were held using uniform timetables and models.

The Nordic Leadership Day held in the spring created a framework for working with the values of Innofactor, and value-driven activities were made visible in everyday work at all levels of the organization during 2019. The strategy process was developed in such a way that the whole Innofactor’s personnel were able to provide feedback and ideas for the Group Executive Board’s strategy discussions.

Personnel Competence as a Foundation of Our Business

Innofactor Academy continued to actively train the personnel. The focus areas included training based on Microsoft technology, basic induction and tools related to project management, such as ITIL and SCRUM. Through Innofactor Academy personnel were trained both locally and at Nordic level.

In 2019, many of our employees renewed their Microsoft Most Valuable Partner (MVP) awards, and we also received new MVPs. Microsoft MVPs are technology experts who actively share their expertise in communities and want to be among the first to learn about new technologies. MVPs have a deep understanding of Microsoft products and services and an ability to combine a variety of platforms and products to solve problems in the real world.

Working Should Also Be Fun

Working at Innofactor should be meaningful but also fun. This is underpinned by good leadership and common working practices, but especially by top colleagues and a great team spirit. We organize recreational events for our personnel, both in teams and at the corporate level. The culmination of the year is the InSpirit event, where Nordic colleagues come together for new learning, good food, music and, above all, networking. We also have a Fun Club organized by the personnel, which offers joint recreational activities.

Remuneration and Engagement

The Board of Directors of Innofactor Plc decided in May 2019 on a share-based incentive plan for the Group’s personnel in order to commit personnel to the company. A total of 1,200,000 new shares were offered to the Innofactor Group’s personnel in the personnel issue. The personnel issue was fully subscribed. A total of 116 people gave an underwriting commitment and subscriptions were made in all countries where Innofactor operates: Finland, Sweden, Denmark and Norway.

Offering

We help our customers to build a modern digital organization

Our offering and delivery model are designed to deliver our customers long-term value by leveraging new technology and innovations in ways that take into account their current state and objectives.

Based on years of experience working at the forefront of digitalization with more than 1,500 private, public and third sector customers and the expertise of over 600 leading business and cloud technology professionals, we have developed a vision of a Modern Digital Organization. It's founded on a framework we're successfully using to help our customers take advantage of cloud technology and new innovations across their organization and operations. The approach is simple and effective, delivering quick, tangible results and paving the way for long-term customer relationships. We start with defining the big picture – helping our customers determine their current state, define their objectives and build a digitalization roadmap for their organization. We then continue our joint journey to build a modern digital organization leveraging the five areas of our framework. Innofactor offers leading solutions, services and products in each area, as well as an agile delivery model that helps our customers to successfully design, deploy and continuously develop new solutions.

Our solutions and services for building a modern digital organization

Our modern delivery model ensures effective deployment and adoption to maximize the lifetime value of new solutions

Our delivery model is based on years of experience in delivering both traditional IT projects as well as cloud services. It consists of five stages, each of which delivers our customers quick, tangible value. We offer our customers five productized delivery models, called Journeys, that are founded on our Modern Digital Organization framework. The value of our deliveries is based on not only helping our customers to design and implement a specific solution, but also supporting them in adopting it within their organization and evaluating its impact to their business processes and IT architecture. In our delivery model, we focus on providing managed services and continuous development of our solutions throughout their lifecycle.

read more about our solutions for modern digital organization

Acquisitions

In 2018 Innofactor made no acquisitions, but focused on integrating Cinteros AB, acquired in 2015, and the Lumagate companies, acquired in 2016, into the Innofactor Group. Our past acquisitions are as follows:

 

10 October, 2016
Innofactor signed a contract to acquire the entire share capital of the Lumagate group.
See Stock Exchange Release for more details.


22 December, 2015

Innofactor signed a contract to acquire the entire share capital of the Swedish company Cinteros AB.
See Stock Exchange Release for more details.


22 December, 2015

Finnish Arc Technology, which is focused on HR systems, bought Innofactor Plc's HRM (Human Resources Management) business.
See press release for more details.


31 December, 2013

Innofactor signed a contract to acquire the entire share capital of Enabling Group.
See Stock Exchange Release for more details.


30 September, 2013

Innofactor acquired Dynamic Team (company name Lainetar Oy, based in Tampere, Finland) and its business in order to strengthen its offering in the Microsoft Dynamics AX business area.
See press release for more details.


6 June, 2013

Innofactor signed a contract to acquire the entire share capital of atBusiness Ltd.
See Stock Exchange Release for more details.


30 November, 2012

Innofactor signed a contract to acquire the Microsoft project and project portfolio management solutions business from Tietotalo Infocenter Ltd.


25 June, 2012

Innofactor signed a contract to acquire the entire share capital of Bridgeconsulting A/S.
See Stock Exchange Release for more details.


3 December, 2010

Westend ICT Plc and Innofactor Ltd merged to become the Innofactor Plc Group.
See Stock Exchange Release for more details.


3 June, 2010

Visual Management Ltd became part of Innofactor Software Ltd.


12 October, 2009

Innofactor Software Ltd acquired Software Innovation Finland Ltd.


1 April, 2007

Innofactor purchased the Enfo Ltd business unit responsible for electronic business solutions.


15 December, 2004

Innofactor Software Ltd acquired TietoEnator Plc's parish-software business.

Sustainability

Innofactor is convinced that the company's long-term success is based on sustainable operations. Our digital solutions are in a key position in curbing climate change and promoting sustainable development. Our operation is steered by our Code of Conduct and environmental policy, in addition to which we comply with the leading international sustainability standards, such as the ILO Declaration on Fundamental Principles and Rights at Work, the UN Universal Declaration of Human Rights, the UN Sustainable Development Goals and the principles of the ICC Business Charter for Sustainable Development.

Innofactor's internal operations are managed through predefined core processes and standards. The key processes related to sustainability include the company's processes relating to legal affairs, risk management and human resources, which govern many of the main aspects of corporate responsibility. The framework for Innofactor's operations is provided by the ISO 9001, ISO 27001, ISO 13485 and AQAP-2110 standards, which the company's various processes adhere to.

In 2018, Innofactor conducted a survey to learn about the employees' views of the most material sustainability themes in the organization. The most relevant sustainability themes for the personnel in Finland were providing solutions which enable sustainable growth for our customer organizations, increasing energy efficiency in our operations, improving recycling in our offices and highlighting sustainability issues in our communications.

Innofactor is committed to supporting the achievement of the UN Sustainable Development Goals (SDGs) by 2030. Accordingly, we have mapped the main objectives from the perspective of our business operations.

Read more about Innofactor's sustainability

Future Outlook

Innofactor’s future outlook for 2020

Innofactor’s net sales and operating margin (EBITDA) in 2020 are estimated to increase from 2019, during which the net sales were EUR 64.2 million and operating margin was EUR 5.1 million.

Do you want to hear more about Innofactor? Contact us!
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