Innofactor as an Investment

Innofactor Plc will publish its interim report for January–March 2021 on Tuesday, April 27, 2021, at approximately 9:00 am Finnish time. A video conference call for media, investors and analysts will be held in English on the same day beginning at 12:00.

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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 approximately 1,000 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 2016–2020, the annual growth of Innofactor's net sales has been approximately 8.3%. 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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Innofactor Plc Financial Statement 2020 (IFRS): Despite COVID-19 and an individual project write-down made in 2019, Innofactor achieved the highest net sales, EBITDA, and order backlog of its history in 2020

 

January–December 2020 in brief:

  • The net sales were approximately EUR 66.2 million (2019: 64.2), which shows an increase of 3.1%
  • The operating margin was approximately EUR 7.2 million (2019: 5.1), which shows an increase of 40.8%
    • In the last quarter of the year, the operating margin was subject to a final write-down and cost item of approximately EUR 1.0 million in total of a project conducted in Sweden in 2019, without which the operating margin would have been approximately EUR 8.1 million
    • The operating profit was EUR 2.5 million (2019: 0.8), which shows an increase of 214.4%
      • The operating profit was subject to a corresponding adjustment as the operating margin, without which the operating profit would have been approximately EUR 3.5 million

October–December 2020 in brief:

  • The net sales were approximately EUR 18.3 million (2019: 17.4), which shows an increase of 4.7%
  • The operating margin was approximately EUR 1.6 million (2019: 1.6), which shows an increase of 1.7%
    • In the last quarter of the year, the operating margin was subject to a final write-down and cost item of approximately EUR 1.0 million in total of a project conducted in Sweden in 2019, without which the operating margin would have been approximately EUR 2.6 million
  • The operating profit was EUR 0.4 million (2019: 0.5), which shows a decrease of 16.0%
    • The operating profit was subject to a corresponding adjustment as the operating margin, without which the operating profit would have been approximately EUR 1.4 million
  • The order backlog at the end of the review period was EUR 60.4 million (2019: 49.8), which shows an increase of 21.4%
    • Innofactor did not receive any orders exceeding the limit for requiring a stock exchange release in the fourth quarter as some decisions were delayed until the turn of the year; these are reported in the section "Events after the review period"
    • The order backlog increased due to orders received during the third quarter, which were recognized in the order backlog during the fourth quarter; more details under “Innofactor's order backlog increased further to a new record-high level, although there were no significant large orders during the fourth quarter of 2020”

Q4 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 Q4 2020 result.

 

Innofactor Q4 interview with CEO Sami Ensio - Evli (In English, 7 min)

Evli result interview Q4 2020

CEO's Review

February 18, 2021

After the year of COVID-19, we are expecting stronger organic growth in 2021

The net sales in 2020 were a record-high EUR 66.2 million, which shows an increase of 3.1 percent compared to the previous year. The operating margin (EBITDA) improved by EUR 2.1 million from the previous year and was also a record-high figure, EUR 7.2 million (10.8 percent of the net sales).  In the last quarter of the year, the operating margin was subject to a final write-down and cost item of approximately EUR 1.0 million in total of a project conducted in Sweden in 2019, without which the operating margin would have been approximately EUR 8.1 million (12.3 percent of the net sales).

The net sales in the fourth quarter of 2020 were EUR 18.3 million, which shows an increase of 4.7 percent compared to the previous year. The net sales increased in Finland but continued to decrease in the other countries compared to the previous year, even though business in other countries did pick up towards the end of 2020. The net sales per employee grew 1.2% from the previous year. The operating margin (EBITDA) remained roughly on a par with the previous year, amounting to EUR 1.6 million (8.7 percent of the net sales). Without the adjustment described above, the operating margin would have been approximately EUR 2.6 million (14.0 percent of the net sales).

The order backlog grew to a new historic high, EUR 60.4 million, at the end of the quarter (2019: 49.8), which shows an increase of 21% compared to the same time in the previous year.

In 2020, we deepened our co-operation with customers further. We received a record-high number of new orders during the year, which strengthened the order backlog, such as a financial management system for a Finnish trading company, Health Village-related ICT specialist services for the Helsinki and Uusimaa Hospital District (HUS), follow-up development phase of the enterprise resource planning and documentation management system (HAIPA) of administrative and special courts for the Legal Register Centre, ICT consulting services for the Norwegian municipality of Ullensaker, administrative case management solution for the Social Insurance Institution of Finland, bankruptcy and reorganization proceedings system (KOSTI) for the Legal Register Centre, application management system services for Microsoft Office 365 and Microsoft SharePoint environments for VTT Technical Research Centre of Finland, digitization of the quotation process for a large Finnish globally operating manufacturing company, follow-up development of membership management solution for a Swedish trade union, primary IT specialist service framework agreement on the maintenance and development of information systems for the Finnish Transport and Communications Agency Traficom, consulting and maintenance services for Senate Properties, case management system for Tampereen korkeakoulusäätiö, and several other significant projects in Finland, Sweden, Denmark, and Norway. In addition to the above, on January 21, 2021, we announced that the Tax Administration had selected Innofactor in a public procurement competition as the primary provider of IT specialist services in the area of Azure programming, with a total value of EUR 15–25 million, which is the biggest individual order ever for Innofactor. I would like to thank our customers and partners for the trust you have shown in Innofactor.

Our 20th anniversary, 2020, continued the positive development that began in 2019 with regard to the improvement of profitability. During the year, we succeeded in sales, as reported above, and our order backlog increased to a new record-high figure, we got public attention for our achievements and were even able to celebrate, with COVID-19 safety in mind. It was a great year for Innofactor as a whole, despite COVID-19. We believe that we will be able to further accelerate our organic growth rate in 2021, which will also be supported by the improving business circumstances in the second half of 2020 outside of Finland compared to the second and third quarters.

The key factor that influenced Innofactor’s business in 2020 was COVID-19. The coronavirus caused challenges in Sweden, Norway and Denmark especially during the second and third quarters, which led to a decrease in customers’ purchases in these countries. As a result, net sales fell short of plans. However, profitability improved even faster than planned, which was mainly due to lower travel and other operating expenses due to the pandemic. In the Nordic countries, Innofactor received a total of approximately EUR 0.7 million in support from the states due to COVID-19 in 2020.  As a whole, we reached record-high net sales, operating margin and order backlog in our anniversary year 2020.

In the long term, we believe that the digital step the society is taking due to the COVID-19 pandemic 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. 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 COVID-19 pandemic. We believe in our chances of increasing our market share.

Innofactor's aim is to be the leading provider of organizations' digital transformation in each of the Nordic countries. We believe in our chosen Nordic strategy and in reaching our long-term goals. This requires perseverance and determination from the company's management and employees as well as investors. Innofactor is still actively looking for new strategic partnerships in the Nordic countries. The Group’s goal is to grow both organically and through acquisitions.

Personally, I am particularly happy that we can pay out dividends to our shareholders for 2020 in accordance with our revised dividend policy. We would like to thank all of our customers, partners, employees, and investors for the year 2020!

 

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

Business Environment

We estimate that the growth rate of the Nordic IT services market will be positive in 2021, but because of the COVID-19 situation, we cannot give a more detailed estimate

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 slightly in 2020. We estimate that growth in the Nordic IT services market will continue in 2021, but because of the COVID-19 situation, we cannot give a more detailed estimate. 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 COVID-19 pandemic 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. 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 COVID-19 pandemic. 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.

Purpose, Mission, Vision and Strategy

Innofactor's strategy comprises our purpose, mission, vision, strategic choices, values, working principle, and long-term financial goals. 

Our purpose

Innovating to make the world work better

Our mission

Driving the modern digital organization

Our vision

Leading Nordic digital transformation partner in the Microsoft ecosystem

Our strategic choices

  • The most competent Nordic teams
  • Productized and specialized offering
  • Proactive and agile way of working
  • Innovation with top customers

Our values

  • Accountability
  • Empowerment
  • Innovation
  • Customer

Read more about our values.

Our working principle

Our principle is to put people first in everything we do. We want to create solutions that make people's everyday work and life run smoothly and bring a smile to their faces.

Our long-term financial goals

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

Strategy and its realization in the review period

Innofactor’s net sales in the review period of January 1–December 31, 2020, were EUR 66.2 million (2019: 64.2), which shows an increase of 3.1 percent compared to the previous year. The net sales grew 4.7% in the last quarter of 2020. The net sales grew in Finland, but decreased in other countries. The strategic goal of getting the net sales to grow is also supported by the favorably developed order backlog of EUR 60.4 million (2019: 49.8). In 2021, Innofactor will pay special attention to management of growth, sales, expertise and resourcing, in connection with which we have revised our organization, among other measures. A Chief Innovation and Talent Officer will start as a new role in April 2021.

The operating margin (EBITDA) grew in the review period of January 1–December 31, 2020, from EUR 5.1 million in the same period the previous year to EUR 7.2 million (10.8 percent of the net sales). As regards profitability, Innofactor was able to further improve its performance substantially. However, a significant amount of management effort and work are still needed in order to reach the long-term goal of approximately 20 percent. The required actions are clear and known, so we believe that reaching this goal is entirely possible.

Innofactor’s operating cash flow in the review period of January 1–December 31, 2020, was EUR 5.0 million (2019: EUR 6.2 million) and the equity ratio at the end of the review period was 42.2 percent (2019: 40.2%). The strong operating cash flow supports Innofactor’s strategic goal of profitable growth and securing solid financial standing in all situations.

Key Figures

2020

2019

2018

2017

2016

Net sales, EUR thousand

66,164

64,198

63,144

66,088

59,616

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

7,164

5,089

-1,029

1,308

4,831

percentage of net sales

10.8%

7.9%

-1.6%

2.0%

8.1%

Operating profit (EBIT), EUR thousand

2,501

795

-3,872

-1,461

2,332

percentage of net sales

3.8%

1.2%

-6.1%

-2.2%

3.9%

Earnings before taxes, EUR thousand

2,050

12

-3,811

-1,579

1,920

percentage of net sales

3.1%

0.0%

-6.0%

-2.4%

3.2%

Earnings, EUR thousand

1,761

418

-3,462

-2,007

1,536

percentage of net sales

2.7%

0.7%

-5.5%

-3.1%

2.6%

Shareholders' equity, EUR thousand

23,444

22,145

21,303

24,764

22,501

Interest bearing liabilities, EUR thousand

15,386

16,853

15,418

14,228

16,701

Cash and cash equivalents, EUR thousand

3,066

963

258

910

902

Deferred tax assets, EUR thousand

6,413

5,602

5,602

5,668

5,760

Return on equity

7.7%

1.9%

-13.8%

-5.3%

6.5%

Return on investment

11.1%

2.3%

-7.7%

-2.4%

6.4%

Net Gearing

52.5%

71.8%

71.2%

53.8%

70.2%

Equity ratio

42.2%

40.2%

41.2%

43.4%

35.8%

Balance sheet total, EUR thousand

56,607

55,720

51,875

58,272

63,587

Research and development, EUR thousand

3,618

2,795

2,860

3,298

3,394

percentage of net sales

5,5%

4.4%

4.5%

5.0%

5.7%

Personnel on average during the year

544

534

591

610

532

Personnel at the end of the year

541

538

550

601

591

Number of shares at the end of the year

37,388,225

37,388,225

36,188,225

36,188,225

32,901,377

Earnings per share (EUR)

0.0471

0.0113

-0.0880

-0.0357

0.0467

Shareholders' equity per share (EUR)

0.627

0.592

 0.589

0.684

0.684

Growth and Financial Targets

Annual net sales growth from 2016 to 2020 has been 8.3% on average.

 

Innofactor's long term financial goals:

  • To achieve annual growth of about 20 percent, of which majority is intended to be achieved by organic growth
  • To achieve about 20 percent EBITDA in relation to the net sales
  • To keep 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
  • Developing our flexible value-adding delivery model by minimizing unnecessary work, by improving our invoicing rate in delivery projects, consultancy and expert work, as well as by maximizing customer satisfaction

Customers

Innofactor's business operations were focused on Finland, Sweden, Denmark, and Norway. In January 1–December 31, 2020, approximately 68 percent of the net sales came from Finland, approximately 19 percent from Sweden, approximately 9 percent from Norway, and approximately 4 percent from Denmark. The net sales grew in Finland, but decreased in other countries. During the fourth quarter of 2020, the net sales grew in Finland and decreased in other countries.

Of the net sales in January 1–December 31, 2020, approximately 42 percent came from commercial clients, approximately 41 percent from public sector clients, and approximately 17 percent from third sector clients.

 

Distribution of net sales in January 1–December 31, 2020

distibution of net sales

 

Innofactor's net sales in the review period of January 1–December 31, 2020, came from the following sources:

  • approximately 5 percent from licenses, of which the share of licensing income to third parties was approximately 3.4 percent of the net sales
  • approximately 31 percent from services based on recurring service contracts, such as SaaS, cloud and hosting services, and from software maintenance
  • approximately 21 percent from specialist work based on recurring service contracts, such as smaller customer-specific changes and further development of IT systems
  • approximately 43 percent from IT system delivery projects and consulting

Innofactor’s 10 largest clients accounted for approximately 30 percent of the net sales during the review period January 1–December 31, 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.

Financial Statement for January 1–December 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 October 1–December 31, 2020, was 543 persons (2019: 538), which shows an increase of 0.9 percent. The average number of active personnel in January 1–December 31, 2020, was 544 persons (2019: 534), which shows an increase of 1.9 percent. At the end of the review period, the number of active personnel was 541 (2019: 538), which shows an increase of 0.6 percent.

At the end of the review period, the average age among personnel was 41.4 years (2019: 41.6). Women accounted for 27 percent (2019: 26%) of the personnel. Men accounted for 73 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 2021

Innofactor’s net sales and operating margin (EBITDA) in 2021 are estimated to increase from 2020, during which the net sales were EUR 66.2 million and operating margin was EUR 7.2 million.

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