Innofactor as an Investment

Innofactor Plc's Half-Yearly Report has been published on July 22, 2021, at 9:00 Finnish time: Innofactor achieved the best second quarter net sales and EBITDA in its history, as well as the highest order backlog ever.

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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 Half-Yearly Report for January 1–June 30, 2021 (IFRS): Innofactor achieved the best second quarter net sales and EBITDA in its history, as well as the highest order backlog ever

 

April–June 2021 in brief:

  • The net sales were approximately EUR 17.3 million (2020: 16.8), which shows an increase of 3.2%
    • Excluding the Prime business sold on March 31, 2021, the comparable growth was 7.6%, which was entirely organic growth
  • The operating margin was approximately EUR 2.1 million (2020: 2.1), which shows an increase of 1.6%
  • The operating profit was EUR 1.3 million (2020: 0.9), which shows an increase of 43.8%
  • The order backlog at the end of the review period was EUR 72.7 million (2020: 56.9), which shows an increase of 27.8%
  • Innofactor received several significant orders in the second quarter, for example,
    • Case and document management services for the joint municipal authority for the county of Ostrobothnia, approximately EUR 0.9 million
    • A case management solution for six universities, approximately EUR 0.9 million (not yet in the order backlog at the end of the review period)
    • Case management solution for the Finnish Forest Centre, approximately EUR 0.6 million

January–June 2021 in brief:

  • The net sales were approximately EUR 35.1 million (2020: 33.9), which shows an increase of 3.5%
    • Excluding the Prime business sold on March 31, 2021, the comparable growth as of April 1, 2021 was 5.6%, which was entirely organic growth
  • The operating margin was approximately EUR 6.8 million (2020: 4.0), which shows an increase of 68.0%
    • The operating margin includes a sales gain of approximately EUR 2.6 million from the sale of the Prime business, without which the operating margin would have been approximately EUR 4.2 million (2020: 4.0), which shows an increase of 4.4%
  • The operating profit was EUR 5.1 million (2020: 1.7), which shows an increase of 198.8%
    • The operating profit includes a corresponding sales gain as the operating margin, without which the operating profit would have been approximately EUR 2.5 million (2020: 1.7), which shows an increase of 48.5%

 

Q2 2021 result interviews

Innofactor's CEO Sami Ensio's result interviews by Evli Research's analyst Jerker Salokivi and Inderes' analyst Joni Grönqvist after Innofactor's Q2 2021 result.

 

Innofactor Q2 interview with CEO Sami Ensio - Evli (In English, 7 min)

Evli result interview

CEO's Review

July 22, 2021

CEO Sami Ensio's review: Innofactor continued to perform consistently during Q2 and repaid a large share of its debts to financial institutions prematurely from its cash assets


sami ensio

The net sales in the second quarter of 2021 were EUR 17.3 million, which shows an increase of 3.2 percent compared to the previous year. Excluding the Prime business sold on March 31, 2021, the comparable growth was 7.6% in the second quarter, which was entirely organic growth. The net sales grew in all countries. The operating margin (EBITDA) grew by 1.6 percent from the previous year and was EUR 2.1 million (12.1 percent of the net sales). EBITDA was positive in Finland, Norway and Denmark. In the second quarter, the order backlog once again grew to a record-breaking amount and was EUR 72.7 million at the end of the quarter, which shows an increase of 27.8 percent compared to the corresponding time in the previous year.

The net sales in the first half of 2021 were EUR 35.1 million, which shows an increase of 3.5 percent compared to the previous year. Excluding the Prime business sold on March 31, 2021, the comparable growth as of April 1, 2021 was 5.6%, which was entirely organic growth. The operating margin (EBITDA) grew by 68.0 percent from the previous year and was EUR 6.8 million (19.2 percent of the net sales), of which the sale of the Prime business during the first quarter accounted for approximately EUR 2.6 million.

Innofactor prematurely repaid approximately EUR 2.7 million of its loans to financial institutions using its cash assets. Together with normal loan repayments, this will significantly reduce Innofactor's annual financial expenses. Innofactor's equity ratio increased to 49.9 percent (53.6% excluding the effects of IFRS16) and net gearing decreased to 30.5 percent (16.8% cent excluding the effects of IFRS16). The strengthened financial position will provide the company with additional room for maneuver in the restructuring of the industry.

The COVID-19 pandemic is not expected to cause significant harm to Innofactor’s business in 2021. However, the prolonged epidemic has affected people's coping, which is why the summer holiday season has been sorely needed. The turnover of personnel was also higher than usual in the entire industry during the first half of the year, including at Innofactor, which has an impact on costs, among other things. Innofactor has defined a new hybrid working model for the post-COVID-19 period, based significantly on the ability of employees to choose between office and remote work. The new hybrid working model will be adopted without delay after the summer, once the COVID-19 situation allows.

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. 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 are confident in our chances of increasing our market share.

Innofactor's goal is to accelerate our growth further. We will update our strategy in this regard during the summer and expect to publish it at the end of August.

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.

 

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 first half of the year were EUR 35.1 million (2020: 33.9), which shows an increase of 3.5 percent compared to the previous year. Excluding the Prime business sold on March 31, 2021, the comparable growth as of April 1, 2021 was 5.6%, which was entirely organic growth. During the first half of the year, Finland, Norway and Denmark accounted for the growth, and in the second quarter all countries saw growth. The strategic goal of getting the net sales to grow is also supported by the record-breaking order backlog of EUR 72.7 million (2020: 56.9). In 2021, Innofactor will pay special attention to the management of growth, sales, expertise and resourcing, in connection with which we have revised our organization, among other measures, with Martin Söderlind starting in the new Chief Innovation and Talent Officer role in April 2021. In our strategy to be revised in August, we will focus particularly on supporting the acceleration of growth.

The operating margin (EBITDA) grew in the review period by 68.0 percent from the previous year and was EUR 6.8 million (19.2 percent of the net sales). Without the divestment of the Prime business, the operating margin would have grown by 4.4 percent in the review period and would have been EUR 4.2 million (12.0 percent of the net sales). As regards profitability (excluding the Prime divestment), Innofactor was able to improve its performance slightly, but some effort is still needed in order to reach the long-term goal of approximately 20 percent.

Innofactor’s operating cash flow in the review period of January 1–June 30, 2021, was EUR 6.9 million (2020: EUR 6.3 million) and the equity ratio at the end of the review period was 49.9 percent (2020: 41.3 percent). In the review period, Innofactor repaid approximately EUR 2.7 million of its loans prematurely. 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

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–June 30, 2021, approximately 67 percent of the net sales came from Finland, approximately 18 percent from Sweden, approximately 10 percent from Norway, and approximately 5 percent from Denmark. The net sales grew in all countries in the second quarter.

Of the net sales in January 1–June 30, 2021, approximately 42 percent came from commercial clients, approximately 43 percent from public sector clients, and approximately 15 percent from third sector clients. The decrease in the share of third sector clients is due to the impact of the Prime business divested on March 31, 2021.

 

Distribution of net sales in January 1–June 30, 2021

 

Innofactor's net sales in the review period of January 1–June 30, 2021, came from the following sources:

  • approximately 43 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 21 percent from services based on recurring service contracts, such as SaaS, cloud and hosting services, and from software maintenance
  • approximately 4 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, 2021.

 

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 to build Innofactor as a modern digital organization. We develop our operating models to support the daily work of our employees within our Nordic organization. Highly competent and motivated employees, good leadership practices, effective teamwork, self-organization and company-wide practices support Innofactor’s long-term goals. Our principle is to put people first in everything we do. We want to create an inspiring work environment for our employees and also have fun while working.

Half-Yearly Report for January 1–June 30, 2021 (IFRS): Innofactor's number of personnel decreased from the comparison period, which was particularly due to the Prime divestment

Block image

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, 2021, was 524 persons (2020: 546), which shows a decrease of 4.0 percent. At the end of review period, the number of active personnel was 526 (2020: 548), which shows a decrease of 4.0 percent. The sale of the Prime business on March 31, 2021, which involved the transfer of 14 employees from Innofactor, had a particular impact on the decrease in the number of employees.

At the end of the review period, the average age among personnel was 42.1 years (2020: 41.2). Women accounted for 27 percent (2020: 28%) and men for 73 percent (2020: 72%) of the personnel.

Get to know our people!

 

Successful Remote Work at Innofactor During the Exceptional Year of COVID-19

Innofactor had prepared for the risk of a pandemic in early 2020 by giving the employees instructions concerning traveling and symptoms of COVID-19, by purchasing a larger than normal stock of computers, and by making a separate plan for getting employees to work remotely if necessary. In accordance with the plan, it was recommended that the entire personnel work remotely during the period March 12–June 25, 2020, and again starting from August 7, 2020. It is estimated that it has been possible to perform over 98% of tasks remotely at Innofactor. In Sweden, Norway and Denmark, net sales decreased in 2020 and minor adjustment measures were taken. For example, some employees started working shorter hours. We believe that the adverse business impacts of COVID-19 are now mostly behind us.

During the pandemic, Innofactor focused particularly on supporting remote work and related operating models. In managerial work, special focus has been placed on virtual meetings and active correspondence. Self-management and occupational well-being have been supported with due consideration for the exceptional circumstances. Exercise breaks, mindfulness practice, mentoring, coaching and various online training activities provided by the company have been popular among the employees. The regular sharing of information has also played a central role, including a COVID-19-related Teams page that is actively updated and employee COVID-19 information sessions organized via Teams.

From the perspective of psychological well-being, it is important to be able to meet other people – both colleagues and customers – even during COVID-19. However, such meetings must be arranged with the highest possible standards of safety. To this end, we introduced the opportunity to reserve outdoor meeting spaces at our Innofactor Campus in Espoo in the summer, and we have also installed special air purifiers in a few of our meeting rooms to prevent the spread of COVID-19, which makes it possible to hold small group meetings as safely as possible.

Talented Employees at the Core of Our Business

Going forward, Innofactor aims to further enhance its competence development on the Nordic level. Our Executive Board will be joined on April 1, 2021 by a new Chief Innovation and Talent Officer, whose role will be to determine what competencies we need now and in the future, and to ensure that we have access to these competencies. The Chief Innovation and Talent Officer will be supported by the Senior Talent Manager role created in 2020. We expect these moves to have a significant impact on the execution of our strategy.

Innofactor Academy continued to actively train the personnel in 2020. Innofactor Academy brings together Innofactor’s training activities at the local level as well as the Nordic level. A new theme in training was supporting remote work through training activities and lectures focused on coping with the demands of work. We also organized training related to Microsoft technology, basic induction training, as well as ITIL and SCRUM training. The COVID-19 pandemic gave us the opportunity to challenge ourselves with regard to facilitating remote training. This enabled us to develop our range of training activities and engage in closer Nordic cooperation regarding training. Going forward, we will also focus increasingly on the certification of our employees.

Self-Organization and Modern Operating Models Support Our Work

Innofactor's goal is to build a company with Nordic integration. We continued the development of our Nordic operating models in 2020. For example, the new employee path was harmonized at the Nordic level. Several operating models were also automated and developed to support managerial work at the Nordic level. In late 2020, managers were engaged in the development of new Nordic job descriptions and testing the new development discussion platform adopted by Innofactor. Common systems, processes and culture support Innofactor's strategic targets and co-operation between the countries.

The self-organized operating model and the full-time manager model were adopted in the remaining Finnish units at the beginning of 2021 and the plan is to implement a corresponding model in other countries during 2021–2022.

We Invest in Good Leadership

Every employee has the right to good leadership. The continuous development of leadership is a key focus area for Innofactor. One of the main themes in 2020 was the development of the organization's feedback culture. In addition to the quarterly employee satisfaction survey, all managers participated in a comprehensive 360° evaluation. According to the results, the quality of leadership at Innofactor is already better than the European benchmark by a clear margin. Nevertheless, we want it to be even better. Managers worked with a facilitator to create individual development plans. Based on the data we have collected, we have built local and Nordic development plans that support the development of our leadership and operations and help us make Innofactor an even better place to work.

Smiling at Work is Allowed

At Innofactor, people work together and support each other. We want work to be both meaningful and fun. This is underpinned by good leadership and common working practices, but especially by great colleagues and a fantastic team spirit.

We organize recreational events for our personnel, both in teams and at the corporate level. The COVID-19 pandemic made 2020 an unusual year in terms of group activities and meetings. Our annual Nordic summer event, InSpirit, was organized as a hybrid event for the first time. The content was produced virtually for each of our operating countries and the evening festivities were arranged locally where possible, taking safety considerations into account.

We also have a Fun Club organized by the personnel, which offers joint recreational activities. In 2020, we organized our first virtual May Day event and Pre-Christmas Party in Finland as well as a virtual Nordic Advent Calendar.

Remuneration and Employee Awards

To celebrate Innofactor's 20th anniversary, we gave out Medals of Merit from the Finland Chamber of Commerce to our employees for the first time. The Medals of Merit were given to employees who have worked at Innofactor or its associated companies for more than 20 years.

Offering

We help our customers to succeed by modernizing and digitalizing their organizations. We 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.

Everyone at Innofactor shares a desire to innovate for a more functional world in together with colleagues, customers, and partners. Our mission to drive the modern digital organization is based on the expertise of Innofactor’s leading business and cloud technology professionals, as well as our more than 20 years of experience working at the forefront of digitalization with our partners and approximately 1,000 private, public, and thirdsector customers. We put people first in everything we do. We want to provide solutions that make our customers’ lives easier and bring a smile to their faces. We help our customers take advantage of cloud technology and new innovations. 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

During the first quarter, Innofactor increased its holding in Arc Technology Oy by 26.94 percent to a total of 45.13 percent. Starting from the Q2/2020 interim report, Arc Technology Oy was reported as a subsidiary, because Innofactor has had control over the company since April 2020. Innofactor’s holding in the company increased to 100% on December 30, 2020. For 2020, Arc Technology Oy increased Innofactor's net sales by approximately EUR 0.8 million. Arc Technology Oy was renamed as Innofactor HRM Oy in early 2021.

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 considers sustainability as one of the cornerstones of its long-term success. Sustainability is not only a condition for the continuation of operations. It also represents a way of responding to stakeholder expectations. Technology companies play a significant role in the mitigation of – and adaptation to – climate change. The IT sector also makes it possible for other organizations to reduce their carbon footprint. Our operations are guided 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.

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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