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Innofactor Plc Financial Statement 2023 (IFRS)

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08.02.2024 09:00 CEST/EET (UTC +2)

Innofactor Plc Financial Statement February 8, 2024, at 9:00 a.m. Finnish time

Innofactor’s full-year net sales for 2023 grew by 12.8 percent and exceeded EUR 80 million for the first time – EBITDA also increased to an all-time high of over EUR 9 million

October–December 2023 in brief:

  • Net sales were approximately EUR 21.9 million (2022: 20.5), representing an increase of 6.8%
  • The operating margin was approximately EUR 2.9 million (2022: 2.6), which shows an increase of 10.2%
  • Operating profit was EUR 1.9 million (2022: 1.8), representing an increase of 7.0%
  • The order backlog at the end of the review period was EUR 71.6 million (2022: 75.8),
    representing a decrease of 5.6%
    • We transferred part of the order backlog to the framework agreement backlog, which had a value of EUR 29.8 million at the end of the quarter (2022: 18.9)
  • Innofactor received several significant orders in the fourth quarter, for example:
    • Continued development and maintenance of IF Metall’s membership management system, approximately EUR 1.6 million
    • A comprehensive system delivery to Tampereen Infra Oy, EUR 1.6 million

January–December 2023 in brief:

  • Net sales were approximately EUR 80.3 million (2022: 71.1), which shows an increase of 12.8%
    • Of the growth, approximately 9.1% was organic, excluding the Invenco acquisition of June 30, 2022
  • The operating margin was approximately EUR 9.1 million (2022: 7.8), representing an increase of 16.6%
  • Operating profit was EUR 5.8 million (2022: 4.8), which shows an increase of 22.8%

Key figures of the group, IFRS

Oct 1–Dec 31, 2023 Oct 1–Dec 31, 2022 Change   Jan 1–Dec 31, 2023 Jan 1–Dec 31, 2022 Change
Net sales, EUR thousand 21,930 20,536 +6.8%   80,263 71,130 +12.8%
Growth of net sales 6.8% 17.1%     12.8% 7.2%  
Operating result before depreciation and amortization (EBITDA), EUR thousand 2,879 2,612 +10.2%   9,101 7,808 +16.6%
percentage of net sales 13.1% 12.7%     11.3% 11.0%  
Operating profit/loss (EBIT), EUR thousand 1,931 1,805 +7.0%   5,835 4,751 +22.8%
percentage of net sales 8.8% 8.8%     7.3% 6.7%  
Earnings before taxes, EUR thousand 1,623 1,678 -3.3%   5,174 4,178 +23.9%
percentage of net sales 7.4% 8.2%     6.4% 5.9%  
Earnings, EUR thousand 878 1,328 -33.9%   3,438 3,320 3.6%
percentage of net sales 4.0% 6.5%     4.3% 4.7%  
Order backlog 71,555 75,831 -5.6%   71,555 75,831 -5.6%
Net gearing 36.1% 50.0% -13.9%   36.1% 50.0% -13.9%
Net gearing without IFRS 16 23.1% 30.0% -6.9%   23.1% 30.0% -6.9%
Equity ratio 48.3% 44.8% +3.5%   48.3% 44.8% +3.5%
Equity ratio without IFRS 16 51.5% 49.2% +2.3%   51.5% 49.2% +2.3%
Active personnel on average during the review period* 581 562 +3.4%   578 536 +7.8%
Active personnel at the end of the review period* 581 564 +3.0%   581 564 +3.0%
Earnings per share (EUR) 0.02 0.04 -33.9%   0.09 0.09 3.6%

*) In accordance with IFRS 3, the operating result for October 1–December 31, 2023, includes EUR 184 thousand (2022: 55), and the operating result for January 1–December 31, 2023, EUR 359 thousand (2022: 277) in depreciations related to acquisitions, consisting of allocations of the purchase price to intangible assets.

**) The Innofactor Group monitors the number of active personnel. The number of active personnel does not include employees who are on leave for more than three months.


Innofactor’s future outlook for 2024

Innofactor’s net sales and operating margin (EBITDA) in 2024 are estimated to increase from 2023, during which net sales were EUR 80.3 million and the operating margin was EUR 9.1 million.


CEO Sami Ensio’s review: We achieved a good result in the fourth quarter and for the full year in spite of the challenging market situation

Our net sales in the fourth quarter of 2023 amounted to EUR 21.9 million, representing year-on-year growth of 6.8 percent. Net sales increased in Finland and, denominated in the local currency, in Norway. Net sales decreased in Sweden and Denmark. Net sales per employee increased by 3.3 percent. The operating margin (EBITDA) increased by 10.2 percent year-on-year and came to EUR 2.9 million (13.1 percent of net sales). In the fourth quarter of 2023, EBITDA was positive in Finland but negative in the other countries. The order backlog at the end of the quarter amounted to EUR 71.6 million (2022: 75.8), representing a year-on-year decrease of 5.6 percent. We transferred part of the order backlog to the framework agreement backlog, which had a value of EUR 29.8 million at the end of the quarter (2022: 18.9).

Net sales for the full year 2023 totaled EUR 80.3 million, representing year-on-year growth of 12.8 percent. The operating margin (EBITDA) operationally was EUR 9.1 million (11.3 percent of net sales). We achieved good business growth in Finland and Norway in 2023, and profitability was positive in those countries. In Sweden and Denmark, net sales decreased in 2023 and profitability was negative. Our goal is to achieve a turnaround in growth and profitability in Sweden and Denmark in 2024. In the Information and Case Management solution area, which is based on our Dynasty product, we achieved growth of 29.8 percent in 2023 and the EBITDA was 29.0 percent in spite of the fact that the solution area is allocated product development costs amounting to 14.6 percent of net sales on a cost basis. Net sales of SaaS and licenses represent 60.9 percent of the solution area’s net sales. Net sales of SaaS and licenses increased by 31.9 percent in 2023. Innofactor reached record-high net sales and EBITDA in 2023.

Price competition in the markets remained intense in the fourth quarter of 2023, although the weighted average prices of new contracts continued to increase slightly from the preceding quarter. We expect customer prices to continue to increase in 2024, although we predict that the situation will remain challenging at least for the first half of the year.

Our sales performance was excellent in the fourth quarter. Among other contracts, we signed a contract to continue the development, maintenance and support of IF Metall’s membership management system in Sweden, valued at approximately EUR 1.6 million, and a contract on a comprehensive system delivery to Tampereen Infra Oy in Finland, valued at approximately EUR 1.6 million. In spite of the challenging competitive situation, we were able to even slightly increase our average selling price in 2023 compared to 2022. Our strong order backlog, framework agreements and other purchases by existing customers enable Innofactor to operate profitably.

In 2023, we managed to increase the share of SaaS and licenses to approximately 31.5 percent of net sales, compared to approximately 27.3 percent in the previous year. Increasing the share of SaaS and licenses is one of our key strategic objectives, and our target is to increase it to over 33 percent in the long term.

In 2023, Innofactor published a sustainability strategy, which is divided into four areas: we innovate for good, we are fair, we put people first, and we build trust.

Innofactor’s strength lies in our highly competent and motivated personnel. In 2023, we strengthened our team, trained our personnel, completed certifications and developed our organization and management style. Innofactor’s company-specific collective agreement for Finland was signed in early 2023. The aim of the company-specific collective agreement is to make it possible to agree on issues that are important to our personnel, and to have a more straightforward and easy-to-understand collective agreement that reflects us as a company and supports our values. At the end of 2023, we established a personnel bonus fund. Our employees can transfer their performance bonuses to the fund, and bonuses transferred to the fund are subject to increases. In accordance with its rules, the fund invests in Innofactor Plc’s shares.

Generative artificial intelligence (ChatGPT, Microsoft Azure Open AI and Microsoft Copilot) received growing attention in the market in 2023. Generative AI presents our customers – and Innofactor – with significant opportunities for improving operational efficiency. Above all, it opens up significant new business opportunities for Innofactor, and we have quickly developed new offerings in response to these opportunities. We see Copilot for Microsoft 365 as particularly significant, as we expect it will enable us to grow our business in co-operation with our main partner Microsoft.

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.

I am pleased that we were able to use our distributable funds to purchase our own shares in 2023 and will be able to distribute funds to our shareholders for the year 2023 in accordance with our dividend policy at EUR 0.06 per share (2022: EUR 0.08 per share). I want to take this opportunity to thank our customers, partners, employees, and investors for the year 2023.


Strategy and its realization in the review period

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

Our working principle: Our principle is to put people first in everything we do. We want to provide solutions that make our customers’ everyday work and life run smoothly and bring a smile to their faces.

Employer promise: Be the real you

Our long-term financial goals:

  • To achieve annual growth of about 20 percent, the majority of which 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 good financial standing in all situations.

Innofactor’s net sales for the review period January 1–December 31, 2023, amounted to EUR 80.3 million (2022: 71.1), representing year-on-year growth of 12.8 percent. Of the growth, approximately 9.1 percent was organic, excluding net sales derived from the Invenco acquisition of June 30, 2022. We are lagging behind our strategic growth target. We aim to further improve our operational performance to drive growth. Our goal is to increase the number of chargeable personnel, taking the order backlog into consideration. During the review period, the number of personnel at Innofactor increased by 7.8 percent year-on-year. We look for acquisition targets to enable inorganic growth.

The operating margin (EBITDA) increased in the review period of January 1–December 31, 2023, from EUR 7.8 million in the corresponding period of the previous year to EUR 9.1 million (11.3 percent of net sales). While profitability has improved, continued attention and efforts by the management are still needed in the coming years to reach the long-term target of approximately 20 percent. We aim to further enhance our operational performance to improve profitability. We will pay particular attention to improving profitability in our operating countries outside Finland.

Innofactor’s operating cash flow for the review period January 1–December 31, 2023, amounted to EUR 7.2 million (2022: 6.7) and the equity ratio at the end of the review period was 48.3 percent (2022: 44.8%). Innofactor’s strong operating cash flow supports the company’s strategic goal of profitable growth and securing a solid financial standing in all situations.


Board of Directors’ proposal on the distribution of profits

Innofactor is a growing company and intends to use its operating profit on actions promoting growth, for example, on realizing mergers. According to the dividend policy, Innofactor aims to pay a dividend regularly each year. The target is to pay about half of the result for the financial period in dividends, taking into account the company’s financial position, possible corporate reorganizations, and other development needs. For 2023, the Group’s result for the financial period was EUR 3,437,985.22. In making the proposal on the dividend, the Board of Directors takes into account the company's financial situation, profitability and near-term outlook.

At the end of the financial year 2023, the distributable assets of the Group's parent company amounted to EUR 21,277,171.60.

The Board of Directors proposes that Innofactor Plc distribute EUR 0.07 per share as a repayment of capital.

The Board of Directors further proposes that the Annual General Meeting authorize the Board to decide on a repayment of capital amounting to a maximum of EUR 2,544,058 (EUR 0.07 per share, taking into account the share issue authorization proposed to the Board of Directors).

Espoo, February 7, 2024


Board of Directors

Additional information:
CEO Sami Ensio, Innofactor Plc
tel. +358 50 584 2029


Briefings concerning the financial statement of January 1–December 31, 2023

Innofactor will publish the financial statement 2023 and interim report for October–December 2023 (Q4) on Thursday, February 8, 2023, at approximately 9:00 a.m. Finnish time.

A briefing for media, investors and analysts will be held in Finnish on the same day beginning at 10:00 via Teams. The report will be presented by CEO Sami Ensio. The corresponding video conference in English will be held at noon Finnish time. The report will be presented by CFO Antti Rokala.

Please register for the conferences beforehand by sending an e-mail to

The presentation materials will be available on Innofactor’s website after the conferences.


Financial releases in 2024

The annual report for 2023 will be published on the company’s website on Wednesday, March 6, 2024.

The Annual General Meeting will be held on Wednesday, March 27, 2024, at 9:00 Finnish time.

The schedule for financial releases in 2024 is as follows:

  • Interim report January–March 2024 (Q1) on Tuesday, April 23, 2024
  • Half-yearly report January–June 2024 (Q2) on Thursday, July 18, 2024
  • Interim report January–September 2024 (Q3) on Tuesday, October 22, 2024

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Innofactor is the leading driver of the modern digital organization in the Nordic Countries for its over 1,000 customers in commercial and public sector. Innofactor has the widest solution offering and leading know-how in the Microsoft ecosystem in the Nordics. Innofactor has about 600 enthusiastic and motivated top specialists in Finland, Sweden, Denmark and Norway. The Innofactor Plc share is listed in the technology section of the main list of NASDAQ Helsinki Oy. #ModernDigitalOrganization #HybridWork #PeopleFirst #CreatingSmiles