JANUARY -
- Net sales increased 16.5% and were
EUR 6,897 thousand (5,918) - EBITDA was
EUR 1,398 thousand (1,611), 20.3% (27.2) of net sales - Adjusted EBITDA was
EUR 1,400 thousand (1,618), 20.3% (27.3) of net sales - EBIT was
EUR 942 thousand (1,361), 13.7% (23.0) of net sales - Adjusted EBIT was
EUR 1,120 thousand (1,464), 16.2% (24.7) of net sales - Profit of the review period was
EUR 597 thousand (949), 8.7% (16.0) of net sales
1-3/2024 | 1-3/2023 | Change | 1-12/2023 | |
Net sales | 6,897 | 5,918 | 16.5 % | 26,344 |
SaaS | 4,955 | 4,505 | 10.0 % | 19,146 |
Transaction | 768 | 286 | 168.1 % | 2,265 |
Consulting and other | 1,174 | 1,127 | 4.2 % | 4,933 |
Gross margin | 5,942 | 5,164 | 15.1 % | 23,285 |
Gross margin, % of net sales | 86.1 % | 87.3 % | 88.4 % | |
EBITDA | 1,398 | 1,611 | -13.2 % | 8,215 |
EBITDA, % of net sales | 20.3 % | 27.2 % | 31.2 % | |
Adjusted EBITDA | 1,400 | 1,618 | -13.5 % | 7,951 |
Adjusted EBITDA, % of net sales | 20.3 % | 27.3 % | 30.2 % | |
EBIT | 942 | 1,361 | -30.7 % | 6,890 |
EBIT, % of net sales | 13.7 % | 23.0 % | 26.2 % | |
Adjusted EBIT | 1,120 | 1,464 | -23.5 % | 7,195 |
Adjusted EBIT, % of net sales | 16.2 % | 24.7 % | 27.3 % | |
Profit (Loss) of the period | 597 | 949 | -37.1 % | 5,349 |
Profit (Loss) of the period, % of net sales | 8.7 % | 16.0 % | 20.3 % | |
Equity ratio, % | 64.6 % | 73.7 % | 61.9 % | |
Net debt | 495 | -8,301 | 1,010 | |
Gearing, % | 1.6 % | -29.3 % | 3.3 % | |
Earnings per share (EPS) | 0.04 | 0.05 | -30.1 % | 0.29 |
Return on invested capital, % (ROIC) | 2.5 % | 4.4 % | 18.1 % | |
Return on equity, % (ROE) | 1.9 % | 3.5 % | 18.9 % | |
Number of employees at the end of the period | 220 | 182 | 20.9 % | 208 |
Outstanding shares at the end of the period | 18,562,005 | 18,538,019 | 18,562,005 | |
Average outstanding shares during the period | 18,562,005 | 18,441,633 | 18,527,914 |
Interim CEO
The first quarter of the year was, as expected, challenging in terms of organic growth. Our net sales were 6,9 M€ and the growth in net sales was 16.5%. As in previous quarters, the growth in net sales came from acquisitions. Adjusted EBIT was 1,1 M€ and the adjusted EBIT margin was 16.2%.
According to the confidence indicator of the
The number of our customers remained at the previous level. Revenue churn decreased slightly from the previous two quarters, but customers’ adjustment measures were reflected in the reduction of active users. New customer sales remained at the previous level. More recently, customers have also been purchasing more affordable solutions, such as our Duunissa.fi work time management services and HelpostiLasku services.
Nevertheless, our business is very profitable and stable. I think that now is the right time for us to continue investing in an excellent customer experience and product development. Businesses need efficient and usable ERP solutions for the future and, when demand recovers, we will be ready to increase our market share.
Group financial result and profitability
January -
Net sales for the review period were
The share of SaaS income was 71.8% (76.1), the share of transaction income 11.1% (4.8), and consulting and other income 17.0% (19.0).
EBITDA was
EBIT was
Profit for the review period was
Cash flow from operating activities was
Balance sheet, financing and investments
The balance sheet total at the end of the review period was
The Group has capitalized development expenses of
Total equity was
Equity ratio was 64.6% (61.9 at the end of the year 2023) and interest-bearing debt was
Cash and cash equivalents at the end of the review period were
Personnel
The Group number of employees was 220 (184) on
- R&D 96 employees
- Customer functions 111 employees
- Other functions, a total of 13 employees
Share-based incentive plan
The Board of Directors of
The new Performance Matching Share Plan 2024 - 2028 includes three performance periods, covering financial years 2024 - 2026, 2025 - 2027 and 2026 - 2028. The Board will decide annually on the commencement and details of a performance period. The prerequisite for participation in the plan and receiving the reward is that the person allocates freely transferable
The rewards from the plan will be paid partly in the company’s shares and partly in cash. The rewards will be paid by the end of May in the year following the end of the performance period. The cash proportion is intended for covering taxes and tax-related costs arising from the reward to the participant. In general, no reward will be paid if a participant’s employment or service in the group ends before the reward payment.
The performance criterion in the first performance period 2024 - 2026 is the Total Shareholder Return of the company’s share (TSR). The achievement of the required TSR levels will determine the proportion out of the maximum reward that will be paid to a participant. The target group of the plan consists of 4 persons (the CEO and three members of the Management Team). The gross rewards from the first performance period 2024 - 2026 correspond to the value of an approximate maximum total of 77,000
Shares and shareholders
Share capital and number of shares
The company has one series of shares, and all shares have equal rights. At the end of the review period, Lemonsoft Oyj’s share capital consisted of 18,562,005 (18,538,019) shares. The average number of outstanding shares during the review period January - March was 18,562,005 (18,441,633).
The company's share is traded on the First North Growth Market Finland marketplace maintained by
On
Authorizations of the Board of Directors
- By virtue of the authorization, the Board of Directors is authorized to decide on the repurchase of a maximum of 1,800,000 of the company’s own shares. The proposed maximum number of shares to be repurchased corresponds to approximately 9.7% of the company’s shares. The authorization includes the right to accept the company’s own shares as a pledge.
- The company’s own shares can be repurchased otherwise than in proportion to the existing shareholdings of the company’s shareholders (directed repurchase).
- The company’s own shares can be repurchased at the Nasdaq First North Growth Market Finland marketplace or outside of the marketplace.
- Own shares can be repurchased at a price formed on First North Growth Market Finland on the date of the repurchase or at a price otherwise determined by the markets.
- The shares shall be repurchased using the company’s unrestricted equity.
- The shares shall be repurchased for the purpose of financing or carrying out acquisitions or other arrangements, to implement the company’s incentive schemes, to develop the company’s capital structure, or for other purposes as decided by the Board of Directors.
- The Board of Directors shall decide on the other conditions related to the repurchase of the company’s own shares.
The authorization is valid until the 2025 Annual General Meeting, but not beyond
The Annual General Meeting authorized the Board to decide on an ordinary or bonus issue of shares and the granting of special rights (as defined in Section 1, Chapter 10 of the Limited Liability Companies Act) in one or more instalments:
- This issue may total a maximum of 2,000,000 shares corresponding to a maximum of approximately 10.8% of all shares of the company. The authorization applies to both new shares and treasury shares held by the company. The authorization may be used to fund or complete acquisitions or other business transactions, for offering share-based incentive schemes, to develop the company’s capital structure, or for other purposes decided by the Board of Directors.
- The authorization entitles the Board of Directors to resolve on all conditions of the issuance of shares and special rights entitling to shares, including the right to deviate from the shareholders’ pre-emptive right.
The authorization is in force until the next Annual General Meeting; however, no longer than until
Significant short-term risks and uncertainties
The deterioration of the economic situation, the impact of inflation and events with a global impact, such as the war in
In the longer term, the biggest challenge for our industry is the availability of skilled personnel. Success of the Group and opportunities for growth depend largely on how well we can recruit, motivate, and engage more skilled personnel and develop our expertise.
In
Risks related to information security and the IT systems of service providers are a significant factor affecting the security and continuity of the Group's business.
Success in acquisitions and related integration work is a key factor for
Dividends paid
The Annual General Meeting decided on
Events after the review period
There were no significant events after the review period.
Outlook 2024
Profit forecast for 2024
Financial information in 2024
- Half-year Report January -
June 2024 on Thursday,8 August 2024 - Interim Report January -
September 2024 on Tuesday,5 November 2024
For further information, please contact:
Interim CEO
kari.joki-hollanti@lemonsoft.fi
+358 044 730 9271
Director, M&A and IR
alpo.luostarinen@lemonsoft.fi
+358 50 911 3507
Certified Adviser:
About
Get to know us better at www.lemonsoft.fi.
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