Netcompany Group A/S
CSE:NETC
Netcompany Group A/S
Founded in Denmark in 1999, Netcompany Group A/S has carved a niche for itself as a dynamic player in the IT services arena, offering digital transformation solutions that meet the ever-evolving needs of businesses and government entities alike. The firm provides end-to-end IT services, encompassing everything from consulting to implementation and management of advanced technological infrastructure. With a sharp focus on digitalization, Netcompany harnesses technology to enhance efficiency, streamline operations, and drive strategic innovations for its clients. As organizations across the globe increasingly embrace digital transformation, Netcompany has positioned itself as a vital partner, turning complex IT challenges into seamless solutions.
Financially, Netcompany thrives by harnessing a robust business model centered around project-based contracts and long-term client relationships. This approach allows the company to generate revenue through dedicated consultancy fees and continuous service agreements. By focusing on public sector clients and large-scale enterprises, Netcompany taps into a steady stream of government-funded projects and enterprise digitization efforts, ensuring a predictable revenue flow. With its strategic focus on sustainable growth, the company invests in expanding its footprint beyond Denmark, targeting international markets in Northern Europe to bolster its business. Netcompany’s ability to remain agile in a rapidly advancing technological landscape underscores its potential for continued success in the digital services industry.
Revenue Growth: Netcompany's Q1 2025 revenue grew by 9.1% year-on-year, driven by strong performance across most segments except the UK.
Margin Improvement: Gross profit rose 16.1% with a margin of 29.5%, up from 27.8% a year ago, and adjusted EBITDA margin increased to 17.6%.
Cash Flow Turnaround: Free cash flow improved significantly to DKK 67.9 million in Q1 2025 from negative DKK 4.9 million last year.
SDC Acquisition Progress: The SDC transaction is on track to close by mid-2025, with regulatory approvals granted and integration plans in place.
Guidance Reiterated: Management reaffirmed full-year 2025 guidance of 5–10% revenue growth and 16–19% adjusted EBITDA margin, excluding SDC impact.
Strong License Revenue: License revenues surged to DKK 46 million in Q1, compared to DKK 2.5 million last year, reflecting the growing role of products and platforms.
Share Buyback: Company plans to reinitiate its share buyback program after SDC closes, targeting DKK 2 billion by the end of 2026.
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