Entersoft: 50% increase in the group’s pre-tax profits in the nine months

Entersoft continues to grow its revenue in the first nine months of 2021 compared to the previous corresponding period.

At Group level in the 9 months of 2021, revenues amounted to 17.39 million euros compared to 11.61 million in the corresponding period last year, recording an increase of 50%, for the third quarter of 2021 amounted to 4.81 million euros compared to 3, 58 million in the corresponding period last year.

Earnings before interest and taxes (EBIT) of the Group in the 9 months 2021 amounted to 4.87 million euros, compared to 3.26 million euros in the corresponding period last year, recording an increase of 49%, for the third quarter 2021 amounted to 0.58 million compared to 0.56 million in the corresponding period last year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) of the Group in the 9 months of 2021 amounted to 6.16 million, compared to 4.30 million euros in the corresponding period last year, recording an increase of 43%, for the third quarter of 2021 amounted to 0.88 million compared to 0.92 million in the corresponding period last year.

The pre-tax profits of the Group in the 9 months of 2021 increased at the same rate and amounted to 4.71 million euros, compared to 3.15 million euros in the corresponding period last year, recording an increase of 50%, for the third quarter of 2021 amounted to 0.55 million euros compared to 0.53 million in the corresponding period last year.

The Group’s cash and cash equivalents continued to grow at the end of the nine months to approximately € 10.54 million (€ 8.12 million in net cash, after deducting € 2.42 million in short-term borrowing which increased by 2 million in the third quarter of 2021). The Company’s cash includes the unallocated amount of 1.03 million euros out of the total 3.79 million euros raised from the company’s capital increase during its recent public offering and listing on the ATHEX Main Market on 10 / 03/2020. This amount may not be used for any purpose other than those expressly stated above in the Prospectus.

Most of the increase in revenue is due to organic growth for all products and services of the Group, while recent acquisitions have contributed to a smaller percentage. For the first time in the current nine months, the results from the acquisitions of Plexis ERP activity by the company Computer Life as well as the revenues of Optimum have been incorporated, while Wedia has been consolidated only for a period of six months.

The Company will continue the effort for a strong growth course combining new acquisitions and organic growth. At the same time, it is planning a dynamic entry into new markets with investments in products that were recently decided by its Management. Specifically, investments have begun, through the subsidiary Wedia, in new products for Business to Business eCommerce but also for demanding Business to Consumer (B2C) eShops, in combination with the Backoffice CRM and Analytics products of Entersoft. At the same time, Entersoft is investing in a new product for Personnel Management, Timekeeping and Payroll and is preparing to enter this emerging market.

Effects of Covid-19 spread

Although at the beginning of the financial year 2020 with the appearance of the COVID ‐ 19 pandemic and the first lockdown of the economy, there was intense uncertainty about the financial results, the Group quickly exceeded the initial negative forecasts and achieved an increase in in terms of both revenue and profit fronts. The general culture of Digital Transformation strengthened during the pandemic is expected to lead to higher business investment in the coming years.

The Management of the company in recent years attaches great importance to the liquidity of the Group which is strong and this gives it the opportunity to soberly plan its future actions. It monitors developments on a daily basis and takes all necessary measures to protect both the health of its executives and the continuation of its business activities. The company’s infrastructure is perfect and ready to support teleworking of all staff in collaboration with customers.

Of course, it always remains possible for the COVID ‐ 19 pandemic to have further negative effects on the global economy for 2021 and to negatively affect the Group’s activities or to reduce the demand for its products and services. Each of these developments could have an impact on the financial results of 2021. However, our experience so far in managing the pandemic during the year 2020, makes us optimistic about achieving the goals set for 2021, as well as it also happened in 2020.

Impact of the energy crisis

The global energy crisis of 2021 is characterized by the continuing shortage of energy around the world, but also by the jump in prices, affecting countries such as the United Kingdom, China and, among others, the European Union. Greece experienced a significant increase in prices for all forms of energy. The Company and the Group being labor-intensive companies are not strongly affected by the energy crisis as energy costs are low. Nevertheless, the Management of the company monitors the developments on a daily basis and is ready to take all the necessary measures that may be needed. But our experience so far makes us optimistic about achieving the goals set for 2021.