Entersoft plans its continued growth in the coming years, both organically and through acquisitions of smaller companies, according to what the company’s management said when informing analysts about the financial year 2021, which ended with a 45% increase in revenue and 53 % in operating profitability.
“Our goal is to double as a company in the next three to four years. We will look to do this as soon as possible; but the acquisitions take time to take effect,” said Entersoft CEO Antonis Kotzamanidis.
The head of the listed IT company noted that the growth will be stable over 20% in the coming years and will come from 50% organic and 50% from acquisitions of companies. “Every few months we announce a new takeover agreement. We are in discussions with a number of smaller companies and we hope to have news in the first half of 2022,” he said.
According to Entersoft executives, the company has strong cash and cash equivalents of 10.3 million euros, while there is the possibility of bank lending if and when needed to implement larger acquisitions. The goal is development both in Greece and in Romania, which according to Mr. Kotzamanidis presents strong prospects.
“Especially abroad, the focus is on the UAE and on the markets of Romania and Bulgaria. Especially in Romania, we are close to having a significant presence. We believe that one or two acquisitions can make us an important player in Romania. is an important market outside Greece “, said the financial director of Entersoft, Grigoris Tsourtos.
It is noted that last year Entersoft recorded a 45% increase in revenue, which came half from organic growth and half from the acquisitions of Optimum and Wedia. In the meantime, the company proceeded to the establishment of a software implementation center in Patras and Larissa after the acquisition of the company LogOn.
“It is a given that as we grow older we will need more staff. That is why we are developing centers in cities outside Athens and Thessaloniki, to increase human resources beyond the two major urban centers,” said Mr. Kotzamanidis.
A market of 1.2 billion euros in Greece
Referring to the prospects of the Greek market in the coming years, Mr. Kotzamanidis noted that 400 million euros are expected from the new NSRF for the subsidy of the digital transformation of Greek companies and the 180 million euro program of the Recovery Fund that will be financed by voucher the purchase of business software. “Given that we are talking about subsidies of 50% of investments, a market of 1.2 billion euros is potentially created in our country in the coming years,” he said.
In addition to the new acquisitions, the company continues to invest in new products for Business to Business eCommerce but also for demanding Business to Consumer (B2C eShops) in combination with its existing Backoffice CRM and Analytics products. 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 with the first revenues from new activities expected in the fourth quarter of 2022.
The Romanian market
Referring to the Romanian market, Mr. Kotzamanidis estimated that it has strong growth prospects and similar characteristics to those of our country. “The Romanian market is about 70% of Greece, but it is fragmented. It reminds us of Greece before the euro era and we are very optimistic about its growth in the coming years,” he said.
Entersoft last year hired a consultant to investigate the Romanian market and is now in discussions with a number of potential acquisition targets. “We believe that the talks will have ended within six months and if we close the first agreement, we will move on to others in both Romania and Bulgaria,” Kotzamanidis added.
As it became known yesterday, the Board of Directors will propose the distribution of a dividend of 0.09 cents per share, increased by 50% compared to the corresponding period of the previous period.
Read also:
Entersoft: Profit before taxes increased by 51% in 2021
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
