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Epsilon Net: Explosion by 222% of net profits in 2021

Strong results were recorded in 2021 by the Epsilon Net Group of Companies, which continued to consistently implement its investment plan, having as axes:

A) Achieving strong growth rates. In particular, in 2021 the Turnover increased by 133% and the Net Profit after taxes by 222%. This impressive performance in the financial figures of the Group, came both through the significant rate of organic growth (over 50%), and from the contribution of targeted acquisitions.

B) The significant increase of the active established customer base with more than 100,000 customers, to whom it provides specialized solutions, suitably adapted to the size of each company and to the special needs of each vertical market.

C) The expansion of the portfolio of solutions it offers with integrated systems Einvoicing, Accounting, ERP, CRM, RETAIL, WMS, MOBILE, MIS, PAYROL, HRMS, PMS in combination with the services of a certified Electronic invoicing Provider and myDATA, providing all in one solutions to end customers

D) His even more active participation in the ongoing digital transformation of the private sector.

The Group, which is the largest business software provider in the Greek market, further strengthens its leading position, with continuous development & evolution of innovative applications, technological solutions and specialized services, while along with targeted acquisitions accelerates its strategic goal for continuous expansion of its share. in the IT market while achieving high economic performance.

According to the company, after the successful completion and operational integration of the strategic acquisitions of the companies DATA COMMUNICATION SA, SINGULARLOGIC SA, as well as the creation of Epsilon SingularLogic, the Group, in the closed year, proceeded to the acquisition majority stake in Technolife, iQom and PCS, significantly expanding its overall customer base and portfolio of solutions in vertical markets. In January 2022, it also acquired 100% of CSA, a specialized company with a leading position in the development of information systems for Pharmacies and Drugstores.

Basic Financial Figures

According to the Consolidated Financial Statements for the year 2021, prepared based on the International Financial Reporting Standards (IFRS), the main financial figures of the Epsilon Net Group are as follows:

Epsilon Net: Explosion by 222% of net profits in 2021

It should be noted that the significant expansion of sizes, through the significant acquisitions of the previous period is not reflected in its entirety in the financial results of 2021, since the participation of Epsilon SingularLogic in the Group sizes only concerns 10 months of the year, Technolife 7 months ( June 2021 acquisition), iQom 4 months (September 2021 acquisition), PCS 2 months (November 2021 acquisition), while the recently acquired CSA Pharmakon has no share in the 2021 results (January 2022 acquisition).

More specifically, the Group’s Turnover in 2021 amounted to € 50.51 million compared to € 21.70 million in 2020, recording an increase of 132.80%, the Profit before taxes, interest and depreciation (EBITDA) of the Group amounted to 15 , € 09 million compared to € 5.23 million in 2020, recording an increase of 188.33%, while Profits after taxes increased by 221.86% amounting to € 10.78 million compared to € 3.35 million in 2020.

Regarding the parent company, for 2021 its Turnover amounted to € 18.95 million compared to € 14.62 million in 2020, recording an increase of 29.67%, Earnings before taxes, interest and depreciation (EBITDA) were formed to € 8.10 million compared to € 3.36 million in 2020, improved by 141.00%, while Profits after taxes increased by 192.76% amounting to € 5.64 million against € 1.93 million. € in 2020.

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The Cash of the Group in 2021 amounted to € 23.35 millionthe long-term borrowing amounts to € 8.91 million, the short-term borrowing to € 6.80 million while the positive net cash (Net Cash) to € 5.48 million despite the implementation of the significant acquisitions of the previous year.

The Group’s Equity in 2021 amounted to € 41.45 million.

Key factors for the increase in size and the continuous expansion of the Group’s market share were:

– strategic investments in state-of-the-art web and cloud systems technologies that ensure remote work,

– the dominant position of the company in the field of electronic invoicing and myDATA electronic books of AADE as well as

– and significant acquisitions that create large synergies and economies of scale.

The business model that the Group successfully follows, focuses on sectors with high growth prospects and high added value. It should be noted in particular (something that is consistently reflected throughout the Group’s course to date) that the development strategy is based on the business model of selling (to a large extent) standardized product as well as web & cloud solutions based on the SaaS model. This strategy maximizes the benefits of increasing turnover, achieving continuous improvement of profit margin and net profitability.

Epsilon Net, consistent in its shareholder reward policy, will proceed with a dividend distribution this year as well, the amount of which will be based on the distributed profits and will be decided at the Ordinary General Meeting. of shareholders.

Goals and Prospects for 2022

The management estimates that in 2022 the Group will play a leading role in the digital transformation of the private sector of the Greek economy, the wide acceptance of all products and services of the Group will be further expanded and the Turnover will continue to grow rapidly due to organic growth, but also new acquisitions.

The main objectives of the business plan for 2022 include:

1. the continuation of the excellent course of the “Epsilon SMART” Web application series for electronic invoicing and the adaptation of micro-enterprises & freelancers to myDATA

2. the utilization of the enhanced know-how of the Group in the business software for medium & large enterprises (ERP, CRM, WMS, MOBILE, MIS, in combination with the solutions of certified Electronic invoicing Provider and myDATA) as well as the specialized applications for vertical markets (Retail , Gas Stations, Hotel Software, Pharmacies & Drugstores)

3. further strengthening its existing leadership position in payroll and HRMS systems

4. support through its subsidiary PCS, FINTECH solutions in the areas of systems for investment firms, investment management and insurance companies

5. the implementation of a new targeted program of strategic partnerships and acquisitions with emphasis on the development of group solutions in new vertical markets

6. the combined utilization of the aid & financial tools for the digital transformation of the enterprises, first of the Development Fund and then of the Development Law and the NSRF 2021-2027, which are estimated to contribute to the acceleration of the implementation of the investments in new information systems.

For the year 2022, the Group’s management estimates that the consolidated sales will exceed € 75 million while the EBITDA margin will move at levels above 30% on turnover.

Mr. Ioannis MichosFounder of the Group, Chairman of the Board & CEO of Epsilon Net, commenting on the results, made the following statement:

“2021 was a milestone year for the large Epsilon Net family, not only for what we have achieved, but also because it allows us to start a new creative cycle in Greece and abroad. Guided by a human-centered approach, corporate vision and dedication to our customers, we consistently continue to create the next day together.We methodically build a Group based on the all in one solution creating a strong working relationship with our customers.We contribute decisively with innovative solutions to the digital transformation of the Greek economy and entrepreneurship.

At the same time, the significant increase of our customer base, is the starting point for achieving a significant degree of annual recurring income, increasing positive operating cash flows, which are the basis for the continuous development of our Group.

Our strategy was, is and will be to produce daily value for our people, our partners and our shareholders. The results of 2021 give us the strength and the responsibility to continue our development course as the largest software Group for businesses in Greece “.

Source: Capital

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