Real Consulting: 34% jump in EBITDA in 2021

2021 was a reference point for Real Consulting, as the company managed to largely achieve its strategic goals, as well as a significant increase in its size and profitability, due to the contribution of new technological solutions in its portfolio of services and from its organic growth, as highlighted in the corporate announcement for the results of last year.

Despite the negative effects of the pandemic on both the Greek and the international economy, the management of the company, implementing its plan, managed during the closing year not only to minimize the negative effects of the phenomenon on its business activity but also to achieve increase sales and profitability for the Company.

Real Consulting made sales of € 21,853 thousand, compared to sales of € 19,681 thousand in the previous year, showing an increase of 11% compared to the previous year. Its main source of revenue comes from the Services with revenues of € 15,719 thousand in 2021 (71.93% of total revenues) compared to € 13,131 thousand in 2020 (66.72% of total revenues). It is followed by the Software License Maintenance segment with revenues of € 2,872 thousand in 2021 and € 2,690 thousand in 2020 (13.14% and 13.67% of total sales respectively). The remaining 14.93% (€ 3,262 thousand) and 19.61% (€ 3,860 thousand) for the years 2021 and 2020 respectively relate to the activity sectors of hardware, cloud software and other revenues.

The gross results of the Company amounted to € 7,967 thousand (2020: € 6,700 thousand), achieving a gross profit margin of 36% (2020: 34%). The gross profits of the Company showed an upward trend compared to the previous year, due to the increase in sales in income categories whose profit margin is higher (more specifically, the “Services” category whose sales ratio increased compared to 2020 by 18%, while the ratio of Hardware and Cloud Software compared to 2020 decreased by 17%).

The results before taxes, interest and depreciation of the Company amounted to € 3,266 thousand (2020: € 2,446 thousand), showing an increase of 34% compared to the previous year, which is due to the further development and expansion of its operations in its sector. installation and operation of in-house software (ERP) software, as well as due to the effective management of all the main categories of organic expenses in relation to the realized sales expansion.

The net results before taxes of the Company amounted to € 2,480 thousand (2020: € 1,634 thousand), showing an increase of 52% compared to the previous year. The realization of improved results before taxes during the closing year for the Company in relation to the previous year is due to the significant increase in the results before taxes, interest and depreciation of the Company (increase 34% compared to the year 2020) as well as due to the reduction of financial expenses of the Company by 17% compared to the previous year (2021: € 306 thousand, 2020: € 369 thousand).

The total cash and cash equivalents of the Company amounted to € 6,070 thousand (2020: € 1,253 thousand), equity amounted to € 14,834 thousand (2020: € 8,070 thousand) and net debt to € 1,269 thousand (2020: € 7,328 thousand). The leverage ratio of the Company amounted to 7.88% (2020: 47.59%), showing a significant improvement over the previous year mainly due to the reduction of net debt by € 6,059 thousand and an increase in equity by € 6,764 thousand. .

The important events of the Company for 2021, which laid the foundations for the development of its business plans, are presented below:

On August 6, 2021, the trading of the total of 21,500,000 common registered shares of the Company began, with a nominal value of € 0.40 each in the general trading category of the Alternative Market, ΕΝ.Α. PLUS, of the Athens Stock Exchange (“EN.A. PLUS”).

On October 19, 2021, the Company entered into an agreement with CLOUDIDEAS GmbH for the acquisition of 60% of its shares. CLOUDIDEAS GmbH is a German company, which specializes in providing services related to the Salesforce platform, the leading international customer relationship management platform. On 01.04.2022, the transaction was completed in accordance with the terms provided in the contract. The acquisition price of CLOUDIDEAS GmbH was finally set at € 741 thousand against the initially agreed price of € 800 thousand, based on the more specific terms and conditions for the formation of the net worth of CLOUDIDEAS GmbH on 31.12.2021.

On December 23, 2021, the Company absorbed 100% of its subsidiary under the name “” REAL COMPETENCE CENTER LEROS SOCIETE ANONYME “. the intended simplification of the structure of the Group.

Prospects for 2022

The management of the Company is extremely optimistic about the prospects of 2022 and focuses not only on maintaining, but also on improving its strong position and historical role in the field of information technology. High demand for IT products and services is expected, mainly due to the digital transformation of the public sector and the business transformation of the private sector companies, a fact that will strengthen the financial size of the company. The Company intends to proceed with the acquisition of European companies that specialize in services on the software and products it already has, with the aim of penetrating the markets of Central and Northern Europe, taking advantage of the know-how it has and the lower operating costs it has. in Greece (compared to its competitors operating abroad and having significantly higher costs of payroll and other operating expenses). In addition, the goals of the Company include the acquisition of companies in Greece and Cyprus, which are active in specialized (niche) services complementary to our Company, in order to create economies and synergies that will further enhance its financial results. The above acquisitions, which the Company plans to make, aim at its expansion abroad, at the increase of the Company’s market share in Greece and at its penetration in new markets and its activity in new products. The main priority of the Management is the creation of added value for the shareholders, its uninterrupted business development as well as the strengthening of its position in the sector.