Netcompany publishes Interim report for the 12 months ended 31 December 2020 and Annual Report 2020

Netcompany grew revenue by 15.2% and realised 28.9% margin and continued to improve free cash flow in Q4 2020.

In Q4 2020, Netcompany grew revenue in constant currencies to DKK 781.6m - equal to 16.5% growth compared to the same period last year. In reported currencies revenue grew 15.2%.

Adjusted EBITA grew 24.3% to DKK 223.5m compared to 179.9m in Q4 2019, corresponding to an adjusted EBITA margin of 28.9%.

Average number of full-time employees grew 528 from 2,468 in Q4 2019 to 2,996 in Q4 2020, corresponding to a growth of 21.4% - all organic.

Free cash flow remained strong and increased by 78.8% from DKK 116.8m in Q4 2019 to DKK 208.9m in Q4 2020.

For the full year 2020, Netcompany realised revenue growth of 15.7% and grew revenue to DKK 2,838.6m. Adjusted EBITA margin was 26.2%.

Free cash flow for the year increased by DKK 121.3m to DKK 557.0m yielding a normalised cash conversion ratio of 103%.

Revenue visibility increased by 16.6% to DKK 2,131.7m for 2021 compared to DKK 1,827.8m for 2020.

For 2021, Netcompany expects revenue growth in constant currencies of between 15-20%, still with a degree of uncertainty related to the continued impact from COVID-19.
Adjusted EBITA margin is expected to be around 23-25%.

"In Q4, we continued to deliver high quality on our projects and added new and important project wins in both Norway and in the UK in addition to ongoing strong performance in our Danish and Dutch market units. As a result, we continued our growth in Q4, despite challenging times, and realised close to 29% in adjusted EBITA margin combined with strong free cash flow.

We have succeeded in attracting top talent to our Group and I am pleased to welcome another 300 new Netcompany employees in the last quarter of 2020 bringing the total number of employees above 3,000.

In 2021, we will continue to support the digital transformation of societies and realise the benefits together with our valued customers. I am confident that we are on the right path and well positioned to make another step closer to our ambition of becoming a Northern European leader within IT services."

André Rogaczewski, Netcompany CEO and Co-founder


Q4 Performance highlights

  • Revenue increased by 15.2% to DKK 772.7m in reported currencies and by 16.5% in constant currencies.
  • Gross profit margin was 42.4% against 42.3% in Q4 2019.
  • Adjusted EBITA increased 24.3% and yielded a margin of 28.9%.
  • Free cash flow remained strong and improved by 78.8% to DKK 208.9m.
  • Fair value adjustment of the investment in the Netherlands reflects the increase of the total purchase price and impacted net profit negatively by DKK 141.3m.
  • Cash conversion rate was 893.4%. Adjusted for the fair value adjustment to the contingent purchase price and normalised for tax payment, conversion rate was 127.9%.
  • Debt leverage to 12 months rolling adjusted EBITA was 0.6.

For additional information, please contact

André Rogaczewski, CEO, +45 70 13 14 40

Thomas Johansen, CFO, +45 51 19 32 24


Annual report 2020

Interim report Q4 2020

Interim report Q4 2020