Netcompany publishes Interim report for Q1 2021

Netcompany realised a solid start to 2021 with growth of 23% and adjusted EBITA margin of 25.3%. Netcompany maintains expectations for 2021.

In Q1 2021, revenue grew organically by 23% in constant currencies to DKK 855.8m compared to the same period last year. In reported currencies revenue grew 22.9%.

Adjusted EBITA grew 31.9% to DKK 216.3m corresponding to an adjusted EBITA margin of 25.3% compared to 23.6% in Q1 2020.

Average number of full-time employees grew by 524, equal to an increase of 20.3% to 3,109 compared to 2,585 in Q1 2020.

Free cash flow remained strong and increased by DKK 37.8m to DKK 173.8m normalised for on account income tax payments.

A share buyback programme of DKK 50m will be initiated in connection with the release of this quarterly statement to be executed during Q2 2021.

Revenue visibility for 2021 increased by 29.7% to DKK 2,765.4m compared to DKK 2,131.8m at the same time last year.

For 2021, Netcompany maintains expectations to revenue growth in constant currencies of between 15% and 20% and adjusted EBITA margin of between 23% and 25%. However, based on the performance realised in Q1 2021 it is more likely that full year performance will end in the upper end of the guided range than in the lower end of the guided range. 

“In Q1 2021, we grew 23% and continued our strong momentum from last year and delivered high quality in all our projects in our different geographies.

It humbles me deeply to see how our employees have embraced a changed working environment and I am amazed by the performance delivered together with our customers.

A continued strong focus on talent attraction has resulted in more than 350 new Netcompany employees joining during the last quarter bringing the total number of employees close to 3.200.

With the COVID-19 restrictions gradually being lifted I am looking forward to spending more time on location with all our customers and employees throughout the Group again.

I remain confident that Netcompany is on the right path and well positioned to become a Northern European market leader within IT Services.” - André Rogaczewski, CEO and Co-founder

Performance highlights for Q1 2021

  • Revenue increased by 22.9% to DKK 855.1m in reported currencies and by 23% in constant currencies.
  • Gross profit margin was 38.1% against 39.5% in Q1 2020. 
  • Adjusted EBITA increased 31.9% and yielded a margin of 25.3%.
  • Free cash flow remained strong and improved by 5.8% to DKK 100.6m.
  • Fair value adjustment of the investment in the Netherlands reflects a decrease of the total purchase price and impacted net profit positively by DKK 49.5m.
  • Cash conversion rate was 48.7%. Adjusted for the fair value adjustment to the contingent purchase price and on account income tax payments conversion rate was 110.6%.
  • Debt leverage to 12 months rolling adjusted EBITA was 0.7.

For additional information, please contact:

André Rogaczewski, CEO, +45 70 13 14 40
Thomas Johansen, CFO, +45 51 19 32 24

Interim report Q1 2021


About Netcompany

Netcompany was founded in 2000 and has its headquarters in Copenhagen Denmark. Today, we are an international company with more than 7400 employees working from 17 countries. We serve a wide array of customers in their digital transformation journeys in public and private sectors across Europe.

Media enquiries David Tarp Head of PR and Public Affairs +45 2485 2453