Nixu Corporation’s Half-Year Financial Report 2022: Positive business development continued with 7% growth
This release is a summary of the Nixu Corporation’s January 1 – June 30, 2022 Half-Year Financial report. The complete report is attached to this release as a pdf-file. It is also available on the company website at https://www.nixu.com/H12022.
Highlights for January–June 2022
• Revenue: EUR 28,580 thousand (26,720), change 7%.
• EBITDA: EUR 377 thousand (805), share of revenue: 1% (3%).
• Adjusted EBITDA: EUR 352 thousand (1,198), share of revenue: 1% (5%).
• EBIT: EUR -553 thousand (-154), share of revenue: -2% (-1%).
• Nixu appointed Teemu Salmi as the company´s new CEO.
• The company extended the maturity of its financing.
Financial Guidance for 2022
Nixu estimates its revenue to grow and its EBITDA to increase from 2021.
Key Figures
| EUR thousand | 1.1.-30.6.2022 | 1.1.-30.6.2021 | 1.1.-31.12.2021 |
| Revenue | 28 580 | 26 720 | 51 809 |
| Result of the period | -757 | -452 | -984 |
| Earnings per share (EUR) | -0.10 | -0.06 | -0.13 |
| EBITDA | 377 | 805 | 1 473 |
| EBITDA. % of net sales | 1.3% | 3.0% | 2.8% |
| Adjusted EBITDA1 | 352 | 1 198 | 1 929 |
| Adjusted EBITDA. % of net sales1 | 1.2% | 4.5% | 3.7% |
| EBIT | -553 | -154 | -444 |
| EBIT. % of net sales | -1.9% | -0.6% | -0.9% |
| Adjusted EBIT1 | -578 | 238 | 13 |
| Adjusted EBIT %1 | -2.0% | 0.9% | 0.0% |
1 Adjustment items are material items outside the ordinary course of business, which are costs related to reorganization and business combinations. January-June 2022 EBITDA included the non-recurring items EUR 25 (-393) thousand.
| EUR thousand | 30.6.2022 | 30.6.2021 | 31.12.2021 |
| Equity ratio, % | 30.6% | 32.9% | 31.5% |
| Net interest-bearing debt | 3 879 | 2 156 | 3 237 |
| Net gearing, % | 32,4 % | 16,0 % | 25,3 % |
The figures presented in the half-year financial report have not been audited.
Interim CEO Valtteri Peltomäki:
Our growth was strong in the first half of the year. Revenue was up 7% year-on-year. Our intake of client orders once again saw double-digit growth compared with the previous year, which was especially evident in the growth figures for May–June.
Sales performance was successful in all our businesses, with particularly brisk sales of Managed Services. We made new agreements in our main business countries – Finland, Sweden and Denmark. The fastest growth in the consultancy business and Managed Services was seen in Sweden and Denmark. Going forward, we will continue to pursue faster growth in these two countries. Our strong sales have been supported by, for instance, our cross-border operating model as well as good customer loyalty and satisfaction, in which our NPS stood at 65.
Our profitability weakened year-on-year. There was a positive turnaround in managed services during the second quarter, but the first half as a whole still fell short of the comparison period. This year, we have invested heavily in sales of Managed Services, thanks to which we will be able to fully utilize our capacity. We expect that the profitability of Managed Services will improve thanks to the intake of new agreements and that it will rise into the black in the second half of the year.
Personnel and subcontracting expenses grew in relation to revenue growth. Also absences caused by the coronavirus pandemic contributed to this, but the main reason was new recruitments. We carried out several measures to ensure that we have a strong team to deliver growth.
Our aim is to support the digital security of supply and cyber self-sufficiency of society. In June, we announced that, at the request of the Finnish Ministry of Defense, Nixu had assembled a cybersecurity ecosystem consisting of companies, universities and research institutes for the F-35 fighter project. The project involves both direct and indirect industrial cooperation between the fighter manufacturer and Finnish companies. Our follow-up agreement with Valtori on the development of cloud security for public-sector organizations is another example of the growing need for information security and its significance in promoting the cloud transformation.
Our revenue growth rate is impacted by general economic uncertainty, which has slowed down decision-making on long-term investments among some customers. Nixu does not engage in business in Russia, Belarus or Ukraine, and Russian cyberattacks have not to date had a significant impact on cybersecurity purchases. On the other hand, due to the geopolitical situation resulting from the war in Ukraine, everyone is talking about cybersecurity and cyber preparedness, and organizations have begun to develop their preparedness.
We are an attractive employer in the cyber sector. We were able to recruit new people during the review period despite the fierce competition for talent. We focus on the job satisfaction of our employees by offering a flexible hybrid work model, good opportunities for professional development and well-rounded support for well-being at work. We engage in constant cooperation with educational institutions to attract new talent to the sector. In addition, we have joined forces with the internationally respected SANS Institute to offer world-class cybersecurity training to organizations in Finland.
Nixu’s new CEO Teemu Salmi says:
I assumed the position of CEO at the beginning of August. I can only say that I am pleased and proud to join Nixu’s great team. The excellent services we offer to our customers are very important and relevant in the current geopolitical situation. The cybersecurity sector is growing in all its dimensions, and we have set our sights on profitable growth that outpaces the market. To succeed in this, we must update and polish our current strategy. Many aspects of our day-to-day operations are already in good shape – we will focus on developing all those things in which we could perform even better. In addition to profitable growth, our focus areas will also include safeguarding strengthened cash flow. This will give us the potential and means to build our future.
During the rest of 2022, we will update our strategy – we will present it at the beginning of 2023. I am confident that with our amazing employees and the trust we have gained from our customers, nothing can stop Nixu from becoming one of the largest providers of cybersecurity services in Northern Europe.
Financial Reporting in 2022
Nixu publishes, in addition to its financial statements and annual report, its half-year financial report, CEO’s review, revenue information, EBITDA and adjusted EBITDA for the first and third quarters, and stock exchange and press releases in accordance with Nixu’s disclosure policy. These releases and a range of other information for investors is available on the company website at https://www.nixu. com/investors.
13.10.2022 Q3/2022
CEO’s review, revenue information, EBITDA and adjusted EBITDA
News conference
A news conference will be available for analysts, investors and media on Thursday, August 11, 2022, at 9:30 AM EEST at Sanomatalo, Studio Eero, Helsinki. The event will be available through a live webcast at https:// nixu.videosync.fi/2022-h1-results
Nixu Corporation
Attachment: Nixu Corporation Half-year Financial report 1.1.–30.6.2022
Further information:
CEO Teemu Salmi, Nixu Corporation
Telephone: +46 70 656 9557, e-mail: teemu.salmi@nixu.com
Distribution:
Nasdaq Helsinki
Main media
www.Nixu.com
Nixu in Brief: Nixu is a cybersecurity services company on a mission to keep the digital society running. Our passion is to help organizations embrace digitalization securely. Partnering with our clients we provide practical solutions for ensuring business continuity, an easy access to digital services and data protection. We aim to provide the best workplace to our team of about 400 cybersecurity professionals with a hands-on attitude. With Nordic roots we serve enterprise clients worldwide. Nixu shares are listed on the Nasdaq Helsinki stock exchange.
www.nixu.com