GK Software SE today published its annual report for the year 2021, in which the company's accelerating transition to the cloud business is clearly visible.
- Annual report for 2021 shows sales growth of 11.3 percent
- EBIT rises by 64.3 percent to 17.3 million euros
- Forecast for 2022: further growth in sales and earnings
In parallel, GK’s revenue and earnings continue to grow strongly despite the ongoing global pandemic. For example, sales rose from 117.6 million euros to 130.8 million euros. This increase was achieved despite the fact that SaaS contracts are being concluded with a large number of new customers, where revenue is naturally deferred to the next years.
EBITDA grew by 40.4 percent to 26.8 million euros, corresponding to an EBITDA margin on sales of 20.5 percent. EBIT grew even more strongly by 64.3 percent, reaching 17.3 million euros (2020 = 10.5 million euros). This resulted in GK’s net profit more than doubling year-on-year to 13.3 million euros and earnings per share of 5.98 euros (weighted). As a result of the strong net profit and a capital increase in March 2021, the equity ratio rose from 44.0 percent to 58.0 percent.
In addition to continued strong business with existing customers, GK was able to attract 15 new contracts in its core business, seven of which were SaaS agreements. This significantly contributed to the result of 2021. The new customers in 2021 represent a total of up to 44,665 installations in 6,120 stores on four continents.
In 2021, the Company generated nearly two-thirds recurring (contracted) or repeatable (non-contracted, but based on experience highly probable) revenue. Revenues associated with the cloud business (subscription and cloud operational support) more than quadrupled from €5.3 million to €22.9 million in one year.
Based on the achieved results and trends of the first quarter of 2022, the Executive Board is remaining with its mid-term forecast until 2023, in which it expects sales of between €160 million and €175 million with an EBIT margin (on sales) of 15 percent. For 2022, the GK Software Group is expected to achieve a similar increase in revenue as in the fiscal year 2021 and a further slight improvement in EBIT towards achieving the mid-term target for 2023.
The annual report for the fiscal year 2021 is available at the following links: