2021 was a year of transformation for Columbus where we reached important milestones while delivering organic revenue growth of 5%. It was the first year of the Focus23 strategy where we initiated major changes to the operation to focus and simplify the business and increase operating efficiency to move into a position as trusted digital advisor”, says Chairman of the Board, Ib Kunøe
Performance highlights for 2021
- The Columbus Group delivered a revenue of DKK 1,482 corresponding to a growth of 5%, mainly driven by:
- Top line growth in most Business Lines where Digital Commerce, Data & Analytics and Customer Experience & Engagement delivered double digit growth numbers
- Columbus Norway with a revenue growth of 47%
- Service revenue increased by 7% to DKK 1,267m
- Reported EBITDA grew by 8% to DKK 109m providing an EBITDA margin of 7.4%, mainly driven by:
- Strong development in Norway
- Improvement in the continuing business in the US
- Product revenue declined by 3.9% to DKK 215m
- Recurring Revenue improved by 12.2% to DKK 319m, constituting 22% of total revenue
- Result for the year after tax increased to DKK 61m, a growth of 158%.
- Cash flow from continued operations was negative DKK 109m. The primary reason for the decline is an instalment of bank loans of DKK 100m
- Equity increased by DKK 29m since 31 December 2020, primarily due to the positive net result. With a total equity of DKK 741m, Columbus has a solvency of 58% (2020: 43%)
Key strategic milestones during 2021
In summary, we reached important strategic milestones during 2021:
- New CEO & President for Columbus, Søren Krogh Knudsen joined Columbus in June 2021
- Divestment of To-Increase and Columbus’ Microsoft Dynamics US SMB Business Unit
- Completed a comprehensive strategic acceleration program
- Implemented a new global customer-centric operating model
- Implemented new global ERP platform
- Launched common company values
Exiting the Russian market
With a part of Columbus’ business in Russia and Ukraine, Columbus is impacted by Russia’s invasion of the sovereign state of Ukraine.
Columbus has with effect from 3 March stopped new sales and hiring in Russia, but continues to serve existing contracts. Columbus will respect all present and future sanctions.
Columbus is currently investigating various options for how to exit the Russian market.
Outlook for 2022
2022 will be the first year for Columbus to operate in the new global organizational structure with global Business Lines and local Market Units. The new structure will ensure the foundation to streamline operations in order to improve efficiency and profitability.
Based on the financial performance in 2021, current order book and pipeline forecast, our guidance for full-year 2022 is as follows:
- Revenue is expected to be in the range of DKK 1,525m – 1,625m corresponding to an organic growth of 8% to 15%, respectively, excluding Russia.
- EBITDA is expected to be in the range of DKK 120m –145m corresponding to a margin of 7.4% to 9.5%.