Each year, the Revenue and Expenditure Budget is approved in April by the General Meeting of Shareholders. Below are the working hypotheses of the management for 2021 – the indicative proposal that will be presented to the shareholders for the GMS.
| Element P&L (figures in thousands RON) | Training | Integration | Consolidated Group ’21 |
| Revenues from contracts with clients | 19,682 | 137,373 | 157,056 |
| Direct expenses | (7,875) | (114,584) | (122,458) |
| Gross margin | 12,793 | 30,939 | 43,733 |
| Indirect expenses | (8,071) | (19,263) | (27,334) |
| Human Resources | (5,477) | (15,426) | (20,902) |
| Administrative costs | (2,595) | (3,838) | (6,432) |
| EBITDA | 4,723 | 11,677 | 16,400 |
| Depreciation & amortization | (679) | (462) | (1,140) |
| Operational Profit (EBIT) | 4,045 | 11,216 | 15,261 |
| Financial Result | (897) | ||
| SOP adjustment (IFRS) | (1,640) | ||
| Gross profit | 12,724 |
The assumptions on which this budget is built are, we consider, conservative, as always, containing a lot of “margin of safety”, and are presented below:
- Bittnet Training continues organic growth, without acquisitions and without synergies with eLearning Company, at the historical growth rate;
- Dendrio delivers in addition to last year only the projects already won in 2020 and not delivered, having again a year similar to 2020 (pandemic year, adaptation to realities, etc.);
- Equatorial returns to 2019 revenues, without growth, without recording revenues from games;
- Elian does not register any increase compared to last year, except for one project, of 300,000 euros, about which we have a degree of confidence that it will be won;
- Cost of Sales (COGS) – Direct Expenses – grows at a rate 10% faster than sales;
- The gross margin therefore increases by only 1.5x compared to sales, although historically this multiplier is 3-6x;
- We significantly expand the teams (15% headcount, 12% hourly price) without generating additional sales compared to what is provided according to points 1-4;
- Administrative expenses increase by 10%, versus the historical downward trend;
- Softbinator and The eLearning Company manage only 80% of the assumed profitability for 2021;
- The offer of preferential shares is only 50% successful, so we only reduce by half the cost of interest paid to bondholders. We are unable to carry out any other capital increase operation.