BITTNET SYSTEMS S.A. (hereinafter referred to as the “Company” / “Issuer” / “Group”) informs about the availability of financial results for fiscal year 2021 (preliminary, unaudited), attached to this current report. The preliminary report for 2021, which includes the Letter from the CEO, the operational activities of the two divisions in 2021, the analysis of the financial results, as well as the budget proposal for current year is available on the company’s website dedicated to investors relation, at the following link:
https://investors.bittnet.ro/current-and-historical-financial-results/4q-2021/
The report is available in the form of a web page, easy to follow and navigate only to the relevant sections for each reader. Investors and analysts can also download excel results from the website. Below the company presents the key financial indicators for 2021:
- Revenue: RON 112.59 million (+3% vs 2020)
- Gross margin: RON 24.47 million (+14% vs 2020)
- Operating profit: RON 7.34 million (+24% vs 2020)
- Gross profit: RON 16.17 million
- Cash position at 31.12.2021: RON 23.40 million
- Equity: RON 55.23 million lei (+99% vs 2020)
Summary of preliminary financial results for 2021:
For 2021, Bittnet reports consolidated revenues of RON 112.59 million and an operating profit of RON 7.34 million, which represents an increase of 24% vs 2020 in terms of operating results. The element that differentiates the results of 2021 from the previous ones is the contribution of the financial profit to the gross profit: if in previous years the financial activity generates expenses, which were deducted from the operating result, in 2021, the investments made in the previous years paid off – generating financial profits that increased the gross profit from the current activity: RON 9.1 million in financial profit together with RON 7.3 million operating profit. The consolidated net result of the Group increased by 1307% to the value of RON 14.42 million.
Bittnet Group achieved an operational cash flow of over RON 4.24 million (the 5th consecutive year with a positive CF, 2016 being the only year with a negative value). The financing activity was approximately neutral, the year starting with a round of “equity”financing worth RON 10.4 million. During 2021, the bond issue of BNET22 (amount RON 4.5 million) and bank loans of RON 1.9 million were fully repaid, as well as total interest amount of RON 3.2 million.
In 2021, the investment activity increased by another RON 5 million compared to 2020 – during the year our group made total investments of almost RON 14.2 million. Even so, the treasury remained almost neutral compared to the beginning of the year, with a cash position at 31.12.2021 approximately equal to that at the beginning of the year: RON 23.40 million vs RON 24.8 million.
M&A activity in 2021:
In 2021, Computer Learning Center (CLC) joined the Education Division of the Group. CLC is a company that delivers IT courses / trainings with a focus on the cybersecurity area.
In the Technology Division, during the year, 4 new companies joined the Group:
- Transactions with ISEC Associates and Global Resolution Experts mark a major new step in the development and expansion of our business, by creating a cybersecurity hub within the Bittnet group.
- ITPrepared, acquisition completed in Q3, is the first investment in the area of managed infrastructure services.
- Nenos Software & Nonlinear are 2 companies that consolidate our group position in the software development area. Through these acquisitions, the group also entered the artificial intelligence sector.
Conference for analysts & investors:
The conference for the presentation of the preliminary financial results will take place on March 1st, 2022, starting with 11:00, Bucharest time (EET) in English. Access link available HERE.
The presentation of the annual results, as well as the plans for next years will take place, as every year, within the “BNET Investor Day” event, scheduled for April 15th, 2022