Indicative Budget 2021 

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: 

  1. Bittnet Training continues organic growth, without acquisitions and without synergies with eLearning Company, at the historical growth rate; 
  2. 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.); 
  3. Equatorial returns to 2019 revenues, without growth, without recording revenues from games; 
  4. 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; 
  5. Cost of Sales (COGS) – Direct Expenses – grows at a rate 10% faster than sales; 
  6. The gross margin therefore increases by only 1.5x compared to sales, although historically this multiplier is 3-6x; 
  7. We significantly expand the teams (15% headcount, 12% hourly price) without generating additional sales compared to what is provided according to points 1-4; 
  8. Administrative expenses increase by 10%, versus the historical downward trend; 
  9. Softbinator and The eLearning Company manage only 80% of the assumed profitability for 2021; 
  10. 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.