{"id":11317,"date":"2021-02-26T15:51:27","date_gmt":"2021-02-26T13:51:27","guid":{"rendered":"https:\/\/investors.bittnet.ro\/current-and-historical-financial-results\/preliminary-financial-results-for-fiscal-year-2020\/7-indicative-budget-2021\/"},"modified":"2021-02-26T17:59:01","modified_gmt":"2021-02-26T15:59:01","slug":"7-indicative-budget-2021","status":"publish","type":"page","link":"https:\/\/investors.bittnet.ro\/en\/current-and-historical-financial-results\/4q-2020\/7-indicative-budget-2021\/","title":{"rendered":"7. Indicative Budget 2021"},"content":{"rendered":"

Indicative <\/span><\/b>Budget<\/span><\/b> 2021<\/span><\/b>\u00a0<\/span><\/h3>\n<\/div><\/div>
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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.<\/span>\u00a0<\/span><\/p>\n<\/div><\/div>

<\/div>
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Element P&L (<\/span><\/b>figures<\/span><\/b> in <\/span><\/b>thousands<\/span><\/b> RON)<\/span><\/b>\u00a0<\/span><\/td>\nTraining<\/span><\/b>\u00a0<\/span><\/td>\nIntegra<\/span><\/b>tion<\/span><\/b>\u00a0<\/span><\/td>\nConsolidated<\/span><\/b> Gr<\/span><\/b>o<\/span><\/b>up ’21<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n
Revenues from contracts with clients<\/span><\/b>\u00a0<\/span><\/td>\n19,682\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n137,373\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n157,056\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span>Direct expenses<\/span>\u00a0<\/span><\/td>\n(7,875)<\/span>\u00a0<\/span><\/td>\n(114,584)<\/span>\u00a0<\/span><\/td>\n(122,458)<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Gross margin<\/span><\/b>\u00a0<\/span><\/td>\n12,793\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n30,939\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n43,733\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n
Indirect <\/span><\/b>expenses<\/span><\/b>\u00a0<\/span><\/td>\n(8,071)<\/span><\/b>\u00a0<\/span><\/td>\n(19,263)<\/span><\/b>\u00a0<\/span><\/td>\n(27,334)<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span>Hu<\/span>man<\/span> Resources<\/span>\u00a0<\/span><\/td>\n(5,477)<\/span>\u00a0<\/span><\/td>\n(15,426)<\/span>\u00a0<\/span><\/td>\n(20,902)<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Administrative costs<\/span>\u00a0<\/span><\/td>\n(2,595)<\/span>\u00a0<\/span><\/td>\n(3,838)<\/span>\u00a0<\/span><\/td>\n(6,432)<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
EBITDA<\/span><\/b>\u00a0<\/span><\/td>\n4,723\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n11,677\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n16,400\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n
Depreciation & amortization<\/span>\u00a0<\/span><\/td>\n(679)<\/span>\u00a0<\/span><\/td>\n(462)<\/span>\u00a0<\/span><\/td>\n(1,140)<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Operational <\/span><\/b>Profit <\/span><\/b>(EBIT)<\/span><\/b>\u00a0<\/span><\/td>\n4,045\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n11,216\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n15,261\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span>Financial Result<\/span>\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(897)<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
\u00a0<\/span>SOP adjustment (IFRS)<\/span>\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n(1,640)<\/span>\u00a0<\/span><\/td>\n<\/tr>\n
Gross profit<\/span><\/b>\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n\u00a0<\/span><\/td>\n12,724\u00a0<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div><\/div>
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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:<\/span>\u00a0<\/span><\/p>\n

    \n
  1. Bittnet Training continues organic growth, without acquisitions and without synergies with eLearning Company, at the historical growth rate;<\/span>\u00a0<\/span><\/li>\n
  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.);<\/span>\u00a0<\/span><\/li>\n
  3. Equatorial returns to 2019 revenues, without growth, without recording revenues from games;<\/span>\u00a0<\/span><\/li>\n
  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;<\/span>\u00a0<\/span><\/li>\n
  5. Cost of Sales (COGS) – Direct Expenses – grows at a rate 10% faster than sales;<\/span>\u00a0<\/span><\/li>\n
  6. The gross margin therefore increases by only 1.5x compared to sales, although historically this multiplier is 3-6x;<\/span>\u00a0<\/span><\/li>\n
  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;<\/span>\u00a0<\/span><\/li>\n
  8. Administrative expenses increase by 10%, versus the historical downward trend;<\/span>\u00a0<\/span><\/li>\n
  9. Softbinator and The eLearning Company manage only 80% of the assumed profitability for 2021;<\/span>\u00a0<\/span><\/li>\n
  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.<\/span>\u00a0<\/span><\/li>\n<\/ol>\n<\/div><\/div><\/div><\/div><\/div>