Columbus: Q4 2023 momentum shows good start to its 'New Heights' strategy
Today, Columbus released its full-year 2023 results. In 2023, revenue grew to DKK 1,540m, corresponding to 11% growth YoY, just below its guided range of DKK 1,550-1,600m due to currency headwinds. However, the company exceeded expectations on organic growth with 14.8% growth for the full year (vs. 8-12% 2023 guidance in constant currency), driven by a strong momentum in Q4 2023. All business lines delivered growth.
In 2023, EBITDA came in at DKK 118m (28% growth), just below the guided range of DKK 119-139m. However, the margin was 7.6%, within the guided range (guidance of 7.4%–9.0%). One of the most important KPIs in a consultancy business, efficiency, improved to 67% in 2023 vs. 63% in 2022. Although Q4 is seasonally strong, the margin improved to 9.6% in Q4 2023 (up from 8.1% in Q4 2022).
Cash flow from operations showed a positive development with DKK 77m (up from DKK 27.4m in 2022). This corresponds to a cash conversion to EBITDA of 65% (30% in 2022).
With 2024 being the first full year in the new strategy period, 'New Heights', running until 2026, the first guidance year will always be important to investors. In 2024, the company guides organic revenue growth in the range of 8-10%. The company indicates that there is still some reluctance in IT investments on the customer side due to general macroeconomic uncertainties. However, the management also stated on the teleconference that they have not seen any slowdown in the business in the first months of 2024. Looking at the EBITDA margin, Columbus expects a solid improvement, as the EBITDA margin is expected to rise to 9-10% (up from 7.6% in 2023).
Next week on Wednesday, 20 March 2024 at 10:15, we will host a virtual live event with Columbus’ CEO & President Søren Krogh Knudsen and Group CFO Brian Iversen. The management will present the 2023 results and new 2024 guidance. Sign up for the virtual live event and ask your questions here: https://www.inderes.dk/videos/columbus-presentation-of-annual-report-2023
Disclaimer: HC Andersen Capital receives payment from Columbus for a Digital IR/Corporate Visibility subscription agreement. /Kasper Lihn 14:50, 13 March 2024.
Columbus
Columbus is an IT company. The company offers consultation and solutions in digital transformation, cloud-based solutions, analysis programs, and various IoT solutions. Operations are conducted on a global level, with customers that are mainly found in the retail, food, and manufacturing industries. The company was founded in 1990 and is headquartered in Ballerup, Denmark.
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