Wirtek A/S: Revised 2024 financial expectations and Accelerate25XL strategy update

Company Announcement no. 17/2024
10 December 2024

This announcement contains inside information concerning 2024 expectations and the Accelerate25XL strategy

The Board of Directors for Wirtek A/S has today reviewed an updated financial prognosis for fiscal year 2024. Based on this review, the Board of Directors revises the 2024 financial expectations as follows:

• Revenue for 2024 is expected in the range of DKK 72.5m - 73.5m, down from the previously announced DKK 74.0m - 78m.
• EBITDA for 2024 is expected in the range of DKK 5.0m - 6.0m, down from previously announced DKK 6.5m - 7.5m. EBITDA adjusted for special items from the Seluxit and Pragmasoft acquisitions is expected in the range DKK 6.0m - 7.0m.

Challenging market conditions continue to affect Wirtek's Services business. While the Energy business unit is experiencing rapid growth, other business units within Services are facing either stagnant growth or a decline in revenue.

Wirtek has signed new contracts and is seeing promising growth in the new Solutions business, driven by the recent Seluxit and Pragmasoft acquisitions. The company anticipates these acquisitions will significantly contribute to its success in the coming years.

Goals from Wirtek's Accelerate25XL strategy are postponed

To meet the financial goals outlined in the Accelerate25XL strategy, Wirtek would need to acquire a sizeable and highly profitable IT company within the coming months. Throughout this year, Wirtek has engaged in multiple discussions with potential acquisition candidates. However, given Wirtek's current market value, acquiring a large IT company would lead to significant dilution of existing shareholders. The Board of Directors believes this approach would not serve the best interests of the shareholders.

Furthermore, with the recent acquisitions of Pragmasoft and Seluxit, Wirtek is transitioning from a pure Services business to one that also includes scalable Solutions, incorporating IoT hardware and recurring revenue streams. Realizing the full scalability potential of these Solutions will require short-term investments to unlock medium- and long-term profitable growth.

Considering these factors, the Board of Directors has decided to postpone the Accelerate25XL goals and conduct a comprehensive strategy review in the second half of 2025.

Further information

• Kent Mousten Sørensen, Chairman, Wirtek A/S, Phone: +45 2125 9001
• Michael Aaen, CEO, Wirtek A/S, Phone: +45 2529 7575, E-mail: ir@wirtek.com
  Niels Jernes Vej 10, 9220 Aalborg, Denmark, www.wirtek.com
• Grant Thornton, Certified Advisor, Phone: +45 3311 0020

About Wirtek

Wirtek A/S is a Danish IT Services and Solutions company that provides software development, testing, and consultancy services to help clients worldwide. Wirtek specializes in Digitalization, Energy, Workforce & Facility Management, Wireless Communication & Automation, and Trade & E-commerce.

At Wirtek, we prioritize building long-term client relationships, with some lasting over a decade. We believe that quality partnerships are just as important as software quality in achieving our client's goals. Established in 2001, we have offices in Denmark, Romania and Portugal and have been listed on Nasdaq First North Copenhagen since 2006. 

Ticker Code: WIRTEK (DK0060040913)