Connections Consult, revenues up 24% in 2021
Connections Consult (CC), a group of digital transformation companies listed on the main market of the Bucharest Stock Exchange, recorded consolidated revenues of 45.32 million lei in 2021 and a gross profit of 3.46 million lei, an increase of 25% compared to 2020.
During the period under review, the Connexions Group recorded a 24% increase in revenue compared to the previous year, thanks to new projects in the software and RPA service lines, as well as the increase in the volume of consulting and software outsourcing services offered with Outsourcing Support Services SRL and Brusch Services SRL. Gross profit increased by 25% compared to 2020, and, at the same time, a change in the composition of the main contributors to the group’s revenue structure. Thus, the line of services represented by software development reached a contribution share in the revenues of 22%and hyper-automation services (RPA) represented, in 2021, 6 percent total income.
At the same time, Connections Consult exceeded the financial estimate for 2021, mentioned in the private placement memorandum and in the SEO technical note of September 2021, in terms of turnover (up 21% compared to the figures estimated) and gross margin (9 percent increase over estimated figures).
As a result, Connections Group maintained its commitment to its investors and continued to invest resources in developing potential service lines to maximize the value of the group’s net assets. At the time of publication of the 2021 Annual Financial Report, Connections had already achieved another important objective in the strategy presented to investors during the private placement: the creation of the American subsidiary, Connections Consult LLC. Considering the share split (10:1 ratio) and the revenue and expense budget higher than the initial estimates of July 2021 (at the date of the private placement), the Group is optimistic for the year 2022.
In a very volatile international and local market context, with many uncertainties and difficulties to manage: the war in Ukraine, inflation, the potential food crisis, the energy crisis and the supply chain crisis, therefore, in complex landscape, the Connections Group maintains its energy, perseverance and positive outlook for 2022.
The financial information presented in the annual financial report is in line with Connections’ business development strategy, which is proof that the Group has the capacity and is committed to increasing the value of its assets.
The year 2021 meant for the company Connections Consult SA the strengthening of the financial situation on the balance sheet. The company recorded an increase in the value of assets easily convertible into cash, as shown in the comparative balance sheet 2020 compared to 2021. The increase in current assets is mainly generated by two important factors: the inflow of capital following the AeRO market listing and prudent working capital management.
At the end of 2021, the issuer recorded a balance of current assets in the amount of 19,775,687 lei, of which 7.9 million lei were represented by cash.
According to the budget for 2022, Connections SA aims to achieve a consolidated turnover of 59 million lei and an EBITDA of 5.64 million lei. This estimate includes the results generated by all group companies, including Brusch Services – a company acquired by the Group in 2021.