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Financial Results for Q4 2021 Just Released

Business 28 January 2022 By

In Q4, we saw continued strong growth within the Life Sciences International business while performance within the Private & Public segment remained weak. Once again, our Winning Solutions strategy gained traction, as it now constitutes 55% of NNIT’s revenue compared to 46% in the same period last year. Refer here for the full company announcement re the financial results for Q4 2021.

CEO Pär Fors comments: ‘Q4 performed in line with expectations. International Life Sciences growth continued, and Winning Solutions performed satisfactorily. P&P was impacted by a weaker performance within the public segment. The new organisational structure and leadership are now focused on enhancing growth and profitability. The organisation has worked hard throughout the year to set the foundation for the new journey, and we are cautiously optimistic for the year to come.’

  • Group revenue decreased to DKK 738m, down 1.5% (-6.7% organic) from Q4 2020.
  • Life Sciences (excluding Novo Nordisk Group) grew to DKK 262m, up 29% (7% organic).
  • Winning Solutions now constitutes 55% of the total revenue (46% in Q4 2020).

Net result is a profit of DKK 2m, (DKK 18m in Q4 2020)

Selected business highlights

  • By the end of 2021, NNIT announced a major organisational change to create three distinct business units: Cloud and Digital Solutions, Life Sciences Solutions, Hybrid Cloud Solutions. The strategic rationale lies both in a diverse development in our customer base requiring a unique approach in each market segment and the need to speed up business development further in close alignment with our customer’s needs. This also enables a more transparent view of business unit performance regarding maximising revenue potential and cost optimisation.
  • Major wins: Outsourcing contract with the NordicsRegional Security Coordinator to deliver critical IT operation services. The value of the contract is expected to represent a low triple-digit DKK million amount. Outsourcing contract with e-nettet for infrastructure services and support concerning e-nettet’s portfolio of applications. The value of the contract is expected to represent a low triple-digit DKK million amount.
  • In Q4 special items was significantly impacted by a DKK 29m impairment of a developed asset and DKK 27m of costs stemming from the continuous efforts related to efficiency improvements. Special items in 2022 are estimated at around DKK 100m related to optimisation costs concerning office space and offshoring setup.
  • End 2021, NNIT was named ‘Most attractive workplace in Denmark for IT consultants 2021′ in the IT-company rank survey performed by the largest Danish publisher of media about technology and science ‘Teknologiens Mediehus’.

Outlook for 2022

Guidance as of January 28:

  • Revenue growth of 2-5%
  • Operating profit margin before special items of around 5%
  • NNIT’s transformation into the new structure mentioned above will potentially lead to special items up to the same level as in 2021