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, reported consolidated revenues of 45.32 million lei in 2021 and a gross profit of 3.46 million lei, an increase by 25% compared to 2020.

During the reporting period, the Connections Group recorded a 24% increase in revenue compared to the previous year, amid new projects under the software and RPA service lines, as well as the increase in the volume of software consulting and outsourcing services offered together with Outsourcing Support Services SRL and Brusch Services SRL. Gross profit increased by 25% compared to 2020, and, at the same time, there was a change in the composition of the main contributors to the group’s revenue structure. Thus, the line of services that represents software development reached a share of contribution in revenues of 22%, and hyper-automation services (RPA) represented, in 2021, 6 per cent of total revenues.

At the same time, Connections Consult exceeded the financial estimation for 2021, mentioned in the memorandum of private placement and in the September 2021 technical listing memorandum, in terms of revenues (21% increase compared to the estimated figures) and gross profit (9 per cent increase compared to the estimated figures).

As a result, the 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 already reached another important goal in the strategy presented to investors at the time of the private placement: the creation of the US subsidiary, Connections Consult LLC. Considering the division of shares (10:1 ratio) and the budget of revenues and expenses above the initial estimates from July 2021 (at the date of the private placement), the Group is optimistic about the year 2022.

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In a highly 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 a complex landscape, the Connections Group maintains its energy, perseverance and positive estimations for 2022.

The financial information presented in the annual financial report is in line with Connections’ business development strategy, which is a proof that the Group has the ability and takes the commitment to increase the value of its assets.

The year 2021 meant for the company Connections Consult SA the strengthening of the financial position in the Balance Sheet. The company recorded an increase in the value of easily convertible assets in cash, as shown in the comparative balance sheet 2020 versus 2021. The increase in current assets is mainly generated by two important factors: capital inflow as a result of listing on the AeRO market and a careful management of working capital.

At the end of 2021, the issuer registered a balance of Current Assets in the amount of 19,775,687 lei, of which 7,9 million lei was 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 estimation includes the results generated by all group companies, including Brusch Services – a company acquired by the Group in 2021.