Growth at Gloster: over 10 billion in turnover in 2023

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Gloster Infokommunikációs Nyilvánosan Működő Részvénytársaság (company registration number: 13-10-042012; registered office: 2142 Nagytarcsa, Csonka János utca 1/A A/2.; hereinafter: Company, Gloster) hereby informs its esteemed investors of the following in accordance with the relevant legislation and the General Business Rules of the Budapest Stock Exchange.

Growth at Gloster: over 10 billion in turnover in 2023

Listed IT company publishes its 2023 report

Nagytarcsa, April 23, 2024. - Gloster, which serves more than 20 countries on four continents with 274 employees at eight locations, saw its adjusted net sales increase by 75% to HUF 10.3 billion in 2023, with revenue from foreign sales growing by 130% to HUF 4.6 billion. Compared to the previous year, adjusted EBITDA grew by 29% to HUF 976 million.

Exceeding its export targets and setting a new adjusted sales revenue record in 2023 (HUF 10,319 million, +75%) compared to previous years, the domestic stock exchange-listed, emerging international IT service provider is growing rapidly. Growth remains remarkable: domestic sales closed at HUF 3.9 billion, an increase of 46%, while adjusted foreign currency-based foreign sales closed at HUF 4.6 billion, an even greater increase of 130%.  

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All figures are in millions of forints, consolidated but unaudited. The audit is currently in progress.

* Adjustment factors for 2022: foundation restructuring HUF 4,000,000; KIVA reclassification to wage costs HUF 56,683,000

** Adjustment factors for 2023: foundation/reorganization HUF 28,850,000; KIVA reclassification to wage costs HUF 109,574,000, P92 revenue and EBITDA calculated for the entire year 2023.

Gloster's largest acquisition to date contributed significantly to this growth: the contract for the acquisition of P92 IT Solutions Kft. was signed by the parties on June 15, 2023. As the transaction was only closed on August 3, 2023, but according to the purchase agreement, the parties will share the total profit for 2023 in accordance with the new ownership structure, the company has also included growth figures adjusted for P92 pro rata figures, total annual turnover, and EBITDA in the report now published.

In 2023, the Group exceeded the export revenue targets set out in its 2026 strategy. According to the recently published report, the adjusted net sales revenue of the IT company listed on the Standard Market of the Budapest Stock Exchange increased by 75% to HUF 10.3 billion, with revenue from foreign sales showing a 130% increase compared to 2022. The resulting foreign sales revenue of HUF 4.6 billion accounts for 45% of total sales revenue, which is already higher than the 30-40% target set out in the long-term strategy.

Similarly, regular sales revenue rose by 63% to HUF 6.3 billion in 2023, exceeding the previously set strategic targets. As a result, the Gloster Group's long-term, renewable contract revenues reached 61.1% of total revenues, which is lower than the ratio achieved in 2022 due to the increase in one-off project revenues in the System Integration business line.

The increase in revenue was accompanied by growth in adjusted EBITDA: Gloster achieved HUF 976 million in this line in 2023 (EBITDA according to IFRS was HUF 730 million), which is 29% higher than in the previous year.

Taxed profit and EBITDA proportional to sales revenue were reduced by one-off expenses related to the integration of the 10 acquired companies, the transition to IFRS, and preparations for the change in stock exchange category. The growth engine in 2023 was again the International Software Development business unit, whose net sales revenue grew by +137%, including the latest acquisition, significantly improving the profitability of the entire group.  The company's System Integration business also had a successful year, with revenues growing by 56%, while the Gloster Cloud business also had a strong period, posting 19% growth despite the fact that its revenues come primarily from the currently stagnant domestic market.

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Consolidated, unaudited figures in millions of Hungarian forints; *adjusted: calculated based on P92's full-year sales revenue

With the acquisition of P92, Gloster also significantly increased its headcount, with the total number of employees in the group reaching 274 at the end of the year, compared to 199 last year.

"The Gloster team has once again performed outstandingly in a difficult year. We have completed the company's largest acquisition to date, a stock market category change, and switched to IFRS reporting, while also achieving organic growth. All credit goes to the team, and I believe investors are right to feel that they have invested in the right growth storywhen they became our shareholders. We are continuing to move forward with our 2026 strategy, to which Gloster remains committed,"said Viktor Szekeres, Chairman of the Board of Directors of Gloster. He emphasized that the current figures also show that the indicators supported by the company's management, i.e., those that predict growth (such as the ratio of regular and export sales), drive the group's main performance indicators (EBITDA, total net sales).

"In addition to implementing the Gloster Level Up program in 2024, which will save us HUF 200 million annually, we are also devoting significant energy to further developing our foreign markets. The goal is to open up new, premium markets such as the DACH region, the US, the UK, and Scandinavia. The results of the program are expected to have a visible impact on after-tax earnings," emphasized Viktor Szekeres. He added that experience to date shows that the experience gained in the German market provides an excellent foundation for Gloster to meet the high service standards expected in the designated markets.

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About Gloster

Gloster is a broad-spectrum IT service provider listed on the Hungarian stock exchange. Over its more than 20-year history, it has grown from a hardware garage company into a software-focused international mid-market IT company. Its founder, co-owner, and chairman of the board is Viktor Szekeres. Thanks to its intensive acquisition strategy, Gloster has successfully completed ten acquisitions since 2018 and expanded its activities into the areas of system integration, IT security, public cloud-based solutions, and international software development services. The group currently employs a team of nearly 274 people, with adjusted pre-audit revenue of HUF 10.3 billion and EBITDA of HUF 976 million in 2023. Gloster continues to seek IT companies whose acquisition will help it achieve its strategic goals, while continuously integrating solutions that make its existing portfolio more efficient.

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Nagytarcsa, 2024. april 23.

Gloster Infocommunications Plc.

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Further information:

Dr Eszter Bassola

Investor Relations Officer

bassola.eszter@gloster.hu