2024/04/23
Growth at Gloster: over 10 billion in turnover in 2023
Regular SUPPORT
A Gloster Infocommunication Public Limited Company (company registration number: 13-10-042012; registered office: 2142 Nagytarcsa, Csonka János utca 1/A A/2. ép.; hereinafter referred to as the Company, Gloster) informs the following to the Honoured Investors pursuant to the applicable laws and the General Business Rules of the Budapest Stock Exchange.
Growth at Gloster: over 10 billion in turnover in 2023
Published by 2023 report of the listed IT company
Nagytarcsa, 23.04.2024 - Gloster, a provider of services to more than 20 countries on 4 continents with 274 employees in 8 locations, increased its adjusted net sales by 75 percent to HUF 10.3 billion in 2023, with foreign sales revenue increasing by 130 percent to HUF 4.6 billion. Compared to the previous year, adjusted EBITDA increased by 29 percent to HUF 976 million.
Exceeding its export targets and setting a new adjusted revenue record in 2023 (HUF 10 319 million +75%) compared to previous years, the emerging international IT services company listed on the Hungarian stock exchange is growing rapidly. The growth continues to be impressive: domestic sales closed at HUF 3.9 billion, up 46%, with adjusted foreign currency-adjusted sales closing at HUF 4.6 billion, up 130%.
| Title | 2022 | 2023 | Change | 2023 / 2022 % | 2022 | 2023 | Change | 2023 / 2022 % |
| IFRS | IFRS | IFRS | IFRS | corrected* | corrected** | corrected by | corrected by | |
| Net sales sales revenue | 5 908 | 8 995 | 3 087 | +52% | 5 908 | 10 319 | 4 411 | +75% |
| of which: domestic | 3 889 | 5 510 | 1 621 | +42% | 3 889 | 5 670 | 1 781 | +46% |
| of which: foreign | 2 019 | 3 485 | 1 466 | +73% | 2 019 | 4 649 | 2 630 | +130% |
| of which: regular | 3 855 | 5 180 | 1 325 | +34% | 3 855 | 6 302 | 2 447 | +63% |
| EBITDA | 698 | 730 | 32 | +5% | 759 | 976 | 217 | +29% |
| Profit after tax | 376 | 305 | -71 | -19% | ||||
| EBITDA/Revenue % | 11,8% | 8,1% | 12,8% | 9,5% | ||||
| Export turnover share | 34,2% | 38,7% | 34,2% | 45,0% | ||||
| Regular turnover | 65,2% | 57,6% | 65,2% | 61,1% |
All data in millions of HUF, consolidated but unaudited. The audit is ongoing.
* Correction factors 2022: foundation reorganisation 4.000 eFt; KIVA reclassification to salary costs 56.683 eFt
** Correction factors 2023: reorganisation of the foundation 28.850 eFt; KIVA reclassification to wage costs 109.574 eFt, P92 revenue and EBITDA calculated for the full year 2023
The biggest acquisition in Gloster's history contributed to the growth: the contract for the acquisition of P92 IT Solutions Kft. was signed on 15 June 2023. As the transaction closed only on 3 August 2023, but the sale and purchase agreement stipulates that the parties will share the entire 2023 profits in line with the new ownership structure that has been established, the growth figures adjusted by the P92 time-proportional figures, full-year turnover and EBITDA are also included in the just published report.
In 2023, the Group exceeded the targets for the share of export turnover set in its 2026 strategy. According to the just published report, adjusted net sales of the IT company listed on the Standard Market of the Budapest Stock Exchange increased by 75% to HUF 10.3 billion, with foreign sales revenue up 130% compared to 2022. The resulting HUF 4.6 bn in foreign revenue represents 45% of total revenue, which is already higher than the 30-40% target set in the long-term strategy.
The share of recurring revenue also increased by 63% to HUF 6.3 billion in 2023, higher than the strategic targets set earlier. This brings the Gloster Group's share of revenue from long-term renewable contracts to 61.1% of total revenue, down from 2022, due to an increase in one-off project revenue in the Systems Integration business.
Growing revenue was accompanied by expanding adjusted EBITDA, which reached HUF 976 million in 2023 (IFRS EBITDA was HUF 730 million), up 29% year-on-year.
The profit after tax and EBITDA to sales ratio were reduced by one-off expenses related to the integration of the 10 acquired companies, the IFRS transition and the preparation for the listing change. The growth driver in 2023 was again driven by the International Software Development business, whose net sales grew by +137% including the latest acquisition, significantly improving the profitability of the group as a whole. The company's Systems Integration business also had a successful year, with revenue up 56%, but Gloster Cloud also had a strong period, with 19% growth despite the fact that its revenue comes mainly from the currently rather stagnant domestic market.
| Net turnover by business line | 2022 | 2023 | Change | 2023/2022 % | 2023 corrected* | Change corrected by | 2023/2022 % |
| Systems Integration Business Unit | 2 601 | 4 070 | 1 469 | +56% | 4 070 | 1 469 | +56% |
| Cloud business | 1 342 | 1 596 | 254 | +19% | 1 596 | 254 | +19% |
| International software development business | 1 965 | 3 329 | 1 364 | +69% | 4 653 | 2 688 | +137% |
| Total | 5 908 | 8 995 | 3 087 | +52% | 10 319 | 4 411 | +75% |
Consolidated, not unaudited figures in millions of HUF; *corrected: P92 for full year on a full-year basis
A Gloster also significantly increased its headcount with the acquisition of P92, as the the total number of employees in the group reached 274 at the end of the year, up from 199 employees registered last year.
"In a difficult year, the Gloster team has once again performed outstandingly. We have completed the company's largest acquisition to date, a stock market reclassification, we have transitioned to IFRS reporting, and we have also been able to grow organically. All credit to the team, I think investors have a right to feel that they invested in the right growth story when they became shareholders. We are moving forward with our 2026 strategy, to which Gloster has consistently adhered." - said Viktor Szekeres, Chairman of the Board of Directors of Gloster. He underlined that the current figures also show that the indicators that the Company's management considers as supportive, i.e. growth indicators (such as the share of regular and export sales) are pulling the group's key performance indicators (EBITDA, total net sales).
"In addition to implementing the Gloster Level Up programme in 2024, which will save HUF 200 million per year, we are also investing significant energy in further developing our foreign markets. The aim is to open up to new premium markets such as the DACH region, the USA, the UK and Scandinavia. The results of the programme are expected to have a visible impact on profit after tax." - Mr Szekeres stressed. He added that experience to date shows that the experience gained in the German market provides Gloster with an excellent basis for meeting the high service standards expected in the selected markets.
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About Gloster
Gloster is a broad spectrum IT service provider listed on the Hungarian stock exchange. In its more than 20-year history, it has evolved from a hardware garage company to a software-focused international IT mid-sized company. Its founder, one of the owners and chairman of the board is Viktor Szekeres. Thanks to its intensive acquisition strategy, Gloster has successfully closed ten acquisitions since 2018 and expanded its activities into systems integration, IT security, public cloud solutions and international software development services. The group now has a team of nearly 274 people, with adjusted revenue before audit of 2023 of HUF 10.3 billion and EBITDA of HUF 976 million. Gloster continues to seek IT companies whose acquisitions will help it achieve its strategic goals, while continuing to integrate solutions that will make its existing portfolio more efficient.
Nagytarcsa, 23 April 2024. Gloster Infocommunication Plc.
More information:
dr. Eszter Bassola
Investors relations officer
bassola.eszter@gloster.hu
