Izertis presents its results for 2020, with net profit increased by a factor of 5.4
Our company has presented our audited results for 2020, in which it recorded a net profit that has increased by a factor of 5.4 compared to the previous year, reaching a total of €1.3 million. In a year marked by the crisis unleashed by Covid 19, our company has generated a turnover of €50.7 million, which constitutes an increase of 9.5% compared with the previous year, far above the 1.1% predicted for the sector in 2020 by the Spanish Association of Consulting Companies (Asociación Española de Empresas de Consultoría).
These figures have been ratified by its adjusted EBITDA, which, in turn, increased by 14.2%, ascending to 5.3 million - a 10.4% increase compared to the turnover, 43 base points above the previous year.
The net financial debt, in turn, remained fixed at €9.9 million, which represents a reduction of 30.9% from the €14.4 million in 2019. This means the ratio of net financial debt / adjusted EBITDA decreases, dropping from 3.1 in 2019 to 1.9 in 2020.
The data on cash generation are also noteworthy, with a flow of operating funds of 7.2 million, compared to the 4.6 million of the previous year. Thus, the company continues to reinforce its balance in order to meet the demands of daily operations, while also pursuing its plans for inorganic growth. As for liquidity, a strong upward trend has continued in recent years, since, starting from €0.8 million in 2018, it rose to 4.2 million in 2019 and then to 15.0 million in 2020.
Our president, Pablo Martín, has declared that: “even though 2020 was marked by a health crisis and macroeconomic crisis at the global level, we have registered a very positive performance in all our business lines, with a growth in turnover much higher than the sector in general. Moreover, in this period, we have achieved a very significant improvement in the indicators of liquidity, solvency and cash generation. As a result, in spite of the uncertainty due to Covid in 2020, we maintain the objectives of the Strategic Plan 2020-2023 unchanged.”
Along the same lines, Martín stressed that “cash generation is as important for the company as meeting its goals for turnover or adjusted EBITDA. In 2020, we have significantly increased cash flows from operating activities, which have risen by 59.0%.” In 2019, the ratio of cash flows to the net financial debt was 25.8%, while in 2020 this ratio almost triples to 74.8%.
Evolution of Izertis in 2020
Its listing on the Spanish stock exchange and the favorable response that it has received from the investment community are enabling Izertis to arrange new channels of financing, which it will dedicate to consolidating and expanding its business. An example of this is the €5 million capital increase, as well as the initiation of a program of notes of up to 30 million through the Alternative Market for Fixed-Income Securities (MARF), which were announced in November and December 2020, respectively.
One of the results of this strategy, which combines international expansion, organic growth and inorganic growth, has been the incorporation of new companies into the group in 2020. Early last year, BC Sistemas and the production unit of Ositel were the first to join Izertis as reinforcements for the Unified Communications market.
Next came SLA Consulting and Solid Gear Projects: the former joins as a specialist in optimization of resources and IT solutions. Solid Gear Projects, in turn, enables Izertis to expand its software engineering department, with a team that is highly specialized in mobile application development.
Finally, Izertis rounded off the year with the adhesion of the Spanish company that serves as a reference in salesforce, TicMind and also of the consulting firm specialized in document management and software development in the eHealth sector, Queres.
At the international level, Izertis has business operations in an increasing number of countries - already more than 50. In 2020, Canada, Andorra and Cape Verde, among others, have stood out.
Growth targets for 2023, unaffected by Covid
We continue to pursue our growth objectives set for 2023 in spite of the crisis, and it forecasts a turnover of €125 million and an adjusted EBITDA of €12.5 million.
“2020 has been a satisfactory year, not only in figures, but also in business development. The size of the organizations and companies that are being incorporated into our portfolio is gradually growing, and what is more, these are clients who have come to stay. We already work for more than half of the Ibex 35 companies, providing technological solutions focused on their digital transformation, in addition to bolstering contracts with important national and regional public administrations,” he explains.
Stock market evolution in 2020
Last year, our shares were revaluated by 89.5%, closing at €7.54 - compared to €3.98 in 2019. As for volume of shares traded, securities with a total value of €11.6 million changed hands. Since its entry in BME Growth (formerly, MAB) 16 months ago, its share price has increased more than 455%, until reaching a current capitalization of €214 million.