Annual Report 2024
Annual Report 2024
In 2024, we delivered growth and earnings in line with our financial guidance. Despite a continued challenged macroeconomic environment, we grew revenue and improved margins across all entities apart from the UK, building on the initiatives introduced in 2023.
Entering 2024, we made a number of assumptions about revenue growth for the year, expecting growth of between 7% and 10%. We expected higher activity levels in the UK supported by our win of a large strategic framework agreement. Due to a slowdown in the public sector spending following the general election in July, that was not realised. In addition, we experienced a delay in ramping up on the contract won with Avinor in Norway.
These two significant contracts formed an important foundation for our growth expectations for 2024.
Impacting revenue growth positively was the continued strong performance in Netcompany-Intrasoft, where the EU and public segment in Greece delivered particularly significant growth – despite exiting 2023 with record-high activity levels. Impacting revenue growth negatively was the divestment of non-strategic markets in Netcompany-Intrasoft and the performance in our UK operation.
For 2024, Group revenue grew 7.4%, in line with our guidance.
Adjusted EBITDA margin for 2024 was 16.9% – also in line with guidance of 15% to 18%. The improved margin was a result of better utilisation in Netcompany Denmark, Netcompany Norway, and Netcompany Netherlands. Netcompany-Intrasoft also increased its margins, leaving only the UK with lower margins than in 2023.
Our financial guidance for the Group for 2025 assumes that macro and geopolitical uncertainty continues at the same level as in 2024.
We expect a gradual improvement in UK public sector spending on digitalisation, which eventually will have a positive impact on the Group. However, the timing is still uncertain and difficult to predict.
The EU and public segment in Greece is expected to keep growing, but growth is anticipated to be lower than the last couple of years due to historically high spending levels in the previous years.
In the Danish operation we expect to see unchanged market conditions compared to 2024.
We expect both the Norwegian and Dutch markets to deliver strong growth based on increased interest in our products and platforms to support continued digitalisation.
Finally, the divestment of operations in the non-strategic markets of the Middle East and Africa will impact Group revenue growth negatively by 1 percentage point in 2025.
Consequently, we expect Group revenue to increase between 5% and 10% for 2025.
Our expectation for the adjusted EBITDA margin in 2025 is based on the fundamental improvements to margins realised in 2024, which are not based on one-off effects or other non-recurring effects. Hence, we expect the Group to deliver an adjusted EBITDA margin of between 16% and 19% in 2025.
