Beskrivning
| Land | Finland |
|---|---|
| Lista | First North Finland |
| Sektor | Informationsteknik |
| Industri | Programvara |
Vincit Plc
Company announcement July 17, 2025 at 9:00 EEST
Vincit Plc’s Half-year report 1 January–30 June 2025: Decline in revenue continued to weigh on profitability
This release is a summary of Vincit's Half-year report 2025. The complete report is attached to this release and is available on the company's website at https://investors.vincit.com/en.
This Half-year report has been prepared in accordance with International Financial Reporting Standards (IFRS). Figures in parentheses refer to the corresponding period of the previous year, unless otherwise stated. The figures have been adjusted to comply with the IFRS accounting standard, so they may differ from the figures previously reported by Vincit.
The restated comparison figures for previous years in accordance with IFRS standards and their changes compared to FAS reporting are presented in the IFRS transition release published on June 27, 2025. The Half-year report should be reviewed and read together with the IFRS transition file, which is attached to this company announcement release summary. The file presents the impacts of the IFRS transition.
April–June 2025
- Revenue was EUR 17.6 (21.7) million. Revenue declined by EUR 4.2 million, or 19.2%.
- Adjusted EBITA was EUR -0.5 (-0.4) million or -2.6% (-1.8%) of revenue.
- EBITA was EUR -1.1 (-0.9) million, or -6.2% (-4.1%) of revenue.
- EBIT was EUR -1.2 (-1.0) million, or -6.9% (-4.4%) of revenue.
- Items affecting comparability were EUR -0.6 (-0.5) million.
- Earnings per share were EUR -0.10 (-0.06).
- Total capacity (FTE) averaged 540 (669) over the reporting period, of which subcontracting was 37 (65) FTEs.
- Vincit Plc (together with its subsidiaries "Vincit" or the "Group") announced on June 27, 2025 the transition from Finnish Accounting Standards (FAS) to International Financial Reporting Standards (IFRS) reporting.
January–June 2025
- Revenue was EUR 37.0 (44.7) million. Revenue declined by EUR 7.8 million, or 17.4%.
- Adjusted EBITA was EUR -0.2 (0.2) million or -0.5% (0.5%) of revenue.
- EBITA was EUR -1.2 (-0.3) million, or -3.3% (-0.6%) of revenue.
- EBIT was EUR -1.4 (-0.4) million, or -3.9% (-0.9%) of revenue.
- Items affecting comparability were EUR -1.1 (-0.5) million.
- Earnings per share were EUR -0.14 (-0.04).
- Total capacity (FTE) averaged 569 (677) over the reporting period, of which subcontracting was 39 (66) FTEs.
Outlook for 2025 (unchanged)
Revenue in 2025 is expected to be lower than in 2024, but relative profitability is expected to improve year-on-year.
Financial targets for the strategy period 2025–2027
The Board of Directors of Vincit Plc approved on December 18, 2024 the company’s updated financial targets for 2025-2027.
- Adjusted EBITA margin of 10 percent of revenue by 2027
- In 2025, the goal is to stabilize the business, and in 2026-2027 the target is 10 percent organic revenue growth
- Strengthen the chosen business areas through acquisitions
- Equity ratio above 50 percent and net debt-to-EBITDA ratio below two
Vincit’s dividend policy remains unchanged and the company aims to distribute at least 30 percent of the annual net profit as dividends.
Key figures
| EUR thousand | 4-6/2025 | 4-6/2024 | Change, % | 1-6/2025 | 1-6/2024 | Change, % | 2024 |
| Revenue | 17,575 | 21,748 | -19.2% | 36,969 | 44,730 | -17.4% | 84,647 |
| EBITDA | -208 | -25 | 746.6% | 762 | 1,592 | -52.2% | 3,837 |
| % of revenue | -1.2 % | -0.1% | 2.1% | 3.6% | 4.5% | ||
| EBITA | -1,087 | -889 | 22.4% | -1,238 | -270 | 359.0% | -12 |
| % of revenue | -6.2% | -4.1% | -3.3% | -0.6% | 0.0% | ||
| Items affecting comparability | 634 | 498 | 27.5% | 1,067 | 498 | 114.4% | 520 |
| Adjusted EBITDA | 426 | 473 | -9.9% | 1,829 | 2,090 | -12.5% | 4,358 |
| % of revenue | 2.4% | 2.2% | 4.9% | 4.7% | 5.1% | ||
| Adjusted EBITA | -453 | -391 | 15.8% | -171 | 228 | -175.3% | 508 |
| % of revenue | -2.6% | -1.8% | -0.5% | 0.5% | 0.6% | ||
| EBIT | -1,210 | -956 | 26.6% | -1,438 | -399 | 260.3% | -288 |
| % of revenue | -6.9% | -4.4% | -3.9% | -0.9% | -0.3% | ||
| Profit for the period | -1,755 | -994 | 76.7% | -2,354 | -662 | 255.5% | -629 |
| Equity ratio -% | 58.6% | 61.5% | 58.6% | 61.5% | 58.3% | ||
| Return on equity (ROE), % | -21.3% | -10.8% | -13.8% | -3.5% | -1.7% | ||
| Return on Investment (ROI), % | -11.5% | -8.3% | -6.3% | -1.0% | 0.6% | ||
| Net Gearing Ratio -% | 4.2% | -18.4% | 4.2% | -18.4% | 1.3% | ||
| Number of employees at the end of the period | 538 | 641 | -16.1% | 538 | 641 | -16.1% | 640 |
| Basic EPS, EUR | -0.10 | -0.06 | 73.7% | -0.14 | -0.04 | 246.8% | -0.04 |
| Dividend / Share, EUR | - | - | - | - | 0.11 |
Vincit CEO Julius Manni
In the second quarter, our revenue decreased by 19.2 per cent from the comparison period. The decline was particularly affected by the weakened demand for custom software development in the United States and the challenges in the Commerce business, as several long-term customers cut their investments in digital commerce solutions more than expected.
The organisational restructurings carried out in the United States earlier in the year paid off, and the second quarter was already positive in terms of profitability for US operations. Despite the adjustment measures we have taken, our Vincit-wide cost structure was still too heavy relative to the rapidly declining revenue, and our profitability was still below target. In early April, we concluded the change negotiations concerning the Finnish service business and IT support functions. As a result of the negotiations, the employment of 35 people was terminated. With these measures, we estimate that we will achieve savings of approximately EUR 1.4 million in 2025. Costs of approximately EUR 0.5 million related to the change negotiations have been recorded in the second quarter. The full cost impact of the personnel cuts will be visible in the second half of the year.
Progress in strategic priority areas
In the second quarter of the year, we continued our determined work to implement our strategy. Our focus is on business-driven projects and long-term customer relationships where we can leverage our competitive advantage by combining AI, SAP solutions and custom software development. At the same time, we are continuing with our planned investments in developing our information security.
The more positive sentiment in the demand for custom software development has continued with the launch of several new customer projects. I would particularly like to highlight our collaboration with the Guides and Scouts of Finland, where we are developing a new national scout register. We are proud to be involved in this societally important project.
In the SAP Core business, we strengthened our position as a partner for business-critical core processes by signing an agreement with a major Finnish food industry player for continuous SAP application management services. In addition, we have promoted a productised approach to implementing SAP Public Cloud solutions. This is a key strategic opportunity for us, enabling faster and more efficient deployments for our customers.
In May, the commercial version of the Edilex AI tool for legal information retrieval, developed by Edilex Lakitieto and Vincit, was also released.
Our information security development progressed as planned. We achieved the international ISO 27001 certification for information security management and implemented the Security Operations Center (SOC) operated by DNV Cyber.
During the review period, we also completed the transition to the IFRS accounting standard, which will increase the comparability of Vincit's financial figures with other companies in the industry.
Vincit is heading in the right direction. The work to improve our profitability and turn our revenue back to a growth path continues. We are taking determined measures to adapt our cost structure and enhance sales efficiency. I want to thank our customers for their trust and our Vincit employees for their commitment and hard work in this challenging market environment.
Financial calendar 2025
In 2025, Vincit will publish financial information as follows:
- Business Review for January-September on Thursday, October 23, 2025
The reports will be available on the company’s website investors.vincit.com immediately after publication.
In Helsinki, July 17, 2025.
VINCIT PLC
Board of Directors
Additional information
Vincit Plc, CEO Julius Manni, phone: +358 50 424 3932
Certified advisor: Aktia Alexander Corporate Finance Oy, phone: +358 50 520 4098
Vincit Plc in brief
Vincit turns digital into business results by combining leading enterprise platforms and tailored solutions Vincit Plc’s shares are listed on the Nasdaq First North Growth Market Finland marketplace. www.vincit.com