PRESS RELEASE - Regulated information
Unifiedpost reports strong progress with its European expansion
La Hulpe, Belgium – September 17, 2021, 7 a.m. CET, Unifiedpost Group (Euronext: UPG) (Unifiedpost, the Group or the Company) is pleased to announce its second-quarter and half-year results for the period to June 30, 2021.
- Group revenue more than doubled to €80.7 million driven by acquisitions in the period
- Organic digital processing revenue growth of 13% y-o-y in Q2 2021, up from 10% y-o-y in Q1 2021
- Post-IPO acquisition strategy completed and integration of six acquisitions during period is at advanced stages
- Gross margin of digital processing business increased by 0.8%pts y-o-y while adjusted Group EBITDA (1) improved to achieve break-even
- Cash and equivalents of €25.1 million with a further €28.7 million available in undrawn-financing sufficient to fund future development
- Company guidance for FY 2021 and years to come confirmed
(1) Adjusted EBITDA for a period, as EBITDA plus share-based payment expense, non-recurring operational expenses, acquisitions expenses, costs in relation with the Company’s listing, less other income and expenses.
Commenting on the results, Hans Leybaert, CEO and Founder stated: “As we celebrate our first anniversary as a public company, I am proud of what our teams have achieved across Europe. With six acquisitions completed since the IPO, we have welcomed new colleagues, added new geographies, capabilities and customers large and small. This will enable us to enhance our offering and rapidly scale our network. I am confident that we now have in place the platform that will lead the digital transformation of document, identity, payments and related financial services for European SMEs. Our focus is now to raise organic growth. This will be done by further integration of the acquired companies generating additional sales, creating new ecosystems and speeding the network effects of the platform. Our communication and payments network is being rolled out across 30 countries and we are welcoming more new customers than ever before while growing the volume of services we offer to individual customers faster than ever before.”
Key Q2 figures
Key H1 figures
Revenue growth accelerated on the back of organic growth and acquisitions
For the first half to June 30, 2021, Unifiedpost more than doubled its consolidated revenue to €80.7 million y-o-y, largely driven by the acquisitions completed in the period. Digital processing revenue, the core business of Unifiedpost, grew to €50.4 million, an increase of 50% y-o-y. Group revenue continued to be affected by COVID-19, notably in the UK, Belgium and Slovakia. However, this is expected to diminish in the coming quarters as economic activity resumes. In H1 2021, 94.5% of the digital processing revenue was recurring. This provides, together with the limited customer churn, a stable base for continued growth.
Transaction fees increased by 187% y-o-y to €65.6 million due to the contribution from recent acquisitions, while subscription fees increased 44% y-o-y to €9.3 million fuelled by an increase in SME customers.
Gross profit for the first half amounted to €24.9 million compared to €14.1 million in the previous year’s period. Excluding contribution from acquisitions, like-for-like gross profit for the period was stable. Approximately 87% of the Group’s gross margin was generated by digital processing. The growth margin of this business saw an increase from 42% to 42.8%.
Unifiedpost continues to invest in its platform development through upgrades and developments of additional services. During the first half of the year, the Group spent €15.3 million in R&D (of which 57% was capitalised and 43% expensed), equivalent to 30% of total digital processing revenue.
G&A expenses for the period increased from €13.1 million to €18.6 million compared to the previous year due to a higher number of employees and the Group’s general expansion, including its acquisitions. Sales & Marketing expenses were up from €5.0 million to €11.3 million, reflecting the Group’s commercial efforts in the first half of the year.
Due to the improvement in margins, the Group reported a significant reduction in its loss for the period of €5.8 million compared to the same period in the previous year.
During the first six months of the year the Group completed six acquisitions for a total consideration of €146.6 million with €81.9 million in cash and €53.8 million through the issuance of new equity and € 6.9 million repayment of loans.
At the end of the period, the Group cash position was €25.1 million (cash and cash equivalents) in addition to approved and undrawn facilities totalling €28.7 million. The group has sufficient resources to continue to fund its capital expenditure and debt commitments.
Unifiedpost’s equity increased from €168.2 million to €211.9 million in the reporting period. €53.8 million of this was attributable to the issue of shares in connection with the acquisitions made by means of a contribution in kind of vendor loans.
Management guidance confirmed
Digitalising the financial supply chain processes
Building a pan-European ‘one-stop-shop’
Growing the network
Growing payment service adoption
Investors, analyst & media webcast:
A presentation can be followed via live webcast. A recording will be available shortly after the event.
To attend, please register at https://attendee.gotowebinar.com/register/6187452624717239308
A full replay and a copy of the slides will be available after the webcast at: https://www.unifiedpost.com/en/investor-relations
- Publication 2021 Q3 business update November 19, 2021
- Investor Day December 1, 2021
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About Unifiedpost Group
Unifiedpost is a leading cloud-based platform for SME business services built on Documents, Identity, Payments and associated finance services. Unifiedpost operates and develops a comprehensive cloud-based platform for administrative and financial services that allows real-time and seamless connections between Unifiedpost’s customers, their suppliers, their customers, and other parties along the financial value chain. With its one-stop-shop solutions, Unifiedpost’s mission is to make administrative and financial processes simple and smart for its customers. Since its founding in 2001, Unifiedpost has grown significantly, expanding to offices in 30 countries, with more than 400 million documents processed in 2020, reaching over 980,000 SMEs and more than 2,500 Corporates across its platform today.
Noteworthy facts and figures:
- Established in 2001, with a proven track record
- Revenue of €146 million (pro-forma 2020)
- 1,300+ employees
- 400+ million documents processed in 2020
- Diverse portfolio of clients across a wide variety of industries, including banking, leasing, utilities, media, telecommunications, travel, social security service providers, public organisations, ranging from SMEs to large corporates.
- Unifiedpost Payments, a fully owned subsidiary, is recognised as a payment institution by the National Bank of Belgium
- Certified SWIFT partner
- M&A track record of 17 acquisitions in last 9 years
- Quoted on the regulated market of Euronext Brussels, symbol: UPG
(*) Warning about future statements: The statements contained herein may contain forecasts, future expectations, opinions and other future-oriented statements concerning the expected further performance of Unifiedpost on the markets in which it is active. Such future-oriented statements are based on the current insights and assumptions of management concerning future events. They naturally include known and unknown risks, uncertainties and other factors, which seem justified at the time that the statements are made but may possibly turn out to be inaccurate. The actual results, performance or events may differ essentially from the results, performance or events which are expressed or implied in such future-oriented statements. Except where required by the applicable legislation, Unifiedpost shall assume no obligation to update, elucidate or improve future-oriented statements in this press release in the light of new information, future events or other elements and shall not be held liable on that account. The reader is warned not to rely unduly on future-oriented statements.