Ad hoc announcement pursuant to Art. 53 LR
CREALOGIX has pursued its strategy to improve the operating profitability by a further reduction of its cost base thanks to efficiency gains from the product portfolio consolidation. Total sales for the financial year 2022/23 amounted to CHF 81.4 million. EBITDA improved by CHF 18.2 million year over year and amounts to CHF 8.9 million.
While focusing on improving the operating profitability, CREALOGIX successfully completed the Funding Portal implementation, the single largest customer program in its history with the state development banks in Germany. With all seven participating banks being live and widely using the modern state-of-the art digital platform, an important strategic milestone has been reached. Despite the turmoil in the FinTech industry and uncertainties in the banking industry CREALOGIX has won new customers and has secured long-term commitments from its existing customer base.
Stable revenues at improved profitability
Total revenues for the financial year 2022/23 amounted to CHF 81.4 million, a reduction of CHF 12.6 million compared to the previous year. Adjusted for the divestment of the Digital Learning business, revenue decreased by -2.8% in local currencies. Because of the completion of strategic projects and the normalised investments into new solutions, R&D decreased to 11.7% compared to the total revenue (PY: 31.0%).
Thanks to the saving measures and the profit from M&A and divestments, EBITDA increased to CHF 8.9 million (CHF -9.3 million in financial year 2021/22). Despite goodwill amortisations of CHF 4.5 million (according to Swiss GAAP FER, CREALOGIX constantly amortises its goodwill in every period) and the fact that own efforts for product development are fully charged to P&L, the consolidated result is positive. CREALOGIX reports a positive, adjusted earnings per share of CHF 3.22 (financial year 2021/2022: CHF -8.76).
Free cash-flow increased from CHF -22.3 million in the previous year to CHF -2.4 million in this financial year. Free cash-flow was positively impacted by the improved operative result and proceeds from M&A and divestments, but still negatively affected by a normalisation of net working capital. Mainly due to the completion of the program for development banks, spending in intangible assets was reduced to CHF 1.1 million (CHF 7.9 million in financial year 2021/22). At balance sheet date, net debt amounted to CHF 27.0 million). Cash totalled CHF 3.4 million (financial year 2021/22: CHF 14.1 million), this is due to the focus on reduction in net debts. The equity ratio improved from 22.6% in the previous year to 28.7%.
Focus on digital banking and efficiency gains
Focusing on digital banking opportunities and future profitable growth has allowed CREALOGIX to realise efficiency gains and thus a reduction of operating costs. As part of the focus on operative profitability, CREALOGIX improved its cost run rate. The focus on digital banking and on efficiency gains resulted in a reduction of free-lancers and the workforce from 524 (30 June 2022) to 383 (30 June 2023) full time positions.
As part of its consistent strategic focus on digital banking, CREALOGIX sold a stake of 67% of Swiss Learning Hub AG to the group of blue8 AG investors on 17 August 2022, with an option to sell the remaining 33% up to two years after the completion of the transaction. Swiss Learning Hub AG was fully de-consolidated and the option is recognised as a non-current financial asset.
Continuation of the positive development
For the financial year 2023/24 CREALOGIX expects a moderate revenue growth in local currencies and further improving operating profitability. The cost saving measures already implemented will come fully effective in financial year 2023/24 and will lead to a further optimised cost structure.
You can download the 2022/23 full-year report here: https://crealogix.com/en/about-us/investor-relations
