- Turnover increases by 11% compared to the same period last year
- EBITDA margin rises to almost eleven percent
- Operating cash flow significantly improved
Görlitz, 29.09.2023 | After the first half of the year, niiio finance group AG (ISIN: DE000A2G8332), a software-as-a-service platform for asset and wealth management, is well on track to meet the revenue and earnings targets it has set itself for 2023: In the first six months, the group increased its revenues by 11% to €4.1 million (previous year: €3.7 million). The two subsidiaries DSER and PATRONAS Financial Systems made the largest contribution to this.
The share of recurring revenue from licensing business in total revenue increased to around 89% (previous year: 85%). The significant growth in turnover is due to economies of scale in the course of the successful acquisition of Patronas Financial Systems, but also to new products developed in the previous year and already successfully marketed.
Earnings from interest, taxes, depreciation and amortisation (EBITDA) also improved significantly in the first half-year to 0.43 million euros (previous year: 0.3 million euros), bringing the EBITDA margin to just under 11%. „This shows the expected positive effects from the increased size of the group of companies and the resulting cross-selling and up-selling opportunities. In addition, we have our costs under control“, comments Johann Horch, CEO of niiio finance group AG.
The cash flow from operating activities is clearly positive and amounts to a good 0.5 million euros. This results from positive operating results of individual subsidiaries, which were able to overcompensate for the holding company’s running costs.
Horch pointed out: „After the first half of the year, the niiio finance group is strategically and operationally well on the way to achieving its growth targets while at the same time improving its results. The management team is now very well coordinated and is working efficiently to achieve our goals. The course for further organic and inorganic growth has been set and we are working at full speed to generate further economies of scale.“
The Group’s management expects continued growth momentum, especially in the area of asset management. „Here we will continue to grow organically“, Horch expects. As a consolidator in a highly fragmented market with numerous small niche providers, niiio sees good opportunities for inorganic growth through acquisitions, especially in the area of wealth management, whereby the management board continues to pay particular attention to the profitability of potential targets. The company has developed and already successfully applied a clear strategy for M&A and post-merger integration.
The niiio Group plans to grow organically and inorganically above the market in the coming years. The management also assumes that EBITDA margins of 10-20% are achievable at group level in the medium term.
The full report on the first half of 2023 is available on the company’s website www.niiio.finance in the Investor Relations section.
niiio finance group AG
About niiio finance group AG:
niiio finance group AG (niiio) is creating a scalable pan-European WealthTech platform by bundling technological innovations in order to enable asset and wealth managers to digitalise their processes and optimally serve their clients. niiio is a Software-as-a-Service (SaaS) provider for asset and wealth management. As a “one-stop shop”, the company digitalises the processes of its more than 80 European customers so that they can work efficiently, flexibly and on a legally compliant basis. niiio’s vision is the cost-effective digital issuance, custody, management and subsequent trading of securities based on DLT – and, as a consequence, decentralised settlement based on blockchain technology.
This release contains statements about the future development of the niiio Group. These forward-looking statements are based on the Management Board’s current expectations, assumptions and forecasts, as well as the information currently available to the Management Board. They have been compiled to the best of the Management Board’s knowledge. As far as such forward-looking statements are concerned, no guarantee can be given and no liability can be assumed that the future developments and results mentioned will occur as presented. Rather, future developments and results depend on various factors. They entail risks and uncertainties that lie beyond the Company’s control and are based on assumptions that may not prove to be accurate. Notwithstanding any legal requirements to revise forecasts, we do not assume any obligation to update the forward-looking statements made in this release.