BMIT Technologies plc - Full-Year Results

Thursday, March 7th, 2019

On 7 March 2019, BMIT Technologies plc (“BMIT”) published its preliminary statement of financial results for the year ended 31 December 2018. These are the first set of financial statements issued by BMIT Technologies plc as a separately listed public company following the successful Initial Public Offering which took place in January 2019.

Performance Overview

During 2018, BMIT registered a 7.9% increase in revenues to €21.3 million (2017: €19.7 million) on the back of growth across all the company’s business categories except for resale of hardware and software. In this respect, BMIT explained that the most significant increases were in the sale of connectivity services (+23%) and colocation services (+11%), followed by cloud and managed services (+9%).

In view of the increased volumes of business, total expenses grew by 6.9% to €14.3 million (2017: €13.4 million). However, this figure includes a one-time impairment charge of €0.5 million related to the discontinuation of the ‘Kinetix’ brand. Accordingly, on an adjusted basis, total expenses only increased by 3.3% reflecting higher cost of goods sold as well as investments in HR and marketing. Excluding depreciation and amortisation, EBITDA grew by 8% to €9.3 million. This is exactly in line with the forecasted EBITDA figure as provided in the IPO Prospectus dated 7 January 2019.

Overall, BMIT reported a pre-tax profit of €6.97 million, representing a growth of 9.6% over the previous corresponding figure. After taking into account a tax charge of €2.48 million and minority interests, the profit for the year amounted to €4.49 million, representing a growth of 18.2% over 2017. The net profit for the year is also 6.3% higher than the previously forecasted figure of €4.22 million.

The Statement of Financial Position shows a 13.8% drop in total assets to €13.6 million. This is largely attributable to the decreases in intangible assets (including the impairment related to the ‘Kinetix’ brand) as well as cash following the acquisition of the remaining 49% of Kinetix IT Solutions Limited. Total liabilities contracted sharply to €6.73 million from €18.9 million as at the end of 2017, reflecting the capitalisation of balances due to BMIT’s majority shareholder GO plc. As a result, the equity base of the company strengthened substantially as total equity amounted to €6.87 million as at 31 December 2018 compared to a negative equity of €3.08 million as at the end of 2017.

Dividend

As explained in the IPO Prospectus dated 7 January 2019, BMIT Technologies plc paid €4 million in cash dividends to GO plc during 2018. The IPO Prospectus also states that BMIT is expected to declare a net dividend per share of €0.0216 per share to all shareholders for the current financial year ending 31 December 2019. Moreover, BMIT also projected a net dividend per share of €0.024 to all shareholders for the 2020 financial year.

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BMIT Technologies plc – Preliminary Statement of Results for the year ended 31 December 2018.

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