BMIT Technologies plc - Interim Results

On 4 August 2023, BMIT Technologies plc published its interim results covering the six-month period ending 30 June 2023.

Revenue surged by 17.3% to €14.8 million (H1 2022: €12.6 million) reflecting growth in the resale of hardware and software licenses (+74%), cloud services (+40%) and managed IT services (+27%). The company explained that reported figures include higher revenue recognition in the cloud and licenses categories since several customers opted for annual commitments.

Meanwhile, operating costs increased by 27.3% to €10.6 million reflecting the lower margins attracted by cloud services when compared to data centre services. Furthermore, BMIT noted that general inflation impacted most of the operating costs, including staff costs.

Operating profit for the period amounted to €4.26 million (H1 2022: €4.16 million). Excluding depreciation and amortisation charges, EBITDA amounted to €5.20 million, which is 3.4% lower than the €5.38 million figure generated in the first half of 2022.  This translates to an EBITDA margin of 35.0% compared to 42.5% in the same period last year.

After accounting for net finance costs of €0.11 million and a tax charge of €1.52 million, BMIT posted a net profit for the period of €2.64 million, practically unchanged from the corresponding period in 2022. The profit for the first six months of 2023 translates to an annualised return on equity of 61.9% (H1 2022: 62.8%).

The Statement of Financial Position as at 30 June 2023, when compared to the position as at 31 December 2022 shows that total assets dropped by 9.7% (or €2.5 million) to €23.0 million, principally composed of property plant and equipment (€8.7 million), cash and equivalents (€4.3 million), intangible assets (€3.2million), and right-of-use assets (€2.2 million). Total liabilities remained practically unchanged at €14.3 million and total equity dropped by 21.4% (or €2.4 million) to €8.69 million, largely reflecting the dividend paid during the period.


Commenting on the results, the Directors noted the significant changes in the market driven by technological advancements which resulted in a shift from data centres to the adoption of cloud services. In response, BMIT is seeking to enhance and expand alternate revenue streams including cloud services, cybersecurity, and other IT provisions. Furthermore, the Directors are evaluating the acquisition of passive telecom infrastructure, with an aim to further diversify the business model and generate long-term contracted revenues.