cBrain intends to take lead in COTS for government industry
20 February 2025 - 7:00PM
UK Regulatory
cBrain intends to take lead in COTS for government industry
Company Announcement no. 02/2025
cBrain intends to take lead in COTS for government
industry
Copenhagen, February 20, 2025
cBrain (NASDAQ: CBRAIN) revenue grew by +12% to DKK 268m in
2024, up from DKK 239m in 2023. Earnings before tax (EBT) grew to
DKK 86m in 2024, up from DKK 81m in 2023, thereby reaching an EBT
margin of 32%.
Results are in line with expectations, forecasting a revenue
growth range of 12-13% and EBT margin of 30-32%.
Strong positive cash flow from operating activities enables an
increase in dividends, investments in the growth of the company,
and it reduces long-term loans on cBrain-owned buildings.
cBrain does not have a share buyback program. However, due to
solid earnings, cBrain proposes to raise dividends to DKK 0,64 per
share (2023: DKK 0,28 per share) corresponding to a payout ratio of
approx. 20% of profit for the year.
Fueled by a lack of skilled IT resources and a growing demand
for fast delivery, cBrain sees a rapidly emerging IT industry,
referred to as Commercial Off-The-Shelf (COTS) for government. COTS
for government, leveraging new technologies and platforms such as
the F2 Digital Platform, enables digital transformation at higher
speed and lower costs that outperform traditional IT
modernization.
For cBrain the accelerated market shift represents new strategic
opportunities. cBrain wants to fully take advantage of this, and
cBrain is therefore currently in the process of evaluating and
potentially adjusting its international growth strategy.
With the goal of being an internationally leading vendor in the
emerging COTS for government industry, the strategy process
includes evaluating organizational readiness, market and product
development strategies.
As a result of the strategy process, cBrain expects to implement
a number of changes to the growth plan during the spring of 2025.
Consequently, cBrain forecasts expected revenue growth in 2025 of
10-15% and earnings before tax (EBT) of 18-23%.
The revenue forecast takes into account that e.g. developing new
channel strategies may shortly delay revenue. The earnings forecast
is based on significantly increased investments into international
growth, across the African region, USA, Germany, and India, as well
as increased investments into developing the F2-for-Partners
concept.
Best regards
Per Tejs Knudsen, CEO
Inquiries regarding this Company Announcement may be
directed to
Ejvind Jørgensen, CFO & Head of Investor Relations, cBrain
A/S, ir@cbrain.com, +45 2594 4973
- Company Announcement no. 2025-02 (Årsregnskab - Guidance,
dividende, justering af plan)
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