Systematic tops DKK 1 billion (EUR 136 million) in revenue with large profit

With an operating profit of EUR 12 million and revenue in excess of EUR 136 million, the annual financial statements from software company Systematic have been deemed very satisfactory.

Press release12 December 2019

With new orders from Ørsted, North Denmark Region, the Australian Defence Force and, not least, a renewed contract with the U.S. Department of Defence, the level of business activity at Systematic in 2018/19 was so high that revenue increased to EUR 136 million against EUR 129 million the year before.

The operating profit (EBIT) of EUR 12 million is both satisfactory and in line with expectations, given that Systematic has invested more than EUR 13 million in the innovation and product development of both new and existing solutions.

Systematic’s founder and majority owner Michael Holm firmly believes that the money should not be put aside for a rainy day or paid out as dividend – it must be made to work for the company.

“In 2019, we have devoted more resources to product development and innovative research projects, among things within AI and machine learning in the healthcare sector. At the same time, we’re investing in-house in brand-new HR and ERP systems, designed to streamline the company and prepare it for further growth,” he explains.

In the coming years, Michael Holm expects Systematic to further increase its revenue from the sale of software licences and associated services with more focus on online sales of e.g. SaaS applications (Software as a service) and e-learning.

Solid orders for software for healthcare, defence and offshore

The 2018/19 financial year was characterised by several solid orders; for example, in the summer, North Denmark Region decided to buy Systematic’s electronic health record system Columna, which will be the core solution in all municipalities in Jutland and on Funen.  In addition to the electronic health record system, the Region of Southern Denmark has also acquired a service logistics solution which helps porters and clinicians to coordinate and form an overview of hospital tasks. Shortly before New Year last year, Systematic celebrated winning the contract to supply the first nationwide infrastructure in Denmark for telemedicine.

At Denmark’s biggest utility company, Ørsted, the choice also fell on a Systematic solution, this time for marine coordination at Ørsted’s offshore wind farms. In addition, Germany, Austria, the UK, Australia and Finland have all chosen to invest in Systematic’s SitaWare software for military use. Finally, the U.S. Department of Defence has extended its service and maintenance contract with Systematic.

Continued focus on international expansion

Michael Holm emphasises that international expansion is still a significant focus area for Systematic, which today generates 44% of its total revenue abroad. 

In 2018/19, Systematic’s workforce grew by 201 new employees, bringing the total number up to 1,100. It is worth noting that of all the employees who have recently been recruited, 13% are former employees deciding to rejoin the company.

“We’re very reliant on having the right employees who are highly motivated and qualified, and it is positive that they want to leave and try their hand at something different, because they often return with new knowledge and inspiration, while acknowledging that Systematic is a particularly good place to work,” says Michael Holm, who finds that it pays to invest in an attractive working environment with good development opportunities.

“We can only be happy with all that we’ve achieved together this past year. All the hard work of our dedicated employees in the various markets is reflected in the recognition we have earned worldwide for delivering on time and to budget. During the past year, 98% of our software orders have been supplied on time or even before, which is only possible because we’re continually working to optimise and improve the way in which we develop software,” says Michael Holm.

Systematic is internationally recognised for its agile software development processes based on Lean, Scrum and the CMMI Level 5 model. Systematic is one of only a few companies worldwide to have maintained CMMI certification at Level 5 for more than 10 years.

Systematic’s financial statements – facts

  2017/18 2018/19
 Revenue EUR 129 million EUR 136 million
 Operating profit EUR 17 million EUR 12 million
 Equity EUR 46 million  EUR 51 million 
 Liquidity EUR 24 million  EUR 31 million

 

Systematic is 100% self-financing and has no bank loans or debt capital.

In the 2018/19 financial year, Systematic Group generated revenue totalling EUR 136 million, with an EBIT margin of 9.0%, corresponding to EBIT of EUR 12 million. Revenue increased by 5%, while EBIT decreased by 4.2% due to the very high level of innovation and product development in 2018/19.

Download Systematic’s annual report 2018/19

For further information, please contact Maia Sejersen, PR & Communications Manager, telephone: +45 41965013 / email: mls@systematic.com