Information Technology
39/2024・Trifork Group AG – Interim report for the quarter ending 30 September 2024
Trifork Group AG
Company announcement no. 39/2024
Schindellegi, Switzerland – 1 November 2024
Interim Financial Report for the third quarter ending 30 September 2024
Trifork Group reports -0.8% revenue growth in the core business, adjusts full year-outlook, and targets around EURm 10 in annual cost savings to improve margins
CEO Jørn Larsen comments on the third quarter:
"2024 has proven to be one of Trifork's most challenging years. The private sector business environment for many of the services we provide remained difficult and unpredictable through the third quarter, but we cannot only blame the market. Some of our units have struggled to secure new customers or new engagements with existing customers. This will be fixed, based on the ways of working of our well-performing units.
We underestimated the negative margin impact from persistently lower-than-expected revenue growth throughout the year. In response, we will now extend our cost savings program with the aim to reduce overall annual cost by around EURm 10. We will introduce a 10% cut in selected management remuneration led by myself and our CFO, make further rightsizing in low-performing units, and reduce other costs until we see an improved market situation. Reducing our workforce in certain units is a necessary but difficult decision that weighs heavily on me and our business unit leaders and we will work closely together to make the right decisions. We do not know when a market improvement will materialize, but with a broader customer network and pipeline than ever before, we are prepared to capitalize when it does, at which time we aim to return to double-digit growth with a double-digit EBIT margin.
These challenges in parts of the organization are offset by many positive developments too. Our Public sector business, accounting for 39% of revenue, is back on track with healthy growth and a robust pipeline. Our strategic focus on the U.S. market is also yielding results, with solid growth and a promising pipeline for 2025. US revenue increased by 56% in Q3 and 29% in the first nine months compared to the same periods in 2023. Additionally, our Run business is building momentum for recurring revenue growth, and our new office in Oman is off to a strong start, powered by our proprietary platforms. Finally, our most valuable companies in Trifork Labs are performing very well.”
Third quarter 2024
The financial outlook for 2024 is adjusted as follows:
Main events in the third quarter of 2024
Results presentation
Trifork will host a results presentation and Q&A session with CEO Jørn Larsen and CFO Kristian Wulf-Andersen today, 1 November 2024 at 11:00 CET in a live webcast that can be accessed via the following link, or via the investor website:
https://trifork.zoom.us/j/96731822513?pwd=NW1HUxyhyL8sUfP7pCpymC9vOsDpNe.1
A recording will be made available on our investor website. More information can be found at https://investor.trifork.com/events/ .
For more information, please contact:
Investors
Frederik Svanholm, Group Investment Director & Head of Investor Relations
frsv@trifork.com , +41 79 357 7317
Media
Peter Rørsgaard, CCO Fintech & Head of Press Relations
pro@trifork.com , +45 2042 2494
About Trifork Group
Trifork is a pioneering global technology partner, empowering enterprise and public sector customers with innovative solutions. With 1,278 professionals across 76 business units in 15 countries, Trifork delivers expertise in inspiring, building, and running advanced software solutions across diverse sectors, including public administration, healthcare, manufacturing, logistics, energy, financial services, retail, and real estate. Trifork Labs, the Group's R&D hub, drives innovation by investing in and developing synergistic and high-potential technology companies. Trifork Group AG is a publicly listed company on Nasdaq Copenhagen. Learn more at trifork.com .
Attachments
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti