The Shareholders' meeting of Dedagroup approves the 2019 Financial Statements: growing trend for the 14th consecutive year

Trento, 6 August 2020 – Dedagroup SpA, a hub for the aggregation of leading Italian firms in the field of software and as a service solutions, which today operates in 58 countries with more than 3,600 customers, closes its 2019 financial statements by laying a sound foundation for its 2020-2023 business plan. In 2019, for the fourteenth consecutive year, Dedagroup SpA recorded positive trends and performances, strengthening its role as a partner for the digital transformation of companies, financial institutions and public administrations in Italy and abroad.

The consolidated results for 2019, compared to the previous year, show positive changes in revenues and margins, with production value increasing by 2.3% to €253 million and a particularly significant performance on the EBITDA front, equal to €22.2 million, an improvement of 6.8%. On a like-for-like basis, and therefore net of the extraordinary effects generated in 2018 by the sale of a business unit of the subsidiary Dedagroup Business Solutions, organic revenue growth was +4.5%, while EBITDA jumped by 26%. EBIT was also significant, rising 43% to €854 thousand. The consolidated net result, which stood at -€2.6 million, slightly up on the previous year, also reflects consolidation difference, while the statutory net result of the holding company, Dedagroup S.p.A., is already positive at €1.6 million.     

The Group's growth is also reflected in the sizeable increase in the workforce, which reached a total of 1,847, with 286 hired during the year.

The computerisation of processes, accelerated by digitalisation and the cloud, the potential generated by data and automation fuel growth of the Group, able to understand specific needs of customers and to turn them into successful solutions and projects in industries such as luxury, treasury, finance, process digitalisation and long-term data preservation. Moreover, the orientation towards an as a service business model has enabled the Group to further improve one of its main strengths: the creation and maintenance of a relevant business backlog for subsequent years, ensuring resilience and robust continuity. 
In detail, contributing significantly to the Group's positive results were the performances of Piteco (BIT:PITE), holding its positioning as a software hub dedicated to treasury and finance solutions for corporate and financial institutions, which recorded a 19% growth in revenues YoY; the fashion & luxury retail segment, where the subsidiary Dedagroup Stealth saw a 19% growth in revenues, as well as business related to SAP applications managed by the subsidiary Derga, up 12%. There was also a significant change of pace for Dedagroup Public Services which, driven by the excellent performance of the Civilia Next cloud platform and healthcare services, recorded a 24% rise in revenues. Particularly interesting was the result in terms of revenues from the Group's international activities, amounting to €31 million, and accounting for about 12% of total revenues; up by 10.7% YoY, it also demonstrates the value of the "Made in Italy" label in software development. Specifically, Dedagroup's application software has conquered an important customer base among local banks (Credit Unions) in the USA and South America.

The 2019 Financial Statements lay a sound foundation for the implementation of the new 2020-2023 business plan, which sees the Group intent on strengthening its position as a hub for the aggregation of leading Italian firms in the field of software and as a service solutions, as well as further consolidating its position in strategic areas covered with its flagship products: ERP software of Dedagroup Stealth, which covers all market segments of the fashion & luxury sector - from major international brands to small independent designers, - Piteco’s treasury & financial software for the corporate field, Dedagroup Business Solutions’, banking & finance software, with the digital business solutions of Derga and Dedagroup Wiz, solutions for public administration of Dedagroup Public Services, as well as the cloud offered across all sectors by Deda.Cloud. 

An articulated overall offer, for the enhancement and more effective management of which the Group has adopted the new organisational and corporate model described above, headed by the holding Dedagroup S.p.A., which will mark the next three years, providing individual companies with great strategic and financial flexibility and encouraging independent development plans that may include IPOs or industrial groups.

The plan's main objectives for the next three years are a revenue growth of around 18% to reach a value of production of €300 million by 2023, with profitability in excess of 14%, and full financial equilibrium with an NFP/EBITDA ratio of 0.21. In parallel with growth of the business, the number of new employees is expected to increase by around 400 to reach a total of over 2000 by 2023. The achievement of objectives will be supported by an investment plan of about €50 million, to be allocated to organic growth of the business and, of course, to the continuous development and expansion of solutions. With reference to the latter point, it should be noted that only for the crucial fashion & luxury market served by Dedagroup Stealth software, investments of about €4 million are planned for development alone. Preliminary results will be seen this autumn with release of the new STEALTH® Sustainability Solution module, designed to accompany the sector in view of the new logic of sustainable fashion. In addition, in line with the shareholders' vision of strengthening the role assumed by the Group as a hub of Italian technological excellence, the company intends to continue to grow through external lines as well. With this in mind, the Shareholders' Meeting approved a capital increase of €15.3 million, with the amount of €12.2 million already subscribed. Regarding this growth, it should be noted that throughout 2020 the Group has already finalized two acquisitions. In particular financially supported by Mediocredito Trentino Alto-Adige, Dedagroup Stealth acquired the British software house Zedonk - active with over 650 clients worldwide -, as confirmation of its international strategic plan to grow in the Global Fashion Market. Besides, the subsidiary company PITECO (BIT:PITE) has formalized the acquisition of the business unit Everymake, active in the field of Cloud software development for the Big Data matching of data, offering vertical solutions for several sectors including utilities, finance, consumer credit, leasing and factoring, among many others. 

Marco Podini, Executive Chairman of Dedagroup, points out: "When we decided to diversify 20 years ago, expanding the range of action from large-scale distribution to information technology, we were certain that this would turn out be a key sector that would support the growth of all the others. These have been exciting and complex times, and we have experienced many global crises. However, in those very moments we never stopped investing, and seized the market opportunities that such moments generate. Over the past 10 years, Dedagroup has finalised 18 acquisitions for a total investment of 80 million euros, demonstrating its ability to be an aggregating hub of Italian technological excellence and we have a clear objective to continue along this path. I am convinced that the digitisation of processes will continue to show its value, by boosting the competitiveness needed by companies and institutions in the economic recovery and, as a result, and by drawing the attention of investors. This is why our Group has structured itself and is getting ready to seize the opportunities that the capital market can offer to accelerate our growth and, therefore, the contribution that we can bring to companies in the public and private sector in the development of business and services."