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     165  0 Kommentare Unifiedpost grows digital revenue while further improving operational efficiency

    Capturing digital trends and navigating the evolving e-invoicing and e-payment market

    La Hulpe, Belgium – August 29, 2023, 7:00 a.m. CET – [INSIDE INFORMATION] Today, Unifiedpost Group (Euronext: UPG), a leading provider of integrated business communications solutions, presents its results for H1 2023. The digital processing revenue has increased, showing a 9,9% growth y/y, supported by a 12,3% rise in recurring digital processing revenue. This is reflected in Unifiedpost’s growing customer base, totalling 1.172.197 businesses by the end of H1 2023. As Europe continues its shift towards full digital invoicing, with some countries taking more time to adapt, the Group’s focus remains on a positive cash flow while continuing a trajectory filled with growth and innovation.

    Highlights

    • Digital processing revenue grows 9,9% in H1 2023 y/y, supported by a 12,3% rise in recurring digital processing revenue
    • Digital processing gross margin improves to 41,5%, up 1,5 %pts y/y
    • Revenue decline in postage and parcel optimisation y/y is primarily due to SEK-EUR exchange rate fluctuations
    • Cash at end of H1 2023 at € 24,7 million with undrawn financing available
    • A binding offer was made for the divestment of FitekIN and Onea at € 7,2m with closing set for H2 2023
    • Focus remains on becoming cash flow positive
    • The Group is preparing for EU e-invoicing shifts including divestments of its non-core services

    Commenting on the H1 2023 results, Hans Leybaert, CEO and founder, remarked: "H1 2023 shows how committed we are to adapting in a digital world that keeps changing. The recent postponement by the French Ministry of Finance underscores the ground-breaking changes of the digital transition. The broader market now sees what we've known for a while: we need broad and integrated solutions. Our strategic choice to offer a fully integrated platform has positioned us not only to adapt but to lead in these exciting times. I am immensely grateful to our Unifiedpost team and partners for their continued dedication and for anticipating the multifaceted needs of the future.

    Key financial figures

    (EUR million) H1 2023 H1 2022 Change (%)
    Group revenue 93,2 91,7 +1,5%
    Digital processing revenue 65,2 59,3 + 9,9%
    Recurring digital processing revenue 62,8 55,9 +12,3%
    Non-recurring digital revenue (licences + project) 2,4 3,4 -29,4%
    Postage & parcel optimisation revenue 27,9 32,4 -13,9%
    Recurring revenue (in % of total revenue) 97,4% 96,3% +1,1%pts
    Gross margin digital processing 41,5% 40,0% +1,5%pts
    EBITDA margin -3,1% -7,1% +4,0%pts
    Loss for the period -24,0 -21,1 +13,7%
    Cash and cash equivalents 24,7 42,7 -42,2%

    Key business KPI’s

    (#) End Q2 2023 End Q1 2023 End Q4 2022 End Q3 2022 End Q2 2022
    Customers 1.172.197 1.133.706 1.063.776 986.971 910.845
         Paying customers 490.936 473.679 468.128 453.417 430.524
         Customers paid by 3rd parties 681.261 660.027 595.648 533.554 480.321
    Companies in business network 2.254.762 2.186.270 2.109.297 2.023.460 1.745.401
    Banqup customers

     

                                           

     
    151.931 143.902 124.333 80.420 68.546
    Billtobox customers Belgium

                                           

     
    48.651 45.359 40.363 37.459 35.382
    JeFacture customers France (JeFacture)

     

                                           

     
    14.291 11.973 5.428 4.087 3.591

    Growing digital processing revenue while improving operational efficiency

    In H1 2023, we concentrated on moving closer to our main goal: a positive cashflow. We combine three main strategies, which we have diligently pursued in the past and continue to uphold:

    1. Consistent growth of digital processing gross profit, preferable recurring in nature
    2. Balanced approach to postage & parcel optimisation services
    3. Focus on synergy realisation and streamlining organisation

    These markers not only highlight our H1 2023 endeavours but also provide a glimpse into our strategic roadmap for the coming periods.

    Consistent growth of digital processing gross profit

    Unifiedpost’s digital processing services are the cloud-based platforms that serve small, medium, and large businesses in areas of document flows, payments, and additional value-added services.

    The first half of 2023 clearly demonstrated Unifiedpost's strong dedication to its digital path. Digital processing revenue saw an increase of 9,9% y/y to € 65,2 million. Driving this was the growth of our recurring digital processing revenue, which registered a 12,3% increase y/y, reaching € 62,8 million.

    Non-recurring digital revenue experienced a decline, down by 29,4% y/y to a total of € 2,4 million for H1 2023. This fluctuation is indicative of the inherent cyclical nature associated with non-recurring revenue sources.

    Our goal to continually augment the gross profit of the digital processing service remains unwavering. The growth in gross profit of digital processing services y/y amounting to € 3,3 million is partially driven (i) by revenue growth amounting to € 2,3 million additional gross profit and partially driven (ii) by increasing margin-% amounting to € 1,0 million additional gross profit.

    Steady gross profit of postage and parcel optimisation services

    Unifiedpost has services in the Nordics to optimise postage to its clients. Depending on client preferences, Unifiedpost's service can be solely for 'optimisation', or extended to printing and overseeing all associated postage expenses. Unifiedpost can extend these services to (small) parcel distribution.

    In H1 2023, Unifiedpost's postage & parcel revenue declined 13,9% y/y, settling at € 27,9 million, down from € 32,4 million in H1 2022. This can be largely attributed to the impact of the SEK-EUR exchange rate change (-9,7% from 30 June 2022 to 30 June 2023). Another influential factor has been the evident shift from paper to digital among our clientele.

    Our improved gross margin in this segment shows our resilience. The margin climbed from 10,3% in H1 2022 to 11,3% in H1 2023. This improvement in gross margin compensated the missing gross profit from reduced volumes.

    Focus on synergy realisation and streamlining organisation drives Unifiedpost towards a sustainable future

    In the domain of strategic cash management, it's essential to manage both operational and investment costs. Following our acquisitions and integrations, Unifiedpost has shifted its focus towards operational efficiency, capitalizing on the synergies. Activating these synergies results in the reallocation of teams, a heightened emphasis on efficiencies, and bolstering our cost-saving program. The reallocation of teams affects how our expenses by nature are presented. It's vital to recognize that a direct year-on-year comparison of expenses (2022-2023) by category may not yield a comprehensive picture.

    The implementation of our strategic initiatives is evident. As of 30 June 2023, we have reduced the employee count from 1.479 (recorded on 30 June 2022) to 1.322. Although H1 2023 still bears significant one-off costs, the cumulative impact of a 10,6% workforce reduction will manifest in subsequent quarters. This will be observable in the operational costs associated with S&M, R&D,

    G&A, and in CAPEX. Notably, the Group's total personnel costs for H1 2023 decreased to € 40,9 million from € 41,2 million in H1 2022, despite an approximate 5% wage surge across the Group due to inflation. By June 2023, our monthly personnel expense had further reduced to € 6,1 million. The total expenses declined year over year from € 109,5 million to € 108,9 million for the first semester.

    It's noteworthy that the company has recorded a larger portion of R&D in its results (€ 1,4 million) as it stopped development on some local products but continued maintain services for these products.

    By diligently managing personnel expenses without sacrificing service quality or growth trajectories, and with a keen commitment to R&D investments for emerging markets, Unifiedpost Group is resolutely navigating towards a cash flow-positive business.

    Liquidity position pave the way for future growth

    By the end of H1 2023, Unifiedpost Group reported a financial position with cash and cash equivalents totalling € 24,7 million. Additionally, the Group has € 15,9 million in undrawn invoice financing and € 2,0 million in undrawn financing facilities. Our working capital continues to align with the figures observed at the end of 2022.

    As 2023 unfolds, Unifiedpost Group's outlook remains positive. The projected growth in revenue and gross profit is being realised. With a growing customer base that adds to our recurring digital processing revenue, combined with effective cost management, the Group is progressing to reach the cash flow break-even point. With the data from the first half of the year now available, we are further committed to generate over H2 a positive operating cash flow that exceeds the capital expenditure of the Group over the same period.

    Growing the network: robust customer growth

    Unifiedpost's emphasis on customer onboarding has proven fruitful. By Q2 2023, our customer count rose to 1.172.197, a 10,2% growth from the end figure of 2022. In detail, Q1 2023 saw 69.930 new customers, and Q2 added 38.491. Our paid customer segment reached 490.936, while third-party financed customers grew to 681.261.

    Our business network, i.e. own customers and other companies that we can reach in a digital way, now serves over 2,25 million companies, up from 2,11 million at the end of 2022. This growth cements our position in the e-invoice and e-payment segment, particularly among Europe's SMEs.

    Our core SME platforms, including Banqup, Billtobox, and JeFacture, gained momentum. Their combined customer base reached 151.931 by Q2 2023. Impressively, H1 2023 added 27.598 new subscriptions. Belgium and France, key markets for us, also reported growth. Banqup's Belgian customers (Billtobox) increased to 48.651. In France, early adopters of JeFacture reached 14.291 by Q2's end.

    Proactively navigating the evolving e-invoicing and e-payment landscape

    On 28 July 2023, the French Ministry of Finance announced a postponement in the e-invoicing and e-reporting mandates originally starting July 2024. These mandates, planned in phases, now face revision due to challenges integrating daily B2C sales data, international B2B sales invoices, and more. This digital transition is compounded by technological, operational, and regulatory challenges.

    Unifiedpost Group has consistently been at the forefront, actively preparing for these complexities. The recent developments underscore the importance of flexible and diverse solutions, an area where Unifiedpost has consistently excelled. Our strategy revolves around offering an extensive integrated range of services suitable for businesses of all sizes. Ready to adopt the new systems swiftly, we have always anticipated potential market complexities and possible delays. Nevertheless, our commitment to our mission remains strong.

    With Europe transitioning to a new framework for e-invoicing and e-payment, Unifiedpost Group consistently evaluates its services, ensuring we maintain a comprehensive offering that addresses all requirements. Services that are not integrated or not fully digital are scrutinised for potential divestment. The divestment of FitekIN and Onea as standalone products, expected to close in Q4 2023, marked a strategic move in this direction. Announced on 1 August 2023, this decision emphasizes our commitment to streamlining core business operations. On the other hand, Unifiedpost Group successfully incorporated the software product Valitax, a mandatory feature for the future e-invoicing market, further enhancing its suite of solutions.  This functionality will be embedded in the Banqup product offering and delivers important added value on validating indirect taxes applied on e-invoices.

    This constantly evolving landscape presents numerous opportunities for Unifiedpost Group. The escalating demand for e-invoicing and e-reporting highlights the vast potential for growth across the EU. While challenges persist, they also signal the start of new partnerships and collaborations, helping Unifiedpost Group to strengthen its market position.

    <End>


    Investors & Media webcast

    Management will host a live video webcast for analysts, investors and media today at 10:00 a.m. CET.

    A recording will be available shortly after the event. To attend, please register at x. Participants can also join via telephone. They can obtain their personal dial-in details by registering with this link:

    To register and attend the webcast, please click here:

    https://onlinexperiences.com/Launch/QReg/ShowUUID=FDA50AEB-A54F-41AD-B ...

    For those preferring a conference call, please register here:

    https://register.vevent.com/register/BI373d499b94884250b0f1b429b53a03b ...

    A full replay be available after the webcast at: https://investors.unifiedpostgroup.com/

    Financial Calendar 2023

    • 16 November 2023                   Publication Q3 2023 Business Update

    Contact

    Laurent Marcelis

    +32 477 61 81 37

    Laurent.marcelis@unifiedpost.com


    Interim consolidated statement of profit or loss and other comprehensive income (unaudited)

    Thousands of Euro, except per share data For the 6-month period ended 30 June
      2023 2022
    Digital processing revenues 65.220 59.260
    Digital processing cost of services -38.183 -35.557
         
    Digital processing gross profit 27.037 23.703
         
    Postage & Parcel optimisation revenues 27.941 32.404
    Postage & Parcel optimisation cost of services -24.770 -29.067
         
    Postage & Parcel optimisation gross profit 3.171 3.337
         
    Research and development expenses -11.321 -7.549
    General and administrative expenses -20.733 -22.659
    Selling and marketing expenses -13.899 -14.624
    Other income / (expenses) -452 -440
         
    Profit / loss (-) from operations -16.197 -18.232
         
    Financial income 88 245
    Financial expenses -7.640 -3.552
    Change in fair value of financial liabilities - 535
    Share of profit / loss (-) of associates - -
         
    Profit / loss (-) before tax -23.749 -21.004
         
    Income tax -292 -146
         
    PROFIT / LOSS (-) FOR THE YEAR -24.041 -21.150
       
    Other comprehensive income / loss (-): -1.388 -1.971
         
    Items that will not be reclassified to profit or loss (-), net of tax:    
    Remeasurements of defined benefit pension obligations - -
    Items that will or may be reclassified to profit or loss, net of tax:    
    Exchange gains / losses (-) arising on translation of foreign operations -1.388 -1.971
         
    TOTAL COMPREHENSIVE INCOME / LOSS (-) FOR THE YEAR -25.429 -23.121
         
    Profit / loss (-) is attributable to:    
    Owners of the parent -24.058 -20.760
    Non-controlling interests 17 -390
         
    Total comprehensive income / loss (-) is attributable to:    
    Owners of the parent -25.446 -22.731
    Non-controlling interests 17 -390
         
    Earnings per share attributable to the equity holders of the parent:    
    Basic -0,67 -0,61
    Diluted -0,67 -0,61

    Interim consolidated statement of financial position (unaudited)

    Thousands of Euro                                         As at 30 June                                   As at 31 December
      2023 2022
         
    ASSETS    
    Goodwill 152.580 153.429
    Other intangible assets 88.439 85.516
    Property and equipment 7.741 8.231
    Right-of-use assets 10.457 10.214
    Investments in associates 1.875 1.875
    Non-current contract costs 678 872
    Deferred tax assets 760 462
    Other non-current assets 2.165 1.728
    Non-current assets 264.695 262.327
    Inventories 691 822
    Trade and other receivables 27.547 31.890
    Contract assets 688 426
    Contract costs 1.533 1.859
    Current tax assets 1.030 705
    Prepaid expenses 1.942 2.275
    Cash and cash equivalents 24.696 40.033
    Current assets 58.127 78.010
    TOTAL ASSETS 322.822 340.337
         
    SHAREHOLDERS’ EQUITY AND LIABILITIES    
    Share capital 326.806 326.806
    Costs related to equity issuance -16.029 -16.029
    Share premium reserve 492 492
    Accumulated deficit -172.541 -148.497
    Reserve for share-based payments 1.831 1.813
    Other reserve -3.034 -2.863
    Cumulative translation adjustment reserve -5.101 -3.713
    Equity attributable to equity holders of the parent 132.424 158.009
    Non-controlling interests 467 281
    Total shareholders’ equity 132.891 158.290
    Non-current loans and borrowings 106.904 97.408
    Liabilities associated with puttable non-controlling interests 859 840
    Non-current lease liabilities 6.689 6.438
    Non-current contract liabilities 4.641 4.039
    Retirement benefit obligations 88 83
    Deferred tax liabilities 5.016 5.720
    Non-current liabilities 124.197 114.528
    Current loans and borrowings 8.611 6.967
    Current liabilities associated with puttable non-controlling interests 7.650 7.670
    Current lease liabilities 3.761 3.800
    Trade and other payables 30.411 34.853
    Contract liabilities 13.545 12.701
    Current income tax liabilities 1.756 1.528
    Current liabilities 65.734 67.519
    TOTAL EQUITY AND LIABILITIES 322.822 340.337



    Interim consolidated statement of changes in equity (unaudited)

    Thousands of Euro

     

     
    Share capital Costs related to equity issuance Share premium reserve Accumulated deficit Share based payments Other reserves Cumulative translation adjustment reserve Non-controlling interests Total equity
    Balance as at 1 January 2023 326.806 -16.029 492 -148.497 1.813 -2.863 -3.713 281 158.290
     

    Result for the period
    - - - -24.058 - - - 17 -24.041
    Other comprehensive income / loss (-) - - - - - - -1.388 - -1.388
    Total comprehensive income / loss (-) for the period - - - -24.058 - - -1.388 17 -25.429
    Share-based payments - - - - 18 - - - 18
    Current year profit AND OCI of NCI with put option - - - - - -169 - 169 -
    Other - - - 14 - -2 - - 12
    Balance as at 30 June 2023 326.806 -16.029 492 -172.541 1.831 -3.034 -5.101 467 132.891


    Thousands of Euro

     

     

     
    Share capital Costs related to equity issuance Share premium reserve Accumulated deficit Share based payments Other reserves Cumulative translation adjustment reserve Non-controlling interests Total equity
    Balance as at 1 January 2022 309.220 -15.926 492 -101.332 1.545 2.529 -376 277 196.429
    Result for the period - - - -20.760 - - - -390 -21.150
    Other comprehensive income / loss (-) - - - - - - -1.971 - -1.971
    Total comprehensive income / loss (-) for the period - - - -20.760 - - -1.971 -390 -23.121
                       
    Issuance of new shares 12.756 - - - - -3.801 - - 8.955
    Share-based payments - - - - 53 - - - 53
    Current year profit AND OCI of NCI with put option - - - - - -346 - 346 -
    Changes in carrying value of liabilities associated with puttable NCI - - - - - -3.290 - - -3.290
    Other - - - -16 -1 - - - -17
    Balance as at 30 June 2022 321.976 -15.926 492 -122.108 1.597 -4.908 -2.347 233 179.009

    Interim consolidated statement of cash flows (unaudited)

    Thousands of Euro                                 For the 6-month            For the 6-month
                                         period ended                  period ended
                                                   30 June                             30 June
      2023 2022
    CASH FLOWS FROM OPERATING ACTIVITIES
    Profit / loss for the year -24.041 -21.150
    Adjustments for:    
    • Amortisation and impairment of intangible fixed assets
    10.351 8.994
    • Depreciation and impairment of property, plant & equipment
    746 757
    • Depreciation of right-of-use assets
    2.162 2.002
    • Impairment of trade receivables
    35 105
    • Gain on disposal of fixed assets
    -25 -
    • Financial income
    -87 -245
    • Financial expenses
    7.640 3.552
    • Change fair value of derivative
    - -535
    • Income tax expense / income (-)
    292 146
    • Share-based payment expense / own shares
    18 53
         
    Subtotal -2.909 -6.321
    Changes in Working Capital    
    • Increase (-) / decrease in trade receivables and contract assets & costs
    4.566 -243
    • Increase (-) / decrease in other current and non-current receivables
    -141 -237
    • Increase (-) / decrease in inventories
    131 -302
    • Increase / decrease (-) in trade and other liabilities
    -2.561 -6.023
         
    Cash generated from / used in (-) operations -914 -13.126
    Income taxes paid -1.592 -1.260
    Net cash provided by / used in (-) operating activities -2.506 -14.386
       
    CASH FLOWS FROM INVESTING ACTIVITIES  
    Payments made for purchase of intangibles and development expenses -9.050 -10.359
    Proceeds from the disposals of intangibles and development expenses - 1
    Payments made for purchase of property, plant & equipment -344 -1.237
    Proceeds from the disposals of property, plant & equipment 94 14
    Interest received 87 56
         
    Net cash provided by / used in (-) investing activities -9.213 -11.525
       
    CASH FLOWS FROM FINANCING ACTIVITIES  
    Issue of ordinary shares - 12.756
    Proceeds from loans and borrowings 5.752 63.360
    Repayments of loans and borrowings -4.762 -21.696
    Repayment of lease liabilities -2.373 -2.252
    Interest paid on loans, borrowings and leasings -2.235 -563
         
    Net cash provided by / used in (-) financing activities -3.618 51.605
         
    Effect of exchange rate changes - -
    Net increase / decrease (-) in cash & cash equivalents -15.337 25.694
         
    Cash and cash equivalents at beginning of period 40.033 16.970
    Cash and cash equivalents at end of period 24.696 42.664



    About Unifiedpost Group

    Unifiedpost is a leading cloud-based platform for SME business services built on “Documents”, “Identity” and “Payments”. Unifiedpost operates and develops a 100% cloud-based platform for administrative and financial services that allows real-time and seamless connections between Unifiedpost’s customers, their suppliers, their customers, and other parties along the financial value chain. With its one-stop-shop solutions, Unifiedpost’s mission is to make administrative and financial processes simple and smart for its customers. Since its founding in 2001, Unifiedpost has grown significantly, expanding to offices in 32 countries, with more than 500 million documents processed in 2021, reaching over 1.600.000 SMEs and more than 2.500 Corporates across its platform today.

    Noteworthy facts and figures:

    • Established in 2001, with a proven track record
    • 2022 turnover €191 million
    • 1300+ employees
    • Diverse portfolio of clients across a wide variety of industries (banking, leasing, utilities, media, telecommunications, travel, social security service providers, public organisations, etc.) ranging from large internationals to SMEs
    • Unifiedpost Payments, a fully owned subsidiary, is recognised as a payment institution by the National Bank of Belgium
    • Certified Swift partner
    • International M&A track record
    • Listed on the regulated market of Euronext Brussels, symbol: UPG

    (*) Warning about future statements: The statements contained herein may contain forecasts, future expectations, opinions and other future-oriented statements concerning the expected further performance of Unifiedpost Group on the markets in which it is active.  Such future-oriented statements are based on the current insights and assumptions of management concerning future events.  They naturally include known and unknown risks, uncertainties and other factors, which seem justified at the time that the statements are made but may possibly turn out to be inaccurate.  The actual results, performance or events may differ essentially

    from the results, performance or events which are expressed or implied in such future-oriented statements.  Except where required by the applicable legislation, Unifiedpost Group shall assume no obligation to update, elucidate or improve future-oriented statements in this press release in the light of new information, future events or other elements and shall not be held liable on that account.  The reader is warned not to rely unduly on future-oriented statements.

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    Unifiedpost grows digital revenue while further improving operational efficiency Capturing digital trends and navigating the evolving e-invoicing and e-payment market La Hulpe, Belgium – August 29, 2023, 7:00 a.m. CET – [INSIDE INFORMATION] Today, Unifiedpost Group (Euronext: UPG), a leading provider of integrated business …