Webstep ASA: Second quarter results 2024

27 Aug 2024 07:00 CEST

Oslo, 27 August 2024: Webstep ASA today reports revenues of NOK 258.3 million
(249.5) for the second quarter of 2024, a growth of 3.5 percent. EBIT was NOK
18.9 million (17.6), an increase of 7.4 percent, corresponding to an EBIT margin
of 7.3 percent (7.1)

In May, Webstep entered into an agreement to sell its Swedish operations, and
the transaction was closed in July. The continuing Norwegian operation increased
its revenue by 8.0 percent to NOK 229.5 million (212.5)  in the second quarter.
The EBIT margin for the Norwegian business was 8.3 percent, up from 7.8 percent
in the corresponding quarter last year.
"Webstep made significant progress in the second quarter. We continued to grow
our revenues, we continued to deliver on our cost reduction program announced
last year, and we entered into an agreement to divest our Swedish operation. We
firmly believe that streamlining the organisation will support growth and
profitability both in the short and medium term.," said CEO of Webstep, Kristine
Lund.
Webstep's Norwegian business had 451 FTEs at the end of the second quarter
(459). The change was related to the cost reduction program affecting non
-billable FTEs executed in the fourth quarter of 2023. Compared to the end of
the first quarter 2024, FTE grew by 3.
"We will continue to balance growth and profitability. This means that we
constantly will seek to selectively recruit additional consultants in order to
further grow our revenue capacity, while keeping a close eye on utilisation and
cost. In Bergen, for example, we are delighted to see a net growth in the number
of colleagues. This strengthens our position particularly among large customers
in the region," said Kristine Lund.
The divestment of the Swedish operation, combined with a solid cash flow from
running business has strengthened Webstep's financial position.The Board of
Directors has decided to propose allocating approximately half of the surplus
cash for the repurchase of the company's own shares in the Fall of 2024, with
the remaining half to be distributed as an extra dividend to shareholders in the
Spring of 2025. A notice for an Extraordinary General Meeting of Shareholders,
where the proposal will be presented in detail, will be made available in
September.
Webstep maintains its long-term goal of more than 10 percent EBIT margin.
"Webstep is on a long-term journey, and we will be fully focused on continued
growth and profit improvement. Our strong market position, good reputation,
large base of returning customers, and, not the least, our experienced and
highly competent team, means that we have a great opportunity to enhance our
customer value proposition, delivering on our long-term ambitions," Kristine
Lund concludes.

Contact details for further information:

Nina Stemshaug, Interim CFO

Cell: +47 982 60 394

Email: ir@webstep.com

Website : www.webstep.com

Webstep ASA is a provider of consultancy services to the private and public
sector, with the IT expertise necessary to deliver the most demanding
digitalisation and IT services.

This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act

More information:
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626286_Webstep_ASA_Q2_2024_presentation.pdf
626286_Webstep_ASA_Q2_2024_report.pdf
626286_Release.pdf