- In Q3 2022 alone, the Ailleron Group recorded sales revenues of more than PLN 111.7 million (an 86% increase) at the consolidated level.
- In addition, the company reported EBITDA (excluding one off) of PLN 18.8 million, which is 139% higher than the result in the previous year.
- Other parameters also show a positive trend in the development of the company’s business – operating profit amounted to PLN 15.5 million, increasing y/y by nearly 139%; net profit reached PLN 12.6 million, which is an increase of more than 218%; and net profit of the parent company (excluding one-off) reached PLN 6.2 million.
- Export sales already account for 76% of revenues, increased over 9M in 2022 to PLN 221.3 million, and reached a growth rate of 181%.
- The prospects for the last quarter of 2022 are stable, and demand for the Group’s services remains high.
– “The third quarter of 2022 was a breakthrough for the assessment of the financial situation of the Ailleron Group. Record revenues and profits at all levels indicate that the Group has moved to a new trajectory of quarterly financial performance. The PLN 18.8 million EBITDA and nearly PLN 6 million of net profit for the parent company in Q3 is a record, and clearly indicates the rightness of the decision to develop the Software Mind subsidiary in a joint-venture model with the Enterprise Investors fund. In less than 2 years since the start of the project, the Software Mind team led by Grzegorz Mlynarczyk has already managed to increase the scale of operations by almost four times while maintaining the level of business profitability. Before the announcement of the transaction with the Fund, Software Mind’s quarterly revenues were below PLN 25 million in 2020 and now they are approaching the record PLN 100 million already.” – comments Tomasz Król, CFO, Member of the Management Board of Ailleron SA
The Group’s dominant business segment, both in terms of the scale of operations and results, is Technology Services, which includes dedicated, end-to-end IT solutions for industries such as finance, telecommunications, e-commerce, online sports betting, and life science, developed for clients in the UK, US and Western Europe. Technology Services generated sales of approximately PLN 242.4 million in the entire 9 month period of 2022, an increase of 134% over the same period in 2021 when revenues reached approximately PLN 103.5 million. Within this segment, the results are already consolidated after the acquisitions made. As a result, operating profit amounted to nearly PLN 38 million (excluding one-off). It was nearly PLN 21 million better than in 9M 2021.
– “Software Mind, following its acquisitions in Europe and South America, is an increasingly strong player in the software development services market in Western Europe and the US, employing around 1,200 high-end IT professionals. We want to continue the dynamic development of the Software Mind group both through organic growth and by looking for more interesting acquisitions. We have a budget of PLN 100 million for this purpose. The financial results we are achieving show that we are heading in the right direction.” – adds Grzegorz Młynarczyk, CEO of Software Mind.
In FinTech – the level of realized revenues in 9M2022 was higher than in the same period of 2021, amounting to PLN 44 million (i.e., a 19% increase). Noteworthy is the fact that in Q3 alone, the FinTech segment has already generated a positive operating result. In addition, the company’s corporate banking business continues to pursue major long-term projects for several banking clients.
– “As for our business focused on the FinTech segment, we have started implementing a new strategy for 2023-2026 to improve our financial performance and cash generation capacity. The new strategy involves focusing on comprehensive software development services (Financial Technology Services) supported by off-the-shelf Ailleron platforms and components for banks, leasing companies, fintechs, and other financial industry players, while reducing investments in our products. FinTech segment’s new strategy aims to be a self-sustainable investment from 2023 and achieve profitability similar to Software Mind in the medium term once sufficient scale is achieved. The newly appointed Chief Operating Officer (COO) of Aillleron SA, Marcin Dąbrowski, and his team will be responsible for implementing the strategy. Since 2020 Marcin has expanded Ailleron SA’s retail banking, corporate banking, and leasing product divisions to include T&M services and was previously responsible for the global telecommunications segment at Comarch SA.” – says Rafał Styczeń, CEO of Ailleron SA.
– “We have more than 300 high-level professionals and executives experienced in building and implementing IT systems in large banks and other financial institutions. We also have strong international references from Livebank implementations at CITI Bank and Standard Chartered Bank in Asia. We see a strong trend in the market among banks and other financial institutions to develop their own dedicated IT systems. We want to address this market need by offering our highly experienced teams billed in the T&M model. In particular, we look forward to further expansion abroad – the first multi-year/long-term contracts have already been signed in 2022,” – says Marcin Dąbrowski, Vice President and COO of Ailleron SA.
The assumption is that Ailleron should be the first choice for financial institutions. The company’s actions in the HotelTech area are ultimately expected to lead to an MBO (Management Buy-Out) process. On November 14, 2022, a preliminary agreement for the sale of the HotelTech segment was signed.
Ailleron is a capital group listed on the Warsaw Stock Exchange. Its subsidiary, Software Mind, provides next-generation generation technology services to innovative companies in Western Europe and the United States (including Silicon Valley) and, under the Amplitiv brand, to the telecommunications industry. Software Mind is developed jointly with Enterprise Investors, the largest private equity fund in Central and Eastern Europe. Ailleron focuses on technology services for banks, leasing companies, fintechs and other financial industry players, mainly in Europe and Southeast Asia. It creates innovative IT solutions based on cloud technology and artificial intelligence. Ailleron’s clients include banks such as Santander, Citibank, BNP Paribas, Credit Agricole and Standard Chartered. The Ailleron Group provides services to more than 160 clients in 40 countries. It employs more than 1,500 specialists in Europe, the US and South America. Nearly 80% of the Group’s revenue comes from foreign markets.