Strong revenue growth continued for Entersoft in the first half of the year at a faster pace than the one experienced in the first quarter of the year. At Group level, revenues amounted to 12.58 million Euros compared to 8.03 million in the corresponding period last year, recording an increase of 57%. The Group’s pre-tax profits increased at an even higher rate than revenues and amounted to 4.16 million Euros, compared to 2.62 million Euros in the corresponding period last year, recording an increase of 59%. Most of the revenue increase is due to organic growth for all products and services of the Group, while recent acquisitions have contributed to a smaller degree. For first time in the current half, the Group has added the results from the acquisitions of the activity Plexis ERP from Computer Life as well as the revenues of Optimum. Wedia results have been consolidated only for the second quarter. This performance boosts even more the backlog of projects for the second half and creates positive expectations for the entire year. The increase in annual recurring revenue from new software contracts is also quite encouraging, as well as subscription revenue coming from software as a Service (SaaS) and e-Invoicing. The Group’s cash and cash equivalents continued to grow and stood at around 7.92 million euros at the end of the first half of the year, despite the disbursement of funds for the acquisition of Wedia, the reorganization of Optimum and for the dividend of 1,8 mil euros provided for FY 2020. These increased funds, combined with the possibility of borrowing, provide additional investment opportunities that the management estimates that for the current year could reach up to 13-15 million euros.
The company will continue the effort for high growth combining new acquisitions and strong organic growth. On top of all this Management decided investments in new products to enter new markets in the years ahead. More specifically, Wedia will be investing in new products for Business-to-Business eCommerce but also for demanding Business to Consumer (B2C eShops) in combination with the Backoffice CRM and Analytics products of Entersoft. At the same time, Entersoft is investing in a new product for Human Resource Management, Time Attendance and Payroll and is preparing to enter this emerging market.
In the first half of the year, new commercial agreements were concluded in the field of ERP, CRM, Retail and Mobile Field Sales (SFA) with several medium and large companies such as MARKS & SPENCER, retail chains COOK SHOP, PAROUSIASI and BAG STORIES, VECHRO varnish paint industry, Pharmaceutical Cannabis Industry TIKUN OLAM, Energy company EUNICE Laboratories, ETPA Packaging, Innovis Pharma, FlexCar, SOUROTI SA, SMYRDEX SA and hundreds of other smaller companies. In the field of WMS software and automation for large warehouses, agreements were concluded both by the parent and the subsidiary Optimum with large Groups such as DELTA Food, Neurosoft (subsidiary of OPAP), Damavand, the COOPERATIVE PHARMACISTS of WESTERN GREECE, 3PL companies such as ATHINAIKI and Parametros Logistics and several smaller companies. The subsidiary Retail-Link S.A. continued its successful course with new agreements for EDI services, e-invoicing and e-books AADE with major companies such as CardLink, Esti Foods, DunaPack Packaging, Somfy Hellas, Amdocs Hellas, Yfantis, Souroti, VIOMAL, Gegos Super Market and many more smaller companies.