Connections (CC), a digital transformation company listed on the AeRo market of the Bucharest Stock Exchange, has increased its revenue by 203% in 2023, reaching 177 million lei, while net profit has surged by 162%, surpassing 11 million lei.
These results encompass the activities of all companies in which Connections Consult holds stakes (Connections Consult - 100%, Connections Technologies - 100%, Outsourcing Support Services - 100%, Brusch Services - 100%, Connections Serbia - 100%, Connections Bulgaria - 100%, 10Plus - 25%), with the most significant contribution to growth coming from Software Development and Integration services provided by the issuing company.
In 2023, Connections' focus was on acquiring new clients and enhancing the relevance of projects in terms of technical complexity. Internally, attention was directed towards strengthening corporate governance and carrying out initiatives to increase capital through free share issues at a ratio of 1:10, completed in August.
The company's development strategy aimed at both short-term results and the medium-to-long-term consolidation of its market-leading position in complex digitalization projects.
"Last year was marked by turbulence on a global scale. The world economy and geopolitical status quo faced various uncertainties, compounded by the rapid growth of artificial intelligence in technology, posing significant challenges to economic actors across multiple sectors. Nevertheless, for Connections, 2023 proved to be the best year in its history so far, marking several essential milestones for the road ahead – from revenue, which nearly tripled the estimates from the listing memorandum, to the successful initiation and completion of two highly complex projects (8 million euros and approximately 10 million euros), with significant impacts on clients and, by extension, on society. Additionally, it underscored the consolidation of expertise as a technology integrator, providing us with a strong edge in the tech industry," stated Bogdan Florea, Founder and co-CEO of Connections.
2023 also brought a significant growth in the team's competencies, directly impacting the revenue and profit structure.
The proposed revenue and expenditure budget for the year 2023, as well as the estimates outlined in the listing memorandum on the AeRO market, were surpassed significantly, both in terms of revenue (116%) and net and gross profit (102% for both).
Throughout 2023, all verticals of the group experienced leaps between 5-10%, with a spectacular growth (549%) in the RPA and software development division.
Thus, the largest contribution to the growth in 2023 came from Software Development and Integration services, which accounted for 73% of the group's total revenue, compared to 36% in 2022.
In addition to expanding the client portfolio, enhancing the relevance of projects undertaken, and boosting internal team competencies, in 2023 Connections Consult continued to explore opportunities for acquiring stakes in new companies with potential.
“We collaborate with two companies specialized in M&A and continuously monitor potential acquisitions. The M&A market context still maintains high expectations following the sharp growth observed in the years 2019-2022. However, we have chosen to exercise caution and refrain from engaging in advanced discussions with target companies throughout the past year. In our opinion, valuations remain unrealistic and do not justify the investment demands from sellers at this time. Nevertheless, we remain open to realistic investment opportunities in fields such as cybersecurity, custom software development, AI, and ERP system implementation," stated Radu Marcu, co-CEO of Connections Consult.
In 2024, Connections aims to take its first steps towards accessing the main market of the Bucharest Stock Exchange (BVB), strengthening corporate governance, and preparing the company for the transition to IFRS reporting. Strategic development will continue this year with the support of the newly established Advisory Board and by expanding the Board of Directors with two additional seats, providing a much stronger mechanism of checks-and-balances at the management level. Additionally, the company's leadership plans to host investor events aimed at enhancing investor confidence and transparency in Connections' operations, as well as fostering solid partnerships with key players in the stock market. This includes transitioning to quarterly financial reporting starting in 2025.
The comprehensive report detailing the 2023 Financial Results is available for consultation at the following link.
The information provided by KomuniK
The SIGNAL IDUNA companies concluded 2024 with a total gross written premium volume of approximately RON 424 million, marking an aggregated growth of 16% compared to the previous year. These financial results reflect the consolidation of a sustainable development strategy, supported by portfolio expansion, digitalization, the launch of new solutions for both individual and corporate […]
Kantar Romania launched, during an event dedicated to their clients, "The Trust Factor – Building Brands That Endure Uncertainty", the top 20 brands that manage to inspire the greatest confidence among the Romanian consumers, based on the analysis of 162 brands from 12 sectors*. In a period marked by uncertainty and skepticism, trust becomes the […]
Balancing career success with personal growth is a challenge many professionals face today. As the pressure to achieve and perform increases, many begin to crave more than just success: they want clarity, alignment, and a deeper sense of purpose. For Lin Holmquist, business coach and one of Europe’s most acclaimed experts in Tantra, Yoga, and […]
CFR Călători, the state-owned railway company for passengers, announced that the first train entirely made up of rolling stock modernized with funds from the EU-backed Recovery and Resilience Fund (PNRR) was introduced on the Bucharest North – Constanța route. The train, which is already running, consists of a locomotive delivered by the Softronic factory in […]
The first edition of Urban Habits (nUH), a festival aiming to be “a space for ideas, debates, co-creation, and experimentation,” takes place between April 26 and April 27 at Lokal and on Erou Ion Călin Street, which will be temporarily transformed into a pedestrian space. The program will address themes ranging from innovation, design, and […]
Mall Moldova, the largest shopping center in the Moldova region, officially opened on April 17 in Iași, covering 110,000 sqm. Developed by Prime Kapital, in partnership with MAS P.L.C., Mall Moldova is part of a large-scale investment plan carried out by the two investors in Iași, worth approximately half a billion euros, which also includes […]
