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
Daniel Christian Hulea, a Romanian man accused of contributing to the NetWalker ransomware attacks, has been sentenced to 20 years in prison after pleading guilty to conspiracy to commit computer fraud and wire fraud, according to a public announcement from the US Department of Justice. NetWalker was a Ransomware-as-a-Service operation launched in 2019, which recruited […]
The new Romanian government, headed by the same Social Democratic prime minister, Marcel Ciolacu, recently made its governance program public. Among its objectives are reducing the level of bureaucracy, maintaining the flat tax rate, and reducing the budget deficit to 7% in 2025. To reach its goals, the government reduced the number of ministries to […]
The European Commission (EC) announced on Monday, December 23, that it disbursed payments under the Recovery and Resilience Facility (RRF) to Czechia, Germany, Italy, Portugal, and Romania, totaling EUR 26.8 billion in loans and grants. Under this latest disbursement, Romania received EUR 37.05 million as part of its second payment request. By comparison, according to the...
Romanian film trilogy Moromeții, directed by Stere Gulea, will be presented at the 54th edition of the Rotterdam International Film Festival, taking place from January 30 to February 9, 2025. This renowned European event, which annually presents hundreds of films across more than 20 sections, will feature the three films - Moromeții (1987), Moromeții 2 […]
Romania issued state aid worth EUR 1.3 billion during 2019-2023, with 62% of the projects being granted to foreign companies, according to an analysis conducted by EY Romania. The sectors that benefited the most from aid were the automotive industry, technology, manufacturing (light industry), medical industry, and the food and beverage industry. According to the […]
The Abracadabra – Secrets of Magic interactive exhibition will transform Arcub – Hanul Gabroveni in Bucharest into a magical universe starting December 27, 2024. Running until May 4, 2025, the event offers visitors the opportunity to explore a labyrinth of magic, featuring over 20 interactive attractions and more than 500 live performances by MAGITOT and […]
