Improved EBIT and EBIT margin in the fourth quarter
Fourth quarter 2020 (fourth quarter 2019)
Full year 2020 (full year 2019)
Significant events in the fourth quarter
Significant events after the end of the quarter
Comments from CEO Martin Malm:
In terms of result, 2020 didn’t develop as we expected at the beginning of the year, but in light of the pandemic, I am overall satisfied how we handled the challenges we faced and actively acted to reduce costs and create conditions for sustainable growth over time.
Transcendent Group's revenues in the fourth quarter compared to the corresponding period last year decreased by 10.8 percent, and for the full year 2020 by 2.6 percent. As the Group has extensive operations, primarily in Norway and the Netherlands, revenues have been negatively impacted by the strengthened Swedish krona. Adjusted for currency effects, the revenues for the full year of 2020 compared to last year would be in principle unchanged. The measures announced in the first quarter has entailed structural cost savings that will have a significant positive impact on our costs in the future. It should also be emphasised that the negative trend during Q2 and Q3 has been turned with an operating margin of 7.7 percent in the fourth quarter.
In the RegTech business area, which is our digital GRC offering, our customer base continues to grow. The subscription product RFA is currently used by around 30 customers and generates recurring revenue. The accelerated digitalisation will further drive demand in this business area. The focus in 2021 will be on sales efforts of the existing products RFA and RFA Monitor, but also improvements and new development.
With a focused organization, we will continue to emphasise sustainable growth and benefit from digitalisation and increased demand for GRC services and products. Linked to this, we work continuously to develop the range of services. The beginning of 2021 has started well, which gives us confidence in a more normalized market going forward and expanded business opportunities. In addition, the reduced cost base will give us good conditions for increasing profitability during the year.
Link to the report
The report is attached in this press release and is available at https://transcendentgroup.com/investor-relations/