Business Forum • 12 September, 2024 at 12:14 PM
Connections Consult (CC), a digitalization company listed on the BVB, AeRo market, announces significant financial performance improvements for the first half of 2024. Net profit has exceeded the budgeted growth for this year by 200%, reaching RON 4.67 million, which is a 29% increase compared to the same period in 2023. The company's revenues are also on an upward trend, showing a 15% increase from the first semester of the previous year and a dynamic business line performance that ensures balanced development.
"Early in 2024, at Connections, we aimed to focus on improving business efficiency, and the first six months demonstrate that we are achieving this goal successfully: profitability is rising across all indicators, including both gross and net results, as well as profit margins—an achievement all the more relevant given the ongoing challenges and consistent declines in the IT market quarter after quarter. The results we are reporting today confirm that effective management generates enhanced value, and CC is a pillar of stability for our shareholders," says Bogdan Florea, Founder and Co-CEO of the company.
The negative effects of the market context have only impacted the company's results at the level of initial expectations—actual figures versus budgeted ones. However, Connections reports double-digit growth compared to the previous year in key indicators, including a reduction in debt levels, and continues to anticipate an even better second half of the year.
"The first half of the year was, overall, a period during which local market players were cautious about launching new digitalization projects, focusing instead on a thorough analysis of IT providers' capabilities. Our advanced level of expertise is one of our strong points, so Connections is well-positioned to achieve significant growth and relevant projects in the second half of the year. We thank the entire team, as their talent and capabilities are the major differentiators,” says Radu Marcu, Co-CEO of the company.
In addition to achieving revenues 15% higher than the first semester of 2023 (RON 47.1 million), Connections Consult also experienced increases in expenses, primarily related to higher salary costs. During the same period, the company also internally launched the Stock Option Plan (SOP), through which the first 50 employees have become shareholders, in order to, as Bogdan Florea specifies, "clearly show the team that Connections' success is directly linked to their performance".
In parallel with enhancing business efficiency, Connections is strengthening its governance by developing a new resource management and workflow system, which is currently being operationalized to ensure a solid foundation for medium- and long-term development.
"We are making steady progress toward a clear multi-year vision", says the company's founder, "and in the second half of the year, we will extend our efforts to securing funding for research in cybersecurity and artificial intelligence. We likely have some of the most educated and skilled colleagues in the market in the area of artificial intelligence, with experience and proven experimental results over the past two years, well ahead of the global market surge".
The company will also intensify its efforts to secure foreign territories and projects, which generated 30% of revenues in the first semester, and is also focusing on accelerating digitalization projects funded through the National Recovery and Resilience Plan (PNRR) and other European funds.
Connections Consult (stock symbol: CC) is a leader in the digital transformation market in Romania, boasting over 300 employees, delivery centers in Bulgaria and Serbia, sales offices in the USA and UK, and representatives in Germany and the Middle East. The company specializes in Intelligent Automation, IT Infrastructure Support, Digital Business Process Management, and Software Development On Demand.
In July 2018, Connections entered into a partnership with UiPath, the world's fastest-growing Enterprise Robotic Process Automation (RPA) platform, with which it has already successfully implemented robotic automation processes in key industries. Additionally, Connections Consult consistently invests in the development of software products for various industries, such as audit and consultancy, green energy, and specialized bots in accounting and HR.