Q4 2020 highlights:
In Q4 2020, five new SimCorp Dimension and two new stand-alone SimCorp Coric li-cense deals were signed, of which
- Six deals were included in order intake and revenue
- One deal was included in order intake, but revenue recognition has been de-ferred.
In Q4 2020, SimCorp signed a large multi-year strategic agreement with State Street Bank International GmbH.
Order intake was EUR 56.6m, an increase of EUR 21.5m compared with Q4 2019.
Reported revenue was EUR 146.2m, an increase of 14.3% compared with Q4 2019, primarily due to strong additional license sales.
EBIT was EUR 58.4m and EBIT margin was 40.0% compared with EBIT of EUR 34.0m and EBIT margin of 26.6% in Q4 2019.
Free cash flow was EUR 21.3m, an increase of EUR 16.4m compared with Q4 2019.
FY 2020 highlights:
In 2020, 12 new SimCorp Dimension and five new stand-alone SimCorp Coric license deals were signed, of which
- 13 deals were included in order intake and revenue
- For two deals, both order intake and revenue are being recognized over the contract period
- For two deals, both order intake and revenue recognition have been deferred.
Order intake was EUR 115.1m, an increase of EUR 15.4m or 15.5% compared with 2019.
At December 31, 2020, the order book amounted to EUR 56.1m, an increase of EUR 17.9m compared with the order book at the same date last year.
Reported revenue was EUR 456.0m, an increase of 0.3% compared with 2019.
EBIT was EUR 124.3m compared with EUR 127.8m in 2019.
EBIT margin was 27.3% compared with 28.1% in 2019.
Measured in local currencies, SimCorp achieved revenue growth for 2020 of 1.4% and an EBIT margin of 27.6%, which for revenue growth was in the middle of the guidance range of between minus 2% and plus 4% and for EBIT margin was at the upper end of the range of between 25.0% and 28.0%, both measured in local cur-rencies.
Net profit was EUR 88.3m compared with EUR 96.9m in 2019.
Free cash flow was EUR 91.8m, an increase of 29.5% compared with EUR 70.9m in 2019, and cash conversion was 104%.
The net cash position was EUR 53.1m compared with EUR 11.9m at year-end 2019.
Total assets were EUR 470.8m at December 31, 2020 compared with EUR 437.9m at year-end 2019.
SimCorp entered 2021 with EUR 289.2m of the full year’s revenue signed, an im-provement of EUR 10.4m or 4% compared with last year, due to a stronger inflow of professional services agreements.
The Board of Directors intends to recommend to shareholders at the Annual General Meeting 2021 that dividends of EUR 40.1m be declared at the rate of DKK 7.50 per share compared with DKK 7.50 last year, equivalent to 45% (2019: 41%) of profit for the year and 44% (2019: 56%) of free cash flow in 2020.
In addition, provided there are no specific requirements for liquidity, SimCorp expects to initiate a new share buyback program in 2021. The intention is to purchase shares for EUR 40m over the next 12 months in two half yearly buy-back programs of EUR 20m each.
- At the AGM 2021, the Board of Directors will propose Susan Standiford as new member of the Board of Directors.
Financial guidance 2021:
- For 2021, SimCorp expects revenue to grow between 6% and 11% and EBIT margin to be between 24.5% and 27.5%, measured in local currencies.
Klaus Holse, SimCorp CEO comments: “SimCorp delivered a solid performance in 2020 de-spite challenges caused by the COVID-19 pandemic with 17 new client wins, revenue of EUR 456.0m, EBIT of EUR 124.3m, and free cash flow of EUR 91.8m. Our performance was under-pinned by the strength of our client base, significant new wins, as well as a resilient and com-mitted group of employees who responded seamlessly in a challenging year. We believe that our strategy continues to position the company, its employees and our clients for a successful and prosperous future.”
Press release by SimCorp