Connections Consult, a Romanian digital transformation company, registered a 203% increase in revenues in 2023

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Bogdan Florea, Founder and co-CEO of Connections

Bucharest, March 4, 2024RBJ – 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.

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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.

Connections’ clients include global companies and medium-sized Romanian companies from industries such as Banking, FMCG, Energy, Telecom, and Retail, as well as governmental institutions in Romania.

Since September 2021, Connections has been listed on the AeRo market of the Bucharest Stock Exchange, in the Premium segment.

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