Conscia achieved record-high revenue and earnings in the 2023/24 financial year, driven by particularly high growth in cybersecurity and services business. Strategic focus on managed services pays off.
Conscia has almost doubled its revenue and earnings over the last five years with both revenue and normalized EBITDA showing an average annual growth of 19%. In the financial year 2023/24, group revenue was DKK 4,563 million, corresponding to a growth of 5%, on the back of an exceptionally strong 2022/23. The fastest growing segment was Services with managed services increasing by 21%. Normalized EBITDA grew 17% to DKK 510 million and cash conversion reached a record high of 158%. The rise in earnings can be attributed to the strategic focus on cybersecurity and services supported by consistent cost control. Normalized EBITDA margin expanded from 10.0% to 11.2%.
Conscia provides a comprehensive range of services and solutions, grounded in deep expertise in cybersecurity, networking, and hybrid cloud. This year, the company’s competencies were expanded to include observability, the practice of collecting and analyzing data to understand and diagnose IT system and application performance end to end.
“We are pleased with our sustained, profitable growth, driven largely by robust sales and commercial initiatives across the group. Last year, we experienced exceptional top-line growth, in part due to the normalization of supply chain challenges following the Covid pandemic. Not only have we retained this business, but we’ve also enhanced margins across the board – a highly satisfying achievement.” says Group CEO Erik Bertman, Conscia.
Recurring cybersecurity and other services revenue increased by 19% to DKK 1,122 million. With 21% growth, managed services emerged as the fastest-growing area. IT infrastructure solutions grew slightly to DKK 3,441 million. Conscia’s revenue has grown by an average of 19% annually over the past five years, underscoring robust commercial performance beyond the extraordinary results in 2022/23. This growth highlights Conscia’s success in gaining market shares in its strategic market segments.
Accelerated focus on cybersecurity and managed services
In 2023/24, Conscia updated the business strategy towards 2028/29 with the ambition to become a major player as a cybersecurity and managed services company in Europe.
“Growing global uncertainties mean that companies and organizations increasingly need reliable and trusted IT partners. Building on our established role as a secure, mission-critical IT infrastructure provider to over 1,000 large organizations, we’re expanding our services to drive growth in cybersecurity and service offerings across the Group. The shift to managed services reflects our customers’ need for agility and scalability to adapt swiftly to market changes. Our IT infrastructure services and solutions are designed to support exactly that,” says Erik Bertman.
Significant M&A activities
This year marked significant M&A activity, including a strategic entry into the UK market through the acquisition of ITGL Limited, a company renowned for its robust customer base and a team of 70 skilled employees. Additionally, Conscia expanded the cybersecurity expertise by acquiring Swedish Splunk specialist Siemify Software AB later in the year.
After the reporting period, in late 2024, Conscia further extended its capabilities and scale by acquiring Kanari Group, a Nordic leader in observability solutions for complex IT environments with 40 employees. Furthermore, the acquisition of PlanNet 21 Group marked our entry into Ireland and expanded our strategic platform in the UK and Ireland. PlanNet 21 is a prominent provider of cybersecurity, networking, and managed services with 200 people across the Irish and UK markets.
The period’s net result shows a loss of DKK 103 million, influenced by expansion through M&A and higher interest rates, which have increased financial costs. The primary business focus remains on achieving strong operational results, maintaining solid cash conversion, and delivering high performance that creates value for Conscia’s customers.
Customer and employee satisfaction scores, measured as NPS, stand at 77 and 57, respectively, considered very high for the industry. These strong ratings are important for Conscia to stay relevant and highly valued by both customers and employees in the years to come.
Cash conversion reached a record high of 158% (up from 149% last year), due to effective management of receivables, reduced inventory and better terms with vendors. Additional cash came from payments for services that have not yet been recorded as revenue. The strong cash conversion supports future M&A activity and other growth opportunities.
Conscia aims to have a healthy mix of organic growth and acquisitions to continually win market share, growing the business with double-digit percentage in the long term. For 2024/25, Conscia expects to deliver growth in earnings as EBITDA, adjusted for non-recurring costs, in the range of 8% to 12% and add more than 80 employees compared with 2023/24. Non-recurring costs are primarily related to M&A activity, due diligence and integration costs.
| Million DKK | 2023/24 | 2022/23 | 2021/22 |
| Revenue | 4,563 | 4,337 | 3,277 |
| Gross profit | 1,198 | 1,080 | 921 |
| Normalized EBITDA* | 510 | 434 | 351 |
| Normalized EBITDA margin, % | 11.2% | 10.0% | 10.7% |
| Result for the period | (103) | (64) | (99) |
| Cash flow from operating activities | 348 | 242 | 5 |
| Cash conversion | 158% | 149% | 63% |
(*) Reported EBITDA adjusted for non-recurring items
For further information, please contact:
Group Chief Sales & Marketing Officer Daniel Siberg, Conscia,
+46 734 082 778, [email protected].
