Reported Earnings • May 15
First quarter 2026 earnings released First quarter 2026 results: Revenue: kr.16.2m (up 4.3% from 1Q 2025). Net loss: kr.454.0k (loss narrowed 77% from 1Q 2025). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 52 percentage points per year, which is a significant difference in performance. Aankondiging • May 14
Wirtek A/S Maintains Earnings Guidance for the Year 2026 Wirtek A/S maintained earnings guidance for the year 2026. For the year, the company expects revenue in the range of DKK 65.0 million - DKK 70.0 million, growth of +1% to +9% compared to 2025. Aankondiging • Mar 25
Wirtek A/S, Annual General Meeting, Apr 15, 2026 Wirtek A/S, Annual General Meeting, Apr 15, 2026, at 15:00 Romance Standard Time. Reported Earnings • Mar 19
Full year 2025 earnings released Full year 2025 results: Revenue: kr.66.3m (down 7.7% from FY 2024). Net loss: kr.2.66m (down 223% from profit in FY 2024). Aankondiging • Mar 18
Wirtek A/S Announces Earnings Guidance for the Year 2026 Wirtek A/S announced earnings guidance for the year 2026. For the period, the company expects revenue in the range of DKK 65.0 million to DKK 70.0 million, corresponding to growth of approximately 1% to 9% compared to revenue of DKK 64.3 million in 2025. New Risk • Feb 01
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Danish stocks, typically moving 11% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (11% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Earnings have declined by 31% per year over the past 5 years. Market cap is less than US$10m (kr.40.8m market cap, or US$6.47m). Buy Or Sell Opportunity • Jan 23
Now 22% overvalued Over the last 90 days, the stock has fallen 2.8% to kr.4.82. The fair value is estimated to be kr.3.96, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Buy Or Sell Opportunity • Jan 07
Now 26% overvalued Over the last 90 days, the stock has fallen 9.2% to kr.4.86. The fair value is estimated to be kr.3.85, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Buy Or Sell Opportunity • Dec 12
Now 28% overvalued Over the last 90 days, the stock has fallen 9.4% to kr.4.94. The fair value is estimated to be kr.3.87, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Buy Or Sell Opportunity • Nov 27
Now 23% overvalued Over the last 90 days, the stock has fallen 14% to kr.4.80. The fair value is estimated to be kr.3.89, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Reported Earnings • Nov 12
Third quarter 2025 earnings released Third quarter 2025 results: Revenue: kr.16.6m (down 12% from 3Q 2024). Net loss: kr.293.0k (down 177% from profit in 3Q 2024). Reported Earnings • Aug 14
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: kr.15.5m (down 8.0% from 2Q 2024). Net loss: kr.1.02m (loss widened kr.930.0k from 2Q 2024). Aankondiging • Aug 13
Wirtek A/S Updates Earnings Guidance for the Year 2025 The Board of Directors for Wirtek A/S has reviewed an updated financial prognosis for fiscal year 2025. Based on this review, the Board of Directors revises the 2025 financial expectations as follows: revenue for 2025 is expected in the range of DKK 64.0 million - DKK 69.0 million, down from the previously announced DKK 70.0 million - DKK 75 million. The updated revenue guidance reflects a slower-than-anticipated recovery from the significant revenue reduction at the beginning of 2025 following the completion of a major client engagement with a Danish client. While new orders and increased activity with existing clients are helping close this gap, the pace of recovery will not be sufficient to meet the original revenue expectations. Aankondiging • Jul 10
Wirtek A/S Deepens Energy Technology Commitment with Participation in MAST Project Wirtek announced its participation in the MAST (Managing Sustainability Trade-offs) project, a European research initiative under the ITEA innovation framework. The project introduces a novel approach to software sustainability by addressing the often-conflicting priorities of energy efficiency and long-term maintainability. Wirtek will receive funding of up to EUR 200.000 during the project. MAST brings together multiple partners across Europe, including research institutions and technology companies, and will run through 2027. As part of the Danish consortium alongside Aalborg University, Wirtek contributes with a specialised use case built o n Wappsto, the company's IoT/cloud platform. Wappsto powers energy monitoring and automation solutions, including Tenant Consumption Management, a building-level submetering and analytics solution. The use case tackles a core sustainability challenge: Software is often engineered for speed, maintainability, or portability, frequently at the cost of energy efficiency. To address this, the use case introduces a trade-off mechanism that allows users and developers to choose between performance-optimised and energy-efficient operations. Visual dashboards reveal the impact of each choice across latency, maintainability, and carbon footprint, enabling data-driven software design decisions. By embedding these mechanisms directly into the platform, the use case explores how IoT-cloud systems can self-assess and optimise the trade-offs between technical and environmental sustainability. The initiative supports MAST's mission to advance sustainable software architecture across sectors. At the same time, it directly supports Wirtek's Clean Code to Green Code (C2G) ESG initiative, which focuses on identifying the carbon impact of software not just during development, but also when software is actively running on end-user systems, including cloud-hosted solutions. Participation in MAST supports the company's long-term strategy to deliver smart, future-ready platforms, and is expected to enhance the company's software product offering and open new opportunities in sustainable IoT, edge, and cloud computing. New Risk • Jun 23
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Danish stocks, typically moving 9.4% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.4% average weekly change). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Cash payout ratio: 125% Earnings have declined by 10% per year over the past 5 years. Market cap is less than US$10m (kr.46.6m market cap, or US$7.18m). Aankondiging • May 16
Wirtek A/S Reiterates Earnings Guidance for 2025 Wirtek A/S maintained earnings guidance for 2025. The company expects revenue for 2025 in the range of DKK 70.0 million - 75.0 million, a growth of -3% to +4% compared to 2024. The announced 2025 expectations are retained but the development will be followed closely by the Board. Reported Earnings • May 15
First quarter 2025 earnings released First quarter 2025 results: Revenue: kr.15.5m (down 14% from 1Q 2024). Net loss: kr.2.00m (down 282% from profit in 1Q 2024). Over the last 3 years on average, earnings per share has fallen by 33% per year whereas the company’s share price has fallen by 29% per year. Aankondiging • May 14
Wirtek A/S to Report Fiscal Year 2025 Results on Mar 18, 2026 Wirtek A/S announced that they will report fiscal year 2025 results on Mar 18, 2026 Aankondiging • Apr 23
Wirtek A/S Approves Dividend Wirtek A/S at its Annual General Meeting held on 23 April 2025, approved dividend payment of DKK 0.23 per share with a nominal value of DKK 0.15. Upcoming Dividend • Apr 17
Upcoming dividend of kr.0.23 per share Eligible shareholders must have bought the stock before 24 April 2025. Payment date: 28 April 2025. Payout ratio is on the higher end at 82%, and the cash payout ratio is above 100%. Trailing yield: 3.8%. Lower than top quartile of Danish dividend payers (4.8%). Higher than average of industry peers (2.7%). Declared Dividend • Mar 31
Dividend reduced to kr.0.23 Dividend of kr.0.23 is 39% lower than last year. Ex-date: 24th April 2025 Payment date: 28th April 2025 Dividend yield will be 3.5%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (82% earnings payout ratio) but not covered by cash flows (101% cash payout ratio). The dividend has increased by an average of 9.8% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 4.5% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Aankondiging • Mar 31
Wirtek A/S, Annual General Meeting, Apr 23, 2025 Wirtek A/S, Annual General Meeting, Apr 23, 2025, at 15:00 Romance Standard Time. Aankondiging • Mar 28
Wirtek A/S Proposes Dividend Wirtek A/S at its Annual General Meeting to be held on 23 April 2025, proposed dividend payment of DKK 0.23 per share with a nominal value of DKK 0.15. Reported Earnings • Mar 20
Full year 2024 earnings released Full year 2024 results: Revenue: kr.71.9m (up 2.0% from FY 2023). Net income: kr.2.17m (down 46% from FY 2023). Profit margin: 3.0% (down from 5.7% in FY 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 26% per year whereas the company’s share price has fallen by 27% per year. Aankondiging • Mar 17
Wirtek A/S Provides Earnings Guidance for 2025 Wirtek A/S provided earnings guidance for 2025. For the full year, the company expects revenue in the range of DKK 70.0 million to DKK 75.0 million, reflecting a change of -3% to +4% compared to DKK 71.9 million in 2024. Aankondiging • Feb 25
Mads Greiffenberg Joins Wirtek as New Chief Financial Officer, Effective 1 June 2025 Wirtek A/S announced that Mads Greiffenberg will join Wirtek as new Chief Financial Officer (CFO), effective 1 June 2025. Mads brings extensive financial leadership experience to Wirtek. He joins from his position as CFO at S.D. Kjærsgaard and has previously served as CFO at Kingsland, owned by Waterland Private Equity, and held the role of Financial Manager at Portspecialisten. Mads also has a solid background in auditing, having worked at Deloitte and Beierholm. Mads holds a master's degree in accounting and auditing (Cand.merc.aud) and an Executive MBA in Strategic Thinking. New Risk • Jan 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Danish stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (kr.61.4m market cap, or US$8.55m). Minor Risks Dividend is not well covered by earnings (122% payout ratio). Share price has been volatile over the past 3 months (6.9% average weekly change). Profit margins are more than 30% lower than last year (3.4% net profit margin). Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to kr.8.00, the stock trades at a trailing P/E ratio of 26.4x. Average trailing P/E is 35x in the IT industry in Denmark. Total loss to shareholders of 54% over the past three years. Aankondiging • Dec 12
Wirtek A/S Revises Earnings Guidance for the Year 2024 Wirtek A/S revised earnings guidance for the year 2024. For the year, the company expects revenue in the range of DKK 72.5 million - DKK 73.5 million, down from the previously announced DKK 74.0 million - DKK 78 million . Reported Earnings • Nov 15
Third quarter 2024 earnings released Third quarter 2024 results: Revenue: kr.18.8m (up 7.6% from 3Q 2023). Net income: kr.380.0k (down 56% from 3Q 2023). Profit margin: 2.0% (down from 4.9% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 23% per year whereas the company’s share price has fallen by 26% per year. New Risk • Nov 06
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr.66.9m (US$9.63m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 100% Cash payout ratio: 205% Market cap is less than US$10m (kr.66.9m market cap, or US$9.63m). Minor Risks Share price has been volatile over the past 3 months (6.4% average weekly change). Profit margins are more than 30% lower than last year (4.1% net profit margin). Shareholders have been diluted in the past year (2.8% increase in shares outstanding). Buy Or Sell Opportunity • Oct 09
Now 20% overvalued Over the last 90 days, the stock has fallen 7.9% to kr.9.30. The fair value is estimated to be kr.7.74, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has declined by 20%. New Risk • Oct 06
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.8% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 100% Cash payout ratio: 205% Minor Risks Share price has been volatile over the past 3 months (7.3% average weekly change). Profit margins are more than 30% lower than last year (4.1% net profit margin). Shareholders have been diluted in the past year (2.8% increase in shares outstanding). Market cap is less than US$100m (kr.71.3m market cap, or US$10.5m). Buy Or Sell Opportunity • Aug 31
Now 20% overvalued Over the last 90 days, the stock has fallen 6.5% to kr.9.35. The fair value is estimated to be kr.7.77, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has declined by 20%. Reported Earnings • Aug 15
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: kr.16.8m (down 2.8% from 2Q 2023). Net loss: kr.87.0k (down 107% from profit in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 17% per year whereas the company’s share price has fallen by 21% per year. Buy Or Sell Opportunity • Aug 15
Now 22% overvalued Over the last 90 days, the stock has fallen 9.1% to kr.9.50. The fair value is estimated to be kr.7.79, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 21% over the last 3 years. Earnings per share has declined by 17%. New Risk • Aug 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Danish stocks, typically moving 6.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (231% cash payout ratio). Share price has been volatile over the past 3 months (6.7% average weekly change). Market cap is less than US$100m (kr.82.7m market cap, or US$12.1m). Aankondiging • Jul 29
Wirtek A/S Announces Resignation of Aurora Pestesan as Group CFO Aurora Pestesan has informed Wirtek A/S about her decision to resign her position as Group CFO of Wirtek for personal reasons. She will continue as CFO until mid-October 2024. Aurora Pestesan has spearheaded the digitalisation of many key processes through the implementation of a new ERP system and has contributed to numerous important achievements during her time at Wirtek. Aankondiging • May 17
Wirtek A/S to Report Fiscal Year 2024 Results on Mar 19, 2025 Wirtek A/S announced that they will report fiscal year 2024 results on Mar 19, 2025 Reported Earnings • May 16
First quarter 2024 earnings released First quarter 2024 results: Revenue: kr.18.0m (flat on 1Q 2023). Net income: kr.1.10m (up 20% from 1Q 2023). Profit margin: 6.1% (up from 5.0% in 1Q 2023). Aankondiging • May 16
Wirtek A/S Provides Earnings Guidance for the Year 2024 Wirtek A/S provided earnings guidance for the year 2024. For the year, company expects Organic Revenue in the range of DKK 74.0 Million – 78.0 Million, a growth of 5% - 11% compared to 2023. New Risk • Apr 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Danish stocks, typically moving 6.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (133% cash payout ratio). Share price has been volatile over the past 3 months (6.1% average weekly change). Shareholders have been diluted in the past year (3.6% increase in shares outstanding). Market cap is less than US$100m (kr.80.4m market cap, or US$11.4m). Upcoming Dividend • Apr 11
Upcoming dividend of kr.0.38 per share Eligible shareholders must have bought the stock before 18 April 2024. Payment date: 22 April 2024. Payout ratio is a comfortable 72% but the company is paying out more than the cash it is generating. Trailing yield: 3.7%. Lower than top quartile of Danish dividend payers (5.6%). Higher than average of industry peers (2.1%). Aankondiging • Mar 28
Wirtek A/S, Annual General Meeting, Apr 17, 2024 Wirtek A/S, Annual General Meeting, Apr 17, 2024, at 15:00 Central European Standard Time. Agenda: To consider the board of directors' report on the activities of the company during the past financial year; to consider the Adoption of the annual report; to consider the Resolution on distribution of profit or loss recorded in the annual report adopted by the general meeting; to consider the Resolution on discharge of the board of directors and executive board; to consider the Appointment of members of the board of directors; to consider the Appointment of auditor; to consider the Resolution to authorize the board of directors to purchase treasury shares; to consider the Any proposals from the board of directors and/or shareholders; and to discuss other matters. Declared Dividend • Mar 27
Dividend of kr.0.38 announced Shareholders will receive a dividend of kr.0.38. Ex-date: 18th April 2024 Payment date: 22nd April 2024 Dividend yield will be 3.7%, which is higher than the industry average of 1.8%. Sustainability & Growth Dividend is covered by earnings (89.5% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 17% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 28% over the last 5 years, which if continued should maintain adequate earnings cover for the dividend. Reported Earnings • Mar 20
Full year 2023 earnings released Full year 2023 results: Revenue: kr.70.4m (up 7.2% from FY 2022). Net income: kr.4.01m (down 21% from FY 2022). Profit margin: 5.7% (down from 7.7% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to kr.11.00, the stock trades at a trailing P/E ratio of 23.6x. Average trailing P/E is 20x in the IT industry in Europe. Total loss to shareholders of 47% over the past three years. Buy Or Sell Opportunity • Mar 13
Now 27% overvalued after recent price rise Over the last 90 days, the stock has risen 1.2% to kr.9.88. The fair value is estimated to be kr.7.78, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 35% over the last 3 years. Earnings per share has declined by 5.4%. Aankondiging • Feb 12
Wirtek A/S Announces Earnings Guidance for 2024 Wirtek A/S announced earnings guidance for 2024. For the full year, the company expects an organic revenue growth of 5% to 11%. New Risk • Dec 07
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr.68.0m (US$9.84m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (kr.68.0m market cap, or US$9.84m). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (5.1% net profit margin). Shareholders have been diluted in the past year (3.3% increase in shares outstanding). Reported Earnings • Nov 13
Third quarter 2023 earnings released: EPS: kr.0.11 (vs kr.0.20 in 3Q 2022) Third quarter 2023 results: EPS: kr.0.11 (down from kr.0.20 in 3Q 2022). Revenue: kr.17.5m (up 5.8% from 3Q 2022). Net income: kr.859.0k (down 42% from 3Q 2022). Profit margin: 4.9% (down from 8.9% in 3Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 10% per year. Aankondiging • Oct 25
Wirtek A/S Revises the Revenue Guidance for the Year 2023 Wirtek A/S revised the revenue guidance for the year 2023. For the year, the company expectation of revenue is expected in the range DKK 70.0 million - 72.0 million, down from previously announced DKK 73.0 million - 78.0 million. New Risk • Oct 18
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: kr.68.4m (US$9.68m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Market cap is less than US$10m (kr.68.4m market cap, or US$9.68m). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (6.0% net profit margin). Shareholders have been diluted in the past year (3.3% increase in shares outstanding). Aankondiging • Aug 17
Wirtek A/S Approves the Election of Janie C. Nielsen as New Independent Member of the Board of Directors Wirtek A/S on 15 August 2023 held an Extraordinary General Meeting electronically approved the board of directors proposed the election of Janie C. Nielsen as new independent member of the board of directors. Janie C. Nielsen is a highly experienced corporate attorney specialised particularly within the fields of employment and labour law, as well as corporate law, including in relation to mergers and acquisitions. Janie C. Nielsen also has a wealth of knowledge in employee and management incentives, including bonuses, options, and warrants schemes. Through various leadership roles in law firms and other businesses, as well as serving on several boards, Janie C. Nielsen has acquired extensive general business acumen. Aankondiging • Aug 15
Wirtek A/S (CPSE:WIRTEK) commences an Equity Buyback Plan for 10% of its issued share capital, under the authorization approved on April 19, 2023. Wirtek A/S (CPSE:WIRTEK) commences a share repurchases on August 3, 2023, under the program mandated by the shareholders in the Annual General Meeting held on April 19, 2023. As per the mandate, the company is authorized to repurchase up to 10% of the share capital. The shares may not be purchased at a price deviating by more than 5% of the most recently quoted market price at the time of purchase on Nasdaq Copenhagen A/S. The authorization is valid until next ordinary Annual General Meeting.
On June 28, 2023, the company announced a share repurchase program. Under the program, the company will repurchase up to 60,000 shares, representing to 0.78% of the total number of outstanding shares, for DKK 1 million. The purpose of the program is to cover the remaining shares needed as part of the Earn-out shares-based payment to the sellers of the CoreBuild companies. The program will end on or before September 30, 2023. Reported Earnings • Aug 10
Second quarter 2023 earnings released Second quarter 2023 results: Revenue: kr.17.3m (up 12% from 2Q 2022). Net income: kr.1.22m (up 11% from 2Q 2022). Profit margin: 7.1% (in line with 2Q 2022). New Risk • Jun 19
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.0% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (22% accrual ratio). Minor Risks Dividend is not well covered by cash flows (194% cash payout ratio). Share price has been volatile over the past 3 months (7.0% average weekly change). Profit margins are more than 30% lower than last year (6.0% net profit margin). Shareholders have been diluted in the past year (5.0% increase in shares outstanding). Market cap is less than US$100m (kr.85.0m market cap, or US$12.5m). Reported Earnings • May 12
First quarter 2023 earnings released First quarter 2023 results: Revenue: kr.18.1m (up 11% from 1Q 2022). Net income: kr.915.0k (down 53% from 1Q 2022). Profit margin: 5.0% (down from 12% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Aankondiging • May 11
Wirtek A/S Provides Financial Guidance for 2023 Wirtek A/S provided financial guidance for 2023. Organic Revenue for 2023 is expected in the range of DKK 73.0 million - 78.0 million, a growth of 11% - 19% compared to 2022. Upcoming Dividend • Apr 13
Upcoming dividend of kr.0.42 per share at 3.3% yield Eligible shareholders must have bought the stock before 20 April 2023. Payment date: 24 April 2023. Payout ratio is a comfortable 62% but the company is paying out more than the cash it is generating. Trailing yield: 3.3%. Lower than top quartile of Danish dividend payers (4.1%). Higher than average of industry peers (2.1%). Reported Earnings • Mar 23
Full year 2022 earnings released Full year 2022 results: Revenue: kr.66.3m (up 46% from FY 2021). Net income: kr.5.08m (up 5.9% from FY 2021). Profit margin: 7.7% (down from 11% in FY 2021). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Feb 14
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to kr.14.85, the stock trades at a trailing P/E ratio of 18.7x. Average trailing P/E is 21x in the IT industry in Europe. Total returns to shareholders of 120% over the past three years. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 2 highly experienced directors. Independent Director Jens Uggerhoj was the last director to join the board, commencing their role in 2009. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Nov 11
Third quarter 2022 earnings released Third quarter 2022 results: Revenue: kr.16.5m (up 21% from 3Q 2021). Net income: kr.1.47m (down 8.6% from 3Q 2021). Profit margin: 8.9% (down from 12% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Aankondiging • Nov 09
Wirtek A/S Revises Earnings Guidance for the Year 2022 Wirtek A/S revised earnings guidance for the year 2022. The company now expects revenue expectations for 2022 are DKK 64.0 million -DKK 69.0 million, a growth of 41% - 52% compared to 2021. Reported Earnings • Aug 12
Second quarter 2022 earnings released Second quarter 2022 results: Revenue: kr.15.4m (up 59% from 2Q 2021). Net income: kr.1.10m (up 243% from 2Q 2021). Profit margin: 7.1% (up from 3.3% in 2Q 2021). The increase in margin was driven by higher revenue. Aankondiging • Aug 10
Wirtek A/S Maintains Earnings Guidance for 2022 Wirtek A/S maintained earnings guidance for 2022. For the period, the company expects Revenue in the range of DKK 64.0 million to 69.0 million, a growth of 41% - 52% compared to 2021.