Group financial overview
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CGit Year-end report 2022
|Group financial overview (TSEK)
|Operating profit before depreciation and amortisation (EBITDA)
|Operating result (EBIT)
|Profit after tax
|Earnings per share after tax (SEK)
|Number of shares
|1 576 000
|1 576 000
|1 576 000
|1 576 000
- We will continue our growth journey in 2022 and stick to our strategy of building our knowledge house in AI/Deep Learning, applied AI and advanced IT infrastructure and we will do it profitably!
- Turnover increases by SEK 23.3 million to SEK 162.3 million (SEK 139 million in the same period last year). At the moment, delivery times are around 6 months in the areas concerned and I estimate that by H2 2023 we should be back to previous levels of around 6 to 8 weeks from order to delivery. My conviction is that the component shortage will not affect our growth plans in 2023.
- Annual recurring revenue (ARR) from operating activities increases by 2.75% and amounts to SEK 26.2 million (SEK 25.5 million in the same period last year).
- The gross margin for operating activities increased by 1.95 per cent to 29.6 per cent (29 per cent).
- EBITDA amounts to SEK 5.76 million (SEK 4.92 million), an increase of 14.5 percent. EBITDA for Q4 is SEK 672 thousand (SEK 1.3 million in the same period last year).
- CGit has a positive cash flow from operating activities, enabling continued growth-generating investments in the area of AI solutions and Deep Learning as well as applied AI. This is a conscious effort and part of the company’s long-term plan. Cash and bank for 2022 is 7,1 MSEK (5,9 MSEK same period last year).
- The Group’s earnings per share in 2022 amount to SEK 0.81 (SEK 0.63 in the same period last year). For the fourth quarter of 2022, it amounts to SEK -0.22 (SEK 0.21).
Annual General Meeting 2023 – 16 May 2023
Interim report Q1 2023 – 23 May 2023
Interim report 2023 – 18 August 2023
CEO has the floor
CGit makes growth with positive results! Q4 will end in the same way as the whole of 2022, with component shortages and increased electricity costs. However, we have been very marginally affected by other crises in the world. We have decided to have a mindset that we will not participate in the recession! We will continue to grow and build our knowledge base to be ready when the economy turns. We can say that we are growing on all levels. We are growing in terms of staff and we are growing in terms of turnover and we are doing it profitably!
I’ll touch on some of the investments we made in 2022 that will have a significant impact in 2023 and beyond:
Aixia, a subsidiary of CGit AB, develops smart tools and software that help companies and organisations realise, grow and accelerate their AI projects.
Aixia is originally a joint venture between CGit AB and Asymptotic AB.
Aixia is now a wholly owned company of the CGit Group. The acquisition has impacted our 2022 results but is an important component of the continued growth journey we are in the midst of.
CGit Holding AB (publ) is in the final stages of being approved for share trading on the OTCQX trading platform in the United States. Trading in the stock on the OTCQX will start in Q1 2023.
OTCQX is a US trading platform operated by OTC Markets Group for securities not listed on a national exchange. The purpose of listing on the OTCQX is to respond to growing interest from US investors and to increase access to the US capital markets.
We see an increasing interest from North American investors in CGit and not least in our AI related services, concepts and solutions and we want to enable these investors to trade in the stock. Through OTCQX, we facilitate international investors and institutions.
AI as a Service
As we communicated earlier, our investment in AI as a Service continues. During Q4, we have increased our focus on applied AI for industrial companies, which has been well received.
We are currently working with a number of customers to solve challenges such as quality control that until now were not possible to solve with traditional systems.
Our approach to explaining how AI can help businesses and how CGit can realise the benefits of the technology has met with a massive response. My assessment is that the market has taken a step forward in its maturity and the willingness to embrace and incorporate technology into traditional activities is becoming more widespread.
AiQu AiQu is an easy-to-use orchestrator that helps companies make more efficient use of their resources, mainly GPUs. This speeds up development and makes it more cost-effective. The tools traditionally used for
scheduling and orchestration of CPU-based HPC environments is no longer the optimal choice for GPU-based systems. Organisations want their very valuable investments in both hardware and staff to be used as efficiently as possible. That’s why we, CGit, have developed AiQu, a versatile tool to help maximise your organisation’s AI initiatives.
AiQu is now a ready-made product, adapted for the global market and used by a number of large organisations, and with the increasing use of applied AI, AiQu will really make a difference.
Since 2007, when the company was founded, CGit has been working on automated IT operations for data centres, networks and clients. Although the technology has changed since then, the concept is still alive and the business model looks much the same. What has changed, however, is the world we live in, and that has led us to invest heavily in the area of IT operations.
The number of cyber attacks is increasing by around 300% annually and attacks are becoming increasingly civilised. Another worrying trend is that more and more attacks are targeting small and medium-sized enterprises (SMEs) that lack, or at best have a poor understanding and/or knowledge of IT security.
The way we work has also changed fundamentally in recent years. Work is no longer a place, it’s something we do. Our customers expect to be able to work from wherever they are using whatever device they have in hand, whether it’s a client computer or a smartphone.
With our concept, we help companies not only by offering a secure and fully managed client operation service, but we also help our customers by working strategically with collaboration and further development of both the service and the collaboration in general.
The result this year has been Modern Workplace!
I claim that Modern Workplace is one of the most secure services on the market in this area.
In the second half of 2022, we found that the component shortage is impacting us by reducing deliveries
has gone from about 6-8 weeks to a forecast of about 1.5-2 years for some of the product solutions we are working on. (Important to stress is that the majority of our product solutions are not affected by component failures at all). The direct consequence of that meant that we continue to do business but that it will be delivered in the next year. We then quickly started to expand our consultancy team to compensate with resource-related consultancy assignments. It has paid off, even if it has taken longer than we expected. Today, we have an incredibly competent and well-functioning consultancy team and although it cannot compensate in terms of turnover for advanced solution businesses affected by the component shortage, we have created a healthy revenue leg that complements it. We can also be pleased that the peak of the component shortage is over and we are starting to see a recovery already, although we are not back to normal levels yet.
In summary, we continue to grow and we do so profitably! Our strategy, approach, offering and delivery are holding up well despite all the uncertainties and exceptional impacts that the world has experienced in the past year. We enter 2023 with a stronger and better equipped organisation to continue our growth journey as previously planned and although we intend not to participate in the recession, we are also reviewing our cost structure to manage the business through 2023 to be properly equipped for the growth journey we have ahead of us.
Mattias Bergkvist, CEO
For more information, please contact the Company at:
CEO Mattias Bergkvist
Telephone: 031-762 02 40
This information is information that CGit Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 3 February 2023.
CGit is an IT company based in Gothenburg. The company was founded in 2007 and is part of a group with the wholly owned subsidiary CGit AB. The company focuses on advanced data centre solutions, including specialised solutions and consulting services for Artificial Intelligence (AI) development and production. The company also develops its own software solutions in AI and offers specialist consultancy services. CGits also offers a full range of operational and hosting services in both data centre solutions and client management. The company has about 40 employees and the market CGit operates in is Global.