The year 2019 has been a successful year for cBrain. The accounts show revenue growth of 16% and earnings growth of 237%. Subscriptions have grown to 47% of revenue and exports have increased to 14% of revenue.
Revenue has grown to DKK 96.4 million in 2019, against DKK 83.5 million in 2018, corresponding to a revenue growth of 16%. cBrain has thus managed to significantly increase revenue growth compared to 2018, when the accounts showed a revenue growth of 4%.
Earnings grew to DKK 10.8 million before tax (EBT), against DKK 3.2 million before tax (EBT) in 2018, corresponding to earnings (EBT) of 11% and earnings growth of 237%.
cBrain's initial expectations for the fiscal year was a revenue growth of 10-15% and earnings (EBT) of 5-10%, which is why the company is pleased to reach revenue growth of 16% and earnings (EBT) of 11%.
Sales of subscriptions grew to DKK 45.6 million in 2019, against DKK 40.2 million in 2018, and now account for 47% of total revenue. This, combined with the fact that cBrain can note a very high customer loyalty, ensures that cBrain provides significant security in relation to future revenue.
Exports have grown to a turnover of DKK 13.6 million in 2019, compared to a turnover of DKK 6.5 million in 2018, corresponding to an export growth of 109%. This means that the export share has grown to 14% of total revenue, compared to 8% of total revenue in 2018.
cBrain's international growth plan is based on the sale of the company's standard software, which is marketed under the name F2.
The growth plan is based on a strong domestic market position as a supplier to the public sector, where more than 50 Danish state authorities have today introduced F2 as a digital platform. At the same time, the growth plan is underpinned by a unique Danish national position in public digitalization, with Denmark being ranked number 1 in the United Nations e-Government Survey.
It is therefore with great satisfaction that cBrain notes continued good progress in the Danish market. Thus, in 2019, cBrain has announced a number of new important agreements with Danish government authorities, including the Ministry of Education and Research, the Danish Environmental Protection Agency and the Labor Court. At the beginning of January 2020, cBrain also announced an agreement with the Ministry of Business and Industry.
cBrain sees the year 2019 as a breakthrough internationally. cBrain continued its growth in Germany and more than doubled exports, which now account for a larger share of revenue (14%). At the same time, cBrain announced the first agreements in 3 new markets in the Emirates, France and the US respectively.
CBrain has succeeded in becoming a supplier to one of the major authorities in the German central administration. This represents a great potential for cBrain, and cBrain is therefore pleased to have won a number of new orders with the authority in 2019. At the same time, through 2019, cBrain has established an office in Berlin, with around 10 employees currently working on projects at the authority concerned.
In April, cBrain announced the first order in the Emirates, with F2 to support a national union process in one of the federal ministries. In the fall, cBrain won another 3 orders from the relevant authority, and cBrain has recently been prequalified and invited to bid for another task with the authority.
In July, cBrain announced that it had won its first public offering in France. This is a preliminary project of a large French authority, located in Paris. Here, cBrain is working to demonstrate how F2 can support selected cases and public administration with the authority.
In November, cBrain announced that it has agreed to supply an F2-based solution to one of the major national authorities of the US Federal Government in Washington DC.
The US market is difficult to enter, especially as a supplier with a focus on the public sector. The US public sector is the largest public buyer of IT in the world, and as part of the company's long-term growth plan, cBrain has therefore worked for more than 4 years to enter this market. For cBrain, it is therefore a milestone that it has now succeeded in winning the first order, not least because it is one of the very large national authorities in the US central administration.
cBrain is financially strong at the start of 2020. At year-end 2019, cBrain has assets totaling DKK 121.0 million and equity has grown to DKK 91.9 million, while cash and cash equivalents amount to DKK 31.2 million at the end of 2019. This means cBrain has the financial strength to maintain its growth strategy both nationally and internationally.
CBrain's goals and expectations are to maintain continued growth and earnings in 2020 at the same level as in 2019, with revenue growth of 12-15% and earnings (EBT) of 7-10%. This expectation is based on the company's well-known and planned activities, where Denmark continues to be by far the largest part of revenue. However, it is noted that cBrain is working internationally on a number of large orders, which may give rise to a positive adjustment of expectations for turnover in 2020. However, sales to public authorities, especially internationally, are characterized by being uncertain and usually taking a long time. Which is why these orders are not included in expectations.
Due to cBrain's satisfactory development, the Board of Directors recommends that the dividend be raised by 10%, so that a dividend of DKK 0.12 per share is paid.
As a fundamental element of the company's activities, cBrain leads an aggressive CSR strategy. cBrain has a particular focus on world goal # 16: Peace, justice and strong institutions, as cBrain sees digital support for the work of public authorities as essential to supporting and developing strong and transparent democratic institutions.
cBrain is therefore pleased that in 2019, the company took first place on the Top10 list of this year's high jumpers in Economic Weekly's rating of the listed companies' statutory CSR reporting.