Talenom as an investment

Outlook and guidance

Talenom's outlook and guidance for 2023 (published 31 January 2023)

Talenom estimates that 2023 net sales will be about EUR 120–130 million and that euro-denominated EBITDA and operating profit will grow from 2022.

Talenom expects the accounting services market to grow in all of the company's operating countries in 2023 and demand to remain stable. In addition, consolidation in the industry is expected to continue accelerated by, for instance, digital disruption and tightening legislation concerning electronic financial management. Talenom’s goal is to continue robust growth and expansion in all of its operating countries and other European countries with significant potential to expand as a forerunner in the digitalisation of the accounting services industry.

In addition to organic growth, the guidance includes an assessment of possible acquisitions during 2023. Most of total net sales growth in 2023 is expected to come from acquisitions. Expanding into new market areas enables the company’s long-term growth.

Acquisitions will have a negative impact on relative profitability in the short term. The profitability of an acquisition target will rise to the level of Talenom’s core business in an estimated three years when the new systems have been fully implemented at the target. In Sweden, implementation of new software started in autumn 2022. Talenom’s investments in automation, customer-friendly user interfaces and the small customer segment in recent years, as well as the internationally scalable software platform will increase the depreciation level relative to net sales, but operational profitability measured by EBITDA will improve.

Previous outlook and financial guidance for 2022 (Published December 16, 2021)

Talenom expects the accounting services market to grow in all of the company's operating countries in 2022 and demand to remain stable. In addition, consolidation in the industry is expected to continue due to, for instance, digital disruption. Talenom’s goal is to continue robust growth and expansion in all of its operating countries and other European countries with significant potential to expand as a forerunner in the digitalisation of the accounting services industry.

Talenom expects 2022 net sales to be EUR 100-110 million and operating profit (EBIT) to be EUR 15-18 million.

The guidance includes the estimates for the Swedish accounting firms Kjell Wengbrand Redovisnings AB and MH Konsult Väst AB, acquired at the end of November 2021. The acquisitions will be completed at the beginning of 2022. The net sales transferred to Talenom from the acquired companies is some EUR 3.3 million annually.

In addition to organic growth and the above-mentioned acquisitions, the guidance includes an estimation of possible acquisitions during 2022, which are subject to significant uncertainty. As in the ongoing year, majority of the total net sales growth in 2022 is expected to come from acquisitions in Finland and Europe. Expanding into new market areas enables the company’s long-term growth.

Acquisitions will have a negative impact on relative profitability in the short term. The profitability of an acquisition target will rise to the level of Talenom’s core business in an estimated three years when the new systems have been implemented at the target. In Sweden, implementation of new software is planned to start in autumn 2022. Talenom’s investments in automation, customer-friendly user interfaces and the small customer segment in recent years will increase the depreciation level relative to net sales, but operational profitability measured by EBITDA will improve.