The leading IT developer Sirma Group Holding (SKK BU) expects 25% y/y rise in consolidated sales and 100% y/y rise in net profit in 2016, the company’s CEO Tsvetan Alexiev said in an online webinar with investors.

Revenues kept growing according to plan

FY2015 cons top line was BGN 33.97m, up 21.9% y/y, while net income was BGN 1.57m, down 45% y/y vs normalized FY 2014 net income.
Alexiev also said he expects 30% y/y rise in EBITDA in 2016 with FY2015 EBITDA at BGN 9.57m. He also added the company would strive to reach 50% recurring revenues from the current level of 33%.

Mobilising resources for US expansion

The management guidance is in line pre IPO forecasts as the company plans to speed up investments in improving sales and marketing capacity. Sirma plans to mobilize resources to expand in the US and Western European markets.

In 2016, it plans to set up an office in the US, mirror image of its structure in Bulgaria. Yavor Djonev, key founder and member of the board, will relocate to the US to run the office there for the next two years and develop the company’s expansion plans in the country. Sirma will also expand its team both in the US, mostly project managers, and in Bulgaria, mostly developers to speed up the expansion. Overall, Sirma CEO said he expects group personnel to go up from 15% to 20% in 2016, with major (50% to 60%) increase in the sales and marketing team of the Group.

Tsvetan Alexiev: Dividends expected in 2017

At the investor questions related to dividend policy, Tsvetan Alexiev dividend from Sirma Group Holding could be expected in 2017.

Key subsidiaries in 2016

Alexiev also gave guidance on the development of the key subsidiaries in the Group over in 2016. He expects the biggest subsidiary and key service provider in the Group, Sirma Solutions to achieve 29% y/y rise in sales to BGN 20m by expanding in the US and Western Europe as well as develop its loyalty platform Loyax, including via additional funding from an outside investor.
For Ontotext, the key product subsidiary in the group, Alexiev expects 25% rise in sales in 2016 as well as 50% product revenues and 33% recurring revenues.

Watch the full Q4 2015 results and plans 2016 from the webinar

Financial reports of Sirma Group Holding