Admicom (ADMCM) Pre-Silent Call summary

Executive summary

• Strategy execution remains on track despite a stagnant construction market, with leadership expressing satisfaction in progress and team composition.

• New leadership addition, Henna Kotilainen, has strengthened the executive team and is contributing to strategic planning.

• Plans are underway for an Investor Day or CMD by year-end to outline the next strategy period.

Trading performance and revenue trends

• Construction market volumes remain at low levels, with a -0.8% year-over-year decline in June and July.

• Client base is diversified across new building, renovation, engineering, and specialist construction, with specialist and infrastructure segments performing better than new residential construction.

• Small and medium-sized clients have shown resilience by shifting focus to maintenance, repair, and industrial projects.

• Client revenue growth and resilience have outperformed the broader market.

Profitability and margins

• Downsells are primarily driven by customers reducing user licenses, project counts, or revenue estimates, impacting contracted revenue.

• A new billing model for Ultima Accounting will reduce reliance on customer revenue estimates, moving to historical revenue-based monthly fees.

• Adjustment fees will still be issued to certain customers next year, especially those with high adjustment fees, to avoid revenue loss.