Making Science, a technology and digital marketing consultancy specialising in e-commerce and digital transformation, has presented its financial results for the 2021 financial year.
The consultancy has achieved a record turnover, reaching €108.2m (£90.2m), 87.7% more than the previous year.
Additionally, gross margin amounted to €28.4m (£23.6m), which represents an increase of 91.7% compared to 2020. Recurring EBITDA was €5.1m (£4.2m) between January and December, 40.4% more than in the same period of the previous year. Recurring EBITDA represents 18.3% of the gross margin and has been reduced by 6.7 points as a consequence of the internationalisation and integration expenses that Making Science has incurred in 2021. Without taking into account the aforementioned corporate operations, the EBITDA margin on gross margin is 22.7%.
According to the company's annual report, the figures reflect significant organic growth in 2021. In “like-for-like” terms (compared to the existing scope as of December 31, 2020), turnover increased 52.9% and the recurring EBITDA stood at €6.4m (£5.3m), 34.2% more than in 2020. Additionally, the gross margin was €23.4m (£19.5m), 40% more than in the same period of the previous year.
Likewise, it should be noted that in 2021 the company's research and development activity has doubled, growing over 100% compared to 2020. This increase is related to the development of high-value technological tools for Making Science’s clients.
The company’s internationalisation plan has required significant investment throughout the year. The objective of these investments has been to provide structure to the acquired companies, including Nara Media in the UK, and carry out integration programs. These international acquisitions have resulted in sizable growth in all indicators of the international business income statement.
Notably, the pro forma gross margin contributed by the international businesses (business done outside of Spain) was €9m (£7.5m), 29.4% of the Group's pro forma gross margin, compared to 12.9% in 2020. Additionally, the pro forma EBITDA reached €2.2m (£1.8m), which represents 31% of the Group's pro forma EBITDA (excluding the e-commerce business).
José Antonio Martínez Aguilar, chairman & CEO of Making Science, said, “The results for 2021 reflect our solid path, as reflected in our business plan that we are fulfilling year after year. The seven corporate operations carried out in the previous year have allowed us to continue with our objective of being present in the 20 main digital marketing markets by 2026. We have also increased our headcount, which is fundamental because in the technology industry, having the best talent makes a huge competitive difference.”
The company will continue its aggressive international expansion strategy and has announced a plan to raise €30m (£25m) of debt and capital to take on this expansion. These €30m of financing, together with the €12m (£10m) obtained in 2021, will provide the company with the necessary funds to achieve its objective of exceeding €20m (£16.6m) in EBITDA in 2023. The company has appointed Renta 4, Alantra, and EBN as placement agents for this financing round.