“These figures are part of a best case scenario, where we sign a major contract. If the contract is not signed, EBITDA will reach EUR4.2 million by the end of the year. In any case, the numbers we are about to reach fit within the targets set in the beginning of the year,” Dragan said.
The major contract in question is currently under negotiation with a large, yet unnamed, agricultural company.
In the first nine months of the year, the company posted sales of EUR18.43 million, compared to EUR16.7 million in the same interval of the previous year.
Just like in the previous year, the greatest contribution came from the integrated computer system Charisma ERP, which generated revenue of EUR13.67 million, namely 74% of the company’s overall sales.
“Revenue comes 76% from sales achieved on the Romanian market, while the remaining 24% comes from export,” said the company’s marketing and strategy manager, Daniel Ionescu.
The company’s plans for international expansion came to fruition in 2010, when the company opened branches in Bulgaria, Greece, Serbia and Qatar. These plans will continue this year as well, through the opening of a branch in Austria by the end of the year.
With an investment of some EUR300m000m the new branch is expected to break-even by the end of the first year of activity.
For 2012, the company’s strategy involves focusing solutions and services on four pillars (retail/distribution, leasing, construction and medical), by turning the sales force towards medium and large accounts, as well as by launching a special range of services for small- and medium-sized enterprises.
Sales are expected to rise 25% in 2012, to some EUR30 million.
Over the next three years, Total Soft aims to overshoot a threshold of EUR50 million in sales, while the profit margin should reach 20%, spelling an EBITDA of at least EUR10 million.
“Export will be the key to growth. Revenue from export will reach 50% from the current 24%,” Dragan said, adding he also aims to expand in Poland, by acquiring a local player with sales of more than EUR10 million.
Total Soft has been active on the market for 15 years and it has 450 employees.
The company is 90.5% owned by Ferabosco Investments Limited (Cyprus), while Liviu Dragan holds 7.9% and Florin Manea holds 1.6%.
Total Soft is a part of the Global Finance group, one of the largest private equity firms in Southeast Europe.