Admicom (ADMCM) Pre-Silent Call summary

Executive summary

• Strategy execution has proceeded as planned despite a stagnant construction market, with volumes down 0.8% year-over-year in June and July.

• Leadership team strengthened with the addition of Henna Kotilainen in September, supporting strategic planning for coming years.

• An Investor Day is planned by year-end to outline the next strategy period, with details to be finalized after the upcoming board meeting.

Trading performance and revenue trends

• Construction market remains at low volume levels, with no significant improvement despite some positive macroeconomic indicators.

• 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 due to this diversification.

Profitability and margins

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

• A new billing model for Ultima Accounting will shift from customer-estimated to historical revenue-based monthly fees, reducing future downsell volatility.

• Adjustment fees will still be issued to certain customers next year as the billing model transition is phased.