Fabrity, a software house specializing in bespoke software development, product design, and low-code solutions, increased its sales in 2021 by 15%.
For Fabrity, 2021 was another year when the company increased its sales, maintained the previous business results, and added new clients to its portfolio, while still investing in development projects and increasing organizational efficiency.
In 2021, sales-generated earnings increased by 15% year-on-year. The core business division responsible for providing software development and maintenance services for enterprise clients increased its sales by 23% year-on-year, whilst the digital products division (formerly K2 Digital Products, acquired in 2020) underwent a series of important transformations. EBIT was at 13.2% and adjusted EBIDTA at 14.0%. The latter two indicators were slightly lower when compared with 2020 results. This was due to the considerable investments in building HR, sales, and marketing resources.
Given all this and a very demanding business surrounding, we can see these as positive results that position us well for further growth in 2022.
Extending client portfolio
In 2021, Fabrity focused on strengthening its relationships with existing clients and ensuring the highest quality of the services provided. As a result, we added new clients to our portfolio, including a German pharmaceutical company, two of the largest companies on the Polish market providing private healthcare services, a leading provider of medical diagnostics services, a leading manufacturer of industrial engines, two international insurance companies, a well-known cosmetics brand, and a transportation and logistics software provider.
Most importantly, the biggest contracts were signed at the end of the year, which creates a solid base for a strong earnings increase in 2022.
Fabrity also strengthened its existing client relationships, including a leading Polish bank, an international fuel company, EU agency Frontex, a world leader in electrotechnical devices, and several manufacturing companies form the DACH region.
Earnings from exporting services to foreign markets and to international organizations located in Poland exceeded 50% in 2021.
Major areas of investment
In 2021, Fabrity invested heavily in the following areas:
Developing HR resources
Since Fabrity has been realizing many long-term and business-critical projects for corporate clients, it is crucial for us to have on board highly skilled engineers. Therefore, in 2021, we invested heavily in building up our HR resources to be able to recruit and retain top tech talents.
Sales
In 2021, we implemented a new sales strategy focusing on three main service lines: software engineering, product design, and low-code solutions. By implementing new tools and processes and integrating the efforts of the sales and marketing departments, we want to reach new clients effectively and realize new projects for existing ones.
The transformation of K2 Digital Products
Following the acquisition in August 2022 of K2 Digital Products, a company specializing in designing and building digital products, Fabrity needed to include in its service lines new types of services, enlarge the technology stack, adjust the client segmentation, and change marketing communication. Last but not least, we needed to speed up the process of acquiring new clients. All these efforts were accomplished successfully.
Low-code platforms
In 2021, Fabrity focused on low-code platforms that allow citizen developers to build business apps with no or minimal coding skills. We invested in teams specialized in building low-code solutions based on Microsoft Power Platform, which is becoming increasingly popular among potential corporate clients.
Also, for many years we have been working closely with automation and robotic process automation providers Nintex and UiPath in building hyperautomation and RPA solutions for our clients.
Most importantly, Fabrity invested in developing its own low-code solution—FastAPP—that proved to work well in solutions for document management and domain systems integration. In 2021, we built 20 solutions for 5 clients on the FastAPP platform. In 2022, we plan to invest even more in developing our resources in the low-code area.
We believe that focusing on low-code will allow us to increase earnings despite the tech talent shortage on the market. Low-code platforms can be implemented on the client’s side allowing them to automate their day-to-day operations and processes. In this way, Fabrity strengthens its role as the client’s key partner in the digital transformation journey.
Plans for the future
In 2022, Fabrity will focus on:
- growing the company through acquisitions both in Poland and on the European markets where we are providing our services,
- investing further in the development of our own low-code platform FastAPP to increase earnings from selling licenses and services,
- developing HR resources for recruiting and retaining top tech talents,
- building up resources in sales and marketing,
- targeting DACH countries.
Fabrity’s management board believes that it is possible to increase earnings by 20–30% by harnessing the company’s potential and building on the investments from the previous year.
