This company's branding has already reached 11,275 peopleand his is followed by 22 Storybook users.On average, the company has been rated 4.8 points.and commented 21 times.

Activity report 2022

Excellent Business Solutions Estonia AS (hereinafter Excellent) is one of the largest providers of economic software in Estonia, operating since 2002. More than 20,000 Estonian companies have entrusted a significant part of their daily activities to Excellent. Since 2020, Excellent has been offering services in Latvia through its subsidiary, where the primary goal in the early years is to increase visibility and market share and to build an efficiently functioning organization. The company's annual turnover has grown to over 5 million euros in its 20-year history and the company has been profitable every year of operation. The number of employees in Estonia reaches 30 people.

Excellent's turnover in 2022 was over 5.1 million euros, which means a growth of nearly 12% compared to the previous year, the same was the growth of operating profit, which reached over 1.6 million euros. In 2023, the goal is to increase turnover and raise operating profit again above the level of 1.7 million euros, where it was also in 2020.

year.

As Excellent's customer base is a cross-section of the entire Estonian economy, the risks are well diversified and the company's turnover does not depend on the success or failure of any specific economic sector, but on the development of the Estonian economy as a whole. In 2022, Estonia's GDP fell by 1.3% according to Statistics Estonia, the main reason for which were difficulties in the exporting sector. A small economic downturn is also expected for 2023 due to the continuation of Russia's military activities in Ukraine and recent monetary policy in our region, which has led to an increase in interest rates.

Excellent's profitability mainly depends on labor costs, which make up the largest part of the cost base and are in an accelerating growth trend considering inflationary pressures. The operating profit margin (operating profit / sales revenue) for 2022 is at the same level as in 2021 (32%), which is a good result considering the sharp increase in costs. Although there is significant pressure for cost growth in the following periods, the goal is not to fall below the current level with the mentioned ratio.

The ratio of liabilities and equity (interest-bearing liabilities / equity) has fallen below the level of 1.25, which is even better than the original goal set for the financial year. Considering relatively high interest rates, the plan is to further reduce the share of borrowed capital and permanently bring the ratio of liabilities and equity below the level of 1.0.

In addition to continuing to increase the visibility of Standard Books in Latvia and product development and maintaining service quality in both countries, the main focus of the company in 2022 was also to balance the sharp increase in costs caused by inflation with sales growth. For this, a certain price list adjustment was also carried out after several years.

The main investments in 2022 were related to the server park and monitoring and information security solutions. Most of the server park hardware was updated, which increased both volume and speed, allowing to further improve service quality and successfully cope with the predicted growth of data volumes for the coming years.