Today, HTML24’s annual report for 2018 was published.
In mid-2017, HTML24 made a big change.We had previously been a traditional project-based digital agency. We developed project after project, month after month.However, we have never managed to find a business model that ensured that we could both:
- Increase the top line, month by month
- Keep risk at a low level , month by month
And what does that really mean?
The thing is that with a 100% project-based digital agency, in principle, it functions as a restaurant or other service company, which every day has to sell its available hours. If revenue increases, the risk increases simultaneously, as one would typically have growth in fixed expenses in order to follow the variable growth in turnover.
However, this is a risky growth.
If variable turnover grows, it is – by nature – best only to increase variable expenses. If you have high fixed costs without a corresponding high fixed turnover, you actually have a base of expenses that can not follow a decrease in revenue.
What can you do about it?
After having struggled with this problem since HTML24 was founded back in 2010, we finally came up with a solution in 2017. In 2017 and 2018, we implemented several structural changes in HTML24.
We streamlined our workflow and tools inside the company, while we focused on working with customers who would have a continuous need with us. This increased focus on fixed revenue, data-integration and digitalisation solutions.
Now we are at the beginning of 2019 and our financial accounts for 2018 have just been released. We have made a profit before tax of DKK 3 million. It is not just a record – it is a direct result of a changed business model that focuses even more on creating value for our customers while significantly reducing internal risk in the operation of HTML24. In 9/10 cases, our customers will now have fixed service agreements and ongoing projects. That is a huge satisfaction. We expect to continue the good course in 2019 and we are satisfied that we have had success with changing the way we work.
Thanks for a good year to all our customers, business partners, former employees, current employees and all other stakeholders.
Here you can download the entire HTML24’s annual report for 2018.
Adm. Director, HTML24