Massive investment turns corona crisis into growth for IMPACT
11. June 2021
With several retail chains and luxury brands in its portfolio, IMPACT was hit hard by the COVID crisis. Organizational changeover and the will to invest paved the way for the agency to end the financial year in the black.
With 43 percent growth on the bottom line in 2019 and a gross profit that had risen by 26 percent, to DKK 121 million, the IMPACT corona year 2020 started with full business confidence. In CEO Kasper Holst’s own words, IMPACT was and remains a serious challenger to large international consulting firms such as Accenture, Wipro, CAP Gemini and Valtech.
Three months later, the multiple-winner of the e-commerce award and Danish Digital Awards went toe-to-toe with the COVID crisis. And with a customer portfolio that is heavily invested in retail and high-end consumer brands – all of which were hit hard by corona – the crisis was suddenly a reality for the consultancy.
When several of our major customers experienced a significant slowdown due to the coronavirus, we saw many projects being put on hold. We went in and helped with extended payment deadlines and flexibility in relation to the projects. This resulted in losses and lost revenue to a degree that we had not even imagined
Hired 30 new employees
However, IMPACT struck back aggressively, and massive changes and investments were crucial for the company. The result was a new organizational structure, with the inclusion of nine new partners and ownership changes. In addition, 30 new employees were hired at the end of 2020 to equip the company for growth. The company’s employee distribution now spans six countries.
We used the crisis to expand and significantly change our company. Our major reorganization is an important part of our scaling, and going forward we will expand the business further into new countries. With the changes, we are moving from being strong locally to also being able to service our customers on the global stage
The 2020 financial statements show an eight percent growth in the company’s gross profit and a drop in operating profit, which was nonetheless still positive, at just under DKK 3 million. On the sales side, IMPACT experienced a 250 percent increase in digital leads, and approximately every third new customer was due to the reorganization.
Wants to be the European leader
IMPACT has no doubt that the trials of 2020 have brought something positive to the table. The new organization is not only designed for growth, but also to support interdisciplinary cooperation, individual employees’ personal development and, not least, a constant focus on innovation. And the goal is clear for CEO Holst:
Right now we are growing again at double-digit rates, and we are one of Scandinavia’s three largest e-commerce consultancy firms. We are keen to win local markets, but in the long term we should emerge to an even greater degree as the European frontrunner, with innovation in focus. Our clear ambition is to become the European leader, and this will be achieved through both organic growth and acquisitions