Solteq Plc, Stock Exchange Bulletin, October 29, 2020 at 8.00
am
The company performed well in a changing market
situation
HELSINKI, Finland, Oct. 29, 2020 /PRNewswire/ --
July-September
- Revenue totaled EUR 13,289
thousand (12,993).
- EBITDA was EUR 2,715 thousand
(1,300).
- Operating profit was EUR 1,365
thousand (282) and comparable operating profit EUR 1,365 thousand (-15).
- Earnings per share was EUR 0.03
(-0.01).
- The revenue was 2.3 percent higher than in the comparison
period, while the comparable revenue grew by 8.5 percent.
January-September
- Revenue totaled EUR 44,044
thousand (42,583).
- EBITDA was EUR 7,300 thousand
(5,327).
- Operating profit was EUR 3,563
thousand (2,383) and comparable operating profit
EUR 3,753 thousand (1,711).
- Earnings per share was EUR 0.07
(0.04).
- Solteq Group's equity ratio was 35.0 percent (31.5).
- Net cash flow from operating activities was EUR 4,231 thousand (831).
- The revenue was 3.4 percent higher than in the comparison
period, while the comparable revenue grew by 9.3 percent.
- The company invested strongly in future growth by focusing on
the development of our own cloud-based software products and
services. During the review period the product development
investments amounted to EUR 2.3
million (3.0). Product development during the entire
financial year is expected to be less than EUR 3.0 million.
- Profit guidance for 2020: Solteq Group's comparable operating
profit is expected to grow significantly.
Key figures
|
7-9/2020
|
7-9/2019
|
Change
%
|
1-9/2020
|
1-9/2019
|
Change
%
|
1-12/2019
|
Rolling
12mos
|
|
|
|
|
|
|
|
|
|
|
Revenue,
TEUR
|
13,289
|
12,993
|
2.3
|
44,044
|
42,583
|
3.4
|
58,291
|
59,751
|
|
Comparable revenue,
TEUR
|
13,289
|
12,243
|
8.5
|
44,044
|
40,284
|
9.3
|
55,293
|
59,053
|
|
EBITDA,
TEUR
|
2,715
|
1,300
|
108.9
|
7,300
|
5,327
|
37.0
|
9,714
|
11,687
|
|
Comparable EBITDA,
TEUR
|
2,715
|
1,003
|
170.8
|
7,490
|
4,655
|
60.9
|
6,582
|
9,416
|
|
Operating profit,
TEUR
|
1,365
|
282
|
383.7
|
3,563
|
2,383
|
49.5
|
5,711
|
6,891
|
|
Comparable operating
profit, TEUR
|
1,365
|
-15
|
9,288.0
|
3,753
|
1,711
|
119.3
|
2,579
|
4,620
|
|
Profit for the
financial period, TEUR
|
539
|
-187
|
389.0
|
1,358
|
755
|
79.9
|
2,803
|
3,406
|
|
Earnings per share,
EUR
|
0.03
|
-0.01
|
387.4
|
0.07
|
0.04
|
78.9
|
0.15
|
0.18
|
|
Operating profit,
%
|
10.3
|
2.2
|
|
8.1
|
5.6
|
|
9.8
|
11.5
|
|
Comparable operating
profit, %
|
10.3
|
-0.1
|
|
8.5
|
4.2
|
|
4.7
|
7.8
|
|
Equity ratio,
%
|
|
|
|
35.0
|
31.5
|
|
32.0
|
35.2
|
CEO Olli Väätäinen: The
company performed well in a changing market situation
Solteq Group's third-quarter revenue was EUR 13.3 million, up by 2.3 percent. The increase
in the comparable revenue - when the absence of the SAP ERP
business is taken into account - was 8.5 percent. About a fifth of
this revenue was derived from outside Finland. The company's own software products
and related services contributed around a third and digital
services around two thirds of revenue.
The company's profitability was very good in the third quarter:
operating profit improved, year-on-year, by 383.7 percent, standing
at EUR 1.4 million. The operating
profit margin was 10.3 percent. The company's EBITDA was
EUR 2.7 million - up by 108.9 percent
year on year. The EBITDA margin was 20.4 percent.
The company has been closely following and assessing the impact
of the COVID-19 pandemic on its business. Although the pandemic
slowed down sales to some extent in several business areas and in
the Nordic subsidiaries, there was overall growth driven by the
customer orders secured the year before, the capability to deliver,
and success in obtaining new customers in the utilities sector. So
far, the pandemic has had no negative impact on the company's
performance as a whole. The excellent performance in the third
quarter was also supported by the streamlining measures taken
earlier this year and the resulting cost savings.
To ensure a going concern and sufficient funding, the company
announced on September 24, 2020 the
issuance of a new unsecured senior bond with fixed interest rate
and a nominal value of EUR 23.0
million and the voluntary redemption of a bond that will
mature on July 1, 2021. The new bond
was issued after the review period, and the proceeds obtained from
it were used to redeem the old bond. The new bond will mature on
October 1, 2024. Annual interest of
6.0 will be paid on it, and it can be redeemed before the final
maturity date.
The company has performed well in a challenging and
unpredictable market situation. The organization's operational
capacity and the safety of its stakeholders were ensured by
measures adopted in the early stages of the pandemic. The business
outlook is expected to remain unchanged for the rest of the
year.
Profit guidance 2020
Solteq Group's comparable operating profit is expected to grow
significantly.
Going concern principle
On April 21, 2020, the company
initiated a written procedure concerning a change in the terms of
an unsecured, senior bond with fixed interest and a nominal value
of EUR 27.0 million (with maturity
date July 1, 2020), requesting that
the loan period be extended by 12 months. Amendment of the terms
was accepted by means of a written procedure on May 18, 2020. The company's bond liability is
EUR 24.5 million.
The prerequisite of a going concern is to rearrange financing
before the original maturity date of the current bond. The
procedure ended in a favorable outcome. Due to prevailing
conditions on the financial markets, the company considers it
appropriate to request a 12-month extension to the term of the
bond. The EUR 24.5 million bond at
the end of the review period will mature on July 1, 2021.
On September 24, 2020, the company
announced its decision to issue a new bond with a nominal value of
EUR 23.0 million that will mature on
October 1, 2024. The proceeds from
the issue will be used for the refinancing of the company's
existing bond and for general corporate purposes.
Following the completion of the above financial arrangements,
the company will have a EUR 23.0 bond
that matures on October 1, 2024. The
company also has a EUR 4,000 thousand
standby credit limit and a EUR 2,000
thousand credit limit, both unused at the end of the review
period on September 30, 2020.
The company's operations are on a solid foundation and it is the
management's view that the company has the capacity to overcome the
COVID-19 pandemic's negative impacts on its business operations. On
this basis, the management expects operations to continue, with
only a low risk of inadequate funding.
This Interim Report was drawn up under the going concern
principle, taking into account the financial restructuring carried
out.
Attachments
Solteq Plc Interim Report January 1 -
September 30, 2020
www.solteq.com
About Solteq:
Solteq is a Nordic provider of IT services and software
solutions specializing in the digitalization of business and
industry-specific software. The key sectors in which the company
has long term experience include retail, industry, energy and
services. The company operates in Finland, Sweden, Norway, Denmark, Poland and the UK and employs 600
professionals.
Contact:
CEO Olli
Väätäinen
Tel: +358 50 557 8111
E-mail: olli.vaatainen@solteq.com
CFO Kari Lehtosalo
Tel: +358 40 701 0338
E-mail: kari.lehtosalo@solteq.com
Distribution:
NASDAQ OMX Helsinki
Key media
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The following files are available for download:
|
https://mb.cision.com/Main/10667/3227012/1327444.pdf
|
Release
|
|
https://mb.cision.com/Public/10667/3227012/9dabb2f530818029.pdf
|
Interim Report Q3
2020
|