Solteq Plc Stock Exchange Bulletin 21.4.2016 at 8.00 am
Revenue and operating profit significantly better than in the comparison period
- focusing on omnichannel and digital commerce bears fruit
Brief look at January – March 2016
·
Revenue totalled 15,4 million euros (9,1 million euros)
·
Operating profit before non-recurring items was 732 thousand euros (464 thousand
euros). The impact of the divested business on the operating result without non
-recurring items was -212 thousand euros.
·
Operating profit including the non-recurring items was 4.919 thousand euros (464
thousand euros). The non-recurring income and costs related to the divestment of
MainIoT Software Ltd totalled +4.187 thousand euros
·
Solteq Group’s equity ratio was 31,8 % (49,1 %).
·
Earnings per share was 0,27 euros (0,02 euros).
·
In line with its strategy, Solteq focused even more on operating in the field of
omnichannel and digital commerce solutions during the review period, and sold
the entire share capital of MainIoT Software Ltd that provides software
solutions for maintenance and services management
+---------------------------+--------+--------+-------+
|KEY FIGURES AND RATIOS |1-3/2016|1-3/2015|change%|
+---------------------------+--------+--------+-------+
|Revenue, EUR million | 15,4| 9,1| 68,3%|
+---------------------------+--------+--------+-------+
|Operating profit before non| 0,7| 0,5| 57,8%|
|-recurring items, EUR | | | |
|million | | | |
+---------------------------+--------+--------+-------+
|Operating profit, EUR | 4,9| 0,5| 960,1%|
|million | | | |
+---------------------------+--------+--------+-------+
|Profit for the financial | 4,4| 0,3|1180,8%|
|period, EUR million | | | |
+---------------------------+--------+--------+-------+
|Earnings/share, EUR | 0,27| 0,02|1073,3%|
+---------------------------+--------+--------+-------+
|Operating profit -% | 32,0%| 5,1%| 530,4%|
+---------------------------+--------+--------+-------+
|Equity ratio, % | 31,8%| 49,1%| -35,2%|
+---------------------------+--------+--------+-------+
Repe Harmanen, CEO of Solteq: A quarter of focusing on strategy, growth and
better profitability
Our result for the first quarter was positive. Compared to the previous year, we
both grew and improved our profitability.
At the end of February, we divested subsidiary MainIoT Software Ltd that
specialised in ERP software. As the focus in Solteq’s new strategy is on digital
commerce solutions and international operations, the deal gave us better
possibilities to implement the strategy in terms of both the centralisation of
operations and economic opportunities. Because of the transaction, we recognised
non-recurring capital gains and reorganisation costs in the result of the first
quarter. Focusing on digital commerce will improve the profitability of the
Group’s future operations, and now the structure of the company is extremely
good for the further implementation of the strategy.
The Company’s financial position is good. Due to the corporate acquisition and
favourable business developments, the Company’s equity ratio and financial
position improved significantly and normalised during the first quarter. The
situation allows us to consider the best alternatives for the strategy
concerning investments and possible measures related to the balance sheet. The
improved financial position will open new opportunities for faster
implementation of the strategy.
All integration measures related to the acquisition of the Descom Group were
completed during the first quarter, and no significant non-recurring items were
recognised related to them. I am extremely pleased with the contribution of our
experts in the creation of the New Solteq. We have made good progress.
As to demand, the first quarter was clearly better and more active than during
the last quarter of the previous year. Client demand in all strategic areas
increased and we also managed to secure new projects in them. We expect demand
to continue at a good level, and we will seek organic growth in all our
strategic areas during the latter part of the year. We see that revenue erosion
in older technologies has levelled out and that demand for new solutions is
developing in a positive direction. At the moment, the main hindrance to our
growth is the scarce availability of competent personnel in Finland and in
Poland.
The progress of the strategy work has been excellent and we will publish the new
strategy in more detail on 25 May 2016. The focus of the strategy is on both
domestic and international growth of business. The key elements are expanding
the offering of digital solutions in all business operations, the solutions for
retail chains and digital business in the Nordic Countries and the solutions for
digital commerce globally. In Finland our growth will be mainly organic, but in
the Nordic Countries and globally we aim to be active in corporate acquisitions
because of the fast implementation of the strategy.
We will maintain the balance between the growth and payment of dividends to be
the most attractive choice for our investors as a growing and internationalizing
company of digital commerce.
In the heart of the strategy is the group of the best technology experts which
has developed to the high level and will continually develop further. With this
group we will implement the unique strategy on the field of digital commerce in
Finland and globally.
We will maintain the earlier profit guidance concerning the net revenue and
operating profit before non-recurring items for 2016 in spite of the divestment
of MainIoT Software Ltd.
Guidance on Group outlook
Solteq Group’s revenue is expected to grow significantly compared to financial
year 2015. The operating result and the operating result before non-recurring
items are expected to grow compared to financial year 2015 as well.
The expected growth of revenue and operating profit is mainly related to the M&A
activities completed during the previous financial year and during the review
period. In addition the cost synergies arising from the M&A activities are
expected to be realized mainly during the year 2016.
Briefing for investors and media
The media and investor briefing for the announcement of financial results of the
first quarter of 2016 will be broadcasted on Periscope April 21st at 11.30 on
channel @SolteqTweets.
The briefing will be recorded and can be accessed on the website later on the
same day.
Further information
Repe Harmanen, CEO, tel. +358 400 467 717
Antti Kärkkäinen, CFO, tel. +358 40 8444 393
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
www.solteq.com
Solteq in brief
Solteq is an expert in digital commerce. We deliver comprehensive solutions for
digital commerce under one roof: from back-office processes to customer
experience – from supply chain management to online marketing. We have the
passion to deliver the unexpected – in a fast-changing world our customers need
a partner who can deliver today what they need tomorrow. We employ ca. 500
experts in three different countries and we make deliveries to Europe, North
America, Asia and Australia. In 2015 our run-rate revenue was 68 million euro.
