0G5H Solteq Oyj

HELSINKI, Finland, Feb. 17, 2022 /PRNewswire/ -- Solteq Plc Stock Exchange Bulletin February 17, 2022 at 8.00 am

A year of profitable growth

October–December

• Revenue totaled EUR 18.3 million (16.4) and increased by 11.4 percent
• EBITDA was EUR 2.6 million (3.1) and EBITDA percent was 14.4 (18.8)
• Operating profit was EUR 1.3 million (1.8) and operating profit percent was 7.2 (10.9)
• Earnings per share was EUR 0.03 (0.03)

January–December   

• Revenue totaled EUR 69.1 million (60.5) and increased by 14.2 percent
• EBITDA was EUR 12.3 million (10.4) and EBITDA percent was 17.8 (17.2)
• Operating profit was EUR 7.1 million (5.4) and operating profit percent was 10.3 (8.9)
• Earnings per share was EUR 0.21 (0.10)
• Solteq Group's equity ratio was 36.9 percent (35.5)
• Net cash flow from operating activities was EUR 10.0 million (6.3)
• Solteq Group's revenue is expected to grow clearly and operating profit to improve
• Solteq Plc's Board of Directors proposes that the Annual General Meeting authorize the Board of Directors to decide on the distribution of dividend of a maximum of EUR 0.10 per share

Key figures

CEO Kari Lehtosalo: A year of profitable growth

Solteq Group's revenue for 2021 was EUR 69.1 million, an increase of 14.2 percent from the previous year. The growth was mainly organic. Profitability of the international subsidiaries improved significantly, particularly in Denmark. The revenue from the international subsidiaries accounted for 22.3 percent of the group's revenue. Solteq Software segment accounted for just over a third and Solteq Digital segment less than two-thirds of the group's revenue. The growth was fueled by Solteq Software's Utilities business and the digital business and commerce solutions of Solteq Digital.

The group's year-on-year profitability improved significantly. EBITDA increased by 18.2 percent, to EUR 12.3 million. Operating profit was EUR 7.1 million, up by 33.1 percent from the previous year. The operating profit margin was 10.3 percent.

For both segments, the year was a time for growth and internationalization. Solteq Software clearly exceeded its annual target of over 20 percent growth in revenue and invested in the internationalization and software development of its Utilities and Retail businesses. The segment's result was affected by increases in subcontracting expenses and general costs.  Solteq Digital developed positively during the year, and growth was particularly strong in digital business and commerce solutions in the Nordic market. Investments in the company's product development amounted to EUR 2.8 million.

The COVID-19 pandemic continued throughout the year. The impact on business remained minor and mainly affected customer projects in the travel, service, and leisure sectors. The organization's operational capacity and the safety of its stakeholders were ensured by measures adopted already the previous year.

Solteq Group's business outlook remains stable both in Finland and internationally. The segments are expected to continue their upward trend, driven by the more versatile and international offering of Solteq Software's Utilities business and the digital expert services provided by Solteq Digital. The company continues its investments in internationalization and the product development of Utilities business with focus on the first half of 2022. The digital reality is affecting everyone. Keeping up with the latest developments is therefore on the current and future agendas of companies of different sizes and in various sectors.

Profit guidance 2022
Solteq Group's revenue is expected to grow clearly and operating profit to improve.

Attachments
Solteq Plc Financial Statements Bulletin January 1 – December 31, 2021

Further information
Interim CEO, CFO Kari Lehtosalo
Tel: +358 40 701 0338
E-mail: kari.lehtosalo@solteq.com

Distribution
NASDAQ OMX Helsinki
Key media
www.solteq.com 

Solteq in brief
Solteq is a 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 are retail, manufacturing, utilities, and services. The company employs over 650 professionals with offices in Finland, Sweden, Norway, Denmark, Poland and the UK, with a customer base throughout Europe.

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