VANTAA, Finland, Aug. 11,
2022 /PRNewswire/ -- Stock Exchange Bulletin
August 11, 2022 at 8.00 am
Challenges in the Utilities Business Weakened the
Profitability of Solteq
April–June
- Revenue totaled EUR 17.9 million
(18.5) and decreased by 3.0 percent
- EBITDA was EUR 1.8 million (3.7)
and EBITDA percent was 9.9 (20.2)
- Operating profit was EUR 0.4
million (2.4) and operating profit percent was 2.3
(13.2)
- Earnings per share was EUR 0.00
(0.08)
January–June
- Revenue totaled EUR 37.2 million
(35.9) and increased by 3.6 percent
- EBITDA was EUR 4.5 million (7.2)
and EBITDA percent was 12.1 (20.1)
- Operating profit was EUR 1.8
million (4.7) and operating profit percent was 4.8
(13.0)
- Earnings per share was EUR 0.04
(0.16)
- Solteq Group's equity ratio was 35.4 percent (35.3)
- Net cash flow from operating activities was EUR 1.6 million (7.8)
Key figures
|
4-6/2022
|
4-6/2021
|
Change
%
|
1-6/2022
|
1-6/2021
|
Change
%
|
1-12/2021
|
Rolling
12mos
|
|
|
|
|
|
|
|
|
|
|
Revenue,
TEUR
|
17,937
|
18,487
|
-3.0
|
37,176
|
35,870
|
3.6
|
69,055
|
70,361
|
|
EBITDA, TEUR
|
1,776
|
3,726
|
-52.3
|
4,496
|
7,217
|
-37.7
|
12,267
|
9,547
|
|
Comparable EBITDA,
TEUR
|
1,946
|
3,767
|
-48.3
|
4,868
|
7,322
|
-33.5
|
12,556
|
10,103
|
|
Operating profit,
TEUR
|
414
|
2,440
|
-83.0
|
1,798
|
4,672
|
-61.5
|
7,123
|
4,249
|
|
Comparable operating
profit, TEUR
|
585
|
2,481
|
-76.4
|
2,170
|
4,777
|
-54.6
|
7,412
|
4,805
|
|
Profit for the
financial period, TEUR
|
-90
|
1,551
|
-105.8
|
705
|
3,007
|
-76.6
|
4,100
|
1,798
|
|
Earnings per share,
EUR
|
0.00
|
0.08
|
-105.8
|
0.04
|
0.16
|
-76.6
|
0.21
|
0.09
|
|
Operating profit,
%
|
2.3
|
13.2
|
|
4.8
|
13.0
|
|
10.3
|
6.0
|
|
Comparable operating
profit, %
|
3.3
|
13.4
|
|
5.8
|
13.3
|
|
10.7
|
6.8
|
|
Equity ratio,
%
|
|
|
|
35.4
|
35.3
|
|
36.9
|
35.3
|
CEO Aarne Aktan: Challenges in
the Utilities Business Weakened the Profitability of Solteq
The second quarter of the year was challenging for Solteq. The
Group's revenue was EUR 17.9 million,
with operating profit of EUR 0.4
million. The revenue decreased by 3.0 percent and operating
profit by 83.0 percent from the comparison period.
The difficulties were mainly caused by challenges in the
development of software products. This increased delivery costs for
projects and decreased customer invoicing relative to the
comparison period. Due to these factors, Solteq published a profit
warning on May 25, 2022, and lowered
its guidance for both revenue and operating profit.
The Solteq Software segment accounted for just over one-third of
the Group's revenue, and the Solteq Digital segment for just under
two-thirds. Solteq Software's profitability was affected by
challenges in product development in the Solteq Utilities business
area and the resulting increase in project delivery costs. The
revenue and profitability of Solteq Digital were weakened by slower
than expected sales and delays in the commencement of certain
customer projects. Foreign subsidiaries accounted for 22.7 percent
of the Group's revenue.
Russian invasion of Ukraine,
increasing inflation, and changes in the energy sector caused
insecurities in the operating environment during the second
quarter. Changes in the operating environment were not
significantly reflected in the Group's operations yet. In the long
run, Russian invasion of Ukraine
causes economic uncertainty, which will affect the investment
capabilities of customer organizations. In addition, the high
inflation will affect the Group's cost level going
forward.
Despite some growing pains and changes in the operating
environment, the outlook for Solteq Group's international and
domestic business is estimated to remain positive. Demand in the
key solution areas of Solteq Software is expected to create
significant growth opportunities, especially in the energy sector.
In Solteq Digital, growth will be driven by the internationalizing
customer base and new technological solutions. Solteq Group is
updating its business strategy and will release it within the
current half-year period. Solteq continues to strengthen its
international operations and to develop the Utilities business for
profitable, international growth.
Profit Guidance 2022 (updated on May
25, 2022)
Solteq Group's revenue is expected to grow and profit to
weaken.
Attachments
Solteq Plc Half-Year Report January
1 – June 30, 2022
Further Information
CEO Aarne Aktan
Tel: +358403424440
E-mail: aarne.aktan@solteq.com
CFO Kari Lehtosalo
Tel: +358407010338
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.
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/solteq/r/solteq-plc-half-year-report-january-1---june-30--2022,c3612347
The following files are available for download:
|
https://mb.cision.com/Main/10667/3612347/1613471.pdf
|
Release
|
|
https://mb.cision.com/Public/10667/3612347/99f57811342b6771.pdf
|
Half-Year Report
2022
|