Le Lézard
Classified in: Science and technology, Business, Covid-19 virus
Subject: ERN

Solteq Plc's Half-Year Report January 1 - June 30, 2020


Solteq Plc, Stock Exchange Bulletin, August 13, 2020 at 8.00 am

HELSINKI, Aug. 13, 2020 /PRNewswire/ --

The company's profitability improved clearly in the second quarter

April-June        

January-June

Key figures


     

4-6/2020

    

4-6/2019

     

Change-%

       

1-6/2020

    

1-6/2019

        

Change %

           1-12/2019

 Rolling 12mos

                                   

Revenue, TEUR

 

15,080

 

14,660

 

2.9

 

30,754

 

29,590

 

3.9

 

58,291

 

 

59,455

                                   

Comparable revenue, TEUR

 

15,080

 

13,992

 

7.8

 

30,754

 

28,041

 

9.7

 

55,293

 

 

58,006

                                   

EBITDA, TEUR

 

2,710

 

1,572

 

72.3

 

4,584

 

4,027

 

13.8

 

9,714

 

 

10,271

                                   

Comparable EBITDA, TEUR

 

2,736

 

1,522

 

79.8

 

4,774

 

3,653

 

30.7

 

6,582

 

7,704

                                   

Operating profit, TEUR

 

1,481

 

571

 

159.3

 

2,197

 

2,101

 

4.6

 

5,711

 

5,808

                                   

Comparable operating profit, TEUR

 

1,507

 

521

 

189.5

 

2,387

 

1,726

 

38.3

 

2,579

 

3,240

                                   

Profit for the financial period, TEUR

 

779

 

131

 

494.5

 

819

 

941

 

-13.0

 

2,803

 

2,681

                                   

Earnings per share, EUR

 

0.04

 

0.01

 

491.3

 

0.04

 

0.05

 

-13.5

 

0.15

 

0.14

                                   

Operating profit, %

 

9.8

 

3.9


 

7.1

 

7.1


 

9.8

 

9.8

                                   

Comparable operating profit, %

 

10.0

 

3.7


 

7.8

 

6.2


 

4.7

 

5.6

                                   

Equity ratio, %




 

33.1

 

30.3


 

32.0

 

34.7










CEO Olli Väätäinen: The company's profitability improved clearly in the second quarter

Solteq Group's second-quarter revenue was EUR 15.1 million, up by 2.9 percent. The increase in comparable revenue -when the absence of the SAP ERP business is taken into account- is 7.8 percent. Around 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 improved clearly in the second quarter: operating profit improved, year-on-year, by 159.3 percent, standing at EUR 1.5 million. The company's EBITDA was EUR 2.7 million - growing by 72.3 percent year-on-year.

The company has been closely following and assessing the impact of the COVID-19 pandemic on its business. So far, the pandemic has had no negative effects on the company on the whole.  The good performance in the review period was based on orders secured during the year before and the capability to deliver in key business areas. Growth was also driven by successful sales efforts in the first half of 2020. Significant new customer projects, especially in the energy sector, balanced lower sales in the travel, restaurant and leisure sectors that were affected by the pandemic. Good performance in the second quarter was also improved by the streamlining measures taken earlier this year and the resulting cost savings.  

To ensure a going concern and sufficient funding, the company initiated a written procedure on April 21, 2020, concerning an amendment to the terms and conditions of its fixed-rate bond, with a nominal value of EUR 27.0 million. By permission of the bondholders on May 18, 2020, the maturity date was extended by 12 months, the new date being July 1, 2021 - six years from the date it was issued. On the half-year reporting date, the company's bond liability is EUR 24.5 million.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 and profitability are expected to remain favorable.

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 going concern was to rearrange financing before the original maturity date of the current bond. The procedure ended successfully. Owing to the prevailing financial market situation, the company considered it prudent to request a 12-month extension to the maturity date. The company's EUR 24.5 million bond will mature on July 1, 2021. The company is prepared to carry out any refinancing arrangements required and is therefore actively following developments in the financial markets. Uncertainty caused by the COVID-19 pandemic will nevertheless increase the financing risk that is beyond the company's control, and the management estimates that the pandemic will have an impact on the financial market at least throughout 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 Half-Year Report was drawn up under the going concern principle, taking account of the financial restructuring either already carried out or pending.

Attachments:

Solteq Plc Half-Year Report January 1 - June 30, 2020

Distribution:

NASDAQ OMX Helsinki
Key media
www.solteq.com

Further information:

CEO Olli Väätäinen
Tel. +358 50 5578 111
Email:olli.vaatainen@solteq.com

CFO Kari Lehtosalo
Tel: +358 40 701 0338
Email: kari.lehtosalo@solteq.com

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/solteq/r/solteq-plc-s-half-year-report-january-1---june-30--2020,c3167491

The following files are available for download:

https://mb.cision.com/Main/10667/3167491/1290329.pdf

Solteq Plc's Half-Year Report Q2 2020


These press releases may also interest you

at 10:25
Catalent, the leading global provider of advanced delivery technologies, development, and manufacturing solutions for drugs, biologics, cell and gene therapies, and consumer health products, today welcomed the news from Nocion Therapeutics, Inc., a...

at 10:23
Financial services firms relying on technology upgrades to make them more competitive and profitable must review their exploration stages to ensure success, according to new research from Greenwich Associates, commissioned by Finastra. The new report...

at 10:20
Reveleer, a SaaS software and services company that offers technology solutions for government-regulated healthcare plans, announced today that they gained the HITRUST CSF Certification for information security. The HITRUST certified status further...

at 10:18
The Kroger Co. , America's largest grocery retailer, and Ocado (LSE: OCDO), a world leader in technology for grocery ecommerce, today announced Romulus, MI, as the latest location for a Customer Fulfillment Center (CFC). The location confirms a...

at 10:15
Diaceutics PLC, (AIM: DXRX), today announces three new partnerships on its DXRX platform, as it continues with its mission to get every patient the treatment they deserve. The company has signed agreements with external quality assessment (EQA)...

at 10:15
MIND Technology, Inc. and its Klein Marine Systems subsidiary successfully completed a live Advanced Naval Technology Exercise (ANTX) in a collaborative effort with the Naval Surface Warfare Center Panama City Division (NSWC PCD); Commander, Naval...



News published on 13 august 2020 at 01:49 and distributed by: