Global

    12.08.2021

    Solteq Plc’s Half-Year Report January 1 – June 30, 2021

    Solteq Plc Stock Exchange Bulletin August 12, 2021 at 8.00 am

    Solteq continued its strong, profitable growth

    April–June

    • Revenue totaled EUR 18.5 million (15.1) and increased by 22.6 percent

    • EBITDA was EUR 3.7 million (2.7) and EBITDA percent was 20.2 (18.0)

    • Operating profit was EUR 2.4 million (1.5) and operating profit percent was 13.2 (9.8)

    • Earnings per share was EUR 0.08 (0.04)


    January–June

    • Revenue totaled EUR 35.9 million (30.8) and increased by 16.6 percent

    • EBITDA was EUR 7.2 million (4.6) and EBITDA percent was 20.1 (14.9)

    • Operating profit was EUR 4.7 million (2.2) and operating profit percent was 13.0 (7.1)

    • Earnings per share was EUR 0.16 (0.04)

    • Solteq Group’s equity ratio was 35.3 percent (33.1)

    • Net cash flow from operating activities was EUR 7.8 million (5.3)


    Key figures

      4-6/2021 4-6/2020 Change % 1-6/2021 1-6/2020 Change % 1-12/2020 Rolling 12mos
    Revenue, TEUR 18,487 15,080 22.6 35,870 30,754 16.6 60,452 65,567
    EBITDA, TEUR 3,726 2,710 37.5 7,217 4,584 57.4 10,380 13,012
    Comparable EBITDA, TEUR 3,767 2,736 37.7 7,322 4,774 53.4 10,810 13,357
    Operating profit, TEUR 2,440 1,481 64.7 4,672 2,197 112.6 5,350 7,824
    Comparable operating profit, TEUR 2,481 1,507 64.6 4,777 2,387 100.1 5,780 8,169
    Profit for the financial period, TEUR 1,551 779 99.1 3,007 819 267.2 1,980 4,168
    Earnings per share, EUR 0.08 0.04 99.4 0.16 0.04 266.7 0.10 0.22
    Operating profit, % 13.2 9.8   13.0 7.1   8.9 11.9
    Comparable operating profit, % 13.4 10.0   13.3 7.8   9.6 12.5
    Equity ratio, %       35.3 33.1   35.5 34.2

    CEO Olli Väätäinen’s review:

    Solteq Group continued its strong, profitable growth in the second quarter. Measured by key indicators for the company, the quarter was the best in the company history. The growth was fueled by Solteq Software's Utilities business and Solteq Digital, which returned to a growth path due to the increased market demand for ecommerce solutions. The COVID-19 pandemic had a slight negative impact on customer acquisition and the launch of customer delivery projects in the tourism, restaurant, and leisure sectors.

    Solteq Group’s second-quarter revenue and profitability increased clearly relative to the comparison period. Solteq Group’s revenue increased by 22.6 percent and was EUR 18.5 million. Approximately four fifths of the growth was organic. The Group’s operating profit was EUR 2.4 million, up by 64.7 percent from the comparison period. The Group’s operating profit margin was 13.2 percent. The company’s EBITDA increased by 37.5 percent relative to the comparison period, amounting to EUR 3.7 million. Solteq Group’s EBITDA margin was 20.2 percent.

    Solteq Group’s business operations are organized into two segments: Solteq Software (software business) and Solteq Digital (services business). During the second quarter, Solteq Software segment accounted for just over one-third of the Group’s revenue, and Solteq Digital segment for just under two-thirds. Solteq Software accounted for 33.8 percent of the Group’s EBITDA. Revenue from foreign subsidiaries accounted for 21.4 percent of the Group’s revenue, which increased slightly relative to the comparison period.

    Both segments performed well in the second quarter. Solteq Digital returned to a growth path, as expected. The revenues in both segments increased relative to the comparison period – by 13.0 percent in Solteq Digital and by 44.6 percent in Solteq Software. Also, the profitability clearly improved relative to the comparison period, and the EBITDA increased by 41.1 percent in Solteq Digital and by 31.1 percent in Solteq Software. The second-quarter operating profit was up by 72.8 percent in Solteq Digital and by 43.0 percent in Solteq Software, relative to the comparison period.

    The business outlook for Solteq is good both domestically and internationally. Demand in Solteq’s key solution areas is expected to remain good during the second half of the year. The digital future affects 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 2021

    Solteq Group’s revenue is expected to grow clearly and operating profit to improve clearly.

     

    Attachments:

    Solteq Plc Half-Year Report January 1 – June 30, 2021

     

    Further information:

    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
    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.