Interim Management Report of the Itway
Group as of March 31, 2022
Interim Management Report of the Itway Group as of March 31, 2022
Board of Directors
(Until approval of the December 31, 2022 Financial Statements)
Name and last name | Role |
Giovanni Andrea Farina | President and Chief Executive |
Cesare Valenti | Managing Director |
Valentino Bravi | Independent Director |
Piera Magnatti | Independent Director |
Annunziata Magnotti | Independent Director |
Board of Statutory Auditors
(Until approval of the December 31, 2022 Financial Statements)
Name and last name | Role |
Daniele Chiari | President |
Silvia Caporali | Member |
Rita Santolini | Member |
Manager mandated to draft corporate accounting documents
The board of directors named Sonia Passatempi (Administrative Manager of the Group) as the Manager in charge of drafting corporate accounting documents for the Itway Group.
Auditing company
Analisi S.p.A.
The General Meeting gave the mandate for the auditing firm on July 2, 2018 for a period of nine years until the approval of the financial statements for the year ending December 31, 2026 and, pursuant to the regulations in force, it cannot be renewed.
Interim Management Report of the Itway Group as of March 31, 2022
Interim management report as of March 31, 2022
For the sake of continuity with the past, Itway decided to draft and publish the interim management report to March 31, 2022 on a voluntary basis despite not being required by the Issuers Regulation of the MTA market of Borsa Italiana.
The Board of Directors on May 13, 2022 authorized the publication of the current interim management report, not subject to audit.
In the current interim management Report as of March 31, 2022, the analysis of the economic performance was carried out with reference to the situation in the period January 1-March 31, 2022 compared with the same period of 2021. The net financial position and the balance sheet information refer to March 31, 2022 compared with the consolidated Financial Statements as of December 31, 2021.
The accounting statements to March 31, 2022 were drafted before taxes and of the fiscal effects on the results of the period.
Performance of the Group and the reference market
The accounting principles, the evaluation principles and the consolidation principles referred to in preparing the Interim Financial Report as of March 31, 2022 are, as in the previous fiscal year, the international accounting principles defined as IFRS. In particular, these principles require forward-looking statements, as indicated in the continuation of the current report, in particular in the section "Foreseeable Evolution of operations". In the context of the economic uncertainty illustrated below, please note that these forecasts have a component of risk and uncertainty. Therefore, it cannot be ruled out that in the near future the results achieved could be different from those forecast, therefore requiring revisions that today cannot be either estimated or forecasted.
The Group continued also in the first quarter of 2022 its positioning towards a digital product- oriented model focusing on higher value added business segments through three business units:
- Cybersecurity;
- Data Science;
- Safety.
The Itway Group during the first quarter of 2022 continued to invest also through its subsidiaries in the markets of Cybersecurity, IoT and Artificial Intelligence (AI) and Big Data, which are all connected and correlated.
Interim Management Report of the Itway Group as of March 31, 2022
For a broader assessment of the performance of the Group and the reference market please see the Management Report on Operations of the Financial Statements to December 31, 2021 that the Shareholders' meeting approved on May 2, 2022.
Following is the consolidated condensed income statement at March 31, 2022 compared with that of the same period a year earlier
Quarter ended March 31 | ||||
2022 | 2021 | |||
(Thousands of Euro) | ||||
Itway Group | Itway Group | |||
Turnover | ||||
Sales revenue | 9,147 | 9,727 | ||
Other operating revenue | 272 | 611 | ||
Total turnover | 9,419 | 10,338 | ||
Operating costs | ||||
Cost of products | 7.587 | 8.367 | ||
Personnel costs | 701 | 636 | ||
Other costs and operating charges | 521 | 517 | ||
Total operating costs | 8,809 | 9,520 | ||
EBITDA* | 610 | 818 | ||
Amortizations and writedowns | 152 | 121 | ||
EBIT* | 458 | 697 | ||
Net financial charges | (166) | 168 | ||
Result before taxes | 292 | 865 |
In the quarter ended on March 31, 2022, both revenue and operating results of the Group recorded a slight drop: sales revenue slipped 6% or approx. Euro 580 thousand and total revenue fell by 9.7% or approx. Euro 900 thousand, leading to a contraction f all profitability indicators: Ebitda was down by approx. Euro 200 thousand and Ebit by Euro 240 thousand. The result before taxes came in at a positive Euro 292 thousand due to a combination of a lack of net financial proceeds and the prudential provision of Euro 160 thousand for onerous budget items.
The results are below budget for the quarter due to a slowdown in demand between February and March 2022 caused by the increase in Covid Omicron cases that caused the delay of the approval of some orders to subsequent quarters and the systemic slowdown caused by the war, still underway, in Ukraine. The Group is not exposed to and does not supply the countries involved in the war. However, sanctions approved by the European Union are causing a chain reaction in different sectors of the economy committed to these countries.
First-quarter GDP is estimated to have been a negative 0.2%, and in the second a negative 0.5%, interrupting the growth seen in 2021. Analysts are introducing the crucial variable of "duration of the conflict" and, assuming that in July there will be an end or a reduction in uncertainties
Interim Management Report of the Itway Group as of March 31, 2022
and tension, GDP for the year is now forecast to grow +1.9% (source: CSC April 2022) compared with +4% forecast in October 2021. In addition, the situation described above is causing a delay in the payment of NRRP funds, and several of our orders are linked to clients waiting to receive these funds. The order pipeline of the Group is solid and growing.
Structure and activities of the Group
The Interim Management report includes the accounting situations of the companies of the Itway Group that as of March 31, 2022 had the following structure.
ITWAY S.p.A.
Itway France S.A.S. | Business-e | 4 Science S.r.l. | Itway RE S.r.l. | |||||||||||||||
100% | Infrastrutture S.r.l. | 100% | 100% | |||||||||||||||
30% | ||||||||||||||||||
Itway Iberica S.L. | Itway MENA FZC | BE Innova S.r.l. | iNebula S.r.l. in | |||||||||||||||
100% | 17,1% | 50% | liquidazione 75% | |||||||||||||||
Itway International | Idrolab S.r.l. | |||||||||||||||||
S.r.l. 100% | 10% | |||||||||||||||||
Itway Hellas S.A. | Itway Turkyie Ltd | Dexit S.r.l. | ||||||||||||||||
100% | 100% | 9% | ||||||||||||||||
Interim Management Report of the Itway Group as of March 31, 2022
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Disclaimer
Itway S.p.A. published this content on 28 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 May 2022 14:38:07 UTC.