Stock Exchange Bulletin
Interim Report
A Positive Turnaround in Profitability
January-March
Comparable revenue totaled
EUR 13.6 million (14.1) and decreased by 3.8 percent. Revenue totaledEUR 13.6 million (16.9) and decreased by 19.7 percentComparable EBITDA was
EUR 0.4 million (0.1) and EBITDAEUR 0.4 million (1.3). Comparable EBITDA percent was 2.6 (0.9)Comparable operating result was
EUR -0.2 million (-0.7) and operating resultEUR -0.2 million
(-0.1). Comparable operating result percent was -1.8 (-4.6)Earnings per share was
EUR -0.04 (0.01)Solteq Group's equity ratio was 29.3 percent (30.5)Net cash flow from operating activities was
EUR 1.0 million (0.5)The company expects the comparable revenue to grow and the operating result to be positive. The comparable revenue was
EUR 54,183 thousand for the financial year 2023
Key figures
1-3/2024 | 1-3/2023 | Change % | 1-12/2023 | Rolling 12mos | |
Revenue, TEUR | 13,571 | 16,899 | -19.7 | 57,655 | 54,327 |
Comparable revenue, TEUR | 13,571 | 14,113 | -3.8 | 54,183 | 53,641 |
EBITDA, TEUR | 358 | 1,281 | -72.1 | 8,695 | 7,772 |
Comparable EBITDA, TEUR | 358 | 121 | 196.7 | -1,662 | -1,425 |
Operating result, TEUR | -247 | -91 | -170.8 | -3,541 | -3,697 |
Comparable operating result, TEUR | -247 | -652 | 62.1 | -4,575 | -4,171 |
Result for the financial period, TEUR | -705 | 204 | -445.4 | -5,380 | -6,289 |
Earnings per share, EUR | -0.04 | 0.01 | -445.4 | -0.28 | -0.32 |
Operating result, % | -1.8 | -0.5 | -6.1 | -6.8 | |
Comparable operating result, % | -1.8 | -4.6 | -7.2 | -7.8 | |
Equity ratio, % | 29.3 | 30.5 | 30.1 | 30.0 |
CEO
The company's profitability improved during the review period. The comparable EBITDA was
The long-term market outlook for the Retail & Commerce segment is expected to remain moderate and demand to recover as the markets stabilize. Retail & Commerce will renew its sales strategy and account management processes during the current quarter to improve sales performance. The long-term market outlook for the Utilities segment is expected to remain good and provide opportunities for profitable growth.
Profit Guidance 2024
The company expects the comparable revenue to grow and the operating result to be positive. The comparable revenue was
Going concern principle
In assessing the going concern principle, the management of the company has considered the risks related to the refinancing of the company. The key elements of
The terms of the bond include financial covenants concerning the distribution of funds and incurring financial indebtedness other than permitted under the terms of the bond (Incurrence Covenant). The covenants require that the equity ratio exceeds 27.5 percent, the interest coverage ratio (EBITDA/net interest cost) exceeds 3.00:1, and that the Group's net interest-bearing debt to EBITDA ratio does not exceed 4:1. The covenants concerning the distribution of funds and incurring financial indebtedness other than permitted under the terms of the bond are not fulfilled based on the reporting period. The fulfillment of the covenants is always reviewed based on the last reported 12-month period. Violations of the above-mentioned financial covenants of the bond do not, as such, lead to the right to demand immediate repayment of the bond, but they limit the distribution of the company's funds and incurring financial indebtedness other than permitted under the terms of the bond.
The prerequisite for the company's going concern is the restructuring of the financing. The company has initiated measures to arrange refinancing of the company.
In assessing the going concern, the management of the company has considered the effects of the measures taken during the financial year 2023, the financial performance during the review period 1-3/2024, financial forecasts, and risks related to the availability of financing and to financial negotiations.
The company believes that the planned financing arrangements will lead to a favorable outcome. However, there are still no binding decisions on the restructuring of the financing and if the company failed to restructure the financing by the bond maturity date, the company would not be able to meet its obligations and the conditions for the company's going concern would become jeopardized.
Considering the above measures and risks, the management estimates that operations will continue and that the risk of insufficient funding is small. Therefore, the management of the company has deemed it justified to prepare the Interim Report under the going concern principle.
Financial reporting
The Interim Report has been prepared in accordance with the recognition and valuation principles of IFRS standards and using IAS 34 and the same accounting policies as the Financial Statements 2023. The new IFRS standards, taken into use on
Attachments
Further Information
CEO
Tel: +358 40 342 4440
E-mail: aarne.aktan@solteq.com
CFO, General Counsel
Tel: +358 50 567 3421
E-mail: mikko.sairanen@solteq.com
Distribution
Nasdaq
Key media
www.solteq.com
https://news.cision.com/solteq/r/solteq-plc-s-interim-report-january-1---march-31--2024,c3969980
https://mb.cision.com/Main/10667/3969980/2769031.pdf
https://mb.cision.com/Public/10667/3969980/81653405449ced62.pdf
(c) 2024 Cision. All rights reserved., source