Stock Exchange Bulletin
Financial Statement Release
The actions taken to enhance operational efficiency turned the company's profitability in a more positive direction
October-December
- Comparable revenue totaled
EUR 14.2 million (14.2) and remained on the same level as comparison period. Revenue totaledEUR 14.3 million (16.9) and decreased by 15.6 percent -
Comparable EBITDA was
EUR -0.3 million (0.3) and EBITDAEUR -0.8 million (0.3). Comparable EBITDA percent was -2.0 (2.4) -
Comparable operating result was
EUR -1.0 million (-1.0) and operating resultEUR -9.1 million
(-1.2) including a write-off of product development activations ofEUR 7.5 million . Comparable operating result percent was -7.1 (-6.9) -
Earnings per share was
EUR -0.43 (-0.09)
January-December
- Comparable revenue totaled
EUR 54.2 million (57.2) and decreased by 5.3 percent. Revenue totaledEUR 57.7 million (68.4) and decreased by 15.8 percent -
Comparable EBITDA was
EUR 0.7 million (4.5) and EBITDAEUR 8.7 million (5.6). Comparable EBITDA percent was 1.3 (7.8) -
Comparable operating result was
EUR -3.9 million (-0.6) and operating resultEUR -3.5 million
(-4.4). Comparable operating result percent was -7.2 (-1.1) -
The ERP business based on Microsoft BC and LS Retail was transferred to
Azets Group as ofMay 2, 2023 . The profit on the sale of the business transaction improved the group's EBITDA and operating result byEUR 8.1 million -
Earnings per share was
EUR -0.28 (-0.28) Solteq Group's equity ratio was 30.1 percent (30.3)-
Net cash flow from operating activities was
EUR -5.3 million (3.9) -
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
10-12/2023 | 10-12/2022 | Change % | 1-12/2023 | 1-12/2022 | Change % | |
Revenue, TEUR | 14,265 | 16,900 | -15.6 | 57,655 | 68,426 | -15.7 |
Comparable revenue, TEUR | 14,244 | 14,240 | 0.0 | 54,183 | 57,230 | -5.3 |
EBITDA, TEUR | -822 | 262 | -414.1 | 8,695 | 5,555 | 56.5 |
Comparable EBITDA, TEUR | -282 | 338 | -183.6 | 694 | 4,469 | -84.5 |
Operating result, TEUR | -9,090 | -1,199 | -658.3 | -3,541 | -4,406 | 19.6 |
Comparable operating result, TEUR | -1,012 | -986 | -2.6 | -3,881 | -613 | -533.2 |
Result for the financial period, TEUR | -8,281 | -1,664 | -397.8 | -5,380 | -5,404 | 0.4 |
Earnings per share, EUR | -0.43 | -0.09 | -397.8 | -0.28 | -0.28 | 0.4 |
Operating result, % | -63.7 | -7.1 | -6.1 | -6.4 | ||
Comparable operating result, % | -7.1 | -6.9 | -7.2 | -1.1 | ||
Equity ratio, % | 30.1 | 30.3 |
CEO Aarne Aktan : The actions taken to enhance operational efficiency turned the company's profitability in a more positive direction
We decided on two very significant company matters in the last quarter. Due to the changed circumstances, the treatment of product development costs was updated and aligned with the new operational logic. We ceased product development cost activations during the quarter and fully wrote off the activated product development costs of
The comparable revenue of
During the review period, the company announced a change in its product development practices. Developing its software products had become an integral part of continuous services and standard operations, and the costs related to product development no longer met the requirements for activating them. During the fourth quarter, the company treated the product development expenses of its existing software products as cost items in the income statement, as part of normal business operations, and ceased product development cost activations. This change affects the comparability of EBITDA and operating result of the fourth quarter to the corresponding quarter in 2022.
During the review period, the Group's comparable EBITDA was
The Group's comparable operating result was
Additionally, in
During the review period, the revenue and business result of the Utilities segment developed positively. This was due to the completed change negotiations, the restructuring of operations, and the development of the product business. The change negotiations, initiated to improve profitability and operational efficiency, were completed on
The performance of the Retail & Commerce segment was hindered by the continued volatility of the global economy and its impact on demand. Customer organizations were cautious regarding investments, which led to delays in decision-making and scale-downs of scopes in project deliveries. The long-term market outlook for the Retail & Commerce segment is expected to remain moderate, with demand anticipated to recover as the markets stabilize.
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
The financial statements for the financial year 2023 have been drawn up under the 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 company has initiated measures to arrange refinancing of the company. The arrangement consists of the renewal of the existing bond and of the standby and bank account credit limits.
In assessing the going concern, the management of the company has considered the effects of the measures taken during the financial year 2023 on the company's financial performance, financial forecasts and risks related to financial negotiations. Based on these factors, management estimates that operations will continue and that the risk of insufficient funding is small. The company believes that the planned financing arrangements will lead to a favorable outcome. However, if the company fails to restructure the financing, this would jeopardize the continuity of the company's operations.
The 2023 financial statements have therefore been drawn up under the going concern principle.
Financial reporting
The Financial Statements Bulletin 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 2022. 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-financial-statements-bulletin-january-1---december-31--2023,c3928780
https://mb.cision.com/Main/10667/3928780/2605773.pdf
https://mb.cision.com/Public/10667/3928780/8f9545a3714c9c1c.pdf
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