HALF-YEARLY REPORT JUNE 30, 2021
CONTENTS
1) REPORT ON OPERATIONS STATUTORY FINANCIAL STATEMENTS AS AT 30/06/2021
2) STATUTORY FINANCIAL STATEMENTS, CASH FLOW STATEMENT AND EXPLANATORY
NOTES AS AT 30/06/2021
3) REPORT ON OPERATIONS CONSOLIDATED FINANCIAL STATEMENTS AS AT 30/06/2021
4) CONSOLIDATED FINANCIAL STATEMENTS, CASH FLOW STATEMENT AND EXPLANATORY
NOTES AS AT 30/06/2021
STAR7 SPA
STAR7 SPA
Via Alessandria, 37/B - 15122 Valle San Bartolomeo (AL) Share capital €500,000.00 fully paid up Reg. Imp. 01255170050 - Rea 208355
Tax ID code and VAT number 01255170050
Report on Operations Six-monthly Report as at 30/06/2021
Dear Shareholders,
the Six-Monthly Report as of June 30, 2021 reports a profit of 1,252,129 euros (374,577 euros as of June 30, 2020 and 1,022,127 euros as of December 31, 2020).
Operating conditions and business development
Your company operates in the field of translation and interpreting, automation of translation processes and language technologies, technical editing and content engineering, dedicated IT development, and print on demand.
Pursuant to art. 2428, we inform that the activity is carried out at the head office in Alessandria, hamlet of Valle San Bartolomeo, and at the local units in Asti, Turin, Pistoia, Maranello and La Spezia.
From a legal point of view, STAR7 S.p.A. directly or indirectly controls the following companies which carry out activities that are complementary and/or functional to its core business:
Company | Registered office | Shareholding | Control | Activities |
STAR7 PRINTING S.R.L. STAR7 ENGINEERING S.R.L. AD STUDIO S.R.L. STAR COMUNICAÇÃO E SERVIÇOS LTDA CAL COMUNICAÇÃO LTDA STAR USA LLC TECHWORLD LANGUAGE SERVICES INC. THE GEO GROUP CORPORATION STAR7 GMBH STAR ALBANIA SHPK | ASTI - ITALY MARANELLO (MO) - ITALY LUGO (RA) - ITALY BELO HORIZONTE - BRAZIL BELO HORIZONTE - BRAZIL DOVER - DELAWARE - U.S.A. TROY - MICHIGAN - U.S.A MADISON - WISCONSIN - U.S.A. LINZ - AUSTRIA TIRANA - ALBANIA | 60% 100% 100% 75% 75% 100% 100% 100% 100% 100% | 60% 100% 100% 75% 75% 100% 100% 100% 100% 100% | printing & logistics process engineering technical authoring technical authoring printing logistics translation, authoring (in start up) translation, authoring translation, authoring technical authoring (in start up) technical authoring |
Operating performance
General economic trends
In the first half of the year, after the period of stagnation caused by the COVID-19 pandemic emergency, the international scenario was characterized by a decisive recovery in world trade and a progressive improvement in production, albeit with different timing and pace in the various countries.
In fact, the overall scenario is one of growth and the forecast increase in GDP over the two-year period will be driven by investment and, to a lesser extent, by increased household consumption.
The activities of STAR7 S.p.A. and its subsidiaries during the first half of the year were part of this context, with clear growth results compared to both the same half of 2020 and the volumes of 2020.
The review of internal functions started in 2020 has brought about significant changes in the corporate structure, which is now projected towards an efficient multinational model, interconnected in all operational and functional areas and ready to face the request for admission of its shares to the listing on AIM.
Also in anticipation of the listing, in March 2021 the acquisition was completed of the production branch of Grafitec srl, operating in the printing sector and specializing in defense documentation, both classified and
Report on Operations of STAR7 S.p.A. for the six-month period ended 30/06/2021
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STAR7 SPA
ordinary.
In April our subsidiary, STAR USA LLC, completed the acquisition of the American company, The Geo Group Corporation, which operates in the translation sector and is preparing to develop translation activities in America. In the meantime, the process of acquiring a company specializing in software localization and translation services with a significant turnover that would give a strong boost to the activities of our company and the Group is being finalized.
On June 28, 2021, with a deed drawn up by Notary Conforti, the Parent Company purchased 50,000 shares owned by STAR AG for an amount of 3,000,000 euros.
This transaction is part of the process of admission of the Parent Company's shares to the AIM Italia multimedia trading system managed by Borsa Italiana S.p.A., which was suspended in March 2020 due to the health emergency and resumed in February of this year.
The outlook for the future is therefore positive, considering that Italian entrepreneurs are in favor of the vaccination campaign to defeat the COVID-19 pandemic, the main precondition for not nipping in the bud a recovery that has been taking place in recent months but that must be absolutely consolidated.
Research and development activities
Pursuant to article 2428, paragraph 3, number 1, the following information is acknowledged.
During the first half of 2021, as well as in the previous five-year period, as in part already formally explained in the Management Report on the Company's previous individual financial statements, STAR7 S.p.A. carried out research and development projects, eligible for subsidies pursuant to Article 3 of Decree no. 174 of May 29, 2015 of the Ministry of Economy and Finance (pursuant to Law Decree 145/2013 converted into Law 190/2014). As a leading company in the field of language and translation services, both on the national and international geographic market, we have in fact implemented Experimental Development Projects, where the development activity consisted in the conceptual definition and implementation of new products, processes or services.
The Company has developed high added-value editorial technologies in the various Business Areas (Editorial, Language Services, After Sales), succeeding in developing innovative ideas and applications of already existing services, as well as co-developing - also with dedicated internal resources - and increasing the potential and integration of already available software and creating new integrated platforms.
It is the Company's intention to continue to boost the development of new activities characterized by a dose of innovation with respect to its reference market, through a series of initiatives that will primarily involve human resources, external consultants and technical equipment.
Performance of operations in the sectors in which the company operates
As regards STAR7 S.p.A. and its subsidiaries, the past six months must be considered positive.
Both STAR7 S.p.A. and its subsidiaries increased their market share in both the translation and print/editorial sectors and significantly increased revenues in the defense sector.
Report on Operations of STAR7 S.p.A. for the six-month period ended 30/06/2021
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STAR7 SPA
Summary of financial statements (figures in Euros)
30/06/2021 | 30/06/2020 | Change | % Change | |
Net sales revenues Gross operating margin (M.O.L. or EBITDA) Operating income (EBIT) Profit before tax Net income | 21,057,955 2,341,677 1,734,094 1,672,129 1,252,129 | 15,248,699 510,247 280,873 374,577 374,577 | 5,809,256 1,831,430 1,453,221 1,297,552 877,552 | 38.1% 358.9% 517.4% 346.4% 234.3% |
30/06/2021 | 31/12/2020 | Change | % Change | |
Fixed assets Net equity Net financial position | 7,161,971 7,162,289 16,486,759 | 7,142,321 8,899,075 12,841,878 | 19,650 -1,736,786 3,644,881 | 0.3% -19.5% 28.4% |
The change in the net financial position is mainly due to the use of financial resources for the purchase of treasury shares (EUR 3 million) aimed at listing on the AIM market of Borsa Italiana
Main income data
The Company's reclassified Income Statement compared with that for the same period of the previous year is as follows (in euros):
30/06/2021 | 30/06/2020 | Change | % Change | |
Net revenues Changes in inventories and increases in fixed assets External costs Value added | 21,176,207 21,746 - 12,172,275 9,025,678 | - - 15,438,832 7,757 9,802,296 5,628,779 | 5,737,375 29,503 -2,369,979 3,396,899 | 37.2% -380.3% 24.2% 60.3% |
Personnel costs EBITDA | -6,629,445 2,396,233 | -5,085,761 543,018 | -1,543,684 1,853,215 | 30.4% 341.3% |
Amortisation, depreciation, write-downs and other provisions Operating profit (loss) | -662,139 1,734,094 | -262,145 280,873 | -399,994 1,453,221 | 152.6% 517.4% |
Financial income and charges Profit (loss) before non-recurring items | - 61,965 1,672,129 | 93,704 374,577 | -155,669 1,297,552 | -166.1% 346.4% |
Revaluations and write-downs Profit before tax | - 1,672,129 | - 374,577 | - 1,297,552 | - 346.4% |
Income taxes Net profit (loss) | - 420,000 1,252,129 | - 374,577 | -420,000 877,552 | 100.0% 234.3% |
In order to provide a better description of the Company's income situation, the table below shows some profitability indicators compared with the same indicators for previous years.
30/06/2021 | 30/06/2020 | 31/12/2020 | |
ROE ROI ROS | 15.6% 7.3% 8.2% | 4.6% 1.5% 1.8% | 12.2% 6.1% 3.9% |
Report on Operations of STAR7 S.p.A. for the six-month period ended 30/06/2021
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STAR7 SPA
Main balance sheet data
The reclassified Balance Sheet of the Company compared with the previous year's figures is as follows (in Euros):
30/06/2021 | 31/12/2020 | Change | % Change | ||||
Net intangible fixed assets | 4,650,055 | 4,433,581 | 216,474 | 4.9% | |||
Net property, plant and equipment | 634,408 | 661,232 | -26,824 | -4.1% | |||
Equity investments and other financial fixed assets | 1,877,508 | 2,047,508 | -170,000 | -8.3% | |||
Capital assets | 7,161,971 | 7,142,321 | 19,650 | 0.3% | |||
Inventories | 219,031 | 17,284 | 201,747 | 1167.2% | |||
Trade receivables | 19,963,475 | 20,416,607 | -453,132 | -2.2% | |||
Receivables due from associated and subsidiary companies | 6,919,901 | 4,487,978 | 2,431,923 | 54.2% | |||
Other receivables | 2,221,722 | 1,465,917 | 755,805 | 51.6% | |||
Accrued income and prepaid expenses | 1,325,572 | 839,778 | 485,794 | 57.8% | |||
Short-term operating assets | 30,649,701 | 27,227,564 | 3,422,137 | 12.6% | |||
Trade payables | - | 3,577,010 | - | 3,429,345 | -147,665 | 4.3% | |
Payables to associated and subsidiary companies | - | 4,075,567 | - | 3,747,564 | -328,003 | 8.8% | |
Tax and social security payables | - | 1,713,725 | - | 956,707 | -757,018 | 79.1% | |
Other payables | - | 1,459,029 | - | 1,295,748 | -163,281 | 12.6% | |
Accrued expenses and deferred income | - | 148,565 | - | 351,845 | 203,280 | -57.8% | |
Short-term operating liabilities | - | 10,973,896 | - | 9,781,209 | -1,192,687 | 12.2% | |
Net working capital | 19,675,805 | 17,446,355 | 2,229,450 | 12.8% | |||
Employee severance indemnity | - | 2,905,911 | - | 2,583,457 | -322,454 | 12.5% | |
Taxes and social security payables (beyond the subsequent | |||||||
- | - | 0 | 0.0% | ||||
year) | |||||||
Other medium- and long-term liabilities | - | 282,817 | - | 264,266 | -18,551 | 7.0% | |
Medium/long-term liabilities | - | 3,188,728 | - | 2,847,723 | -341,005 | 12.0% | |
Invested Capital | 23,649,048 | 21,740,953 | 1,908,095 | 8.8% | |||
Net equity | - | 7,162,289 | - | 8,899,075 | 1,736,786 | -19.5% | |
Medium/long-term net financial position | - | 13,015,680 | - | 10,303,407 | -2,712,273 | 26.3% | |
Short-term net financial position | - | 3,471,079 | - | 2,538,471 | -932,608 | 36.7% | |
Equity and net financial debt | - | 23,649,048 | - | 21,740,953 | - | 1,908,095 | 8.8% |
The reclassified balance sheet shows the company's financial soundness (i.e. its ability to maintain a financial balance in the medium/long term).
In order to provide a better description of the company's financial solidity, the table below shows some balance sheet ratios concerning both (i) the methods of financing medium/long-term loans and (ii) the composition of the sources of financing, compared with the same ratios relating to the financial statements of previous years.
30/06/2021 | 31/12/2020 | |
Primary structural margin (shareholders' equity - fixed assets) | 318 | 1,756,754 |
Report on Operations of STAR7 S.p.A. for the six-month period ended 30/06/2021
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Star7 S.p.A. published this content on 25 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 March 2022 12:16:07 UTC.