HELSINKI--(BUSINESS WIRE)--Regulatory News:
Solteq Plc Stock Exchange Bulletin 15.7.2016 at 8.00 am
Revenue and operating profit developed as expected, focusing on omnichannel and digital commerce continues
Brief look at January – June 2016
- Revenue totalled 31,8 million euros (19,0 million euros)
- Operating profit was 5,735 thousand euros (1,119 thousand euros). The impact of the business divested in the first quarter on the operating result was –212 thousand euros.
- Adjusted operating profit was 1.606 thousand euros (1,119 thousand euros). The nonrecurring income and costs related to the divestment of MainIoT Software Ltd totalled +4,129 thousand euros.
- Solteq Group’s equity ratio was 32,4 % (52,0 %).
- Earnings per share was 0,29 euros (0,06 euros)
- In the review period, Solteq published the new strategy, in which the key elements are digital commerce, growth and internationalisation.
- As a part of the strategic focusing on the omnichannel and digital commerce solutions, the company decided to sell the entire share capital of MainIoT Software Ltd that provides software solutions for maintenance and services management.
- Solteq initiated an efficiency programme to improve the profitability in a few business areas
Key figures and ratios
|4-6 / 2016||4-6 / 2015||Change-%||1-6 / 2016||1-6 / 2015||Change-%|
|Revenue, EUR million||16,4||9,8||67,0 %||31,8||19,0||67,6 %|
|Adjusted operating profit, EUR million||0,9||0,7||33,4 %||1,6||1,1||43,5 %|
|Operating profit, EUR million||0,8||0,7||24,6 %||5,7||1,1||412,5 %|
|Profit for the financial period, EUR million||0,5||0,5||-9,5 %||4,9||0,9||453,8 %|
|Earnings/share, eur||0,02||0,04||-50,0 %||0,29||0,06||379,4 %|
|Operating profit -%||5,0 %||6,7 %||-25,3 %||18,0 %||5,9 %||205,1 %|
|Equity ratio, %||32,4 %||52,0 %||-37,8 %||32,4 %||52,0 %||-37,8 %|
Repe Harmanen, CEO of Solteq: New strategy, focus on digital commerce and improved profitability
We are an expert in digital commerce. We offer comprehensive solutions for multichannel and digital commerce: backend processes all the way to customer experience – from supply chain management to digital marketing. This is the core, the mission and the goal of our business operations.
Our performance in the past quarter and the first half year was mainly positive and met our expectations. The most positive development in terms of the revenue and operating profit was seen in the key strategic areas. At the same time, we had a few business units in which the improvement of profitability required special measures. Improvements were started in the first quarter, and results will be seen towards the end of the year.
An example of the strength of our strategy is the framework agreement with the Musti ja Mirri Group Oy on the delivery of a retail business solution to the Finnish, Swedish and Norwegian markets that we published at the beginning of July. During the latter part of the year, we will strengthen the part of our operations that is related to digital commerce.
The key elements of our strategy are digital commerce, growth and internationalisation. In the Nordic countries, we will focus on solutions for retail chains and digital commerce. Globally, digital commerce solutions is in the core of our strategy. In Finland, we will mainly grow organically, but in the Nordic countries and globally, we also aim at being active in mergers and acquisitions to implement our strategy. Strategic action plans to improve growth and profitability are being implemented to ensure that we will stay ahead our competitors.
The positive development of our main financial key figures has continued, which means that we are well prepared for implementing our strategic measures. We will estimate the competitiveness of our solution offering in the Nordic market to allow us to strengthen our main strategic areas if necessary. At the same time, we believe that focusing on certain solutions will enhance our operations.
The excellent contribution of our experts has taken us huge steps forward, and I am pleased with our achievements in this respect. The feedback that we have received on our recent development and strategy outlines has been extremely promising from our experts and. The structural change that we are implementing is clearly the right way to grow and develop in view of the drastic changes taking place in the digital world.
We will maintain our earlier profit guidance concerning the revenue and operating profit for 2016.
We wish all our stakeholders an excellent summer season!
Guidance on Group outlook
Solteq Group’s revenue is expected to grow significantly compared to financial year 2015. The operating profit and the adjusted operating profit are expected to grow compared to financial year 2015 as well.
The expected growth of revenue and operating profit is mainly related to the M&A activity completed during the previous financial year and during the review period. In addition, the cost synergies arising from the M&A activity are expected to be realized mainly during the year 2016.
Briefing for investors and media
The media and investor briefing for the announcement of financial performance of the first half of 2016 will be broadcasted on Periscope July 15th, 2016 at 13.00 on channel @SolteqTweets.
The briefing will be recorded and can be accessed on the Solteq’s website later on the same day.
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Solteq in brief
Solteq is an expert in digital commerce. We deliver comprehensive solutions for digital commerce under one roof: from back-office processes to customer experience – from supply chain management to online marketing. We have the passion to deliver the unexpected – in a fast-changing world our customers need a partner who can deliver today what they need tomorrow. We employ ca. 500 experts in three different countries and we make deliveries to Europe, North America, Asia and Australia.
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