PARIS--(BUSINESS WIRE)--Regulatory News:
Unaudited data - in €m
Positive business outlook in a challenging economic period
Prodware generated €46.9 million in revenue in the 1st quarter of 2020, compared with €46.3 million in the same period in 2019, representing a 1.4% increase.
These commendable results, despite the dire economic situation since March 2020 due to the Covid-19 global health crisis, were due to SaaS sales, which were up 28.2% during this period. SaaS sales, which spearhead the Group's strategy, account for 17% of its business compared to 14% in the 1st quarter of 2019.
Sales in software licenses increased slightly to €16.1 million (+3.3%), accounting for 34% of overall revenues, and were stable compared to the same period of the previous financial year.
Conversely, the 1st quarter of 2020 was marked by a slump in integration & consulting services as projects were postponed and signing of new deals pushed back, due in part to the impact of lockdowns across Europe as of March. Sales in these lines of business were down 6.7% reaching €22.8 million.
Across the group’s geographies, international revenues grew 6.2% to reach €27.9 million, driven in particular by strong business performance in Germany and The Netherlands.
Impacts of the Covid-19 crisis
As of mid-March, Prodware put together a crisis management task force whose members meet on a regular basis to monitor the situation and decide on the required measures and steps to move forward. A Business Continuity Plan has been rolled out addressing all business divisions and was communicated to all the employees.
A remote working infrastructure has been set up for all business lines where applicable. Each department can therefore meet the demands of their customers thanks to the hard work and dedication of the teams who can activate digital processes throughout ensuring smooth workflow management. The limited but necessary on-site work is still planned and is conducted in full compliance with the recommended safety rules and measures.
The Group is also closely monitoring its expenses and conducting tight budget spending reviews aligning them to the business. For instance, the French government's partial unemployment scheme has been applied to all business lines that have experienced a slowdown. These measures seek to minimize the impact on profitability related to the potential decline in revenues in 2020.
Prodware is also paying very close attention to the management of its liquidities and debt.
The effects of the global Covid-19 pandemic will continue to affect business going forward, as it did in the 1st quarter. The magnitude of the impact will depend on how long lockdowns last and the rate at which the economy picks up again in the regions where Prodware operates.
Beyond the short-term effects of this crisis, the Group expects to see a sustainable pick-up in the growth of digital, which permeates considerably across all businesses, whether to support the development of remote working, boost e-commerce activity, IoT or point-to-point logistics. As experts in developing and deploying industry-specific business solutions, Prodware unleashes an incredible dynamic supporting its long-term growth strategy.
Next publication: Revenue for the 1st half of 2020: 20 July 2020 after close of trading.
With 30 years of experience and know-how in IT innovation, we strive to provide value and expertise to our customers around the world. Whether we’re implementing the most ambitious cloud strategies, developing AI-powered decision-making tools, or creating IoT applications, Prodware is always at the cutting edge of innovation.
Since its inception, Prodware has leveraged technological progress to help businesses prepare for the future by helping them build the business processes of tomorrow for the manufacturing, sales, distribution, finance, and business service industries.
The Prodware group includes more than 1,350 employees across 13 countries. It generated revenues of €188 million in 2019. Prodware SA is listed on Euronext Growth and is eligible for FCPI (innovation funds) and SME PEA (equity savings plan).
For more information, visit www.prodwaregroup.com/fr-fr/
EURONEXT GROWTH (formerly ALTERNEXT)
ISIN FR0010313486 - ALPRO - FTSE 972 IT services
Prodware is FCPI-eligible – Prodware, a socially responsible company, is a member of the Global Compact.