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Inside information: Solteq provides preliminary information about its second quarter and considers commencing a written procedure to extend the final maturity date of its EUR 23 million notes

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Stock Exchange Bulletin

Inside Information

August 2, 2024, at 10:45 a.m.

 

Solteq provides preliminary information about its financial development to support financing negotiations. The figures are preliminary and have not been audited.

 

“We have achieved a significant turnaround in earnings. In the second quarter, comparable EBITDA improved by EUR 1.9 million and the comparable operating result by EUR 2.1 million. This led to an improvement in profitability of over 15 percent and a slightly positive operating result in the second quarter.

 

The turnaround in profitability has taken us two years, during which we have renewed our business strategy, enhanced our operations, and carried out group-wide cost savings programs. Our personnel has been the actual driving force behind this turnaround, and I am very grateful to them for that.

 

Due to these actions, the net cash flow improved by EUR 3.0 million in the first half of the year relative to the comparison period. I am very pleased with our financial development,” the CEO of the Company, Aarne Aktan, sums up.

 

Preliminary Key Figures:

 

April – June 2024

 

  • Comparable revenue totaled EUR 13.4 million (13.6) and decreased by 1.5 percent.
  • Comparable EBITDA was EUR 0.6 million (-1.3) and improved by EUR 1.9 million. Comparable EBITDA percent was 4.6 (-9.3).
  • Comparable operating result was EUR 0.0 million (-2.1) and improved by EUR 2.1 million. Comparable operating result percent was 0.0 (-15.3).
  • Earnings per share was EUR -0.03 (0.19).

 

January – June 2024

 

  • Comparable revenue totaled EUR 27.0 million (27.7) and decreased by 2.7 percent.
  • Comparable EBITDA was EUR 1.0 million (-1.1). Comparable EBITDA percent was 3.6 (-4.1).
  • Comparable operating result was EUR -0.2 million (-2.7). Comparable operating result percent was -0.9 (-9.8).
  • Earnings per share was EUR -0.06 (0.20).
  • Solteq Group’s equity ratio was 29.0 percent (38.4).
  • Net cash flow from operating activities was EUR 1.2 million (-1.8).

 

Solteq will publish its Half-Year Report on August 22 at 8.00 a.m., according to the previously published schedule.

 

Solteq considers commencing a written procedure to amend the terms and conditions of its notes

 

Solteq (the “Company”) considers commencing a written procedure to amend the terms and conditions of its EUR 23 million senior unsecured fixed-rate notes (the “Notes”) due October 1, 2024. The objective of the amendment to the terms and conditions of the Notes would be to ensure the sufficiency of funding and the continuity of operations.

 

If the written procedure is commenced, the Company considers proposing to amend the terms and conditions of its Notes, among other things, for the following matters:

 

  • extending the Final Maturity Date of the Notes for a maximum of 24 months so that the new Final Maturity Date would be October 1, 2026, at the latest;
  • increasing the coupon rate of the Notes from the current rate of 6.0 percent;
  • amending the redemption procedure by increasing the redemption price of the Notes from 100.0 percent during the extended maturity period; and
  • decreasing the permitted size of the Working Capital Facility included in the terms and conditions of the Notes to either EUR 7 million or 90 percent of EBITDA, whichever is greater.

 

The Company evaluates the possibility of commencing a written procedure in the near future. If a written procedure is commenced, the Company will publish a release on the matter and draft a request to the Noteholders for the written procedure and the proposed changes to the terms and conditions of the Notes. Approving the proposed changes would require that at least 20 percent of the Adjusted Nominal Amount and at least two-thirds (2/3) of the votes cast would consent to the request.

 

Distribution

 

Nasdaq Helsinki

Key media

www.solteq.com

 

Further information

 

CEO Aarne Aktan

Tel: +358 40 342 4440

E-mail: aarne.aktan@solteq.com

 

CFO, General Counsel Mikko Sairanen

Tel: +358 50 567 3421

E-mail: mikko.sairanen@solteq.com

 

Solteq in brief

 

Solteq is a Nordic software solution and expert service provider specializing in retail and energy sectors and needs related to e-commerce. The company operates with over 400 professionals in Finland, Sweden, Norway, Denmark, Poland, and the UK.

 

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