Siili Solutions Plc: Business review, 1 January–30 September 2023
Siili Solutions Plc: Business review, 1 January–30 September 2023
Siili’s growth slowed down and profitability weakened in a challenging market situation
Siili Solutions Plc Stock Exchange Release 24 October 2023 at 9:50 am EEST
Key figures
| EUR million | Q3/20231 | Q3/2022 | Q1-Q3/20231 | Q1-Q3/2022 |
| Revenue | 27.0 | 26.9 | 92.3 | 85.8 |
| Revenue growth, EUR million | 0.1 | 4.5 | 6.5 | 14.7 |
| Revenue growth, % | 0.5% | 20.3% | 7.6% | 20.6% |
| Organic revenue growth, EUR million | -1.2 | 4.5 | 2.3 | 12.2 |
| Organic revenue growth, % | -4.1% | 20.3% | 2.6% | 17.1% |
| Adjusted EBITA2 | 1.3 | 2.3 | 6.3 | 8.8 |
| Adjusted EBITA, % of revenue | 4.7% | 8.7% | 6.8% | 10.3% |
| EBITA | 1.3 | 2.3 | 6.3 | 8.8 |
| EBITA, % of revenue | 4.7% | 8.7% | 6.8% | 10.3% |
| Average number of employees during the period | 1,057 | 968 | 1,049 | 940 |
| Number of employees at the end of the period | 1,053 | 994 | 1,053 | 994 |
| Number of full-time employees (FTE) at the end of the period | 1,023 | 975 | 1,023 | 975 |
| Number of full-time subcontractors (FTE) at the end of the period | 172 | 208 | 172 | 208 |
1 Organic revenue growth is calculated based on comparable pro forma revenue.
2 Adjusted EBITA is calculated by adding items affecting comparability to EBITA, such as direct costs of acquisitions.
Key events in July-September:
- The company published a profit warning on 13 July 2023 and lowered it's guidance for revenue and EBITA for 2023.
- The company completed change negotiations in August - September 2023. The aim of the negotiations was to strenghten competitiveness and to address the weakened market conditions. As a result of the negotiations, the employment relationships with a total of 10 employees were terminated.
- Siili was selected as a supplier of expert services for the development and maintenance of information systems for the National Land Survey of Finland.
Outlook for 2023:
The updated financial guidance of revenue for 2023 is estimated to be EUR 120–140 million and EBITA EUR 8.3–11.8 million.
The previous guidance for the current year’s group revenue was EUR 125–145 million and EBITA EUR 12-15.5 million.
CEO Tomi Pienimäki:
In July–September, we continued to progress in the challenging IT services market. New sales in all of Siili's service areas slowed down as a result of the changed market situation. Revenue in the third quarter was at the same level the year earlier. Our growth slowed down, which is in addition to the market change, partly explained by the strong comparison period and the lower number of working days than in the comparison period. Our EBITA decreased to EUR 1.3 million, corresponding to 4.7% of revenue.
The slowdown in revenue growth, increased price competition and wage inflation challenged our growth and profitability during the period both in Finland and internationally. We have responded actively to the situation and initiated several adaptation and efficiency measures to strengthen our competitiveness. We implement changes, responsibly striving to maintain the highest quality in our operations and ensure customer satisfaction. Our goal is to secure our long-term position as a versatile leader in the technology sector.
The highlights of the period include progress among public sector customers in line with our strategy. In July, we further solidified our position in this key market when the National Land Survey of Finland chose us as their partner for expert services in the development and maintenance of information systems. The subareas of this partnership have an estimated total value of EUR 17 million over the four-year agreement period.
Our core strength lies in designing, developing, and maintaining extensive and demanding digital services for our clients. This expertise was duly recognized when the project we undertook with Fintraffic, called 'Nemo,' received the prestigious Service Design Award at a ceremony in Berlin – one of the highest honors in the service design industry. Once completed, Nemo is set to become a nationally centralized Single Window service for maritime traffic declarations.
We estimate that uncertainties in the operating environment will not materially decrease towards the end of the year. We do our best to adapt to the market situation while looking firmly to the future. We hold on to our strengths: our excellent delivery capability and good customer satisfaction. The private and public sectors are facing an increasing need to enhance their datacentric competitiveness and efficiency, especially as the pace of digitalisation and technological advancement accelerates. Given these trends, we foresee a sustained and robust demand for the expertise of Siili’s team in the future.
Thank you to all Siilis for the good contribution and fortitude in challenging conditions in the third quarter!
---
This is not an interim report under IAS 34. The company complies with the half-yearly reporting requirements of the Securities Markets Act and publishes business reviews for the first three and nine months of the year, which present key information on the company’s financial performance. The financial information presented in this business review is unaudited.
Further information:
CEO Tomi Pienimäki
Tel: +358 40 834 1399, email: tomi.pienimaki(at)siili.com
CFO Aleksi Kankainen
Tel: +358 40 5342 709, email: aleksi.kankainen (at)siili.com
Distribution:
Nasdaq Helsinki Ltd
Main media
www.siili.com/en
Siili Solutions in brief:
Siili Solutions Plc is a unique combination of a digital agency and a technology powerhouse. We believe in human-centricity in everything we deliver. Siili is the go-to partner for clients seeking growth, efficiency and competitive advantage through digital transformation. Siili has offices in Finland, Germany, Poland, Hungary, Netherlands, United Kingdom, Austria and USA. Siili Solutions Plc shares are listed on Nasdaq Helsinki Ltd. Siili has grown profitably since it was founded in 2005. www.siili.com
Attachment
To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
GlobeNewswire by notifiedGlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
BW Ideol AS – End of Offer Period for the recommended voluntary offer by BW Sirocco Holdings AS, and final level of acceptances of the offer30.11.2023 19:51:43 CET | Press release
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR WITHIN THE UNITED STATES, CANADA, AUSTRALIA, NEW ZEALAND, SOUTH AFRICA, HONG KONG, JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR OTHER MEASURES Oslo, 30 November 2023 - Reference is made to the announcement made by BW Sirocco Holdings AS (the "Offeror) on 9 November 2023 regarding a recommended voluntary offer to acquire all the issued and outstanding shares (the "Shares") in BW Ideol AS ("BW Ideol" or the "Company"), not already held by the Initiating Shareholders (as defined in the Offer Document), at an offer price of NOK 12 per Share (the "Offer Price"), to be settled in cash or shares in the Offeror (the "Offer"), as further described in the combined offer document and national prospectus (the "Offer Document"), the announcement on 14 November regarding the publication of the Offer Document and commencement of
Ensurge Micropower ASA - Approval and publication of prospectus; commencement of subscription period in Subsequent Offering30.11.2023 19:32:57 CET | Press release
Reference is made to the stock exchange announcement published on 18 October 2023 by Ensurge Micropower ASA ("Ensurge" or the "Company"), regarding the successful placement of new shares, through an allocation of 122,846,875 new shares in Tranche 1 (the "Tranche 1 Shares") and an allocation of 352,153,125 new shares in Tranche 2 (the "Tranche 2 Shares"), as well as a possible subsequent repair offering raising up to NOK 12.5 million through the offering of up to 125,000,000 shares (the "Offer Shares") on similar terms as the private placement (the "Subsequent Offering"). As stated in the stock exchange announcement on 18 October 2023, the Subsequent Offering and the trading of the Tranche 2 Shares remained subject to approval of a prospectus by the Financial Supervisory Authority of Norway. Further reference is made to the Extraordinary General Meeting held on 10 November 2023 approving the issuance of the Tranche 2 Shares and the Subsequent Offering. The Financial Supervisory Authorit
Acronis Named a Leader in the IDC MarketScape: Worldwide Cyber-Recovery 2023 Vendor Assessment30.11.2023 18:59:51 CET | Press release
BURLINGTON, Mass., Nov. 30, 2023 (GLOBE NEWSWIRE) -- Acronis, the global leader in cyber protection, today announced it had been identified as a Leader in the IDC MarketScape: Worldwide Cyber Recovery 2023 Vendor Assessment (doc #US49787923, November 2023). This is the first IDC MarketScape report about cyber recovery which illustrates the growing importance of both proactive defense and reactive recovery within an organization’s ability to deal with cyberattacks. The IDC MarketScape report cites Acronis’ key offerings, including a single agent that simplifies deployment and enables unique integration capabilities as well as integrated end-point protection. “Acronis was one of the first data protection vendors to identify and target the cyber recovery marketplace nearly five years ago and to rearchitect their solution specifically for cyber recovery,” the IDC MarketScape noted. Additionally, when referencing the company’s fundraising efforts in the past couple of years, the IDC MarketS
Tangem Sets New Standards for Crypto Hardware Wallet Integrity: Introducing Firmware Attestation, Audited by Riscure30.11.2023 18:54:27 CET | Press release
ZUG, Switzerland, Nov. 30, 2023 (GLOBE NEWSWIRE) -- Tangem AG, a leading crypto hardware wallet manufacturer, is thrilled to announce an in-depth software audit of the Tangem Wallet by Riscure, a renowned independent security lab specializing in evaluating the security of embedded software, chips, and devices. This constitutes Tangem's second consecutive security audit success, following a rigorous evaluation by Kudelski Security in 2018, which affirmed the absence of risks, malicious features and backdoors in the hardware wallet. The seamless outcomes of both audits underscore Tangem's unwavering commitment to maintaining the highest standards of security in its products. In this assessment, Riscure examined the source code and architecture of Tangem’s crypto wallet, testing all functionalities and commands accessible through the NFC interface. The primary goal was to identify potential vulnerabilities and logic-related security issues. The security evaluation did not reveal security
Dutch Court Orders Greenpeace Protesters Off NORI Research Vessel, Greenpeace Complies30.11.2023 18:42:09 CET | Press release
The District Court of Amsterdam has ordered Greenpeace International to immediately disembark from the research vessel commissioned by TMC subsidiary Nauru Ocean Resources Inc (NORI) to conduct legally-mandated environmental impact assessments requested by the Legal and Technical Commission of the International Seabed Authority (ISA) Since November 23rd, Greenpeace’s unsafe and unlawful activities have hindered independent scientists in conducting environmental and scientific studies to assess ecosystem function and recovery one year on from NORI’s pilot nodule collection system testNORI commends Greenpeace’s prompt effort to comply with the court order and looks forward to collaborating to ensure the safety of all personnel at sea NEW YORK, Nov. 30, 2023 (GLOBE NEWSWIRE) -- TMC The Metals Company Inc. (“TMC” or “The Metals Company”), an explorer of lower-impact battery metals from seafloor polymetallic nodules, today announced that the District Court of Amsterdam in the Netherlands ha