Earnings Release • Oct 13, 2021
Earnings Release
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Effect of provisions on half-year 2021 results:
| IFRS standards Unaudited data - in € M |
H1 2020 | H1 2021 | Variation |
|---|---|---|---|
| Consolidated Annual Turnover | 85.5 | 81.6 | -4.6% |
| EBITDA | 23.9 | 18.7 | -21.6% |
| % of turnover | 27.9% | 22.9% | |
| Current Operating Income | 7.8 | -1.0 | - |
| In % of turnover | 9.1% | -1.3% | |
| Operating Income | 7.5 | -1.1 | - |
| % of turnover | 8.8% | -1.3% | |
| Net Income Group Share | 4.2 | -6.3 | - |
| % of turnover | 4.9% | -7.7% |
In the first half of 2021, Prodware generated revenue of €81.6 M, compared with €85.5 M in the first half of 2020, dropping 4.6%. Business is up 2.3% on a pro forma basis – results factoring in the impact of the sale of the subsidiary in Tunisia in 2020 and the closing down of the software integration business in Israel.
Sales of on-premise software licenses, including those developed by the Group, declined. SaaS sales, on the other hand, continued to grow, with revenue reaching €22.0 M, up 16.0% on a pro forma basis* compared with the same period last year. This trend will continue in a market where the SaaS business model is increasingly gaining ground while "on-premise" solutions are being phased out.
With its ongoing Operational Excellence Initiative, Prodware maintains its EBITDA level above 20%. It reached €18.7 M, down 21.6% compared to the same period in 2020, with a 22.9% profit margin.
Given the decrease in the promotion and sales of on-premise offerings and the limited prospects for growth of this business model, the Group performed an impairment test of these "on-premise" assets and determined an impairment loss valued at approximately €5 M. As a result, the Current Operating Income showed a loss of €1.0 M at the end of June 2021, compared to a profit of €7.8 M at the end of June 2020.
Stéphane Conrard Directeur financier T : 0979 999 000 [email protected] PRESSE
Gilles Broquelet CAP VALUE T : 01 80 81 50 01 [email protected]
ISIN FR0010313486 - ALPRO - FTSE 972 Services informatiques Prodware est éligible FCPI - Entreprise responsable, Prodware est adhérent du Global Compact.
Financial results came out at €-3.0 M in H1 2021, compared to €-3.8 M in H1 2020. The net income Group share, after allocating €2.3 M to tax expenses (including a reversal of deferred tax assets (DTA) of approximately €1.7 M, due to the impairment test), amounted to €-6.3 M.
As of June 30th, 2021, Prodware's balance sheet showed €149.1 M in equity, a decrease of €6.3 M compared to December 31st, 2020.
Net debt (excluding rental liabilities from IFRS 16) amounted to €92.5 M, an increase of €7.4 M. Net debt represents 62% of consolidated equity.
In Q3 2021, Prodware generated €31.2 M in revenue compared to €32.2 M for the same period in 2020, down 3.2%. On a pro forma basis*, the activity is up 2.6%.
Over the first nine months of the year, revenue reached €112.8 M, up 2.3% on a pro forma* basis and down 4.2% on a reported basis. SaaS sales continue to climb up 24.8% of revenue, compared with 21.6% for the first nine months of the previous year.
In the second half of 2021, Prodware will continue to promote and serve its customers with its Digital Transformation Offering providing a comprehensive business transformation approach from Business Consulting to Managed Services, developing and deploying industry-specific software solutions. Seeking to get net profit figures back on track will be a priority in a particularly fast-moving market with strong demand for SaaS solutions and value-added service offerings. The launch of our Cyber Security Service offerings to help customers better anticipate and protect against cyber crime will also contribute in securing and strengthening Prodware's market positioning as a leader in the Digital Transformation of companies, particularly fast-growing SMEs, Mid-Caps and subsidiaries of large groups.
* Pro forma: not including the impact of the sale of the Prodware subsidiary in Tunisia in 2020 and the closing down of the software integration business in Israel.
Next publication: Annual revenues 2021: February 24th, 2022 after market close.
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 are implementing the most ambitious cloud strategies, developing AI-powered decisionmaking 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 creating new economic models for the manufacturing, sales, distribution, finance, and business service industries. The Prodware group includes more than 1,250 employees across 12 countries. It generated revenues of €172.4 M in 2020. Prodware SA is listed on Euronext Growth and is eligible for FCPI (innovation funds) and SME PEA (equity savings plan). For more information: www.prodware-group.com
Stéphane Conrard Directeur financier T : 0979 999 000 [email protected] PRESSE
Gilles Broquelet CAP VALUE T : 01 80 81 50 01 [email protected]
ISIN FR0010313486 - ALPRO - FTSE 972 Services informatiques Prodware est éligible FCPI - Entreprise responsable, Prodware est adhérent du Global Compact.
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