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Tinexta — Earnings Release 2022
Aug 4, 2022
4493_10-q_2022-08-04_5b4f1572-a4ee-4f9b-b266-3bc6a67d8859.pdf
Earnings Release
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| Informazione Regolamentata n. 20053-38-2022 |
Data/Ora Ricezione 04 Agosto 2022 13:38:45 |
Euronext Star Milan | |
|---|---|---|---|
| Societa' | : | TINEXTA | |
| Identificativo Informazione Regolamentata |
: | 165820 | |
| Nome utilizzatore | : | TINEXTANSS01 - MASTRAGOSTINO | |
| Tipologia | : | 1.2 | |
| Data/Ora Ricezione | : | 04 Agosto 2022 13:38:45 | |
| Data/Ora Inizio Diffusione presunta |
: | 04 Agosto 2022 13:38:46 | |
| Oggetto | : | first half 2022 | The BoD of Tinexta S.p.A. approves results as at 30 June 2022: growth continues in |
| Testo del comunicato |
Vedi allegato.
PRESS RELEASE
TINEXTA: GROWTH CONTINUES IN FIRST HALF 2022
The Board of Directors of Tinexta S.p.A. approves results as at 30 June 20221
- The comparative figures for the first half of 2021 have been restated following the agreement for the sale of the Credit Information & Management division:
- Revenues € 168.0 million, +20.2%
- Adjusted EBITDA: € 37.1 million, +20.6%; EBITDA: € 32.6 million +11.8%
- Net profit from continuing operations: € 13.3 million, +22.3%; Net profit: € 16.6 million, -7.7%
- Free Cash Flow from continuing operations: € 16.1 million (€ 45.0 million in last twelve months at 30 June 2022); Free Cash Flow: € 23.1 million
- Total financial indebtedness: € 266.7 million (€ 263.3 million at 31 December 2021)
- Guidance 2022 confirmed
* * * * Rome, 4 August 2022. The Board of Directors of Tinexta S.p.A., a leading provider of Digital Trust, Cyber Security, and Innovation & Marketing services, listed in the Euronext Star Milan segment, organised and managed by Borsa Italiana, met today underthe chairmanship of Mr Salza and approved the Interim Financial Report at 30 June 2022. In the first half of the year, Revenues amounted to € 168.0 million (+20.2%), adjusted EBITDA to € 37.1 million (+20.6%) and Net profit from continuing operations was € 13.3 million (+22.3%).
The Chairman, Enrico Salza, commented: "Despite the great economic instability and turbulence in the international environment, Tinexta recorded growth in the first half of the year. The positive results confirm the validity of the business model and soundness of our Group, which is increasingly well positioned to seize
1 The comparative figures for the first quarter of 2021 have been restated in relation to the completion, in the fourth quarter of 2021, of the activities to identify the fair values of the assets and liabilities of Swascan S.r.l., which is consolidated on a line-by-line basis from 1 October 2020, and Euroquality S.A.S., which is consolidated on a line-by-line basis from 31 December 2020, and of Corvallis S.r.l., Yoroi S.r.l and Queryo Advance S.r.l., consolidated on a line-by-line basis from 1 January 2021. The comparative figures for the first half of 2021 have been restated due to the reclassification of the Credit Information & Management Division's discontinued operations as a result of the conclusion of binding agreements for the sale.
The adjusted income statement results are calculated gross of non-recurring components, of the cost relating to stock option plans and incentives, of the amortisation of other intangible assets emerging at the time of allocation of the price paid in the business combinations and of the adjustment of liabilities for contingent consideration linked to acquisitions, net of the related tax effects and net of "Profit (loss) from discontinued operations". These indicators reflect the Group's economic performance, excluding non-recurring factors not strictly related to the activities and management of the business. For further details on the construction of the adjusted income statement results, please refer to the Interim Financial Report at 30 June 2022.
new development opportunities and support the production system to meet the challenges of growth, technological innovation and digital transformation".
The Chief Executive Officer, Pier Andrea Chevallard, commented: "The first half confirmed growth both in revenues and profitability, in line with expectations. The companies acquired delivered the expected performance, contributing significantly to the overall value creation. The first half-year performance allows us to confirm the growth targets for this year and to aim for a further strengthening of Tinexta in the digital services market, characterised by important growth prospects and central to the Group's development strategy".
CONSOLIDATED GROUP RESULTS AT 30 JUNE 2022
| Summary data (In millions of Euro) |
1st half of 2022 |
1st half of 2021 |
Change | Change % |
|---|---|---|---|---|
| Revenues | 168.0 | 139.7 | 28.3 | 20.2% |
| EBITDA | 32.6 | 29.2 | 3.4 | 11.8% |
| Adjusted EBITDA | 37.1 | 30.7 | 6.3 | 20.6% |
| Operating profit (loss) | 19.0 | 17.1 | 2.0 | 11.5% |
| Adjusted operating profit (loss) | 28.8 | 23.8 | 5.0 | 20.8% |
| Net profit from continuing operations | 13.3 | 10.9 | 2.4 | 22.3% |
| Adjusted net profit from continuing operations | 18.8 | 14.9 | 3.9 | 26.0% |
| Profit (loss) from discontinued operations | 3.3 | 7.1 | -3.8 | -53.8% |
| Net profit | 16.6 | 18.0 | -1.4 | -7.7% |
| Free cash flow | 23.1 | 29.7 | -6.5 | -22.0% |
| Free Cash Flow from continuing operations | 16.1 | 20.8 | -4.7 | -22.7% |
| 30/06/2022 | 31/12/2021 | Change | % change | |
| Net financial indebtedness | 266.7 | 263.3 | 3.4 | 1.3% |
Revenues for the first half-year period amounted to € 168.0 million, up by 20.2% compared to the same period of the previous year. Organic growth was 8.0% (€ 11.1 million). The increase in Revenues attributable to the change in the scope of consolidation2 was 12.3%, (€ 17.1 million).
EBITDA, including non-recurring costs, among which acquisition costs, amounted to € 32.6 million, up by 11.8% compared to the same period of 2021. Adjusted EBITDA3 amounted to € 37.1 million, up 20.6% compared to the same period of the previous year. The change in scope of consolidation led to a 19.3% increase in adjusted EBITDA, while organic growth was 1.3%, for the most part reflecting the investments in
2 The results for the period include the contribution of acquisitions: Forvalue S.p.A. (consolidated from 1 July 2021), CertEurope S.A.S. (consolidated from 1 November 2021) and Evalue Innovación SL (consolidated from 1 January 2022), Enhancers S.p.A. (consolidated from 1 April 2022) and Sferabit S.r.l. (consolidated from 1 May 2022). The contributions from these companies are shown below as a change in the scope of consolidation.
3 Adjusted EBITDA excludes non-recurring costs, including acquisition costs, of € 3.0 million and stock option costs of € 1.5 million.
the organisational structure in the first half of the year by the Cyber Security Division and the strengthening of the Group's central functions to serve the expected growth.
Operating Profit amounted to € 19.0 million, up by 11.5% compared to last year. Amortisation, depreciation, impairment and provisions totalled € 13.6 million (€ 12.1 million in the same period of 2021) and includes € 5.3 million of amortisation of Other intangible assets arising from allocation of the price paid in Business Combinations (€ 5.2 million in the first half of 2021), mainly relating to the Cyber Security BU and the companies Warrant Hub, Forvalue and Queryo.4
Net profit from continuing operations in the first half amounted to € 13.3 million compared to € 10.9 million in the first half of 2021. Net financial charges for the period amounted to € 2.5 million, compared to € 1.7 million in the previous year. The increase in net financial charges was impacted by higher charges on contingent considerations adjustments linked to acquisitions for € 0.7 million compared to the first half of 2021. Income taxes were € 3.1 million compared to € 4.3 million in the previous year. In the first half of 2022, non-recurring tax receivables amounted to € 3.2 million (€ 1.0 million in the previous year), attributable to redemption for a total of € 2.7 million.
The Profit (loss) from discontinued operations, amounting to € 3.3 million, includes income of the Credit Information & Management Division, which is reported as Discontinued Operations pursuant to IFRS 5. The decrease compared to the previous year (€ 7.1 million in 1H21) is mainly due to non-recurring income recorded in the first half of 2021 for € 2.9 million.
The Net profit for the first half of 2022 was € 16.6 million (of which EUR 1.6 million was minority interests), compared to € 18.0 million in the first half of 2021.
The Free Cash Flow from continuing operations amounted to € 16.1 million (€ 20.8 million in the same period of 2021) and was affected by the payment of the substitute tax for redemption for a total of € 3.7 million and higher investments compared to the same period of 2021. Free cash flow from discontinued operations was € 7.0 million (€ 8.8 million in the same period of 2021). Free Cash Flow from continuing operations in the last twelve months to 30 June 2022 was € 45.0 million.
RESULTS BY BUSINESS SEGMENT
| Adjusted condensed Income Statement by business segment |
EBITDA 1st half of MARGIN 2022 1st half of 2021 2022 |
1st half of | EBITDA MARGIN |
Change | % change | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| (in millions of Euro) | 1st half of 2021 |
Total | ||||||||
| Revenues | ||||||||||
| Digital Trust | 76.9 | 63.6% | 13.2 | 20.8% | 8.1% | 12.7% | ||||
| Cybersecurity | 36.8 | 34.6 | 2.1 | 6.2% | 6.2% | 0.0% | ||||
| Innovation & Marketing Services | 55.4 | 41.7 | 13.7 | 32.9% | 11.1% | 21.8% |
The table below shows the economic results of the Business Units, adjusted for the non-recurring items.5
4The figure does not include the amortisation that could arise from completion of the CertEurope, Evalue Innovación, Enhancers and Sferabit business combinations, the recognition of which could lead to a restatement of the balances after the date of first-time consolidation
5 After concluding binding agreements for the sale of the Credit Information & Management Division, the segment's contribution to the consolidated figures is presented as discontinued operations, and therefore excluded from the Group's business segments (comparative data were restated). Management also decided to reclassify the contribution of Forvalue S.p.A. (excluded from the scope of the sale) in the Innovation & Marketing Services business segment.
| Other segments (Parent Company) |
1.5 | 1.0 | 0.4 | 41.6% | 41.6% | 0.0% | ||
|---|---|---|---|---|---|---|---|---|
| Intra-segment | -2.5 | -1.2 | -1.3 | 104.4% | 100.7% | 3.7% | ||
| Total Revenues | 168.0 | 139.7 | 28.3 | 20.2% | 8.0% | 12.3% | ||
| Adjusted EBITDA | ||||||||
| Digital Trust | 21.1 | 27.4% | 15.6 | 24.5% | 5.5 | 35.1% | 15.5% | 19.7% |
| Cybersecurity | 3.0 | 8.2% | 3.5 | 10.1% | -0.5 | -13.5% | -13.5% | 0.0% |
| Innovation & Marketing Services | 20.0 | 36.1% | 17.1 | 41.1% | 2.9 | 16.8% | 0.0% | 16.8% |
| Other segments (Parent Company) |
-7.1 | N/A | -5.5 | N/A | -1.6 | -28.4% | -28.4% | 0.0% |
| Total adjusted EBITDA | 37.1 | 22.1% | 30.7 | 22.0% | 6.3 | 20.6% | 1.3% | 19.3% |
Digital Trust. Revenues amounted to € 76.9 million, with an increase of 20.8% compared to the first half of 2021, attributable for 8.1% to organic growth and for 12.7% to the change in perimeter, due to the consolidation from 1 November 2021 of CertEurope S.A.S., which contributed € 7.9 million to revenues for the first half. The BU's revenues continue to benefit from the demand of businesses and public administrations needing to evolve digital and dematerialisation processes.
Adjusted EBITDA amounted to € 21.1 million, an increase of 35.1%. Organic growth was 15.5%, while growth due to the change in scope amounted to 19.7%. The margin, equal to 27.4%, benefited from the organic growth in revenues and the consolidation of CertEurope S.A.S., characterised by higher margins.
Cyber Security. Segment revenues amounted to € 36.8 million, with an organic increase of 6.2% compared to the first half of 2021. The increase, which was substantially in line with expectations, was driven by the continuous growth in system integration services, by constant demand for the Legalmail Security Premium service - based on Yoroi's Sandbox Yomi technology that allows suspicious communications to be blocked and the launch of specific products and services for security related to dedicated architectures. A strategic partnership with a leading software company for financial services and the rebranding on a new suite of products for AML processes were finalised during the first half of the year. The partnership with InfoCert, for the resale of standardised cyber products and qualification of the sales force for the large enterprise market segment, was further enhanced in the first half.
Adjusted EBITDA was € 3.0 million, down from € 3.5 million in the first half of 2021 due to investments in the organisational and commercial structure made in the period against the expected development of revenues from the second half of the year. In Q2 2022, EBITDA reported a significant growth, up 18.8% compared to the same period last year.
Innovation & Marketing Services. Revenues amounted to € 55.4 million, an increase compared with the first half of 2021 of 32.9%, 11.1% of which attributable to organic growth and the remainder to changes in scope (21.8%), due to the consolidation of Evalue Innovación SL from 1 January 2022, of Enhancers S.p.A. from 1 April 2022 and of Forvalue S.p.A. from 1 July 2021. The BU increased the volume of business generated through an increase in the number of files managed, the acquisition of new clients and access to new markets. This growth was driven by the good performance of the acquired companies, Evalue and Enhancers, by activities relating to European Funding and Training, as well as by the internationalisation and Digital Marketing services.
Adjusted EBITDA amounted to € 20.0 million, an increase of 16.8% compared to EBITDA in the first half of 2021, entirely attributable to the change in scope of consolidation.
SUMMARY OF SECOND QUARTER 2022 RESULTS
The Group achieved Revenues of € 89.9 million. EBITDA amounted to € 21.0 million and adjusted EBITDA was € 22.6 million, representing 25.1% of Revenues. Operating profit and net profit from continuing operations amounted to € 14.1 million and € 10.9 million respectively, representing 15.7% and 12.1% of revenues.
| Summary income statement data (In millions of Euro) |
Q2 2022 | Q2 2021 | Change | Change % |
|---|---|---|---|---|
| Revenues | 89.9 | 75.6 | 14.2 | 18.8% |
| EBITDA | 21.0 | 18.1 | 2.9 | 16.2% |
| Adjusted EBITDA | 22.6 | 19.1 | 3.5 | 18.2% |
| Operating profit (loss) | 14.1 | 12.1 | 2.0 | 16.6% |
| Adjusted operating profit (loss) | 18.3 | 15.7 | 2.6 | 16.6% |
| Net profit from continuing operations | 10.9 | 7.3 | 3.6 | 48.5% |
| Adjusted net profit from continuing operations | 12.1 | 9.8 | 2.3 | 23.1% |
| Profit (loss) from discontinued operations | 1.7 | 5.2 | -3.5 | -67.4% |
| Net profit | 12.6 | 12.5 | 0.1 | 0.6% |
| Free cash flow | -1.6 | 4.9 | -6.5 | -133.5% |
| Free Cash Flow from continuing operations | -4.3 | 1.0 | -5.3 | -533.9% |
Revenues increased by 18.8%, compared to the second quarter of 2021, and adjusted EBITDA by 18.2%. Operating profit rose by 16.6% and Net profit from continuing operations by 48.5%.
GROUP NET FINANCIAL INDEBTEDNESS
Net Financial Indebtedness amounted to €266.7 million at the end of the first half of the year, an increase of € 3.4 million compared to 31 December 2021.
The change in net financial indebtedness in the first half of 2022 compared to the first half of 2021 and the last 12 months to 30 June 2022 is detailed below:
| In millions of Euro | 1st half of 2022 | 1st half of 2021 | Last 12 months to 30 June 2022 |
|---|---|---|---|
| Net financial indebtedness - opening balance | 263.3 | 92.0 | 205.3 |
| Free Cash Flow from continuing operations | -16.1 | -20.8 | -45.0 |
| Free Cash Flow from discontinued operations | -7.0 | -8.8 | -4.8 |
| Net financial (income) charges | 2.7 | 1.8 | 4.1 |
| Approved dividends | 19.4 | 12.6 | 19.4 |
| New leases and adjustments to existing contracts | 17.4 | 1.6 | 21.7 |
| Acquisitions | 60.8 | 110.9 | 143.2 |
| Adjustment of Put options | 0.6 | 10.7 | -4.8 |
|---|---|---|---|
| Capital increases of minority interests | -70.0 | 0.0 | -70.0 |
| Purchase of treasury shares | 0.0 | 6.0 | 3.3 |
| OCI derivatives | -4.9 | -0.3 | -5.7 |
| Other residual | 0.6 | -0.2 | 0.1 |
| Net financial indebtedness - closing balance | 266.7 | 205.3 | 266.7 |
The Free Cash Flow from continuing operations generated in the first half amounted to € 16.1 million (€ 23.1 million of "net cash generated from operating activities", net of € 7.0 million absorbed by investments in "property, plant and equipment and intangible assets), down compared to the first half of 2021 (€ 20.8 million), mainly due to higher investments and the payment ofsubstitute tax forredemption for € 3.7 million. Cash generated from management of the working capital in any event remained positive.
| Amounts in thousands of Euro | 1st half of 2022 | 1st half of 2021 | Last 12 months to 30 June 2022 |
|---|---|---|---|
| Cash and cash equivalents generated by continuing operations | 37.1 | 36.7 | 77.0 |
| Income taxes paid on continuing operations | -14.0 | -12.6 | -19.4 |
| Net cash and cash equivalents generated by continuing operations | 23.1 | 24.1 | 57.6 |
| Investments in property, plant and equipment and intangible assets for continuing operations |
-7.0 | -3.2 | -12.6 |
| Free Cash Flow from continuing operations | 16.1 | 20.8 | 45.0 |
"Lease contracts Adjustments" led to an increase in debt of € 17.4 million, mainly due to the signing of the leasing contract for the new operating headquarter in Milan, aimed at bringing together the offices of the Group companies present in the area.
The item "Adjustment of Put options" reflects the revaluation for € 0.6 million due to the passage of time as well as the change in the discount rate.
The impact of "Acquisitions on Net financial Debt", at the date of respective closing, are detailed in the following table.
| Details of NFI impacts for Acquisitions Amounts in millions of Euro | |||
|---|---|---|---|
| Evalue Innovación SL | 33.9 | ||
| Enhancers S.p.A. | 21.3 | ||
| Sferabit S.r.l. | 3.1 | ||
| Nomesia S.r.l. | 0.9 | ||
| Purchase of minority interests in subsidiaries | 0.4 | ||
| Investments in equity-accounted shareholdings | 1.0 | ||
| Investments in other shareholdings6 | 0.1 | ||
| Total | 60.8 |
The "Capital increases by minority shareholders" refer to the cash payment related to the entry of Bregal Milestone into the share capital of InfoCert S.p.A., following which Tinexta S.p.A. shareholding decreased from 100% to 88.17%.
FORESEEABLE EVOLUTION FOR OPERATIONS
On the basis of the results of the first six months of the year (net of discontinued operations), the Board of Directors confirms for the current year a growth in Revenues6 of between 21% and 23% and a growth of adjusted EBITDA of between 25% and 27%. The growth forecasts include the contribution of acquisitions and exclude companies for which disposal has been completed. On a like-for-like basis, 2022 Revenues are expected to grow between 10% and 12%, with adjusted EBITDA growing by between 8% and 10% compared to 2021. The adjusted NFP/EBITDA ratio is expected to be around 0.6x at the end of 2022, including the acquisition of Plannet and about € 230 million reduction of the NFP as a result of the the agreement for the sale of the Credit Information & Management division. The transaction also provides for a capital gain of more than EUR 80 million.
The macroeconomic context, in addition to the still uncertain health situation, continues to be characterised by difficulties in the procurement of raw materials, by inflationary pressures and by the protracted tensions between Russia and Ukraine. The above-mentioned business outlook does not include potential impact from developments in the conflict and the macroeconomic context. At present, these events have had no significant effect on the Group's operating performance. The uncertainty in the macroeconomic scenario is at least partially offset by the unstoppable digitisation process, which represents an important growth and development opportunity for the Group. Digital identity, cyber security, digital marketing and consultancy will actually represent key processes of the economy in the coming years.
The targets announced do not include the contribution of further external growth that the Group, in line with the outlined strategy, continues to pursue, supported by the solid equity and financial position and by the significant operating cash flow generation.
* * * * *
The manager in charge of drafting the corporate accounting documents, Nicola Di Liello, declares, pursuant to Art. 154-bis, paragraph 2 of the Consolidated Finance Act, that the information contained in this press release corresponds to the documentary findings, books and accounting records.
* * * * *
The Interim Financial Report at 30 June 2022 will be made available to the public within the legal terms, at the company's registered office – Piazza Sallustio 9, 00187 Rome, on the authorised storage mechanism eMarket STORAGE () and on the Company's website: http://www.tinexta.com/en\_GB/bilanci-relazioni-presentazioni.
6 The comparative figures for 2021 have been restated due to the reclassification of the Credit Information & Management Division's discontinued operations as a result of the conclusion of binding agreements for the sale. The restated Revenues for 2021 amount to € 301.5 million, with the restated Adjusted EBITDA totalling € 76.5 million.
CONFERENCE CALL
The Company will present its Consolidated Results as at 30 June 2022 in a Conference Call to be held at 3pm (CEST) today. Investors and analysts interested in participating are invited to call the following numbers: Italy: +39 02 362013011; UK: +44 121 281 8003; USA: +1 718 705 8794; 1 855 2656959 (toll-free). For further information please contact the Investor Relations Office.
* * * * *
Attached: Consolidated Income Statement, Consolidated Statement of Financial Position, Group Net Financial Indebtedness and Consolidated Statement of Cash Flows at 30 June 2022.
TINEXTA S.p.A.
Tinexta, listed on the Euronext Star Milan, reported the following Consolidated Results at 31 December 2021: Revenues of € 375.4 million, EBITDA of € 93.0 million and Net Profit of € 39.6 million. Tinexta Group is one of Italy's leading operators in its four business areas: Digital Trust, Cyber Security, Credit Information & Management, Innovation & Marketing Services. The Digital Trust Business Unit provides, through the companies InfoCert S.p.A., Visura S.p.A., Sixtema S.p.A., the Spanish company Camerfirma S.A. and the French company CertEurope S.a.S., products and services for digitisation: ature, digital identity, customer onboarding, electronic invoicing and certified e-mail (PEC) for large companies, banks, insurance and financial companies, SMEs, associations and professionals. The Cyber Security Business Unit operates through the companies Yoroi, Swascan and Corvallis and constitutes one of the national poles in the research and provision of the most advanced solutions for data protection and security. In the Credit Information & Management Business Unit, Innolva S.p.A. and its subsidiaries offer services to support decision-making processes (Chamber of Commerce and real estate information, aggregated reports, synthetic ratings, decision-making models, credit assessment and recovery) while RE Valuta S.p.A. offers real estate services (appraisals and evaluations). In the Innovation & Marketing Services Business Unit, Warrant Hub S.p.A. is a leader in consultancy in grants, loans and tax relief as well as industrial innovation, while Co.Mark S.p.A. provides Temporary Export Management consultancy to SMEs to support them in their commercial expansion. At 31 December 2021, the Group had 2,393 employees.
| CONTACTS | ||
|---|---|---|
| Chief Investor Relations Officer Josef Mastragostino Chief External Relations & Communication Officer Alessandra Ruzzu [email protected] Press Office Carla Piro Mander |
Media Advisor Barabino & Partners S.p.A. Foro Buonaparte, 22 - 20121 Milan Tel.: +39 02 7202 3535 Stefania Bassi: +39 335 6282 667 [email protected] |
Specialist Intermonte SIM S.p.A. Corso V. Emanuele II, 9 - 20122 Milan Tel.: +39 02 771151 |
| Tel. +39 06 42 01 26 31 [email protected] |
Website: www.tinexta.com, Stock ticker: TNXT, ISIN Code IT0005037210
Consolidated Statement of Profit or Loss and Other Comprehensive Income
| Six months ended 30 June | ||
|---|---|---|
| Amounts in thousands of Euro | 2022 | 2021 Restated7 |
| Revenues | 168,001 | 139,741 |
| - of which from related parties | 173 | 96 |
| Costs of raw materials | 6,413 | 5,982 |
| Service costs | 53,658 | 41,473 |
| - of which from related parties | 1,459 | 765 |
| - of which non-recurring | 2,846 | 770 |
| Personnel costs | 71,750 | 60,165 |
| - of which non-recurring | 128 | 0 |
| Contract costs | 2,472 | 2,085 |
| - of which from related parties | 2 | 0 |
| Other operating costs | 1,082 | 852 |
| - of which from related parties | 2 | 1 |
| Amortisation and depreciation | 11,810 | 11,279 |
| Provisions | 701 | 444 |
| Impairment | 1,068 | 380 |
| Total Costs | 148,956 | 122,660 |
| OPERATING PROFIT (LOSS) | 19,045 | 17,081 |
| Financial income | 78 | 55 |
| Financial charges | 2,631 | 1,760 |
| - of which from related parties | 34 | 26 |
| Net financial income (charges) | -2,552 | -1,705 |
| Share of profit of equity-accounted investments, net of tax | -30 | -181 |
| PROFIT BEFORE TAX | 16,463 | 15,195 |
| Income taxes | 3,135 | 4,293 |
| - of which non-recurring | -3,240 | -1,045 |
| NET PROFIT FROM CONTINUING OPERATIONS | 13,329 | 10,902 |
| Profit (loss) from discontinued operations, net of tax | 3,270 | 7,076 |
| - of which from related parties | 387 | -263 |
| - of which non-recurring | 0 | 2,927 |
| NET PROFIT | 16,599 | 17,979 |
7The comparative figures for the first quarter of 2021 have been recalculated in relation to the completion in the fourth quarter of 2021 of the activities to identify the fair values of the assets and liabilities of Swascan S.r.l., which is consolidated on a line-by-line basis from 1 October 2020, and Euroquality S.A.S., which is consolidated on a line-by-line basis from 31 December 2020, and of Corvallis S.r.l., Yoroi S.r.l and Queryo Advance S.r.l., consolidated on a line-by-line basis from 1 January 2021. The comparative figures for the first half of 2021 have been restated due to the reclassification of the Credit Information & Management division's discontinued operations as a result of the conclusion of binding agreements for the sale.
| Amounts in thousands of Euro | 2022 | 2021 Restated |
|---|---|---|
| Other components of the comprehensive income statement | ||
| Components that will never be reclassified to profit or loss | ||
| Actuarial gains (losses) of employee benefit provisions | -34 | 0 |
| Tax effect | 9 | 0 |
| Total components that will never be reclassified to profit or loss | -26 | 0 |
| Components that are or may be later reclassified to profit or loss: | ||
| Exchange rate differences from the translation of foreign financial statements | 64 | -17 |
| Profits (losses) from measurement at fair value of derivative financial instruments | 4,854 | 252 |
| Equity-accounted investments - share of Other comprehensive income | 12 | -15 |
| Tax effect | -1,165 | -60 |
| Total components that are or may be later reclassified to profit or loss | 3,765 | 160 |
| Total other components of comprehensive income, net of tax | 3,739 | 160 |
| - of which relating to discontinued operations | 0 | 20 |
| Total comprehensive income for the period | 20,338 | 18,139 |
| Net profit attributable to: | ||
| Group | 15,015 | 17,698 |
| Minority interests | 1,584 | 281 |
| Total comprehensive income for the period attributable to: | ||
| Group | 18,716 | 17,869 |
| Minority interests | 1,622 | 270 |
| Earnings per share | ||
| Basic earnings per share (€) | 0.33 | 0.38 |
| - of which from continuing operations | 0.26 | 0.23 |
| - of which from discontinued operations | 0.06 | 0.15 |
| Diluted earnings per share (€) | 0.32 | 0.38 |
| - of which from continuing operations | 0.26 | 0.23 |
| - of which from discontinued operations | 0.06 | 0.15 |
| Amounts in thousands of Euro | 30/06/2022 | 31/12/2021 Restated8 |
|---|---|---|
| ASSETS | ||
| Property, plant and equipment | 36,320 | 25,172 |
| Intangible assets and goodwill | 465,783 | 542,751 |
| Investment property | 0 | 698 |
| Equity-accounted investments | 7,180 | 6,630 |
| Other equity investments | 260 | 149 |
| Other financial assets, excluding derivative financial instruments | 1,920 | 736 |
| - of which from related parties | 137 | 38 |
| Derivative financial instruments | 4,834 | 112 |
| Deferred tax assets | 12,811 | 8,843 |
| Trade and other receivables | 2,223 | 3,516 |
| Contract cost assets | 6,131 | 6,669 |
| NON-CURRENT ASSETS | 537,462 | 595,274 |
| Inventories | 1,149 | 1,342 |
| Other financial assets, excluding derivative financial instruments | 3,360 | 4,144 |
| - of which from related parties | 886 | 290 |
| Derivative financial instruments | 7 | 0 |
| Current tax assets | 3,039 | 2,666 |
| Trade and other receivables | 100,578 | 119,470 |
| - of which from related parties | 582 | 748 |
| Contract assets | 21,501 | 16,880 |
| - of which from related parties | 7 | 1 |
| Contract cost assets | 1,463 | 469 |
| Cash and cash equivalents | 79,058 | 68,253 |
| - of which from related parties | 3,271 | 3,325 |
| Assets held for sale | 160,345 | 0 |
| - of which from related parties | 1,250 | 0 |
| CURRENT ASSETS | 370,499 | 213,224 |
| TOTAL ASSETS | 907,961 | 808,498 |
8 The comparative figures at 31 December 2021 have been restated in connection with the completion in the second quarter of 2022 of the identification of the fair values of the assets and liabilities of Forvalue S.p.A consolidated on a line-by-line basis as from 1 July 2021 and Financial Consulting LAB S.r.l. consolidated on a line-by-line basis as from 1 October 2021.
| Amounts in thousands of Euro | 30/06/2022 | 31/12/2021 Restated |
|---|---|---|
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||
| Share capital | 47,207 | 47,207 |
| Treasury shares | -19,327 | -19,327 |
| Share premium reserve | 55,439 | 55,439 |
| Other reserves | 173,986 | 112,929 |
| Shareholders' equity attributable to the Group | 257,304 | 196,247 |
| Minority interests | 57,103 | 46,867 |
| TOTAL SHAREHOLDERS' EQUITY | 314,407 | 243,115 |
| LIABILITIES | ||
| Provisions | 3,155 | 3,857 |
| Employee benefits | 18,923 | 19,738 |
| Financial liabilities, excluding derivative financial instruments | 253,969 | 281,517 |
| - of which from related parties | 2,839 | 3,718 |
| Derivative financial instruments | 36 | 170 |
| Deferred tax liabilities | 31,134 | 35,023 |
| Contract liabilities | 17,934 | 17,423 |
| - of which from related parties | 84 | 48 |
| Deferred income | 61 | 125 |
| NON-CURRENT LIABILITIES | 325,212 | 357,852 |
| Provisions | 597 | 566 |
| Employee benefits | 161 | 88 |
| Financial liabilities, excluding derivative financial instruments | 100,040 | 54,118 |
| - of which from related parties | 1,367 | 1,387 |
| Derivative financial instruments | 2 | 0 |
| Trade and other payables | 78,280 | 89,689 |
| - of which from related parties | 471 | 458 |
| Contract liabilities | 55,884 | 57,102 |
| - of which from related parties | 92 | 85 |
| Deferred income | 1,334 | 2,409 |
| Current tax liabilities | 1,799 | 3,559 |
| Liabilities directly associated with assets held for sale | 30,244 | 0 |
| CURRENT LIABILITIES | 268,341 | 207,531 |
| TOTAL LIABILITIES | 593,553 | 565,384 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES | 907,961 | 808,498 |
Group Net Financial Indebtedness
| Amounts in thousands of Euro | 30/06/2022 | 31/12/2021 | Δ | % Δ | 30/06/2021 | Δ | % Δ |
|---|---|---|---|---|---|---|---|
| A Cash | 82,032 | 68,253 | 13,779 | 20.2% | 95,002 | -12,970 | -13.7% |
| B Cash equivalents | 0 | 0 | 0 | N/A | 0 | 0 | N/A |
| C Other current financial assets | 4,066 | 4,144 | -78 | -1.9% | 2,850 | 1,215 | 42.6% |
| D Liquidity (A+B+C) | 86,098 | 72,397 | 13,701 | 18.9% | 97,852 | -11,755 | -12.0% |
| E Current financial debt | 42,602 | 7,811 | 34,791 | 445.4% | 13,685 | 28,917 | 211.3% |
| F Current portion of non-current financial debt | 59,009 | 46,307 | 12,702 | 27.4% | 41,003 | 18,006 | 43.9% |
| G Current financial indebtedness (E+F) | 101,611 | 54,118 | 47,493 | 87.8% | 54,688 | 46,923 | 85.8% |
| H Net current financial indebtedness (G-D) | 15,513 | -18,279 | 33,792 | -184.9% | -43,164 | 58,677 | -135.9% |
| I Non-current financial debt | 251,230 | 281,575 | -30,345 | -10.8% | 248,491 | 2,738 | 1.1% |
| J Debt instruments | 0 | 0 | 0 | N/A | 0 | 0 | N/A |
| K Non-current trade and other payables | 0 | 0 | 0 | N/A | 0 | 0 | N/A |
| L Non-current financial indebtedness (I+J+K) | 251,230 | 281,575 | -30,345 | -10.8% | 248,491 | 2,738 | 1.1% |
| M Total financial indebtedness (H+L) (*) | 266,743 | 263,296 | 3,446 | 1.3% | 205,327 | 61,416 | 29.9% |
| N Other non-current financial assets | 1,970 | 736 | 1,235 | 167.8% | 909 | 1,062 | 116.8% |
(*) Total financial indebtedness calculated in accordance with the provisions of CONSOB Communication no. 6064293 of 28 July 2006 and in compliance with the Warning Notice no. 5/21 issued by CONSOB on 29 April 2021 with reference to the Guideline ESMA32-382-1138 dated 4 March 2021.
Consolidated Statement of Cash Flows
| Amounts in thousands in Euro | six-month period ended 30 June | ||
|---|---|---|---|
| 2022 | 2021 | ||
| Restated9 | |||
| Cash flows from operations | |||
| Net profit | 16,599 | 17,979 | |
| Adjustments for: - Amortisation and depreciation |
15,686 | 16,437 | |
| - Impairment (Revaluations) | 1,282 | 670 | |
| - Provisions | 701 | 444 | |
| - Provisions for Stock Options | 1,293 | 903 | |
| - Net financial charges | 2,668 | 1,794 | |
| - of which from related parties |
34 | 26 | |
| - Share of profit of equity-accounted investments | 59 | 180 | |
| - Income taxes | 4,436 | 2,767 | |
| Changes in: | |||
| - Inventories | 193 | 85 | |
| - Contract cost assets | -766 | -362 | |
| - of which from related parties |
0 | 0 | |
| - Trade and other receivables and Contract assets | 1,669 | 5,925 | |
| - of which from related parties |
-150 | -390 | |
| - Trade and other payables | -49 | -695 | |
| - of which from related parties |
13 | 88 | |
| - Provisions and employee benefits | 1,691 | -23 | |
| - Contract liabilities and deferred income, including public contributions | 3,169 | 4,293 | |
| - of which from related parties |
43 | 115 | |
| Cash and cash equivalents generated by operations | 48,631 | 50,396 | |
| Income taxes paid | -15,423 | -13,990 | |
| Net cash and cash equivalents generated by operations | 33,208 | 36,405 | |
| of which discontinued operations | 10,122 | 12,319 | |
| Cash flows from investments Interest collected |
8 | 7 | |
| Dividends collected | 652 | 0 | |
| Collections from sale or repayment of financial assets | 948 | 4,868 | |
| Investments in equity-accounted shareholdings | -1,006 | -566 | |
| Investments in property, plant and equipment | -1,716 | -662 | |
| Investments in other financial assets | -2,628 | -72 | |
| - of which from related parties |
-886 | 0 | |
| Investments in intangible assets | -8,345 | -6,081 | |
| Increases in the scope of consolidation, net of liquidity acquired | -36,344 | -47,426 | |
| Decreases in the scope of consolidation, net of liquidity sold | 0 | 0 | |
| Net cash and cash equivalents generated/(absorbed) by investments | -48,431 | -49,932 | |
| of which discontinued operations | -3,123 | -3,469 | |
| Cash flows from financing | |||
| Purchase of minority interests in subsidiaries | -1,599 | -3 | |
| Interest paid | -1,161 | -1,177 | |
| - of which from related parties |
-49 | -31 | |
| MLT bank loans taken out | 9,990 | 62,605 | |
| Repayment of MLT bank loans | -23,489 | -13,088 | |
| Repayment of price deferment liabilities on acquisitions of equity investments - of which from related parties |
-1,137 -675 |
-2,602 -665 |
|
| Repayment of contingent consideration liabilities | -1,685 | -1,616 | |
| Change in other current bank payables | -92 | -7,384 | |
| Change in other financial payables | 92 | 296 | |
| Repayment of lease liabilities | -3,033 | -2,813 | |
| - of which from related parties |
-370 | -293 | |
| Purchase of treasury shares | 0 | -5,994 | |
| Capital increases (decreases) – subsidiaries | 70,000 | -91 | |
| Dividends paid | -18,883 | -12,416 | |
| Net cash and cash equivalents generated/(absorbed) by financing | 29,003 | 15,716 | |
| of which discontinued operations | -6,631 | -1,405 | |
| Net increase (decrease) in cash and cash equivalents | 13,779 | 2,189 | |
| Cash and cash equivalents at 1 January | 68,253 | 92,813 | |
| Cash and cash equivalents at 30 June | 82,032 | 95,002 |
9The comparative figures for the first quarter of 2021 have been recalculated in relation to the completion in the fourth quarter of 2021 of the activities to identify the fair values of the assets and liabilities of Swascan S.r.l., which is consolidated on a line-by-line basis from 1 October 2020, and Euroquality S.A.S., which is consolidated on a line-by-line basis from 31 December 2020, and of Corvallis S.r.l., Yoroi S.r.l and Queryo Advance S.r.l., consolidated on a line-by-line basis from 1 January 2021. The comparative figures for the first half of 2021 have been restated due to the reclassification of the Credit Information & Management division's discontinued operations as a result of the conclusion of binding agreements for the sale.