Solteq Plc Financial Statement Bulletin 1.1.-31.12.2016 (IFRS)

HELSINKI, Feb 17, 2017 /PRNewswire/ --

- Solteq's strategy is built on the omnichannel commerce, growth and internationalization.

 - We sharpened our solution and service portfolio and gained a foothold in the Swedish market by the M&A activities during the financial year.

- Revenue totaled 63,0 million euros (54,2 million euros).

- Operating profit was 6 444 thousand euros (1 288 thousand euros).

- The adjusted operating profit was 3 114 thousand euros (2 990 thousand euros).

- Solteq Group's equity ratio was 33,5 % (24,4 %).

- Earnings per share was 0,26 euros (0,01 euros).

- Board proposes to the Annual General Meeting that a dividend of EUR 0,05 per share will be paid for each share.

Key figures and ratios

Repe Harmanen, CEO of Solteq: Year of structural changes took Solteq forward

The past financial year saw several internal and external changes. In some of them, we succeeded, in some others, work was still left for 2017. On the whole, Solteq took major strategic steps forward.

Last year, our growth, + 16%, was both organic and inorganic. We have strategic growth areas in which annual organic growth alone is almost 20%, but we also have areas in which both the revenue and operating profit decreased. In the last quarter, we launched measures to improve profitability in these areas.

During the year, a number of structural changes took place in the Finnish field of retail and commerce business and players were both merged and left the field. These changes strengthen our strategic vision of growing role for small and medium-sized customers and the importance of internationalization. Currently, a little less than 20% of our business comes from international customers.

In 2016, we actively screened potential company acquisition targets in the Nordics. The M&A activities that we took, e.g. divestment of MainIoT Oy, purchase of Aponsa AB in Sweden, purchase of Pardco Group Oy in Finland and establishment of a Magento competence center, were important both geographically and in view of our solution offering. We also carried out negotiations on a major international M&A-deal but decided not to proceed in them due to the risks involved.

We will also continue measures and surveys to establish the most effective ways to utilise our good financial and capital position. One example is that the Board of Directors has proposed to the Annual General Meeting that a dividend of €0.05 per share be distributed this year.

Employees' wellbeing creates good business

Our employees are at the core of our business. They are humane, top-class experts whose contribution is an important part of what we create for our clients.

In the past year, we invested in the wellbeing of our employees in many different ways. The Solteq Academy, the definition of the cornerstones of our corporate culture and the decision to use the extra hours resulting from the government's Competitiveness Pact on physical activities are examples of investments that promote the wellness and wellbeing of current and future Solteq employees.

As our business operations expand, new markets and solutions offer our employees opportunities to develop their career paths in Finland and abroad.

Always one step ahead of – for the benefit of the client

Exceeding the expectations of our clients has become an important goal for us. Our task is to provide a winning offering in omnichannel business for small, mid-market and large clients and help them succeed - we have to be one step ahead of others. Today, we already help our clients create better customer experiences in more than 30 countries, and this work will continue.

New business and service models are the cornerstones of our development. Our goal is that the majority of our business will be pure service business in the future. We believe that this will be the way for us to succeed better with our small and mid-market industrial, wholesale and retail clients in Finland, the Nordics and globally.

We extend our thanks to our clients and stakeholder groups for last year's successes, challenges tackled together, new thoughts and good collaboration. Together, we will make 2017 an even better year.

Guidance on Group outlook

Solteq Group's adjusted operating profit is expected to grow compared to financial year 2016.

The company has decided to find out, whether the voluntary adoption of the new IFRS 15 ("Revenue from Contracts with Customers")- standard is possible already in the beginning of the year 2017. Due to the uncertain decision about the adoption of the new standard, the company publishes the instructions on the development trend of the revenue earliest with the first interim report 2017.

Online-briefing for investors and media February 17th, 2016 will not be broadcasted

Media and investor briefing that was earlier announced to be broadcasted on Periscope and Facebook live video for the announcement of financial performance of the financial year 2016 February 17th, will not be broadcasted.

Attachments

Solteq Plc. Financial Statements Bulletin 2016

Further information

Antti Kärkkäinen, CFO

Tel. +358-40-8444-393

E-mail antti.karkkainen@solteq.com        

DISTRIBUTION

NASDAQ OMX Helsinki

Key media

www.solteq.com

Solteq in brief

Solteq is an expert in digital commerce. We deliver comprehensive solutions for digital commerce under one roof: from back-office processes to customer experience ­­– from supply chain management to online marketing. We have the passion to deliver the unexpected – in a fast-changing world our customers need a partner who can deliver today what they need tomorrow. We employ ca. 500 experts in three different countries and we make deliveries to Europe, North America, Asia and Australia.

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