Softline Holding plc
("NOVENTIQ" or the "Company")
Noventiq publishes additional supplemental financial tables to highlight discontinued operations.
8 December 2022, London, UK - Noventiq [Softline Holding PLC / SFTL, US83407L2079] (Noventiq, the Group, or the Company), the Cyprus registered global digital transformation and cybersecurity solutions and services provider headquartered in London and operating in almost 60 countries, publishes additional supplemental financial tables to highlight discontinued operations.
Following the announcement on 29 November 2022 of the Q2/H1 FY2022 trading update, Noventiq provides the following supplemental financial tables to highlight the discontinued operations from the sale of the Russian business.
Financial tables
Softline Holding Limited - Consolidated statement of profit and loss and other comprehensive income - IFRS
| kUSD to 30 September | 6m FY2022
| 6m FY2021 |
| Continuing operations |
|
|
| Turnover | 691,089 | 522,542 |
| Revenue | 635,881 | 468,629 |
| Cost of sales | (540,080) | (407,870) |
| Gross profit | 95,801 | 60,759 |
|
|
|
|
| Selling and Distribution | (74,025) | (41,061) |
| General and Administrative | (21,121) | (12,752) |
| Other income / (expenses) | 72 | (138) |
| Operating profit | 727 | 6,808 |
| Foreign exchange loss | (5,384) | (545) |
| Change in fair value of financial instruments, net | - | - |
| Finance income | 1,692 | 452 |
| Finance expenses | (6,709) | (3,582) |
| Profit / (loss) before tax | (9,674) | 3,133 |
| Income tax expense | (696) | (345) |
| Net profit / (loss) for the year | (10,370) | 2,788 |
|
|
|
|
| Discontinued operations |
|
|
| Profit after tax for the year from Discontinued operations | 2,570 | 955 |
|
|
|
|
| Translation difference | (29,154) | (5,866) |
| Other comprehensive income / (loss) | (19,973) | 9,783 |
| |
|
|
| Discontinued operations |
|
|
| Total comprehensive loss from Discontinued operations | (11,548) | (3,472) |
|
|
|
|
| Total comprehensive income / (loss) | (68,475) | 4,188 |
|
|
|
|
The results of Disposal Group:
| kUSD to 30 September | 6m FY2022 Discontinued operations
| 6m FY2021 Discontinued operations
|
|
|
|
|
| Turnover | 422,163 | 453,934 |
| Revenue | 323,532 | 399,755 |
| Cost of sales | (245,646) | (331,625) |
| Gross profit | 77,886 | 68,130 |
|
|
|
|
| Selling and Distribution | (80,146) | (49,324) |
| General and Administrative | (17,334) | (10,154) |
| Other income / (expenses) | 20,413 | (209) |
| Operating profit | 819 | 8,443 |
| Foreign exchange income / (loss) | 6,435 | (821) |
| Change in fair value of financial instruments, net | 94 | - |
| Finance income | 2,082 | 572 |
| Finance expenses | (7,307) | (6,295) |
| Profit before tax | 2,123 | 1,899 |
| Income tax expense | 447 | (944) |
| Net profit for the year | 2,570 | 955 |
Softline Holding Limited - Consolidated statement of financial position - IFRS
| kUSD | unaudited | unaudited |
| Group | 30 September 2022 | 30 September 2021 |
| Goodwill | 122,943 | 75,685 |
| Deffered tax assets | 7,914 | 9,492 |
| Intangibles | 47,272 | 57,215 |
| Equipment, net | 6,086 | 11,714 |
| Lease assets rights | 4,450 | 12,044 |
| Long term loans issued | 7,183 | 3,039 |
| Other non-current assets | 17,397 | 97,945 |
| Non-current assets | 213,245 | 267,134 |
|
|
|
|
| Advances issued | 5,082 | 18,497 |
| Other current assets | 16,200 | 9,252 |
| Income tax receivable | 5,356 | 7,210 |
| Inventory, net | 13,696 | 37,016 |
| Other receivables | 41,186 | 44,173 |
| Trade receivables, net | 209,122 | 248,104 |
| Loans issued | 1,154 | 5,920 |
| Cash and cash equivalents | 221,625 | 57,646 |
| Assets held for sale | 462,550 | |
| Current assets | 975,971 | 427,818 |
| | | |
| TOTAL ASSETS | 1,189,216 | 694,952 |
| kUSD | unaudited | unaudited |
| Group | 30 September 2022 | 30 September 2021 |
| Share capital | 44 | 30 |
| Retained earnings | 65,474 | 14,678 |
| Owner's contribution | 14,259 | 14,260 |
| Other components of equity | 383,948 | (868) |
| Treasury shares | (7,198) | - |
| Other comprehensive income | (98,701) | 37,296 |
| Total equity and assets attributable to owners | 357,826 | 65,396 |
| Non-controlling interest | (6,940) | (6,342) |
| Total equity | 350,886 | 59,054 |
|
| | |
| Deferred Tax liabilities | 3,795 | 3,637 |
| Long-term contingent liabilities | 25,938 | 6,767 |
| Long-term deferred payments for acquisitions | 9,285 | 9,241 |
| Long-term tax payable | 786 | 920 |
| Long-term borrowings - third parties | 9,554 | 88,239 |
| Long-term obligations under finance leases | 2,724 | 9,860 |
| Other long term creditors | 5,813 | 801 |
| Non-current liabilities | 57,895 | 119,465 |
|
| | |
| Short-term contingent liabilities | 20,616 | 5,098 |
| Short-term deferred payments for acquisitions | 18,525 | 15,736 |
| Advances from customers | 17,837 | 43,518 |
| Income tax payable | 2,509 | 3,494 |
| Other payables | 56,359 | 49,529 |
| Trade payables, including | 167,643 | 225,996 |
| Short-term obligations under finance leases | 2,925 | 4,923 |
| Short-term borrowings - third parties | 47,414 | 168,139 |
| Liabilities directly associated with the assets held for sale | 446,607 | - |
| Current liabilities | 780,435 | 516,433 |
| | | |
| TOTAL EQUITY AND LIABILITIES | 1,189,216 | 694,952 |
Softline Holding Limited - Net assets of Disposal Group - IFRS
| kUSD | unaudited |
| The major classes of assets and liabilities of Disposal Group | 30 September 2022 |
| Goodwill and other intangibles | 64,320 |
| Equipment, net | 10,479 |
| Lease assets rights | 15,249 |
| Other non-current assets | 30,940 |
| Advances issued and other current assets | 97,001 |
| Software licenses and other inventory | 42,544 |
| Trade receivables, net | 120,382 |
| Cash and cash equivalents | 81,635 |
| | |
| Assets held for sale | 462,550 |
|
| |
| Other long term creditors | 9,795 |
| Liabilities for acquisitions | 10,809 |
| Advances received from customers | 63,260 |
| Other payables | 46,301 |
| Borrowings | 184,150 |
| Trade accounts payable | 132,292 |
| Liabilities directly associated with assets held for sale | 446,607 |
| | |
| Net assets directly associated with Disposal Group | 15,943 |
Softline Holding Limited - Consolidated statement of cash flow - IFRS
| kUSD | 6m2022 | 6m2021 |
| Profit before income tax from continuing operations | (9,674) | 5,032 |
| Adjustments to reconcile net profit to net cash flows: | | |
| Depreciation and amortization | 5,554 | 9,778 |
| Finance expenses, net | 5,017 | 8,508 |
| Foreign exchange loss | 5,385 | 1,367 |
| Other non-cash transactions | 1,968 | 401 |
| Operating profit before working capital changes | 8,250 | 25,086 |
| Working capital adjustments: | | |
| (Increase) / Decrease in software licenses and other inventory | 5,451 | (11,670) |
| (Increase) / Decrease in advances issued, trade and other receivables | (40,454) | (56,858) |
| Increase / (Decrease) in contract liabilities, trade and other payables | (37,255) | (16,056) |
| Cash generated from / (used in) operations related to continuing operations | (64,008) | (59,498) |
| Income tax paid | (168) | (975) |
| Net cash generated from / (used in) operating activities related to continuing operations | (64,176) | (60,473) |
| Cash flows from investing activities | | |
| Purchase and development of non-current assets | (4,181) | (13,609) |
| Acquisition and disposal of subsidiaries | (47,429) | (27,536) |
| Treasury shares buy-back | (4,420) | - |
| Sale of Crayon shares | 42,268 | 35,650 |
| Loans issued and collected, net | 522 | (4,930) |
| Net cash generated from / (used in) investing activities related to continuing operations | (13,240) | (10,425) |
| Cash flows from financing activities |
|
|
| Overdrafts and borrowings received and repaid, net | 18,601 | 44,236 |
| Redemption of shares | - | (2,476) |
| Dividends paid | (619) | - |
| Net cash generated from / (used in) financing activities related to continuing operations | 17,982 | 41,760 |
| Foreign exchange difference | (4,146) | (2,831) |
| Net increase/(decrease) in cash and cash equivalents related to continuing operations | (63,580) | (31,969) |
|
|
|
|
| Cash in banks and on hand at the beginning of the period related to continuing operations | 285,205 | 89,615 |
| Cash in banks and on hand at the end of the period related to continuing operations | 221,625 | 57,646 |
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|
|
|
| Cash in banks and on hand at the beginning of the period related to discontinued operations | 48,844 | - |
| Net cash generated from / (used in) operating activities related to discontinued operations | (1,942) | - |
| Net cash generated from / (used in) investing activities related to discontinued operations | (2,100) | - |
| Net cash generated from / (used in) financing activities related to discontinued operations | 30,124 | - |
| Foreign exchange difference | 6,709 | - |
| Cash in banks and on hand at the end of the period related to discontinued operations | 81,635 | - |
Additional Information
Noventiq's related supporting materials can be accessed in the Investor Relations section of Noventiq.com
A replay of the Q2/H1 trading update on 29 November 2022 can be accessed here: Noventiq - FY2022 H1 Trading Update
Since the 20th of October 2022 the company operates under the brand name of Noventiq: Noventiq RNS.
About Noventiq
Noventiq is the new brand name of Softline Holding plc, one of the fastest growing players in the sector. It is a leading global solutions and services provider in digital transformation and cybersecurity, headquartered in London. Under this brand, the company enables, facilitates and accelerates the digital transformation of its customers' businesses, connecting over 75,000 organisations from all industries with hundreds of best-in-class IT vendors, and delivering its own services and solutions.
The company delivered turnover of approximately US$1.1 billion in the fiscal year of 2021. It is listed on the London Stock Exchange following successful IPO in October 2021.
The company´s c. 3,900 employees, work in almost 60 countries throughout Asia, Latin America, Eastern Europe, Middle East and Africa - markets with significant growth potential.
Additional information about the company can be found here: https://noventiq.com/investor-relations
Contacts
Steven Salter
Global Investor Relations VP
Rocio Herraiz
Global Head of Communications
Important Notices
The financial results set out in this release are sourced from the Group's management accounts for Q2 & H1 FY2022, Q2 & H1 FY2021 and are unaudited. The "constant currency" metric excludes the effect of foreign currency exchange rate fluctuations by translating the current period revenues into U.S. dollars at the weighted average exchange rates of the prior period of comparison.
This document may constitute or include forward-looking statements. Forward looking statements are statements that are not historical facts and may be identified by words such as "plans", "targets", "aims", "believes", "expects", "anticipates", "intends", "estimates", "will", "may", "continues", "should" and similar expressions. These forward-looking statements reflect, at the time made, the Company's beliefs, intentions and current targets/aims concerning, among other things, the Company's or the Group's results of operations, financial condition, liquidity, prospects, growth and strategies. Forward-looking statements include statements regarding: objectives, goals, strategies, outlook and growth prospects; future plans, events or performance and potential for future growth; liquidity, capital resources and capital expenditures; economic outlook and industry trends; developments of the Company's or the Group's markets; the impact of regulatory initiatives; and the strength of the Company's or any other member of the Group's competitors. Forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The forward-looking statements in this document are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in the Company's records (and those of other members of the Group) and other data available from third parties. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Forward-looking statements are not guarantees of future performance and such risks, uncertainties, contingencies and other important factors could cause the actual outcomes and the results of operations, financial condition and liquidity of the Company and other members of the Group or the industry to differ materially from those results expressed or implied in this document by such forward-looking statements. No representation or warranty is made that any of these forward-looking statements or forecasts will come to pass or that any forecast result will be achieved. Undue influence should not be given to, and no reliance should be placed on, any forward-looking statement. No statement in this document is intended to be nor may be construed as a profit forecast.
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