Home News Softline announces strong results for Q3’21, including 25% increase in gross profit and 36% increase in adj. EBITDA, further demonstrating the success of its 3D strategy with geographic expansion, sales channel development and product portfolio expansion

Softline announces strong results for Q3’21, including 25% increase in gross profit and 36% increase in adj. EBITDA, further demonstrating the success of its 3D strategy with geographic expansion, sales channel development and product portfolio expansion

by wrich

15th February 2022, London, UK – Softline Holding PLC [SFTL, US83407L2079] (Softline, Softline Group, the Group, or the Company), a leading global IT solution and services provider with a focus on digital transformation, cloud, and cybersecurity, announces unaudited key operating highlights for the third quarter of financial year ending 31 March 2022. 

Q3 and 9M 2021 BUSINESS HIGHLIGHTS 

Gross Profit increased 25% YoY to $102M for period Q3’21, and 36% YoY to $231M for the 9 Months to 31 December 2021.

 

Adj. EBITDA Margin (from Gross Profit) was 33% for period Q3’21, an increase of 36% YoY. For the 9 Months to 31 December 2021, Adj. EBITDA Margin (from Gross Profit) was 26%, an increase of 42% YoY, and provides a strong foundation for 2021 business outlook.

 

Turnover for the period 31 March – 31 December 2021 increased by 20% year-on-year to US$1,642 million. Including the impact of unconsolidated turnover of $46M from Belitsoft, DigiTech and Squalio, turnover growth was 23% for the same period.

 

Turnover growth of 114% YoY from higher profitability Services business.

 

Recurring turnover increased to more than 55% of overall turnover.

 

Softline made five key strategic acquisitions since IPO… accelerating geographic expansion, skills and capabilities, including Umbrella Infocare – a market-leading cloud services company based in Delhi; Softclub – a specialist in the rapidly-growing industry of fintech; MMTR Technology – a specialist in software development and application engineering employing nearly 500 software engineers; Academy IT – bespoke corporate training solutions; and TC Engineer – cyber security capabilities.

 

Launched industry leading performance based long-term all employee partnership program, driving talent attraction and retention. Comprehensive motivational programme will help drive long-term partnership with employees as we double down on attracting the best talent and boosting opportunities… which is critical in this industry, and strengthens our long-term competitive positioning.

 

37% increase in headcount YoY to 6,536. Boosted capacity to 2,500 software engineers since 31st December, and targeting 5,000 professionals in the medium term.

 

Completed the expansion of the Board, which now has a majority of independent non-executive directors, in line with our commitment to best practice governance.

 

Published our ESG statement, in line with our focus on ESG https://softline.com/about/esg/esg-statement

 

Implemented and increased the share buyback programme to fund the Company’s long-term management incentive plan, the long-term employee partnership program (“LTEPP”), and the employee share purchase scheme announced on 24 January 2022.

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