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.
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| • | 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.
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| • | 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.
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| • | Turnover growth of 114% YoY from higher profitability Services business.
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| • | Recurring turnover increased to more than 55% of overall turnover.
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| • | 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.
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| • | 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.
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| • | 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.
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| • | 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.
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| • | Published our ESG statement, in line with our focus on ESG https://softline.com/about/esg/esg-statement
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| • | 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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