Digitalist Group Plc’s business review 1 January – 31 January
Digitalist Group Plc Stock Exchange Release April 29, 2022 at 9:00 am
Digitalist Group Plc’s business review January 1-March 31, 2022
January-March 2022 (comparative data for 2021 in parentheses):
- Net sales: EUR 5.1 million (EUR 4.8 million), an increase of 7.1%.
- EBITDA: -0.4 million EUR (-0.7 million), -7.5% of net sales (-14.3%).
- Operating result: -1.3 million EUR (-1.2 million), -24.7% of net sales (-26.0%).
- Net result: -1.4 million EUR (-0.7 million), -26.9% of net sales (-13.6%).
- Earnings per share (diluted and undiluted): EUR -0.00 (EUR -0.00).
- Number of employees at the end of the review period: 161 (181), decrease -11%
CEO’s assessment
Compared to the corresponding quarter last year, we have increased our net sales from EUR 4.8 million to EUR 5.1 million. EBITDA is slightly better and we will continue to work to achieve positive figures. This includes primarily a stronger upline, but also a continued focus on cost management and policy improvement.
When our studios in Helsinki, Vancouver and Stockholm join forces, we can create Teams with diverse culture and expertise. This is valuable not only for international customers, but also for local customers operating in a more international market than ever before.
The Covid pandemic and the resulting telecommuting have helped both us and our customers reach across borders. As examples, we now serve a Whistler-based entrepreneur with a team from Stockholm and a healthcare company in Los Angeles with a joint team from Vancouver and Helsinki.
During the first quarter, we gained a lot of new customers. We serve the city of Turku with our Open Tech solutions, help a large industrial customer in Finland with an artificial intelligence research project, and help a large Swedish real estate company implement a new strategy and brand direction. We also continue long-term relationships with well-known customers such as Honda, Unionen, Electrolux, Post and Spotify.
During the first quarter, Leanlab, our software-as-a-service (SaaS) customer collaboration platform business, has begun exploring market entry in Sweden and Norway.
In March, we also deepened our partnership with Yangi AB, which develops sustainable packaging technology, where Grow AB’s Future Lab team has been a close strategic partner since 2020 in developing strategy, commercial concepts and market cooperation.
I strongly believe in our knowledgeable teams and every day we get feedback from customers that our combined expertise represents something unique. In the future, we will focus on expanding our customer base and offer our services to even more customers!
CEO Magnus Leijonborg
OUTLOOK FOR THE FUTURE
In 2022, net sales and EBITDA are expected to improve compared to 2021.
OTHER EVENTS DURING THE FIRST QUARTER
Stock exchange releases for the review period are available on the company’s website at www.digitalist.global/investors/releases.
In March, the Board of Directors decided to exercise the right granted by Holdix Oy Ab to Digitalist Group Oyj and to convert three quarters of the Convertible Bond into a Convertible Bond and to convert their principal, totaling EUR 4,545,827.70, and unpaid interest on the principal. Converted bonds in accordance with the terms of the convertible bond into a subordinated loan meeting the requirements of Chapter 12, Sections 1 and 2 of the Companies Act, otherwise applicable on the same terms. Holdix Oy Ab is the second largest owner of the Digitalist Group.
Digitalist Group Oyj has entered into an agreement with Turret Oy Ab for a loan of EUR 500,000. The loan was granted on market terms and matures on April 30, 2023. Turret Oy Ab is the largest shareholder in the Digitalist Group.
The Digitalist Group has agreed to implement the following arrangement (the “Arrangement”) in respect of Yangi AB, registered in Sweden. Digitalist Group’s Swedish subsidiary Grow AB will subscribe for a total of 11,111 Yangi AB shares at a subscription price of SEK 5,000,000. In order to increase financial flexibility, Grow AB will sell a total of 7,778 shares in Yangi AB to Turret Oy Ab for a total purchase price of SEK 6,300,000.
EVENTS AFTER THE REPORTING PERIOD
The company’s Annual General Meeting was held on April 26, 2022. The minutes of the Annual General Meeting and the decisions made are available on the company’s website at: https://investor.digitalistgroup.com/en/investor/releases
The Annual General Meeting elected Paul Ehrnrooth, Andreas Rosenlew, Esa Matikainen, Peter Eriksson, Maria Olofsson and Johan Almquist as members of the Board. KPMG Oy Ab was elected as the company’s auditor, with Miika Karkulahti, Authorized Public Accountant, as the principal auditor.
The Annual General Meeting authorized the Board of Directors to decide on the issuance of paid shares and the issuance of stock options and other special rights entitling to shares referred to in Chapter 10, Section 1 of the Companies Act, or the merger of all or part of them. the aforesaid instruments in one or more batches. The number of shares to be issued under the authorization may not exceed 325,511,370, which corresponds to 50 percent of all the company’s shares at the time of convening the Annual General Meeting.
The Annual General Meeting authorized the Board to decide on the repurchase or pledge of a maximum of 65,102,000 own shares with the company’s distributable funds, which corresponds to approximately 10 percent of the company’s total number of shares at the time of convening the Annual General Meeting. The acquisition can take place in one or more lots. The acquisition price does not exceed the highest market price of the share in public trading at the time of acquisition.
The authorizations for the Board of Directors are valid until the Annual General Meeting of 2023, but not later than June 30, 2023.
At its inaugural meeting, the Board of Directors of Digitalist Group Plc decided to elect Esa Matikainen as Chairman of the Board and Andreas Rosenlew as Deputy Chairman of the Board. The Board also decided to establish an Audit Committee. Esa Matikainen was elected Chairman of the Audit Committee and Peter Eriksson and Maria Olofsson were elected members.
In connection with the publication of the business review, the company expected working capital to be sufficient to cover its needs for the next 12 months.
DIGITALIST GROUP OYJ
Board of Directors
Additional information:
Digitalist Group Plc
– Magnus Leijonborg, President and CEO, tel. +46 76 315 8422, [email protected]
– CFO Mervi Södö, tel. +358 40 136 5959, [email protected]
Distribution:
Nasdaq Helsinki Oy
Main media
https://digitalist.global