Publication of inside information pursuant to Article 17(1) of the Regulation (EU) 596/2014 on Market Abuse (Market Abuse Regulation - MAR)
Softline AG, headquartered in Leipzig, Germany, expects a possible loss of EUR 0.3 – 0.5 million at the EBITDA level for the financial year 2021, contrary to the revenue and earnings forecasts published on 16 August 2021. Compared to the half-year forecast, in which revenue of approximately EUR 32.0 - 34.0 million was assumed, revenue of only EUR 27.0 – 29.0 million is currently expected.
The correction is based on the currently available figures and the projections for the fourth quarter based on them. The fourth quarter was usually the strongest quarter for Softline AG in terms of revenue and, in addition to the service business, was characterised in particular by strong software and hardware business. However, the Corona-related restrictions as well as distortions in the global supply chains have led to acceptance stops for hardware and software products on the customer side and to project postponements in the related service sector. Although capacity utilisation in the consulting environment remains high, it is highly likely that planned revenues in this area will also no longer be generated or invoiced by the end of the calendar year.
However, the outlook for the coming 2022 business year is clearly positive despite this currently difficult situation. This is not least due to the fact that in the third and fourth quarters of 2021, strong foundations were laid, particularly on the personnel side, but also with regard to the order backlog and the order pipeline, so that, according to current estimates, significant increases in turnover and earnings can be realised in 2022.
Leipzig, November 30th 2021