Solteq - EBIT misses our estimates
Solteq's Q4 results were slightly below our estimates. Net sales in Q4 amounted to EUR 15.7m (Evli EUR 15.7m), while the adj. EBIT amounted to EUR 1.1m (Evli EUR 1.5m). Solteq expects that its adjusted EBIT will remain at the same level as in 2019.
- Net sales in Q4 were EUR 15.7m (EUR 14.9m in Q4/18), in line with our estimates (Evli EUR 15.7m). Growth in Q4 amounted to 5.2 % y/y. Revenue in Finland did not grow in 2019 compared to 2018, foreign subsidiary organic growth 26%.
- The operating profit in Q4 amounted to EUR 3.3m (EUR 0.6m in Q4/18), below our estimates (Evli EUR 3.8m). The divestment of the SAP ERP business had a positive impact of EUR 2.5m. The adj. operating profit amounted to EUR 1.1m (EUR 0.6m in Q4/18), below our estimate of EUR 1.5m.
- Product development investments during Q4/19 amounted to EUR 0.9m (2019: EUR 3.9m).
- Guidance for 2020: Solteq expects that its adjusted operating profit will remain at the same level as in 2019. In our estimates we have expected growth in the adj. operating profit in 2020.
- Dividend proposal: a dividend of a maximum amount of EUR 0.05 per share may be distributed, conditional upon whether the requirements for distribution of dividends are fulfilled in term of the company’s solvency and / or financial position. A separate announcement will be made if a resolution to distribute dividend is made. (Evli est. 0.03 per share)