Softline AG
Softline AG english
Ad-hoc-announcement transmitted by DGAP.
The issuer is solely responsible for the content of this announcement.
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Softline Doubling Sales To 85m Euro
Weak 4th quarter affects results – Groundwork for turnaround completed
Offenburg, September 10. In spite of an unexpected market setback during the
last quarter (April-June 2001), the Softline Group succeeded in more than
doubling its sales with a plus of 103% over last year’s sales (financial year
00/01 ending 30 June), raising it to 85.6m (42.0m) Euro. An unforeseeable market
slump of extreme fierceness in the 4th quarter and a general reluctance in
investment activities resulted in sales failing to materialise, mainly through
shifts in major contracts with higher margins. The difficult market climate put
the margins under pressure. The Softline Group therefore had to close with an
EBIT (US-GAAP) of minus 6.3m (minus 0.3m Euro) which was higher than the
budgeted EBIT of minus 3.0m Euro. The net loss for the year is 7.3m (minus 0.6m)
Euro, but only 2.6m of it are effecting liquidity. Softline has a solid cash
position of 19.7m Euro, with significantly reduced amounts owed to banks of 4.6m
Euro.
Over the past months, the software market has experienced a slump of
unprecedented proportions, with the increasing investment restraint further
aggravating the sale of major licenses. The increasing cost pressure among
buyers had to be countered to some extent by higher discounts, which resulted in
substantial losses of margin mainly in the 4th quarter. Seen over the whole of
the year, one-off integration and reorganisation costs especially in the UK, as
well as one-off reserves and value adjustments totalling about 1.5m Euro,
depress the result.
The measures contemplated and initiated by the board to counteract these
developments will be felt over the next few months. Strengthening the
proprietary brands with strong margins and exclusive cooperative sales
agreements, catalogs in Switzerland and in France, license models (“XXL”) as
well as new products and sales partners (Dixons, among others) will make
substantial contributions to sales revenues and operating results, with the
effect that the foundations for reaching profitability in the course of the
01/02 financial year have been laid if the levels of economic activity return to
normal.
Contact: Softline, Erik Parkner, eparkner@softline.de, Tel: 0049-781-9293-151
end of ad-hoc-announcement (c)DGAP 10.09.2001
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WKN: 720600; Index:
Listed: Neuer Markt in Frankfurt, Freiverkehr in Berlin, Bremen, Düsseldorf,
Hamburg, Hannover, München und Stuttgart
100800 Sep 01
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