CEO's review

The fourth quarter capped a year of consistent result improvements throughout 2024. During the fourth quarter, the comparable operating result was EUR 0.3 million, which was EUR 1.4 million better than in the comparison period. The improvement in profitability, driven by successful cost management, was significant, particularly considering the revenue decrease of EUR 1.8 million from the comparison period. Both segments diminished in revenue, generating a comparable revenue of EUR 12.5 million for the company. During the review period, the market situation was tougher than estimated, leading to a profit warning in October 2024 and a lowering of the profit guidance on comparable revenue for the fiscal year.

In Retail & Commerce, the comparable revenue, EUR 9.7 million, decreased by 7.1 percent relative to comparison period. The revenue development was affected by subdued customer demand and delays in several key customer acquisition opportunities. The efficiency measures implemented in the second and third quarters drove a comparable operating profit of EUR 1.0 million, an improvement of EUR 1.2 million, establishing the segment as the driving force behind the company’s improvement in results for the review period.

In Utilities, the comparable revenue was EUR 2.8 million, down by 27.0 percent relative to the comparison period. The disappointing revenue development was caused by delays in customer deliveries in the software business and weak customer demand in the consulting business. The comparable operating result was EUR -0.7 million, which improved by 15.7 percent relative to the comparison period.

During the review period, Danish healthcare software solutions, a part of the Retail & Commerce segment, were sold. The transaction was completed at the end of December 2024, and the net debt-free purchase price of the business was EUR 4.0 million. The transaction was a logical continuum to enhance the company’s focus on selected solutions and expert services in the energy sector, retail industry, and e-commerce. Furthermore, the transaction enables the company to decrease indebtedness and financing costs.

Overall, the year 2024 was a good one for Solteq. The company's comparable operating result turned positive and improved by more than EUR 5 million. I am very pleased with this performance. We aim to continue improving our results this year, and we are well-positioned to achieve that.

The market outlook for both segments is expected to be somewhat difficult. However, the markets are expected to stabilize gradually during the year, and the company is confident in its ability to consistently improve results.

CEO Aarne Aktan