1st HALF OF 2021 FINANCIAL RESULTS
1st HALF OF 2021 FINANCIAL RESULTS
During H1 of 2021 Quest Group recorded Sales €447,5m, EBITDA €39,3m and EBT €30,4m, demonstrating:
· Growth in Sales by 47,2%, in EBITDA by 44,6%, in EBT by 94,1% and in EAT by 111,9%.
· No change in its solid financial status and in the rollout of its planned growth investments.
At the same time Quest Holdings reached an agreement for the sale of Cardlink S.A. and Cardlink One S.A. which is subject to conditions including the approval of the Central Bank of Greece and the Central Bank of Belgium. The transaction will yield an extraordinary profit of €87m to the Group, which will be included in the 2021 financial results.
The main consolidated financial results & figures are illustrated as follows and are broken down to continued and “discontinued” operations (according to IFRS, corresponding to Cardlink S.A. and Cardlink One S.A., which will probably be discontinued):
* Do not include “other gain/losses” related to investment activity.
Group’s Net Debt (Debt minus Cash and Cash Equivalents) was €20,6m, compared to -€10,2m at 31/12/2020. The change from 31/12/2020 is mainly due to elevated working capital needs, which is an annually recurring trend during this period of year. The Group’s investments during H1 of 2021 were €8,57m. Most of it regards to the development of the new central hub of postal services. EBT and EAT include extraordinary profits of €2m mainly from the sale of a minority stake at TEKA Systems SA.
6Μ 2021 Results per segment
Ø Commercial Activities -mainly in ΙΤ & Telco products- (companies: Info Quest Technologies, Quest on Line, iSquare, iStorm, Clima Quest).
Sales grew by double digit (+71,2%), followed by a more than doubled EBT (+155,9%) on a YoY basis. In fact, this is the result of the comparison of two different eras, pre and post covid-19, since it is now apparent that the pandemic accelerated the demand in IT products and e-commerce. The improvement in profitability margins is driven by economies of scale due to the steep increase in sales and cost containment.
Ø IT Services (Uni Systems).
During H1 2021 sales augmented at a double-digit pace (+22,1%) while EBT over-doubled (+135,2%). Demand for IT services continued to grow, partly because of digital transformation projects of the private and public sector which accelerated. Furthermore, Uni Systems managed to operate more efficiently and contained its financial and other costs.
In July, Uni Systems reached to an agreement for acquiring 60% of Intelli Solutions for an amount of €3,8m, with a combination of a secondary buy of shares and a share capital increase. The investment amount may climb up to €5,2m if an earnout projection to previous shareholder is triggered, based on the achievement of specific milestones within the next 2 years. The transaction is expected to be closed in Q3 2021.
Ø Postal Services (ACS Courier).
During H1 2021 sales improved (+16,2%), followed by an even higher increase in EBT (+40,6%). ACS profitability is significantly elevated on an YoY basis, due to extraordinary profits generated by the reversal of past years’ provisions. The extraordinary profits amplified EBT by €760k and EAT by €1,2m. Recurring profitability is also increased, as ACS gradually streamlines the extraordinary expenses driven by the steep increase in e-commerce volumes. As physical retail is opening, e-commerce increase is decelerating with a similar effect on ACS growth.
Ø Electronic Payments (Cardlink).- Discontinued activity
Sales were highly improved (+27,6%) while ΕΒΤ more than tripled (+278,5%). The company is not any more burdened by extraordinary expenses (earnout) imposed by the agreement with the customer banks. There’s also a positive effect by the growing penetration of e- payments, which is more noticeable after the opening of the physical retail, the restaurants, and the recovery of tourism.
After the agreement with Worldine and based on IFRS the activity is considered discontinued and will cease being consolidated after the closing of the transaction, estimated to occur during the last four months of 2021.
Ø Renewable Energy Production (Quest Energy).
Sales were slightly higher (+2,7%) while EBT also grew by (+6,1%) compared to last year.
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Group’s H1 2021 Financial Results per Operating Sector:
Parent company is included in Unallocated functions.