Solutions30 shrinks its loss-making scope while retained businesses grow
Solutions30 reported a decline in nine-month revenue as it withdrew from activities it plans to exit. Businesses intended to remain in the group increased instead. Work on a loss-making French telecom contract stopped at the end of September. Management has separated the two scopes and plans to finish its exit programme by year-end.
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Retained activities grow within a smaller group
Solutions30, a European provider of technology-infrastructure services, reported nine-month revenue of 563.1 million euros, down 14.8 per cent from restated revenue of 661.0 million euros a year earlier. Management separates the businesses it plans to keep from activities it intends to exit. Retained businesses generated 474.8 million euros over nine months, up 3 per cent. Exiting activities generated 88.3 million euros, down 55.9 per cent. Total third-quarter revenue fell 22.9 per cent to 162.7 million euros. Within that quarter, retained revenue rose 2.8 per cent to 153.2 million euros, while exiting activities contributed 9.5 million euros.[1], [2]
French telecom work stops
Work under a major loss-making French telecommunications framework contract stopped entirely at the end of September. French third-quarter revenue fell 53.5 per cent to 34.1 million euros. Over nine months, Solutions30 revenue in France was 154.6 million euros, compared with 240.1 million euros in Benelux and 64.1 million euros in Germany. The German customer base was redirected toward stronger operators, and its quarterly revenue decline was limited to 2.2 per cent. Other Countries revenue increased 3.2 per cent in the quarter. Comparisons treat the United Kingdom and the divested Spanish telecom business as discontinued operations.[1]
First-half margins separate the two scopes
The company also supplied a first-half comparison of the retained and exiting operations. Retained activities had revenue of 333.6 million euros and adjusted earnings before interest, tax, depreciation and amortisation of 33.2 million euros, a 9.9 per cent margin. Exiting activities recorded a loss of 16.2 million euros on that adjusted measure and a negative 24.3 per cent margin. The group-wide first-half margin was 4.2 per cent. Group overhead costs are included in the retained scope. Management calls the breakdown informational and subject to minor adjustments, and plans to conclude the portfolio exits by year-end. A strategic webinar on 17 November will present the new roadmap.[1]
