Siili Solutions Oyj

Siili Solutions Plc's half-year report for January to June 2024 shows signs of improved profitability despite a decrease in revenue. The company recorded a revenue of EUR 59 million, a 9% decline from the previous year, and an adjusted EBITA of EUR 3.3 million, representing 5.6% of revenue. The improved profitability in the second quarter is attributed to enhanced efficiency and market-aligned offerings. Siili has set financial targets for 2024-2026, aiming for a revenue of EUR 120-140 million and an adjusted EBITA of EUR 7.5-10.5 million for 2024. The company has launched a new strategy focusing on artificial intelligence, aiming to lead in AI-assisted software development and data solutions. Siili's personnel have been actively involved in this strategic shift, with over 400 employees trained in generative AI. The company also emphasizes sustainability and plans to publish its first sustainability report for 2024. Despite challenging market conditions and a decrease in personnel, Siili's cash flow from operations grew by 46.9% year-on-year. Key financial metrics include an equity ratio of 46.6% and a return on investment of 9.3%. The company has also secured a significant contract with Yle, valued at EUR 35 million, for application development and maintenance services from 2024 to 2028. Siili's management is not aware of any material events after the review period that could affect the report. The company will publish its next business review for Q3 2024 on 22 October 2024 and plans to hold a Capital Markets Day in late November 2024.

Siili Solutions Plc has updated its strategy to focus on AI, aiming to strengthen its position in AI-powered digital development. The company has outlined three strategic priorities that leverage its expertise in software development, AI, and industry knowledge to enhance customer competitiveness. Siili will continue targeting large enterprises and the public sector in Finland, the UK, Germany, and the Netherlands, while expanding its skill base in Finland and Eastern Europe, including Poland and Hungary. CEO Tomi Pienimäki highlighted that AI solutions enable new business opportunities for customers and improve development cycles. Siili's financial targets for 2024-2026 remain unchanged. The company is listed on the Nasdaq Helsinki Stock Exchange and has been profitable since its founding in 2005.

Siili Solutions Plc has corrected its stock exchange release published on 24 April 2024, which reported its business review for Q1 2024. The company clarified that 51% of its employees in Finland have completed a GenAI certificate, not 75% as previously stated. The Q1 report showed revenue of under EUR 30 million, a decline of over 10% from the same period last year. The company's adjusted EBITA for the period was EUR 1.6 million, or 5.3% of revenue. Despite challenging market conditions, Siili Solutions highlighted several successes, including the launch of a three-level AI training programme for consultants, and winning several AI tenders in the public sector. The company expects revenue for 2024 to be EUR 120-140 million and adjusted EBITA EUR 7.5-10.5 million.

Siili Solutions Plc reported a decrease in its Q1 2024 results, citing challenging market conditions. The company's revenue for January-March was slightly under €30 million, a 10% decline from the same period last year. Adjusted EBITA for the period was €1.6 million, or 5.3% of revenue. Despite the downturn, Siili highlighted positive developments in its AI sector, including a three-level AI training programme for its consultants and several AI-based digital services for its clients. The company estimates its 2024 revenue will be between €120-140 million, with an adjusted EBITA of €7.5-10.5 million. It expects the demand for digital development services to remain strong in the long term.

Siili Solutions Plc held its Annual General Meeting on 3 April 2024, during which the financial statements for the financial period 2023 were adopted and the Board of Directors and the CEO were discharged from liability for the same period. The meeting also resolved to pay a dividend of EUR 0.26 per share, totalling approximately EUR 2.1 million. The remuneration report and policy of the governing bodies were adopted, and the composition and remuneration of the Board of Directors were confirmed. The board will consist of five members, including two new members. Audit firm KPMG Oy Ab was re-elected as the company's auditor. The General Meeting also authorised the Board of Directors to resolve on the repurchase and/or acceptance as pledge of the company's own shares and on the issuance of shares and special rights entitling to shares. The Board of Directors held a constitutive meeting after the General Meeting, appointing Harry Brade as its Chair and Jesse Maula as its Vice Chair.