Lleida.net's profit before taxes increased by 91 per cent in the first semester of 2021

USA - English

• USA - English

MADRID, July 21, 2021 /PRNewswire/ -- Technology services company Lleida.net (BME: LLN) (EPA: ALLLN) (OTCQX: LLEIF) boosted its profit before taxes by 91 per cent in H1 2021, compared to the same period last year.

The company recorded a six-month profit before tax of €662,000 in H1 2020, compared with €346,000 in H1 2020, and well above the €232,000, it recorded in H1 2019.

Once a quarter again, Lleida.net's sales and gross margin grew steadily.

SUSTAINED INCREASE IN SALES

Quarterly sales increased to 4.32 million euros, or 14 per cent more than in the Q2 last year, which is the first quarter to report data after the outbreak of COVID-19 crisis.

Half-year sales are already 8.3 million euros or six per cent higher than in the first half of 2020.

During Q2, the gross margin increased by 17 per cent to 2.23 million euros, whereas it grew by 12 percent to 4.23 million euros on a half-yearly basis.

The company achieved an EBITDA of 582,000 euros and has now recorded 20 quarters of positive EBITDA, thus generating profits for its shareholders.

THREE BUSINESS LINES SHOW PROGRESS

During the second quarter of 2021, Lleida.net's three business lines recorded significant increases in sales. Most notably, the SaaS line witnessed sales of over 1.5 million euros, or 25 per cent more than in Q2 2020.

As of the end of H1 2021, the company's total sales had already increased to 8.3 million euros, or six per cent more than in the first half of last year.

In H1, SaaS was the main business line with the highest growth, up 35 per cent to EUR 3.12 million or 35 per cent from a year ago.

Factors responsible for the exponential increase in sales of the SaaS line are due to a global evolution in the electronic notifications and communications market, the signature of new agreements at an international level, especially the one signed with Bancolombia and The Phone House, and the signature of new regional distribution agreements for Lleida.net services, as the one signed in Egypt with Egate Egypt or with the Pan-African Postal Union for all Africa.

Similarly, the SMS line recorded sales of 1.36 million euros, up 11 per cent. Driven by the recovery of the hospitality sector, the ICX Wholesale line grew by 6% in the quarter to 3.8 million half-yearly. This quarter, Lleida.net has launched VOIP with SMS; with our nomadic numbering, it is possible to make and receive IP calls via SIP and send and receive SMS from the same number.

FOCUSING ON A STRONG TECHNICAL TEAM

Over the period, personnel expenses increased after hiring 18 people in the last 12 months. This increase is in line with the growth of the technical and R&D areas.

As a result, personnel expenses in H1 2021 amounted to 2.08 million euros, compared to 1.75 million euros in the same period of the previous year.

The increase in external expenses reflects the general recovery economic upturn.

International travel, particularly to the Middle East, and attendance at international events such as the Mobile World Congress and 4YFN in Barcelona, with our stand and seconded staff, were taken up again during this period.

FINANCIAL DEBT Net financial debt continues to decrease. It dropped by 23% in Q2 compared to the 1Q2021. The company's cash flow ensures the viability of the company in the short and medium-term.

The company has not signed any new debt agreements during this quarter, although new loans are planned to finance the purchase of the digital signature company Indenova, announced recently by Lleida.net.

INTELLECTUAL PROPERTY AND 205 PATENTS

Lleida.net is currently listed on three stock markets: BME Growth in Madrid, Euronext Growth in Paris and OTCQX Best Market in New York.

A leading European player in the registered electronic contracting, electronic signatures and notification industries has 205 patents granted by over 60 countries. Its intellectual property portfolio, key to understanding its growth in the stock market, is one of the soundest in the global industry.