SingularLogic: higher operational profitability

SingularLogic: higher operational profitability

Athens, 1st April 2014: Within an environment of sustained economic slowdown, the SingularLogic Group succeeded in improving its operational profitability (EBITDA) by €2.3 million, from €386,000 in 2012 to €2.7 million in 2013.

In particular, the Group’s sales for the 2013 financial year declined by 8% compared to the previous year, amounting to €51.3, both due to the sluggish implementation of the Public Investment Programme in the scope of IT projects, and as a result of reduced investments by SMEs stemming from the sustained financial predicament and credit crisis.

Despite the decline in sales, the operational restructuring of the Group which spanned a two-year period, from 2011 to 2012, combined with the Administration’s commitment to cost optimisation, lead to a significant increase in EBITDA, from €386,000 in 2012 (before impairment charges) to €2.7 million in 2013. The gross profit margin rose to 25.8% from 21.9% in 2012, while similarly significant was the rise in productivity (sales per employee).

In 2013, SingularLogic affirmed its commitment to the development of new products which meet the everyday needs of businesses in dynamic industries of the Greek economy such as the hospitality market (Galaxy Hotel), as well as to the development of new technologies for next generation software applications and solutions, such as applications and solutions for mobile computing and the Cloud (My Galaxy View, moRE, Orbi, 4doctors). The company’s firm orientation towards innovation and the optimal use of technology was acknowledged with the 2013 E-business Award by the Athens Chamber of Commerce & Industry.

In the market of major IT projects for the private sector, the Group undertook the implementation of more than 150 projects for its customers – Vodafone Albania, Forthnet, FirstData, Coral, OTE, Elpedison Energy, Eurodrip, ABB, Polykem, Septona, SFS Hellas Finance Consumer to name a few - as well as for over 550 petrol stations where it supported their fuel inflows-outflows monitoring system. For the Public Sector in particular, SingularLogic implemented important projects for the Athens Bar Association, the ACCI and the Chamber of Corfu, while at the same time strengthening its presence in international markets.

Commenting on the 2013 results, Mrs. Marika Labrou, SingularLogic Managing Director, stated: “Despite the continuing predicament of economic recession in Greece, we have managed to significantly improve our EBITDA profit margin on an annual basis. Our main focus was to obtain results from the operational restructuring of the Group, to manage cash flow efficiently and to optimise the cost basis for our products and services.

The decline in sales, compared to the previous financial year, is the result of the extended financial downturn, of the credit crisis smothering private enterprises and of further delays in the implementation of the Public Investment Programme. Vital IT projects in both the public and the private sector, which could have lowered expenses and fostered growth in the Greek economy, were either postponed due to limited funding or were implemented at slow pace.

We expect 2014 to have a stabilizing effect not only on the domestic IT market but on SigularLogic as well. Even though the strain on the SMEs operating in the enterprise IT field will most probably continue, the IT service market addressing medium-sized and large enterprises is estimated to gradually start recovering in 2014. At SingularLogic, we remain focused on improving the Group’s efficiency, we strengthen our presence in foreign markets and we continue to invest in the development of advanced technology solutions which help our products and services remain highly competitive”.