Lleida.net reports losses of 2.65 million euros and a 20% drop in sales in 2023
Madrid, April 29.- Lleida.net (BME:LLN) (EPA:ALLLN) (OTCQX:LLEIF) sales fell by 20 percent in 2023 due to the negative evolution of the company's activity in Latin America and the change in trend in the SMS market.
The company sold €16.4 million in the fiscal year, compared with €20.6 million at year-end 2022, or a reduction of €4.2 million. The only line of business that grew was certified e-recruitment.
In financial terms, the company posted an after-tax result of €2.65 million loss in 2023, compared to the €515,000 it lost in 2022.
"What is clear is that the market is demanding a change in our approach to the business model. Since the end of last year, we have been working to produce and generalize a more standardized SaaS and to strengthen our commercial work within the European Union, which is our natural market," explained Sisco Sapena, founder and CEO.
The company explained in a report issued this morning to the market that "during the first quarter of fiscal year 2024, the Group has continued with the policy of cost adjustments".
THE COMPANY'S BUSINESS PERFORMANCE IN 2024
On November 3, the company already announced a restructuring plan, which included dismissing a significant part of its workforce, making significant cuts in external suppliers, marketing, and production, and closing and selling several subsidiaries.
As a consequence of these changes, so far this year, Lleida.net has announced relevant new contracts:
On April 18, it signed a Letter of Intent with PostNL for the exclusive distribution of Lleida.net's services in the Netherlands in the presence of the King and Queen of Spain and the Netherlands.
On April 16, the company announced a new contract with Peruana de Entretenimiento en Línea S.A.C., allowing it to bill some 600,000 euros annually.
At the beginning of April, Lleida-net signed a contract with América Latina Redex SAS for 500,000 euros per year; the technology company will provide the Redex group with its notification, signature, and electronic contracting services, giving them access to its entire catalog of products.
It signed a contract with the Colombian Attorney General's Office in March for 250,000 euros.
On February 16, Santander Global Technology & Operations S.L. awarded the company three lots for SMS sending services for a total value of 1.89 million euros.
MARKET LEADER SINCE 1995
Lleida.net is one of the leading companies in Europe in the certified electronic signature, notification, and contracting industry.
It has received over 310 patents from more than 60 countries worldwide and has one of the industry's most robust intellectual property portfolios.
The company, whose technology is marketed in more than 50 countries, serves credit institutions, telecommunications companies, and insurance companies.
Lleida.net, founded in 1995, went public for the first time in Madrid in 2015. It subsequently executed a dual listing on Euronext Growth Paris in 2018 and OTC Markets in New York in 2020. Its securities are also traded on the Frankfurt and Stuttgart stock exchanges.
SAFE HARBOR STATEMENT
This press release contains statements regarding the future of the company and its innovations. Statements regarding the future may be accompanied by words such as "anticipate", "believe", "estimate", "wait", "anticipate", "pretend", "power", "plan", "potential", the use of future time and other terms of similar meaning. No undue reliance should be placed on these claims. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements, including uncertainty of the company's commercial success, ability to protect our intellectual property rights, and other risks. These statements are based on current beliefs and forecasts and refer only to the date of this press release. The company assumes no obligation to publicly update its forward-looking statements, regardless of whether new information, future events or any other circumstance arise.
