Noventiq (formerly Softline) increased turnover by 9% in 2020 in USD and 22% in constant currencies, strengthening its market position as a global provider of enterprise IT solutions
Softline (Softline Group, the Group or the Company), a leading global IT solution and services provider with a focus on digital transformation, cloud and cybersecurity, announces key operating highlights for fiscal year ending 31 March 2021.
Softline Holding plc began trading under the brand name Noventiq after divesting part of its business in October 2022.
2020 operational HIGHLIGHTS
- Softline's turnover in 2020 fiscal year ending 31 March 2021 increased by 8.9% year-on-year to $1.8 billion.
- The largest growth in 2020 was in the segments of cloud services (47%), hardware solutions (12%) and software Subscriptions (5.1%). These segments now represent respectively (25%), (13.6%) and (28.9%) of total company turnover. 56% of the total revenue was from recurring business.
- In line with its global expansion strategy, Softline increased its turnover share in the markets of Eastern Europe and Central Asia, Latin America and in the APAC region. Most businesses delivered strong double-digit growth in constant currencies, adding 22% or more.
- The Group's portfolio includes products and technologies from more than 4,300 international vendors, including Microsoft, AWS, Google, Oracle, VMware, Cisco, Dell, HPE and others. The Group's services have already been used by more than 95,000 business customers from 55 countries.
Igor Borovikov, Chairman of the Board of Directors of Softline Group, noted:
"Despite the global economic downturn in 2020, Softline has successfully adapted to the new challenges and continued to show strong growth, effectively taking advantage of the opportunities opening up for the IT industry amid the pandemic. As part of the Group's global expansion strategy, we have increased our international business share to 40% through both organic growth and significant M&A transactions.
The Group has made significant progress in the development of cloud services, a key area of our business that has been delivering double-digit growth for the past three years. At the same time, we have strengthened the service segment and considerably enhanced the quality of our offering in the field of custom development.
Today, we see significant potential for further value creation based on Softline's global presence and are considering various strategic development opportunities, including a potential initial public offering of the Company's shares."
Softline Global CEO Sergey Chernovolenko said:
"The COVID-19 pandemic has led to significant changes in business processes for entire industries, creating additional demand for cloud services, remote work solutions, process automation and data management tools. In this context, Softline has focused on developing key services and competencies, continuing international expansion, and strengthening partnerships with the world's largest vendors.
Our priorities are to further expand our global software development workforce, strengthen our cybersecurity expertise, and create exclusive digital transformation solutions based on the Internet of Things, artificial intelligence and RPA technologies. "
Key events in 2020 and Q1 2021
- In January 2021, Softline acquired Embee, an Indian IT company specialising in cloud services, software licensing, cybersecurity and system integration services. The deal will significantly strengthen Softline's position in one of the fastest-growing markets in the world (the alliance will make the Group Microsoft's second-largest partner in India).
- In December 2020, Softline agreed to acquire a controlling stake in the German company Softline AG, which specialises in IT consulting in the areas of software and IT asset management (SAM/ITAM), cloud technologies, information security and digital workspace technologies. Softline AG operates in Germany, the Netherlands, Belgium and the United Kingdom. The company employs more than 200 IT consultants. The transaction has been completed on 7 April 2021.
- In November 2020, Softline acquired the software development outsourcing business from Aplana Group. As a result, more than 200 employees joined Softline in three development centres in Russia with expertise in a number of key industry verticals.
- In October 2020, Softline successfully placed exchange-traded bonds in the amount of RUB 4.95 billion for a period of 3 years and 2 months. The final coupon rate was set at 8.9% per annum. The placement was well received by investors. In April 2020, Softline already placed bonds in the amount of RUB 1.35 billion for a period of 2 years and 9 months.
- In September 2020, the Group opened headquarters in London, from which it manages Softline's international business (Softline Group’s business outside of Russia).
- In June 2020, the international rating agency S&P confirmed Softline's credit rating at "B" with a stable outlook. Softline is the only IT company in Russia that has received a "B" rating with a stable outlook, confirmed by S&P, for two consecutive years.
- In May 2020, Softline became the only IT company in the Eastern Europe and Central Asia region to receive the Google Cloud Work Transformation Enterprise qualification, which confirmed the Group's strong competencies in the field of digital transformation of teamwork.