18 April 2019
Lleida.net billed for 2.83 million euros in 1Q 2019 and accumulates 11 quarters with positive ebitda
- The result before taxes of Lleida.net accumulates seven consecutive quarters in positive.
- The number of running contracting processes (SaaS) increased 247% compared to the first quarter of 2018.
- Lleida.net investment in R & D+i in the first quarter of the year increased by 44% year-on-year.
- Net debt continues to decline and during the first three months of the year was reduced by 105,000 euros.
- The number of worldwide granted patents on certification methods reaches 104.
Madrid, 17 April .- The IT company Lleida.net (BME: LLN; EPA: ALLLN) reported a turnover of 2.83 million euros in the first quarter of 2019, a slight decrease compared to the first quarter of 2018.
Thus, interconnection Wholesale business line reached 1.34 million euros, Software as a Service (SaaS) reached 781,000 euros and SMS business line 709,000 million euros.
SaaS sales rose 8% and 7% higher compared to the third and fourth quarter of 2018. The growth trend is consolidating quarter-by- quarter.
The amount of contracting processes of the group (SaaS) continue their upward trend as leading indicator of the sales. In the first quarter, they have risen from 247% to 238 compared to the first quarter 2018.
The commercial effort has been particularly targeted both in the South African market, with the acquisition of the main call centres in the country, and in Europe where the company is the first Spanish supplier to obtain the type approval of qualified electronic registered delivery service of the EIDAS regulation.
Moreover, international sales account for 52% of Group sales, with an increase in the relative weight of international sales compared to national sales.
ICX Wholesale Solutions sales fell 20% during the quarter this year; after growing by 51% throughout 2018.
The short-term nature of the contracts in this business line is translated into greater volatility in the results and despite its setback, Lleida.net continues well positioned to continue to grow still further.
The gross margin out of sales of Lleida.net services increase to 53% due to the weight that SaaS line has over the global sales.
Lleida.net expects this trend to continue as the products they are currently boosting, are focused on areas of high added value such as identity verification and validation systems, via video conference (eKYC).
On the other side, their growth plan continues to support strategies to attract talent.
A 14% increase in recruited staff( up to 71 new employees) led Lleida.net to an increase in personnel spending of 9% during the first quarter of 2019.
Likewise, the project of Lleida.net involves a constant and intense investment in R & D+I, with an increase of 73,000 euros compared to the same period of 2018.
Both the EBITDA and the pre-tax result are still positive (with 11 and seven consecutive quarters in positive, respectively), so despite the decrease in sales and the start-up of strategic costs for upcoming years, the company has been able to generate cash and profits during the first three months of the year.
REDUCTION IN FINANCIAL DEBT
On the other hand, the net financial debt of Lleida.net in the first quarter of 2019 decreased by 105,000 euros (6% less in the inter annual rate), and it stands at 1.78 million euros.
This decrease has been concentrated during the first quarter on the weight of short-term debt, with the objective of having more financial capacity with the existing strategic plans.
EURONEXT GROWTH LISTING AND EIDAS TYPE APPROVAL
During 2018 Lleida.net became the first Spanish company to quote on a dual basis in MAB and in Euronext Growth.
Likewise, during 2018, the company became the first and the only Spanish supplier and the sixth in Europe to obtain the type approval of qualified electronic registered delivery service of the EIDAS regulation.
104 GLOBAL PATENTS
The growth strategy of Lleida.net in the esignature market goes through an aggressive policy of growth in terms of intellectual property. So far, the number of patents granted worldwide on certification methods reaches 104.
The Argentine National Patent Administration has granted Lleida.net (BME: LLN; EPA: ALLLN) the patent for its Method for Certification of the delivery of registered email.
The term of patent is currently in force for 20 years, it is Lleida.net first patent granted in Argentina on certification and notification methods as well as of digital witness for electronic contracting and electronic notification.
Currently, over 70 countries recognize the legal validity of electronic methods to certify legal notifications in contracting processes.
During 3Q 2019, Lleida.net continues to pursue its growth plan, with an increase in personnel by 14%, (reaching 71 people). The staff recruited has focused not only on Latin America sales force, with recent resources in Peru, Colombia and Mexico but also with the incorporation of higher qualifications degrees and engineering profiles.
The current capitalization of the company reached 18.46 million euros in the MAB, an index in which the share reached 1.08 euros per share ( 16.1% to date this year). On the other hand, the company's Euronext Growth securities stood at 1.21 euros per share ( 0.8% more in 2019 cumulative).