Sirma management team on first trading day

Leading software group Sirma Group Holding (SKK BU) posted 21.9% y/y cons revenue growth, while normalized net income is down 45%, according to preliminary consolidated Q4 2015 results.

Top line performance is above initial management expectations reaching BGN 33.97m.Bulgaria, UK and the US market added the most with 31% growth y/y in Bulgaria, revenue doubling in the UK and 6% growth in the US. Software services revenue, biggest part of group sales, added 8% to BGN 13.8m while software product sales jumped 23.5% to BGN 7.4m. License revenues doubled, while subscription revenue added 20% y/y, both still a smaller part of total top line.

The bottom line, however, is below expectations, with normalized net income down 45% y/y to BGN 1.57 as external services costs doubled over FY2015 due to higher external software services used and higher additional expenses with advertising and other service.

Sirma Solutions and Ontotext

Capitalized expenses are also up from key R&D projects at semantic web specialist Ontotext and software developer and integrator Sirma Solutions.
Sirma Solutions, Sirma’s biggest subsidiary, posts 27.88% y/y sales growth while normalized profitability triples with earnings before taxes up from BGN 504K to BGN 1.48m. Ontotext, 2nd biggest subsidiary, sales decline 11% y/y to BGN 6100 while the bottom line turns negative with a loss of BGN 229K.

Sirma Group Holding – guest at the online Investors’ Day @ ELANA

A new Investors’ Day @ ELANA is organized on 8 March 2016, 16h. (CET time) with a guest Sirma Group Holding (SKK BU). The event will be held online, registration is open and free for everyone interested in the company.

Investors’ Day @ ELANA is an initiative of ELANA Trading Equity Research Team aiming to facilitate investor communication with Bulgarian issuers.
Sirma Group Holding will be represented by Tsvetan Alexiev, CEO, and Radka Peneva, CFO.

The presentation and discussion will focus on FY 2015 financial results and post IPO investments status. Questions to management will be asked on Skype: sirmagroup or email ir@sirma.com and all will get answers from management.

To register for participating in the online event, write to research@elana.net