Siili Solutions Plc, Half-year report, 1 January–30 June 2025 (unaudited)

Financial Performance - Revenue for the first half of 2025 was EUR 57.5 million, a decline of 2.8% year-on-year, attributed to challenging market conditions and fewer working days compared to the previous year [3][12] - Adjusted EBITA for the same period was EUR 2.6 million, representing 4.5% of revenue, down from 5.6% in the previous year [8][15] - The second quarter revenue was EUR 27.6 million, reflecting a decline of 5.9% year-on-year, with adjusted EBITA at EUR 1.3 million, or 4.7% of revenue [8][12] Strategic Developments - The company is implementing a data and AI-driven strategy, having taken significant steps in the first half of the year to support clients in their AI transformation [4][10] - The Advisory business area launched in March 2025 has started strongly, indicating a positive response to the updated operational model [6][8] - The company has strengthened its position in the security-critical sector through strategic partnerships with organizations such as NATO Communications and Information Agency [6][8] Employee and Operational Changes - The average number of employees during the reporting period was 921, a decrease from 987 in the previous year, reflecting efficiency-improvement measures [14][15] - Over 400 employees completed AI training, enhancing the company's expertise in AI-powered software development [7][8] - The company has acquired a majority stake in Integrations Group Oy, further strengthening its competence profile [7][8] Financial Outlook - Revenue for 2025 is projected to be between EUR 108 million and EUR 130 million, with adjusted EBITA expected to range from EUR 4.7 million to EUR 7.7 million [2][3] - The company aims to maintain a net debt-to-EBITDA ratio below two and plans to pay dividends corresponding to 30-70% of net profit annually [9][10] Cash Flow and Financing - Cash flow from operations decreased significantly to EUR 1.5 million, a decline of 69.6% year-on-year, primarily due to reduced net profit and trade payables [18][20] - The company reported cash flow from investing activities of EUR -5.3 million, which included payments for acquisitions [19][20] - At the end of the reporting period, cash and cash equivalents totaled EUR 15.9 million, with EUR 2.5 million in unused credit facilities [21][22]