22.09.23 13:17:00

Public disclosure of inside information according to article 17 MAR

Creactives Group SpA: The BoD examined and approved the draft annual financial statements and the consolidated group financial statements

as at 30 June 2023

Verona (pta/22.09.2023/13:17 UTC+2)

Value of production increased to €7,0M – "Annual Recurring Revenue" (ARR) up 31% to €4,8M – Direct and indirect sales up 24% – International turnover at 89%
The Board of Directors resolves to submit to the Shareholders' Meeting the proposal for the delisting of the Company's shares from the multilateral trading system of the Vienna Stock Exchange

Consolidated financial highlights – 30 June 2023 vs. 30 June 2022

VALUE OF PRODUCTION EQUAL TO EUR 7,0M COMPARED TO EUR 6,0M
REVENUE FROM SALES* EQUAL TO EUR 5,5M COMPARED TO EUR 5M: OF WHICH DIRECT EQUAL TO EUR 4,7M COMPARED TO EUR 3,8M AND INDIRECT EQUAL TO EUR 657K COMPARED TO EUR 530K
"ANNUAL RECURRING REVENUE" (ARR)** EQUAL TO EUR 4,8M COMPARED TO EUR 3,7M
EBITDA EQUAL TO EUR 390K COMPARED TO EUR 520K
LOSS EQUAL TO EUR -1,1M, INCLUDING ABOUT EUR 320K IN EXTRAORDINARY TAXES, COMPARED TO EUR -359K
PFN (NET DEBT) EQUAL TO EUR 532K COMPARED TO EUR 1,8M AS OF 31 DECEMBER 2022
SHAREHOLDERS' EQUITY EQUAL TO EUR 2,1M COMPARED TO EUR 1,8M

* Including Work in Progress (WIP).
** "Annual Recurring Revenue" (ARR) is the total anticipated revenue a business expects to earn from its subscription-based customers in a year, reflecting the recurring nature of subscription contracts.

Paolo Gamberoni, Chairman of the Board of Creactives Group, comments, "We are very pleased with the results of the last period. The value of production increased to 7 million euros, an increase of 1 million over the previous year, despite the initial challenges related to the pandemic and the complexity of the international situation. In the second half of the year, the value of production grew steadily, but we faced an increase in direct costs, especially those related to personnel, to support the growing sales volume. It is important to note that our revenues come mainly – 89% – from international customers, with 11% from Italian companies. In the last fiscal year, consolidated revenues grew 11% year-on-year to 5.528.275 euros. Direct and indirect sales both increased by 24%. In addition, ARR ("Annual Recurring Revenue") increased 31% year-on-year to 4.825.399 euros. During the year and in the following months, we continued to expand our presence in the market. We are proud of our achievements and ready to face the challenges and opportunities ahead."

Verona, September 22, 2023. Creactives Group S.p.A. ("Creactives Group" or the "Company") (ISIN IT0005408593 - ticker: CREG), an international company and Innovative SME, listed on Euronext Growth Milan – Professional Segment ("Euronext Growth Milan Pro") and on the Direct Market of the Vienna Stock Exchange, that develops Artificial Intelligence technologies to address real-life business problems in the Supply Chain, examined and approved the Company's draft statutory financial statements as well as the consolidated group financial statements as of June 30, 2023. Please note that the Company closes its annual financial year in June.

Comment on consolidated results

Value of production increased to 7 million euros, up 1 million euros from the previous year, although the first half of the year suffered from delays in the acquisition of new contracts due to the effects of the pandemic and the complex international situation. The number of customers increased from 41 to 45 during the period.

The second half of the year saw steady growth in the value of production, but also an increase in direct costs, including personnel costs of 1 million euros, with an increase of 0,4 million euros in personnel costs. This increase in costs is due to the company's targeted investments to address business development.

Revenues come mainly from international customers. The percentage of revenues from Italian companies stands at 11%, compared to 89% distributed among European or non-EU countries.

In FY22-23, consolidated revenues including WIP amounted to 5.528.275 euros, an increase of 11% from the previous year. Direct revenues increased by 24%, from 3.774.214 euros to 4.661.936 euros. Indirect revenues were up 24%, from 530.497 euros to 657.232 euros.

Revenues from sales and services30.06.2023%30.06.2022%Var. %.
(Figures in Euro/000)
Subscription Revenues (Saas/Recurrent)2.86853,9%2.20651,2%29,99%
Professional Services Revenues2.14940,4%1.58536,8%35,61%
Revenues from maintenance3025,7%51411,9%-41,21%
Revenues from licensing---- 0,00%
Total 5.319100,00%4.305100,00%23,56%

ARR ("Annual Recurring Revenue") increased about 31% from the previous year, from 3.690.970 euros to 4.825.399 euros.

EBITDA stood at 390.441 euros, registering a decrease of about 25% compared to the previous year. This decrease was mainly due to the significant increase in personnel costs – up from 2.789.103 euros to 3.253.020 euros – and services – up from 2.107.658 euros to 2.785.322 euros – especially those related to information technology, third-party services resold, travel expenses, and consulting related to the company's listing and expansion (commercial costs). The average number of employees increased from 51 to 56 during the period.

The consolidated net income reported a negative value of -1.062.984 euros, compared to -359.365 euros in the previous year. This negative result was influenced not only by a reduction in EBITDA of approximately 130.000 euros, as mentioned earlier, but also by higher depreciation and amortization charges of approximately 250.000 euros and an adjustment related to tax credits related to previous years of approximately 320.000 euros.

The NFP of the group as of 30.06.2023 is 532.145 euros (debt), increased by 36% compared to 30.06.2022, decreased by 1,3 million euros compared to 1.847.888 euros (debt) as of 31.12.2022. The change recorded in NFP compared to the previous year is due to a decrease in liquidity and a decrease in financial debt, albeit not proportionally. During the period from 31.12.2022 to 30.06.2023, several factors influenced the NFP:

  • The net capital increase of listing expenses that brought in new resources of about 0,9 million euros.
  • The distribution of revenues, concentrated in the second half of the year, resulted in a partial recording of related cash flows.
  • Investments increased as planned at the time of listing (investments made during the year amounted to approximately 1,7 million including listing costs).
  • Working capital did not change significantly, presenting an increase in both accounts receivable and accounts payable related to the increase in business.

Significant events that occurred during and after the fiscal year and significant events that occurred between the end of the fiscal year and the publication of this press release

  • In September 2022, Creactives successfully obtained ISO/IEC 27001:2013 (ISO 27001) certification from BSI, ensuring information security.
  • In September 2022, Creactives Group participated in the "NEXT GEMs" conference in Milan, an event for listed companies with capitalization of less than 100 million euros.
  • In October 2022, Creactives was included in Spend Matters' "50 Providers to Watch" list, recognized for its technology in managing savings opportunities in supply chains.
  • In December 2022, Creactives Group announced a revision of the terms for granting free shares to shareholders.
  • In December 2022, Creactives obtained ISO/IEC 9001:2015 (ISO9001) certification from BSI for its quality management system.
  • On 1 February 2023, the Ordinary Shareholders' Meeting of Creactives Group appointed a new director, Dr. Saverio Merlo.
  • On 13 February 2023, Creactives reached an agreement with the Internal Revenue Service on tax credits for research and development expenses.
  • In March 2023, Creactives Group was listed on Euronext Growth Milan – Professional Segment, with an initial capitalization of about 21,5 million euros and a raise of about 1 million euros.
  • On 9 May 2023, Creactives Group launched a placement reserved for qualified investors for 177.000 shares.
  • On 11 May 2023, the placement was closed early with all new shares being subscribed for at a price of 1,75 euros per share with an additional raise of approximately 0,3 million euros, bringing the share capital of Creactives Group to 274.956 euros and the free float to 19,44%.
  • The signing of the strategic agreement between Creactives S.p.A. and Accenture was announced on 21 September. This synergistic partnership combines their expertise to improve data efficiency in the areas of procurement, supply chain management, mergers and acquisitions, and the transition to new information systems.

Coverage of the loss of Creactives Group SpA

The Board of Directors decided to propose to the Shareholders' Meeting to carry forward the loss of 435.736 euros of Creactives Group SpA.

Foreseeable development of management

In the coming year, the company will focus efforts on acquiring new partnerships and developing the next phase of go-to-market, with the goal of generating a positive impact on growth in terms of revenue and margins. It will continue to invest in AI technology, in collaboration with technology partners, to optimize future developments and integration with the SAP world. The company aims to expand its presence in new industries in Europe and to target opportunities beyond the European market, especially in North America. Despite global geopolitical and financial uncertainties, the outlook remains positive due to increased recurring revenues.

Calling of ordinary shareholders' meeting and deposit of documents

The Board of Directors resolved to convene the Ordinary Shareholders' Meeting on 25 October 2023, on first call, to: (a) the approval of the financial statements for the year and the allocation of the result for the year; (b) the renewal of the Board of Statutory Auditors; (c) the appointment of the independent auditors; and (d) the approval of the delisting from the multilateral trading system organized and managed by the Vienna Stock Exchange, on which the Company's shares are listed to date. In the opinion of the Board of Directors, a concentration of transactions on a single multilateral trading system (Euronext Growth Milan) may in fact bring benefits to the Company both in terms of marketability of the stock and price formation, as well as a simplification of disclosure requirements and consequent cost advantages.

The Company will notify, in accordance with the timeframes provided for in current regulations, the terms and procedures for attending the Shareholders' Meeting, which will be held in accordance with the provisions of the pro tempore regulations.

Within the deadlines stipulated by applicable regulations, the notice of the Shareholders' Meeting will be published and the financial statements for the year ended 30 June 2023 and the consolidated financial statements 2023, as well as the directors' explanatory report to the Shareholders' Meeting on the proposals concerning the items on the agenda will be made available to the public at the Company's registered office, as well as made available on the Company's website www.creactivesgroup.com (Investor relations section) and in any further manner required by applicable laws and regulations.

The financial statements are attached.

This press release is available in the Investor Relations section at www.creactivesgroup.com.

(end)

Emitter: Creactives Group SpA
Piazzale Luigi Cadorna 6
37126 Verona
Italy
Contact Person: Massimo Grosso
E-Mail: investor.relations@creactivesgroup.com
Website: www.creactivesgroup.com
ISIN(s): IT0005408593 (Share)
Stock Exchange(s): Vienna Stock Exchange (Vienna MTF)

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