Results of Atende Group for H1 2014

In the first half-year, the Group recorded slightly lower financial results than a year before. The main reason behind weaker performance was too humble sales caused by deteriorated situation in the market, and in particular in the public sector.

In H1 2014, the consolidated results were as follows: sales revenues totalled PLN 74,446 thousand (fall by 20% yoy), gross profit from sales amounted to PLN 19,733 thousand (increase by 4% yoy), EBITDA was PLN 3,246 thousand (fall by 35% yoy) and net loss equalled PLN 656 thousand compared to profit generated a year earlier in the amount of PLN 1,311 thousand. The results are below the expectations of Atende's Management Board.

Too humble sales, in particular sales to public sector, were a major cause of worse net result. Although the Company did manage to achieve a much better percentage margin on sales, which resulted in a slight rise in gross profit from sales year on year (by 4%), at the same time overheads significantly grew (by approx. 20%), and therefore, the net result proved lightly worse than a year before. Increase in costs was related both to strengthening sales departments within the Group and additional costs of production of new innovative products. The growth of the Group's costs was also caused by the consolidation of two companies, i.e. TrustIT and Phoenix Systems, which was initiated in the first half of the year.