(Alliance News) - Civitanavi Systems Spa announced Thursday that its board of directors approved the half-year report as of June 30, reporting a loss of EUR974,000 from a profit of EUR2.0 million as of June 30, 2022.

In contrast, the adjusted figure shows growth of 38 percent to an adjusted profit of EUR3.7 million from the adjusted profit of EUR2.7 million in the same period last year.

The negative figure is attributable, the company explains, to nonrecurring costs mainly related to the majority shareholder's stock option plan, or EUR4.4 million present in personnel costs.

Revenues amounted to EUR21.7 million up 60 percent from EUR13.6 million in the first half of 2022. The increase can be attributed to increased product sales, which doubled from 2022 due to the boost of the A&D and Industrial sectors. The company clarifies in a note that the "UK subsidiary, being in the start-up phase, did not contribute to the revenue count for the period, which is therefore all under Civitanavi Systems."

Adjusted Ebitda amounted to EUR4.4 million, up 12 percent from EUR4.0 million in the first half of 2022. Despite the increase, margins for the half-year were down from 29% to 20%, mainly due to the sales mix, which saw a reduction in engineering services revenues.

Ebitda is negative EUR239,000 compared to EUR3.3 million as of June 30, 2022.

Adjusted Ebit was EUR3.6 million, up 6.0 percent from EUR3.5 million in the same period last year. Ebit, on the other hand, was negative EUR941,000 compared to EUR2.9 million as of June 30, 2022, again, as with Ebitda, due to nonrecurring costs.

Net financial position is EUR13.5 million down from EUR24.5 million as of December 31, 2022.

Backlog is EUR33.3 million up 37 percent from EUR24.3 million as of Dec. 31, 2022.

The company also confirmed the guidance for the end of the year: expected revenues in the EUR42-EUR46 million range and an adjusted Ebitda margin of 29%, in line with the expectations already communicated in the 2023 budget.

Civitanavi's stock is up 1.0 percent at EUR3.98 per share.

By Chiara Bruschi, Alliance News reporter

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