POLARIS IT GROUP S.A. Quarterly report for the third quarter of
2022.
The period from July 1 to September 30, 2022.
Warsaw, November 14, 2022.
Quarterly report for the third quarter of 2022.
Table of contents | |||
b. | Consolidated income statement.................................................................................................................... | 6 | |
c. | Consolidated statement of changes in equity .......................................................................................... | 8 | |
d. | Consolidated cash flow statement................................................................................................................ | 9 | |
3. | Quarterly separate financial statements ..................................................................................................... | 12 | |
a. | Separate balance sheet................................................................................................................................... | 12 | |
b. | Separate income statement.......................................................................................................................... | 14 | |
c. | Separate statement of changes in equity................................................................................................ | 15 | |
d. | Separate cash flow statement...................................................................................................................... | 16 | |
4. | Information on the principles adopted in the preparation of the report....................................... | 19 | |
5. | Shareholding ........................................................................................................................................................... | 22 | |
6. | Other information ................................................................................................................................................. | 22 | |
a. | Information on the impact of COVID-19 ................................................................................................. | 22 | |
b. | Information on employment........................................................................................................................ | 22 | |
c. | Research and development activities ...................................................................................................... | 23 | |
d. | Information on the capital group............................................................................................................... | 23 | |
7. | Contact information ............................................................................................................................................. | 23 |
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Quarterly report for the third quarter of 2022.
1. Management Letter to Shareholders
Dear Shareholders!
We present the financial results of Polaris IT Group SA after three quarters of 2022. The Group generated sales revenues of PLN 34.9 million and net profit of PLN 7.8 million. The parent company earned revenues of PLN 7 million and net profit of PLN 10,000.
The results were impacted by the sale in the first quarter of 2022 of a license for the Enclosed Learning online learning system to a U.S.-based customer for €1.5 million, of which the subsidiary iSRV Zrt. accounted for €1.425 million and the parent company Polaris IT Group SA for €75,000.
In March 2022, iSRV Zrt. entered into an agreement with T-Systems Hungary Zrt and is providing technical solutions and IT services to be used in public health care, worth about PLN 12.5 million. The project is currently underway, with the first revenues already visible in the results of the second quarter of 2022. By mid-August 2022, the project was more than 80% complete, and the company received a similar share of revenues. Completion of the project has been pushed back to August 2023, from the original plans (end of 2022 ).
In April 2022, iSRV Zrt. entered into an agreement with Pannon Work Zrt. one of the largest recruitment agencies in Hungary, which commissioned the development of a custom CMS system. Expected revenues from this contract will amount to 600 million forints (approx. PLN 7.3 million), the order will be completed by the end of 2022.
In May 2022. , the second consortium involving iSRV Zrt. entered into a framework agreement with the Hungarian Digital Government Agency Ltd. - a Hungarian government agency that handles IT procurement. Entering into a framework agreement with HDGA allows the consortia to bid for contracts. iSRV Zrt. is preparing for tenders as part of two consortiums, seeking to leverage its purchasing capabilities, business contacts in China and its own growth opportunities. In July 2022, we expanded ISRV Zrt's ability to develop unique server and communication tools by purchasing high-value licenses. We hope that the investment in both projects will increase the Company's revenue-generating potential. We expect significant progress on these two tenders once Hungary reaches an agreement on the use of EU funds.
At the end of 2021, we completed the project to build an electroplating plant. Unfortunately, we are now assessing that it is not profitable to start it up, due to the significant increase in electricity prices and labor shortages. Since the conditions of the investment do not allow us to partially lease it, and it is not profitable to operate it ourselves, we have decided not to start up the electroplating plant.
We continue to invest in the design and development of new products, seeking to take advantage of available grant funding. In the first half of 2022, iSRV secured a grant of 125 million forints (about PLN 1.56 million) for the development of production capacity in SMT technology.
I invite you to read the report.
Gábor Kósa
President of the Management Board of Polaris IT Group SA
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Quarterly report for the third quarter of 2022.
2. Quarterly consolidated financial statements
a. Consolidated balance sheet
ASSETS | Q3 2022 | Q3 2021 | |
A. FIXED ASSETS | 80 086 614,18 | 76 521 779,41 | |
I. Intangible assets | 62 431 241,36 | 17 495 985,59 | |
1. costs of completed development work | 8 715 963,55 | 13 008 158,89 | |
2. goodwill | |||
3. other intangible assets | 6 469 067,56 | 4 487 826,70 | |
4. advances for intangible assets | - | - | |
II. Goodwill of subsidiaries | 47 246 210,25 | 47 729 449,35 | |
1. goodwill - subsidiaries | 47 246 210,25 | 47 729 449,35 | |
2. goodwill - jointly controlled entities | - | - | |
III. Tangible fixed assets | 17 655 372,82 | 11 296 344,47 | |
1. fixed assets | 17 655 372,82 | 439 277,34 | |
2. fixed assets under construction | 9 228 658,71 | 10 857 067,13 | |
3. advances for fixed assets under construction | - | - | |
IV. Long-term receivables | - | - | |
1. from related parties | - | - | |
2. from other entities in which the entity has an equity | - | - | |
interest | |||
3. from other entities | - | - | |
V. Long-term investments | - | - | |
1. real estate | - | - | |
2. intangible assets | - | - | |
3. long-term financial assets | - | - | |
4. other long-term investments | - | - | |
VI. Long-term accruals | - | - | |
1. deferred income tax assets | - | - | |
2. other accruals | - | - | |
B. CURRENT ASSETS | 16 794 791,88 | 14 044 366,45 | |
I. Stocks | 9 589 735,59 | 3 874 060,50 | |
1. materials | - | - | |
2. semi-finished products and work in progress | - | - | |
3 Finished products | - | - | |
4. goods | 9 589 735,59 | 3 874 060,50 | |
4 |
Quarterly report for the third quarter of 2022.
ASSETS | Q3 2022 | Q3 2021 |
5. advances for supplies and services | - | - |
II. Short-term receivables | 7 142 451,80 | 9 298 118,46 |
1. receivables from related parties | - | - |
2. receivables from other entities in which the entity | - | - |
has an equity interest | ||
3. receivables from other entities | 7 142 451,80 | 9 298 118,46 |
III. Short-term investments | 56 331,18 | 541 155,01 |
1. short-term financial assets | 56 331,18 | 541 155,01 |
2. other short-term investments | - | - |
IV. Short-term prepayments and accruals | 6 273,31 | 331 032,48 |
C. Payments due to share capital | - | - |
D. Own shares (stocks) | - | - |
TOTAL ASSETS | 96 881 406,06 | 90 566 145,86 |
LIABILITIES | Q3 2022 | Q3 2021 | |
A. EQUITY (FUND) | 56 834 485,61 | 59 319 054,01 | |
I. Primary capital (fund) | 5 812 000,00 | 5 812 000,00 | |
II. Reserve capital (fund), including: | 49 500 000,00 | 49 500 000,00 | |
III. Capital (fund) from revaluation | - | - | |
IV. Other reserve capitals (funds) | - | - | |
V. Foreign exchange differences on translation | |||
VI. Retained earnings (loss) from previous years | (6 091 088,27) | (79 547,18) | |
- consolidation adjustments (technical record) | (209 480,74) | (10 848 285,95) | |
VII. Net profit (loss) | 7 823 054,62 | 14 934 887,14 | |
VII. Deductions from net profit during the fiscal year | - | - | |
B.MINORITY CAPITALS | - | - | |
C. NEGATIVE GOODWILL | - | - | |
I. Negative value - subsidiaries | - | - | |
II. Negative value - partially owned subsidiaries | - | - | |
D. LIABILITIES AND PROVISIONS FOR LIABILITIES | 40 046 920,45 | 31 247 091,85 | |
I. Provisions for liabilities | 16 566 871,37 | 14 480 199,04 | |
1. deferred tax liability | 16 566 871,37 | 14 480 199,04 | |
2. provision for pensions and similar benefits | - | - | |
3. other provisions | - | - | |
II. Long-term liabilities | - | 20 885,03 | |
1. to related parties | - | - | |
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Polaris IT Group SA published this content on 14 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2022 13:33:10 UTC.
