Softline AG

euro adhoc: Softline AG
Exits the direct sales business in UK - Depreciations influence the annual loss (E)

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Exits the direct sales business in UK - Depreciations influence the annual loss

Softline continues focus on core business in UK

Offenburg, 5 September. Softline AG of Offenburg has decided to separate from Rapid, the British subsidiary operating in direct sales, to focus more on the profitable core business. Rapid Group plc of Godstone near London will be sold retroactively as of 1 September by way of a management buy-out. By taking this strategic decision, Softline exits from direct sales in Great Britain in order to concentrate more on indirect sales, as announced previously. This decision will have positive effects on future profit results of the Softline Group which, with Softline UK, will continue to be present in the important British market. Rapid, taken over by Softline at the end of 2000, reported net losses for the financial year 2001/02 (30 June) of approx. 0.7m Euro, with sales totaling approx. 17m  Euro. Investments in Rapid will be written off as per 30 June 2002.

The continuing recession, which shows no sign of improving in the IT and software markets, left its mark in the figures for the financial year 2001/02 (30 June): provisional figures show a negative EBIT of 11,9 (minus 6.4) million Euro, with sales totaling 88.3 (previous year: 85.6) million Euro. Instant write-offs on purchase price and loan resulting from the sale of Rapid loaded the result with approx. 1.0m Euro. The total net loss for the year is minus 10.8 (minus 7.3) million Euro. Softline continues to have a solid cash position 12.2 million Euro (corresponding to 1.20 Euro per share) with a comfortable equity ratio of 62 percent of the balance sheet total.

On the occasion of the press conference on financial statements on 26 September in Frankfurt, the board will report on the continued strategic orientation, the positive impact of the cost cutting program extended in June this year, and on the perspectives for the current financial year 2002/03 (30 June).

Press Contacts;Softline AG;Erik Parkner;Tel: 0049-781-9293-151;E-Mail:

end of announcement            euro adhoc 05.09.2002

Further inquiry note: Herr Erik Parkner

Branche: Economy, Business & Finance
ISIN:      DE0007206005
WKN:        720600
Index:    Nemax
Börsen:  Frankfurter Wertpapierbörse / Neuer Markt
              Baden-Württembergische Wertpapierbörse / free trade
              Bayerische Börse / free trade
              Berliner Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Hamburger Wertpapierbörse / free trade
              Niedersächsische Börse zu Hannover / free trade

Weitere Meldungen: Softline AG

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