Here are a few announcements from Digitalist. 
1. Management sales 2. Financing announcement 3. Q3 report
DISPOSAL:
Board of Directors: ordinary member Wilhelm Rosenlew
Volume: 520,000 Average price: 0.01823 EUR
“FINANCING ANNOUNCEMENT”
Digitalist Group Plc Inside information 28 October 2024 at 10:30
Digitalist Group Plc rearranges its financing
Digitalist Group Plc (”Digitalist Group” or the ”Company”) has agreed with Turret Oy Ab (”Turret”) on a loan of 1,000,000 euros (the ”Loan”) to strengthen the Company’s working capital. The Company has the right to draw down the Loan in installments by 31 December 2025. The Loan has been agreed on market terms and matures for payment on 31 December 2026.
Turret is the largest shareholder of Digitalist Group.
In accordance with the provisions of the Limited Liability Companies Act regarding related party transactions, Digitalist Group’s Board members Paul Ehrnrooth and Peter Eriksson have not participated in the decision-making related to the Loan.
DIGITALIST GROUP PLC
INTERIM REPORT:
DIGITALIST GROUP PLC STOCK EXCHANGE RELEASE 25 October 2024 at 9:00
Digitalist Group Plc’s management interim review for the period 1 January – 30 September 2024
SUMMARY
July - September 2024 (comparison figures for 2023 in parentheses):
- Net sales 3.6 million euros (3.6 million euros), a decrease of -0.8%.
- EBITDA -0.2 million euros (0.4 million euros*), -5.0% of net sales (12.1%).
- EBIT -0.3 million euros (0.2 million euros*), -8.7% of net sales (6.6%).
- Result for the review period -1.5 million euros* (-0.5 million euros*), -40.8% of net sales (-13.2%)
- Earnings per share -0.00 (-0.00) euros.
- Earnings per share (diluted) -0.00 (-0.00) euros.
*) EBITDA, operating result (EBIT), and net result for the comparison period include a capital gain of 0.6 million euros recognized from the divestment of FutureLab.
January - September 2024 (comparison figures for 2023 in parentheses):
- Net sales 11.5 million euros (12.5 million euros), a decrease of -8.4%.
- EBITDA -1.3 million euros* (-0.5 million euros*), -11.5% of net sales, (-3.9%).
- EBIT -1.7 million euros* (-1.1 million euros*), -14.4% of net sales (-8.8%).
- Result for the review period -4.0 million euros (-2.5 million euros*), -35.0% of net sales (-19.7%).
- Earnings per share -0.01 (-0.00) euros.
- Earnings per share (diluted) -0.00 (-0.00) euros.
- Number of personnel at the end of the review period 126 (138), a decrease of -9%.
*) EBITDA, operating result (EBIT), and net result for the comparison period include a capital gain of 0.6 million euros recognized from the divestment of FutureLab.
CEO’s Review
The third quarter of 2024 has been another step for Digitalist Group toward profitable business. Although there were no significant events this quarter, we see the market situation slowly improving in Sweden. However, Finland’s weak economy continues to affect our business in the region.
Our net sales for the quarter remained at the level of the corresponding period last year, amounting to 3.6 million euros. EBITDA for the third quarter of 2024 was -0.2 million euros, compared to 0.4 million euros in the corresponding period last year, which included a capital gain of 0.6 million euros from the divestment of FutureLab. This highlights the need for continuous operational efficiency and cost management.
A significant highlight of the quarter was the launch of our first AI product, Digitalist Private AI Hub, in September. This platform enables companies to utilize generative AI without compromising on data security or GDPR requirements. We believe this innovative solution gives us a strong position to meet the growing demand for secure AI applications in both the corporate and public sectors. This new offering has already brought us customers such as SandĂĄ and Pinmeto. Other new customers acquired during the third quarter include DNA, the City of Tampere, and Pricer.
Regarding the future, I am cautiously optimistic. Sweden’s improving market situation creates a foundation for growth, and we are committed to addressing Finland’s challenges with ongoing measures and a continuous focus on operational efficiency.
I express my sincere thanks to all our employees for their dedication and hard work. Together, we are moving toward a stronger future for Digitalist Group.
/CEO Magnus Leijonborg
FUTURE OUTLOOK
In 2024, net sales and EBITDA are expected to decrease compared to 2023.
EVENTS AFTER THE REVIEW PERIOD
Digitalist Group Plc lowers its previous guidance on the development of net sales and EBITDA on 17 October 2024
Digitalist Group Plc (“the Company”) lowers its previous guidance on the development of net sales and EBITDA. The new guidance is:
In 2024, net sales and EBITDA are expected to decrease compared to 2023.
The Company’s previous guidance was:
In 2024, net sales are expected to remain at the same level and EBITDA is expected to develop positively compared to 2023.
Although the third-quarter result has improved compared to the beginning of the year and we are cautiously optimistic about the fourth quarter, we do not expect to reach last year’s reported EBITDA, which included 1.0 million euros of other operating income. Operationally, without the impact of this other income, we expect the current financial year to be stronger than the previous year.
Stock exchange releases can be read on the company’s website at https://digitalist.global/investors/releases
Despite the efficiency measures and financing arrangements implemented, the cash flow for the next 12 months is predicted to likely be negative. However, at the time of publishing the interim report, the company estimates that its working capital is sufficient for the needs of the next 12 months, taking into account the support provided by the main owner if necessary.
DIGITALIST GROUP PLC
Board of Directors