Tech company Solutions 30 to install new management by end of year (updated)

Solutions 30 SE

27/07/2021 18:02

* Targeting new management, control procedures by Q4
    * Revenue up 22.9% in Q2 to 216 mln euros
    * Shares hit by concerns over governance issues
    * Dismissed criticism from hedge fund
    * Confirms outlook for double-digit growth

 (Adds detail and background)
    PARIS, July 27 (Reuters) - French technology services
company Solutions 30  S30.PA , whose shares have fallen this
year on concerns over corporate governance issues, said on
Tuesday it aims to have new management and control procedures in
place by the fourth quarter.
    The company, which has its corporate headquarters in
Luxembourg and shares listed in Paris, issued the update as it
reported a 22.9% increase in second-quarter revenue from a year
ago, to 216 million euros ($255.53 million).
    "Solutions 30 is continuing its progress plan and in early
June launched a transformation plan designed to strengthen its
organisation in terms of governance, risk management and
compliance, with the aim of having new management and control
procedures in place by the fourth quarter of 2021," it said.
    Solutions 30 has dismissed criticism of its business
practices by hedge fund Muddy Waters, which has a "short"
position betting on a future fall in the company's shares.
    In June, the company - whose shares are down around 30%
since the start of 2021 - appointed PKF Audit & Conseil
Luxembourg as its auditor, replacing Ernst & Young.  urn:newsml:reuters.com:*:nL2N2OA0EP
    It has also said it could de-list from the stock market, and
has hired investment bank Rothschild to seek new possible
investors in the company.  urn:newsml:reuters.com:*:nL2N2N81PO
    ($1 = 0.8453 euros)

 (Reporting by Sudip Kar-Gupta; Editing by David Goodman and
Mike Harrison)
 ((sudip.kargupta@thomsonreuters.com; +33 1 49 49 54 52;))