REG - Substrate AI-Class B - Forecast Update - Re-released

Substrate Artificial Inteligence SAAnnouncement

28/12/2023 07:00

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RNS Number : 0492Y  Substrate Artificial Intel - B    28 December 2023

The announcement for Substrate Artificial Inteligence S.A. originally released
on 27 December 2023 at 17:00 hours under RNS No 9728X has been re-released in
the interests of market clarity.

The announcement text is unchanged and is reproduced in full below.

27 December 2023

SUBSTRATE ARTIFICIAL INTELIGENCE SOCIEDAD ANONIMA

("Substrate AI" or the "Company")

FORECAST UPDATE

Substrate AI (AQUIS: SAI/SAI.B) announces that, due to the new acquisitions
made by the Company during the last half of 2023, the Board of Directors, at
its meeting held on 22 December  2023, approved new projections for 2023
based on its organic growth as a result of the development of its current
businesses and inorganic growth with the incorporation of the new acquisitions
into the Group.

In this regard, the projections approved for the 2023 financial year are as
follows:

                   Euros
                   2023 original  2023 new
 Revenues          5.937.770      6.500.000
 Other revenues    2.250.000      4.000.000
 Total revenues    8.187.770      10.500.000
 Staff costs       (4.800.348)    (3.366.942)
 OPEX              (3.993.975)    (10.160.369)
 Other results     -              -
 EBITDA            (606.554)      (3.027.311)
 Amortization      (3.330.547)    (2.269.074)
 Financial result  (63.371)       (1.012.006)
 EBT               (4.000.472)    (6.308.391)

 

 Revenue

Consolidated turnover is projected to increase due to the integration of new
businesses acquired during the current year, in addition to the organic growth
projected for 2023.

Total revenues are also growing due to the increase in work on the development
of new solutions and products in the field of R&D.

Expense

Personnel expenditure is significantly reduced compared to previous forecasts
due to the Company's ability to generate more revenue with lower expense.

On the other hand, the rest of the operating expenses exceed those previously
published in these forecasts, taking into account, above all, the cost of
acquisitions of new businesses and the sharp increase in the development of AI
products and solutions.

EBITDA

In terms of EBITDA, despite the increase in revenues and the reduction in
personnel expenses, EBITDA is projected to worsen compared to previous
projections due to the increase in other operating expenses derived from new
acquisitions.

Amortizations

Finally, it should be noted that the new projections include a lower
amortization due to the impairment of goodwill recorded in 2022, which will
allow the Group to obtain a positive result earlier than expected.

 

This announcement contains information which, prior to its disclosure, was
inside information as stipulated under Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310 (as amended). Upon the publication
of this announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.

 

DISCLAIMER

 

This announcement may contain forward-looking statements. The forward-looking
statements include, but are not limited to, statements regarding the
Company's, or the Directors' expectations, hopes, beliefs, intentions or
strategies regarding the future. In addition, any statement that refers to
projections, forecasts or other characterisations of future events or
circumstances, including any underlying assumptions, is a forward-looking
statement. The words "anticipate", "believe", "continue", "could", "estimate",
"expect", "intend", "may", "might", "plan", "possible", "potential",
"predict", "project", "seek", "should", "would" and similar expressions, or in
each case their negatives, may identify forward-looking statements, but the
absence of these words does not mean that a statement is not forward-looking.

 

Forward-looking statements include all matters that are not historical facts.
Forward-looking statements are based on the current expectations and
assumptions regarding the Company, the business, the economy and other future
conditions. Because forward-looking statements relate to the future, by their
nature, they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. Forward-looking statements are
not guarantees of future performance and the Company's actual financial
condition, actual results of operations and financial performance, and the
development of the industries in which it operates or will operate, may differ
materially from those made in or suggested by the forward-looking statements
contained in this announcement. In addition, even if the Company's financial
condition, results of operations and the development of the industries in
which it operates or will operate, are consistent with the forward-looking
statements contained in this announcement, those results or developments may
not be indicative of financial condition, results of operations or
developments in subsequent periods. Important factors that could cause actual
results to differ materially from those in the forward-looking statements
include regional, national or global, political, economic, social, business,
technological, competitive, market and regulatory conditions.

 

Any forward-looking statement contained in this announcement applies only as
of the date of this announcement and is expressly qualified in its entirety by
these cautionary statements. Factors or events that could cause the Company's
actual results to differ may emerge from time to time, and it is not possible
for the Company to predict all of them. The Company expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to any
forward-looking statements contained in this announcement to reflect any
change in its expectations or any change in events, conditions or
circumstances on which any forward-looking statement contained in this
announcement is based, unless required to do so by applicable law, the Aquis
Rules, the Disclosure Guidance and Transparency Rules of the FCA or the UK
Market Abuse Regulation.

 

 

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