Current Report 03/2022
21/03/2022 • 19:12
Subject:
Recognition of an impairment write-off
Legal basis:
Art. 17 sec. 1 MAR – inside information.
Content:
The Management Board of R22 S.A. with its registered office in Poznań [“Company”] announces that on 18.03.2022 it decided to recognise a partial impairment write-off of the goodwill recognised upon the acquisition of Blugento S.A. and the [“Blugento Platform”] software [“Write-off”]. The decision to recognise the Write-off is related to a change in the R22 Group’s strategy in the area of providing SaaS tools for operating online stores. In its strategy, the R22 Group assumes the development of tools based on open-source solutions, in particular WooCommerce, within its subsidiary cyber_Folks S.A., in which the Company holds 100% of the share capital. Accordingly, the company assumes a reduction in expenditure on development of the Magento-based [“Blugento Platform”] software. As at the publication date of this report, the Group held a 45,84% interest in the share capital of Blugento S.A. Recognition of the Write-off will reduce the R22 Group’s operating profit for Q4 2021 by PLN 2,2 million and net profit attributable to the parent company by PLN 1,0 million. The Write-off has no impact on EBITDA and, due to its non-cash nature, has no impact on cash flows.