Hybrid Software Group PLC Annual Report 2022 30 31 Hybrid Software Group PLC Annual Report 2022 Hybrid Software Group Strategic report Governance Financial statements Other information IFRS reported net profit from continuing operations is adjusted as follows: In thousands of euros 2022 2021 IFRS reported net profit from continuing operations Adjustments to operating result above Tax effect of above-mentioned adjustments 1,300 (168) (187) 4,914 2,538 (1,062) Total adjustments to reported net profit from continuing operations (355) 1,476 Adjusted net profit from continuing operations 945 6,390 Adjusted net basic earnings per share for continuing operations Adjusted net diluted earnings per share for continuing operations €0.03 €0.03 €0.20 €0.20 EBITDA EBITDA is also reported as an alternative measure of profit and is calculated by adding back interest, tax, depreciation and amortisation to net profit from continuing operations. EBITDA from continuing operations was €10.90 million (2021: €12.21 million) and is reconciled to IFRS reported net profit from continuing operations as follows: In thousands of euros 2022 2021 IFRS reported net profit from continuing operations Net finance expenses Tax charge / (credit) Depreciation Amortisation 1,300 390 535 1,559 7,111 4,914 463 (349) 1,394 5,789 EBITDA from continuing operations* 10,895 12,211 As a % of revenue from continuing operations 23% 25% Alternative performance measures continued... Adjusted operating result and net profit continued... In thousands of euros Reported 2022 CER 2022 Reported 2021 Revenue from continuing operations Adjusted operating result and net profit The Board believes that evaluating the Group’s ongoing results may not be as useful if it is limited to reviewing only IFRS financial measures, particularly because management uses adjusted financial information to evaluate its ongoing operations, for internal planning and forecasting purposes and for the measurement of performance related bonuses. The Group does not suggest that investors should consider these adjusted financial results in isolation from, or as a substitute for, financial information prepared in accordance with IFRS. The Group presents adjusted financial results when reporting its financial results to provide investors with additional performance measures to evaluate the Group’s results in a manner that focuses on what the Group believes to be its underlying business operations. The Group’s management believes that the inclusion of adjusted financial results provides consistency and comparability with past reports. IFRS reported operating profit or loss from continuing operations is adjusted as follows: In thousands of euros 2022 2021 IFRS reported operating profit from continuing operations Add share-based remuneration expense (see note 30) Deduct capitalised development expense (see note 16) Add amortisation of capitalised development Add amortisation of acquired intangibles Add other operating expenses (see note 8) Deduct other income (see note 9) 2,274 - (3,981) 1,974 5,137 3 (3,301) 4,770 15 (3,396) 1,003 4,769 180 (33) Total adjustments to reported operating profit from continuing operations (168) 2,538 Adjusted operating profit from continuing operations 2,106 7,308 ALTERNATIVE PERFORMANCE MEASURES Alternative performance measures and adjusted financial information has not been audited by the Group’s auditors. Revenue To eliminate the impact of currency movements when comparing the current year to the comparative, the current year is restated at the comparative’s actual exchange rates. At constant exchange rates (“CER”) (2022 restated at 2021 exchange rates): 46,693 45,305 48,562 *Included within this figure in the year ended 31 December 2022 is other income of €3,297,000 (2021: €nil). See Note 9 ‘Other Income’ for further details.
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