Proact claims that delivery delays are behind a dramatic decline in its Systems sales in the UK.
The outfit claims that chip shortages continue to affect the business on a pan-European level and its UK revenues tumbled by 19 per cent year on year.
The decline was driven by a 42 percent year-on-year drop in so-called “System” revenues, which Proact claims were a result of delivery delays linked to ongoing chip shortages.
Adjusted EBITDA for its UK business also saw steep declines, falling 73 percent as a result of lower System sales.
Services revenues fared substantially better, with UK sales up eight percent during the fourth quarter with support revenue growing by eight per cent and cloud services revenue growing by five per cent.
For the full year ending December 2021, UK sales grew by four percent, thanks to a nine percent increase in services revenues while System sales decreased by aper cent to SEK 309m.
On a group level, Proact’s revenues decreased by four per cent in the fourth quarter, driven by a 16 percent drop in Systems sales. Adjusted EBITDA fell by 14 percent.
Despite the shortfalls, CEO Jonas Hasselberg said Proact enters 2022 in a strong position.
“During the fourth quarter we have seen a higher demand in the systems business than earlier under the year. However, revenues were significantly affected by delivery delays at several of our suppliers.”
Hasselberg explained that although Proact saw “a certain impact” of semiconductor shortages earlier in the year, it wasn’t until December that the group experienced a significant effect on large parts of its offering within storage and networking products.
“We are thus entering 2022 with a larger backlog than normal and a good underlying demand, which leaves us well positioned for the coming year,” he added.
