Softline: 4Q21 results, 1Q22 outlook
smartmoney.oneBUYSoftline has released its financial results for 4Q21 (ended 31 March 2022). As expected, the Russian market environment had a negative impact on profitability.For us it was more important to see that the Russian IT market ( which accounts for half of the company's turnover) remains viable as reflected in the company’s positive outlook for 1Q22 (15% group-wide growth, positive EBITDA, including Russia).Withdrawal of competitors such as Crayon and SoftwareONE from the Russian market will boost Softline's market share and offset the likely decline of the IT market in 2022.In our view, the truly international company with Russian roots has avoided sanctions risks.Further implementation of the strategy looks justified.As of 31 March 2022, the group had $335 mln in cash, or $398 mln including the Crayon stake.