Chairman’s letter to shareholders
The Board is unanimous in its confidence in SoftwareOne's strategic direction and leadership. Together with the Executive Board, we remain focused on capitalising on the fast-growing opportunities in cloud, data & AI and sharpening execution to deliver superior returns.
Adam Warby, Chairman of the Board of Directors
Dear shareholders,
As I reflect on the year that has passed, I am writing to you under circumstances that, while challenging, have been met with resilience and strategic focus by SoftwareOne. The performance of SoftwareOne in 2023 speaks to the strength of our business model and the diligent efforts of our team amidst a complex economic landscape.
Returns to shareholders
In 2023, SoftwareOne continued to demonstrate solid growth and financial discipline. Revenue increased by 8.0% YoY in constant currency to CHF 1,010.9 million. Adjusted EBITDA corresponded to CHF 245.2 million, with a margin of 24.3%.
In light of this solid performance and SoftwareOne's robust balance sheet, the Board of Directors (BoD) will propose to shareholders a dividend of CHF 0.36 per share for 2023 at our upcoming Annual General Meeting (AGM), representing a payout ratio of 50.5% of adjusted profit for the year. The proposed dividend for 2023 marks a consistent approach to shareholder returns, building on the previous year's dividend of CHF 0.35 per share. This is the fourth consecutive dividend increase since our IPO in late 2019.
Strategic review
The past twelve months at SoftwareOne have not only seen financial growth, but also increased external interest in the company. This attention from potential investors acknowledges the progress the company has made and the intrinsic value of SoftwareOne. To ensure we are taking the best path forward when met with this interest, we initiated a strategic review in July.
After a thorough and comprehensive process, backed by an independent fairness opinion, we concluded that the non-binding value indication of CHF 18.80 per share from Bain Capital provided neither sufficient certainty nor adequately reflected the fundamental value of SoftwareOne.
The BoD is unanimous in its confidence in SoftwareOne's strategic direction and leadership. Together with the Executive Board, we remain focused on capitalising on the fast-growing opportunities in cloud, data & AI and sharpening execution to deliver superior returns.
Leadership enhancements and strategic priorities
SoftwareOne's leadership team was significantly enhanced this year. CEO Brian Duffy's track record, including a proven ability to drive innovation, growth and customer success, and Rohit Nagarajan's focus on customer-centric growth are critical to ensure SoftwareOne’s comprehensive software & cloud solutions offering stays at the forefront of our industry. Their roles are integral to driving the "Lead" area of Vision 2026, helping clients access the cloud, maximise ROI of their investments, boost workforce productivity, as well as fast-track data & AI adoption.
I consider these appointments pivotal to executing the updated strategy and achieving Vision 2026 and firmly believe that today’s management is ideally positioned to implement its ambitious plans.
Looking ahead: advancing Vision 2026
As SoftwareOne moves forward, the BoD, together with the Executive Board, remains focused on delivering on the promises of Vision 2026. The company's financial performance and strategic direction are set to strengthen SoftwareOne's position in the market and create value for all stakeholders.
On behalf of the BoD, I extend my gratitude to the SoftwareOne team for their unwavering dedication, to our clients for their continued trust, and to you, the shareholders, for your steadfast support. I look forward to engaging with as many of you as possible at the upcoming AGM and to the exciting opportunities that lie ahead for SoftwareOne.
Yours sincerely,
Adam Warby
Chairman of the Board of Directors