Tech company Solutions 30 to set new management procedures by end of year

  • Targeting new management procedures by Q4
  • Revenue up 22.9% in Q2 to 216 mln euros
  • Shares hit by concerns over governance issues
  • Dismissed criticism from hedge fund
  • Confirms outlook for double-digit growth

PARIS, July 27 (Reuters) – French technology services company Solutions 30 (S30.PA), whose shares have fallen this year on concerns over corporate governance issues, said it aimed to have new management procedures in place by the fourth quarter.

The company, which has its corporate headquarters in Luxembourg and shares listed in Paris, issued the update as it reported a 22.9% increase in second-quarter revenue from a year ago, to 216 million euros ($255.53 million).

“Solutions 30 is continuing its progress plan and in early June launched a transformation plan designed to strengthen its organisation in terms of governance, risk management and compliance, with the aim of having new management and control procedures in place by the fourth quarter of 2021,” it said.

A company spokesperson did not specify what sort of new management procedures might be implemented, but added no change in management was expected.

Solutions 30 has dismissed criticism of its business practices by hedge fund Muddy Waters, which has a “short” position betting on a future fall in the company’s shares.

In June, the company – whose shares are down around 30% since the start of 2021 – appointed PKF Audit & Conseil Luxembourg as its auditor, replacing Ernst & Young. read more

It has also said it could de-list from the stock market, and has hired investment bank Rothschild to seek new possible investors in the company. read more

($1 = 0.8453 euros)

Reporting by Sudip Kar-Gupta; Editing by David Goodman and Mike Harrison

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