IT firm Softline expects turnover to decline in major market Russia

div classBodysc17zpet90 cdBBJodivpReuters – Londonlisted IT firm Softline said on Tuesday turnover in its major market, Russia, would likely shrink from April to June due to ongoing uncertainty, but was confident of doubledigit growth elsewhere. p

pReporting results for the full year ended March 31, Softline, which provides digital solutions, hardware and cloud services, said turnover grew 22 yearonyear to 2.2 billion in reported currency.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pSoftline, which works closely with Microsoft, withdrew its business outlook in March, but on Tuesday gave guidance for the three months from April to June, saying it expected yearoveryear turnover growth of at least 15.p

p“In Russia, the company expects growth to decline at least midsingle digits yearoveryear based on the continued uncertainty in the market,” it said, adding that it expected the business, including its Russia operations, to deliver positive core earnings. p

pHeadquartered in London and operating in 60 countries, Softlines primary market is Russia, accounting for 51 of turnover for the full year, the company said. p

pSoftline has been at pains to downplay its connection to Russia, especially in the wake of broadranging Western sanctions on Russian companies over Moscows stated “special operation” in Ukraine. p

p“Softline Holding PLC does not consider itself to be an entity owned by or acting on behalf or at the direction of a person connected with Russia,” it said in early March. p

pRussian founder Igor Borovikov is a tax resident of Portugal. p

pSoftline this month said its Russian and nonRussian businesses now differ significantly in operations, priorities, and gotomarket strategies and it is exploring options to adjust the groups assets and ownership structure. p

pSoftline on Tuesday denied a report by Forbes Russia on Monday that Softline was planning to cut salaries at its Russian operations by 25 and adopt more performancebased targets. p

pChief Operating Officer Sergey Chernovolenko said all companies operating in Russia should be adjusting their approaches in the current circumstances and said staff numbers were not being reduced. p

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pp Reporting by Reuters Editing by Bernadette Baump

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