The return of Solutions 30 to the stock market was very painful. After a 15-day suspension, an eternity on the stock market, the title fell by nearly 70% on Monday resumption. A vertiginous plunge on the markets, taking nearly 700 million capitalization for this company which has long been one of the rising values in the segment of small and medium values.
Since December, Solutions 30 has been the subject of heavy criticism, first emanating from an anonymous report, then from the American short seller Muddy Waters. Both accuse the company of mafia links and accounting errors. Despite a favorable audit report, these accusations, refuted by Solutions 30, found a new lease of life with EY’s refusal to certify the company’s annual accounts.
1. A company specializing in technological deployment
Little known to the general public, Solutions 30 nevertheless works in millions of homes in France. Created in 2003 by Gianbeppi Fortis – still its CEO -, with the deployment of ADSL to help users install their equipment, the company has experienced rapid development and continues to operate in the IT and telecoms industry. . Specializing in technological deployment and maintenance, it notably installs optical fiber, electronic monitoring equipment or smart meters.
An activity that notably enabled it to land a contract with Enedis for the installation of 35 million Linky meters in France. Leader in Europe in this technological assistance market, Solutions 30 is also present in Belgium, Luxembourg, the Netherlands, Germany, Italy, Spain, Portugal, Poland, as well as the United Kingdom. since December 2020.
2. Annual growth of 30% over 10 years
Before becoming undesirable in the eyes of investors, Solutions 30 has long been a rising star in the financial markets. IPO in 2005 with a capitalization of 4.5 million euros, it was valued at 1.5 billion euros last July when it was transferred to the regulated market of Euronext Paris, before joining, in September , the SBF 120.
Riding on the rise of the digital economy and the energy transition, Solutions 30 has posted annual growth of 30% over ten years. For the 2020 financial year, it claims a consolidated turnover of 819.3 million euros, an increase of 18.5% compared to 2019, a gross operating income of 106.5 million and a net surplus. of cash of 59.2 million. France remains its biggest market, with nearly 520 million euros in turnover in France, up 20% in one year.
But its annual accounts have not yet been certified by EY, its auditor, after the audit firm’s refusal to “formulate an opinion”. It is the only company in the CAC Mid 60 index which has not yet published its annual report audited and certified by the auditors.
3. A widely open shareholder base
According to the 2020 financial report, Gianbeppi Fortis (via its holding company GIAS International) remained the largest shareholder with a stake maintained at 16.2%, followed by the Comgest funds (5.5% of the capital) and Swedbank Robur Fonder AB (5.3 %). Karim Rachedi, the co-founder and former CEO of Solutions 30, in November 2020, crossed down the threshold of 5% of the company’s capital. The float amounted to a high level, around 70%.
Over the last two sessions, a little less than half of Solutions 30’s capital changed hands on the Paris Stock Exchange. On Monday, the title, which has not been listed since May 10, lost more than 70% when it resumed trading. Tuesday, there was no technical rebound. The stock continued to fall 8.33%. It was worth 2.79 euros at closing. Last December, it hit a high of 19.80 euros.