The share capital increase procedure will be carried out upon the completion of the goodwill of TREECOM, under the law, the company said Friday in a stock market announcement.
Life is Hard reported a net profit of RON1.12 million for 2020, down 21.13% compared with 2019, and a turnover of RON7.2 million, 34.2% compared with 2019, per the company’s preliminary earnings report.
The company said in its annual report that its profit line was impacted by acquisitions for the implementation of two major projects it is currently running, a smart parking system for the city of Cluj and Smart Territory Cluj, an administrative project for the city. It said the impact of related acquisitions would be seen in the company’s activity in the first half of 2021.
Upon taking over the goodwill of Active Power Solutions (procedure completed) and the goodwill of TreeComm (ongoing procedure), Life is Hard expects a turnover of RON21.1 million in 2021, up 193.8% compared with 2020 (RON7.2 million) and 62.3% higher profit, so that the company can see a net result of RON1.76 million end-2021.
Life is Hard has a market value of RON48 million and is 39.2% held by Ioan-Catalin Chis, while Active Power Solutions, whose goodwill was taken over in December 2020 by the company, owns a 37.5% stake.
LIH shares have been trading up 25% since the beginning of 2021, amid deals worth RON3.5 million, per stock market data.