2012-02-16 08:00:00 CET
2012-02-16 08:00:15 CET
REGULATED INFORMATION
Solteq Oyj - Financial Statement Release
SOLTEQ PLC’S FINANCIAL STATEMENTS BULLETIN 1.1.-31.12.2011
Solteq Plc Stock Exchange Bulletin 16.2.2012 at 9.00 am
- Turnover increased by 0.5% and totalled 27,1 million euros (27,0 million
euros)
- Operating profit totalled 1.453 thousand euros (-4.315 thousand euros)
- For 2012, we estimate that we grow with the market and at the same time we
improve our profitability
- Earnings per share were 0,08 euros (-0,32 euros)
- The Solteq Plc Board proposes to the Annual General Meeting that the Board be
authorised, on the basis of Chapter 13, Section 6, Sub-section 2 of the Finnish
Companies Act, to decide on the distribution of a dividend amounting to a
maximum of EUR 0.05 per share or of other assets from the distributable equity
reserve, as well as decide on the timing and other details concerning the
possible distribution
Turnover by operation:
% 1-12/11 1-12/10
Softwareservices 64 65
Licences 30 27
Hardware 6 8
CEO Repe Harmanen:"With regard to financial figures, the results of the past year can be
considered reasonable and partly good. We managed to rectify our financial
situation which is due to our strong business foundation and revamping our
working methods. These factors have made it possible, that during 2011 all
quarters were positive.
The principles guiding our operations aimed at improving profitability and
predictability, establishing new working methods, and making the strategy
published at the beginning of the year into an integral part of everyday
operations. Throughout the year, we concentrated on taking measures to improve
both short-term and long-term profitability through increased accuracy and
forecasting as well as faster actions. This work continues, and we want to
continue improving our performance in these areas.
Effective Range of Solutions
In 2011, almost all our business areas significantly improved their results
from the previous year. Cooperation between the business areas also improved,
which essentially contributed to the improvement of the result. Our range of
solutions and mutually supportive solution areas have proven quite suitable for
our clients. The core consisting of ERP solutions requires the support of
well-designed special solutions.
At the end of the year, we made changes to our organisation to meet the
objectives our new strategy. At the same time we reviewed our offering to see
how we should develop it in order to improve our position as a sought-after
service provider in our chosen industries.
Systematic Implementation of the Strategy
The road from a product-specific organisation to a project and service provider
is long, but that is exactly what the strategy we published at the beginning of
the year aims at. The organisation of our services into offerings that comply
with our strategy keeps our perspective right and the most important principles
in the foreground in our daily work.
The implementation of the strategy that we published at the beginning of
February has proceeded well and we will monitor the development carefully.
During the autumn, we also reviewed our strategy with regard to the changes in
the operating environment. The main strategic lines, however, remain the same.
During the spring, we developed the predictability of our operations. This was
important as was shown by the favourable development in the latter part of the
year. This work was carried out at all levels, and some of the improvements
became part of our normal operating model. During the summer and autumn, we
also took proactive measures to ensure our ability to offer our clients new
solution areas that would support their operations.
We increased our turnover and essentially improved our profitability from the
previous year. We can be proud and happy with this change in the direction but
we cannot rest on our laurels; the level of both turnover and profitability is
still not sufficient for us. I interpret the result of 2011 as a positive
signal which encourages us forward.
For 2012, we estimate that we grow with the market and at the same time we
improve our profitability
I would like to thank our customers, employees and partners for their
cooperation during the year. We want to continue in the same way forward."
BUSINESS ENVIRONMENT AND BUSINESS DEVELOPMENT
Solteq offers systematically developing operational and financial control
services to commercial, logistics, industrial and public administration actors.
We complement our core offering with solutions for specialized retail
management, maintenance and servicing management, as well as solutions for
quality improvement and the management of systems in which master data is
contained. With the help of our solutions developed using technology from the
world's leading companies, our clients guide their businesses more efficiently
and improve their profitability.
Till the end of 2011, Solteq's operations were divided into four business areas
and the results of the company are monitored through these areas. Business
areas are: ERP (enterprise resource planning), EAM (enterprise asset
management), Data (data management, optimization and integration) and Store
(retail solutions and technology).
As from the beginning of 2012, Solteq Plc's reportable segments are the
Enterprise Resource Planning and Financial Management Solutions (until 2011
ERP) and Value Added Solutions (until 2011 EAM, DATA and STORE).
Solteq's turnover was 27.144 thousand euros, which has increased 0,5 per cent
to year 2010.
Solteq's operating profit increased to 1.453 985 thousand euros (-4.315
thousand euros in 2010). The company's operating margin was 5,4 % (-16,0 % in
2010).
ERP
Solteq's ERP business area offers its clientele enterprise resource planning
systems and supporting optimization and reporting solutions as well as a set of
other different added value solutions. These solutions help customers lead
their operations and enhance, for example, their purchases, sales and warehouse
management, as well as reporting. A wide group of customers use these solutions
every day in the trade, industry, auto trade and public sector operating areas,
among others.
The revenue of the ERP business area totalled 16,6 million euros. The business
area's operating profit was 1,5 million euros.
EAM
Solteq's EAM solutions include systems for maintenance management, asset
management optimization, fieldwork management and maintenance. Through these
solutions, Solteq's customers can anticipate the need for service of production
lines and machines, monitor the malfunction history and control the machinery
maintenance related material flows from purchasing to warehousing. The
clientele consists of, among others, energy and production plants, companies in
the processing and engineering industries, as well as the maintenance related
service sector.
During the review period, the revenue of the EAM business area totalled 3,8
million euros and the operating profit was 0,1 million euros.
Data
Solteq's Data business area is responsible for services and products relating
to the data (namely, masterdata) that are crucial to the customers' businesses
as well as e-commerce and integration technologies. Solteq offers to its
customers masterdata-related quality improvement projects, data maintenance
services in which the services are outsourced to masterdata service centers,
software technologies and consultancy services that can be utilized in
masterdata management. The aim of these services is to ensure that the data
that is stored in the programs that support customers' enterprise resource
planning and decision-making is high-quality, compatible and up to date.
During the review period the revenue of the Data business area totalled 2,5
million euros and the operating result was -0.3 million euros.
Store
The solutions of Solteq's Store business sector enhance the management of the
purchases, sales and customer relationships of specialty stores and chained
commerce. Every day hundreds of retailers, entrepreneurs and salespersons lead
their businesses and serve their customers in thousands of store locations by
means of these solutions.
The revenue of Store business area totalled 4,2 million euros and the operating
profit was 0.2 million euros during the review period.
TURNOVER AND RESULT
Turnover increased by 0.5 % compared to the previous year and totalled 27.144
thousand euros (previous review period 26.998 thousand euros).
Turnover consists of several individual clienteles. At the most, one client
corresponds to less than ten per cent of the turnover.
The profit for the review period was 1.453 thousand euros (-4.315 thousand
euros), the operating profit before taxes was 1.280 thousand euros (-4.487
thousand euros) and the operating profit for the review period was 897 thousand
euros (-3.707 thousand euros).
BALANCE SHEET AND FINANCING
The total assets amounted to 17.374 thousand euros (17.211 thousand euros).
Liquid assets totalled 277 thousand euros (131 thousand euros). In addition to
liquid assets the company had unused account limits totalling 2.374 thousand
euros at the end of the review period.
Solteq Group's interest-bearing liabilities were 4.166 thousand euros (7.117
thousand euros).
Solteq Group's equity ratio was 34,2 per cent (30,6 per cent).
INVESTMENTS, RESEARCH AND DEVELOPMENT
Gross investment during the review period was 473 thousand euros (153 thousand
euros).
Research and development
Solteq's research and development costs consist mainly of personnel costs. When
developing basic products, it is Solteq's strategy to cooperate with global
actors such as SAP, Microsoft and IBM and utilize their resources and
distribution channels. Own development efforts are focused on added value
products and developing tailored service concepts.
During the review period product development costs were not amortized in
accordance with IFRS standards (comparison year also not amortized for the
review period).
PERSONNEL
The number of permanent employees at the end of the review period was 212
(220). The average number of personnel during the review period was 211 (233).
In the end of the review period the number of personnel could be divided as
business units has divided starting in 1.1.2010 ERP: 105 people; EAM: 32
people; DATA: 21 people; STORE: 24 people and 30 people in shared functions.
RELATED PARTY TRANSACTIONS
Solteq's related parties include the board of directors, managing director and
the management team.
The company has on 1/3 and 23/3/2011 provided notification about an arrangement
in which interest bearing loans and a directed issuance have been given to
Solteq Management Oy, which is owned by management.
Solteq Management Oy is combined into consolidated financial statements on the
basis of the shareholders' agreement.
SHARES, SHAREHOLDERS AND TREASURY SHARES
Solteq Plc's equity on 30.9.2011 was 1.009.154,17 euros which was represented
by 12.148.429 shares. The shares have no nominal value.
At the end of the review period, the amount of treasury shares in Solteq Plc
and the group company Solteq Management Oy's possession were 700.062 shares.
The amount of treasury shares represented 5,76 % of the total amount of shares
and votes at the end of the review period. The equivalent value of acquired
shares was 58.153 euros.
Exchange and share price
During the review period, the exchange of Solteq's shares on the Helsinki Stock
Exchange was 1.6 million shares (1.3 million shares) and 1.7 million euros (1.5
million euros). The highest price during the review period was 1.20 euros and
the lowest price was 0.95 euros. The weighted average price of the share was
1.07 euros and the price ending was 0,98 euros. The market value of the
company's shares in the end of the review period totalled 11,9 million euros
(16,2 million euros).
Corporate Governance Statement
Solteq has issued its Corporate Governance Statement as a separate report. The
auditor of Solteq Plc has audited that the Corporate Governance Statement has
been issued and that the systems of internal control and risk management
relating to the reporting of financial results that are described in the report
are consistent with Solteq Plc's financial statements. Solteq Plc's Corporate
Governance Statement is available on company's website at
www.solteq.com/governance
Ownership
At the end of the review period, Solteq had a total of 1,829 shareholders
(1,945 shareholders). Solteq's 10 largest shareholders owned 8,524 thousand
shares, amounting to 70.2 per cent of the company's shares and votes. Solteq
Plc board members owned a total of 5,149 thousand shares which equals 42.4 per
cent of the company's shares and votes.
ANNUAL GENERAL MEETING
At Solteq Plc's annual general meeting on 16 March 2011 the 2010 financial
statements were adopted and the members of the board and the managing director
were discharged from liability for the 2010 review period.
The annual general meeting decided in accordance with the board's proposal that
no dividend will be paid for the review period ending on 31 December 2010.
The annual general meeting decided to authorize the board of directors to
decide on acquiring and distress the company's own shares so that the amount in
the possession of the company may reach up to 10 per cent of the company's
total shares at that moment. The shares can be acquired in order to develop the
company's capital structure, finance and execute acquisitions or similar
arrangements or be used as part of the incentive scheme of the personnel or be
otherwise conveyed or cancelled. The shares can be acquired in proportions
other than the shareholders' holdings. The shares are to be acquired through
public trading. The authorization is valid until the next annual general
meeting.
The General Meeting approved proposal by the Board to cover the loss of
3.412.908, 22 euros in balance sheet by the fund for invested unrestricted
equity.
BOARD OF DIRECTORS AND AUDITORS
Five members were elected to the board of directors. Ali Saadetdin, Seppo
Aalto, Markku Pietilä, Sirpa Sara-aho and Jukka Sonninen continued as members
of the board. The board elected Ali Saadetdin to act as the Chairman of the
Board.
KPMG Oy Ab, Authorized Public Accountants, was re-elected as Solteq's auditors.
Frans Kärki, APA, acts as the chief auditor.
EVENTS AFTER THE REVIEW PERIOD
No events have occurred that require reporting after the review period.
RISKS AND UNCERTAINITIES
The key uncertainties and risks in short term are related to the timing and
pricing of business deals that are the basis for revenue, changes in the level
of costs and the company's ability to manage extensive contract agreements and
deliveries.
The key business risks and uncertainties of the company are monitored
constantly as a part of the board of directors' and management team's duties.
The company has not organized a separate internal audit organization or
committee.
PROSPECTS
For 2012, we estimate that we grow with the market and at the same time we
improve our profitability.
PROPOSAL OF THE BOARD FOR DISTRIBUTION OF DIVIDEND
At the end of the financial period 2011, the distributable equity of the
Group's parent company is 3.791.858,52 euros.
The Solteq Plc Board proposes to the Ordinary General Meeting that the Board be
authorised, on the basis of Chapter 13, Section 6, Sub-section 2 of the Finnish
Companies Act, to decide on the distribution of a dividend amounting to a
maximum of EUR 0.05 per share or of other assets from the distributable equity
reserve, as well as decide on the timing and other details concerning the
possible distribution (The board proposed that no dividend will be paid from
the financial period 2010.).
Financial Reporting
This financial statements bulletin has been prepared in accordance with IAS 34
and the same accounting policies as in the annual financial statements 2010
have been applied.
The financial result is reported through four business areas. The ERP business
area includes systems for finance and enterprise resource planning. The EAM
business area consists of asset management optimization, material management
and maintenance management systems. The Data business area includes tools for
data collection, assurance of data's quality and accuracy, as well as tools for
data integration between different systems. The Store business area includes
point-of-sale and store management systems. The most essential product and
service types of the Solteq group of companies are software services, licenses
and hardware sales.
All forecasts and estimates presented in the interim report are based on the
current views of management on the economic environment and outlook. Because of
this, the results can differ as a result of, among other factors, changes in
economy, markets and competitive conditions, changes in the regulatory
environment and other government actions.
The financial statements bulletin is audited. Balance sheet figures presented
in the bulleting are based on the company's audited financial statements. The
Auditor's Report was provided on 15/2/2012.
FINANCIAL INFORMATION
GROUP PROFIT AND LOSS ACCOUNT
(TEUR)
1.10.- 1.10.- 1.1.- 1.1.-
31.12.2011 31.12.2010 31.12.2011 31.12.2010
NET TURNOVER 7 652 7 491 27 144 26 998
Other operating
income 6 38 15 52
Raw materials and
services -2 102 -2 034 -6 383 -7 394
Staff expenses -3 720 -3 999 -14 165 -15 688
Depreciation -136 -2 298 -750 -3 223
Other operating
expenses -1 232 -1 300 -4 408 -5 060
OPERATING RESULT 468 -2 102 1 453 -4 315
Financial income and
expenses -35 -43 -174 -172
RESULT BEFORE TAXES 433 -2 145 1 280 -4 487
Income taxes -151 202 -383 780
RESULT FOR THE PERIOD
282 -1 943 897 -3 707
OTHER ITEMS OF TOTAL COMPREHENSIVE INCOME
Cash flow hedging 0 13 8 -18
Other items of total comprehensive income
after taxes 0 10 6 -13
TOTAL COMPREHENSIVE INCOME
0 -1 933 903 -3 720
Total profit for the period attributable to
Owners of the parent 282 -1 943 897 -3 707
Total comprehensive income attributable to
Owners of the parent 282 -1 933 903 -3 720
Earnings / share,
e(undiluted) 0,03 -0,17 0,08 -0,32
Earnings / share,
e(diluted) 0,03 -0,17 0,08 -0,32
Taxes corresponding to the result have been presented as taxes
for the period.
GROUP BALANCE SHEET (TEUR) 31.12.2011 31.12.2010
ASSETS
NON-CURRENT ASSETS
Intangible assets
Intangible rights 1 780 2 093
Goodwill 6 199 6 199
Tangible assets 2 264 2 229
Investments
Other shares and similar
rights of ownership 524 524
Deferred tax
assets 280 654
Other receivables 67 87
Total non-current
assets 11 114 11 786
CURRENT ASSETS
Short-term debtors 5 983 5 294
Cash in hand and at banks 277 131
Total current
assets 6 260 5 425
TOTAL ASSETS 17 374 17 211
EQUITY AND LIABILITIES
CAPITAL AND RESERVES ATTRIBUTABLE TO THE
SHAREHOLDERS OF THE PARENT COMPANY
Share capital 1 009 1 009
Company's own shares -835 -618
Share premium account 75 75
Account for cash flow
hedging -14 -20
Unrestricted equity
fund 3 801 7 214
Retained earnings 1 012 1 306
Result for the
financial period 897 -3 707
Total equity 5 945 5 259
Non-current liabilities
Other non-current liabilities 1 951 3 016
Current liabilities 9 478 8 936
Total liabilities 11 429 11 952
TOTAL EQUITY AND
LIABILITIES 17 374 17 211
Due to reclassification in property, plant and equipment and other shares in
investment groups in the balance sheet, there is a difference of 431 thousand
euros between the items in the reference figures.
FINANCIAL PERFORMANCE 2011 2010 2009 2008 2007
INDICATORS (IFRS)
Net turnover MEUR 27,1 27,0 28,6 30,4 27,9
Change in net turnover 0,5 % -5,4 % -6,0 % 8,8 % 20,6 %
Operating result MEUR 1,5 -4,3 1,5 1,5 1,3
% of turnover 5,4 % -16,0 % 5,1 % 4,8 % 4,7 %
Result before taxes MEUR 1,3 -4,5 1,3 1,1 1,1
% of turnover 4,7 % -16,6 % 4,7 % 3,7 % 3,9 %
Equity ratio, % 34,2 30,6 47,2 43,6 44,1
Gearing, % 65,4 % 132,8 % 66,7 % 58,5 % 69,0 %
Gross investments in
non-current assets MEUR 0,5 0,2 0,7 0,9 1,8
Return on equity, % 16,0 % -48,7 % 9,6 % 9,0 % 11,5 %
Return on investment, % 13,1 % -29,3 % 9,1 % 9,0 % 8,7 %
Personnel at end of
period 212 220 235 268 259
Personnel average
for period 211 233 240 266 252
KEY INDICATORS PER SHARE
Earnings / share, e 0,08 -0,32 0,08 0,07 0,09
Earnings / share,
e(diluted) 0,08 -0,32 0,08 0,07 0,09
Equity / share, e 0,52 0,45 0,84 0,80 0,81
SEGMENT INFORMATION
Turnover by segment:
Me 1-12/11 1-12/10 Change
ERP 16,6 16,6
EAM 3,8 3,5 +0,3
DATA 2,5 2,8 -0,3
STORE 4,2 4,1 +0,1
Total 27,1 27,0 +0,1
Operating result by segment:
Me 1-12/11 1-12/10 Change
ERP 1,5 -1,5 +3,0
EAM 0,1 -1,0 +1,1
DATA -0,3 -1,4 +1,1
STORE 0,2 -0,4 +0,6
Total 1,5 -4,3 +5,8
QUARTERLY KEY INDICATORS (MEUR)
1Q/10 2Q/10 3Q/10 4Q/10
Net turnover 6,17 6,59 6,75 7,49
Operating result -1,02 -1,16 -0,04 -2,10
Result before taxes -1,07 -1,20 -0,08 -2,15
1Q/11 2Q/11 3Q/11 4Q/11
Net turnover 6,85 7,32 5,32 7,65
Operating result 0,37 0,32 0,29 0,47
Result before taxes 0,32 0,27 0,26 0,43
CASH FLOW STATEMENT (MEUR)
1-12/2011 1-12/2010
Cash flow from business
operations 3,78 0,82
Cash flow from capital
expenditure -0,47 -0,15
Cash flow from financing activities
Dividend distribution 0,00 -0,71
Own shares -0,22 -0,28
Loan agreement -2,94 0,19
Cash flow from financing
activities -3,16 -0,80
Change in cash and cash
equivalents 0,15 -0,13
TOTAL INVESTMENTS (TEUR)
1-12/2011 1-12/2010
Continuing operations,
group total 473 154
Company cars procurement policy has been changed in 2011.
New purchases have been recorded in the balance sheet.
LIABILITIES (MEUR) 31.12.2011 31.12.2010
Company quorantee for
credit limits 2,61 2,61
Lease contracts, machinery &
equipment 0,23 0,41
Lease liability,
premises 1,42 1,80
Pledged shares 1,59 1,59
DISTRIBUTION OF HOLDINGS BY SECTOR DECEMBER 31, 2011
Number of Shares and votes
holdings % Number
Private companies 80 18,9 % 2 295 263
Financial an insurance institutions 5 0,2 % 20 457
Public-sector organizations 1 0,1 % 11 747
Households 1 732 80,8 % 9 811 991
Non-profit organizations 5 0,0 % 4 381
Foreigners 6 0,0 % 4 590
Total 1 829 100,0 % 12 148 429
Total of Nominee-registered 5 0,2 % 20 016
DISTRIBUTION BY NUMBER OS SHARES DECEMBER 31,2011
Number of Shares and votes
Number of shares holdings % Number
1 - 100 334 0,2 % 26 410
101 - 1 000 1 008 4,0 % 487 042
1 001 - 10 000 410 11,0 % 1 339 600
10 001 - 100 000 67 14,6 % 1 771 263
100 001 - 1 000 000 7 16,4 % 1 995 702
1 000 000 - 3 53,7 % 6 528 412
Total 1 829 100,0 % 12 148 429
Total of nominee-registered 5 0,2 % 20 016
MAJOR SHAREHOLDERS DECEMBER 31, 2011
Shares and votes
Number %
1. Saadetdin Ali 3 481 383 28,7
2. Aalto Seppo 1 662 206 13,7
3. Profiz Business Solution Oyj 1 384 823 11,4
4. Pirhonen Jalo 513 380 4,2
5. Solteq Management Oy 400 000 3,3
6. Roininen Matti 350 000 2,9
7. Solteq Oyj 300 062 2,5
8. Hakamäki Jorma 172 430 1,4
9. Saadetdin Katiye 156 600 1,3
10. Aukia Timo 103 230 0,8
10 largest shareholders total 8 524 114 70,2 %
Total of nominee-registered 20 016 0,2 %
Others 3 604 299 29,7 %
Total 12 148 429 100,0 %
STATEMENT OF CHANGES IN GROUP EQUITY (TEUR)
A=Share capital
B=Company's own shares
C=Share premium account
D=Account for cash flow hedging
E=Unrestricted equity fund
F=Retained earnings
G=Total
A B C D E F G
EQUITY 1.1.2010 1 009 -337 75 -7 7 213 2 020 9 973
Total comprehensive income -13 -3 707 -3 720
Acquiring of own shares -281 -281
dividend distribution -712 -712
EQUITY 31.12.2010 1 009 -618 75 -20 7 213 -2 400 5 259
EQUITY 1.1.2011 1 009 -618 75 -20 7 213 -2 400 5 259
Total comprehensive income 6 897 903
Acquiring of own shares -217 -217
Cover for losses -3 413 3 413 0
EQUITY 31.12.2011 1 009 -835 75 -14 3 800 1 910 5 945
CALCULATION OF FINANCIAL RATIOS
Solvency ratio, in percentage
equity x 100
----------------------------------
balance sheet total - advances received
Gearing
interest bearing liabilities - cash,
bank balances and securities X 100
-------------------------------------------
equity
Return on Equity (ROE) in percentage
profit or loss before taxation - taxes x 100
----------------------------------------
equity
Profit from invested equity in percentage
profit or loss before taxation +
interest expenses and other financing expenses x 100
----------------------------------------
balance sheet total - non-interest bearing
liabilities
Earnings per share
pre-tax result - taxes
+/- minority interest
------------------------------------
diluted average share issue
corrected number of shares
Diluted earnings per share
diluted profit before taxation -
taxes +/- minority interest
-----------------------------------------------
diluted average share issue
corrected number of shares
Equity per share
equity
-----------------------
number of shares
Financial Reporting
Solteq's Annual Report including audited financial statements for the year 2011
were published in the company's web site on 16/2/2012. The company does not
publish a printed Annual Report.
Solteq Plc's financial information bulletins in 2012 have been scheduled as
follows:
- Interim Report 1-3/2012 Thursday 19.04.2012 at 9.00 am
- Interim Report 1-6/2012 Tuesday 17.07.2012 at 9.00 am
- Interim Report 1-9/2012 Thursday 18.10.2012 at 9.00 am
More investor information is available from Solteq's website at www.solteq.com
Additional information:
CEO Repe Harmanen
Telephone: +358 400 467 717
Email: repe.harmanen@solteq.com
CFO Antti Kärkkäinen
Telephone: +358 20 1444 393 or +358 40 8444 393
Email: antti.karkkainen@solteq.com
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