2010-11-03 08:00:00 CET
2010-11-03 08:00:53 CET
REGULATED INFORMATION
Solteq Oyj - Interim report (Q1 and Q3)
SOLTEQ PLC'S INTERIM REPORT 1.1.-30.9.2010
Solteq Plc Stock Exchange Bulletin 3.11.2010 at 9.00am
- Turnover decreased by 4.0% and totalled 19,5 million euros (20,3 million
euros)
- Operating result totalled -2.213 thousand euros (678 thousand euros)
- In 2010 the total revenue is expected to decrease by 5-10% compared to 2009
and the operating result is anticipated to remain negative.
- Earnings per share was -0,15 euros (0,03 euros)
KEY FIGURES
Turnover by operation:
% 1-9/10 1-9/09 1-12/09
Softwareservices 67 63 65
Licences 27 28 26
Hardware 6 9 9
Managing Director Repe Harmanen:"The third quarter of the year has remained consistent with our previous
anticipations. Our position in sales to new markets and clients and demand on
our services have remained at the same level than at the beginning of the year.
Actions aiming to improve our company's profitability have been carried out
according to plans.
As the managing director for about last month I have learned and understood our
company's strengths and weaknesses both internally and from our customer's
perspective. Based on these observations we well be developing our mode of
operations and procedures and highlight our strategy. We want to support our
current and prospective customers' business operations even better and more
efficiently and to correspond more rapidly to their needs at present and in the
future. We have started the adjustment of the company's operating structure and
the work will be concluded during the last quarter of the year.
The various situations of the company's business areas balance our operations at
the present and in the future. We have a solid basis on our project and service
business based on product lines, and by making adjustments to it we can enhance
our operations. We will clear our long term functional objectives, emphasis on
future operations and growth areas and our position on the market through
strategic work and thereby strengthen our competitiveness.
Financial development for the remaining year appears to stay according to prior
anticipations."
BUSINESS ENVIRONMENT AND BUSINESS DEVELOPMENT
Solteq is a software service company, whose core competency is IT solutions that
are critical to business. Solteq combines its own product portfolio with the
products from the leading software companies in the world to deliver individual
business development and ERP solutions for its customers. The information that
is processed by means of these solutions is helping customers to manage their
business even better than before and to improve their profitability.
Starting from 1.1.2010 Solteq's operations was divided into four business areas
and the result of the company is monitored through these areas. Business areas
are: ERP (enterprise resource planning), EAM (enterprise asset and maintenance
service management), Data (data management, optimization and integration) and
Store (retail solutions and technology).
Solteq's revenue totaled 19.507 thousand Euros, which is 4.0 percent lower
compared to corresponding period 2009.
Solteq's operating result decreased to -2.213 thousand euros from 678 thousand
euros that was the operating result in the corresponding period 2009. Company's
operating profit percentage was -11.3% (3.3% in 2009).
Result for the first half was inferior to expected, but during the third quarter
there were signs of positive development of the result. The development of
revenue and operating profit is as expected. During the year 2010 revenue is
expected to decrease 5-10 percent compared to the year 2009 and operating result
is anticipated to remain negative.
Result was burdened by co-determination negotiations concluded during the review
period and cost savings from implemented actions will not appear in results
until on upcoming quarters. Rearrangements were executed also in Solteq Plc's
subsidiary OOO Solteq Russia in St. Petersburg, where there is no active
operation at the present.
ERP
Solteq's business area ERP offers to 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 to lead
their operations and to intensify their operations e.g. purchases, sales and
warehouse management as well as reporting. Wide group of customers among others
in business branches trade, industry, auto trade and public sector are using
these solutions every day.
The revenue of business area ERP totalled 12,1 million euros. Business area's
operating result was -1,1 million euros
EAM
Solteq's EAM-solutions include systems for maintenance management, asset
management optimization, fieldwork management and maintenance. By means of these
solutions Solteq's customers are able to anticipate the need for service of
production lines and machines as well as they are able to 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 processing and engineering industries as
well as maintenance related service sector.
During the review period the revenue of business area EAM totalled 2,6 million
euros and operating result was -0,3 million euros.
Data
Solteq's business area Data is responsible for services and products relating to
the data (i.e. masterdata) that is 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, which support customers' enterprise resource planning and
decision-making, is high-quality, compatible and up to date.
During the review period the revenue of business area Data totalled 2,0 million
euros and operating result was -0,5 million euros.
Store
The solutions of Solteq's business area Store intensify the purchases, sales and
customer relationship management of specialty stores and chained commerce. Every
day hundreds of retailers, entrepreneurs and salespersons are leading their
businesses and serving their customers in thousands of store locations by means
of these solutions.
The revenue of business area Store totalled 2,8 million euros and operating
result was -0,3 million euros during the review period.
REVENUE AND RESULT
Revenue decreased by 4.0% compared to the previous year and totalled
19.507 thousand euros (previous financial year 20.324 thousand euros).
Revenue consists of several individual customerships. At the most, one client
corresponds to a less than ten percentages of the revenue
The operating result for the review period was -2.213 thousand euros (678
thousand euros), result before taxes was -2.342 thousand euros (582 thousand
euros) and the loss for the review period -1.764 thousand euros (401 thousand
euros).
Operating result is burdened by non-recurring lay-off costs of 430 thousand
euros.
Costs of unprofitable contracts that were booked according to IFRS were 549
thousand euros during the review period. These bookings result from uncertainty
to receive payments on previously recognized revenues.
Impairment loss for non-current assets of 287 thousand euros was booked during
the review period. Impairment loss is related to capitalized development costs
of ERP business area. The estimate of possible recoverable amount has decreased
due to changed financial expectations.
BALANCE SHEET AND FINANCING
The total assets amounted to 19.036 thousand euros (20.858 thousand
euros). Liquid assets totalled 157 thousand euros (195 thousand euros).
Solteq Group's interest-bearing liabilities were 7.005 thousand euros (7.089
thousand euros).
Solteq Group's equity ratio was 38.4 percent (45.3%).
INVESTMENTS, RESEARCH AND DEVELOPMENT
Gross investments during the review period were 97 thousand euros (704 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 and Microsoft and utilize their resources and distribution
channels. Own development efforts are focused on added value products and
tailored service concepts.
During the review period the company has not capitalized development costs under
IFRS. The amortization according to plan has been started relating to the
development project that was finalized at the end of previous financial period.
During the previous financial period the development costs capitalized under
IFRS were 490 thousand euros.
PERSONNEL
The number of permanent employees at the end of the review period was 230 (235).
Average number of personnel during the review period was 237 (248). In the end
of the review period the number of personnel could be divided in accordance with
the profit centers that were established on 1.1.2010 as follows: ERP 109, EAM
38, Data 31 and Store 27 and Shared Functions 25.
RELATED PARTY TRANSACTIONS
Solteq's related parties include Solteq's board of directors, managing director
and the Group's management team. There have been no significant changes in the
company's related party transactions since the financial statements 2009.
SHARES, SHAREHOLDERS AND TREASURY SHARES
Solteq Plc's share capital on 30.9.2010 was 1.009.154,17 euros which was
represented by 12.148.429 shares. The shares have no nominal value.
In the end of the review period the amount of treasury shares in Solteq Plc's
possession was 399.231 shares. The amount of treasury shares represented 3.29%
from the total amount of shares and votes in the end of the review period. The
equivalent value of acquired shares was 33.164 euros.
Exchange and rate
During the review period, the exchange of Solteq's shares in the
Helsinki Stock Exchange was 0,8 million shares (0,3 million shares) and
1,0 million euros (0,4 million euros). Highest rate during the review period was
1,56 euros and lowest rate 1,09 euros. Weighted average rate of the share was
1,27 euros and end rate 1,14 euros. The market value of the company's shares in
the end of the review period totalled 13,8 million euros (15,6 million euros).
Ownership
In the end of the review period, Solteq had a total of 1.970 shareholders (2.004
shareholders). Solteq's 10 largest shareholders owned 8.386 thousand shares i.e.
they owned 69.0 percent of the company's shares and votes. Solteq Plc's members
of the board owned a total of 5.179 thousand shares which equals 42,6 per cent
of the company's shares and votes.
ANNUAL GENERAL MEETING
Solteq Plc's annual general meeting on 26.3.2010 adopted the financial
statements for 2009 and the members of the board and the managing director were
discharged from liability for the financial year 2009.
The annual general meeting decided in accordance with the board's proposal to
distribute a dividend in the amount of 0,06 euros per share. The reconciliation
date for the dividend was 31.3.2010 and payment date 9.4.2010.
The annual general meeting decided to authorize the board of directors to decide
on acquiring the company's own shares so that the amount in
the possession of the company does not exceed 10 percent 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 used as part of the incentive scheme of the personnel or convey
otherwise or be invalidated. The shares can be acquired in other proportion than
the shareholders' holdings. The shares are to be acquired through public
trading. The authorization is valid until the next annual general meeting.
The annual general meeting decided in accordance with the board's proposal to
amend the section 11 of the articles of association so that notice to the
general meeting shall be issued no later than three weeks before the date of the
general meeting, however at least nine days before the record date of the
general meeting. Furthermore, the articles of association was amended so that
the notice to the general meeting can alternatively be delivered, in addition to
the current manners, by publishing the notice on the company's website.
BOARD OF DIRECTORS AND AUDITORS
Six members were elected to the board of directors of the company. Seppo Aalto,
Veli-Pekka Jokiniva, Ali Saadetdin, Jukka Sonninen and Markku Pietilä will
continue as members of the board. Sirpa Sara-aho was elected as new member of
the board of directors. The board elected Ali Saadetdin to act as the chairman
of the board.
KPMG Oy Ab, Authorized Public Accountants, were re-elected as Solteq's auditors.
Frans Kärki, APA, acts as the lead partner.
EVENTS AFTER THE REVIEW PERIOD
Solteq Plc issued a stock exchange bulletin on 15.10.2010, which stated Mika
Sipilä's appointment as sales director of Solteq Plc.
RISKS AND UNCERTAINITIES
The key uncertainties and risks in short term are related to the timing and
pricing of the business deals that are the basis for the 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 work. The company has
not organized a separate internal audit organization or committee.
PROSPECTS
In 2010 the total revenue is expected to decrease by 5 - 10 % compared to 2009
and the operating result is anticipated to remain negative.
Financial Reporting
The interim report has been prepared in accordance with the International
Financial Reporting Standards ("IFRS"). The same accounting policies and methods
of computation are followed in the interim report as were followed in the
financial statements of Solteq Plc for 2009.
The financial result is reported through four business areas. The business area
ERP includes systems for finance and enterprise resource planning. Business area
EAM consist of asset management optimization, material management and
maintenance management systems. 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. Business area Store includes point-of-
sale and store management systems. The most essential product and service types
of 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 the management on the economic environment and outlook. Results
can differ from those implied as a result of, among other factors, changes in
economy, markets and competitive conditions, changes in the regulatory
environment and other government actions.
The interim report is unaudited.
FINANCIAL INFORMATION
GROUP PROFIT AND LOSS ACCOUNT
(TEUR)
1.7.- 1.7.- 1.1.- 1.1.- 1.1.-
30.9.2010 30.9.2009 30.9.2010 30.9.2009 31.12.2009
NET TURNOVER 6 748 5 620 19 507 20 324 28 550
Other operating
income 2 2 14 80 94
Raw materials and
services -1 895 -1 584 -5 360 -5 587 -7 524
Staff expenses -2 835 -2 596 -11 689 -10 607 -14 868
Depreciation -501 -177 -925 -527 -710
Other operating
expenses -1 555 -812 -3 760 -3 005 -4 078
OPERATING RESULT -36 453 -2 213 678 1 464
Financial income and
expenses -42 -28 -129 -96 -135
RESULT BEFORE TAXES -78 425 -2 342 582 1 329
Income taxes 16 -119 578 -181 -394
RESULT FOR THE PERIOD
-62 306 -1 764 401 935
OTHER ITEMS OF TOTAL COMPREHENSIVE INCOME
Cash flow hedging 15 0 -31 0 -9
Other items of total comprehensive income
after taxes 11 0 -23 0 -7
TOTAL COMPREHENSIVE INCOME
-51 306 -1 787 401 928
Total profit for the period attributable to
Owners of the parent -62 306 -1 764 401 935
Total comprehensive income attributable to
Owners of the parent -51 306 -1 787 401 928
Earnings / share,
e(undiluted) -0,01 0,02 -0,15 0,03 0,08
Earnings / share,
e(diluted) -0,01 0,02 -0,15 0,03 0,08
Taxes corresponding to the result have been presented as taxes
for the period.
GROUP BALANCE SHEET (TEUR) 30.9.2010 30.9.2009 31.12.2009
ASSETS
NON-CURRENT ASSETS
Intangible assets
Intangible rights 2 186 2 890 2 755
Goodwill 8 286 8 286 8 286
Tangible assets 2 637 2 662 2 645
Investments
Other shares and similar
rights of ownership 93 93 93
Deferred tax
assets 453 88 0
Other receivables 157 0 0
Total non-current
assets 13 812 14 019 13 779
CURRENT ASSETS
Short-term debtors 5 067 6 644 7 093
Cash in hand and at banks 157 195 258
Total current
assets 5 224 6 839 7 351
TOTAL ASSETS 19 036 20 858 21 130
EQUITY AND LIABILITIES
CAPITAL AND RESERVES ATTRIBUTABLE TO THE SHAREHOLDERS
OF THE PARENT COMPANY
Share capital 1 009 1 009 1 009
Company's own shares -507 -337 -337
Share premium account 75 75 75
Account for cash flow
hedging -30 0 -7
Unrestricted equity
fund 7 214 7 214 7 214
Retained earnings 1 307 1 084 1 084
Result for the
financial period -1 764 401 935
Total equity 7 304 9 446 9 973
Non-current liabilities
Deferred tax liabilities 0 0 125
Other non-current liabilities 3 693 3 163 4 337
Current liabilities 8 039 8 249 6 695
Total liabilities 11 732 11 412 11 157
TOTAL EQUITY AND
LIABILITIES 19 036 20 858 21 130
FINANCIAL PERFORMANCE
INDICATORS (IFRS) 1-9/2010 1-9/2009 1-12/2009
Net turnover MEUR 19,5 20,3 28,6
Change in net turnover -4,0 % -6,5 % -6,0 %
Operating result MEUR -2,2 0,7 1,5
% of turnover -11,3 % 3,3 % 5,1 %
Result before taxes MEUR -2,3 0,6 1,3
% of turnover -12,0 % 2,9 % 4,7 %
Equity ratio, % 38,4 45,3 47,2
Gearing, % 93,8 % 73,0 % 66,7 %
Gross investments in
non-current assets MEUR 0,1 0,7 0,7
Return on equity, % -28,2 % 5,7 % 9,6 %
Return on investment, % -19,0 % 5,7 % 9,1 %
Personnel at end of
period 230 235 235
Personnel average
for period 237 248 240
KEY INDICATORS PER SHARE
Earnings / share, e -0,15 0,03 0,08
Earnings / share,
e(diluted) -0,15 0,03 0,08
Equity / share, e 0,62 0,79 0,84
SEGMENT INFORMATION
Turnover by segment:
Me 1-9/10 1-9/09 Change
ERP 12,1 14,3 -2,2
EAM 2,6 3,0 -0,4
DATA 2,0 0,7 +1,3
STORE 2,8 2,3 +0,5
Total 19,5 20,3 -0,8
Operating result by segment:
Me 1-9/10 1-9/09 Change
ERP -1,1 0,8 -1,9
EAM -0,3 0,0 -0,3
DATA -0,5 -0,8 +0,3
STORE -0,3 0,7 -1,0
Total -2,2 0,7 -2,9
Because of the change in organisation, the respective segment information of
2009 has been allocated from the bookkeeping retroactively.
QUARTERLY KEY INDICATORS (MEUR)
4Q/08 1Q/09 2Q/09 3Q/09
Net turnover 8,65 7,21 7,49 5,62
Operating result 0,66 -0,19 0,41 0,46
Result before taxes 0,58 -0,24 0,40 0,42
4Q/09 1Q/10 2Q/10 3Q/10
Net turnover 8,23 6,17 6,59 6,75
Operating result 0,78 -1,02 -1,16 -0,04
Result before taxes 0,75 -1,07 -1,20 -0,08
CASH FLOW STATEMENT (MEUR)
1-9/2010 1-9/2009 1-12/2009
Cash flow from business
operations 0,77 -0,02 0,18
Cash flow from capital
expenditure -0,1 -0,70 -0,65
Cash flow from financing activities
Dividend distribution -0,71 -0,48 -0,48
Own shares -0,17 -0,08 -0,08
Loan agreement 0,10 0,78 0,59
Cash flow from financing
activities -0,78 0,22 0,03
Change in cash and cash
equivalents -0,11 -0,50 -0,44
TOTAL INVESTMENTS (TEUR)
1-9/2010 1-9/2009 1-12/2009
Continuing operations,
group total 97 704 651
LIABILITIES (MEUR) 30.9.2010 30.9.2009 31.12.2009
Company quorantee for
credit limits 2,61 1,18 2,61
Perfomance bonds 0,05 0,02 0,05
Lease contracts, machinery &
equipment 0,64 0,62 0,70
Lease liability,
premises 1,90 2,31 2,21
Pledged shares 1,59 0,00 1,59
MAJOR SHAREHOLDERS SEPTEMBER 30, 2010
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. TP-Yhtiöt Oy 513 380 4,2
5. Solteq Oyj 399 231 3,3
6. Roininen Matti 350 000 2,9
7. Hakamäki Jorma 228 430 1,9
8. Saadetdin Katiye 156 600 1,3
9. Halmet Jarmo 106 250 0,9
10. Aukia Timo 103 230 0,8
10 largest shareholders total 8 385 533 69,0 %
Total of nominee-registered 65 365 0,5 %
Others 3 697 531 30,4 %
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 1.1.2009 1 009 -255 75 0 7 213 1 560 9 602
Total comprehensive income 401 401
Acquiring of own shares -82 -82
dividend distribution -475 -475
EQUITY 30.9.2009 1 009 -337 75 0 7 213 1 486 9 446
EQUITY 1.1.2010 1 009 -337 75 -7 7 213 2 020 9 973
Total comprehensive income -23 -1 764 -1 787
Acquiring of own shares -170 -170
dividend distribution -712 -712
EQUITY 30.9.2010 1 009 -507 75 -30 7 213 -457 7 304
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 Plc's will publish the financial statements bulletin from the financial
year 2010 February 16, 2011.
More investor information on Solteq's website at www.solteq.com
Additional information:
Managing Director Repe Harmanen
Telephone +358 40 0467 717
E-mail repe.harmanen@solteq.com
CFO Antti Kärkkäinen
Telephone +358 20 1444 393 or +358 40 8444 393
E-mail antti.karkkainen@solteq.com
Distribution:
NASDAQ OMX Helsinki
Key Media
[HUG#1458201]
© 2024 Nasdaq, Inc. All Rights Reserved |