2008-02-13 08:30:00 CET
2008-02-13 08:30:00 CET
REGULATED INFORMATION
QPR Software - Financial Statement Release
QPR SOFTWARE PLC´S NET SALES GREW 11.6% IN THE FOURTH QUARTER AND WERE 2.0 MILLION EUROS
QPR SOFTWARE OYJ STOCK EXCHANGE RELEASE 13 February 2008 AT 09.30 AM
FINANCIAL STATEMENTS 1.1. - 31.12.2007
QPR SOFTWARE PLC´S NET SALES GREW 11.6% IN THE FOURTH QUARTER AND
WERE 2.0 MILLION EUROS, OPERATING PROFIT WAS 3.6% OF NET SALES
NET SALES IN 2007 GREW 2.3% AND WERE 7.1 MILLION EUROS, OPERATING
PROFIT WAS 0.4% OF NET SALES, EARNINGS PER SHARE EUR WAS 0.02,
PROPOSED DIVIDEND PER SHARE EUR 0.03
QPR Software Group´s net sales in 2007 reached MEUR 7.059 (6.901)
and grew 2.3%. Net sales in international operations increased in
the financial year 7.1% compared to previous year and were MEUR
4.942 (4.613), corresponding to 70.0% (66.8%) of net sales.
Operating profit was MEUR 0.031 (0.517).Operating profit was was
0.4 % (7.5%) of net sales. Earnings per share were EUR 0.02 (0.06).
In October-December, Group net sales showed 11.6% growth and were
EUR 1.995 million (1.787). Growth in the last quarter of the year
was mainly due to an increase of 43.1% in license sales to MEUR
1.057. License sales in Finland showed strongest growth while
professional services sales were lower than last year. Operating
profit was EUR 72 thousand (43).
The Group delivered software licenses and services in the
financial year to 55 countries. Software licenses were sold by 60
resellers in various parts of the world. The Group´s biggest
export markets in the financial period were South-Africa, Japan,
Brazil, Sweden, United Kingdom and United States of America.
GROUP KEY FIGURES
(EUR 1000) 10-12/ 10-12/ Change 1-12/ 1-12/ Change
2007 2006 % 2007 2006 %
Net Sales 1 995 1 787 11.6 7 059 6 901 2.3
Operating profit 72 43 66.3 31 517 -94.0
% of net sales 3.6 2.4 0.4 7.5
Profit before tax 78 58 32.8 64 577 -88.9
Profit for the period 222 314 -29.4 204 702 -71.0
% of net sales 11.1 17.6 2.9 10.2
Earnings per share,EUR 0.02 0.06
EPS (diluted), EUR 0.02 0.06
Equity per share, EUR 0.18 0.21
Cash flow from operating activities 438 976
Cash and cash equivalents 1 245 1 884
Net liabilities -876 -1 408
Gearing, % -38.7 -54.4
Equity ratio, % 57.0 59.0
Return on equity, % 8.4 30.0
Return on investment, % 2.5 19.2
OUTLOOK FOR YEAR 2008
QPR Software aims to focus its resources this year especially to
accelerate positive development in Risk Management and Compliance
software solution sales. Risk Management and Compliance software
solution sales already showed strong growth in 2007 in QPR´s
international business.
The management of QPR Software estimates the Group´s net sales and
operating profit to grow in 2008 compared to previous year. The
nature of the software license business of the QPR Group is
seasonal. Seasonality of large software deals can affect
significantly net sales and profit of one individual quarter.
REPORTING
This interim report complies with accounting- and valuation
principles of IFRS, but in preparations all the requirements of
IAS 34-standard have not been considered. The accounting- and
valuation principles are the same as they were in 2006 financial
statements. This interim report is not audited.
BUSINESS HIGHLIGHTS IN THE FOURTH QUARTER
QPR Software Group's net sales in the fourth quarter of the year
2007 increased 11.6% and were MEUR 1.995 (1.787). The increase in
net sales was mainly due to positive sales development in Finland,
Denmark, Japan and Brazil. In Finland, software licenses were
delivered to Skanska, Onninen, Kunta-IT and Ministry of Education,
among others. In Denmark, QPR won new significant customers from
municipal sector. In Japan, QPR solution deliveries to local
listed companies continued to be used for compliance purposes
brought by the new security markets law (J-SOX). QPR also won a
significant extension deal with Brasil Telecom.
Net sales in international operations were in the fourth quarter
MEUR 1.356 (1.289), and corresponded to 68.0% (72.1%) of the
Group´s total net sales.
Software license sales and maintenance service sales corresponded
to 88.4% (78.7%) of the total net sales of the Group.
The geographical break-down of the net sales was as follows, (EUR 000):
10-12/ Share- 10-12/ Share- Change-
2007 % 2006 % %
Domestic 639 32.0 498 27.9 28.2
International 1 356 68.0 1 289 72.1 5.2
Total 1 995 100.0 1 787 100.0 11.6
Break-down of software sales and related services in the fourth
quarter, (EUR 000):
10-12/ Share- 10-12/ Share- Change-
2007 % 2006 % %
Software licenses 1 057 53.0 739 41.3 43.1
Maintenance services 707 35.5 668 37.4 6.0
Professional services 230 11.5 381 21.3 -39.6
Total 1 995 100.0 1 787 100.0 11.6
Operating profit in the fourth quarter was MEUR 0.072 (0.043), and
its share corresponded to 3.6% (2.4%) of net sales. In the fourth
quarter operating profit was affected negatively MEUR 0.113
(0.020) by recorded bad debt provisions.
Profit of the fourth quarter was MEUR 0.222 (0.314), and includes
an effect of an increase of deferred tax assets in the parent
company´s books MEUR 0.160 (0.260). The profit for the period
represented 11.1% (17.6%) of net sales.
YEAR 2007
NET SALES AND FINANCIAL PERFORMANCE 1-12/2007
QPR Software Group´s net sales grew by 2.3% compared to previous
year and were MEUR 7,059 (6.901).
Net sales in international operations increased 7.1% and the Group
delivered software licenses and services to a total of 55
countries. The share of international business of the total net
sales increased to 70.0% (66.8%).
The largest export markets in 2007 were South Africa, Japan,
Brazil, Sweden, United Kingdom and the United States. The fastest
growing export markets were Brazil, the United States, Denmark and
Japan. Business growth in Japan was positively affected by a
solution that QPR and its local reseller launched to respond to
the challenges of the local security markets law (J-SOX). The new
security markets law came in force at the beginning of 2007 in
Japan, and 40 Japanese publicly listed companies purchased QPR J-
SOX solution. QPR estimates that demand for the said software
solution remains good among the Japanese publicly listed companies
in 2008 as well. In Brazil, QPR business growth was positively
affected especially by an extensive Risk Management software
solution delivered to Brasil Telecom.
In September, QPR launched a new Business Process Management Suite
and QPR WorkFlow product. The sales of the new suite and product
have started both in Finland and in international channel, and is
estimated to have a positive impact to QPR net sales in the
first half of 2008.
Geographical break-down of the net sales was as follows, EUR 000:
1-12/ Share- 1-12/ Share- Change-
2007 % 2006 % %
Domestic 2 117 30.0 2 288 33.2 -7.5
International 4 942 70.0 4 613 66.8 7.1
Total 7 059 100.0 6 901 100.0 2.3
Break-down of software sales and related services in the financial
year, EUR (000):
1-12/ Share- 1-12/ Share- Change-
2007 % 2006 % %
Software licenses 3 489 49.4 3 256 47.2 7.2
Maintenance services 2 764 39.2 2 509 36.4 10.2
Professional services 806 11.4 1 136 16.5 -29.1
Total 7 059 100.0 6 901 100.0 2.4
Operating profit in the financial year was MEUR 0.031 (0.517), and
its share of net sales was 0.4% (7.5%). Operating profit was
negatively affected by the recorded bad debt provisions MEUR 0.318
(0.151). Operating profit was also impacted by the launch costs of
QPR Business Process Management Suite and QPR WorkFlow product in
September and investments initiated in 2006 in local office in
South Africa. It was decided at the end of 2007 that the cost
structure of South African office will be curtailed.
Net profit for the financial year was MEUR 0.204 (0.702), which
corresponded 2.9% (10.2%) from net sales. Net profit for the
financial year includes an effect of an increase of deferred tax
assets in the parent company´s books of MEUR 0.160 (0.260).
As of December 31, 2007 the retained losses, for which no entry
has been made as deferred tax assets in the parent company's
books, nor in the closure of this financial year or earlier
financial years are approximately MEUR 1.0 corresponding to MEUR
0.3 deferred tax assets. In the Group´s balance sheet as of
December 31, 2007, the remaining amount of deferred tax is EUR 502
thousand, and an amount of EUR 479 thousand is in the books of
parent company.
Diluted earnings per share were EUR 0.02 (0.06).
FINANCE AND INVESTMENTS
The value of the total assets of the Group was MEUR 5.091 (5.913).
The Group's investments in non-current assets during the financial
year totaled MEUR 0.464 (0.361).
Cash flow from operating activities was positive in the financial
year and reached MEUR 0.438 (0.976) Cash and cash equivalents at
the end of the year were MEUR 1.245 (1.884).
The Group's interest-bearing liabilities decreased by MEUR 0.108
and were MEUR 0.368 (0.476). Gearing was -38.7% (-54.4%). Return
on investment was 2.5% (19.2%).
The total amount of dividend paid was MEUR 0.489 (0.243).
Short-term liabilities contain deferred revenue a total of MEUR
1.116 (1.532). At the end of financial period, quick ratio was
2.49 (3.31).At the end of the financial year, the Group's equity
stood at MEUR 2.264 (2.586) and the Group's equity ratio reached
57.0% (59.0 %). Return on equity was 8.4% (30.0%).
PERSONNEL
At the end of the financial year, the Group employed a total of 58
people (59).
For incentive and commitment purposes, the Group has personnel
bonus scheme covering the whole personnel and personnel stock
option plan.
PRODUCT DEVELOPMENT
The amount of R&D expenses in the review period rose to MEUR 1.502
(1.245), representing 21.3% (18.0%) of net sales.
During the review period, R&D expenses have been capitalized for a
total amount of EUR 217 thousand (147). The depreciation period of
capitalized R&D expenses is 4 years.
Product development employed 14 (12) people at the end of the
review period, corresponding to 24% of the total personnel. The
core know-how of product development remains centralized within
the own organization. QPR continued long-term co-operation with
its established subcontractors.
During the review period, Research & Development activities
focused on developing new product and product version releases. As
a result, in September 2007 QPR released a new software product,
QPR WorkFlow, which is based on OEM technology, for automating
human centric business processes. At the same time, QPR released
new versions of all other products in the QPR 7 software suite.
This broadened the scope of the QPR software offering,
particularly in the area of Business Process Management (BPM) by
introducing full support for the BPMN and BPEL standards and
workflow modeling. In December 2007, QPR introduced language
support for Arabic and initiated development to introduce support
for Persian language in early 2008. The QPR product family also
became fully compatible with Microsoft Windows Vista™. As a proof
of this compatibility, QPR ProcessGuide has been Certified for
Microsoft Windows Vista™. During the review period, QPR achieved
the Microsoft Gold Certified Partner status.
QPR offers an interactive, easy-to-use, ready-to-run software that
combines process modeling and analysis (QPR ProcessGuide),
business process automation (QPR WorkFlow), performance management
and measurement (QPR ScoreCard), and business intelligence (QPR
FactView) into one complete solution for risk management and
compliance. With the help of QPR software solutions, organizations
take control of risk and compliance issues, optimize business
processes, improve operational performance and drive strategy
throughout their organization in order to comply with rules and
regulation as well as manage transition caused by strategic or
regulatory demands. The software products developed by QPR are
fast to implement and adapt to customers' evolving requirements
and their chosen management methodology. QPR software applications
are scalable from a single-user to an organization-wide management
system, and integrate seamlessly to the customers' existing
information systems.
The QPR product family has been localized into 24 languages.
DECISIONS MADE BY THE ANNUAL SHAREHOLDERS' MEETING, AND GOVERNANCE
The Annual Shareholders' Meeting held on 14 March 2007 made the
following decisions:
The Annual Shareholders' Meeting confirmed the company's financial
statements and the group's financial statements for the financial
period 1 January - 31 December 2006 and released the Board of
Directors and the Managing Director from liability.
The Annual Shareholders' Meeting approved the Board's proposal
that a per-share dividend of EUR 0.04, a total of EUR 489,430.56,
be paid for the financial year 2006. The record date for the
payment of dividend was 19 March 2007 and the dividend payment
date was 26 March 2007.
The Annual Shareholders' Meeting resolved that the Board of
Directors consist of five (5) ordinary members. The Annual
Shareholders' Meeting elected the following members to the Board
of Directors: Vesa-Pekka Leskinen, Asko Piekkola, Topi Piela,
Jarmo Niemi and Niklas Sonkin. In its first meeting immediately
following the Annual Shareholders' Meeting, the Board of Directors
elected Vesa-Pekka Leskinen as Chairman of the Board.
KPMG Oy Ab, Authorized Public Accountants, continues as QPR
Software Plc's auditor, and Authorized Public Accountant Sixten
Nyman as the principle auditor.
The Annual Shareholders' Meeting decided that the emoluments to
the Chairman of the Board and the other Members of the Board shall
be the same as in previous year.
The Annual Shareholders' Meeting decided to renew the articles of
association. The primary content of the amendment was as follows:
- The provisions on minimum and maximum share capital were
deleted (3§);
- The provisions on minimum and maximum amount of shares were
deleted (4 §);
- The provisions on the record date were deleted (6§);
- The provisions on representation of the company were amended
to correspond to the terminology of the new Companies Act 8§);
- The Articles of Association were amended so that the company
has one (1) auditor, which is required to be an auditing
company approved by the Central Chamber of Commerce (9§);
- The agenda of the Annual Shareholders Meeting was amended to
Correspond to the contents of the new Companies Act and the
Article 13 of the current Articles Of Association - according
to which the Annual Shareholders' Meeting shall be held in
Helsinki, Espoo or Vantaa as decided by the Board of Directors
-was included to the same section (11§); and
- The numbering of the Articles of Association was amended
accordingly.
The company's articles of association is available in its entirety
on the investors section of the company's internet pages, and on
the stock exchange release, published by the company on 14 March
2007.
The Annual Shareholders' Meeting decided to authorize the Board of
Directors to decide on an issue of new shares and conveyance of
the own shares held by the company (share issue) either in one or
in several occasions. In the share issue and/or based on the
special rights a maximum of 4,000,000 new shares can be issued and
a maximum of 250,000 own shares held by the company can be
conveyed. The authorization shall be in force until the next
Annual Shareholders' Meeting. The conditions of the authorization
of the Board are available in their entirety on the investors
section of the company's internet pages, and on the stock exchange
release, published by the company on 14 March 2007.
The Annual Shareholders' Meeting decided to authorize the Board of
Directors to decide on an acquisition of own shares. Based on the
authorization own shares may be acquired, either in one or in
several occasions, the aggregate maximum amount of 250,000 shares.
The authorization shall be in force until the next Annual
Shareholders' Meeting. The conditions of the authorization of the
Board are available in their entirety on the investors section of
the company's internet pages, and on the stock exchange release,
published by the company on 14 March 2007.
At the end of the financial year the members of QPR Software Plc´s
executive management group were CEO Matti Kanninen (Chairman), SVP
Business Operations Jari Jaakkola, VP Strategic Accounts and
Marketing Teemu Lehto, VP Business Operations Finland Matti
Erkheikki, CFO Ritva Lindqvist and VP Products, Research and Care
Tony Virtanen.
CORPORATE GOVERNANCE
QPR Software Plc complies with the Helsinki Exchanges' Guidelines
for Insiders entered into force on 1 January 2006 and the
Recommendation on Corporate Governance entered into force on 1
July 2004. The Company's Corporate Governance Statement is
available in the Investor sector of the Company's website.
http://www.qpr.com. Also, available in the investor
pages is further information, such as, administration of insiders
register, public insiders register, list of major shareholders,
articles of association, charter of the Board, description of how
internal control and internal audit is organized, introductions of
the members of the Board and Executive Management Team, and the
information published by the company to the Helsinki Stock
Exchanges in the financial year 2007.
COMPANY SHARES AND TRADING IN COMPANY SHARES 1-12/2007
The Company's share capital at the end of the review period was
EUR 1,359,089.93 divided into 12,355,363 shares, the book counter-
value being EUR 0.11.
The share capital was increased once during the review period when
119,599 new shares were subscribed based on the stock option
programs 2003/II, 2003/III and 2005/I. The corresponding increase
of EUR 13,155.89 in the Company's share capital was entered in the
Finnish trade register on June 11, 2007.
The Group announced of holding changes in accordance with chapter
2, section 10 of the security market act:
-21 August 2007 the holding of Kauppamainos Oy (Company ID 0109754-5)
in QPR Software Plc had decreased under one-twentieth (1/20)
from 5.73% to 3.85% of QPR Software Plc's share capital and votes.
-24 September 2007 the holding of Oy Autocarrera Ab
(Company ID 0628902-8) in QPR Software Plc had increased above
one-twentieth (1/20) to 5.67% of QPR Software Plc's share capital and votes.
-2 November 2007 the holding of Oy Autocarrera Ab (Company ID 0628902-8)
in QPR Software Plc has increased above one-tenth (1/10) to 10.003%
of QPR Software Plc's share capital and votes.
At the end of review period, the Company had a total of 604
shareholders. During the review period, trading in company shares
amounted to MEUR 2.923, i.e. an average of EUR 11,691 per trading
day. Trading in shares totaled 3,491,055 shares, giving an average
of 13,964 shares per trading day. Turnover in shares corresponds
to 29% of the total shares and the average price was EUR 0.84 per
share.
At the end of the review period, the total market value of the
company shares was MEUR 10.502 at the review period's closing
price of EUR 0.85.
OWN SHARES
QPR Software Plc has one share class and company has repurchased
81.761 of its shares during the period under review for an average
price of EUR 0.79 per share.
At the end of the financial year the company held 81.761 of its
shares with a total nominal value of EUR 8,993.71 and a total
purchase price of EUR 64,531.85. These shares represent 0.66% of
the company´s capital stock. The purchase cost has been deducted
from shareholders´ equity in the consolidated financial statements.
The Board of Directors has been granted by the Annual
Shareholder´s Meeting of 14 March 2007, a share repurchase
authorization, valid until next Annual Shareholders´ Meeting, to
repurchase company shares in total of 250,000 shares at maximum.
According to the authorization the company may acquire own shares
in order to strengthen the company's capital structure, to be used
as payment in corporate acquisitions or when the company acquires
assets related to its business and as part of the company's
incentive programs in a manner and to the extent decided by the
Board of Directors, and to be transferred for other purposes or to
be cancelled.
STOCK OPTION PROGRAMS
During the review period, the Company had three prevailing stock
option programs. Each stock option issued under these stock option
programs entitle to subscribe one new share in the Company.
Based on stock option program 2003/II, there are no more
unconverted stock options on 31 December 2007. At the end of the
review period, QPR Software Plc or any of its subsidiaries held no
more stock options of the stock option program 2003/II.
At the end of the review period, based on stock option program
2003/III, in total of 202.500 hitherto unconverted stock options
have been issued, and 121,290 stock options are held by the
Company's subsidiary. The subscription time will end December 31,
2008.
Based on stock option program 2005/I, there are no more
unconverted stock options on 31 December 2007. QPR Software Plc´s
subsidiary held still 150,401 stock options, but the subscription
period had ended.
At the end of the review period, in total of 202,500 hitherto
unconverted stock options have been issued, and in addition, in
total of 121,290 stock options were in the possession of the
Company's subsidiary, to be given to present and future employees
and management.
SHAREHOLDERS
At the end of the financial year the Company had a total of 604
shareholders. The company has in total of six nominee-registered,
holding in total of 107,951 company shares. At the end of the
financial year, based on the various stock option programs, the
inner circle (including holdings more than 1.0%) and their
immediate circles held issued stock option rights that entitle the
holders to subscribe company shares as follows (each stock option
issued under these stock option programs entitle to subscribe one
new share):
Shareholder Option rights Shares pcs (% of all shares)
Teemu Lehto 30 000 153 654 1.24
SHARES HELD BY THE BOARD AND THE CEO
The members of QPR Software Plc Board of Directors and the CEO
together with their immediate circles held on 31 December 2007 in
total of 1,887,866 QPR Software Plc's shares, corresponding to
15.3 percent of the company's shares and votes. The said amounts
of shares include own holdings as well as the holdings of spouses,
persons under guardianship, and controlled companies.
The Board members and the CEO (together with their immediate
circles) had not any stock option rights issued as at December 31,
2007.
OTHER EVENTS AFTER THE REVIEW PERIOD
The Board of Directors appointed B.A., MBA Jari Jaakkola, 46, as
new Chief Executive Officer. Jaakkola has worked as SVP, Business
Operations for QPR Software since August 2006. QPR Software Plc´s
Chief Executive Officer Matti Kanninen resigned from his position
as of 3 January, 2008.
As of 3 January, QPR Software´s Executive Management Teams
comprises of CEO Jari Jaakkola (chairman), VP, Channel Sales (Asia& Africa) Antti Ainasoja, VP, Channel Sales (Europe & Americas)
Maija Erkheikki, VP, Sales (Finland) Matti Erkheikki, VP,
Marketing & Solutions Development Teemu Lehto, CFO Ritva Lindqvist
and VP, Products, Research & Care Tony Virtanen.
QPR Software Plc has received the following notice of holding
change in accordance with Chapter 2, Section 9 of the Securities
Market Act:
The total holding of Jouko Antero Pelkonen and his controlled
companies Electrosale Oy (company ID 0252032-5) and Pohjolan Rahoitus Oy
(company ID 0486816-5) in QPR Software Plc has increased above one-tenth
(1/10) to 10.098% of QPR Software Plc's share capital and votes.
RISKS AND FACTORS OF UNCERTAINTY IN THE NEAR FUTURE
In the financial statements of 2007 the risks related to the
company's activities have been reported in more detail. It is the
duty of the Board of Directors to approve QPR's risk management
and reporting procedures, and to monitor the adequacy,
appropriateness and effectiveness of the company's risk
management. Risk management relating to company's business
operations is supported by continuous development of the company´s
operating processes.
Reasonable credit risk concerning individual business partners is
characteristic to any international business. QPR seeks to limit
this credit risk by continuous monitoring of receivables and
credit limits. The growth of QPR´s international business and
growing average deal size have increased credit loss risk related
to accounts receivable. To prepare for possible credit losses, the
Group recorded MEUR 0.318 bad debt provision in the financial
year.
QPR Software tightened its standard payment terms in 2007, which
resulted in reduction in trade and other receivables. The
company´s current trade and other receivables decreased in the
balance sheet by MEUR 0.511 to MEUR 2.593. The management of QPR
estimates that the company´s credit loss risk is on customary and
reasonable level.
FUTURE OUTLOOK
QPR Software aims to focus its resources this year especially to
accelerate positive development in Risk Management and Compliance
software solution sales. Risk Management and Compliance software
solution sales already showed strong growth in 2007 in QPR´s
international business.
Closer co-operation with the company´s largest resellers will be
reinforced in international channel management this year. In
marketing, the company prioritizes web marketing and solutions
development, and increases their weight significantly in marketing
mix from previous years.
QPR Software has also decided to step up investments in
utilization of Microsoft´s software platforms when offering its
customers and channel partners comprehensive solutions that are
closely linked to QPR´s own products. QPR believes that this co-
operation with Microsoft will result in efficiency improvements in
marketing and product development. In the last quarter of 2007,
QPR achieved Microsoft Gold Certified Partner status.
The management of QPR Software estimates the Group´s net sales and
operating profit to grow in 2008 compared to previous year. The
nature of the software license business of the QPR Group is
seasonal. Seasonality of large software deals can affect
significantly net sales and profit of one individual quarter.
The Company develops ready-to-run software products for risk
management and compliance, business performance management and
measurement, and business process modeling and analysis. New
product versions will be released to increase value of the
software to customers by broadening the solution scope and by
introducing functionality enhancements especially in the area of
risk management and compliance.
In addition, the Company continues to follow the developments in
the re-structuring of software industry, and aims to actively
participate in it.
ANNUAL GENERAL MEETING, BOARD'S PROPOSALS
The Board of Directors has decided to assemble the Annual General
Meeting of Shareholders, to be held on Wednesday March 12th, 2008,
starting at 9.00 a.m. at the company's headquarters, address:
Huopalahdentie 24, 00350 Helsinki, Finland.
The Board of Directors decided in its meeting on 13 February 2008
to propose to the Shareholders' Meeting that from the financial
year 2007, a dividend of EUR 0.03 per share be paid, a total of
EUR 370,669.08. In the end of financial year 2007, the Group's
distributable funds are EUR 653 thousand. The parent company's
distributable funds are 665,101 euros, of which the profit for the
financial year is 179,469 euros.
In addition, the Board proposes that the Shareholders' Meeting
resolves to authorize the Board to decide on a share issue -
including the conveyance of the own shares held by the company -
and issue of special rights. In the share issue and/or based on
the special rights, a maximum of 4,000,000 shares may be issued
and a maximum of 250,000 own shares held by the company may be
conveyed. Furthermore, the Board proposes that the Shareholders'
Meeting resolves to authorize the Board to decide on an
acquisition of a maximum of 250,000 own shares. The Board also
proposes that the Shareholders' Meeting resolves to amend the
transfer of reserve for invested non-restricted equity.The Board
of Directors further proposes that the Shareholders' Meeting would
resolve to amend the decisions made on 1 October 2003 and on 15 March
2005 regarding the issue of option rights so that the subscription
prices of the shares subscribed based on the option rights will
be entered into the invested non-restricted equity fund.
The Board's proposals in their entirety are available on the
Notice for the Annual General Meeting of Shareholders, which shall
be published as a stock exchange bulletin on 13 February 2008.
QPR SOFTWARE PLC'S FINANCIAL INFORMATION IN 2008
In 2008, QPR Software Plc will publish its financial information
as follows:
Interim Report 1-3/2008 Thursday, April 24, 2008
Interim Report 1-6/2008 Thursday, July 24, 2008
Interim Report 1-9/2008 Thursday, October 23, 2008
The Annual General Meeting will be held on Wednesday, March 12,
2008.
ENCLOSURES: TABLE PART
GROUP`S INCOME STATEMENT 1.1.-31.12.2007
(EUR 1000) 10-12/ 10-12/ 1-12/ 1-12/
2007 2006 2007 2006
Net Sales 1 995 1 787 7 059 6 901
Other operating income 3 107 46 268
Material and services 151 217 689 736
Employee benefit expenses 1 065 1 140 4 048 3 846
Deprecation 67 58 214 206
Other operating income 642 436 2 123 1 864
OPERATING PROFIT 72 43 31 517
Financial income and expenses 6 15 33 60
PROFIT BEFORE TAX 78 58 64 577
Income tax expenses 144 256 140 125
PROFIT FOR THE PERIOD 222 314 204 702
Sharing of profit:
To the parent company´s
shareholders 222 314 204 702
Earnings per share (diluted), EUR 0.02 0.06
Earnings per share, EUR 0.02 0.06
GROUPS`S BALANCE SHEET 31.12.2007
ASSETS
(EUR 1000) 31.12.2007 31.12.2006
NON-CURRENTS ASSETS
Tangible assets 321 307
other intangible assets 448 213
Trade and other receivables 5 75
Deferred tax assets 502 330
CURRENT ASSETS 1 276 925
CURRENT ASSETS
Trade and other receivables 2 570 3 104
Cash and cash equivalents 1 245 1 884
CURRENT ASSETS 3 815 4 988
TOTAL ASSETS 5 091 5 913
EQUITY AND LIABILITIES
(EUR 1000)
EQUITY
Share capital 1 359 1 346
Share premium 231 195
Reserve funds 21 21
Translation differences -70 -49
Retained earnings 722 1 072
THE PARENT COMPANY´S SHAREHOLDERS EQITY 2 264 2 586
TOTAL EQUITY 2 264 2 586
NON-CURRENT LIABILITIES
Interest-bearing liabilities 182 285
NON-CURRENT LIABILITIES 182 285
CURRENT LIABILITIES
Accounts payable and other payables 2 458 2 850
Interest-bearing liabilities 187 191
CURRENT LIABILITIES 2 645 3 041
LIABILITIES 2 827 3 327
TOTAL EQUITY AND LIABILITIES 5 091 5 913
GROUP CASH FLOW STATEMENT
(EUR 1000) 1.1.-31.12. 1.1.-31.12.
2007 2006
CASH FLOW FROM OPERATING ACTIVITIES
Profit for the period 204 702
Adjustments for the profit
Deprecation 214 206
Non-cash transactions -140 -354
Changes in working capital:
Changes in trade and other receivables 560 55
Changes in accounts payable and -401 323
other liabilities
Interest expense and other financial -8 5
expenses
Interest income and other financial income 41 55
Income taxes paid -32 -16
Net cash from operating activities 438 976
CASH FLOWS INVESTING ACTIVITIES
Purchases of tangible assets -140 -173
Purchases of intangible assets -324 -188
Net cash used in investing activities -464 -361
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of share capital 49 25
Repayments of financial leases -108 -95
Purchase of own shares -65 0
Dividends paid -489 -243
Net cash used in financing activities -613 -313
Net change in cash and cash equivalents -639 302
Cash and cash equivalents at the 1 884 1 582
beginning of period
Cash and cash equivalents at the 1 245 1 884
end of period
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´EQUITY 1.1.-31.12.2007
Share-
holders´Share Share Translation Retained
equity issue premium differ. earnings Total
EQUITY 1.1.2007 1 346 0 217 -49 1 072 2 586
Shares issued 13 13
Issue premium 36 36
Employees options 0 0
Dividends paid -489 -489
Translation differences -21 -21
Purchase of own shares -65 -65
Profit for the period 204 204
CHANGE IN
SHAREHOLDERS´EQUITY 1-12 13 0 36 -21 -350 -322
EQUITY 31.12.2007 1 359 0 253 -70 722 2 264
GROUP STATEMENT OF CHANGES IN SHAREHOLDERS´EQUITY 1.1.-31.12.2006
Share
holders´ Share Share Translation Retained
(EUR 1.000) equity issue premium differ. earnings Total
EQUITY 1.1.2006 1 335 0 203 -48 602 2 091
Shares issued 11 11
Issue premium 14 14
Employees options 10 10
Dividends paid -243 -243
Translation differences -1 -1
Profit for the period 702 702
CHANGE IN
SHAREHOLDERS´EQUITY 1-12 11 0 14 -1 470 494
EQUITY 31.12.2006 1 346 0 217 -49 1 072 2 586
GROUP´S COMMITMENTS AND CONTINGENT LIABILITIES
(EUR 000) 31.12.2007 31.12.2006
Commitments and contingent liabilities
Lease liabilities 460 636
Total 460 636
Current leasing liabilities
Leasing liabilities maturing during one year 30 15
Leasing liabilities maturing 2-5 years 21 18
Total 51 33
Total commitments and contingent liabilites 511 669
GROUP INTANGIBLE AND TANGIBLE ASSETS
Increase of intagible assets:
(EUR 000) 31.12.2007 31.12.2006
Cost 1.1. 437 238
Increase 350 199
INCREASE OF TANGIBLE ASSETS:
(EUR 000) 31.12.2007 31.12.2006
Cost 1.1. 748 586
Increase 140 162
GROUP INCOME STATEMENT PER QUARTER
1-3/ 1-3/ 4-6/ 4-6/ 7-9/ 7-9/ 10-12/ 10-12/
(EUR 1000) 2007 2006 2007 2006 2007 2006 2007 2006
Net sales 1 634 1 671 2 225 2 081 1 205 1 362 1 995 1 787
Other operating income 19 159 17 2 7 0 3 107
Material and services 73 120 383 273 82 126 151 217
Employee benefits
expences 1 044 948 1 059 960 879 799 1 065 1 140
Deprecation 42 48 48 49 56 50 67 58
Other operating 476 482 518 572 488 374 642 436
expences
OPERATING PROFIT 19 232 233 228 -293 13 72 43
Finacial 15 25 8 8 4 12 6 15
income/expences
PROFIT BEFORE TAX 34 257 241 236 -289 26 78 58
Income tax expences -15 -71 -58 -53 68 -7 144 256
PROFIT FOR THE PERIOD 19 186 183 184 -221 18 222 314
GROUP KEY FIGURES
Key figures illustrating the financial development of the Group
EUR (000) 2007 2006 2005 2004 2003
Net sales 7 059 6 901 6 364 5 394 5 166
Growth of net sales-% 2.3 8.4 18.0 4.4 -40.8
Operating profit 31 517 849 805 800
% of net sales 0.4 7.5 13.3 14.9 15.5
Profit or loss before tax 64 577 905 694 727
% of net sales 0.9 8.4 14.2 12.9 14.1
Profit for the period 204 702 690 470 709
% of net sales 2.9 10.2 10.8 8.7 13.7
Return on equity,% 8.4 30.0 38.9 44.3 138.3
Return of investments,% 2.5 19.2 32.0 28.7 35.4
Interest bearing liabilities 369 476 811 1 553 1 406
Cash and cash equivalents 1 245 1 884 1 582 767 410
Net liabilities -876 -1 408 -771 786 993
Equity 2 264 2 586 2 091 1 459 1 259
Gearing,% -38.7 -54.4 -36.9 53.9 78.8
Equity ratio,% 57.0 59.0 52.4 36.7 20.7
Total balance sheet 5 091 5 913 5 430 4 792 4 430
Investments in non-current assets 463 361 229 24 98
% of net sales 6.6 5.2 3.6 0.4 1.9
Research and development expences 1 502 1 245 1 324 1 095 1 085
% of net sales 21.3 18.0 20.8 20.3 21.0
Personnel average for period 58 59 48 39 54
Personnel at the beginning of 58 56 40 41 98
period
Personnel at the end of period 58 58 56 40 41
Earnings per share, EUR 0.02 0.06 0.06 0.04 0.02
Earnings per share (diluted), EUR 0.02 0.06 0.06
Equity per share, EUR 0.18 0.21 0.17 0.12 0.07
2007 2006 2005 2004 2003
IFRS IFRS IFRS IFRS FAS
Earnings per share, EUR 0.02 0.06 0.06 0.04 0.02
Earnings per share (diluted), EUR 0.02 0.06 0.06
Equity per share, EUR 0.18 0.21 0.17 0.12 0.07
Dividend per share 0.03 0.04 0.02 0.00 0.00
Dividend/profit, % 181.2 69.0 35.0 0.0 0,0
Effective dividend yield, % 3.53 4.17 3.38
Price/profit(P/E-rate) 51 17 10 13 25
Development of share price
Average stock price, EUR 0.84 0.87 0.57 0.58 0.34
Lowest stock price, EUR 0.73 0.57 0.46 0.46 0.20
Highest stock price, EUR 0.97 1.30 0.65 0.77 0.54
Stock price 31.12., EUR 0.85 0.96 0.59 0.52 0.50
Total market value of shares
31.12., 1 000 EUR 10 502 11 746 7 159 6 273 5 713
Development of shares traded
Turnover million shares 3 491 2 965 5 750 2 605 3 562
Turnover % of the total shares 29.0 24.2 47.4 38.0 31.2
Number of shares 31.12.,
1 000 shares 12 355 12 236 12 134 12 063 11 426
Weighted average 12 302 12 171 12 080 11 816 10 414
Diluted 12 449 12 386 12 243 12 000 11 556
Calculation of Key Indicators:
Return on equity (ROE), %:
Profit for the period x 100
__________________________________________________
Shareholders' equity + minority interest (average)
Return on investment (ROI), %:
Profit before taxes + interest and other financial
expenses x 100
________________________________________________________________
Balance sheet total - non-interest bearing liabilities (average)
Equity ratio, %:
Shareholders' equity x 100
______________________________________________
Balance sheet total - deferred revenue
Gearing, %:
Interest bearing liabilities - cash and cash equivalents x 100
______________________________________________________________
Shareholders' equity
Earnings per share, euro:
Profit for period
_______________________________________________________________
Adjusted number of shares over the financial year (average)
Equity per share, euro:
Shareholders' equity
_____________________________________________________________
Adjusted number of shares at the end of the financial period
Dividend per share, euro:
Total dividend paid
____________________________________________________________
Adjusted number of shares at the end of the financial period
Dividend / profit, %:
Dividend per share x 100
________________________
Earnings per share
Effective dividend yield, %:
Dividend per share (adjusted) x 100
_______________________________________________________
Adjusted share price at the end of the financial period
Price-earnings ratio (P/E):
Adjusted share price at the end of the financial period x 100
_____________________________________________________________
Earnings per share (adjusted)
Market value of share capital:
(Number of shares - own shares) x share price at the end of the
financial period
Turnover of shares, % of share capital:
Turnover (number of shares) x 100
_______________________________________
Number of shares issued (average)
Quick ratio:
Current assets - inventories
_________________________________________
Current liabilities - advances received
MAJOR SHAREHOLDERS 31.12.2007
Number of %-share
shares kpl Shares and votes
Ulkomarkkinat Oy 1 600 000 12.95 %
Vesa-Pekka Leskinen 851 400 6.89 %
+ Kauppamainos Oy 475 170 3.85 %
Total 1 326 570 10.74 %
Alesco S.A 1 300 000 10.52 %
Autocarrera Oy Ab 1 235 917 10.00 %
Jouko Pelkonen 402 000 3.25 %
Pohjolan Rahoitus Oy 504 100 4.08 %
Electrosale Oy 322 000 2.61 %
Total 1 228 100 9.94 %
Kari Junkkonen 512 016 4.14 %
Fortel Invest Oy 425 326 3.44 %
SR EQ Technology 376 000 3.04 %
Päivi Marttila 293 072 2.37 %
Edina Oy 33 900 0.27 %
Total 326 972 2.65 %
Asko Piekkola 316 438 2.56 %
Jaakkola Jari 220 000 1,78 %
Value FM Oy 55 000 0.45 %
Total 275 000 2.23 %
Esa Pääkkönen 246 054 1.99 %
Veli-Mikko Leskinen 232 530 1.88 %
other shareholders 4 190 357 33.92 %
Total 12 355 363 100.00 %
In Helsinki, Finland, February 13th, 2008
Board of Directors of QPR Software Plc
Vesa-Pekka Leskinen, Chairman of the Board
Jarmo Niemi
Asko Piekkola
Topi Piela
Niklas Sonkin
Jari Jaakkola, CEO
QPR SOFTWARE PLC
Hallitus
For more information, please contact:
QPR SOFTWARE OYJ
Jari Jaakkola, CEO
tel +35840 502 6397
jari.jaakkola@qpr.com
http://www.qpr.com
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