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2012-08-01 08:00:00 CEST 2012-08-01 08:00:09 CEST REGULATED INFORMATION QPR Software - Interim report (Q1 and Q3)QPR SOFTWARE’S NET SALES GREW 35%, OPERATING PROFIT INCREASED 28% IN THE SECOND QUARTERQPR SOFTWARE PLC STOCK EXCHANGE RELEASE AUGUST 1, 2012 AT 9.00 AM INTERIM REPORT 1 JANUARY - 30 JUNE, 2012 QPR SOFTWARE'S NET SALES GREW 35%, OPERATING PROFIT INCREASED 28% IN THE SECOND QUARTER Summary January - June 2012 -- Net sales EUR 4,616 thousand (January - June 2011: 3,552), growth 30.0%. -- Net sales growth was achieved through strong organic business growth (15.1%) and the consolidation of Nobultec Ltd. -- Operating profit EUR 429 thousand (336), growth 27.7% -- Operating margin 9.3% (9.5) -- Cash flow from operating activities was EUR 1,632 thousand (968), growth 68.6%. -- Profit before taxes EUR 393 thousand (312), growth 26.0% -- Earnings per share EUR 0.02 (0.02) April - June 2012 -- Net sales EUR 2,404 thousand (April - June 2011: 1,784), growth 34.8%. -- Net sales growth was achieved through strong organic business growth (19.0%) and the consolidation of Nobultec Ltd. -- Operating profit EUR 230 thousand (179), growth 28.5% -- Operating margin 9.6% (10.0) -- Cash flow from operating activities was EUR 53 thousand (447), decrease 88.1%. -- Profit before taxes EUR 196 thousand (171), growth 14.6% -- Earnings per share EUR 0.01 (0.01) Outlook 2012 Based on good first half of the year, QPR Software updates its estimate for 2012. Earlier, the Company estimated its consolidated net sales 2012 to show significantly faster growth than in the previous year (growth in year 2011: 8.7%). Now the Company estimates its net sales to grow approximately 18 - 24% in 2012. The Company´s growth businesses, especially enterprise architecture software and service sales, are showing strong performance. However, the increased economic uncertainty in the euro area to some extent weakens the visibility for the remainder of the year. The Company estimates its operating profit in euros to improve slightly from the previous year (2011: EUR 755 thousand), despite the increasing outlays in its growth businesses. Earlier, the Company estimated its operating profit in euros to remain on the same level as in the previous year, or to improve slightly. In 2012, QPR aims to make significant investments in the development of its new software products QPR ProcessAnalyzer and QPR EnterpriseArchitect, as well as related services. This will, in the short term, have a negative impact on profitability. The Company believes that these outlays are well justified, since these businesses have good growth prospects. The Company focuses on recruiting new channel partners especially for its QPR ProcessAnalyzer and QPR EnterpriseArchitect software products and also increases significantly its personnel resources for service offering development in 2012. Through service offering development the Company aims to grow its local business in Finland, and to accelerate its international software sales by offering complementary service concepts and solutions to its channel partners. KEY FIGURES (EUR 1,000) April - April - Change Jan - Jan - Change Jan - June, June, , % June, June, , % Dec, 2012 2011 2012 2011 2011 Net sales 2,404 1,784 34.8 4,616 3,552 30.0 7,539 Operating 230 179 28.5 429 336 27.7 755 profit % of net sales 9.6 10.0 9.3 9.5 10.0 Profit before 196 171 14.6 393 312 26.0 705 tax Profit for the 124 147 -15.6 273 247 10.5 521 period % of net sales 5.2 8.2 5.9 7.0 6.9 Earnings per 0.02 0.02 0.0 0.04 share, EUR EPS (diluted), 0.02 0.02 0.0 0.04 EUR Equity per 0.22 0.20 10.0 0.24 share, EUR Cash flow from 1,632 968 68.6 1,261 operating activities Cash and cash 1,817 1,747 4.0 1,020 equivalents Free cash flow 1,322 559 136.5 570 Net -1,365 -1,067 27.9 -454 liabilities Gearing, % -49.8 -42.4 -15.3 Equity ratio, 47.1 46.6 44.2 % Return on 19.1 18.9 18.4 equity, % Return on 25.4 20.1 21.5 investment, % REPORTING This interim report complies with requirements of IAS 34 ”Interim Financial Reporting”. Starting from the beginning of the reporting period, the Group has applied certain new or revised IFRS standards and IFRIC interpretations as described in the Consolidated Financial Statements 2011. The implementation of these new and revised requirements have not materially impacted the reported figures. For all other parts, the accounting and valuation principles are the same as they were in the 2011 financial statements. This interim report is unaudited. QPR Software´s business operations consist of software sales and professional services sales. The Company reports income for products and services as follows: Software license sales, Software maintenance services, Software rentals and Professional services. QPR reports the following business segments: Software Sales International (software license and rental sales, maintenance and professional services sales outside of Finland) and Business Operations Finland (software license and rental sales, maintenance and professional services sales in Finland). NET SALES QPR Software´s consolidated net sales in April - June were EUR 2,404 thousand (1,784) and grew 34.8% compared to the equivalent period in the previous year. Organic business growth was 19.0%, and in addition the growth was accelerated by the consolidation of Nobultec Ltd, acquired in summer 2011. Business operations in Finland represented 57% and international operations 43% of net sales. Consolidated net sales in January - June were EUR 4,616 thousand (3,552), and grew 30.0%. Organic business growth was 15.1%, and in addition the growth was accelerated by the consolidation of Nobultec Ltd. Business operations in Finland represented 57 % and international operations 43% of net sales. Net sales by business segments Consolidated net sales by business segments (EUR 1,000): April - April - Change Jan - Jan - Change Jan - June, June, , % June, June, , % Dec, 2012 2011 2012 2011 2011 Software 1,024 932 9.9 1,973 1,916 3.0 3,836 Sales Internationa l Business 1,380 852 62.0 2,643 1,636 61.6 3,703 Operations Finland -------------------------------------------------------------------------------- Total 2,404 1,784 34.8 4,616 3,552 30.0 7,539 QPR Software´s net sales in Finland rose 62.0% in April - June. Strong growth was due to organic growth in QPR´s software and professional services sales and the consolidation of Nobultec Ltd as of August 2011. Net sales were strong especially in software aimed at process and enterprise architecture development, and in related professional services. QPR continued to strengthen its personnel resources in these businesses during the reporting period. In January - June, net sales in Finland rose 61.6% compared to the equivalent period in the previous year. The sources for growth were the same as in April - June. International net sales increased in April - June by 9.9% from the previous year, which was due to good success in international channel net sales. Net sales developed very well in software aimed at process development. In January - June, international net sales increased by 3.0%. Growth was negatively impacted by net sales decrease in QPR´s Russian subsidiary. Net sales by product groups Consolidated net sales by product groups (EUR 1,000): April - April - Change Jan - Jan - Change Jan - June, June, , % June, June, , % Dec, 2012 2011 2012 2011 2011 Software 541 455 18.9 993 903 10.0 1,822 license sales Software 826 755 9.4 1,603 1,592 0.7 3,181 maintenance services Software 282 158 78.5 551 271 103.3 606 rentals Professional 755 416 81.5 1,469 786 86.9 1,930 services -------------------------------------------------------------------------------- Total 2,404 1,784 34.8 4,616 3,552 30.0 7,539 Net sales in all product groups grew in April - June from the previous year. Software license net sales (+18.9%) and software maintenance services net sales (+9.4%) developed favorably, but clearly the fastest growth was recorded in software rentals (+78.5%) and professional services net sales (+81.5%). Recurring revenue (including net sales from software maintenance services and software rentals) grew 21.4%, which was mainly due to very strong new sales performance in late 2011 and during first half of 2012. Strong growth in professional services net sales was due to organic growth and the consolidation of Nobultec Ltd. Net sales in all product groups rose also in January - June. Recurring revenue (including net sales from software maintenance services and software rentals) grew 15.6%. Sources for growth were the same as in April - June. In Finland, the Group delivered software and professional services in the reporting period, among others, to Cargotec, Certia, City of Turku, DNA, Finland´s Environmental Administration, The Finnish Communication Regulatory Authority, The Finnish Defence Forces, The Finnish Tax Administration, The Finnish National Board of Education, HK Ruokatalo, Kemira, Lassila & Tikanoja Group, Metso Paper, The Ministry of Agriculture and Forestry, The Ministry of Education, The Ministry of Social Affairs and Health, Nordic Investment Bank, Onninen Group, Outotec Group, Public Sector ICT Unit at The Ministry of Finance, Rautaruukki Corporation, SOK, Tuko Logistics Cooperative, and Vaisala Corporation. In international markets, the Group delivered software, among others, to Alfa Bank in Russia, Diehl AKO and Robert Bosch GmBH in Germany, Highland Council in the UK, Istanbul CPA in Turkey, Malaysian Administrative Modernisation and Management Planning Unit, Mine Health and Safety Council and North West Corporation in South Africa, City of Pessac and Pouey International in France, Pädagogische Hochschule PHBern and SVA Aargau Sozialversicherung AG in Switzerland, Redecard S.A. in Brazil, and United Chemical Company in Kazakhstan. FINANCIAL PERFORMANCE Operating profit by segment (EUR 1,000): April - April - Change Jan - Jan - Change Jan - June, June, , % June, June, , % Dec, 2012 2011 2012 2011 2011 Software 141 88 60.2 222 242 -8.3 472 Sales Internationa l Business 186 178 4.5 409 265 54.3 646 Operations Finland Not allocated -97 -87 -11.5 -202 -171 -18.1 -363 -------------------------------------------------------------------------------- Total 230 179 28.5 429 336 27.7 755 April - June QPR Software's consolidated operating profit in the second quarter grew by 28.5%, due to strong growth in net sales, and was EUR 230 thousand (179). Operating profit was negatively affected by increased credit losses, amounting to EUR 119 thousand (21) in April - June. After this, the amount of trade receivables over 60 days past due is on a low level and was at the end of the reporting period 9.8% (29.5%) of total trade receivables. Depreciation and amortization grew to EUR 168 thousand (134), which was mainly due to the consolidation of Nobultec Ltd and increase in the amortization of capitalized product development expenses. 39.7% of the Group's depreciation and amortization arise from corporate and business acquisitions made in 2008 - 2011. Operating profit in both Business Operations Finland and in Software Sales International increased year-on-year due to growth in net sales. Group expenses grew 36.2%, which was mainly due to the consolidation of Nobultec and outlays into the Company´s growth businesses. January - June Group operating profit increased to EUR 429 thousand (336), thanks to strong profitable growth in Business Operations Finland. Operating profit in Software Sales International decreased slightly, mainly due to increased credit losses. Credit losses totaling EUR 149 thousand (68) were recorded. Depreciation and amortization grew to EUR 335 thousand (264). Group expenses increased by 30.0%. Sources for growth in depreciation and amortization and expenses were the same as in April - June. Personnel resources were added in the reporting period mainly into enterprise architecture services, process analysis services and product development. The Company also increased marketing expenses compared to the equivalent period in the previous year. Net financial expenses in January - June were EUR 36 thousand (24), of which net interests expenses were EUR 2 thousand (net interest income EUR 2 thousand). Currency losses of EUR 27 thousand were the main reason for increased net financial expenses. Profit before taxes was EUR 393 thousand (312). Income taxes were EUR 120 thousand (65). Profit for the period was EUR 273 thousand (247) and earnings per share were EUR 0.02 (0.02). FINANCE AND INVESTMENTS Cash flow from operating activities developed very favorably in the reporting period January - June and was EUR 1,632 thousand (968). Strong growth was due to accelerated turnover of receivables and good development in software subscription sales (software rentals). Cash and cash equivalents at the end of the reporting period were EUR 1,817 thousand (1,747). The Group's investments in January - June totaled EUR 304 thousand (244). The majority of the investments were made in product development. Interest-bearing liabilities decreased and were EUR 452 thousand (680) at the end of the reporting period. The gearing ratio was -49.8% (-42.4). Current liabilities include deferred revenue in total of EUR 1,600 thousand (1,302). Return on investment rose to 25.4% (20.1). Equity ratio rose from last year and was 47.1% (46.6). At the end of the reporting period, the consolidated shareholders' equity stood at EUR 2,748 thousand (2,525). Return on equity was 19.1% (18.9). The Annual General Meeting on 22 March, 2012 authorized the Board of Directors to decide on issuing a maximum of 4,000,000 new shares, to decide on conveyance of a maximum of 500,000 own shares held by the Company, and to decide on acquiring a maximum of 250,000 own shares. The authorizations are in force until the next Annual General Meeting. The Company issued a stock exchange release on the Board of Directors' decision to start acquiring own shares through public trading in NASDAQ-OMX Helsinki Ltd on March 22, 2012. PRODUCT AND SERVICE DEVELOPMENT Product development expenses in the reporting period were EUR 846 thousand (688), representing 18.3% of consolidated net sales (19.4). In the reporting period, product development expenses have been capitalized for a total amount of EUR 211 thousand (161). The amortization period for capitalized product development expenses is four years. In the reporting period, the amortization was EUR 111 thousand (90). Product development employed 25 persons at the end of the reporting period, which corresponds to 31.6% of the total personnel (24.6). In the reporting period, product development activities focused on the development of a new version of the QPR product family, planned to be released in the autumn 2012. Product development activities are especially focused on the QPR ProcessAnalyzer and QPR EnterpriseArchitect products. In its new process analysis business, the Company has adopted a more active IPR strategy than previously. As a result of this, QPR filed patent applications in respect of five separate inventions in Finland and the USA in the first quarter of 2012. The inventions relate to automated business process discovery based on processing event data. The Company aims to significantly increase its personnel resources for service offering development in 2012. Through service offering development the Company aims to grow its local business in Finland, and to accelerate its international software sales by offering complementary service concepts and solutions to its channel partners. PERSONNEL At the end of the reporting period, the Group employed a total of 79 persons (65). Average number of personnel in the reporting period was 76 (68). At the end of the reporting period 7 persons (10) were working abroad, and the average number of personnel working abroad was 7 (10). Employee benefit expenses totaled EUR 2,654 thousand (2,175). The average age of employees is 35.7 years (35.4). Of the employees, 72% percent have a Master's or Bachelor's degree. 16% of the employees are women (22) and 84% are men (78). For incentive purposes, the Company has a bonus program that covers all employees. Short-term remuneration of the top management (executive management team of the Company) consists of salary, fringe benefits and a possible annual bonus based on net sales and operating profit performance. The maximum annual bonus of executive management team, including the CEO, is 40% of the base salary. Long-term remuneration of the executive management team consists of a share-based incentive plan. In 2011, the Board of Directors of QPR Software decided on a share-based incentive plan for executive management team in years 2011 - 2013. The plan aims to align the objectives of shareholders and key employees to increase shareholder value, to commit key employees to the Company, and to offer them a competitive reward plan based on ownership of shares in the Company. Information on the share-based incentive plan is published in a stock exchange release on 25 March, 2011. SHARES AND TRADING IN THE COMPANY'S SHARES Trading of shares Jan - June, Jan - June, Jan - Dec, 2012 2011 2011 -------------------------------------------------------------------------------- Shares traded, pcs 218,495 226,901 1,122,981 Volume, EUR 189,266 200,923 953,083 % of shares 1.8 1.8 9.0 -------------------------------------------------------------------------------- Shares and market capitalization Jan - June, Jan - June, Jan - Dec, 2012 2011 2011 -------------------------------------------------------------------------------- Total number of shares, pcs 12,444,863 12,444,863 12,444,863 Treasury shares, pcs 221,035 356,150 179,405 Book counter value, EUR 0.11 0.11 0.11 Outstanding shares, pcs 12,223,828 12,088,713 12,265,458 Number of shareholders 586 589 588 Closing price, EUR 0.92 0.87 0.88 Market capitalization, EUR 11,245,922 10,517,180 10,793,603 Acquired treasury shares in the 41,630 33,938 132,591 reporting period, pcs Disposed treasury shares in the 0 0 -249,021 reporting period, pcs Book counter value of treasury shares, 24,314 39,177 19,735 EUR Total purchase value of treasury 203,797 314,340 197,910 shares, EUR Treasury shares, % of all shares 1.8 2.9 1.4 -------------------------------------------------------------------------------- The Annual General Meeting held on 22 March, 2012 approved the Board's proposal that a per-share dividend of EUR 0.03 (0.03), a total of EUR 367,314 (362,876), be paid for the financial year 2011. The dividend was paid to shareholders entered in the Company's shareholder register, maintained by Euroclear Finland Oy, on the record date of March 27, 2012. The dividend payment date was April 3, 2012. OTHER EVENTS IN THE REPORTING PERIOD In the beginning of the reporting period, QPR started the integration of Nobultec Ltd´s business into its Finnish business operations. In connection with the integration, the Group´s service offering, consulting and sales resources have been strengthened and a process driven operating model, suitable for the requirements of growing business, has been adopted. This integration advanced as planned and was finalized in the second quarter. In June, Jaakko Riihinen was appointed Senior Vice President, Products & Technology and member of the executive management team. Mr Riihinen will begin his work on 13 August, 2012. He moves to QPR from Nokia Siemens Networks, where he has since 2008 worked as Head of Research & Development at OSS Business Line as well as in the company's restructuring program. Prior to this, in 2001-2008, he worked as Director, Enterprise Architecture in Nokia and Nokia Siemens Networks. Current VP, Products & Technology Sami Tähtinen will move to develop QPR ProcessAnalyzer OEM business. He continues as member of the executive management team until 12 August, 2012. GOVERNANCE The Annual General Meeting on 22 March, 2012 resolved that the Board of Directors consists of four (4) ordinary members. The Annual General Meeting elected the following members to the Board of Directors: Kirsi Eräkangas, Jyrki Kontio, Vesa-Pekka Leskinen and Topi Piela. In its first meeting immediately following the Annual General 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 auditors. The conditions of all authorizations of the Board and other decisions made by the Annual General Meeting are available in their entirety in the stock exchange release published by the Company on 22 March, 2012 and available on the investors section of the Company's web site, www.qpr.com. SHORT-TERM RISKS AND UNCERTAINTIES Internal control and risk management in QPR Software Plc aims to ensure that the Company operates efficiently and effectively, distributes reliable information, complies with regulations and operational principles, reaches its strategic goals, and ensures the continuity of its business. QPR has identified the following four groups of risks related to its operations: risks related to business operations (country, customer, service delivery, personnel, legal and financial risks as well as risks related to the Company´s resellers), risks related to information and products (QPR products, IPR, data security), risks related to financing (foreign currency, bad debt), and risks related to new businesses (growth of new business, product development investments in new business). The Company has an insurance policy for property, operational and liability risks. The Company monitors country, customer, personnel and finance risks also in the Russian subsidiary OOO QPR Software. QPR has not paid the remaining purchase price of EUR 99 thousand, recognized in its balance sheet, for the business operations of Trodos Consulting and United Project and Services Group to their sellers. In QPR´s opinion, the sellers have not fulfilled the terms set in defining the purchase price. The Company has previously paid a consideration of EUR 165 thousand to the sellers. QPR and the sellers have differing opinions on the purchase price and the employment relationships between the sellers and QPR. QPR seeks to find a solution on the matter primarily through negotiations, and secondarily through arbitration in accordance with the Rules for Expedited Arbitration of the Arbitration Institute of the Central Chamber of Commerce of Finland in Helsinki by a sole arbitrator, as agreed in the Co-operation Agreement signed by QPR and the sellers. Financial risks include reasonable credit risk concerning individual business partners, which is characteristic to any international business. QPR seeks to limit this credit risk by continuous monitoring of standard payment terms, receivables and credit limits. The escalated economic crisis in the euro area has, according to the Management´s estimate, to some extent increased the credit risk that has remained on a moderate level in recent years. In the reporting period, EUR 149 thousand (68) credit losses were recorded. After this, the amount of trade receivables over 60 days past due is on a low level and was at the end of the reporting period 9.8% (30 June 2011: 29.5%, 31 Dec 2011: 11.0%) of total trade receivables. At the end of the reporting period, the Company had not hedged its foreign currency (non-euro) trade receivables. No other significant changes have taken place in QPR's short-term risks and uncertainties during the reporting period. Risks related to the Company's business are further described in the Annual Report 2011, page 16 onwards (www.qpr.com/annual-reports.html). FUTURE OUTLOOK Recent forecasts published by market research firms estimate that the value of global software sales will increase approximately 6% and global professional services sales will increase almost 5% in 2012 compared to 2011. Based on good first half of the year, QPR Software updates its estimate for 2012. Earlier, the Company estimated its consolidated net sales 2012 to show significantly faster growth than in the previous year (growth in year 2011: 8.7%). Now the Company estimates its net sales to grow approximately 18 - 24% in 2012. The Company´s growth businesses, especially enterprise architecture software and service sales, are showing strong performance. However, the increased economic uncertainty in the euro area to some extent weakens the visibility for the remainder of the year. The Company now estimates its operating profit in euros to improve slightly from the previous year (2011: EUR 755 thousand), despite the increasing outlays in its growth businesses. Earlier the Company estimated its operating profit in euros to remain on the same level as in the previous year, or to improve slightly. The timing of large software deals can significantly affect net sales and profit for individual quarters. In 2012, QPR aims to make significant investments in the development of its new software products QPR ProcessAnalyzer and QPR EnterpriseArchitect, as well as related services. This will, in the short term, have a negative impact on profitability. The Company believes that these outlays are well justified, since these businesses have good growth prospects. The Company focuses on recruiting new channel partners especially for its QPR ProcessAnalyzer and QPR EnterpriseArchitect software products and also increases significantly its personnel resources for service offering development in 2012. Through service offering development the Company aims to grow its local business in Finland, and to accelerate its international software sales by offering complementary service concepts and solutions to its channel partners. FINANCIAL INFORMATION Interim Report Jan-Sep 2012 will be published on Thursday, October 25, 2012. QPR SOFWARE PLC BOARD OF DIRECTORS Further information: Jari Jaakkola, CEO Tel. +358 (0) 40 5026 397 www.qpr.com DISTRIBUTION: NASDAQ OMX Helsinki Ltd Main Media Neither this press release nor any copy of it may be taken, transmitted or distributed in or into the United States of America or its territories or possessions or to any person located or resident in any other jurisdiction where it is unlawful to distribute this document. CONSOLIDATED INCOME STATEMENT (EUR 1,000) April - April - Change Jan - Jan - Change Jan - June, June, , % June, June, , % Dec, 2012 2011 2012 2011 2011 Net sales 2,404 1,784 34.8 4,616 3,552 30.0 7,539 Other operating 21 17 23.5 36 38 -5.3 79 income Materials and 115 72 59.7 202 106 90.6 250 services Employee benefit 1,360 1,053 29.2 2,654 2,175 22.0 4,594 expenses Other operating 552 363 52.1 1,032 709 45.6 1,448 expenses -------------------------------------------------------------------------------- EBITDA 398 313 27.2 764 600 27.3 1,326 Depreciation and 168 134 25.4 335 264 26.9 572 amortization -------------------------------------------------------------------------------- Operating profit 230 179 28.5 429 336 27.7 755 Financial income -34 -8 -325.0 -36 -24 -50.0 -50 and expenses -------------------------------------------------------------------------------- Profit before 196 171 14.6 393 312 26.0 705 tax Income taxes -72 -24 200.0 -120 -65 84.6 -184 -------------------------------------------------------------------------------- Profit for the 124 147 -15.6 273 247 10.5 521 period Profit for the period attributable to: Shareholders of 146 146 319 252 530 the parent company Non-controlling -22 1 -46 -5 -9 interests -------------------------------------------------------------------------------- 124 147 273 247 521 Earnings per 0.01 0.01 0.02 0.02 0.04 share (diluted), EUR Earnings per 0.01 0.01 0.02 0.02 0.04 share, EUR Consolidated statement of comprehensive income: Profit for the 124 147 273 247 521 period Exchange rate -37 -3 -85 -15 4 differences from translating foreign operations Income tax - - - - - relating to components of other comprehensive income -------------------------------------------------------------------------------- Total 87 144 188 232 525 comprehensive income Total comprehensive income attributable to: Shareholders of 109 143 234 237 534 the parent company Non-controlling -22 1 -46 -5 -9 interests -------------------------------------------------------------------------------- 87 144 188 232 525 CONSOLIDATED BALANCE SHEET (EUR 1,000) June 30, Dec 31, June 30, 2012 2011 2011 Assets Non-current assets Intangible assets 1,706 1,760 1,372 Goodwill 513 513 0 Tangible assets 141 118 100 Other non-current assets 95 102 215 -------------------------------------------------------------------------------- Total non-current assets 2,455 2,493 1,687 Current assets Trade and other receivables 3,141 4,248 3,287 Cash and cash equivalents 1,817 1,020 1,747 -------------------------------------------------------------------------------- Total current assets 4,958 5,268 5,034 Total assets 7,413 7,761 6,721 ================================================================================ Equity and liabilities June 30, Dec 31, June 30, 2012 2011 2011 Equity Share capital 1,359 1,359 1,359 Other funds 21 21 21 Treasury shares -204 -158 -314 Translation differences -152 -66 -85 Invested non-restricted equity fund 5 5 5 Retained earnings 1,773 1,820 1,543 -------------------------------------------------------------------------------- Equity attributable to shareholders of the 2,802 2,981 2,529 parent company Non-controlling interests -54 -8 -4 -------------------------------------------------------------------------------- Total equity 2,748 2,973 2,525 Non-current liabilities Interest-bearing liabilities 226 340 453 Non-interest-bearing liabilities 0 146 0 -------------------------------------------------------------------------------- Total non-current liabilities 226 486 453 Current liabilities Trade and other payables 4,213 4,076 3,516 Interest-bearing liabilities 226 226 227 -------------------------------------------------------------------------------- Total current liabilities 4,439 4,302 3,743 Total liabilities 4,665 4,788 4,196 Total equity and liabilities 7,413 7,761 6,721 ================================================================================ CONSOLIDATED CASH FLOW STATEMENT (EUR 1,000) Jan - June, Jan - Jan - 2012 June, Dec, 2011 2011 Cash flow from operating activities Profit for the period 273 247 521 Adjustments for the profit 306 250 718 Working capital changes 1,106 476 28 Interest and other financial expenses paid -18 -9 -23 Interest and other financial income received 4 5 27 Income taxes paid -39 0 -10 -------------------------------------------------------------------------------- Net cash from operating activities 1,632 968 1,261 Cash flow from investing activities Acquired subsidiaries 0 0 -565 Purchases of tangible and intangible assets -310 -409 -691 -------------------------------------------------------------------------------- Net cash used in investing activities -310 -409 -1,256 Cash flow from financing activities Repayments of long-term borrowings -113 -113 -226 Repurchase of shares -45 -40 -100 Dividends paid -367 -362 -362 -------------------------------------------------------------------------------- Net cash used in financing activities -525 -515 -688 Net change in cash and cash equivalents 797 44 -683 Cash and cash equivalents at the beginning 1,020 1,702 1,702 of the period Effects of exchange rate changes on cash and 0 1 1 cash equivalents -------------------------------------------------------------------------------- Cash and cash equivalents at the end of the 1,817 1,747 1,020 period CONSOLIDATED STATEMENT OF CHANGES IN EQUITY JANUARY 1 - JUNE 30, 2012 (EUR Share Other Translat Treasu Invested Retaine Non-cont Total 1,000) capita funds ion ry non-restric d rolling l differen shares ted equity earning interest ces fund s s Equity 1,359 21 -66 -158 5 1,820 -8 2,973 Jan 1, 2012 Dividen -367 -367 ds paid Repurch -45 -45 ase of shares Compreh -85 320 -46 188 ensive income -------------------------------------------------------------------------------- Change 0 0 -85 -45 0 -47 -46 -225 in equity -------------------------------------------------------------------------------- Equity 1,359 21 -152 -204 5 1,773 -54 2,748 June 30, 2012 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY JANUARY 1 - DECEMBER 31, 2011 (EUR Share Other Translat Treasu Invested Retaine Non-cont Total 1,000) capita funds ion ry non-restric d rolling l differen shares ted equity earning interest ces fund s s Equity 1,359 21 -70 -275 5 1,653 1 2,694 Jan 1, 2011 Dividen -362 -362 ds paid Repurch -100 -100 ase of shares Disposal of 217 217 treasury shares Compreh 4 529 -9 524 ensive income -------------------------------------------------------------------------------- Change 0 0 4 117 0 167 -9 279 in equity -------------------------------------------------------------------------------- Equity 1,359 21 -66 -158 5 1,820 -8 2,973 Dec 31, 2011 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY JANUARY 1 - JUNE 30, 2011 (EUR Share Other Translat Treasu Invested Retaine Non-cont Total 1,000) capita funds ion ry non-restric d rolling l differen shares ted equity earning interest ces fund s s Equity 1,359 21 -70 -275 5 1,653 1 2,694 Jan 1, 2011 Dividen -362 -362 ds paid Repurch -39 -39 ase of shares Compreh -15 252 -5 232 ensive income -------------------------------------------------------------------------------- Change 0 0 -15 -39 0 -110 -5 -169 in equity -------------------------------------------------------------------------------- Equity 1,359 21 -85 -314 5 1,543 -4 2,525 June 30, 2011 NOTES TO INTERIM FINANCIAL STATEMENTS ACCOUNTING PRICIPLES This interim report complies with requirements of IAS 34 ”Interim Financial Reporting”. Starting from the beginning of the reporting period, the Group has applied certain new or revised IFRS standards and IFRIC interpretations as described in the Consolidated Financial Statements 2011. The implementation of these new and revised requirements have not materially impacted the reported figures. For all other parts, the accounting and valuation principles are the same as they were in the 2011 financial statements. When preparing the consolidated financial statements, management is required to make estimates and assumptions regarding the future and to consider the appropriate application of accounting principles, which means that actual results may differ from those estimated. All amounts presented in this interim report are consolidated figures, unless otherwise noted. The amounts presented in the report are rounded, so the sum of individual figures may differ from the sum reported. This interim report is unaudited. GROUP COMMITMENTS AND CONTINGENT LIABILITIES (EUR 1,000) June 30, Dec 31, June 30, 2012 2011 2011 Business mortgage 1,337 1,337 1,337 Current lease liabilities Liabilities maturing during one year 176 231 276 Liabilities maturing 2-5 years 64 77 136 -------------------------------------------------------------------------------- Lease liabilities total 240 308 412 Total commitments and contingent 1,577 1,645 1,749 liabilities Currency hedging (EUR 1,000) June 30, Dec 31, June 30, 2012 2011 2011 Nominal value 0 0 141 Fair value 0 0 139 GROUP INTANGIBLE AND TANGIBLE ASSETS Increases in intangible assets (EUR 1,000) June 30, 2012 Dec 31, June 30, 2011 2011 Acquisition cost Jan 1 4,491 3,608 3,608 Increase 249 883 199 Increases in tangible assets (EUR 1,000) June 30, 2012 Dec 31, June 30, 2011 2011 Acquisition cost Jan 1 1,158 1,021 1,021 Increase 61 137 51 CHANGE IN GROUP INTEREST-BEARING LOANS (EUR 1,000) June 30, 2012 Dec 31, June 30, 2011 2011 Interest-bearing loans Jan 1 566 792 792 Repayments -113 -226 -113 --------------------------------------------------------------------- Interest-bearing loans 452 566 680 June 30/Dec 31 CONSOLIDATED INCOME STATEMENT BY QUARTER (EUR 1,000) April- Jan - Oct - July - April - Jan - June, 2012 March, 2012 Dec, Sept, June, March, 2011 2011 2011 2011 Net sales 2,404 2,212 2,215 1,772 1,784 1,768 Other operating 21 15 29 12 17 21 income Materials and 115 87 66 78 72 34 services Employee benefit 1,360 1,294 1,361 1,058 1,053 1,122 expenses Other operating 552 480 400 339 363 346 expenses -------------------------------------------------------------------------------- EBITDA 398 366 417 309 313 287 Depreciation and 168 167 151 157 134 130 amortization -------------------------------------------------------------------------------- Operating profit 230 199 267 152 179 157 Financial income -34 -2 -24 -2 -8 -16 and expenses -------------------------------------------------------------------------------- Profit before tax 196 197 243 150 171 141 Income taxes -72 -48 -82 -36 -24 -41 -------------------------------------------------------------------------------- Profit for the 124 149 161 113 147 100 period SEGMENT INFORMATION (1,000 EUR) April - June, April - June, Jan - Jan - Jan - 2012 2011 June, June, Dec, 2012 2011 2011 Net sales Software Sales 1,024 932 1,973 1,916 3,836 International Business Operations 1,380 852 2,643 1,636 3,703 Finland ------------------------------------------------------------------------------ Total net sales 2,404 1,784 4,616 3,552 7,539 EBITDA Software Sales 211 156 358 376 764 International Business Operations 284 244 608 395 925 Finland Not allocated -97 -87 -202 -171 -363 ------------------------------------------------------------------------------ Total EBITDA 398 313 764 600 1,326 Operating profit Software Sales 141 88 222 242 472 International Business Operations 186 178 409 265 646 Finland Not allocated -97 -87 -202 -171 -363 ------------------------------------------------------------------------------ Total operating profit 230 179 429 336 755 Financial income and expenses -34 -8 -36 -24 -50 Income taxes -72 -24 -120 -65 -184 -------------------------------------------------------------------------------- Profit for the period 124 147 273 247 521 Other information Depreciation and amortization Software Sales 70 68 136 134 292 International Business Operations 98 66 199 130 280 Finland ------------------------------------------------------------------------------ Total depreciation and 168 134 335 264 572 amortization GROUP KEY FIGURES EUR (1,000) Jan - June, Jan - June, Jan - Dec, 2012 2011 2011 Net sales 4,616 3,552 7,539 Net sales growth, % 30.0 3.2 8.7 Operating profit 429 336 755 % of net sales 9.3 9.5 10.0 Profit before tax 393 312 705 % of net sales 8.5 8.8 9.4 Profit for the period 273 247 521 % of net sales 5.9 7.0 6.9 Return on equity, % 19.1 18.9 18.4 Return on investment, % 25.4 20.1 21.5 Interest-bearing liabilities 452 680 566 Cash and cash equivalents 1,817 1,747 1,020 Free cash flow 1,322 559 570 Net liabilities -1,365 -1,067 -454 Equity 2,748 2,525 2,973 Gearing, % -49.8 -42.4 -15.3 Equity ratio, % 47.1 46.6 44.2 Total balance sheet 7,413 6,721 7,761 Investments in non-current 304 244 1,478 assets % of net sales 6.6 6.9 19.6 Product development expenses 846 688 1,313 % of net sales 18.3 19.4 17.4 Average number of personnel 76 68 72 Personnel at the beginning of 73 65 65 period Personnel at the end of period 79 65 73 Earnings per share, € 0.02 0.02 0.04 Earnings per share (diluted), € 0.02 0.02 0.04 Equity per share, € 0.22 0.20 0.24 Definitions of key figures are presented on page 45 in the Annual Report 2011. |
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