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 QUARTER
QPR 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.
© 2024 Nasdaq, Inc. All Rights Reserved |