2015-04-23 08:10:00 CEST
2015-04-23 08:10:03 CEST
REGULATED INFORMATION
QPR Software - Interim report (Q1 and Q3)
NET SALES INCREASED 13% AND PROFITABILITY MORE THAN DOUBLED FROM PREVIOUS YEAR JANUARY – MARCH
QPR SOFTWARE PLC STOCK EXCHANGE RELEASE APRIL 23, 2015 AT 9.10 AM
INTERIM REPORT JANUARY - MARCH 2015
NET SALES INCREASED 13% AND PROFITABILITY MORE THAN DOUBLED FROM PREVIOUS YEAR
JANUARY - MARCH
Summary first quarter 2015
-- Net sales EUR 2,524 thousand (2014: 2,225).
-- Net sales rose 13% due to increase in consulting and software license net
sales.
-- Operating profit grew 142% to EUR 259 thousand, (107).
-- Operating margin was 10.3% (4.8)
-- Cash flow from operating activities EUR 1,447 thousand (517).
-- Profit before taxes EUR 272 thousand (103).
-- Profit for the quarter EUR 225 thousand (93).
-- Earnings per share EUR 0.019 (0.008).
Business operations
QPR Software focuses on providing organizations software and professional
services for operational development. Our software and services are used in
over 50 countries. The Company offers its customers insight to their business
operations though modeling, analysis and performance monitoring. This insight
enables customers to streamline and improve business operations and to execute
their strategies swiftly and effectively. The Company´s product portfolio has
been strongly renewed in recent years. The new software products offer
customers innovative and efficient tools to model enterprise architecture, to
automatically discover any processes based on actual event data and to analyze
causes for potential performance problems.
OUTLOOK
Operating environment and market outlook
The leading market research companies estimate that global IT services market
demand grows in 2015 by 2-3 %, compared to 2014.
The Company estimates that in its relevant markets demand for enterprise
architecture modeling, measurement and process analysis software as well as
related services will develop faster than the global IT services market.
Outlook for 2015
In 2015, the Company increases its growth investments in international
distribution of innovative software products developed by the Company. In
international markets, the Company operates mainly through its resellers and
continues to put effort in recruiting new resellers.
In Finland, the Company seeks growth especially from its expanding consulting
business, enterprise architecture and process modeling software sales as well
as process analysis software sales.
The Company estimates its net sales and operating profit in euros to increase
in 2015, compared to 2014.
KEY FIGURES
--------------------------------------------------------------------------------
EUR in thousands, unless otherwise Jan-Mar Jan-Mar Change, Jan-Dec
indicated 2015 2014 % 2014
--------------------------------------------------------------------------------
Net sales 2,524 2,225 13.4 9,541
EBITDA 459 305 50.3 1,857
% of net sales 18.2 13.7 19.5
Operating profit 259 107 141.9 1,095
% of net sales 10.3 4.8 11.5
Profit before tax 272 103 164.5 1,065
Profit for the period 225 93 142.2 890
% of net sales 8.9 4.2 9.3
Earnings per share, EUR 0.019 0.008 142.2 0.074
Equity per share, EUR 0.274 0.235 16.6 0.274
Cash flow from operating activities 1,447 517 179.9 1,617
Cash and cash equivalents 2,427 1,496 62.3 2,427
Free cash flow 1,006 282 702
Net borrowings -2,427 -1,496 62.3 -2,427
Gearing, % -71.2 -51.2 -71.2
Equity ratio, % 57.3 55.8 57.3
Return on equity, % 27.3 12.9 29.3
Return on investment, % 34.2 14.6 35.4
--------------------------------------------------------------------------------
REPORTING
This report complies with requirements of IAS 34 Interim Financial Reporting.
Starting from the beginning of 2015, the Group has applied certain new or
revised IFRS standards and IFRIC interpretations as described in the
Consolidated Financial Statements 2014. The implementation of these new and
revised requirements have not impacted the reported figures. For all other
parts, the accounting principles and methods are the same as they were in the
2014 financial statements. This report is unaudited.
QPR Software innovates, develops, sells and delivers to international markets
software and services aimed at operational development in organizations. QPR
Software reports one operating segment: Operational development of
organizations. In addition to this, the Company reports revenue from products
and services as follows: Software license sales, Software maintenance services,
Software rentals, and Consulting. Software rentals and Software maintenance
services together form the recurring revenue reported by the Company. Recurring
revenue is based on long-term contracts continuing for the time being or for a
fixed period of several years. Typically rental and maintenance charges are
invoiced annually in advance.
As geographic information QPR Software reports geographical areas Finland, rest
of Europe including Russia and Turkey, and rest of the world. Net sales are
reported by the customer´s location.
REVIEW BY THE CEO
The Company´s business developed well in the first quarter, although the
business environment remained challenging and economic growth was weak in most
markets. This was the case especially in the Company's largest market area
Europe (including Finland). However, even in the economic downturn, the sales
development of QPR´s products and services was positive.
In the first quarter 2015, the Company's consulting net sales grew 39% compared
to corresponding period in the previous year. The growth was organic and based
on extending previous customer accounts and good success in new customer
acquisitions.
The Company´s software license net sales develop also favorably and reached 18%
net sales growth. This was mainly due to success in sales of the Company´s new
software products. Software maintenance service net sales (-4%) and software
rental net sales (-1%) were, however, slightly lower than in the previous year.
This was mainly due to expiration of a few significant contracts last year or
in the beginning of this year. Customer churn remained low measured by the
number of expired contracts, but among them there were several economically
significant ones. Software rental net sales were also impacted negatively by
the shift of focus in new software sales from rental sales to license sales in
several markets.
The Company seeks organic growth especially through its new software products,
launched in the 2010s, and through its expanding operational development
consulting. In the international business, the Company's growth strategy is
based on software sales and continued expansion of international reseller
channel. In Finland, the Company's software products have a leading position in
their markets. The strengthening of this position, together with further
expansion of local consulting business, are the main targets in the Finnish
business.
Jari Jaakkola
CEO
NET SALES DEVELOPMENT 1 JANUARY - 31 MARCH, 2015
Net sales in the first quarter were EUR 2,524 thousand (2,225) and increased
13% from the corresponding period of the previous year. The increase was
especially due to successful consulting sales and growth in software license
net sales.
NET SALES BY PRODUCT GROUP
--------------------------------------------------------------------------------
EUR in thousands Jan-Mar 2015 Jan-Mar 2014 Change, % Jan-Dec
2014
--------------------------------------------------------------------------------
Software licenses 355 300 18 1,470
Software maintenance 736 764 -4 3,093
services
Software rentals 439 444 -1 1,901
Consulting 994 717 39 3,077
--------------------------------------------------------------------------------
Total 2,524 2,225 13 9,541
--------------------------------------------------------------------------------
NET SALES BY GEOGRAPHIC AREA
--------------------------------------------------------------------------------
EUR in thousands Jan-Mar 2015 Jan-Mar 2014 Change, % Jan-Dec
2014
--------------------------------------------------------------------------------
Finland 1,746 1,443 21 6,193
Europe incl. Russia and 459 465 -1 2,035
Turkey
Rest of the world 319 317 1 1,313
--------------------------------------------------------------------------------
Total 2,524 2,225 13 9,541
--------------------------------------------------------------------------------
Software license net sales grew 18% compared to previous year, and a major part
of license sales was derived from international markets. The development was
favorable especially in Sweden and The Netherlands. However, software
maintenance services net sales and software rental net sales decreased slightly
(-4% and -1%). This was due to expiration of a few significant contracts, which
was not fully compensated by maintenance services and rental new sales.
Customer churn remained low measured by the number of expired contracts, but
among them there were several economically significant ones. The share of
recurring revenues was 47% (54) of total net sales.
Consulting net sales in the first quarter grew strongly and rose by 39%
compared to previous year. Operational development consulting based on
modeling, process analysis consulting and technical consulting related to QPR
software products all grew rapidly. In addition, the Company offers in Finland
consulting services to improve implementation of SAP enterprise resource
planning processes. Net sales of also these services developed favorably
compared to the previous year.
Out of the of the Group net sales 69% (65) were derived from Finland, 18% (21)
from rest of the Europe (including Russia and Turkey) and 13% (14) from the
rest of the world.
FINANCIAL PERFORMANCE 1 JANUARY 2015 - 31 MARCH 2015
In the first quarter, the Group's operating profit was EUR 259 thousand (107),
or 10.3% of net sales (4.8). Operating profit increased from the previous year
mainly due to higher net sales and moderate increase in costs.
The Group´s fixed costs were EUR 2,265 thousand (2,132), and grew 6.3% compared
to the corresponding period in the previous year. Personnel expenses
represented 72% (72) of the fixed costs and were EUR 1,622 thousand (1,525).
Credit losses, inclusive in fixed costs, were EUR 22 thousand (3).
Financial income and expenses in the review period were EUR 14 thousand (-4).
Financial income included foreign exchange gains of EUR 14 thousand (-4).
Profit before taxes in the quarter was EUR 272 thousand (103) and profit for
the period was EUR 225 thousand (93).
Taxes recorded for the period were EUR -47 thousand (-10). Earnings per share
(fully diluted) were EUR 0.019 (0.008).
FINANCE AND INVESTMENTS
Cash flow from operating activities was EUR 1,447 thousand (517) in the first
quarter. Strong cash flow was due to growing sales and a change in invoicing
practices compared to previous year. Cash and cash equivalents at the end of
the quarter were EUR 2,427 thousand (1,496).
Investments in the first quarter totaled EUR 441 thousand (235). Investments
consisted mainly of product development and extension of the office facilities.
At the end of the quarter, the Company had no interest-bearing liabilities. The
gearing ratio was -71% (-51). Current liabilities include deferred revenue in
total of EUR 2,142 thousand (2,072). Return on investment was 34% (15) in the
first quarter.
At the end of the quarter, equity ratio was 57% (56) and the consolidated
shareholders' equity was EUR 3,411 thousand (2,920). Return on equity was 27%
(13) in the first quarter.
The Annual General Meeting on March 12, 2015 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 700,000 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.
PRODUCT DEVELOPMENT
Product development expenses in the first quarter were EUR 479 thousand (465),
equal to 19% (21) of net sales. Product development expenses do not include
amortization of capitalized product development expenses.
During the quarter, product development expenses were capitalized for a total
amount of EUR 166 thousand (147). The amortization period for capitalized
product development expenses is four years. The amortization of capitalized
product development expenses in the quarter was EUR 115 thousand (84).
The Company develops the following software products: QPR EnterpriseArchitect,
QPR Metrics, QPR ProcessDesigner, and QPR ProcessAnalyzer.
By developing its consulting service products, 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 reseller
partners.
PERSONNEL
At the end of the quarter, the Group employed a total of 85 persons (79).
Average number of personnel during the quarter was 84 (81).
For incentive purposes, the Company has a bonus program that covers all
employees. Remuneration of the top management consists of salary, fringe
benefits and a possible annual bonus based on net sales and operating profit
performance. In 2015, the maximum annual bonus of executive management team,
including the CEO, is 30% of the annual base salary. More information on
incentive plans can be found in the Annual Report
2014(http://www.qpr.com/sites/default/files/QPRSoftwareAnnualReport2014.pdf).
SHARES AND SHAREHOLDERS
--------------------------------------------------------------------------------
Trading of shares Jan-Mar Jan-Mar Change, Jan-Dec
2015 2014 % 2014
--------------------------------------------------------------------------------
Shares traded, pcs 2,041,032 501,248 307 2,828,001
Volume, EUR 2,682,845 464,534 478 2,751,903
% of shares 16.4 4.0 22.7
Average trading price, EUR 1.31 0.93 42 0.97
Treasury shares acquired during the 0 37,400 -100 37,400
year, pcs
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shares and market capitalization Mar 31, Mar 31, Change, Dec 31,
2015 2014 % 2014
--------------------------------------------------------------------------------
Total number of shares, pcs 12,444,863 12,444,863 - 12,444,863
Treasury shares, pcs 457,009 457,009 - 457,009
Book counter value, EUR 0.11 0.11 - 0.11
Outstanding shares, pcs 11,987,854 11,987,854 - 11,987,854
Number of shareholders 1,085 661 64 820
Closing price, EUR 1.49 0.93 60 1.01
Market capitalization, EUR 17,861,902 11,148,704 60 12,107,733
Book counter value of all treasury 50,271 50,271 0 50,271
shares, EUR
Total purchase value of all 439,307 430,307 2 439,307
treasury shares, EUR
Treasury shares, % of all shares 3.7 3.7 - 3.7
--------------------------------------------------------------------------------
The Annual General Meeting held on March 12, 2015 approved the Board's proposal
that a per-share dividend of EUR 0.05 (0.04), a total of EUR 599 thousand
(480), be paid for the financial year 2014. The dividend was paid to
shareholders entered in the Company's shareholder register, maintained by
Euroclear Finland Oy, on the record date of March 16, 2015. The dividend
payment date was April 8, 2015.
OTHER EVENTS DURING THE QUARTER
QPR Software´s sales and deliveries were organized from the beginning of 2015
into four units: Operational Development Software, Operational Development
Consulting, Process Intelligence and Channel Business.
Miika Nurminen was appointed Senior Vice President, Operational Development
Consulting, and member of the Executive Management Team as of 1 January, 2015.
Nurminen has previously held several leadership positions in QPR Software.
Sari Törmälä was appointed Senior Vice President, Operational Development
Software, and member of the Executive Management Team as of 23 February, 2015.
She is also responsible for the Company´s marketing globally. Before QPR
Törmälä worked in Kunnan Taito Oy, a service provider for the local government
sector in Finland providing financial and personnel management services
(2011-2015). As a member of the corporate management team she was responsible
for sales and customer relations. Prior to this she worked as a member of the
corporate management team in Profit Software ltd, a company offering insurance
and banking solutions and services to financial sector in Northern and Baltic
Countries, Germany and Poland, first as Executive Vice President responsible
for client service (2000-2008) and later as Country Manager (2008-2011).
In February, QPR announced that it expands co-operation with a European public
sector health care organization and delivers a project for the organization's
operational development purposes. The total value of the software and
consulting services, delivered by QPR and thus recognizable during the first
half of 2015, is around EUR 140 thousand. Target of the agreed project is to
improve the customer's operations, development and performance as well as
project management. In addition, the project aims for better alignment between
business and IT by linking the business area service layer with IT services.
In March, QPR announced that QPR Software is recognized in international
research company Gartner Inc.´s Market Guide for Enterprise Business Process
Analysis (EBPA) report. The Gartner EBPA Market Guide evaluated the Enterprise
business process analysis marketplace and depicts Gartner's analysis of how
certain vendors measure against criteria for that marketplace. Gartner
evaluated the EBPA vendors on the focus and importance of different use cases,
as well as about the focus and importance of the different EBPA capabilities.
EVENTS AFTER THE REPORTING PERIOD
In April, QPR announced that The U.S. Patent and Trademark Office has granted a
patent to a technology for analyzing and improving business processes with
event instance date, developed by QPR Software. The patented technology
utilizes event instance data obtained from information management systems, and
helps organizations to analyze and develop their business processes. The patent
supports the sale of QPR ProcessAnalyzer software and QPR process intelligence
consulting as well as opens up new opportunities for OEM business.
In April, the Company also announced that the City of Helsinki, the capital of
Finland, has decided to approve QPR Software's offer for delivering process and
enterprise architecture tool as a service. The total value of the delivery
during the year 2015 is approximately 150 thousand €. The value of the entire
four year agreement period is 1.5 million €, out of which the share of revenue
booked as software rentals is over 75%.
The purchase agreement will be confirmed and signed between the parties later,
not earlier than 21 days after all the providers have been notified of the
decision and the appeal instructions. When confirmed, the agreement period is
four years, after which the agreement will continue for the time being.
GOVERNANCE
The Annual General Meeting on March 12, 2015 resolved that the Board of
Directors consists of four (4) ordinary members. The AGM re-elected the
following members to the Board of Directors: Kirsi Eräkangas, Vesa-Pekka
Leskinen and Topi Piela. The AGM selected Juho Malmberg, as a new member, to
join the Board of Directors. Juho Malmberg has previously held leadership
positions, among others, in Accenture, KONE and Zenrobotics. In its meeting
following the Annual General Meeting, the Board of Directors elected Vesa-Pekka
Leskinen as Chairman of the Board.
The AGM elected KPMG Oy Ab, Authorized Public Accountants, to continue as QPR
Software Plc's auditors, with Kirsi Jantunen, Authorized Public Accountant,
acting as principal auditor.
The AGM authorized the Board to decide on issuing new shares, conveying own
shares held by the Company, and repurchasing the Company's own shares.
All authorizations of the Board and other decisions made by the Annual General
Meeting are available in their entirety on the stock exchange release published
by the Company on March 12, 2015 and available on the investors section of the
Company's web site:
https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=649
425&messageId=807345
SHORT-TERM RISKS AND UNCERTAINTIES
Internal control and risk management in QPR Software aims to ensure that the
Company operates efficiently and effectively, distributes reliable information,
complies with regulations and operational principles, reaches its strategic
goals, reacts to changes in the market and operational environment, 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.
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. In the first quarter of 2015 EUR 22 thousand (3)
of credit losses were recorded. The amount of trade receivables over 60 days
past due was 10% (10) of total trade receivables at the end of the quarter.
Approximately 66% of Group's trade receivables were in euro at the end of the
quarter (75). At the end of the quarter, the Company had not hedged its
non-euro trade receivables.
No significant changes have taken place in the Company's short-term risks and
uncertainties during the quarter. Risks and risk management related to the
Company's business are further described in the Annual Report 2014, pages
12-14.
(http://www.qpr.com/sites/default/files/QPRSoftwareAnnualReport2014.pdf).
FINANCIAL INFORMATION
In 2015, QPR Software will publish interim reports in English and Finnish on
the following dates:
-- Interim Report Q2/2015: Thursday, July 30, 2015
-- Interim Report Q3/2015: Wednesday, October 22, 2015
QPR SOFTWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0) 40 5026 397
DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Main Media
Neither this press release nor any copy of it may be taken, transmitted or
distributed, directly or indirectly, in or into the United States of America or
its territories or possessions.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
--------------------------------------------------------------------------------
EUR in thousands, unless otherwise Jan-Mar Jan-Mar Change, Jan-Dec
indicated 2015 2014 % 2014
--------------------------------------------------------------------------------
Net sales 2,524 2,225 13 9,541
Other operating income 15 26
Materials and services 105 85 24 337
Employee benefit expenses 1,622 1,525 6 6,092
Other operating expenses 338 325 4 1,281
--------------------------------------------------------------------------------
EBITDA 459 305 50 1,857
Depreciation and amortization 200 197 1 761
--------------------------------------------------------------------------------
Operating profit 259 107 142 1,095
Financial income and expenses 14 -4 -30
--------------------------------------------------------------------------------
Profit before tax 272 103 165 1,065
Income taxes -47 -10 372 -175
--------------------------------------------------------------------------------
Profit for the period 225 93 142 890
Earnings per share, EUR (basic and 0.019 0.008 142 0.074
diluted)
Consolidated statement of
comprehensive income:
Profit for the period 225 93 890
Other items in comprehensive income
that
may be reclassified subsequently to
profit or loss:
Exchange differences on
translating foreign operations -10 -8 -40
Income tax relating to components
of
other comprehensive income - - -
--------------------------------------------------------------------------------
Total comprehensive income 215 85 850
CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
EUR in thousands Mar 31,2015 Mar 31, Change, % Dec
2014 31,2014
--------------------------------------------------------------------------------
Assets
Non-current assets:
Intangible assets 1,910 1,672 14 1,815
Goodwill 513 513 0 513
Tangible assets 320 202 59 175
Other non-current assets 27 86 -68 27
--------------------------------------------------------------------------------
Total non-current assets 2,770 2,473 12 2,529
Current assets:
Trade and other receivables 2,894 3,336 -13 4,572
Cash and cash equivalents 2,427 1,496 62 1,426
--------------------------------------------------------------------------------
Total current assets 5,321 4,832 10 5,998
Total assets 8,092 7,305 11 8,527
================================================================================
Equity and liabilities
Equity:
Share capital 1,359 1,359 0 1,359
Other funds 21 21 1 21
Treasury shares -439 -430 2 -439
Translation differences -231 -189 22 -221
Invested non-restricted equity 5 5 7 5
fund
Retained earnings 2,696 2,154 25 2,471
--------------------------------------------------------------------------------
Equity attributable to 3,411 2,920 17 3,196
shareholders of the parent
company
Non-current liabilities:
Non-interest-bearing liabilities 21 38 -44 25
--------------------------------------------------------------------------------
Total non-current liabilities 21 38 -44 25
Current liabilities:
Advances received 2,142 2,072 3 1,261
Accrued expenses and prepaid 1,985 2,033 -2 3,223
income
Trade and other payables 533 243 119 822
--------------------------------------------------------------------------------
Total current liabilities 4,658 4,348 7 5,305
Total liabilities 4,681 4,385 7 5,331
Total equity and liabilities 8,092 7,305 11 8,527
================================================================================
CONSOLIDATED CASH FLOW STATEMENT
------------------------------------------------------------------------
EUR in thousands Jan-Mar Jan-Mar Chang Jan-Dec
2015 2014 e, % 2014
------------------------------------------------------------------------
Cash flow from operating
activities:
Profit for the period 225 93 142 887
Adjustments to the profit 189 190 -1 725
Working capital changes 1,057 279 279 25
Interest and other financial -1 -4 -75 -13
expenses paid
Interest and other financial income 0 0 0 3
received
Income taxes paid -23 -42 -45 -10
------------------------------------------------------------------------
Net cash from operating activities 1,447 517 180 1,617
Cash flow from investing
activities:
Purchases of tangible and -441 -235 88 -915
intangible assets
------------------------------------------------------------------------
Net cash used in investing -441 -235 88 -915
activities
Cash flow from financing
activities:
Repayments of long-term borrowings - -113 -100 -113
Repurchase of shares - -35 -100 -44
Dividends paid - - -480
------------------------------------------------------------------------
Net cash used in financing 0 -148 -100 -637
activities
Net change in cash and cash 1,006 133 656 65
equivalents
Cash and cash equivalents at the 1,426 1,365 4 1,365
beginning of the period
Effects of exchange rate changes on -5 -1 -4
cash and cash equivalents
------------------------------------------------------------------------
Cash and cash equivalents at the 2,427 1,496 62 1,426
end of the period
------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
--------------------------------------------------------------------------------
EUR in Share Other Translatio Treasur Invested Retained Total
thousand capita funds n y non-restricted earnings
s l difference shares equity fund
s
--------------------------------------------------------------------------------
Equity 1 359 21 -181 -395 5 2 061 2 871
Jan 1,
2014
Repurchas -35 -35
e of
shares
Comprehen -8 93 85
sive
income
Equity 1 359 21 -189 -430 5 2 154 2 920
Mar 31,
2014
--------------------------------------------------------------------------------
Dividends -480 -480
paid
Repurchas -9 -9
e of
shares
Comprehen -32 797 765
sive
income
--------------------------------------------------------------------------------
Equity 1 359 21 -221 -439 5 2 471 3 196
Dec 31,
2014
Comprehen -10 225 215
sive
income
--------------------------------------------------------------------------------
Equity 1 359 21 -231 -439 5 2 696 3 411
Mar 31,
2015
--------------------------------------------------------------------------------
NOTES TO INTERIM FINANCIAL STATEMENTS
ACCOUNTING PRICIPLES
This report complies with requirements of IAS 34 ”Interim Financial Reporting”.
Starting from the beginning of 2015, the Group has applied certain new or
revised IFRS standards and IFRIC interpretations as described in the
Consolidated Financial Statements 2014. The implementation of these new and
revised requirements have not impacted the reported figures. For all other
parts, the accounting principles and methods are the same as they were in the
2014 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 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 report is unaudited.
During the reporting period, the Group did not have any financial instruments
measured at fair value.
INTANGIBLE AND TANGIBLE ASSETS
------------------------------------------------------------------------------
EUR in thousands Jan-Mar 2015 Jan-Mar 2014 Jan-Dec 2014
------------------------------------------------------------------------------
Increase in intangible assets:
Acquisition cost Jan 1 6,650 6,112 6,112
Increase 266 221 538
Increase in tangible assets:
Acquisition cost Jan 1 1,425 1,351 1,351
Increase 175 20 74
------------------------------------------------------------------------------
CHANGE IN INTEREST-BEARING LIABILITIES
------------------------------------------------------------------------------
EUR in thousands Jan-Mar 2015 Jan-Mar 2014 Jan-Dec 2014
------------------------------------------------------------------------------
Interest-bearing liabilities Jan 1 - 113 113
Repayments - -113 -113
------------------------------------------------------------------------------
Interest-bearing liabilities Mar 31/ - - -
Dec 31
------------------------------------------------------------------------------
PLEDGES AND COMMITMENTS
--------------------------------------------------------------------------------
EUR in thousands Mar 31, Mar 31, Dec 31, Change,
2015 2014 2014 %
--------------------------------------------------------------------------------
Business mortgages (held by the 1,391 1,393 1,391 0
Company)
Minimum lease payments based on
lease
agreements
Maturing in less than one year 329 167 304 8
Maturing in 1-5 years 347 54 436 -20
--------------------------------------------------------------------------------
Total 676 221 740 -9
Total pledges and commitments 2,067 1,614 2,131 -3
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT BY QUARTER
--------------------------------------------------------------------------
EUR in thousands Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014
--------------------------------------------------------------------------
Net sales 2,524 2,685 2,167 2,465 2,225
Other operating income - - 1 10 15
Materials and services 105 94 66 92 85
Employee benefit expenses 1,622 1,640 1,370 1,557 1,525
Other operating expenses 338 336 316 304 325
--------------------------------------------------------------------------
EBITDA 459 615 416 522 305
Depreciation and amortization 200 198 189 178 197
--------------------------------------------------------------------------
Operating profit 259 417 227 344 107
Financial income and
expenses 14 -8 -5 -12 -4
--------------------------------------------------------------------------
Profit before tax 272 409 222 332 103
Income taxes -47 -68 -54 -43 -10
--------------------------------------------------------------------------
Profit for the period 225 341 167 288 93
--------------------------------------------------------------------------
GROUP KEY FIGURES
--------------------------------------------------------------------------------
EUR in thousands, unless Jan-Mar or Mar Jan-Mar or Mar Jan-Dec or Dec
otherwise indicated 31, 2015 31, 2014 31, 2014
--------------------------------------------------------------------------------
Net sales 2,524 2,225 9,541
Net sales growth, % 13.4 6.9 9.8
EBITDA 459 305 1,857
% of net sales 18.2 13.7 19.5
Operating profit 259 107 1,095
% of net sales 10.3 4.8 11.5
Profit before tax 272 103 1,065
% of net sales 10.8 4.6 11.2
Profit for the period 225 93 890
% of net sales 8.9 4.2 9.3
Return on equity (per 27.3 12.9 29.3
annum), %
Return on investment (per 34.2 14.6 35.4
annum), %
Borrowings - - -
Cash and cash equivalents 2,427 1,496 1,426
Free cash flow 1,006 282 702
Net borrowings -2,427 -1,496 -1,426
Equity 3,411 2,920 3,196
Gearing, % -71.2 -51.2 -44.6
Equity ratio, % 57.3 55.8 -44.0
Total balance sheet 8,092 7,305 8,527
Investments in non-current 441 236 915
assets
% of net sales 17.5 10.6 9.6
Product development 479 465 1,847
expenses
% of net sales 19.0 20.9 19.4
Average number of personnel 84 81 81
Personnel at the beginning 78 79 79
of period
Personnel at the end of 85 79 78
period
Earnings per share, EUR 0.019 0.008 0.074
Equity per share, EUR 0.274 0.235 0.257
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