2013-04-24 08:00:01 CEST
2013-04-24 08:00:10 CEST
REGULATED INFORMATION
Solteq Oyj - Interim report (Q1 and Q3)
SOLTEQ PLC’S INTERIM REPORT 1.1.-31.3.2013
Solteq Plc Stock Exchange Bulletin 24.4.2013 at 9.00 am
- Solteq Plc's turnover increased 12.9 per cent and totalled 10.0 million euros
(8.8 million euros).
- Solteq Plc's operating profit totalled 544 thousand euros (949 thousand
euros). The operating profit for the collation period includes a total of 276
thousand EUR of one-time profit and expenses as gross.
- For 2013, we estimate our turnover to be approx. 40-43 million EUR the level
of EBIT approx. 6-9 %.
- Earnings per share were 0.03 euros (0.04 euros).
KEY FIGURES
Turnover by operation:
% 1-3/13 1-3/12 1-12/12
Softwareservices 67 64 61
Licences 27 31 32
Hardware 6 5 7
CEO Repe Harmanen:
“In the first quarter, our growth continued at the same level as last year.
On-going projects proceeded as planned and several new solutions were delivered
to serve our clients.
We fell slightly behind the comparable performance target before non-recurring
items but we will continue taking systematic measures to reach the target
performance level.
The growth in the turnover continued in some of our units, but our emphasis
continues to be on overall profit making ability. We are pleased to be able to
state that the business areas in which we have faced challenges before are now
on a good growth and performance path. Preparation for the large projects which
will be completed later this year has, however, impacted our profitability in
the first quarter.
There have been no major changes in the demand for solutions in the sectors
that are important to us, but we are monitoring the situation to be able to
react to possible changes. The prevailing uncertainty in the economy and
consumption seems to delay decisions to launch large new projects. During the
review period, we also encountered a few cases like this.
During the first quarter, we continued the implementation of our strategy. This
year, we will also review the strategy period ending in 2014 and estimate
possible improvement needs. We will report on this process separately during
the course of this year.
In the second quarter, we will continue our measures to make us increasingly
more flexible and better prepared for possible changes in the market
situation.”
BUSINESS ENVIRONMENT AND BUSINESS DEVELOPMENT
Solteq is a leading retail and service industry software service company. We
offer long-term partnership and the markets' widest range of retail and service
industry software services, from the optimisation of the entire supply chain to
the management of consumer-customer information. Our technology-independent
solutions help our customers to guide their business operations as efficiently
and profitably as possible.
Solteq Plc's reported segments are Grocery and special retail, HoReCa;
Wholesale trade, Logistics and Services and Service Business and Maintenance
Management.
The aim of the segmentation is to respond to customer demand as a field total
supplier and therefore to improve the availability of services and ease for our
customers.
Solteq's turnover in the first quarter of was 9.987 thousand euros (8.849
thousand euros).
Solteq's operating profit was 544 thousand euros (949 thousand euros). The
operating profit for the collation period includes a total of 276 thousand EUR
of one-time profit and expenses as gross.
The company's operating margin was 5.5 % (10.7 % in 2012, cleared from one-time
profit and expenses 7.6 %).
Grocery and Special Retail, HoReCa
Solteq's Grocery and Special Retail Segment provides its clients with total
solutions that they can utilise to improve efficiency in terms of logistics,
store operations, customer service, point of sale operations, as well as loyal
customer management.
The grocery and special retail solutions help optimise the management of the
product selection, space, deliveries, logistics and customer satisfaction while
increasing sales and improving the result. The solutions speed up the basic
operations, improve delivery reliability, reduce storage value, increase stock
turnover and enhance predictability. The store always has the right products in
the right place, at the right time, and at the right price.
During the review period the revenue of the Grocery and Special Retail segment
totalled 4.7 million euros and the operating result was 0.6 million euros.
Wholesale Trade, Logistics and Services
Solteq's Wholesale Trade, Logistics and Services Segment provides its clients
with ERP and financial management systems, as well as optimisation, integration
and reporting solutions that support these systems.
Solteq's solutions help clients manage their operations and enhance purchases,
sales, stock management and reporting. The systems can be utilised to improve
delivery reliability, reduce storage value, increase stock turnover and enhance
predictability. Materials flow management ensures that the right goods reach
the right customers at the right time, packed in an optimal manner.
Solteq's wholesale trade, logistics and services systems improve the
effectiveness of operations and enable more flexible and versatile customer
service. At the same time, automated data management enhances the company's
internal operations. Solteq's solutions are used daily by a large number of
clients representing various industries and sectors, such as wholesale, retail
and public administration.
During the review period the revenue of the Wholesale Trade, Logistics and
Services segment totalled 3.9 million euros and the operating result was -0.2
million euros.
Service Business and Maintenance Management
Solteq's Service Business and Maintenance Management Segment provides its
clients with ERP and master data management solutions.
The enterprise resource planning solutions developed for the optimisation of
service processes help clients manage their operations in many ways, for
instance enhance production plant reliability, task and resources management,
field work, sales and customer service, partner network management and
materials management. The solutions are utilised by a large number of clients
representing various industries and sectors, such as energy production,
maintenance services, life cycle services, engineering and technical services
of cities and municipalities, property management services, and home and care
services.
The Service Business and Maintenance Management Segment also provides client
companies with services and products related to business critical data (master
data) in the form of master data improvement projects, data maintenance
services outsourced to master data service centres, software technologies for
master data management, and consultation services. The aim of these services is
to ensure that the data in the systems that support the clients' enterprise
resource planning and decision making processes are of high quality, compatible
and up-to-date. Solteq's master data management solutions are used by clients
across industries and sectors.
During the review period the revenue of the Enterprise resource planning of
services segment totalled 1.4 million euros and the operating result was 0.2
million euros.
TURNOVER AND RESULT
Turnover increased by 12.9 % compared to the previous year and totalled 9.987
thousand euros (previous review period 8.849 thousand euros).
Turnover consists of several individual clienteles. At the most, one client
corresponds to less than ten per cent of the turnover.
The profit for the review period was 544 thousand euros (949 thousand euros),
the operating profit before taxes was 481 thousand euros (837 thousand euros)
and the operating profit for the review period was 360 thousand euros (493
thousand euros).
BALANCE SHEET AND FINANCING
The total assets amounted to 27.522 thousand euros (26.760 thousand euros).
Liquid assets totalled 2.169 thousand euros (1.455 thousand euros). In addition
to liquid assets the company had unused account limits totalling 1.500 thousand
euros at the end of the review period. Solteq Group's interest-bearing
liabilities were 6.333 thousand euros (7.175 thousand euros).
Solteq Group's equity ratio was 35.9 per cent (35.5 per cent).
INVESTMENTS, RESEARCH AND DEVELOPMENT
Net investment during the review period was 420 thousand euros (6.891 thousand
euros).
Research and development
Solteq's research and development costs consist mainly of personnel costs. When
developing basic products, it is Solteq's strategy to cooperate with global
actors such as SAP, Symphony EYC and Microsoft and utilize their resources and
distribution channels. Own development efforts are focused on added value
products and developing tailored service concepts.
During the review period product development costs were not amortized in
accordance with IFRS standards (none in the reference year, either).
PERSONNEL
The number of permanent employees at the end of the review period was 290
(288). The average number of personnel during the review period was 289 (218).
In the end of the review period the number of personnel could be divided as
follows: Grocery and special retail, HoReCa segment: 103 people; Wholesale
trade, Logistics and Services: 95 people; Service Business and Maintenance
Management segment: 40 people and 52 people in shared functions.
RELATED PARTY TRANSACTIONS
Solteq's related parties include the board of directors, managing director and
the management team. There has not been any significant changes related parties
after the 2012 year end closing.
SHARES, SHAREHOLDERS AND TREASURY SHARES
Solteq Plc's equity on 31.3.2013 was 1.009.154,17 euros which was represented
by 14.998.061 shares. The shares have no nominal value.
At the end of the review period, the amount of treasury shares in Solteq Plc
and the group companies Solteq Management Oy's and Solteq Management Team Oy's
possessions were 773.404 shares. The amount of treasury shares represented 5.2
% of the total amount of shares and votes at the end of the review period. The
equivalent value of acquired shares was 52.039 euros.
After the review period, 2.4.2013 one flagging announcement was made. The
Mutual Insurance Company Pension Fennia and LocalTapiola Mutual Pension
Insurance Company will form a new Pension Company starting from 1.1.2014. The
merger still requires the acceptance from the authorities and the general
meeting. If the merger is realized, this leads to a situation where the new
company owns more than 10 % of the shares and votes in Solteq Plc.
Exchange and share price
During the review period, the exchange of Solteq's shares on the Helsinki Stock
Exchange was 0.3 million shares (0.7 million shares) and 0.5 million euros (0.7
million euros). The highest price during the review period was 1.65 euros and
the lowest price was 1.20 euros. The weighted average price of the share was
1.45 euros and the price ending was 1.46 euros. The market value of the
company's shares in the end of the review period totalled 21.9 million euros
(13.7 million euros).
Ownership
At the end of the review period, Solteq had a total of 1.795 shareholders
(1.821 shareholders). Solteq's 10 largest shareholders owned 11.298 thousand
shares, amounting to 75.3 per cent of the company's shares and votes. Solteq
Plc board members owned a total of 5.523 thousand shares which equals 36.8 per
cent of the company's shares and votes.
ANNUAL GENERAL MEETING
At Solteq Plc's Annual General Meeting on 15 March 2013 the 2012 financial
statements were adopted and the members of the board and the managing director
were discharged from liability for the 2012 review period.
In the meeting was accepted the proposal by the board that for the financial
year 2012, there will be paid a dividend of 0.04 euros per each share on the
market. In addition to this, the annual general meeting authorized the board to
decide on a distribution of dividend, or other distribution of funds from the
equity trust, for an amount of maximum 0.04 euros. The board is also allowed to
decide on the timing and other details of this.
The Annual General Meeting authorized the board to acquire or pledge the
company's own shares in such a way that the amount of own shares can be at any
time maximum 10 per cent of the whole amount of company shares. With this
authorization, shares can be acquired or pledged in order to develop the equity
structure; or to be used as part of the personnel incentive system; or as a
funding or for the realization of acquisitions of another company; or for other
business arrangements; or they can be disclosed or invalidated. These shares
can be acquired also in other ratios than the shareowners ownership ratio. The
shares should be acquired from the public stock exchange. The board can decide
on the other conditions for this procedure. This authorization is valid until
next annual general meeting.
The Annual General Meeting authorized the board to decide on an issue of shares
for a maximum amount of 3 000 000 new or existing shares, owned by the company,
in one or several lots. The issue of shares should be implemented as a directed
issue, on the contrary to shareowners subscription rights. With this
authorization the board decides on all other conditions for the share issue.
This authorization is valid until next Annual General Meeting.
BOARD OF DIRECTORS AND AUDITORS
Six members were elected to the Board of Directors. Ali Saadetdin, Seppo Aalto,
Markku Pietilä, Matti Roininen, Sirpa Sara-aho and Jukka Sonninen continued as
members of the board. The Board elected Ali Saadetdin to act as the Chairman of
the Board.
KPMG Oy Ab, Authorized Public Accountants, is re-elected as Solteq's auditors.
Lotta Nurminen, APA, was elected to act as the chief auditor.
EVENTS AFTER THE REVIEW PERIOD
No events have occurred that require reporting after the review period.
RISKS AND UNCERTAINITIES
The key uncertainties and risks in short term are related to the timing and
pricing of business deals that are the basis for revenue, changes in the level
of costs and the company's ability to manage extensive contract agreements and
deliveries.
The key business risks and uncertainties of the company are monitored
constantly as a part of the board of directors' and management team's duties.
The company has not organized a separate internal audit organization or
committee.
PROSPECTS
Solteq Plc estimates that for 2013 our turnover to be approx. 40-43 million EUR
the level of EBIT approx. 6-9 %.
Financial Reporting
This interim report has been prepared in accordance with the recognition and
measurement principles of IFRS-standards as is Financial Statements 2012.
The financial result is reported through three business areas: Grocery and
special retail, HoReCa; Wholesale Trade, Logistics and Services and Service
Business and Maintenance Management. The most essential product and service
types of the Solteq group of companies are software services, licenses and
hardware sales.
All forecasts and estimates presented in the interim report are based on the
current views of management on the economic environment and outlook. Because of
this, the results can differ as a result of, among other factors, changes in
economy, markets and competitive conditions, changes in the regulatory
environment and other government actions.
The interim report is unaudited.
FINANCIAL INFORMATION
GROUP PROFIT AND LOSS ACCOUNT
(TEUR)
1.1.- 1.1.- 1.1.-
31.3.2013 31.3.2012 31.12.2012
NET TURNOVER 9 987 8 849 39 016
Other operating
income 4 891 900
Raw materials and
services -2 185 -2 213 -10 369
Staff expenses -5 042 -4 372 -19 304
Depreciation and impairments -299 -227 -1 126
Other operating
expenses -1 921 -1 979 -6 386
OPERATING RESULT 544 949 2 731
Financial income and
expenses -63 -112 -298
RESULT BEFORE TAXES 481 837 2 433
Income taxes -121 -344 -735
360 493 1 697
OTHER ITEMS OF TOTAL COMPREHENSIVE INCOME
Cash flow hedging 20 19 -45
Other items of total comprehensive income
after taxes 15 14 -34
TOTAL COMPREHENSIVE INCOME
375 507 1 663
Total profit for the period attributable to
Owners of the parent 360 493 1 697
Total comprehensive income attributable to
Owners of the parent 375 507 1 663
Earnings / share,
e(undiluted) 0,03 0,04 0,12
Earnings / share,
e(diluted) 0,03 0,04 0,12
Taxes corresponding to the result have been presented as taxes for the period.
GROUP BALANCE SHEET (TEUR) 31.3.2013 31.3.2012 31.12.2012
ASSETS
NON-CURRENT ASSETS
Intangible assets
Intangible rights 3 408 4 022 3 590
Goodwill 12 730 12 728 12 728
Tangible assets 1 276 944 942
Investments
Other shares and similar
rights of ownership 546 524 538
Trade receivables 63 67 63
Total non-current
assets 18 023 18 285 17 861
CURRENT ASSETS
Inventories 101 0 126
Short-term debtors 7 229 7 020 7 867
Cash and cash equivalents 2 169 1 455 1 242
Total current
assets 9 499 8 475 9 235
TOTAL ASSETS 27 522 26 760 27 096
EQUITY AND LIABILITIES
CAPITAL AND RESERVES ATTRIBUTABLE TO THE SHAREHOLDERS
OF THE PARENT COMPANY
Share capital 1 009 1 009 1 009
Company's own shares -933 -933 -933
Share premium account 75 75 75
Account for cash flow
hedging -34 0 -49
Unrestricted equity
fund 6 392 6 935 6 368
Retained earnings 3 004 1 911 1 910
Result for the
financial period 360 493 1 697
Total equity 9 873 9 490 10 077
Non-current liabilities
Deferred tax liabilities 1 196 47 1 048
Other non-current liabilities 4 562 5 568 4 827
Current liabilities 11 891 11 655 11 144
Total liabilities 17 649 17 270 17 019
TOTAL EQUITY AND
LIABILITIES 27 522 26 760 27 096
FINANCIAL PERFORMANCE 1-3/2013 1-3/2012 1-12/2012
INDICATORS (IFRS)
Net turnover MEUR 10,0 8,8 39,0
Change in net turnover 12,9 % 29,2 % 43,7 %
Operating result MEUR 0,5 0,9 2,7
% of turnover 5,5 % 10,7 % 7,0 %
Result before taxes MEUR 0,5 0,8 2,4
% of turnover 4,8 % 9,5 % 6,2 %
Equity ratio, % 35,9 35,5 37,2
Gearing, % 42,2 % 60,3 % 51,5 %
Gross investments in
non-current assets MEUR 0,4 6,9 7,4
Return on equity, % 15,1 % 26,8 % 21,2 %
Return on investment, % 13,8 % 27,7 % 20,8 %
Personnel at end of
period 290 288 288
Personnel average
for period 289 218 270
KEY INDICATORS PER SHARE
Earnings / share, e 0,03 0,04 0,12
Earnings / share,
e(diluted) 0,03 0,04 0,12
Equity / share, e 0,66 0,67 0,67
SEGMENT INFORMATION
Turnover by segment:
Me 1-3/13 1-3/12 Change
Grocery and special retail, HoReCa 4,7 3,1 +1,6
Wholesale trade, Logistics and
Services 3,9 4,4 -0,5
Service Business and
Maintenance Management 1,4 1,3 +0,1
Total 10,0 8,8 +1,2
Operating result by segment:
Me 1-3/13 1-3/12 Change
Grocery and special retail, HoReCa 0,6 0,2 +0,4
Wholesale trade, Logistics and
Services -0,2 0,9 -1,1
Service Business and
Maintenance Management 0,2 -0,1 +0,3
Total 0,5 0,9 -0,4
QUARTERLY KEY INDICATORS (MEUR)
2Q/11 3Q/11 4Q/11 1Q/12
Net turnover 7,32 5,32 7,65 8,85
Operating result 0,32 0,29 0,47 0,95
Result before taxes 0,27 0,26 0,43 0,87
2Q/12 3Q/12 4Q/12 1Q/13
Net turnover 10,4 8,52 11,21 9,99
Operating result 0,39 0,51 0,88 0,54
Result before taxes 0,32 0,44 0,84 0,48
CASH FLOW STATEMENT (MEUR)
1-3/2013 1-3/2012 1-12/2012
Cash flow from business
operations 2,00 0,65 2,28
Cash flow from capital
expenditure -0,46 -5,47 -5,95
Cash flow from financing activities
Own shares 0,00 -0,09 -0,10
Dividend distribution -0,52 0,00 0,00
Return of equity (paid) 0,00 0,00 -0,45
Directed issue 0,00 3,13 3,02
Loan agreements -0,09 2,96 2,17
Cash flow from financing
activities -0,61 6,00 4,64
Change in cash and cash
equivalents 0,93 1,18 0,97
TOTAL INVESTMENTS (TEUR)
1-3/2013 1-3/2012 1-12/2012
Continuing operations,
group total 420 6 891 7 439
LIABILITIES (MEUR) 31.3.2013 31.3.2012 31.12.2012
Company quorantee for
credit limits 10,00 10,00 10,00
Lease contracts, machinery &
equipment 0,08 0,86 0,10
Lease liability,
premises 3,89 4,55 4,08
MAJOR SHAREHOLDERS MARCH 31, 2013
Shares and votes
Number %
1. Saadetdin Ali 3 481 383 23,2
2. Eläke-Fennia Keskinäinen vakuutusyhtiö 2 000 000 13,3
3. Profiz Business Solution Oyj 1 730 170 11,5
4. Aalto Seppo 1 662 206 11,1
5. Keskinäinen Työeläkevakuutusyhtiö Varma 644 917 4,3
6. Pirhonen Jalo 513 380 3,4
7. Solteq Management Oy 400 000 2,7
8. Roininen Matti 359 000 2,4
9. Solteg Management Team Oy 350 000 2,3
10. Saadetdin Katiye 156 600 1,0
10 largest shareholders total 11 297 656 75,3 %
Total of nominee-registered 20 047 0,1 %
Others 3 680 358 24,5 %
Total 14 998 061 100,0 %
STATEMENT OF CHANGES IN GROUP EQUITY (TEUR)
A=Share capital
B=Company's own shares
C=Share premium account
D=Account for cash flow hedging
E=Unrestricted equity fund
F=Retained earnings
G=Total
A B C D E F G
EQUITY 1.1.2012 1 009 -835 75 -14 3 800 1 910 5 945
Total comprehensive income 14 493 507
Acquiring of own shares -99 -99
Directed issue 3 135 3 135
EQUITY 31.3.2012 1 009 -933 75 0 6 935 2 404 9 490
EQUITY 1.1.2013 1 009 -933 75 -49 6 368 3 607 10 077
Total comprehensive income 15 360 375
Directed issue 24 24
Dividend distribution -599 -599
EQUITY 31.3.2013 1 009 -933 75 -34 6 392 3 364 9 873
CALCULATION OF FINANCIAL RATIOS
Solvency ratio, in percentage
equity x 100
----------------------------------
balance sheet total - advances received
Gearing
interest bearing liabilities - cash,
bank balances and securities X 100
-------------------------------------------
equity
Return on Equity (ROE) in percentage
profit or loss before taxation - taxes x 100
----------------------------------------
equity
Profit from invested equity in percentage
profit or loss before taxation +
interest expenses and other financing expenses x 100
----------------------------------------
balance sheet total - non-interest bearing
liabilities
Earnings per share
pre-tax result - taxes
+/- minority interest
------------------------------------
diluted average share issue
corrected number of shares
Diluted earnings per share
diluted profit before taxation -
taxes +/- minority interest
-----------------------------------------------
diluted average share issue
corrected number of shares
Equity per share
equity
-----------------------
number of shares
Financial Reporting
Solteq Plc's financial information bulletins in 2013 have been scheduled as
follows:
- Interim Report 1-6/2013 on Wednesday July 17, 2013 at 9 am
- Interim Report 1-9/2013 on Friday October 18, 2013 at 9 am
More investor information is available from Solteq's website at www.solteq.com
Additional information:
CEO Repe Harmanen,
Tel +358 400 467 717,
E-mail repe.harmanen@solteq.com
CFO Antti Kärkkäinen
Tel +358 20 1444 393 or +358 40 8444 393,
E-mail antti.karkkainen@solteq.com
Distribution:
NASDAQ OMX Helsinki
Key media
© 2024 Nasdaq, Inc. All Rights Reserved |