2013-02-05 11:00:02 CET
2013-02-05 11:00:09 CET
REGULATED INFORMATION
QPR Software - Financial Statement Release
CORRECTION: QPR SOFTWARE’S NET SALES GREW 24%, EARNINGS PER SHARE INCREASED 26% IN 2012
Correction to the record date of the dividend payment
QPR SOFTWARE PLC STOCK EXCHANGE RELEASE FEBRUARY 5, 2013 AT 12:00 AM
This stock exchange bulletin replaces the previous Financial Statement Release.
The change concerns the record date of the dividend payment. The correct record
date is 19 March, 2013. The payment date of the dividend is 3 April, 2013, as
earlier announced.
QPR SOFTWARE PLC STOCK EXCHANGE RELEASE FEBRUARY 5, 2013 AT 9.45 AM
FINANCIAL STATEMENT BULLETIN 2012
QPR SOFTWARE'S NET SALES GREW 24%, EARNINGS PER SHARE INCREASED 26% IN 2012
Summary
Full year 2012
-- Net sales EUR 9,321 thousand (2011: 7,539), growth 24%.
-- Net sales growth was achieved through strong organic business growth (15%)
and the consolidation of Nobultec Ltd.
-- Recurring revenue (software rentals and maintenance services) grew 17%.
-- Operating profit EUR 874 thousand (755), growth 16%.
-- Operating margin 9.4% (10.0).
-- Cash flow from operating activities was EUR 1,777 thousand (1,261), growth
41%.
-- Profit before taxes EUR 833 thousand (705), growth 18%.
-- Profit for the period EUR 662 thousand (521), growth 27%.
-- Earnings per share EUR 0.054 (0.043), growth 26%.
-- The Board of Directors proposes to the Annual General Meeting that the
Company pay a dividend of EUR 0.04 per share for the financial year 2012
(2011: 0.03).
Fourth quarter 2012
-- Net sales EUR 2,693 thousand (fourth quarter 2011: 2,215), growth 22%.
-- Net sales growth was achieved through strong organic business growth.
-- Recurring revenue grew 14%.
-- Operating profit EUR 281 thousand (267), growth 5%.
-- Operating margin 10.4% (12.1).
-- Cash flow from operating activities was negative EUR 85 thousand (positive
215).
-- Profit before taxes EUR 271 thousand (243), growth 12%.
-- Profit for the period EUR 237 thousand (161), growth 47%.
-- Earnings per share EUR 0.019 (0.013), growth 46%.
Outlook 2013
QPR estimates its net sales to continue strong organic growth in 2013, arising
especially from software rental and enterprise architecture services. The
Company estimates its operating profit in euros to be approximately on the same
level as in 2012, due to continuing outlays in QPR's growth businesses.
In 2013, the Company aims to continue significant investments in the
development of its new software products. QPR has launched two new software
products that have excellent growth prospects. QPR EnterpriseArchitect has
already established a leading market position in Finland, and in 2013 the
Company focuses on its international growth. The Company also invests in
recruiting OEM partners for its innovative new QPR ProcessAnalyzer software
product. By developing its professional service offering, 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 in thousands, unless Oct-Dec, Oct-Dec, Change Jan-Dec Jan-Dec, Change
otherwise indicated 2012 2011 , % , 2012 2011 , %
--------------------------------------------------------------------------------
Net sales 2,693 2,215 21.6 9,321 7,539 23.6
Operating profit 281 267 5.2 874 755 15.8
% of net sales 10.4 12.1 9.4 10.0
Profit before tax 271 243 11.5 833 705 18.2
Profit for the period 237 161 47.2 662 521 27.1
% of net sales 8.8 7.3 7.1 6.9
Earnings per share, EUR 0.019 0.013 46.2 0.054 0.043 25.6
Equity per share, EUR 0.240 0.239 0.4 0.240 0.239 0.4
Cash flow from operating -85 215 -139.5 1,777 1,261 40.9
activities
Cash and cash equivalents 1,404 1,020 37.6 1,404 1,020 37.6
Free cash flow -299 129 -331.8 1,165 570 104.4
Net liabilities -1,065 -454 134.6
Gearing, % -35.7 -15.3
Equity ratio, % 51.3 44.2
Return on equity, % 22.2 18.4
Return on investment, % 25.5 21.5
--------------------------------------------------------------------------------
REPORTING
This report complies with requirements of IAS 34 ”Interim Financial Reporting”.
Starting from the beginning of 2012, 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 report is unaudited.
QPR Software's business operations consist of software 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: International Operations (software
license and rental sales, maintenance and professional services sales outside
of Finland) and Finland Operations (software license and rental sales,
maintenance and professional services sales in Finland).
NET SALES
New software sales by QPR are increasingly made through software rentals rather
than perpetual license sales, which in 2012 was reflected as small decline in
software license net sales and significant increase in net sales from software
rentals. In Finland, clear majority of new sales are made on a rental basis.
Internationally, the transition is still ongoing.
Net sales in the fourth quarter were EUR 2,693 thousand (2,215) and grew 21.6%
compared to the fourth quarter of 2011. The growth came fully from organic
business growth. Net sales growth was accelerated especially by software
rentals offered by QPR (+99%) and professional services (+52%).
Net sales in the full year 2012 were EUR 9,321 thousand (7,539), and grew
23.6%. Organic business growth was 15%, and in addition the growth was
accelerated by the acquisition of Nobultec Ltd in late 2011. Finland Operations
represented 60% and International Operations 40% of net sales.
Net sales by business segments
EUR in thousands Oct-Dec, Oct-Dec, Change, Jan-Dec, Jan-Dec, Change,
2012 2011 % 2012 2011 %
--------------------------------------------------------------------------------
International 1,053 1,075 -2 3,830 3,836 0
Operations
Finland 1,640 1,140 44 5,491 3,703 48
Operations
--------------------------------------------------------------------------------
Total 2,693 2,215 22 9,321 7,539 24
--------------------------------------------------------------------------------
Net sales in Finland rose 44% in the fourth quarter, compared to the previous
year. Growth was entirely due to organic business growth. 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 quarter.
In the full year 2012, net sales in Finland rose 48% compared to 2011. Strong
growth was due to organic business growth in QPR's software and professional
services net sales and the consolidation of Nobultec Ltd as of August 2011.
Organic growth was 41%. Fastest sales growth was achieved in software aimed at
process and enterprise architecture development and in related professional
services.
International net sales decreased in the fourth quarter by 2% from the previous
year, mainly due to decrease in software license net sales, which was not fully
offset by the increase in software rentals.
International net sales for the full year 2012 remained on the same level as in
2011. Net sales grew significantly in many markets, such as Germany and Far
Eastern countries, but developed unfavorably in Southern Europe and Russia.
Net sales by product groups
EUR in thousands Oct-Dec, Oct-Dec, Change, Jan-Dec, Jan-Dec, Change,
2012 2011 % 2012 2011 %
--------------------------------------------------------------------------------
Software license 556 565 -2 1,797 1,822 -1
sales
Software 776 812 -4 3,223 3,181 1
maintenance
services
Software rentals 355 178 99 1,221 606 101
Professional 1,006 660 52 3,080 1,930 60
services
--------------------------------------------------------------------------------
Total 2,693 2,215 22 9,321 7,539 24
--------------------------------------------------------------------------------
New software sales by QPR are increasingly made through software rentals rather
than perpetual license sales, which in 2012 was reflected as small decline in
software license net sales and significant increase in net sales from software
rentals. In Finland, clear majority of new sales are made on a rental basis.
Internationally, the transition is still ongoing.
In the fourth quarter, net sales from software licenses and maintenance
services showed a small decline, but on the other hand software rentals and
professional services grew strongly. Furthermore, software license sales were
negatively affected by the weak new sales development in Southern Europe.
Total recurring revenue (including net sales from software maintenance services
and software rentals) grew 14% in the fourth quarter. Professional services
net sales increased by 52%, and the growth was especially strong in enterprise
architecture service sales.
In the full year 2012, software license net sales decreased slightly, while the
other product groups showed increase in net sales. The growth was fastest
(+101%) in software rental net sales. Total recurring revenue (software
maintenance services and rentals) grew 17%. Professional service net sales also
showed strong growth (+60%), with the consolidation of Nobultec accelerating
the growth.
In 2012, QPR delivered software and professional services in Finland, among
others, to Aalto University, Cargotec Corporation, 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, 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, and Vaisala Corporation.
In the international markets, QPR delivered software, among others, to Alfa
Bank and Russian Ventures Company in Russia, Diehl AKO and Robert Bosch GmbH in
Germany, Purac Petrochem in Belgium, 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 in thousands Oct-Dec, Oct-Dec, Change, Jan-Dec, Jan-Dec, Change,
2012 2011 % 2012 2011 %
--------------------------------------------------------------------------------
International 77 163 -53 402 472 -15
Operations
Finland 292 201 45 848 646 31
Operations
Not allocated -88 -97 9 -376 -363 -4
--------------------------------------------------------------------------------
Total 281 267 5 874 755 16
--------------------------------------------------------------------------------
Fourth quarter
While net sales grew 22% in the fourth quarter, operating profit grew by 5%.
QPR has, in line with its strategy, continued investing significantly into its
new software products and growth businesses.The Company has recruited new
personnel especially into its Finnish service business, product development and
QPR ProcessAnalyzer business development.
Operating profit in Finland increased significantly despite outlays in the
growth businesses, due to strong growth in net sales. Operating profit in the
international business decreased in the fourth quarter, including credit losses
of EUR 117 thousand (104).
Depreciation and amortization grew 13%, mainly due to increase in the
amortization of capitalized product development expenses. Total expenses grew
27%, due to outlays in growth businesses. Personnel expenses grew 19% and were
65% of total expenses.
Full year
Operating profit increased 16% to EUR 874 thousand (755). Operating profit in
Finland Operations was higher than in the previous year. Personnel recruitments
made during the year have increased the level of expenses in Finland as
planned. Operating profit in QPR's international business was lower due to
higher credit losses (EUR 319 thousand compared to EUR 191 thousand in 2011).
Depreciation and amortization grew 19%, due to the consolidation of Nobultec
Ltd and increase in the amortization of capitalized product development
expenses. Total expenses increased 25%, mainly due to the consolidation of
Nobultec and outlays in growth businesses. Personnel expenses grew 20% and were
64% of total expenses.
Net financial expenses in 2012 were EUR 41 thousand (50). Profit before taxes
increased 18% to EUR 833 thousand (705).
Income taxes decreased to EUR 171 thousand (184) and the effective tax rate to
21% (26), due to utilization of tax losses from previous years for which no
deferred tax benefit was recorded earlier. Profit for the period increased 27%
to EUR 662 thousand (521) and earnings per share increased 26% to EUR 0.054
(0.043).
FINANCE AND INVESTMENTS
Cash flow from operating activities developed very favorably in 2012 and
increased 41% to EUR 1,777 thousand (1,261), mainly due to accelerated turnover
of receivables. In the fourth quarter, cash flow from operating activities was
EUR 85 thousand negative (positive 215), due to postponement of certain
customer invoicing from the fourth quarter of 2012 to the first quarter of
2013.
Cash and cash equivalents at the end of the reporting period were EUR 1,404
thousand (1,020).
Investments in 2012 totaled EUR 693 thousand (1,256). The majority of the
investments were made in product development.
Interest-bearing liabilities decreased and were EUR 339 thousand (566) at the
end of the reporting period. The gearing ratio was -36% (-15). Current
liabilities include deferred revenue in total of EUR 1,044 thousand (1,046).
Return on investment rose to 25% (21).
Equity ratio rose from the previous year and was 51% (44). At the end of 2012,
the consolidated shareholders' equity stood at EUR 2,981 thousand (2,973).
Return on equity rose to 22% (18).
The Annual General Meeting on March 22, 2012 authorized the Board of Directors
to decide on issuing a maximum of 4,000,000 million new share 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. On March 22, 2012, 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.
PRODUCT AND SERVICE DEVELOPMENT
Product development expenses in 2012 were EUR 1,619 thousand (1,313),
representing 17% (17) of net sales. Product development expenses do not include
amortization of capitalized product development expenses.
In 2012, product development expenses were capitalized for a total amount of
EUR 380 thousand (356). The amortization period for capitalized product
development expenses is four years. The amortization of capitalized product
development expenses in the reporting period was EUR 278 thousand (203).
Product development employed 28 persons at the end of 2012, which corresponds
to 35% of the total personnel.
In the reporting period, product development activities focused on the
development of a new version of the QPR product family, released in October
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 2012. The
inventions relate to automated business process discovery based on processing
event data.
The Company increased significantly its efforts 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 2012, QPR employed a total of 81 persons (73). Average number of
personnel in the reporting period was 78 (72). Personnel expenses totaled EUR
5,491 thousand (4,594).
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 annual
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 resolved on a new share-based incentive plan for management 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 share-based incentive plan was published in a stock
exchange release on March 25, 2011.
SHARES AND TRADING IN THE COMPANY'S SHARES
Trading of shares Jan-Dec, 2012 Jan-Dec, 2011
-------------------------------------------------------------------------------
Shares traded, pcs 501,186 1,122,981
Volume, EUR 437,890 953,083
% of shares 4.0 9.0
-------------------------------------------------------------------------------
Shares and market capitalization Dec 31, 2012 Dec 31, 2011
-------------------------------------------------------------------------------
Total number of shares, pcs 12,444,863 12,444,863
Treasury shares, pcs 285,887 179,405
Book counter value, EUR 0.11 0.11
Outstanding shares, pcs 12,158,976 12,265,458
Number of shareholders 597 588
Closing price, EUR 0.95 0.88
Market capitalization, EUR 11,551,027 10,793,603
Acquired treasury shares in reporting period, pcs 106,482 132,591
Disposed treasury shares in reporting period, pcs 0 -249,021
Book counter value of treasury shares, EUR 31,221 19,735
Total purchase value of treasury shares, EUR 260,906 18,223
Treasury shares, % of all shares 2.3 1.4
-------------------------------------------------------------------------------
The Annual General Meeting held on March 22, 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),
is 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 3
April, 2012.
OTHER EVENTS IN THE REPORTING PERIOD
During the first half of 2012, QPR integrated the business of Nobultec Ltd into
its Finnish business operations. In connection with the integration, the
Group's service offering, consulting and sales resources were strengthened and
a process driven operating model, suitable for the requirements of growing
business, was adopted.
In June, Jaakko Riihinen was appointed Senior Vice President, Products &
Technology, and member of the executive management team. Mr Riihinen began his
work on August 13, 2012. He moved to QPR from Nokia Siemens Networks, where he
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.
In August, Jaakko Salminen started as acting VP and member of the executive
management team, responsible for international resellers and Russian business.
Jaakko Salminen has previously worked as CEO of Finnish Software Entrepreneurs,
Managing Director of Ravensoft and in several other management positions in
technology companies.
In September, QPR established a Global OEM Business team to speed up the
international growth for QPR ProcessAnalyzer and to search for OEM partners who
will include QPR's products as part of their software or services.
In October, Pauli Leppänen was appointed as Chief Financial Officer at QPR
Software Plc as of January 7, 2013. He moves to QPR from Sagacitas Finance
Partners Oy, where he has worked as a Partner. In addition, he has worked as
SVP, Head of Corporate Control and acting CFO at TeliaSonera AB (2003-2010),
and in financial management leadership positions in Sonera Corporation
(1998-2002) and Outokumpu Oyj (1990-1997). The previous CFO, Mrs. Päivi Martti,
continued in her position until January 7, 2013. After this, from her own
initiative, she started as Director, HR & Administration at QPR.
In October, QPR Software and ProcessGold, a German pioneer in process mining,
announced that the two companies have signed a strategic partnership agreement.
The goal of the co-operation is to pave way for Automated Business Process
Discovery (ABPD) by using QPR ProcessAnalyzer software product. The partnership
involves resale rights of QPR ProcessAnalyzer for ProcessGold, sharing of best
practices and other co-operation initiatives. Combined, both companies have
over 200 commercial process analysis projects under their belt making them the
ultimate ABPD pioneers.
In November, QPR released the fourth generation of the QPR ProcessAnalyzer
software product. QPR ProcessAnalyzer 4.0 provides a Web user interface with
collaborative functionalities targeted to business users and process owners,
and a Microsoft Excel client with robust capabilities for the more demanding
needs of process analysts.
In November, QPR ProcessAnalyzer won the Quality Innovation Award 2012 in the
SME category. The competition organized by the Finnish Quality Association
assesses nominees based on innovativeness and quality. QPR ProcessAnalyzer is
an Automated Business Process Discovery (ABPD) software product that enables
organizations to use the data in their business support systems for process
development and improvement. QPR ProcessAnalyzer follows the track of the 2011
winner Angry Birds, developed by Rovio Entertainment Ltd.
In November, QPR paid the remaining purchase price of EUR 100 thousand for the
business operations of Trodos Consulting and United Project and Services Group
in Russia. At the same time, QPR purchased the remaining 20% of shares in its
subsidiary QPR CIS Oy, operating in Russia and CIS countries, for EUR 80
thousand and recorded the amount as an adjustment in equity in accordance with
step acquisitions under IFRS 3.
In December, a merger of a 100% subsidiary StrongDocs Oy into the parent
company QPR Software Plc was completed. The merger did not have any impact on
consolidated results or balance sheet.
SUBSEQUENT EVENTS
Starting January 9, 2013, when acting VP (Resellers & Russia) Jaakko Salminen's
contract ended, CEO Jari Jaakkola leads the Resellers & Russia unit until VP
Maija Erkheikki returns from her maternity leave in August 2013.
GOVERNANCE
The Annual General Meeting on March 22, 2012 resolved that the Board of
Directors consists of four (4) ordinary members. The AGM 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.
The AGM elected KPMG Oy Ab, Authorized Public Accountants, to continue 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 on the stock
exchange release published by the Company on March 22, 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, 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. The Company monitors country,
customer, personnel and finance risks also in the Russian subsidiary OOO QPR
Software.
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 management's
estimate, to some extent increased the credit risk that has remained on a
moderate level in recent years. In 2012, EUR 319 thousand (191) of credit
losses were recorded. The amount of trade receivables over 60 days past due is
currently on a low level and was 2.6% of total trade receivables at the end of
2012 (11.6).
75% of Group's trade receivables are in euro. At the end of 2012, 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/investors/key-figures-and-reports.htm).
OUTLOOK 2013
Recent forecasts published by market research firms estimate that in 2013, the
value of global software sales will grow approximately 6% and global
professional services sales will grow approximately 5%.
QPR estimates its net sales to continue strong organic growth in 2013, arising
especially from software rental and enterprise architecture services. The
Company estimates its operating profit in euros to be approximately on the same
level as in 2012, due to continuing outlays in QPR's growth businesses.
In 2013, the Company aims to continue significant investments in the
development of its new software products. QPR has launched two new software
products that have excellent growth prospects. QPR EnterpriseArchitect has
already established a leading market position in Finland, and in 2013 the
Company focuses on its international growth. The Company also invests in
recruiting OEM partners for its innovative new QPR ProcessAnalyzer software
product. By developing its professional service offering, 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.
THE BOARD OF DIRECTORS' PROPOSAL ON DIVIDEND
The Board of Directors proposes to the Annual General Meeting on March 14, 2013
that a dividend of EUR 0.04 per share be paid to shareholders for the financial
year 2012, totaling EUR 486 thousand. The dividend shall be paid to a
shareholder that has been entered into the Company's shareholder register on
the record date of the dividend payment on March 19, 2013. The Board of
Directors proposes to the AGM that the dividend be paid on April 3, 2013.
The dividend proposed by the Board for the financial year 2012 represents 27%
of the Company's consolidated cash flow from operations in 2012.
The distributable funds of the parent company were EUR 1,410 thousand at
December 31, 2012. No material changes have taken place in the Company's
financial position after the end of the financial year.
FINANCIAL INFORMATION
In 2013, QPR Software will publish its Annual Report and three interim reports
in English and Finnish on the following dates:
-- Annual Report 2012: Thursday, February 21, 2013
-- Interim Report Q1/2013: Thursday, April 18, 2013
-- Interim Report Q2/2013: Friday, July 19, 2013
-- Interim Report Q3/2013: Tuesday, October 22, 2013
The Annual General Meeting will take place on Thursday, March 14, 2013.
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 into or
distributed in the United States of America or its territories or possessions.
CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
EUR in thousands, unless Oct-Dec, Oct-Dec, Change Jan-Dec Jan-Dec, Change
otherwise indicated 2012 2011 , % , 2012 2011 , %
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net sales 2,693 2,215 22 9,321 7,539 24
Other operating income 104 29 259 158 79 100
Materials and services 100 66 52 402 250 61
Employee benefit expenses 1,626 1,361 19 5,491 4,594 20
Other operating expenses 620 400 55 2,031 1,448 40
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EBITDA 451 417 8 1,555 1,326 17
Depreciation and 171 151 13 681 572 19
amortization
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit 281 267 5 874 755 16
Financial income and -9 -24 -63 -41 -50 -18
expenses
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit before tax 271 243 12 833 705 18
Income taxes -34 -82 -59 -171 -184 -7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit for the period 237 161 47 662 521 27
Profit for the period
attributable to:
Shareholders of the 237 162 662 530
parent company
Non-controlling interests 0 -1 0 -9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 237 161 662 521
Earnings per share, EUR 0.019 0.013 46 0.054 0.043 26
Consolidated statement of
comprehensive income:
Profit for the period 237 161 662 521
Exchange rate differences -19 45 -103 4
from translating
foreign operations
Income tax relating to - - - -
components of other
comprehensive income
--------------------------------------------------------------------------------
Total comprehensive 218 206 559 525
income
Total comprehensive
income attributable to:
Shareholders of the 218 207 559 534
parent company
Non-controlling interests 0 -1 0 -9
--------------------------------------------------------------------------------
Total 218 206 559 525
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
EUR in thousands Dec 31, Dec 31, Change,
2012 2011 %
--------------------------------------------------------------------------------
Assets
Non-current assets
Intangible assets 1,557 1,760 -12
Goodwill 513 513 0
Tangible assets 140 118 19
Other non-current assets 120 102 18
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total non-current assets 2,330 2,493 -7
Current assets
Trade and other receivables 3,111 4,248 -27
Cash and cash equivalents 1,404 1,020 38
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total current assets 4,515 5,268 -14
Total assets 6,845 7,761 -12
================================================================================
Equity and liabilities
Equity
Share capital 1,359 1,359 0
Other funds 21 21 0
Treasury shares -261 -158 65
Translation differences -169 -66 156
Invested non-restricted equity fund 5 5 0
Retained earnings 2,026 1,820 11
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity attributable to shareholders of the 2,981 2,981 0
parent company
Non-controlling interests 0 -8 -100
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total equity 2,981 2,973 0
Non-current liabilities
Interest-bearing liabilities 113 340 -67
Non-interest-bearing liabilities 71 146 -51
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total non-current liabilities 184 486 -62
Current liabilities
Trade and other payables 3,453 4,076 -15
Interest-bearing liabilities 226 226 0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total current liabilities 3,679 4,302 -14
Total liabilities 3,863 4,788 -19
Total equity and liabilities 6,845 7,761 -12
================================================================================
CONSOLIDATED CASH FLOW STATEMENT
EUR in thousands Oct-De Oct-Dec Change, Jan-Dec Jan-Dec Change, %
c, , 2011 % , 2012 , 2011
2012
--------------------------------------------------------------------------------
Cash flow from operating
activities
Profit for the period 237 161 47 662 521 27
Adjustments for the 125 230 -46 548 718 -24
profit
Working capital changes -393 -168 134 744 28 2,557
Interest and other -8 -7 14 -39 -23 70
financial expenses paid
Interest and other 15 9 67 21 27 -22
financial income
received
Income taxes paid -61 -10 510 -159 -10 1490
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash from operating -85 215 -140 1,777 1,261 41
activities
Cash flow from investing
activities
Acquired subsidiaries -81 0 -81 -565 -86
Purchases of tangible and -214 -86 149 -612 -691 -11
intangible assets
--------------------------------------------------------------------------------
Net cash used in -295 -86 243 -693 -1,256 -45
investing activities
Cash flow from financing
activities
Repayments of long-term 0 0 -226 -226 0
borrowings
Repurchase of shares -10 -25 -60 -103 -100 3
Dividends paid 0 0 -367 -362 1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net cash used in -10 -25 -60 -696 -688 1
financing activities
Net change in cash and -390 104 -475 388 -683 -157
cash equivalents
Cash and cash equivalents 1,797 913 97 1,020 1,702 -40
at the beginning of the
period
Effects of exchange rate -3 3 -4 1
changes on cash and cash
equivalents
--------------------------------------------------------------------------------
Cash and cash equivalents 1,404 1,020 38 1,404 1,020 38
at the end of the
period
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
EUR in Share Other Translation Treasur Investe Retaine Non-con Total
thous capita funds differences y d d trollin
ands l shares non-res earning g
tricted s interes
equity ts
fund
--------------------------------------------------------------------------------
Equity 1,359 21 -70 -275 5 1,653 1 2,694
Jan
1,
2011
Divide -362 -362
nds
paid
Repurc -100 -100
hase
of
share
s
Disposal of 217 217
treasury
shares
Compre 4 529 -9 524
hensiv
e
incom
e
--------------------------------------------------------------------------------
Equity 1,359 21 -66 -158 5 1,820 -8 2,973
Dec
31,
2011
--------------------------------------------------------------------------------
Divide -367 -367
nds
paid
Acquis -89 8 -81
ition
of
the
remai
ning
20%
share
in
QPR
CIS
Oy
Repurc -103 -103
hase
of
share
s
Compre -103 662 559
hensiv
e
incom
e
--------------------------------------------------------------------------------
Equity 1,359 21 -169 -261 5 2,026 0 2,981
Dec
31,
2012
--------------------------------------------------------------------------------
NOTES TO INTERIM FINANCIAL STATEMENTS
ACCOUNTING PRICIPLES
This report complies with requirements of IAS 34 ”Interim Financial Reporting”.
Starting from the beginning of 2012, 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 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.
GROUP INTANGIBLE AND TANGIBLE ASSETS
EUR in thousands 2012 2011 Change, %
--------------------------------------------------------
Intangible assets:
Acquisition cost Jan 1 4,839 3,608 34
Increase 423 1,231 -66
Tangible assets:
Acquisition cost Jan 1 1,158 1,021 13
Increase 91 56 63
--------------------------------------------------------
CHANGE IN GROUP INTEREST-BEARING LOANS
EUR in thousands 2012 2011 Change, %
--------------------------------------------------------
Interest-bearing loans Jan 1 566 792 -29
Repayments -226 -226 0
--------------------------------------------------------
Interest-bearing loans Dec 31 339 566 -40
--------------------------------------------------------
GROUP COMMITMENTS AND CONTINGENT LIABILITIES
EUR in thousands Dec 31, 2012 Dec 31, 2011 Change, %
--------------------------------------------------------------------------------
Business mortgage 1,337 1,337 0
Current lease liabilities
Liabilities maturing during one year 397 231 72
Liabilities maturing 2-5 years 91 77 18
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Lease liabilities total 488 308 58
Total commitments and contingent 1,825 1,645 11
liabilities
--------------------------------------------------------------------------------
CONSOLIDATED INCOME STATEMENT BY QUARTER
EUR in thousands Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
2012 2012 2012 2012 2011 2011 2011 2011
--------------------------------------------------------------------------------
Net sales 2,693 2,011 2,404 2,212 2,215 1,772 1,784 1,768
Other operating 104 18 21 15 29 12 17 21
income
Materials and 100 100 115 87 66 78 72 34
services
Employee benefit 1,626 1,211 1,360 1,294 1,361 1,058 1,053 1,122
expenses
Other operating 620 379 552 480 400 339 363 346
expenses
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EBITDA 451 339 398 366 417 309 313 287
Depreciation and 171 174 168 167 151 157 134 130
amortization
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating profit 281 165 230 199 267 152 179 157
Financial income -9 4 -34 -2 -24 -2 -8 -16
and expenses
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit before 271 169 196 197 243 150 171 141
tax
Income taxes -34 -17 -72 -48 -82 -36 -24 -41
--------------------------------------------------------------------------------
Profit for the 237 152 124 149 161 113 147 100
period
--------------------------------------------------------------------------------
SEGMENT INFORMATION
EUR in thousands Oct-Dec, Oct-Dec, Change, Jan-Dec, Jan-Dec, Change,
2012 2011 % 2012 2011 %
--------------------------------------------------------------------------------
Net sales
International 1,053 1,075 -2 3,830 3,836 0
Operations
Finland 1,640 1,140 44 5,491 3,703 48
Operations
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total 2,693 2,215 22 9,321 7,539 24
EBITDA
International 146 250 -42 680 764 -11
Operations
Finland 393 265 48 1,251 925 35
Operations
Not allocated -88 -97 -9 -376 -363 4
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total 451 417 8 1,555 1,326 17
Operating profit
International 77 163 -53 402 472 -15
Operations
Finland 292 201 45 848 646 31
Operations
Not allocated -88 -97 -9 -376 -363 4
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total 281 267 5 874 755 16
Financial income -9 -24 -63 -41 -50 -18
and expenses
Income taxes -34 -82 -59 -171 -184 -7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit for the 237 161 47 662 521 27
period
Other information:
Depreciation and
amortization
International 70 87 -20 278 292 -5
Operations
Finland 101 64 58 403 280 44
Operations
------------------------------------------------------------------------------
Total 171 151 13 681 572 19
--------------------------------------------------------------------------------
GROUP KEY FIGURES
EUR in thousands, unless otherwise Jan-Dec or Dec 31, Jan-Dec or Dec 31,
indicated 2012 2011
--------------------------------------------------------------------------------
Net sales 9,321 7,539
Net sales growth, % 23.6 8.7
Operating profit 874 755
% of net sales 9.4 10.0
Profit before tax 833 705
% of net sales 8.9 9.4
Profit for the period 662 521
% of net sales 7.1 6.9
Return on equity, % 22.2 18.4
Return on investment ,% 25.5 21.5
Interest-bearing liabilities 339 566
Cash and cash equivalents 1,404 1,020
Free cash flow 1,165 570
Net liabilities -1,065 -454
Equity 2,981 2,973
Gearing, % -35.7 -15.3
Equity ratio, % 51.3 44.2
Total balance sheet 6,845 7,761
Investments in non-current assets 499 1,478
% of net sales 5.4 19.6
Product development expenses 1,619 1,313
% of net sales 17.4 17.4
Average number of personnel 78 72
Personnel at the beginning of period 73 65
Personnel at the end of period 81 73
Earnings per share, EUR 0.054 0.043
Equity per share, EUR 0.240 0.239
--------------------------------------------------------------------------------
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