Innofactor Plc's interim report for January 1 - September 30, 2011 (IFRS)
01.11.2011 00:00
Innofactor Plc Stock Exchange Release November 1, 2011, at 8:30 Finnish time
Summary
Innofactor group's key figures for July 1–September 30, 2011:
• Net sales EUR 3,766 thousand (2010: 2,192), increase of 71.8%
• Operating profit before depreciation and amortization (EBITDA) EUR 412 thousand (2010: 93), increase of 343.0%
• EBITDA percentage 10.9% (2010: 4.2%)
• Operating profit (EBIT) EUR 280 thousand (2010: 23)
• EBIT percentage 7.4% (2010: 1.0%)
Innofactor group's key figures for January 1–September 30, 2011:
• Net sales EUR 12,069 thousand (2010: 6,550), increase of 84.3%
• Operating profit before depreciation and amortization (EBITDA) EUR 837* thousand (2010: 519), increase of 61.3%
• EBITDA percentage 6.9%* (2010: 7.9%)
• Operating profit (EBIT) EUR 441* thousand (2010: 310)
• EBIT percentage 3.7%* (2010: 4.7%)
* The figures include one-off costs related to the relisting and the consolidation of shares to the amount of about EUR 200 thousand during January 1–March 31, 2011, and to the amount of about EUR 100 thousand during April 1–June 30, 2011.
The future outlook for Innofactor remains the same. The group's net sales in 2011 are estimated to be about EUR 17 million, which will be an increase of 70% compared to 2010. Additionally, operating profit before depreciation and amortization (EBITDA) are expected to be higher both in euros and in percentage than in 2010 (2010: EUR 979 thousand and 9.9 percent).
Key figures of the group
The figures in this interim report have not been audited.
mo. 7–9 /2011 | mo. 7–9 /2010 | Change | mo. 1–9 /2011 | mo. 1–9 /2010 | Change | mo. 1–12 /2010 | |
Net sales, EUR thousand | 3,766 | 2,192 | +71.8% | 12,069 | 6,550 | +84.3% | 9,862 |
Operating profit before depreciation and amortization (EBITDA), EUR thousand* | 412 | 93 | +343.0% | 837 | 519 | +61.3% | 979 |
percentage of net sales* | 10.9% | 4.2% | 6.9% | 7.9% | 9.9% | ||
Operating profit (EBIT), EUR thousand* | 280 | 23 | +1,091.9% | 441 | 310 | +42.3% | 702 |
percentage of net sales* | 7.4% | 1.0% | 3.7% | 4.7% | 7.1% | ||
Profit before taxes, EUR thousand* | 274 | 24 | +1,055.6% | 429 | 308 | +39.3% | 696 |
percentage of net sales* | 7.3% | 1.1% | 3.6% | 4.7% | 7.1% | ||
Profit for the period, EUR thousand* | 205 | 17 | +1,090.9% | 326 | 224 | +45.5% | 505 |
percentage of net sales* | 5.4% | 0.8% | 2.7% | 3.4% | 5.1% | ||
Equity, EUR thousand | 12,604 | 2,288 | +450.9% | 12,604 | 2,288 | +450.9% | 12,278 |
Return on equity** | 6.6% | 3.1% | 3.5% | 12.2% | 6.8% | ||
Return on investment** | 8.9% | 4.3% | 4.7% | 17.0% | 9.7% | ||
Net gearing | -0.9% | -11.2% | -0.9% | -11.2% | -14.0% | ||
Equity ratio | 76.5% | 48.5% | 76.5% | 48.5% | 68.6% | ||
Balance sheet total, EUR thousand | 17,539 | 5,052 | +247.2% | 17,539 | 5,052 | +247.2% | 19,517 |
Research and development, EUR thousand*** | 468 | 1,716 | 1,173 | ||||
percentage of net sales*** | 12.4% | 14.2% | 11.9% | ||||
Personnel on average during the review period | 178 | 104 | +71.2% | 175 | 98 | +78.6% | 108 |
Personnel at the end of the review period | 184 | 128 | +43.8% | 184 | 128 | +43.8% | 171 |
Number of shares at the end of the review period**** | 29,261,800 | 19,314,925 | +51.5% | 29,261,800 | 19,314,925 | +51.5% | 29,261,849 |
Earnings per share (EUR)**** | 0.0070 | 0.0010 | +594.5% | 0.0111 | 0.0126 | -11.2% | 0.0274 |
Shareholders' equity per share (EUR)**** | 0.431 | 0.118 | +263.6% | 0.431 | 0.118 | +263.6% | 0.420 |
* The figures include one-off costs related to the relisting and the consolidation of shares to the amount of about EUR 200 thousand during January 1–March 31, 2011, and to the amount of about EUR 100 thousand during April 1–June 30, 2011.
** The percentages for the return on equity and return on investment have been adjusted to correspond with the figures for a 12-month period.
*** There are no comparison data for the corresponding review period in 2010 as Innofactor did not draft comparable interim reports in 2010 due to the reverse acquisition in accordance with IFRS 3.
**** The number of shares before December 27, 2010, presented in the table has been calculated from the number of Innofactor Oy shares due to the reverse acquisition in accordance with IFRS 3. In accordance with the decision of the Innofactor Plc's Annual General Meeting on April 28, 2011, twenty old shares were consolidated into one new share (registered in the Trade Register on May 7, 2011), which reduced the total number of shares to 1/20 of the previous number. The key figures presented in the table have been adjusted to correspond with the current number of shares.
Reporting
Innofactor Plc operates on a single segment and mainly in Finland, offering software, systems and related services. No distribution of net sales or earnings by segment or geographical area is therefore presented.
CEO Sami Ensio's review:
During July 1–September 30, 2011, Innofactor’s net sales grew by 71.8 percent from the corresponding period last year. Organic growth during July 1–September 30, 2011, was about 32.6 percent and inorganic growth about 39.2 percent due to the acquisition of Westend ICT. Growth for the whole year is expected to be about 70%.
Research and development continued to focus on new versions of old products and on Innofactor's first cloud solutions. Research and development costs recognized in the profit and loss statement were EUR 468 thousand during July 1–September 30, 2011 (there is no comparison figure available for the same period in 2010; total research and development costs in 2010 were EUR 1,173 thousand).
Operating profit before depreciation and amortization (EBITDA) during July 1–September 30, 2011, were EUR 412 thousand (10.9%) and operating profit (EBIT) were EUR 280 thousand (7.4%).
In May 2011, the company launched a cost-effectiveness program, which places special emphasis on unifying and improving practices related to project management and resource allocation and cutting other business costs. Other operating expenses on the period of July 1–September 30, 2011, were EUR 675 thousand, which is EUR 346 thousand less than in the previous quarter of April 1–June 30, 2011. The share of other operating expenses of the net sales during July 1–September 30, 2011, decreased to about 17.9 percent, whereas in the previous year, during July 1–September 30, 2010, it was about 20.4 percent. Profitability for the rest of the year is expected to improve due to our strong order book and the planned decrease in research and development from the first half of the year.
Innofactor continues to seek potential strategic partnerships in Finland and neighboring countries. The group will seek growth, which can be organic or based on mergers or acquisitions.
Market outlook and business environment
In June 2011, Innofactor was awarded the Microsoft Country Partner of the Year, which reinforced the company's position as one of Microsoft’s key partners in Finland. This has also given the company positive publicity outside of Finland.
On July 10, 2011, at the Microsoft Worldwide Partner Conference in Los Angeles, USA, Innofactor launched its new cloud services. These services drew a fair amount of attention, and Innofactor believes there is a significant international market for them.
Regardless of the uncertain financial situation, Innofactor's short-term market outlook is fairly positive. The current market situation is uncertain and, thus, Innofactor will not comment on the long-term outlook.
Espoo, November 1, 2011
INNOFACTOR PLC
Board of Directors
Additional information:
CEO Sami Ensio, Innofactor Plc
Tel. +358 50 584 2029
sami.ensio@innofactor.com
Distribution:
NASDAQ OMX Helsinki
Main media
www.innofactor.com
Financial releases in 2012
The schedule for financial releases in 2012 will be published near the end of 2011.
Innofactor Plc's interim report for January 1–September 30, 2011 (IFRS)