Innofactor Plc financial statement 2012 (IFRS)
26.02.2013 00:00
Innofactor Plc Stock Exchange Release February 26, 2013, at 8:30 Finnish time
Summary
Innofactor group's key figures for October 1–December 31, 2012:
- Net sales EUR 6,297 thousand (2011: 5,136), increase of 22.6%
- Operating profit before depreciation and amortization (EBITDA), EUR 1,035 thousand (2011: 606), increase of 70.8%
- EBITDA percentage 16.4% (2011: 11.8%)
- Operating profit (EBIT) EUR 869 thousand (2011: 463), increase of 87.7%
- EBIT percentage 13.8% (2011: 9.0%)
Innofactor group's key figures for January 1–December 31, 2012:
- Net sales EUR 18,818* thousand (2011: 17,205), increase of 9.4%*
- Operating profit before depreciation and amortization (EBITDA), EUR 1,215** thousand (2011: 1,443), decrease of 15.8%**
- EBITDA percentage 6.5%** (2011: 8.4%)
- Operating profit (EBIT) EUR 620** thousand (2011: 904), decrease of 31.4%**
- EBIT percentage 3.3%** (2011: 5.3%)
Innofactor's net sales in 2013 are expected to be about EUR 24 million (2012: EUR 18,818 thousand). Operating profit before depreciation and amortization (EBITDA) in 2013 is expected to be about EUR 2 million (2012: EUR 1,215 thousand).
The financial statement figures in this financial statement have been audited. The acquired Danish company Bridgeconsulting A/S (current Innofactor A/S) has been included in the figures as of July 1, 2012. Further details about the acquisition can be found in this interim report's section "Acquisitions and changes in the group structure."
* Due to the organizational change on January 2, 2012, projects were rearranged, which had a one-off effect of lowering the net sales in January by about EUR 300 thousand.
** Due to the organizational change on January 2, 2012, projects were rearranged, which had a one-off effect of lowering the net sales in January by about EUR 300 thousand. Additionally, the personnel and office space arrangements related to the organizational change led to a one-off cost of about EUR 100 thousand. In total, these reduced the net sales by about EUR 400 thousand. Additionally, the acquisition made on July 5, 2012, resulted in a one-off cost of about EUR 150 thousand in the review period July 1–September 30, 2012.
Key figures of the group, IFRS
mo. 10–12 /2012 | mo. 10–12 /2011 | Change | mo. 1–12 /2012 | mo. 1–12 /2011 | Change | ||
Net sales, EUR thousand* | 6,297 | 5,136 | +22.6% | 18,818 | 17,205 | +9.4% | |
Operating profit before depreciation and amortization (EBITDA), EUR thousand** | 1,035 | 606 | +70.8% | 1,215 | 1,443 | -15.8% | |
percentage of net sales** | 16.4% | 11.8% | 6.5% | 8.4% | |||
Operating profit/loss (EBIT), EUR thousand** | 869 | 463 | +87.7% | 620 | 904 | -31.4% | |
percentage of net sales** | 13.8% | 9.0% | 3.3% | 5.3% | |||
Earnings before taxes, EUR thousand** | 860 | 457 | 88.2% | 591 | 886 | -33.3% | |
percentage of net sales** | 13.7% | 8.9% | 3.1% | 5.1% | |||
Earnings, EUR thousand** | 816 | 361 | +126.0% | 449 | 687 | -34.6% | |
percentage of net sales** | 13.0% | 7.0% | 2.4% | 4.0% | |||
Shareholders' equity, EUR thousand | 13,760 | 12,905 | +6.6% | 13,760 | 12,905 | +6.6% | |
Return on equity*** | 6.1% | 2.8% | 3.4% | 5.5% | |||
Return on investment*** | 5.9% | 3.7% | 4.5% | 7.2% | |||
Net gearing | 5.4% | -5.4% | 5.4% | -5.4% | |||
Equity ratio | 66.1% | 74.5% | 66.1% | 74.5% | |||
Balance sheet total, EUR thousand | 22,173 | 18,324 | +21.0% | 22,173 | 18,324 | +21.0% | |
Research and development, EUR thousand | 548 | 369 | +48.5% | 2,488 | 2,086 | +19.3% | |
percentage of net sales | 8.7% | 7.2% | 13.2% | 12.1% | |||
Personnel on average during the review period | 197 | 184 | +7.1% | 189 | 177 | +6.8% | |
Personnel at the end of the review period | 193 | 189 | +2.1% | 193 | 189 | +2.1% | |
Number of shares at the end of the review period**** | 30,165,900 | 29,261,800 | +3.1% | 30,165,900 | 29,261,800 | +3.1% | |
Earnings per share (EUR)**** | 0.0272 | 0.0123 | +121.1% | 0.0150 | 0.0235 | -36.2% | |
Shareholders' equity per share (EUR)**** | 0.460 | 0.441 | +4.3% | 0.460 | 0.441 | +4.3% | |
* Due to the organizational change on January 2, 2012, projects were rearranged, which had a one-off effect of lowering the net sales in January by about EUR 300 thousand.
** Due to the organizational change on January 2, 2012, projects were rearranged, which had a one-off effect of lowering the net sales in January by about EUR 300 thousand. Additionally, the personnel and office space arrangements related to the organizational change led to a one-off cost of about EUR 100 thousand. In total, these reduced the net sales by about EUR 400 thousand. Additionally, the acquisition made on July 5, 2012, resulted in a one-off cost of about EUR 150 thousand in the review period July 1–September 30, 2012.
*** The percentages for the return on equity and return on investment have been adjusted to correspond with the figures for a 12-month period.
**** 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 operates on a single segment, offering software, systems and related services.
CEO Sami Ensio's review
Innofactor's net sales on October 1–December 31, 2012, were EUR 6,297 thousand, which shows an increase of 22.6 percent compared to the same period in the previous year. Operating profit before depreciation and amortization (EBITDA) during October 1–December 31, 2012, was EUR 1,035 thousand (16.4%) and earnings before interest and taxes (EBIT) were EUR 869 thousand (13.8%).
For the entire year 2012, the net sales were EUR 18,818 thousand, which shows an increase of 9.4 percent compared to the same period in the previous year. Operating profit before depreciation and amortization (EBITDA) in 2012 was EUR 1,215 thousand (6.5%) and earnings before interest and taxes (EBIT) were EUR 620 thousand (3.3%).
Integrating the Danish business intelligence company Bridgeconsulting A/S (current Innofactor A/S), which was acquired in summer 2012, as part of Innofactor has gone as planned and on the last quarter, the company managed to exceed the goals set for it. Also the personnel satisfaction in the company has remained on a very high level. Microsoft Denmark selected Innofactor A/S as the Business Intelligence partner of the year in Denmark. Innofactor A/S provides a good basis for expanding business in Denmark.
Innofactor's business in 2013 has started as expected and Innofactor sees the growth in Microsoft-based software market and its own outlook as positive in 2013.
Innofactor continues to actively seek potential strategic partnerships in Finland, Denmark and other Nordic Countries. The group will seek growth, which can be organic or based on mergers or acquisitions.
Market outlook and business environment
Due to the long-standing uncertainties in economic situation, it is challenging to make a reliable estimate on the development of the IT market in the near future. According to research companies monitoring the IT market, the IT service markets grew globally about 1-2 percent in 2012 and they are expected to grow about 3-5 percent in 2013. The growth of software market in 2012–2013 is estimated to be about one percentage point faster, that is, 4–6 percent in 2013.
The IT market is experiencing a clear turning point. One of the major trends is the consumerization of information technology: an increasingly larger share of the IT purchases made by companies is based on the requirements of individuals, that is, the consumer market. Company and corporate clients tend to purchase software that can be used on phones, tablets and computers. Another trend is the ability of public clouds to offer software in a scalable and global form to a wide range of end users and for all devices, including mobile phones.
Innofactor has made a strategic choice by focusing on solutions that use Microsoft technology. Innofactor believes that Microsoft is a strong player in the IT market change: it holds the leading position in the business software market and invests heavily in mobile devices.
Innofactor has selected as its application areas those areas where Microsoft's growth and, correspondingly, its partners' growth has exceeded manifold the growth of general global IT service and software markets. For example, in 2012, Microsoft repeatedly reported annual growth figures of over 30 percent in the sales of Dynamics CRM solutions and Microsoft SQL Server Premium servers (used in Microsoft-based BI solutions) and annual growth figures of over 10 percent in the sales of SharePoint, Lync and Exchange solutions. The above-mentioned Microsoft solution areas, which are growing significantly faster than other IT markets, form a significant part of Innofactor's business operations.
Additionally, the publishing of the Windows 8 operating system in October 2012, is significant for the Microsoft ecosystem and it is believed to strengthen Microsoft's competitiveness within Innofactor's clientele.
The company feels that for companies like Innofactor, which is strongly committed to Microsoft, this development creates growing global markets in the long term both as a traditional system integrator locally in the Nordic Countries and as a provider of cloud and mobile solutions globally.
As the companies committing strongly to Microsoft are typically small, Innofactor believes that they are likely to be consolidating into larger units, and this will offer Innofactor expansion opportunities.
Future outlook
Innofactor's net sales in 2013 are expected to be about EUR 24 million (2012: EUR 18,818 thousand). Operating profit before depreciation and amortization (EBITDA) in 2013 is expected to be about EUR 2 million (2012: EUR 1,215 thousand).
Board of Directors' proposal on the dividend
Innofactor is a growing company and intends to use its operating profit on actions promoting growth, for example, on realizing mergers. Innofactor has defined a dividend distribution policy according to which the aim of the Board of Directors is to provide an opportunity for the shareholders to distribute, from the part of the operating profit before depreciation and amortization (EBITDA) that exceeds 10 percent, the maximum dividend allowed by the state of the business. For 2012, the EBITDA was under 10 percent. In making the proposal on the dividend, the Board of Directors takes into account the company's financial situation, profitability and near-term outlook.
At the end of the financial period of 2012, the distributable assets of the group's parent company were EUR 28,312,743.79.
The Board of Directors proposes that Innofactor Plc should not pay any dividend for the financial period of 2012.
Espoo, February 26, 2013
INNOFACTOR PLC
Board of Directors
Additional information:
CEO Sami Ensio, Innofactor Plc
Tel. +358 50 584 2029
sami.ensio@innofactor.com
Briefings concerning the financial statement of 2012
On February 2013, at 9:00 Finnish time, Innofactor will hold a briefing concerning the financial statement in Finnish for the media, investors and analysts at the company's premises at Keilaranta 19, Espoo. The result will be presented by CEO Sami Ensio and CFO Mikko Karvinen. The presentations of the briefing will be available on Innofactor's web site after the briefing.
We ask you to register for the briefing beforehand either by sending email to ir@innofactor.com or by phoning to +358 50 554 3832.
Innofactor will also hold a conference call in English for analysts, media and investors on February 26, 2013, at 17:00 Finnish time. Registrations to ir@innofactor.com at least one hour before the event.
Financial releases in 2013
The schedule for financial releases in 2013 is as follows:
March 5, 2013: The annual report, including the financial statement and annual report, will be published on the company's web site at www.innofactor.com/investors
March 26, 2013, at 10:00 Finnish time: Annual General Meeting
April 16–April 29, 2013: Silent period
April 30, 2013, at 8:30 Finnish time: Interim report for January–March
July 16–July 29, 2013: Silent period
July 30, 2013, at 8:30 Finnish time: Interim report for January–June
October 15–October 28, 2013: Silent period
October 29, 2013, at 8:30 Finnish time: Interim report for January–September
Distribution:
NASDAQ OMX Helsinki
Main media
www.innofactor.com