SOLTEQ PLC'S INTERIM REPORT 1.1.-31.3.2011
(Thomson Reuters ONE) -
- Turnover increased by 11.1% and totalled 6.9 million euros (6.2 million euros)
- Operating profit totalled 365 thousand euros (-1.019 thousand euros)
- In 2011, the turnover is believed to be at the same level as in 2010, but the
operating profit, however, is believed to have improved to nearly 5 per cent
- Earnings per share were 0.02 euros (-0.07 euros)
KEY FIGURES
Turnover by operation:
% 1-3/11 1-3/10 1-12/10
Softwareservices 65 65 65
Licences 28 28 27
Hardware 7 7 8
Managing Director Repe Harmanen:
"We have improved our operations and performance compared to the situation last
year. A comparison of the key figures from a year ago that correspond to the
period under review shows good progress. Working solutions as well as the long-
term confidence of our customer relationships have helped in this process. These
fundamentals combined with the operational measures that were done have led to
this positive development.
The current level nevertheless still provides us with good, long-term
opportunities to improve our profitability and, in particular, our
predictability.
We have during the last months managed to get a better grasp of our business
operations and made progress with initiated development activities. I think that
our situation is reasonable, even good. It must be remembered that our goal is
to achieve a long term profitability level of 10%. This work is in the early
stages. Our direction is good, our momentum suitable, but the trip is largely
still ahead of us.
In different business areas, demand has remained good and has even increased in
the areas of operational and financial control, as well as master data
management. We received new orders during the period of review, and I see a
clear pick-up in the market as compared to the autumn. Our most active actions
still aim at further improving profitability and predictability, but we have
begun the implementation of growth-oriented measures in all of our business
areas.
The execution of the strategy that we announced in February has proceeded
according to plan. The first signs and feedback from our customers have been
very inspiring and encouraging. Development has occurred in each of our
strategic areas during the quarter, as example we might mention our new public
administration agreement with the City of Tampere. We will continue implementing
the strategy and inform you about its progress in various stages.
During the second quarter we will continue the improvement in our operational
activity and profitability, as well as predictability.
I see our future as a positive one, but at the same time I emphasize restraint
and the continuation of detailed work with our project deliveries and our big
new projects. I feel that we have good opportunities to grow our business in a
controlled manner among our clientele due to the increased number of projects.
We retain our outlook for this year's revenue and profit levels in accordance
with our previous notice."
BUSINESS ENVIRONMENT AND BUSINESS DEVELOPMENT
Solteq offers pragmatically developing operational and financial control
services to commercial, logistics, industrial and public administration actors.
We complement our core offering with solutions for specialized retail
management, maintenance and servicing management, as well as solutions for
quality improvement and the management of systems in which master data is
contained. With the help of our solutions developed using technology from the
world's leading companies, our clients guide their businesses more efficiently
and improve their profitability.
Starting from 1.1.2010, Solteq's operations were divided into four business
areas and the results of the company are monitored through these areas. Business
areas are: ERP (enterprise resource planning), EAM (enterprise asset
management), Data (data management, optimization and integration) and Store
(retail solutions and technology).
Solteq's turnover in the first quarter of 2011 was 6.850 thousand euros (6.168
thousand euros).
Solteq's operating profit was 365 thousand euros (-1.019 thousand euros). The
company's operating margin was 5.3% (-16.5% in 2010).
ERP
Solteq's ERP business area offers its clientele enterprise resource planning
systems and supporting optimization and reporting solutions as well as a set of
other different added value solutions. These solutions help customers lead their
operations and enhance, for example, their purchases, sales and warehouse
management, as well as reporting. A wide group of customers use these solutions
every day in the trade, industry, auto trade and public sector operating areas,
among others.
The revenue of the ERP business area totalled 4.3 million euros. The business
area's operating profit was 0,4 million euros.
EAM
Solteq's EAM solutions include systems for maintenance management, asset
management optimization, fieldwork management and maintenance. Through these
solutions, Solteq's customers can anticipate the need for service of production
lines and machines, monitor the malfunction history and control the machinery
maintenance related material flows from purchasing to warehousing. The clientele
consists of, among others, energy and production plants, companies in the
processing and engineering industries, as well as the maintenance related
service sector.
During the review period, the revenue of the EAM business area totalled 1.0
million euros and the operating profit was 0.0 million euros.
Data
Solteq's Data business area is responsible for services and products relating to
the data (namely, masterdata) that are crucial to the customers' businesses as
well as e-commerce and integration technologies. Solteq offers to its customers
masterdata-related quality improvement projects, data maintenance services in
which the services are outsourced to masterdata service centers, software
technologies and consultancy services that can be utilized in masterdata
management. The aim of these services is to ensure that the data that is stored
in the programs that support customers' enterprise resource planning and
decision-making is high-quality, compatible and up to date.
During the review period the revenue of the Data business area totalled 0.5
million euros and the operating profit was -0.1 million euros.
Store
The solutions of Solteq's Store business sector enhance the management of the
purchases, sales and customer relationships of specialty stores and chained
commerce. Every day hundreds of retailers, entrepreneurs and salespersons lead
their businesses and serve their customers in thousands of store locations by
means of these solutions.
The revenue of Store business area totalled 1.1 million euros and the operating
profit was 0.1 million euros during the review period.
TURNOVER AND RESULT
Turnover increased by 11.1% compared to the previous year and totalled 6.850
thousand euros (previous review period 6.168 thousand euros).
Turnover consists of several individual clienteles. At the most, one client
corresponds to less than ten per cent of the turnover.
The operating profit for the review period was 365 thousand euros (-1,019
thousand euros), the operating profit before taxes was 315 thousand euros (-
1,066 thousand euros) and the operating profit for the review period was 228
thousand euros (-802 thousand euros).
BALANCE SHEET AND FINANCING
The total assets amounted to 16.447 thousand euros (20.657 thousand euros).
Liquid assets totalled 85 thousand euros (202 thousand euros).
Solteq Group's interest-bearing liabilities were 6.103 thousand euros (6.767
thousand euros).
Solteq Group's equity ratio was 33.0 per cent (40.6%).
INVESTMENTS, RESEARCH AND DEVELOPMENT
Gross investment during the review period was 21 thousand euros (28 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, Wincor Nixdorf 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 fiscal year, product development costs were not amortized in
accordance with IFRS standards (comparison year also not amortized for the
review period).
PERSONNEL
The number of permanent employees at the end of the review period was 208 (242).
The average number of personnel during the review period was 225 (239). In the
end of the review period the number of personnel could be divided as follows
ERP: 98 people; EAM: 33 people; DATA: 22 people; STORE: 24 people and 31 people
in shared functions.
RELATED PARTY TRANSACTIONS
Solteq's related parties include the board of directors, managing director and
the management team.
The company has on 1/3 and 23/3/2011 provided notification about an arrangement
in which interest bearing loans and a directed issuance have been given to
Solteq Management Oy, which is owned by management.
Solteq Management Oy is combined into consolidated financial statements on the
basis of the shareholders' agreement.
SHARES, SHAREHOLDERS AND TREASURY SHARES
Solteq Plc's equity on 31.3.2011 was 1,009,154.17 euros which was represented by
12,148,429 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 company Solteq Management Oy's possession were 564,081 shares. The
amount of treasury shares represented 4.6% of the total amount of shares and
votes at the end of the review period. The equivalent value of acquired shares
was 46.857 euros.
Exchange and share price
During the review period, the exchange of Solteq's shares on the Helsinki Stock
Exchange was 0.8 million shares (0.2 million shares) and 0.8 million euros (0.3
million euros). The highest price during the review period was 1.19 euros and
the lowest price was 0.96 euros. The weighted average price of the share was
1.07 euros and the price ending was 0.99 euros. The market value of the
company's shares in the end of the review period totalled 12.0 million euros
(18.6 million euros).
Ownership
At the end of the review period, Solteq had a total of 1,914 shareholders (1,981
shareholders). Solteq's 10 largest shareholders owned 8,444 thousand shares,
amounting to 69.5 per cent of the company's shares and votes. Solteq Plc board
members owned a total of 5,149 thousand shares which equals 42.4 per cent of the
company's shares and votes.
ANNUAL GENERAL MEETING
At Solteq Plc's annual general meeting on 16 March 2011 the 2010 financial
statements were adopted and the members of the board and the managing director
were discharged from liability for the 2010 review period.
The annual general meeting decided in accordance with the board's proposal that
no dividend will be paid for the review period ending on 31 December 2010.
The annual general meeting decided to authorize the board of directors to decide
on acquiring and distress the company's own shares so that the amount in the
possession of the company may reach up to 10 per cent of the company's total
shares at that moment. The shares can be acquired in order to develop the
company's capital structure, finance and execute acquisitions or similar
arrangements or be used as part of the incentive scheme of the personnel or be
otherwise conveyed or cancelled. The shares can be acquired in proportions other
than the shareholders' holdings. The shares are to be acquired through public
trading. The authorization is valid until the next annual general meeting.
The General Meeting approved proposal by the Board to cover the loss of
3.412.908,22 euros in balance sheet by the fund for invested unrestricted
equity.
BOARD OF DIRECTORS AND AUDITORS
Five members were elected to the board of directors. Ali Saadetdin, Seppo Aalto,
Markku Pietilä, 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, was re-elected as Solteq's auditors.
Frans Kärki, APA, acts 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
Relating to year 2011, Solteq believes that the annual revenue will be at the
same level as in 2010. The operating profit, however, is believed to have
clearly improved to approximately 5 per cent.
Financial Reporting
This interim report has been prepared in accordance with the recognition and
measurement principles of IFRS-standards.
The financial result is reported through four business areas. The ERP business
area includes systems for finance and enterprise resource planning. The EAM
business area consists of asset management optimization, material management and
maintenance management systems. The Data business area includes tools for data
collection, assurance of data's quality and accuracy, as well as tools for data
integration between different systems. The Store business area includes point-
of-sale and store management systems. 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.-
31.3.2011 31.3.2010 31.12.2010
NET TURNOVER 6 850 6 168 26 998
Other operating
income 9 11 52
Raw materials and
services -1 485 -1 778 -7 394
Staff expenses -3 743 -4 124 -15 688
Depreciation -205 -211 -3 223
Other operating
expenses -1 061 -1 085 -5 060
OPERATING RESULT 365 -1 019 -4 315
Financial income and
expenses -50 -47 -172
RESULT BEFORE TAXES 315 -1 066 -4 487
Income taxes -87 264 780
RESULT FOR THE PERIOD
228 -802 -3 707
OTHER ITEMS OF TOTAL COMPREHENSIVE INCOME
Cash flow hedging 20 -42 -18
Other items of total comprehensive income
after taxes 15 -31 -13
TOTAL COMPREHENSIVE INCOME
243 -833 -3 720
Total profit for the period attributable to
Owners of the parent 228 -802 -3 707
Total comprehensive income attributable to
Owners of the parent 243 -833 -3 720
Earnings / share,
e(undiluted) 0,02 -0,07 -0,32
Earnings / share,
e(diluted) 0,02 -0,07 -0,32
Taxes corresponding to the result have been presented as taxes
for the period.
GROUP BALANCE SHEET (TEUR) 31.3.2011 31.3.2010 31.12.2010
ASSETS
NON-CURRENT ASSETS
Intangible assets
Intangible rights 2 008 2 651 2 093
Goodwill 6 199 8 286 6 199
Tangible assets 2 643 2 650 2 660
Investments
Other shares and similar
rights of ownership 93 93 93
Deferred tax
assets 568 139 654
Other receivables 87 0 87
Total non-current
assets 11 598 13 819 11 786
CURRENT ASSETS
Short-term debtors 4 764 6 636 5 294
Cash in hand and at banks 85 202 131
Total current
assets 4 849 6 838 5 425
TOTAL ASSETS 16 447 20 657 17 211
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 -686 -371 -618
Share premium account 75 75 75
Account for cash flow
hedging -5 -38 -20
Unrestricted equity
fund 3 801 7 214 7 214
Retained earnings 1 012 1 307 1 306
Result for the
financial period 228 -802 -3 707
Total equity 5 434 8 394 5 259
Non-current liabilities
Other non-current liabilities 3 101 4 367 3 016
Current liabilities 7 912 7 896 8 936
Total liabilities 11 013 12 263 11 952
TOTAL EQUITY AND
LIABILITIES 16 447 20 657 17 211
FINANCIAL PERFORMANCE
INDICATORS (IFRS) 1-3/2011 1-3/2010 1-12/2010
Net turnover MEUR 6,9 6,2 27,0
Change in net turnover 11,1 % -14,4 % -5,4 %
Operating result MEUR 0,4 -1,0 -4,3
% of turnover 5,3 % -16,5 % -16,0 %
Result before taxes MEUR 0,3 -1,1 -4,5
% of turnover 4,6 % -17,3 % -16,6 %
Equity ratio, % 33,0 40,6 30,6
Gearing, % 110,8 % 78,2 % 132,8 %
Gross investments in
non-current assets MEUR 0,0 0,0 0,2
Return on equity, % 13,4 % -37,7 % -48,7 %
Return on investment, % 11,1 % -28,3 % -29,3 %
Personnel at end of
period 208 242 220
Personnel average
for period 225 239 233
KEY INDICATORS PER SHARE
Earnings / share, e 0,02 -0,07 -0,32
Earnings / share,
e(diluted) 0,02 -0,07 -0,32
Equity / share, e 0,47 0,71 0,45
SEGMENT INFORMATION
Turnover by segment:
Me 1-3/11 1-3/10 Change
ERP 4,3 4,0 +0,3
EAM 1,0 0,9 +0,1
DATA 0,5 0,4 +0,1
STORE 1,1 0,9 +0,2
Total 6,9 6,2 +0,7
Operating result by segment:
Me 1-3/11 1-3/10 Change
ERP 0,4 -0,5 +0,9
EAM 0,0 -0,2 +0,2
DATA -0,1 -0,2 +0,1
STORE 0,1 -0,1 +0,2
Total 0,4 -1,0 +1,4
QUARTERLY KEY INDICATORS (MEUR)
2Q/09 3Q/09 4Q/09 1Q/10
Net turnover 7,49 5,62 8,23 6,17
Operating result 0,41 0,46 0,78 -1,02
Result before taxes 0,40 0,42 0,75 -1,07
2Q/10 3Q/10 4Q/10 1Q/11
Net turnover 6,59 6,75 7,49 6,85
Operating result -1,16 -0,04 -2,10 0,37
Result before taxes -1,20 -0,08 -2,15 0,32
CASH FLOW STATEMENT (MEUR)
1-3/2011 1-3/2010 1-12/2010
Cash flow from business
operations 1,04 0,14 0,82
Cash flow from capital
expenditure -0,02 -0,03 -0,15
Cash flow from financing activities
Dividend distribution 0,00 0,00 -0,71
Own shares -0,07 -0,03 -0,28
Loan agreement -1,00 -0,14 0,19
Cash flow from financing
activities -1,07 -0,17 -0,80
Change in cash and cash
equivalents -0,05 -0,06 -0,13
TOTAL INVESTMENTS (TEUR)
1-3/2011 1-3/2010 1-12/2010
Continuing operations,
group total 21 28 153
LIABILITIES (MEUR) 31.3.2011 31.3.2010 31.12.2010
Company quorantee for
credit limits 2,61 2,61 2,61
Perfomance bonds 0,00 0,05 0,00
Lease contracts, machinery &
equipment 0,60 0,61 0,41
Lease liability,
premises 1,69 2,11 1,80
Pledged shares 1,59 1,59 1,59
MAJOR SHAREHOLDERS MARCH 31, 2011
%
1. Saadetdin Ali 3 481 383 28,7
2. Aalto Seppo 1 662 206 13,7
3. Profiz Business Solution Oyj 1 384 823 11,4
4. TP-Yhtiöt Oy 513 380 4,2
5. Solteq Management Oy 400 000 3,3
6. Roininen Matti 350 000 2,9
7. Hakamäki Jorma 228 430 1,9
8. Solteq Oyj 164 081 1,4
9. Saadetdin Katiye 156 600 1,3
10. Aukia Timo 103 230 0,8
10 largest shareholders total 8 444 133 69,5
Total of nominee-registered 21 016 0,2
Others 3 683 280 30,3
Total 12 148 429 100,0
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 1.1.2010 1 009 -337 75 -7 7 213 2 020 9 973
Total comprehensive income -31 -802 -833
Acquiring of own shares -34 -34
dividend distribution -712 -712
EQUITY 31.3.2010 1 009 -371 75 -38 7 213 506 8 394
EQUITY 1.1.2011 1 009 -618 75 -20 7 213 -2 400 5 259
Total comprehensive income 15 228 243
Acquiring of own shares -68 -68
Loss covered by fund -3 413 3 413 0
EQUITY 31.3.2011 1 009 -686 75 -5 3 800 1 241 5 434
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 2011 have been scheduled as
follows:
* Interim Report 1-6/2011 Friday, 22/07/2011
* Interim Report 1-9/2011 Thursday, 20/10/2011
More investor information is available from Solteq's website at www.solteq.com
Additional information:
CEO Repe Harmanen
Telephone: +358 400 467 717
Email: repe.harmanen(at)solteq.com
CFO Antti Kärkkäinen
Telephone: +358 20 1444 393 or +358 40 8444 393
Email: antti.karkkainen(at)solteq.com
Distribution:
NASDAQ OMX Helsinki
Key Media
Solteq Plc IR1Q2011:
http://hugin.info/130643/R/1509647/444478.pdf
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Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Solteq Oyj via Thomson Reuters ONE
[HUG#1509647]
Unternehmensinformation / Kurzprofil:
Datum: 28.04.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 53970
Anzahl Zeichen: 32969
contact information:
Town:
Tampere
Kategorie:
Business News
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