Innofactor Plc Financial Statement 2011
28.02.2012 00:00
Innofactor Plc Financial Statement Release February 28, 2012, at 8:30 Finnish time
Summary
Innofactor group's key figures for October 1–December 31, 2011:
• Net sales EUR 5,136 thousand (2010: 3,312), increase of 55.1%
• Operating profit before depreciation and amortization (EBITDA), EUR 606 thousand (2010: 460), increase of 31.7%
• EBITDA percentage 11.8% (2010: 13.9%)
• Operating profit (EBIT) EUR 463 thousand (2010: 391), increase of 18.4%
• EBIT percentage 9.0% (2010: 11.8%)
Innofactor group's key figures for January 1–December 31, 2011:
• Net sales EUR 17,205 thousand (2010: 9,862), increase of 74.5%
• Operating profit before depreciation and amortization (EBITDA), EUR 1,443* thousand (2010: 980), increase of 47.2%
• EBITDA percentage 8.4%* (2010: 9.9%)
• Operating profit (EBIT) EUR 904* thousand (2010: 702), increase of 28.8%
• EBIT percentage 5.3%* (2010: 7.1%)
* The figures include one-off costs related to the relisting and the consolidation of shares for about EUR 300 thousand.
There are notable uncertainties related to the outlook for 2012 due to the instability of the global financial situation, so no detailed forecasts for 2012 can be provided. In 2012, the organic growth of Innofactor is estimated to continue (2011: net sales were EUR 17,205 thousand). The profitability of the business operations is expected to remain positive.
The figures in this financial statement have been audited.
Key figures of the group, IFRS
mo. 10-12 /2011 | mo. 10-12 /2010 | Change | mo. 1-12 /2011 | mo. 1–12 /2010 | Change | mo. 1-12 /2009 | |
Net sales, EUR thousand | 5,136 | 3,312 | +55.1% | 17,205 | 9,862 | +74.5% | 6,920 |
Operating profit before depreciation and amortization (EBITDA), EUR thousand* | 606 | 460 | +31.7% | 1,443 | 980 | +47.2% | 1,309 |
percentage of net sales* | 11.8% | 13.9% | 8.4% | 9.9% | 18.9% | ||
Operating profit (EBIT), EUR thousand* | 463 | 391 | +18.4% | 904 | 702 | +28.8% | 1,165 |
percentage of net sales* | 9.0% | 11.8% | 5.3% | 7.1% | 16.8% | ||
Earnings before taxes, EUR thousand* | 457 | 387 | +18.1% | 886 | 696 | +27.3% | 1,182 |
percentage of net sales* | 8.9% | 11.7% | 5.1% | 7.1% | 17.1% | ||
Earnings, EUR thousand* | 361 | 281 | +28.5% | 687 | 505 | +32.5% | 875 |
percentage of net sales* | 7.0% | 8.5% | 4.0% | 5.1% | 12.6% | ||
Equity, EUR thousand | 12,905 | 12,218 | +5.6% | 12,905 | 12,218 | +5.6% | 2,597 |
Return on equity** | 2.8% | 3.9% | 5.5% | 6.8% | 40.5% | ||
Return on investment** | 3.7% | 5.7% | 7.2% | 9.7% | 54.9% | ||
Net gearing | -5.4% | -14.0% | -5.4% | -14.0% | -63.5% | ||
Equity ratio | 74.5% | 68.2% | 74.5% | 68.2% | 56.1% | ||
Balance sheet total, EUR thousand | 18,324 | 19,517 | -6.1% | 18,324 | 19,517 | -6.1% | 5,355 |
Research and development, EUR thousand*** | 369 | 2,086 | 1,173 | +77.8% | 680 | ||
percentage of net sales*** | 7.2% | 12.1% | 11.9% | 9.8% | |||
Personnel on average during the review period | 184 | 133 | +38.3% | 177 | 108 | +63.9% | 66 |
Personnel at the end of the review period | 189 | 171 | +10.5% | 189 | 171 | +10.5% | 89 |
Number of shares at the end of the review period**** | 29,261,800 | 29,261,849 | -0.0% | 29,261,800 | 29,261,849 | -0.0% | 16,756,659 |
Earnings per share (EUR)**** | 0.0123 | 0.0121 | +1.1% | 0.0235 | 0.0274 | -14.2% | 0.054 |
Shareholders' equity per share (EUR)**** | 0.441 | 0.418 | +5.5% | 0.441 | 0.418 | +5.5% | 0.15 |
* The figures include one-off costs related to the relisting and the combination 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 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
In 2011, Innofactor’s net sales grew by 74.5 percent from the corresponding period last year. Organic growth was about 21.4 percent and inorganic growth about 53.1 percent.
In 2011, the research and development focused 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 2,086 thousand (2010: EUR 1,173 thousand and 2009: EUR 680 thousand), showing growth of 77.8 percent.
Operating profit before depreciation and amortization (EBITDA) in 2011 were EUR 1,443 thousand (8.4%) and operating profit (EBIT) were EUR 904 thousand (5.3%). In 2011, special attention was paid to improving profitability, which was improved during the year (EBITDA Q1: 3.8%, Q2: 6.3%, Q3: 10.9% and Q4: 11.8%, but it should be noted that also in previous years, Innofactor's operations have typically been more profitable at the end 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
Due to the instability of the general financial situation, it is impossible to make reliable estimates on the development of the IT markets. During the previous recession, the IT markets did not react as strongly to the change in the market situation as other sectors did, so in a possible new recession, the effects probably should not be too dramatic, but it is difficult to present any figures.
A clear change is taking place in the IT markets. One of the central trends is the consumerization of information technology, leading to a situation where more and more of companies' information technology purchases are based on the conditions of consumer markets. Corporate customers aim to deploy software that can be used phones, tablets and personal computers. Another central trend consists of the new environments offered by cloud computing and the possibilities of offering software from a cloud to a wide user base and for all terminals, including phones. The company believes that Microsoft is well positioned for this change because its leading position in business applications and strong investment in mobile devices.
The company believes that, in the long term, this development will enable further growth for companies like Innofactor, which have a strong commitment with Microsoft, in both the traditional system integrator business locally and in delivering cloud and mobile applications globally. The company believes that strong commitment with Microsoft will bring companies a significant competitive edge. Companies that have a strong focus in Microsoft solutions are primarily relatively small, so Innofactor believes that it is probable that the market will consolidate through mergers and acquisitions, which offers Innofactor possibilities to grow inorganically.
In June 2011, Innofactor was awarded as the Microsoft Country Partner of the Year in Finland, 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, especially in the Microsoft's organization. On July 10, 2011, Innofactor launched its new cloud services at the Microsoft Worldwide Partner Conference in Los Angeles, USA. In November 2011, the Finnish Software Entrepreneurs Association selected Sami Ensio, the founder and CEO of Innofactor, as the Software Entrepreneur of the Year, which has also provided positive publicity.
Future outlook
There are notable uncertainties related to the outlook for 2012 due to the instability of the global financial situation, so no detailed forecast for 2012 can be provided. In 2012, the organic growth of Innofactor is estimated to continue (2011: net sales were EUR 17,205 thousand). The profitability of the business operations is expected to remain positive.
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 write-downs (EBITDA) that exceeds 10 percent, the maximum dividend allowed by the state of the business. For 2011, 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 2011, the distributable assets of the group's parent company were EUR 28,535,337.36.
The Board of Directors proposes that Innofactor Plc should not pay any dividend for the financial period of 2011.
Espoo, February 28, 2012
INNOFACTOR PLC
Board of Directors
Additional information:
CEO Sami Ensio, Innofactor Plc
Tel. +358 50 584 2029
sami.ensio@innofactor.com
Briefings on the Financial Review for 2011
Innofactor’s President and CEO Sami Ensio will present the Financial Review for 2011 in a briefing in Finnish for analysts and media, on 28 February at 09:00 Finnish time (11:00 GMT) at Scandic Continental, Mannerheimintie 46, Helsinki. Mr. Ensio will comment achievements 2011 and outlook for the current year.
Innofactor’s President and CEO Sami Ensio will present the Financial Review for 2011 in a web conference for analysts, media and investors, held in English language, on 28 February at 16:00 Finnish time (14:00 GMT). Registration: ir@innofactor.com
Financial releases in 2012
The schedule for financial releases in 2012 is as follows:
Week 10/2012: Annual Report*
March 27, 2012, at 10:00 Finnish time: Annual General Meeting
April 16–April 29, 2012: Silent period
April 30, 2012, at 8:30 Finnish time: Interim report for January–March
July 16–July 30, 2012: Silent period
July 31, 2012, at 8:30 Finnish time: Interim report for January–June
October 16–October 30, 2012: Silent period
December 31, 2012, at 8:30 Finnish time: Interim report for January–September
* Differing from what was stated previously, it has been decided that the Annual Report for 2011 will be published on week 10/2012.
Distribution:
NASDAQ OMX Helsinki
Main media
www.innofactor.com
ENCLOSURE: Innofactor Plc Financial Statement 2011