EASE2PAY N.V. 
By PR Newswire/ANP/
Positive developments enforce foundation of strategy 'Vision 2010: Gear
to Growth':
- Revenue increases 12% to EUR 78.6 million
- Operating profit (EBIT) increases 45% to EUR 5.4 million
Proposal to increase the dividend to EUR 0.30 per share from basic
earnings per share of EUR 0.55 for 2008
Industrial Automation Integrators (IAI) changes name into IAI industrial
systems and presents new logo
Results and Financial position for the financial year 2008
(in millions, except percentage 2008 2007
figures and per share data)
EUR % EUR %
Revenue
Internet service company Docdata 67.2 85.6 61.6 87.7
Technology company IAI industrial
systems 11.4 14.4 8.6 12.3
Total 78.6 100.0 70.2 100.0
Gross profit 22.8 29.0 17.7 25.2
Operating profit (EBIT)
Internet service company Docdata 2.7 3.5 1.4 2.0
Technology company IAI industrial
systems 2.7 3.4 2.3 3.3
Total 5.4 6.9 3.7 5.3
Result after tax from discontinued - - 0.4 0.6
operation
Profit for the year 3.7 4.7 3.4 4.8
Basic earnings per share 0.55 0.48
Diluted earnings per share 0.53 0.47
Balance sheet total 40.9 42.5
Equity 21.2 22.2
Solvency ratio (Equity / Balance
sheet total) 51.8% 52.3%
General
The strategy 'Vision 2010: Gear to Growth' is well on track for both the
Internet service company Docdata and the technology company IAI industrial
systems, which is shown in 2008 by a positive development of revenue and
operational profit. The divisions of the Internet service company, Docdata
fulfilment, Docdata commerce and Docdata payments, as well as the technology
company IAI industrial systems, have each realised growth in revenue of more
than 30%; of the total revenue growth, 19%-point has been realised through
autonomous growth. In 2009 we will continue the same route with autonomous
growth as the priority.
The strong growth of the Internet service company Docdata is for an
important part realised by the success of existing customers, and also by the
addition of new customers. We offer customers specific and full Internet
solutions. In the Benelux we are known as the most progressive Internet
service company and we are pleased to be part of the secret behind the
success of our customers. In Germany and the United Kingdom we are not on
this level yet but we will work hard to achieve this in the next few years.
We will keep investing in people and systems to stay in first position. We
reached new milestones in 2008, for instance we processed more than 2 million
unique transactions in one month; transactions including realized orders,
payments, shipments and returns.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "The current economic
crisis will have an impact on online spending. The growth will slow down, but
also in 2009 more people will place more orders online, with correct and
timely handling of orders as one of the main conditions for success. The
growth in online sales will be at the expense of traditional retail."
In the document security market Technology company IAI industrial systems
is seen as the highest quality supplier of production systems to personalise
and/or secure documents issued by governments. In 2008, IAI expanded the
product range considerably in the document security market through the
development of three new systems. This has resulted in 2008 in the delivery
of new high-end systems, enabling IAI to achieve excellent results. In
addition, IAI has an order book of EUR 10.8 million at the end of 2008. For
2009, we expect further growth.
As earlier announced, IAI has searched for an entrance in the growth
market of solar energy. In this market, IAI offers production systems for
solar cells or solar panels. Both in the Netherlands and Germany a network
has been built in 2008. Also a first production system was designed, built
and delivered. As a result of the current economic crisis we expect that
potential customers will postpone the purchase of new production systems
until they have more certainty about their funding.
Michiel Alting van Geusau, CEO of DOCDATA N.V.: "We are ideally
positioned in the document security market to compete with the major players
because of our high quality, reliable and customised systems. Despite the
credit crisis we expect that governments will continue to invest, and that
companies will eventually continue to invest in the development of clean
energy, possibly with governmental aid. Anyhow, we keep investing in new
developments."
Major features of the financial results for the 2008 year-end
Revenue of DOCDATA N.V. has increased in 2008 with EUR 8.4 million to EUR
78.6 million (+12%). The realised gross profit has increased to EUR 22.8
million compared to EUR 17.7 million in 2007 (+29%). Gross profit margin
increased to 29% for the year 2008 and has therefore clearly risen over the
last couple of years (2007: 25.2%; 2006: 23.7%), which proves that the new
strategy is working.
In 2008, an operating profit before financing result (EBIT) has been
realised of EUR 5.4 million. The increase with EUR 1.7 million compared to
2007 (+45%) is for the largest part realised by the Internet service company
Docdata, predominantly as a result of the higher activity level.
The profit for the year 2008 is EUR 0.3 million (+9%) higher than in
2007. The improvement has been influenced by the non-recurring profit from
discontinued operation (net of income tax) of EUR 0.4 million in 2007, and by
the EUR 0.6 million higher income tax expenses in 2008. Profit before income
tax in 2008 is EUR 1.3 million (+36%) higher than in 2007.
The cash flow statement in the Appendix to the attached enclosure
'Financial Information' shows that DOCDATA N.V. has realised net cash from
operating activities of EUR 8.9 million in 2008. The spending of this cash is
shown in this cash flow statement as well.
DOCDATA N.V. has maintained its strong financial position with a solvency
ratio of 51.8% at 31 December 2008 (31 December 2007: 52.3%). Furthermore,
the cash surplus position has increased in 2008 with EUR 0.9 million to EUR
4.4 million (31 December 2007: EUR 3.5 million).
Mission statement
The mission statement of DOCDATA N.V. is "enabling success"; for clients,
as well as for our employees, shareholders and suppliers.
- For the Internet service company Docdata, this means the offering of
unique and reliable solutions to our clients which enable them to be
successful in their Internet business. The power is in the four
specialties that offer their services separately, while together
forming a unique total concept.
- For the technology company IAI industrial systems, this consists of
offering our clients unique (production) technologies with an extremely
high quality.
- For the DOCDATA N.V. shareholders, this has resulted in 2008 in
dividend distributions of EUR 1.7 million and share buyback programs
for EUR 1.9 million.
- For our employees, we offer a positive and challenging working
environment with sufficient possibilities for further development and
room for own initiatives.
Outlook
The focus in 2009 will be on autonomous profitable growth.
The focus for the Internet service company Docdata is on the further
development of the Internet service model in Germany and the United Kingdom.
The goal is to become a top 5 player there as well in the coming years. For
2009, we expect further growth, despite the economical market situation; with
the clear exception of Docdata media.
In the document security market, Technology company IAI industrial
systems has not only realised outstanding results in 2008, but the order
portfolio for 2009 is well filled at the end of 2008. A substantial part of
the 2009 revenue will be realised by delivery of systems that were developed
in 2008. It is satisfying to notice that development efforts can lead to a
pay back on such a short term. With the further expansion in the document
security market and the entrance in the Solar market, IAI can face the year
2009 with confidence.
Dividend
Management of DOCDATA N.V. will propose to the shareholders at this
year's annual General Meeting of Shareholders, in accordance with Article 28
of the Articles of Association of DOCDATA N.V., to decide to distribute to
all shareholders of ordinary shares a dividend amount of EUR 0.30 per
ordinary share out of the profit for the year 2008. The distribution will be
subject to dividend withholding taxes, unless the shareholder can proof that
substantial holding exemption can be claimed.
The dividend policy of DOCDATA N.V., adopted by the General Meeting of
Shareholders, is aimed at realising a high dividend return, for which a
payout ratio of at least 50% is the target. The liquidity and solvency
required for the execution of the strategy, will also be taken into
consideration.
At 31 December 2008, the issued share capital of DOCDATA N.V. consists of
7,000,000 ordinary shares with a nominal value of EUR 0.10 each. DOCDATA N.V.
currently holds 384,902 (5.50%) of these issued ordinary shares, which are
kept in order to fund the personnel options scheme and to finance future
acquisitions. Ordinary shares owned by the Company are not entitled to any
distribution of profit.
When the General Meeting of Shareholders decides to accept this proposal,
an amount of EUR 2 million will be distributed in May 2009 as dividend out of
the profit for the year 2008 on the ordinary shares, which are held by other
shareholders than the Company. The General Meeting of Shareholders shall be
held on Wednesday 13 May 2009 in Waalwijk. The dividend distribution will
lead to a limited decrease of the solvency ratio.
The dividend proposed by DOCDATA N.V. of EUR 0.30 per share (in total:
EUR 2 million), to be distributed out of the profit for the year 2008,
increases with 20% compared to the dividend of EUR 0.25 per share (in total:
EUR 1.7 million) that was distributed out of the profit for the year 2007; in
2007, a dividend of EUR 0.20 per share (in total: EUR 1.4 million) was
distributed out of the profit for the year 2006.
Results by Business
Internet service company Docdata
We are the Internet service company
We develop customer-focused and integrated solutions
We process unique transactions
To realise growth we invested in 2008 in people and resources. Also for
2009 we expect to invest further with a focus on:
1. Operational Excellence
2. Growth in the number of transactions
Docdata commerce
Revenue of Docdata commerce more than doubled in 2008 driven
predominantly by strong sales growth from existing customers for whom we also
fulfil the merchant role. The focus of docdata commerce is on building
long-lasting relationships with our customers, for which we take on the full
management of their e-Store. We are (partly) responsible for the transactions
via the web shop and we are also paid per transaction or as percentage of the
actual revenue paid.
Docdata payments
Docdata payments achieved in 2008 a growth of over 30%, while more than
10 million transactions (online payments, check payments, charges backs and
refunds) were processed for our customers. The focus of Docdata payments is
on the successful rollout of our services in Europe. In 2008 we invested in
people and IT developments for the service to our customers to run flawless.
Also in 2009 we will continue to further develop our IT systems to lead the
way in developments in the market.
Docdata fulfilment
Also Docdata fulfilment realised a growth of more than 30% in 2008.
Docdata Fulfilment takes care of processing complex orders in large volumes
within short time (within a day). Ordered today, delivered tomorrow. In 2008
Docdata successfully processed nearly 10 million transactions (shipments and
returns). For 2009 the focus will be on signing up new customers and the
implementation of further mechanization and system automation.
Docdata media
Like previous years, 2008 is also characterised by a declining demand for
both CD and DVD production services. This has resulted in a revenue decline
of approximately 16%. Nevertheless, Docdata media realised a higher gross
profit through cost-savings. At the beginning of 2009 Docdata media has sold
her production activities in the United Kingdom. Also, in 2008 the company 4D
upgrade GmbH was sold to the management. In 2009 and 2010 Docdata media will
be developed into an Internet services company of which the new services will
seamlessly fit with the other three Internet services.
Technology company IAI industrial systems
We offer high quality production systems and a reliable organisation
We offer flexible, fast, reliable and accurate technological solutions
We offer the most innovative laser and optical technology
In 2008 IAI achieved significantly higher revenue than in 2007. The
operating profit rose less than sales as a result of the development of new
systems, strengthening of the organisation and entering the solar energy
market. In 2009 we will continue this route.
In order to facilitate growth, the IAI organisation was evaluated and the
necessary organisational changes were put in motion. One change is the
addition of new employees which will continue in 2009. Engaged and motivated
employees who wish to contribute in their own discipline in the production of
very special systems; that is the challenge for IAI.
To make these changes known to the outside world, IAI decided to change
the name to "IAI industrial systems" and to modernise and logo.
IAI Security
The major part of the 2008 revenue was realised in the document security
market. The important Ukrainian order from 2004 could finally be completed in
2008. This order, the delivery of BookMaster One passport personalisation
systems, was delayed for reasons of the customer. To Orell Fussli, the Swiss
security printer and inventor of the security feature MicroPerf(R), a system
was delivered that will apply MicroPerf(R) in the new series of Swiss
banknotes.
For the document security market, three new systems were developed in
2008 and all three were sold; two of these were even delivered in 2008. The
three new systems are a new BookMaster One version for paper holder pages,
sold to Algeria, and the SheetMaster Flex and WebMaster Flex systems which
were sold and delivered to South Africa. With the introduction of these
systems, the product range of IAI in the document security market has
expanded considerably. Noteworthy is the fact that IAI has an increasing
number of European countries as customer, including new European Union Member
States. In addition, systems were delivered to South Africa, and in 2009
systems will be installed for the first time in India.
IAI Solar
IAI has built a network in 2008 in the solar market, covering The
Netherlands as well as Germany. In particular contacts were made in the
region of Berlin, where many solar activities are developed. These efforts
will hopefully be rewarded in the coming years with contracts, although the
end of 2008 showed that this market is severely affected by the credit
crisis. We see this as temporary, because the fundamental reasons why this
market is a growth market have not changed. In the "Solar" market, IAI will
deliver production systems for solar cells and solar modules. A first
innovative system has been designed, built and delivered in 2008.
Accounting principles
The consolidated financial statements of DOCDATA N.V. are prepared in
accordance with the International Financial Reporting Standards as adopted by
the European Union (hereafter IFRS). For an overview of the significant
accounting policies under IFRS, please refer to the 2007 Annual Report that
is available at the Company and can also be downloaded from the Company's
website, http://www.docdata.com, under Corporate.
Enclosure with financial information
For a detailed review of the 2008 year-end results, please refer to the
attached enclosure 'Financial Information for the year ended 31 December
2008' with Appendix.
Meeting for financial press and analysts
Today, 19 February 2009, management of DOCDATA N.V. will discuss the 2008
year-end results in a meeting for which both financial press and analysts
have been invited, to be held at 10.30AM Amsterdam time in the Mercurius room
of the Financieel Nieuwscentrum Beursplein 5 of NYSE Euronext Amsterdam
(Beursplein 5, 1012 JW Amsterdam, telephone +31-20-5505505).
Important dates
22 April 2009 Publication of 2008 Annual Report
6 May 2009 Record date (voting rights)
13 May 2009 (*) Annual General Meeting of Shareholder
in Waalwijk
14 May 2009 Cum-date
15 May 2009 Ex date
19 May 2009 Record date (dividend rights)
22 May 2009 Dividend payment date
28 July 2009 Publication of 2009 half-year results
(*) Note: new date; the 2007 Annual Report referred to 14 May 2009 as
preliminary date
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The listed DOCDATA N.V. exists of two lines of business:
Internet service company Docdata (http://www.docdata.com) is a European
market leader with a strong basis in The Netherlands, Germany and the United
Kingdom, and exists of four divisions:
- docdata commerce
- docdata payments
- docdata fulfilment
- docdata media
Technology company IAI industrial systems (http://www.iai.nl) is a high
tech engineering company specialised in developing and building systems for
very accurate and high speed processing of all kinds of products and
materials. IAI delivers clients globally in the following sectors:
- securing and personalising of security documents
- processing of packaging materials
- processing of solar cells
- processing of other materials
Financial Information
The financial information is prepared in accordance with International
Financial Reporting Standards as adopted by the European Union (hereafter
IFRS).
Revenue
(in thousands, except percentage figures) 2008 2007
Revenue by company EUR % EUR %
Internet service company Docdata 67,269 85.6 61,590 87.7
Technology company IAI 11,351 14.4 8,629 12.3
Total 78,620 100.0 70,219 100.0
- Revenue of Internet service company Docdata increased EUR 5.7 million
(+9%) in 2008 compared to 2007. The decreasing currency exchange rate of the
British pound in 2008 has had a decreasing effect (hereafter the 'FX GBP
effect') on revenue of EUR 2.6 million. Total revenue of the divisions
Docdata commerce, Docdata payments and Docdata fulfilment increased EUR 11.3
million (+42%) in 2008 compared to 2007 (FX GBP effect: -/- EUR 1.0 million).
Revenue of the Docdata media division decreased EUR 5.6 million (-/-16%) in
2008 (FX GBP effect: -/- EUR 1.6 million). The acquisitions docdata commerce
Ltd. (formerly named 'Hitura Ltd.') and Pegasus e-Business GmbH were not
yet consolidated in the 2007 financial statements, and docdata payments B.V.
(formerly named 'Triple Deal B.V.') was included in the 2007 consolidated
income statement for seven months. Together these subsidiaries contributed
for EUR 4.7 million to the 2008 revenue increase. Revenue has increased for
EUR 6.6 million (+27%) due to autonomous growth (FX GBP effect: -/- EUR 1.0
million).
- Technology company IAI's revenue increased EUR 2.7 million (32%) in
2008 compared to 2007, which is caused by a higher number of security systems
sold, first-time revenue from business in the solar market in 2008, in
combination with a changed mix of revenues from deliveries of subassemblies,
service, packaging contract research and development, and production
royalties in the passport market segment.
Gross profit
(in thousands, except percentage figures) 2008 2007
Gross profit (margin) by company
(margin as % of revenue by company) EUR % EUR %
Internet service company Docdata 18,487 27.5 14,028 22.8
Technology company IAI 4,307 37.9 3,671 42.5
Total 22,794 29.0 17,699 25.2
- Internet service company Docdata realised an increase in gross profit
of EUR 4.5 million (32%) in 2008 compared to 2007. Gross profit increased EUR
1.6 million (11%) due to autonomous growth; the effect of changes in the
consolidation for the two comparable years on gross profit was EUR 2.9
million. Gross profit and gross profit margin for the three divisions Docdata
commerce, Docdata payments and Docdata fulfilment have improved predominantly
by a higher activity and revenue level, enabling efficiency improvements
through economies-of-scale. Also the Docdata media division has realised
growth in gross profit margin from 14.7% in 2007 to 16.3% in 2008. Docdata
media was successful in controlling production costs (including material
expenses for polycarbonate and DVD-production royalties, personnel expenses,
depreciation expenses and overheads) in relation to developments in the
average sales prices for CD and DVD.
- Gross profit of Technology company IAI increased EUR 0.6 million in
2008 compared to 2007. The gross profit margin increased, predominantly
caused by the difference in the sales mix of security systems delivered in
both years, as well as in the mix of the other revenue categories for the
previous year.
Operating profit before financing result (EBIT)
Selling & Administrative expenses
(in thousands, except percentage figures) 2008 2007
Operating profit (margin) by company
(margin as % of revenue by company) EUR % EUR %
Internet service company Docdata 2,726 4.1 1,433 2.3
Technology company IAI 2,691 23.7 2,306 26.7
Total 5,417 6.9 3,739 5.3
Selling & Administrative expenses (as % of
revenue)
Selling expenses 5,501 7.0 4,230 6.0
Administrative expenses 11,699 14.9 9,847 14.0
Total 17,200 21.9 14,077 20.0
Selling & Administrative expenses by
company
(as % of revenue by company)
Internet service company Docdata 15,585 23.2 12,712 20.6
Technology company IAI 1,615 14.2 1,365 15.8
Total 17,200 21.9 14,077 20.0
- Operating profit of Internet service company Docdata increased EUR 1.3
million (90%) in 2008 compared to 2007. This increase is the combined effect
of an increase in gross profit of EUR 4.5 million and an increase in selling
and administrative expenses of EUR 2.9 million and a decrease in other
operating income and expenses of EUR 0.3 million. The effect of changes in
the consolidation for the two comparable years on selling and administrative
expenses was EUR 2.7 million. The increased selling expenses and
administrative expenses reflect the execution of the new strategy 'Vision
2010: Gear to Growth', where higher personnel expenses and organisational
costs have been incurred to enable growth of the activity and business levels
for the divisions Docdata commerce, Docdata payments and Docdata fulfilment.
In general, the increase in expenses can be explained by required investments
in personnel, organisational improvements, development of IT solutions, and
design and implementation of e-Solutions for (new) customers. Despite this,
the operating profit margin has improved in 2008 to 4.1% from 2.3% in 2007.
- Operating profit of Technology company IAI increased EUR 0.4 million
(17%) in 2008 compared to 2007. This increase is the combined effect of an
increase of EUR 0.6 million in gross profit and an increase in selling and
administrative expenses of EUR 0.2 million. The lower operating profit margin
is due to the different sales mix for both comparable years, with a lower
gross profit margin of the revenue in 2008, in combination with higher
selling and administrative expenses in 2008. This increase in expenses and
the resulting decrease in operating profit margin is fully in line with our
plans for 2008, in which we communicated higher personnel expenses and higher
consultancy costs, mainly related to the strategic entrance into the solar
market.
Net financing expenses
Net financing expenses in 2008 amounted to nearly EUR 0.5 million
compared to net financing expenses of EUR 0.3 million in 2007. This increase
of just over EUR 0.1 million is caused by lower net bank interest in 2008
(effect: EUR 0.1 million) and a EUR 0.2 million higher foreign currency
exchange loss in 2008, compared to the financial expenses in 2007, due to the
euro becoming stronger against the British pound.
Income tax expense
DOCDATA's effective tax rate in 2008 was 27% with an income tax expense
of EUR 1.3 million on a profit before income tax of EUR 5.0 million. In 2007,
the profit from continuing operations before income tax amounted to EUR 3.7
million and the income tax expense amounted to EUR 0.7 million (effective tax
rate: 19%).
The income tax expense of EUR 1.3 million in 2008 is the combined result
of the following tax treatments of the results per country:
- In the Netherlands, a tax charge has been recorded at a corporate
income tax rate of 25.5% on the taxable income for the Dutch fiscal
entity as well as for the Dutch subsidiaries that are not part of
this fiscal entity.
- In the United Kingdom, income taxes are recorded against a corporate
income tax rate of 28.0% (2007: 30.0%). As a consequence of the signing
on 30 January 2009 by docdata media Ltd. of the Asset Purchase
Agreement with Sound Performance Manufacturing Ltd., no deferred tax
assets on the remaining net operating losses and capital allowances of
docdata media Ltd. have been recognised in the consolidated balance
sheet at 31 December 2008 given the sale of the UK media business and
tangible fixed assets.
- In Germany, a tax charge has been recorded at a corporate income tax
rate of in general around 30.0% on taxable income for the German
entities, taking into account lower income tax rates for some regions
in Germany when and where applicable. Furthermore, 2008 taxable profits
of docdata in Germany could be offset against prior years' net operating
losses which were not (fully) recognised in deferred tax assets; this
has resulted in a 2008 corporate tax income in Germany.
Profit from discontinued operation (net of income tax)
The profit from discontinued operation (net of income tax) of EUR 0.4
million in 2007 resulted from the reassessment at the end of the year 2007 of
all existing risks at that time in relation to the termination of the former
French activities of the Media Group (currently a division of the Internet
service company docdata), which were accounted for at net realisable value in
the consolidated balance sheet at 31 December 2006 and were then reported
under assets and liabilities classified as held for sale. Reference is made
to section 5.5 Discontinued operation of the Notes to the Consolidated
Financial Statements for further information.
Liquidity and capital resources
In 2008, the Group's net cash position has increased with EUR 0.9 million
to EUR 4.4 million from EUR 3.5 million at 31 December 2007. In addition to
the EUR 1.9 million dividend payment and the EUR 1.9 million share buy-back,
the Group has invested a total amount of EUR 4.5 million in 2008: EUR 2.2
million in property, plant and equipment (mainly warehousing equipment and
investment in IT infrastructure); EUR 0.6 million for the acquisition of an
additional share interest of 20% (bringing the share interest to 80%) in
docdata commerce B.V. (formerly named 'DOCdata e-Commerce Solutions B.V.'),
EUR 0.4 million for the acquisition of an additional share interest of 40%
(bringing the share interest to 70%) in Pegasus e-Business GmbH, EUR 0.3
million for the acquisition of a controlling share interest of 70.9% in
Hitura Limited (post-acquisition name 'docdata commerce Ltd.'), and EUR 1.0
million in intangibles (predominantly IT development costs). These payments
and investments in 2008 for a total of EUR 8.3 million were fully financed
from the Group's net cash flow from operating activities of EUR 8.9 million
(2007: EUR 8.3 million), including total depreciation and amortisation
expenses of EUR 3.7 million (2007: EUR 3.6 million).
The General Annual Meeting of Shareholders held on 15 May 2008 approved
the proposal to distribute a dividend of EUR 0.25 per ordinary share
outstanding (excluding own shares held by the Company), which had a
decreasing impact of EUR 1.7 million on retained earnings within the equity
of the Company in 2008. Furthermore, the shareholders approved in that same
meeting the proposal for the cancellation of 308,850 shares to bring the
issued share capital down to 7,000,000 shares. This cancellation procedure
was formally completed at 16 September 2008.
In 2008 16,280 personnel options were exercised; 13,850 options from the
2003 series at a price of EUR 2.68 per share, and 2,430 options from the 2004
series at a price of EUR 4.48 per share. The underlying shares have been
delivered by the Company from the own shares in possession of the Company.
The proceeds of EUR 48 thousand have been credited to equity under reserves,
as the purchase of own shares has been charged to reserves in the past. In
addition, 20,741 shares were granted to the CEO in May 2008, following the
approval by the General Meeting of Shareholders on 15 May 2008 of the
Remuneration Report 2007. Furthermore, the Company purchased 295,584 own
shares in 2008, for a total purchase price of EUR 1.9 million, to bring the
number of own shares owned up to 389,402 (5.56%) shares at 31 December 2008.
At this moment, the Company owns 384,902 own shares (5.50%); the decrease of
4,500 shares is the result of the exercise on 2 February 2009 of the
remaining outstanding share options of the 2004 series owned by personnel of
docdata media Ltd. in Telford following the Asset Purchase Agreement with
Sound Performance Manufacturing Ltd. with which their labour contracts with
docdata media Ltd. were transferred and thus their docdata employment
terminated.
Consolidated Financial Statements
1. Consolidated Balance Sheets
Balance sheets before appropriation of profit.
31 December 31
December
2008 2007
(in thousands) EUR EUR
Assets
Property, plant and equipment 6,275 7,508
Intangible assets 9,979 9,856
Investments in associates 174 459
Other investments 100 100
Trade and other receivables 108 230
Deferred tax assets 752 1,046
Total non-current assets 17,388 19,199
Inventories 3,593 3,884
Income tax receivables 468 407
Trade and other receivables 12,868 13,379
Cash and cash equivalents 6,034 5,586
Assets classified as held for 549 -
sale
Total current assets 23,512 23,256
Total assets 40,900 42,455
Equity
Share capital 700 731
Share premium 16,854 16,854
Translation reserves (1,313) (49)
Reserve for own shares (3,218) (1,625)
Retained earnings 7,882 5,932
Total equity attributable to equity holders of
the parent 20,905 21,843
Minority interest 292 344
Total equity 21,197 22,187
Liabilities
Interest-bearing loans and other 628 1,057
borrowings
Employee benefits 100 343
Deferred tax liabilities 437 653
Total non-current liabilities 1,165 2,053
Bank overdrafts 1,675 2,110
Interest-bearing loans and other
borrowings 94 76
Income tax payable 323 54
Trade and other payables 16,054 15,853
Provisions 93 122
Liabilities classified as 299 -
held for sale
Total current liabilities 18,538 18,215
Total liabilities 19,703 20,268
Total equity and liabilities 40,900 42,455
2. Consolidated Income Statements
2008 2007
(in thousands, except earnings per share EUR % EUR %
and average shares outstanding)
Continuing operations
Revenue 78,620 100.0 70,220 100.0
Cost of sales (55,826) (71.0) (52,521) (74.8)
Gross profit 22,794 29.0 17,699 25.2
Other operating income 82 0.1 308 0.4
Selling expenses (5,501) (7.0) (4,230) (6.0)
Administrative expenses (11,699) (14.9) (9,847) (14.0)
Other operating expenses (259) (0.3) (191) (0.3)
Operating profit before financing result 5,417 6.9 3,739 5.3
Financial income 550 0.7 438 0.6
Financial expenses (1,012) (1.3) (774) (1.1)
Net financing expenses (462) (0.6) (336) (0.5)
Share of profits of associates 58 0.1 270 0.4
Profit before income tax 5,013 6.4 3,673 5.2
Income tax expense (1,337) (1.7) (714) (1.0)
Profit from continuing operations 3,676 4.7 2,959 4.2
Discontinued operation
Profit from discontinued operation (net
of income tax) - - 429 0.6
Profit for the period 3,676 4.7 3,388 4.8
Attributable to:
Equity holders of the parent 3,606 4.6 3,389 4.8
Minority interest 70 0.1 (1) -
Profit for the period 3,676 4.7 3,388 4.8
Weighted average number of shares
outstanding 6,668,000 7,050,000
Weighted average number of shares
(diluted) 6,921,000 7,223,000
Earnings per share
Basic earnings per share 0.55 0.48
Diluted earnings per share 0.53 0.47
Continuing operations
Basic earnings per share 0.55 0.42
Diluted earnings per share 0.53 0.41
3. Consolidated Statements of Cash Flows
2008 2007
(in thousands) EUR EUR
Cash flows from operating activities
Profit for the year 3,676 3,388
Adjustments for:
Depreciation and amortisation 3,749 3,625
Costs share options and delivered shares 244 179
Financial expenses 1,012 774
Financial income (550) (438)
Share of profits of associates (58) (270)
Income tax expense 1,337 714
Other - (1)
Cash flows from operating activities before
changes in working capital and provisions 9,410 7,971
Decrease in trade and other receivables and
assets held for sale 642 5,499
Decrease / increase in inventories 158 (119)
Decrease in trade and other payables and
liabilities held for sale (3) (1,345)
Decrease / increase in provisions and employee
benefits (272) 121
Cash generated from the operations 9,935 12,127
Interest paid (714) (598)
Interest received 541 435
Income taxes paid (846) (3,649)
Net cash from operating activities 8,916 8,315
Cash flows from investing activities
Acquisition of property, plant and equipment (2,156) (2,426)
Acquisition of subsidiaries (1,353) (2,234)
Acquisition of intangible assets (985) (781)
Acquisition / divestment of associates and
other investments (49) -
Proceeds from sale of property, plant and
equipment 28 32
Net cash from investing activities (4,515) (5,409)
Cash flows from financing activities
Own shares bought (1,916) (1,994)
Dividends paid (1,890) (1,444)
Repayment of interest-bearing loans and other
borrowings (117) (337)
Proceeds from bank overdrafts 25 412
Proceeds from exercise of share options 48 129
Proceeds from interest-bearing loans and other
borrowings 110 -
Net cash from financing activities (3,740) (3,234)
Net (decrease) increase in cash and cash
equivalents 661 (328)
Cash and cash equivalents at the beginning of
the period 5,586 5,831
Effect of exchange rate fluctuations on cash
held (213) 83
Cash and cash equivalents at the end of the
period 6,034 5,586
4. Consolidated Statements of Shareholders' Equity
Total equity
attributable
Ret- to equity
ained holders of
Share Share Res- earn- the parent Minority Total
capital premium erves ings interest equity
(in EUR EUR EUR EUR EUR EUR EUR
thousands)
Equity
Statement
2007
Balance at 1
January 2007 731 16,854 625 3,978 22,188 226 22,414
Dividend
distribution - - - (1,435) (1,435) (9) (1,444)
Shares bought - - (1,994) - (1,994) - (1,994)
Exercised
share options - - 129 - 129 - 129
Delivered
shares for
remuneration - - 92 - 92 - 92
Costs share
options - - 87 - 87 - 87
Translation
difference - - (613) - (613) - (613)
Consolidation
of former
associate - - - - - 128 128
Profit for
the period - - - 3,389 3,389 (1) 3,388
Balance at
December
2007 31 731 16,854 (1,674) 5,932 21,843 344 22,187
Equity
Statement
2008
Balance at 1
January 2008 731 16,854 (1,674) 5,932 21,843 344 22,187
Dividend
distribution - - - (1,656) (1,656) (234) (1,890)
Cancellation
of own shares (31) - 31 - - - -
Shares bought - - (1,916) - (1,916) - (1,916)
Exercised
share options - - 48 - 48 - 48
Delivered
shares for
remuneration - - 135 - 135 - 135
Costs share
options - - 109 - 109 - 109
Translation
difference - - (1,264) - (1,264) - (1,264)
Consolidation
of former
associate - - - - - 112 112
Profit for
the period - - - 3,606 3,606 70 3,676
Balance at 31
December 2008 700 16,854 (4,531) 7,882 20,905 292 21,197
5. Notes to the Consolidated Financial Statements
5.1 Accounting principles
The consolidated financial statements of DOCDATA N.V. (referred to as
"DOCDATA" or the "Company") are prepared in accordance with the International
Financial Reporting Standards as adopted by the European Union ("IFRS"). For
a summary of the significant accounting policies under IFRS, please refer to
the Company's Annual Report for the financial year ended 31 December 2007.
5.2 Management representations
In the opinion of the management, these financial statements include all
adjustments necessary for a fair presentation of the financial position,
operating results and cash flows of all reporting periods herein. All such
adjustments are of a normal recurring nature.
5.3 Organisation structure and segmentation
From 1 January 2008 onwards, DOCDATA has changed the organisation
structure from a country organisation to a divisional structure. Starting the
financial year 2008, DOCDATA identifies for the purpose of preparing
financial statements the following two segments: Internet service company
docdata (consisting of the following four divisions: docdata commerce,
docdata payments, docdata fulfilment and docdata media) and Technology
company IAI. The segmentation for the comparable financial statements for the
year ended 31 December 2007 has been adjusted accordingly.
5.4 Consolidation
In the consolidated financial statements for the year ended 31 December
2008, the following treatment has been applied for the acquisitions and
divestment mentioned:
- Pegasus e-Business GmbH: DOCDATA has increased its share interest in
Pegasus e-Business GmbH in Munster (Germany; formerly named 'Pegasus
Dienstleistungen GmbH') from 30% to 70%, through the exercise of the call
option on 40% of the issued share capital which was part of the original sale
and purchase agreement from September 2006. The balance sheet and income
statement of Pegasus e-Business GmbH has been included in the DOCDATA
consolidation starting 1 January 2008;
- docdata commerce Limited (formerly named 'Hitura Limited'): DOCDATA has
acquired an interest of 61.2% in the issued share capital of Hitura Ltd. in
London (England), with an agreement on the purchase of the remaining minority
shares between 2008 and 2013. The balance sheet and income statement of
Hitura Ltd. have been included in the DOCDATA consolidation starting 1
February 2008. On 2 July 2008, DOCDATA has acquired an additional 9.7%
interest in the issued share capital of docdata commerce Ltd., bringing the
total DOCDATA share to 70.9% as of that date.
- 4D upgrade GmbH: on 20 November 2008, DOCDATA has sold its share
interest of 85.0% in the issued share capital of 4D upgrade GmbH in
Grossbeeren (Germany) to the (third-party) minority shareholders, with 30
November 2008 as effective transaction date for the transfer of the share
ownership. Therefore, the balance sheet at 31 December 2008 of 4D upgrade
GmbH has not been included in the consolidated balance sheet at 31 December
2008, and the revenues and results of 4D upgrade GmbH are included in the
2008 consolidated income statement of DOCDATA for the 11-months' period from
1 January 2008 till 30 November 2008.
In the consolidated financial statements for the year ended 31 December
2007, the following acquisitions have been consolidated as of the acquisition
date mentioned:
- docdata payments B.V. (formerly named 'Triple Deal B.V.') as of 25 May
2007 (70% share interest). The 2007 consolidated income statement includes
revenue and results of this subsidiary as of acquisition date. The minority
interest of 30% in the equity of this subsidiary, which minority interest is
owned by Conclusion Consultants B.V. for 20% and by Syllion B.V. for 10%, has
been accounted for in the consolidated balance sheet under minority interest
within total equity;
- Contributie Services B.V. as of 28 December 2007 (100% share interest
of docdata payments B.V., at the time named 'Triple Deal B.V.'; indirect
holding of 70% by DOCDATA N.V.), which share interest has been acquired from
Conclusion B.V. The revenue and results of this subsidiary have been included
into the DOCDATA consolidation starting 1 January 2008. The balance sheet at
31 December 2007 of Contributie Services B.V. has been included in the
consolidated balance sheet at 31 December 2007.
5.5 Discontinued operation
In the consolidated financial statements for year ended 31 December 2007,
the assets, liabilities and activities of Optical Disc de France S.A.S.,
(DOCdata France) formerly part of the Media Group (currently a division of
the Internet service company Docdata), were accounted for as discontinued
operation. In the 2007 consolidated income statement, the results after
income tax of DOCdata France have been reported under profit/(loss) from
discontinued operation (net of income tax).
In the consolidated balance sheet at 31 December 2007, a provision for
remaining risks related to the termination of the French activities was
accounted for under current liabilities (EUR 87 thousand). This provision has
been fully used in 2008 for required and expected final payment of remaining
liabilities. No further expenses have been accounted for in the 2008 income
statement, and neither have any new accruals or provisions been accounted for
in the balance sheet at 31 December 2008.
5.6 Property, plant and equipment
31 December 31 December
2008 2007
(in thousands) EUR EUR
Land and buildings 1,449 1,552
Machinery and equipment 2,929 3,725
Other 1,855 1,896
6,233 7,173
Under construction 42 335
Total 6,275 7,508
The book value for property, plant and equipment has decreased with EUR
1.2 million in 2008 as a combined result from depreciation charges for EUR
2.9 million, currency exchange losses for EUR 0.3 million on the UK property,
plant and equipment accounted for in British pounds, capital expenditure for
EUR 2.4 million (inclusive of EUR 0.3 million for property, plant and
equipment acquired through new subsidiaries) and an elimination of EUR 0.4
million for the book value at 31 December 2008 of the property, plant and
equipment of docdata media Ltd.; as a result of the sales process of docdata
media Ltd., the eliminated property, plant and equipment have been accounted
for as assets classified as held for sale in the consolidated balance sheet
as at 31 December 2008.
5.7 Intangible assets
31 December 31 December
2008 2007
(in thousands) EUR EUR
Goodwill 6,562 6,212
Customer contracts 627 899
IT platforms 2,790 2,605
9,979 9,716
Under construction - 140
Total 9,979 9,856
The book value for intangible assets has increased with EUR 0.1 million
in 2008, due to the following:
- goodwill paid (EUR 1.5 million) for the acquisitions of the majority
share in Pegasus e-Business GmbH and Hitura Limited, as well as for
the acquisition of an additional 20% share interest in docdata
commerce B.V.;
- amortisation charges for customer contracts and IT platforms (EUR 0.9
million in total);
- fair value adjustment of the put option agreement regarding the 14.4%
share interest in Braywood Holdings Ltd. owned by the two other
(third-party) shareholders (EUR 0.3 million);
- currency exchange losses (EUR 1.2 million) on the valuation of the
intangible assets with an original value in British pounds (i.e.
related to the Braywood and Hitura acquisitions).
5.8 Investments in associates
The book value for investments in associates has decreased with EUR 0.3
million in 2008, predominantly as a result from the consolidation of Pegasus
e-Business GmbH starting 1 January 2008. In the consolidated balance sheet at
31 December 2007 the DOCDATA share interest of 30% at that time in Pegasus
was valued at cost of EUR 0.3 million under investments in associates.
5.9 Post balance sheet event
In the period from 31 December 2008 till date, 19 February 2009, the
following post balance sheet event has occurred which will have an effect on
the DOCDATA consolidation in 2009 onwards:
- docdata media Ltd.: on 30 January 2009 docdata media Ltd., a part of
the docdata media division, has sold its complete business activities for CD
and DVD replication and Audio Cassette manufacturing to Sound Performance
Manufacturing Ltd., a subsidiary of the UK based Sound Performance Ltd. This
transaction includes the sale by docdata media Ltd. as per the transaction
date of 30th of January 2009 of its business activities, tangible fixed
assets, stocks, customer contracts, trade creditors, personnel and staff. The
assets and liabilities part of this transaction have been accounted for at
the lower of book value or net realisable value and have been recorded under
assets classified as held for sale and liabilities classified as held for
sale in the consolidated balance sheet at 31 December 2008.
Further information: DOCDATA N.V., M.F.P.M. Alting von Geusau, CEO, Tel. +31-416-631-100
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information. All information should be checked prior to publication.DOCDATA NV : DOCDATA N.V. Announces its 2008 Year-end Results
February 19, 2009 at 01:36 am EST
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