Excellent 2010 Half-year Results for DOCDATA N.V.
By Docdata N.v., PRNEWednesday, July 21, 2010
Revenue Growth of More Than 30%
WAALWIJK, The Netherlands, July 22, 2010 - DOCDATA N.V. has made a flying start in the first half-year 2010. Both
lines of business, technology company IAI industrial systems and e-commerce
service company Docdata show excellent results.
Technology company IAI industrial systems was able to deliver all orders
as planned in the first half 2010. In addition, the organisation has expanded
and is prepared for further growth.
The revenue and number of processed transactions of the e-commerce
service company Docdata increased substantially in the first half 2010. This
is due to the success of our customers in the Netherlands and Germany and the
acquisition of the business activities of the former Dohmen Solutions Group
in Germany.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "Despite the current
economic crisis we had to have all hands on deck in the first six month to
realise the growth, resulting in the expansion of our work force with almost
300 employees to a large extent in Germany. This had an extreme impact on our
organisation and resulted in additional costs. The priority however remains
focused on a very high delivery performance for our customers."
Half-year Half-year
ended
30 June 2010 ended
Revenue 30 June 2009 Growth
(in thousands, except percentage EUR EUR %
figures)
Technology company IAI industrial 10,323 4,187 + 147%
systems
E-commerce service company Docdata 26,362 22,082 + 19%
(excluding Docdata media and former
Dohmen Solutions)
Docdata media 5,610 8,627 -/- 35%
Acquisition former Dohmen Solutions 3,694 - -
Total 45,989 34,896 + 32%
Results and Financial position half-year 2009 (unaudited)
Half-year ended at
(in millions, except percentage 30 June 2010 30 June 2009
figures and per share data)
EUR % EUR %
Revenue
E-commerce service company Docdata 35.7 77.6 30.7 88.0
Technology company IAI industrial 10.3 22.4 4.2 12.0
systems
Total 46.0 100.0 34.9 100.0
Gross profit
E-commerce service company Docdata 8.6 24.0 8.9 28.8
Technology company IAI industrial 4.1 40.0 1.9 45.5
systems
Total 12.7 27.6 10.8 30.8
Operating profit (EBIT)
E-commerce service company Docdata 0.4 1.0 1.5 4.9
Technology company IAI industrial 2.8 27.2 0.9 21.0
systems
Total 3.2 6.9 2.4 6.8
Profit for the half-year 2.6 5.6 1.9 5.4
Basic earnings per share 0.38 0.28
Diluted earnings per share 0.37 0.27
Balance sheet total 50.2 39.1
Equity 26.6 21.7
Solvency ratio (Equity / Balance 53.0% 55.6%
sheet total)
Technology company IAI industrial systems delivered many personalisation
systems in the first half-year 2010. As a result the revenue of IAI
industrial systems increased with EUR 6.1 million (+147%). The operating
result for the first half-year 2010 is exceptionally high due to several
specific orders. Per end of June 2010 the order book included orders for a
revenue of EUR 8.6 million which will be delivered for a large part in 2010
(end 2009: EUR 13.8 million). The pipeline is well filled and the company is
working hard to convert this pipeline into orders.
In the document security market IAI industrial systems is seen as the
highest quality supplier of production systems to personalise and/or secure
documents issued by governments. IAI has expanded the product range
considerably in the document security market through the development of new
systems in the past years.
In the Solar market IAI offers systems for the production of solar cells
or solar panels. In 2010 IAI delivered several 'lab'-systems and further
increased its reputation in the market. To realise unique applications in
solar cells, IAI has invested in an excimer laser which will be used for
application oriented research. This laser will also be used for application
development in other markets. Due to the current economic crisis we expect to
deliver production systems not before 2011.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "We remain ideally
positioned in the document security market because of our high quality,
reliable and customised systems. This also gives us the possibility to
compete with the major players in the market. We expect that governments
world-wide will continue to give a high priority to investments in document
security. We will continue to invest in new applications and systems."
E-commerce service company Docdata again achieved a strong increase in
the number of unique transactions compared to 2009. In the first half 2010
nearly 13 million unique transactions have been processed. The strong revenue
growth was mainly achieved by the success of existing clients and the
acquisition of the business activities of the former Dohmen Solutions Group.
As these activities have been acquired for a relatively small amount from
Dohmen Solutions which was in suspension, this does result in restructuring
costs fully charged to the operating result of Docdata. As a result of the
acquisition one-off costs of EUR 1.3 million have been recognised in the
first half-year 2010. For the second half-year 2010 we expect to incur a
comparable amount of costs. These substantial one-off costs in combination
with the relatively low acquisition price, make it an interesting deal
compared to the acquired customer base.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "Thanks to the
acquisition of the activities of Dohmen Solutions we have further
strengthened our position in Germany and have taken a top 10 position in the
e-commerce service market. Through five sites spread across Germany we can
now provide our customers a full e-commerce service."
Major features of the first half-year 2010
The revenue of DOCDATA N.V. increased with EUR 11.1 million to EUR 46.0
million (+32%) in the first half-year 2010. IAI industrial systems has
realised an increase in revenue of EUR 6.1 million (+147%). Docdata has
realised with the commerce, payments and fulfilment services an autonomous
revenue increase of EUR 4.3 million (+19%), predominantly due to the
increased number of transactions of more than 27% compared to last year. The
acquisition of the activities of the former Dohmen Solutions Group
contributed to revenue for EUR 3.7 million in the first half-year 2010 as
from 16 April 2010. Finally, Docdata media incurred a decrease in revenue of
EUR 3.0 million (-/- 35%) due to the further decline of replication
activities.
In the first half-year 2010 a higher gross profit of EUR 12.7 million has
been realised compared to the EUR 10.8 million in the first half-year 2009
(+18%). The gross profit margin for the first half-year 2010 is 27.6%
compared to 30.8% in the first half-year 2009, with a decrease of the gross
profit margin for both lines of business. For Docdata this lower gross profit
margin is mainly the result of lower realised efficiency due to the
tremendous growth of some or our largest customers in the Netherlands and
Germany. For IAI industrial systems the decrease of the gross profit margin
is due to different size and composition of deliveries in both comparable
periods, taking into account that in the first half-year 2009 almost no
deliveries were realised.
In the first half-year 2010 an operating result before financing result
(EBIT) of EUR 3.2 million has been realised compared to EUR 2.4 million in
the first half-year 2009.
The operating result of the technology company IAI industrial systems
increased with EUR 1.9 million as a result of the delivery of more systems in
the first half-year 2010.
The operating result of the e-commerce service company Docdata decreased
with EUR 1.1 million due to several one-off effects:
- acquisition- and consultancy costs, start-up losses and restructuring
costs after acquisition of the business activities of the former Dohmen
Solutions Group (impact: approximately EUR 1.3 million);
- significant higher organisation costs to realise the strong growth of
some large customers in the Netherlands and Germany.
As a result of the improved operating result of both lines of business
together, the profit for the first half-year 2010 amounts to EUR 2.6 million
which is EUR 0.7 million (+36%) higher compared to the first half-year 2009.
DOCDATA N.V. has maintained its strong financial position during the
first half-year 2010 with a solvency ratio of 53.0% per 30 June 2010 (31
December 2009: 55.9%). In relation to the Company's liquidity, the cash
surplus position of EUR 6.1 million at 31 December 2009 has decreased with
EUR 2.8 million to EUR 3.3 million at 30 June 2010. DOCDATA N.V. has realised
in the first half-year 2010 a cash flow from operating activities of EUR 5.4
million (first half-year 2009: EUR 0.2 million), which is influenced to a
large extent by cash flows generated from the delivery in February 2010 of
the second part of the Bulgarian order by IAI industrial systems B.V. and the
receipt of an income tax receivable by the Dutch fiscal entity. Furthermore,
DOCDATA N.V. has drawn EUR 4.4 million from the existing credit facility with
Dresdner Bank AG (now part of Commerzbank AG) to finance the following:
- the acquisition of the assets and business activities of the former
Dohmen Solutions Group in Germany (purchase price: EUR 2.0 million);
- the working capital of the new legal entities in Germany, which
acquired the assets and business activities of the former Dohmen
Solutions Group (including the restructuring costs after acquisition of
these activities);
- the investments in the warehousing (among others installations and
racking) of our fulfilment centers in the Netherlands and Germany.
Of these total available funds of EUR 9.8 million, EUR 3.7 million was
spent on the payment of the 2009 dividend. In addition, the Group has
invested a total amount of EUR 4.5 million in the half-year ended 2010: EUR
3.2 million in property, plant and equipment (mainly warehousing equipment
and investments in IT infrastructure) and EUR 1.3 million in intangibles
(predominantly IT platform and customer contracts from the former Dohmen
Solutions Group). The remaining EUR 1.6 million has resulted in higher cash
and cash equivalents per 30 June 2010.
Outlook
As already announced in February 2010, the focus of DOCDATA N.V. for 2010
is on growth, both autonomous and through acquisitions. The first half-year
2010 has proven that both lines of business of the Company in terms of
achieving autonomous growth are fully on track. With the acquisition of the
assets and business activities of the former Dohmen Solutions Group in
Germany the target to achieve a top 10 position in Germany has already been
realised. For the second half-year 2010 the focus will be on realisation of
further autonomous profitable growth and process optimisation.
In the market for document security, technology company IAI industrial
systems has realised outstanding results in the first half-year 2010. The
focus for the second half-year 2010 will be on further development of new
systems for the various markets in which IAI operates and on bringing in new
orders for 2011. In the Solar market we do not expect substantial revenue for
IAI industrial systems in the second half-year 2010. IAI industrial systems'
order book amounts to EUR 8.6 million at 30 June 2010 and will be delivered
mainly in 2010.
The management of DOCDATA N.V. expects that the operating result for the
full-year 2010 will be lower than that for the full-year 2009, due to one-off
costs related to the acquisition of the business activities of the former
Dohmen Solutions Group.
Accounting policies
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 2009 Annual Report that
is available at the Company and can also be downloaded from the Company's
corporate website, www.docdatanv.com. The interim financial report has
been prepared in accordance with IAS 34 ('Interim Financial Reporting').
Audit
The financial information included in this interim report and its
enclosures have not been audited by the external auditors.
Enclosure with financial information
For a detailed review of the 2010 half-year results please refer to the
attached enclosure 'Interim Financial Information for the half-year ended 30
June 2010' with Appendix.
Meeting for financial press and analysts
Today, Thursday 22 July 2010, management of DOCDATA N.V. will discuss the
2010 half-year 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).
——————————————
The listed DOCDATA N.V. exists of two lines of business:
Technology company IAI industrial systems
(www.iai-industrial-systems.com) 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 solar cells and modules
- processing of other materials and products
E-commerce service company Docdata (www.docdata.com) is a European
market leader with a strong basis in The Netherlands, Germany and the United
Kingdom, and exists of four services:
- Docdata commerce
- Docdata payments
- Docdata fulfilment
- Docdata media
Responsibility Statement
Statement pursuant to article 5:25d section 2 sub c of the Dutch
Financial Supervision Act ("Wet financieel toezicht", Wft)
The DOCDATA N.V. Management Board declares, that to the best of their
knowledge:
1. the interim financial statements of DOCDATA N.V., as set out on pages
8 to 18 of this report, give a true and fair view of the assets, the
liabilities and the financial position as at 30 June 2010 and the profit for
the half-year ended 30 June 2010 of DOCDATA N.V. and its consolidated
subsidiaries;
2. the interim report of DOCDATA N.V., as set out on pages 1 to 6 of this
report, includes a true and fair review of the position as per 30 June 2009
and of the development and performance during the half-year ended 30 June
2009 of DOCDATA N.V. and the associated companies, of which the information
is included in the interim financial statements. In addition, the interim
report gives a true and fair review of the expected developments, investments
and circumstances of which the development of revenue and profitability
depend.
Waalwijk, 22 July 2010
The Management Board,
M.F.P.M. Alting von Geusau, CEO
M.E.T. Verstraeten, CFO
Interim Financial Information
The interim financial information is prepared in accordance with
International Financial Reporting Standards as adopted by the European Union
(hereafter "IFRS") and its interpretations adopted by the International
Accounting Standards Board (IASB).
Revenue
(in thousands, except percentage Half-year ended Half-year ended
figures)
30 June 2010 30 June 2009
Revenue by line of business EUR % EUR %
E-commerce service company Docdata 35,666 77.6 30,709 88.0
Technology company IAI industrial 10,323 22.4 4,187 12.0
systems
Total 45,989 100.0 34,896 100.0
- Total revenue of the Docdata commerce, payments and fulfilment services
increased with EUR 8.0 million (36.1%), including a positive foreign
exchange effect of EUR 0.2 million. This revenue increased as a result
of autonomous growth (EUR 4.1 million, including the positive exchange
effect of EUR 0.2 million) and the acquisition of the activities of the
former Dohmen Solutions Group in Germany (EUR 3.7 million). These
acquired activities contribute to revenue as from 16 April 2010. The
revenue of the Docdata media service decreased further with EUR 3.0
million (35%) due to declining revenue from replication activities in
Tilburg and Berlin.
- IAI industrial systems' revenue increased EUR 6.1 million (146.5%) in
the half-year ended 30 June 2010 compared to the half-year ended 30
June 2009. This increase in revenue is mainly the result of the
systems' delivery of the second and last part of the Bulgarian order
consisting of decentralised personalisation systems.
Gross profit
(in thousands, except percentage Half-year ended 30 Half-year
figures) June 2010 ended
30 June 2009
Gross profit (margin) by line of
business
(margin as % of revenue by line of
business) EUR % EUR %
E-commerce service company Docdata 8,563 24.0 8,854 28.8
Technology company IAI industrial 4,126 40.0 1,903 45.5
systems
Total 12,689 27.6 10,757 30.8
- The gross profit of Docdata decreased with EUR 0.3 million (-3.3%) in
the half-year ended 30 June 2010 compared to the half-year ended 30
June 2009. The combined gross profit of the Docdata commerce, payments
and fulfilment services contributed EUR 7.6 million in the half-year
ended 30 June 2010 compared to EUR 7.2 million in the half-year ended
30 June 2009. This is mainly the result of the growth in the number of
transaction in the Netherlands and Germany. The acquired activities
from the former Dohmen Solutions Group had a gross profit of about
zero. The Docdata media service contributed EUR 1.0 million to the
gross profit in the first half-year ended 30 June 2010 compared to EUR
1.7 million in the first half-year ended 30 June 2009.
- The gross profit of IAI industrial systems increased with EUR 2.2
million (117%) mainly due to the systems' delivery of the second and
last part of the Bulgarian order.
Operating profit before financing result (EBIT)
Selling & Administrative expenses
Other operating income and expenses
(in thousands, except percentage Half-year ended Half-year ended
figures)
30 June 2010 30 June 2009
Operating profit (margin) by line of
business
(margin as % of revenue by line of
business) EUR % EUR %
E-commerce service company Docdata 352 1.0 1,496 4.9
Technology company IAI industrial 2,807 27.2 881 21.0
systems
Total 3,159 6.9 2,377 6.8
Selling & Administrative expenses (as %
of revenue)
Selling expenses 2,681 5.8 2,314 6.6
Administrative expenses 6,876 15.0 5,897 16.9
Total 9,557 20.8 8,211 23.5
Selling & Administrative expenses by
line of business (as % of revenue by
line of business)
E-commerce service company Docdata 8,219 23.0 7,189 23.4
Technology company IAI industrial 1,338 13.0 1,022 24.4
systems
Total 9,557 20.8 8,211 23.5
Other operating income and expenses
(as % of revenue)
Other operating income 265 0.6 53 0.1
Other operating expenses (238) (0.5) (222) (0.6)
Net other operating expenses 27 0.1 (169) (0.5)
- The operating profit of the e-commerce service company Docdata
decreased with EUR 1.1 million in the half-year ended 30 June 2010
compared to the half-year ended 30 June 2009. The operating profit of
the Docdata commerce, payments and fulfilment services decreased with
EUR 1.2 million, which decrease is mainly the result of substantial
restructuring costs and start-up losses following the acquisition of
the activities from the former Dohmen Solutions Group. The total effect
on EBIT amounts to a loss of EUR 1.3 million in the first half-year
ended 30 June 2010. These expenses are essential in order to reduce the
cost base of the acquired activities, and are recognised both under
selling and administrative expenses. The restructuring of the acquired
activities will continue in the second half-year 2010 with the
expectation that these activities will only add to the profit of
Docdata in the year 2011. The operating profit of Docdata media service
is EUR 0.1 million in the half-year ended 30 June 2010, which is in
line with the operating profit in the half-year ended 30 June 2009.
- The operating profit of IAI industrial systems increased with EUR 1.9
million in the first half-year 2010 compared to the first half-year
2009. This increase is the combined effect of a higher gross profit of
EUR 2.2 million and increased selling and administrative expenses of
EUR 0.3 million. Gross profit increased in the first half-year 2010 due
to the delivery of a higher number of security systems, mainly to
Bulgaria. The selling and administrative expenses increased in the
first half-year 2010 as a result of higher organisation costs due to
the expansion of the number employees.
Net financing income
Net financing income for the half-year ended 30 June 2010 amounted to
just over EUR 0.1 million compared to net financing expenses of nearly EUR
0.2 million for the half-year ended 30 June 2009. Net bank interest expenses,
as well as foreign currency exchange results are comparable for both
half-years ended 30 June 2010 and 30 June 2009.
Income tax expense
DOCDATA's effective tax rate in the half-year ended 30 June 2010 was
22.3% with an income tax expense of EUR 0.7 million on a profit before income
tax of EUR 3.3 million. In the half-year ended 30 June 2009, the profit
before income tax amounted to EUR 2.6 million and the income tax expense
amounted to EUR 0.7 million (effective tax rate: 27.7%).
The income tax expense of EUR 0.7 million in the half-year ended 30 June
2010 is the combined result of the following tax treatments of the results
per country:
- In the Netherlands, income taxes are 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
(2009: 25.5%).
- In the United Kingdom, income taxes are recorded against a corporate
income tax rate of 28.0% (2009: 28.0%).
- In Germany, income taxes are recorded at a corporate income tax rate of
in general between 30% and around 32.5% on taxable income for the
German entities when and where applicable, depending on the actual
region in Germany of their legal seat (e.g. Berlin, Munich or Münster
region).
Liquidity and capital resources
The General Annual Meeting of Shareholders held on 12 May 2010 approved
the proposal to distribute a dividend of EUR 0.55 per ordinary share
outstanding (excluding own shares held by the Company), which had a
decreasing impact of EUR 3.7 million on retained earnings within the equity
of the Company in the half-year ended 30 June 2010.
In the half-year ended 30 June 2010, the Group realised net cash from
operating activities of EUR 5.4 million (half-year ended 30 June 2009: EUR
0.2 million). Major items resulting in this high net cash from operating
activities were the delivery by IAI industrial systems B.V. in February 2010
of the remaining part of the Bulgarian order, as well as the repayment by the
Dutch tax authorities of EUR 1.3 million prepaid income taxes for the year
2009 due to the recording by the Dutch fiscal entity of an income tax credit
on the liquidation loss for docdata media Ltd. in the UK.
Furthermore, the Group has drawn EUR 4.4 million from the credit facility
with Dresdner Bank AG (now part of Commerzbank AG) in the half-year ended 30
June 2010 to finance the following:
- the acquisition (total purchase price of the assets
acquired: EUR 2.0 million) and post-transaction working capital and
restructuring of the activities of the former Dohmen Solutions Group.
- the investments in warehousing in the Netherlands and Germany.
Of these total available funds of EUR 9.8 million, EUR 3.7 million was
spent on the payment of the 2009 dividend. In addition, the Group has
invested a total amount of EUR 4.5 million in the half-year ended 30 June
2010: EUR 3.2 million in property, plant and equipment (mainly warehousing
equipment and investments in IT infrastructure) and EUR 1.3 million in
intangibles (predominantly the IT platform and the customer contracts from
the former Dohmen Solutions Group, as well as some IT development costs). The
remaining EUR 1.6 million has resulted in higher cash and cash equivalents
per 30 June 2010.
In the half-year ended 30 June 2010 1,500 share options were exercised
from the 2006 series at a price of EUR 8.10 per share. The underlying shares
have been delivered by the Company from the own shares in possession of the
Company. The proceeds of EUR 13 thousand have been credited to equity under
reserves, as the purchase of own shares has been charged to reserves in the
past. Per 30 June 2010, the Company owned 349,982 own shares (5.00%), which
number is the same as the number of own shares currently owned by the Company
per 22 July 2010.
Waalwijk, 22 July 2010
Consolidated Interim Financial Statements
1. Consolidated Balance Sheets
Balance sheets before appropriation of profit.
30 June 31 December
2010 2009
(in thousands) EUR EUR
Assets
Property, plant and equipment 8,394 6,221
Intangible assets 9,812 8,633
Investments in associates 62 62
Other investments 100 100
Trade and other receivables 200 200
Deferred tax assets 801 1,130
Total non-current assets 19,369 16,346
Inventories 5,542 6,861
Income tax receivables 1,578 3,038
Trade and other receivables 15,340 15,566
Cash and cash equivalents 7,724 6,147
Assets classified as held for 662 1,054
sale
Total current assets 30,846 32,666
Total assets 50,215 49,012
Equity
Share capital 700 700
Share premium 16,854 16,854
Translation reserves (517) (1,030)
Reserve for own shares (2,854) (2,940)
Retained earnings 12,454 13,720
Total equity attributable to equity holders of 26,637 27,304
the parent
Minority interest - 107
Total equity 26,637 27,411
Liabilities
Interest-bearing loans and other 313 313
borrowings
Deferred tax liabilities 284 288
Total non-current liabilities 597 601
Bank overdrafts 4,400 -
Income tax payable 451 340
Trade and other payables 16,849 18,668
Provisions 602 1,039
Liabilities classified as 679 953
held for sale
Total current liabilities 22,981 21,000
Total liabilities 23,578 21,601
Total equity and liabilities 50,215 49,012
2. Consolidated Income Statements
Half-year ended Half-year ended
30 June 2010 30 June 2009
(in thousands, except earnings per share EUR % EUR %
and average shares outstanding)
Revenue 45,989 100.0 34,896 100.0
Cost of sales (33,300) (72.4) (24,139) (69.2)
Gross profit 12,689 27.6 10,757 30.8
Other operating income 265 0.6 53 0.1
Selling expenses (2,681) (5.8) (2,314) (6.6)
Administrative expenses (6,876) (15.0) (5,897) (16.9)
Other operating expenses (238) (0.5) (222) (0.6)
Operating profit before financing result 3,159 6.9 2,377 6.8
Financial income 240 0.5 278 0.8
Financial expenses (110) (0.2) (97) (0.3)
Net financing income 130 0.3 181 0.5
Share of profits of associates - - 36 0.1
Profit before income tax 3,289 7.2 2,594 7.4
Income tax expense (734) (1.6) (718) (2.0)
Profit for the period 2,555 5.6 1,876 5.4
Attributable to:
Equity holders of the parent 2,662 5.8 1,838 5.3
Minority interest (107) (0.2) 38 0.1
Profit for the period 2,555 5.6 1,876 5.4
Weighted average number of shares 6,649,000 6,649,000
outstanding
Weighted average number of shares 7,000,000 6,962,000
(diluted)
Earnings per share
Basic earnings per share 0.38 0.28
Diluted earnings per share 0.37 0.27
3. Consolidated Statements of Cash Flows
Half-year Half-year
ended ended
30 June 2010 30 June 2009
(in thousands) EUR EUR
Cash flows from operating activities
Profit for the period 2,555 1,876
Adjustments for:
Depreciation and amortisation 1,490 1,622
Costs share options and delivered shares 73 94
Financial expenses 110 97
Financial income (240) (278)
Share of profits of associates - (36)
Income tax expense 734 718
Cash flows from operating activities before
changes in working capital and provisions 4,722 4,093
(Increase) / decrease in trade and other
receivables and assets held for sale 777 1,336
(Increase) / decrease in inventories 1,319 (3,563)
Increase / (decrease) in trade and other
payables and liabilities held for sale (2,132) (853)
Increase / (decrease) in provisions and (437) 10
employee benefits
Cash generated from the operations 4,249 1,023
Interest paid (108) (165)
Interest received 81 118
Income taxes received / (paid) 1,199 (769)
Net cash from operating activities 5,421 207
Cash flows from investing activities
Acquisition of property, plant and equipment (3,213) (1,102)
Acquisition of intangible assets (1,299) (57)
Acquisition of subsidiaries - (582)
Acquisition of associates and other - (62)
investments
Proceeds from sale of property, plant and 6 2
equipment
Net cash from investing activities (4,506) (1,801)
Cash flows from financing activities
Proceeds from bank overdrafts 4,400 -
Proceeds from exercise of share options 13 141
Dividends paid (3,658) (2,031)
Repayment of bank overdrafts - (1,185)
Proceeds from interest-bearing loans and - 60
other borrowings
Net cash from financing activities 755 (3,015)
Net increase / (decrease) in cash and cash 1,670 (4,609)
equivalents
Cash and cash equivalents at the beginning of 6,147 6,034
the period
Effect of exchange rate fluctuations on cash (93) 188
held
Cash and cash equivalents at the end of the 7,724 1,613
Period
4. Consolidated Statements of Shareholders' Equity
Total
equity
attrib-
utable Minor
to equity -ity
holders Total
Share Share Retained of the inte-
capital premium earnings parent rest equity
Reserves
(in EUR EUR EUR EUR EUR EUR EUR
thousands)
Equity
Statement
2009
Balance at 1 700 16,854 (4,531) 7,882 20,905 292 21,197
January 2009
Dividend - - - (1,993) (1,993) (38) (2,031)
distribution
Exercised - - 141 - 141 - 141
share options
Delivered - - 37 - 37 - 37
shares for
remuneration
Costs share - - 57 - 57 - 57
options
Consolidation - - - - - (5) (5)
of former
associate
Total
recognised - 1,838
income and - 443 2,281 38 2,319
expense for
the period
Balance at 30 700 16,854 (3,853) 7,727 21,428 287 21,715
June 2009
Balance at 1 700 16,854 (3,853) 7,727 21,428 287 21,715
July 2009
Costs share - - 43 - 43 - 43
options
Total
recognised
income and - - (160) 5,993 5,833 (180) 5,653
expense for
the period
Balance at 31 700 16,854 (3,970) 13,720 27,304 107 27,411
December 2009
Equity
Statement
2010
Balance at 1 700 16,854 (3,970) 13,720 27,304 107 27,411
January 2010
Dividend - - - (3,658) (3,658) - (3,658)
distribution
Exercised - - 13 - 13 - 13
share options
Costs share - - 73 - 73 - 73
options
Realised - - 270 (270) - - -
translation
reserves
Total
recognised
income and - - 243 2,662 2,905 (107) 2,798
expense for
the period
Balance at 30 700 16,854 (3,371) 12,454 26,637 - 26,637
June 2010
5. Consolidated Statements of recognised Income and Expense
Half-year Half-year
2010 2009
(in thousands) EUR EUR
Foreign exchange translation 243 443
differences
Income / (Expense) recognised directly in 243 443
equity
Profit for the period 2,555 1,876
Total recognised income and expense for the 2,798 2,319
period
Attributable to:
Equity holders of the parent 2,905 2,281
Minority interest (107) 38
Total recognised income and expense for the 2,798 2,319
period
6. Notes to the Consolidated Interim Financial Statements
6.1 Reporting entity
DOCDATA N.V. (referred to as "DOCDATA" or the "Company") is a company
domiciled in Waalwijk, the Netherlands. The consolidated interim financial
statements of DOCDATA N.V. as at and for the half-year ended 30 June 2010
comprise DOCDATA N.V. and its subsidiaries (together referred to as the
"Group") and the Group's interest in associates and jointly controlled
entities.
The consolidated financial statements of the Group as at and for the year
ended 31 December 2009 are available upon request from the Company's
registered office at Energieweg 2, 5145 NW in Waalwijk, the Netherlands, or
at the Company's corporate website, www.docdatanv.com.
6.2 Statement of compliance
These consolidated interim financial statements have been prepared in
accordance with IAS 34 (Interim Financial Reporting). They do not include all
of the information required for full annual financial statements, and should
therefore be read in conjunction with the consolidated financial statements
of the Group as at and for the year ended 31 December 2009.
6.3 Significant accounting policies
The consolidated financial statements of the Group are prepared in
accordance with the International Financial Reporting Standards as adopted by
the European Union ("IFRS"). The accounting policies applied by the Group in
these consolidated interim financial statements are the same as those applied
by the Group in its consolidated financial statements as at and for the year
ended 31 December 2009. For a summary of the significant accounting policies
under IFRS, please refer to the Group's Annual Report for the financial year
ended 31 December 2009.
6.4 Audit
The consolidated interim financial statements and the reconciliations
included in this report and its enclosures have not been audited by the
external auditors.
6.5 Management representations
In the opinion of the management, these consolidated interim 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, except for
recorded non-recurring expenses related to the acquisition of the former
Dohmen Solutions business activities (including acquisition costs, advisory
fees, restructuring expenses, etc.).
The results of the operations for the half-year ended 30 June 2010 are
not necessarily indicative of the results for the entire financial year
ending 31 December 2010.
6.6 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 lines of business: Internet service
company Docdata (consisting of the following four services: Docdata commerce,
Docdata payments, Docdata fulfilment and Docdata media) and Technology
company IAI industrial systems. Starting 1 January 2010, the names of the two
lines of business are:
- E-commerce company Docdata;
- Technology company IAI industrial systems.
The segmentation for both comparable consolidated interim financial
statements for the half-year ended 30 June 2009 and the half-year ended 30
June 2010 has been prepared accordingly and in a consistent way.
6.7 Consolidation
In the consolidated interim financial statements for the half-year ended
30 June 2010, the following treatment has been applied for the following
incorporations:
- IAI excimer systems B.V.: per 1 April 2010, IAI industrial systems B.V.
has incorporated a new legal entity for a Dutch subsidiary, IAI excimer
systems B.V. in Veldhoven. The balance sheet and income statement of
IAI excimer systems B.V. have been included in the DOCDATA
consolidation starting per the date of incorporation;
- Docdata Assets GmbH, Docdata e-Commerce Services GmbH, Docdata Fashion
Services GmbH: these three new German subsidiaries, wholly owned by
docdata germany GmbH, have been incorporated (based on new shelf
companies, "Blitz GmbH") to provide the legal structure enabling the
asset purchase of the former Dohmen Solutions activities per 16 April
2010. The balance sheet and income statement of these three GmbH's have
been included in the DOCDATA consolidation starting per this date.
In the consolidated financial statements for the year ended 31 December
2009, the following treatment has been applied for the following
incorporation and acquisition:
- IAI industrial systems GmbH: per 12 January 2009, IAI industrial
systems B.V. has incorporated a new legal entity for its Germany
subsidiary, IAI industrial systems GmbH in Berlin. The balance sheet
and income statement of IAI industrial systems GmbH have been included
in the DOCDATA consolidation starting per the date of incorporation;
- Pegasus Mail GmbH: on 9 January 2009, docdata e-business GmbH has
acquired all issued shares of Pegasus Mail GmbH in Münster (Germany).
This company operates fulfilment services related to print and mail.
The balance sheet and income statement of Pegasus Mail GmbH have been
included in the DOCDATA consolidation starting per the acquisition
date.
6.8 Property, plant and equipment
30 June 31 December
2010 2009
(in thousands) EUR EUR
Land and buildings 1,297 1,347
Machinery and equipment 3,749 2,935
Other 2,254 1,881
7,300 6,163
Under construction 1,094 58
Total 8,394 6,221
The book value of property, plant and equipment has increased with EUR
2.2 million over the half-year ended 30 June 2010 as a combined result from
capital expenditure for EUR 3.2 million, depreciation charges for EUR 1.1
million and currency exchange profits for EUR 0.1 million on the UK property,
plant and equipment accounted for in British pounds. Included in capital
expenditure in the half-year ended 30 June 2010 is the purchase price of in
total EUR 0.2 million paid at acquisition for the equipment bought from the
former Dohmen Solutions Group, and EUR 0.6 million investments by IAI
industrial systems B.V. in buildings and laser production equipment. The
remainder of about EUR 2.4 million relates to investments in the fulfilment
warehouses of the Group and is predominantly spent in Germany for the
warehouses located in the Berlin and Munich regions.
6.9 Intangible assets
30 June 31 December
2009
2010
(in thousands) EUR EUR
Goodwill 6,889 6,626
Customer contracts 1,062 468
IT platforms 1,861 1,539
9,812 8,633
Under construction - -
Total 9,812 8,633
The book value for intangible assets has increased with EUR 1.2 million
during the half-year ended 30 June 2010, due to the following:
- capital expenditure in customer contracts and IT platforms (EUR 1.3
million in total), predominantly for the acquisition of the customer
contracts and the IT-platform from the former Dohmen Solutions Group
(EUR 1.2 million in total at acquisition);
- amortisation charges for customer contracts and IT platforms (EUR 0.4
million in total);
- currency exchange profits (EUR 0.3 million) on the valuation of the
intangible assets with an original value in British pounds (i.e.
related to the Braywood and Hitura acquisitions).
6.10 Inventories
30 June 31 December
2009
2010
(in thousands) EUR EUR
Raw and auxiliary materials 1,190 720
Work in progress 3,951 6,066
Finished goods 401 75
Total 5,542 6,861
The book value of inventories decreased EUR 1.3 million in the half-year
ended 30 June 2009, which is the combined effect of an inventory increase
from the acquisition of the former Dohmen Solutions business activities (EUR
0.5 million) and decreased work in progress at IAI industrial systems (EUR
1.8 million). IAI industrial systems' order book decreased about EUR 5
million from EUR 13.8 million at 31 December 2009 to EUR 8.6 million at 30
June 2010 resulting from system deliveries during the half-year ended 30 June
2010 for a revenue of about EUR 10 million and new orders booked with a total
sales value of about EUR 5 million.
6.11 Segmented Consolidated Income Statement half-year 2010
E-commerce Technology
company IAI
service company industrial
Docdata systems
(in thousands, except earnings per EUR % EUR %
share and average shares outstanding)
Revenue 35,666 100.0 10,323 100.0
Cost of sales (27,103) (76.0) (6,197) (60.0)
Gross profit 8,563 24.0 4,126 40.0
Other operating income 245 0.7 20 0.2
Selling expenses (2,290) (6.4) (391) (3.8)
Administrative expenses (5,929) (16.6) (947) (9.2)
Other operating expenses (237) (0.7) (1) -
Operating profit before financing 352 1.0 2,807 27.2
result
Financial income 207 0.6 33 0.3
Financial expenses (77) (0.2) (33) (0.3)
Net financing income / (expenses) 130 0.4 - -
Share of profits of associates - - - -
Profit before income tax 482 1.4 2,807 27.2
Income tax profit / (expense) 99 0.2 (833) (8.1)
Profit for the period 581 1.6 1,974 19.1
Attributable to:
Equity holders of the parent 688 1.9 1,974 19.1
Minority interest (107) (0.3) - -
Profit for the period 581 1.6 1,974 19.1
Corporate website: www.docdatanv.com
Further information: DOCDATA N.V., M.F.P.M. Alting von Geusau, CEO, Tel. +31-416-631-100
Tags: docdata N.V., July 22, Netherlands, The Netherlands, Waalwijk
