Hectic Year for DOCDATA N.V. Closed With Positive OutcomeBy Docdata N.v., PRNE
Wednesday, February 23, 2011
Milestone Reached: Revenue Grown to EUR 104 Million in 2010
WAALWIJK, The Netherlands, February 24, 2011 - DOCDATA N.V. reached an important milestone in 2010, as the revenue has
exceeded EUR 100 million, primarily driven by strong growth in Germany. The
year 2010 was a hectic year, especially due to the acquisition and
integration of the activities of the former Dohmen Solutions Group and the
extreme growth of one of our e-commerce clients in Germany. These factors had
a temporary negative impact on profit. IAI industrial systems was able to
maintain the high revenue level in 2010 with an excellent profit.
Revenue 2010 2009 Growth (in thousands, except percentages) EUR EUR % Docdata E-commerce services (excl. acquisition) 63,737 46,851 + 36% Acquisition former Dohmen Solutions Group 14,293 - - Docdata E-commerce services 78,030 46,851 + 67% Media replication activities 7,804 16,024 -/- 51% E-commerce service company Docdata 85,834 62,875 + 37% Technology company IAI industrial systems 18,176 17,594 + 3% Total 104,010 80,469 + 29%
Michiel Alting von Geusau, CEO van DOCDATA N.V.: "The markets in which we
operate showed a strong growth in 2010. Within the e-commerce market a large
proportion of our clients performed even better than the market. We are proud
that we contributed to the success of our clients. IAI industrial systems
reached a revenue level that is structurally higher than the average revenue
level of the last five years; we however remain dependent on sometimes
complicated tendering processes."
The E-commerce service company Docdata realised a considerable increase
in the number of transactions handled in 2010. This is both due to the
success of our clients in the Netherlands, including bol.com, De Bijenkorf
and V&D, and the success of our clients in Germany, including
brands4friends.de and Zalando.de. As a consequence, revenue of the E-commerce
service company grew with 37%.
Technology company IAI industrial systems realised a record revenue of
EUR 18.2 million in 2010. In addition, IAI invested further in the
organisation and development of innovative production systems for the various
markets in which IAI is active. The focus in 2010 was in particular on the
development and improvement of applications in production systems.
The permanent staff of the Group increased considerably from 593
employees (570 FTE) at the beginning of the year to 813 employees (759 FTE)
at the end of the year. Also in 2010 the management structures within the
Group have been strengthened. This was necessary to enable the growth and
create a new basis for further growth.
E-commerce service company Docdata again achieved a considerable increase
of the number of transactions; in 2010 almost 30 million unique transactions
have been processed compared to about 20 million in 2009 (increase 36%). The
combined revenue of the e-commerce services (consisting of commerce,
fulfilment and payment activities) grew autonomously with almost EUR 17
million (+ 36%); furthermore the revenue increased with another EUR 14
million as a result of the acquisition of the activities of the former Dohmen
Solutions Group in April 2010. The total revenue of the E-commerce service
company Docdata increased with 37% to almost EUR 86 million.
The e-commerce market in Europe increased approximately 18% in 2010. For
2011 a similar growth is expected resulting in a European e-commerce market
that exceeds the market in the United States. Within Europe, the United
Kingdom and Germany remain the largest markets. Together with the Benelux
this is more than 50% of the market. The growth in the Benelux in 2010 was
over 22% and this market represents a value of about EUR 10 billion. The
growth in the United Kingdom was 13% with a value of about EUR 60 billion. In
Germany the growth in 2010 was about 10% and this market represents a value
of more than EUR 50 billion.
The integration and restructuring of the activities of the former Dohmen
Solutions Group will continue for several months in the first half-year 2011.
In 2010 these activities contributed to the growth in revenue (EUR 14.3
million in 8,5 months) but due to restructuring costs these activities also
had a negative impact on the operating profit (-/- EUR 2.1 million) and hence
the profit. For 2011 it is expected that these activities, including limited
further restructuring costs, will have a small contribution to the profit.
Thanks to the acquisition of the activities of the former Dohmen
Solutions Group in combination with the realised autonomous growth, Docdata
significantly strengthened its position on the German e-commerce market and
became a known player. Also, for the first time Docdata realised a higher
revenue in Germany than in the Dutch market where Docdata holds a top-3
position and is already a known player for a longer time.
Mid 2010 the media replication company in Berlin was divested. In 2000
more than 90% of revenue was realised by media replication activities, in
2010 this was less than 10% of revenue. As from 2011 the replication
activities will not have a significant influence on the figures of the Group
any more. The transition of Docdata to an E-commerce service company has now
successfully been completed.
For 2011, the focus will be on further growth in existing markets, on the
one hand through the growth of existing clients and the expansion of the
service portfolio, on the other hand by bringing in new clients. Smaller
acquisitions to expand our service portfolio can also contribute to the
growth. The organisation grew tremendously in 2010 and the management
structure has been strengthened at all levels. This provides us with a
reinforced basis to meet the challenges of 2011.
The main trends that are relevant for Docdata, are a further
transformation from online to mobile online. The expectation is that in 2012
more smartphones will be sold than computers. Also social networks will take
an increasingly important position in the communication to consumers, with
Facebook as a dominant player with more than 500 million active users and
thus being, after Google, the largest traffic source for webshops. On the
other hand the cross-border activities of both consumers and suppliers will
grow in the coming years.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "The developments and
opportunities of Internet are enormous. Because of our extensive experience
with e-commerce, the vast scalability of our solutions and international
experience we are able to gear up in a short time frame and help our clients,
also regarding cross-border activities, realising their growth. Thanks to our
scalable solutions we facilitated the extreme growth of some of our clients
in 2010, staying ahead of all our competitors."
Technology company IAI industrial systems delivered in 2010 a large
number of high quality systems. Furthermore the revenue from our service
activities and the delivery of subsystems increased clearly. The revenue of
IAI industrial systems was EUR 18.2 million which is a slight increase
compared to 2009 but structurally higher than any year before 2009.
The order book as per year-end 2010 includes orders with a revenue value
of EUR 8.4 million (2009: EUR 13.7 million). The order book is running
behind, which will have an impact on the revenue and results of IAI in 2011.
The pipeline however is well filled with prospects; we expect that the major
part will only be delivered in 2012. Projects generally have a long lead time
in the markets in which IAI operates. IAI only has very limited influence on
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 further expanded the product range
in the document security market through the development of new systems in the
last years, resulting in an entrance in additional markets like the market
for decentralised personalisation. In 2010, IAI has invested in R&D for the
development of next-generation systems and new applications like for example
contactless soldering of solar panels for which we sold a first system in
2010. The organisation has been strengthened, making the company ready for
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "Our clients are mainly
looking for innovative but proven solutions in the markets where we operate.
As our product portfolio has been expanded substantially in recent years, we
are well positioned to meet the market demands. We also see that clients
worldwide know how to find us."
Major features of the financial results for the 2010 year-end
Results and Financial position for the financial year 2010
(in millions, except percentages en 2010 2009 profit per share) EUR % EUR % Revenue E-commerce service company Docdata 85.8 82.5 62.9 78.1 Technology company IAI industrial systems 18.2 17.5 17.6 21.9 Total 104.0 100.0 80.5 100.0 Gross profit E-commerce service company Docdata 19.1 22.2 18.2 28.9 Technology company IAI industrial systems 6.9 38.1 7.3 41.9 Total 26.0 25.0 25.5 31.7 Operating profit (EBIT) E-commerce service company Docdata 1.0 1.2 1.0 1.6 Technology company IAI industrial systems 4.0 22.0 4.9 27.9 Total 5.0 4.8 5.9 7.3 Profit for the year 3.8 3.7 7.7 9.6 Basic earnings per share 0.58 1.18 Diluted earnings per share 0.58 1.18 Balance sheet total 56.0 49.0 Equity 27.6 27.4 Solvency ratio (Equity / Balance 49.3% 55.9% sheet total)
The revenue of DOCDATA N.V. increased in 2010 with EUR 23.5 million to
EUR 104 million (+29%). IAI industrial systems realised a slight revenue
increase of EUR 0.6 million (+ 3%). Docdata realised with its e-commerce
services commerce, payments and fulfilment an autonomous revenue growth of
EUR 16.9 million (+36%), mainly as a result of the increased number of
transactions. The acquisition of the activities of the former Dohmen
Solutions Group per 16 April 2010 contributed EUR 14.3 million to the revenue
in 2010. The revenue of the media replication activities decreased with EUR
8.2 million (-/- 51%) as a result of the further decline of the replication
activities, mainly due to the sale of the replication company in Berlin in
In 2010 DOCDATA N.V. realised a gross profit of EUR 26.0 million compared
to EUR 25.5 million in 2009 (+2%). The gross profit margin in 2010 was 25.0%
compared to 31.7% in 2009 with a decreased gross profit margin for both lines
of business. For Docdata this lower gross profit margin is mainly due to a
lower realised efficiency following the extreme growth of some of our largest
clients in the Netherlands and Germany. The decrease of the gross profit
margin of IAI industrial systems is mainly due to a different revenue mix in
2010 compared to 2009. The lower gross profit margin in 2010 is mainly the
result of relatively higher costs for produced and delivered orders
containing the development of new applications in the systems of these
In 2010 the operating result before financing result (EBIT) was EUR 5.0
million compared to EUR 5.9 million in 2009 (effect: -/- EUR 0.9 million).
The operating result of the technology company IAI industrial systems
decreased from EUR 4.9 million in 2009 to EUR 4.0 million in 2010 as a result
of the lower gross profit and higher organisation costs, primarily due to the
increased number of employees. The operating result of the E-commerce service
company Docdata remained almost unchanged in 2010 at EUR 1.0 million. In both
years the operating result of the E-commerce service company Docdata included
significant non-recurring costs which had a negative impact on the operating
result in those years. In 2010 these non-recurring costs were:
- acquisition and consultancy costs, start-up losses and restructuring costs after the acquisition of the activities of the former Dohmen Solutions Group (effect: EUR 2.1 million); - considerably higher organisations costs to realise the significant growth in Germany (effect: over EUR 1.5 million).
In 2009, the E-commerce service company Docdata recognised non-recurring
expenses of EUR 2.9 million. These non-recurring expenses related to a number
of impairments of goodwill and other intangible assets, the full depreciation
of the remaining media replication activities in Germany and the recognition
The profit of DOCDATA N.V. for the year 2010 amounts to EUR 3.8 million
compared to EUR 7.7 million for the year 2009 (effect: -/- EUR 3.9 million).
In addition to the above mentioned development of the operating result in
2010 compared to 2009 (effect: -/- EUR 0.9 million) and a financing result
with higher net finance expenses (effect: -/- EUR 0.1 million), income taxes
had a significant impact. In 2010 the income tax expense was EUR 1.2 million
compared to an income tax income of EUR 1.7 million in 2009 (effect: -/- EUR
2.9 million). The recognised income tax income in 2009 contained an income
tax credit of around EUR 4 million. This income tax credit was the result of
the recognition of a liquidation loss of over EUR 15 million in the 2009
corporate income tax return of the Dutch fiscal entity following the
completion of the liquidation of the former replication company in the United
Kingdom. Without this non-recurring income tax credit, profit in 2010 would
have slightly increased compared to 2009.
DOCDATA N.V. maintained its strong financial position with a solvency
ratio of 49.3% (31 December 2009: 55.9%) in 2010 against a strongly increased
balance sheet total. In relation to the Company's liquidity, the cash surplus
position of EUR 6.1 million as at 31 December 2009 decreased with EUR 0.3
million to EUR 5.8 million as at 31 December 2010.
In 2010, DOCDATA realised a net cash from operating activities of EUR
13.3 million (2009: EUR 7.4 million) which was 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 (EUR 2.8 million).
Furthermore, DOCDATA N.V. has drawn EUR 4.0 million from the credit facility
with Commerzbank AG in 2010 to finance the following:
- the acquisition of the assets and business activities of the former Dohmen Solution Group in Germany (total purchase price: EUR 2.2 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 (amongst others installations and racking) of our fulfilment centres in Germany.
Of these available funds of EUR 17.3 million, EUR 3.7 million was spent
on the payment of the 2009 dividend. In addition, the Group invested a total
amount of almost EUR 10 million in 2010: EUR 2.2 million in the acquisition
of the activities of the former Dohmen Solutions Group, EUR 6.2 million in
property, plant and equipment (mainly warehousing equipment and investments
in IT infrastructure), EUR 0.8 million in intangibles (predominantly IT
platform and development costs by IAI for the development of new systems) and
EUR 0.8 million for the acquisition of non-controlling interests in docdata
commerce B.V. and docdata payments B.V. The remaining EUR 3.7 million
resulted in higher cash and cash equivalents per 31 December 2010.
Strategy: Vision 2012: 'Flywheel to Growth'
"It's all about focus and commitment"
E-commerce service company Docdata
We are a focussed E-commerce service company
We deliver customer-focused and scalable solutions
We guarantee seamless handling of all your unique transactions
We are driven to make your e-commerce successful
The major strategic goals for the coming years remain:
- autonomous growth through successful partnerships with existing clients; - winning new clients; - expanding the service portfolio, also through strategic partnerships; - more prominent route for acquisitions; - acting as one company that offers a complete e-commerce service portfolio.
The current risks are mainly in terms of the strategic choice of clients
to outsource certain services to external suppliers. In the event that a
client will be acquired, this choice is almost always reconsidered with the
possibility of losing clients. Because of the rapid developments in the
e-commerce market, our clients are not willing to sign long-term contracts.
Technology company IAI industrial systems
We offer high quality production systems and reliability
We offer flexible, fast and accurate technological solutions
We are driven to offer the most innovative laser and optical solutions
The major strategic goals for the coming years remain:
- autonomous growth in the document security market by worldwide sales activities and continues development of new systems; - realise a position in other market segments by developing innovative laser applications; - increase of R&D and product development.
The current risks are mainly in terms of the realisation of orders, as
tenders issued by governments are regularly delayed by factors beyond our
control. In the new markets where we operate tender processes take longer as
new applications need to be extensively tested.
As the current strategy 'Vision 2012: Flywheel to Growth' will run until
2012, DOCDATA N.V. will have an external party execute a strategic study in
2011. The outcome of this study will serve as input for the strategic route
in the coming years.
The focus in 2011 will be kept on growth, both autonomous and trough
acquisitions. Acquisitions will mainly be aimed at expansion of our service
The focus of the E-commerce service company Docdata is on further
development of the service model in the Benelux, Germany and the UK. Based on
our current client base, we expect further growth with only a limited impact
of non-recurring costs on profit.
The focus for the technology company IAI industrial systems is on the
realisation of orders worldwide in existing and specifically defined markets
through the development of innovative solutions based on proven systems.
Considering the order book as at 31 December 2010, combined with the length
of the time between an order and the completion and delivery of systems at
the client, we expect lower revenues and results for IAI industrial systems.
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 0.35 per
ordinary share out of the profit for the year 2010. The distribution will be
subject to dividend withholding taxes, unless the shareholder can proof that
substantial holding exemption can be claimed.
At 31 December 2010, 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 349,982 (5.00%) 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 2.3 million will be distributed in
June 2011 as dividend out of the profit for the year 2010 on the ordinary
shares, which are held by other shareholders than the Company. The General
Meeting of Shareholders shall be held on Wednesday 15 June 2011 in Waalwijk.
The dividend distribution will lead to a decrease of the solvency ratio with
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. Management of DOCDATA N.V. holds the opinion that the very
strong liquidity and solvency of the Company enable the proposed dividend
distribution of EUR 0.35 per share.
The dividend proposed by DOCDATA N.V. of EUR 0.35 per share (in total:
EUR 2.3 million) is lower than the dividend of EUR 0.55 per share distributed
out of the profit for the year 2009 (in total: EUR 3.7 million). This was due
to the 2009 dividend distributed in May 2010 being one-time higher, as the
Company realised in 2010 an income tax credit on the liquidation loss for the
replication company in the United Kingdom. Compared to the dividend of EUR
0.30 per share (in total: EUR 2.0 million) out of the profit for the year
2008 distributed in May 2009, the dividend return has increased.
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.
Enclosure with financial information
For a detailed review of the 2010 year-end results, please refer to the
attached enclosure 'Financial Information for the year ended 31 December
2010' with Appendix.
Meeting for financial press and analysts
This morning, 24 February 2011, management of DOCDATA N.V. will discuss
the 2010 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). After
this meeting, the presentation shown to the financial press and analysts will
be made available for downloading from the Company's corporate website,
29 April 2011 Publication of 2010 Annual Report
8 June 2011 Record date (voting rights)
15 June 2011 (*) Annual General Meeting of Shareholders in Waalwijk
16 June 2011 Cum-date
17 June 2011 Ex date
21 June 2011 Record date (dividend rights)
24 June 2011 Dividend payment data
21 July 2011 Publication of 2011 half-year results
(*) Note: new date; the 2009 Annual Report referred to 18 May 2011 as
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 and 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. Docdata offers a complete e-commerce service portfolio to clients,
enabling them to be successful on the internet.
Corporate website: www.docdatanv.com
The 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).
(in thousands, except percentage figures) 2010 2009 Revenue by line of business EUR % EUR % E-commerce service company Docdata 85,834 82.5 62,875 78.1 Technology company IAI industrial systems 18,176 17.5 17,594 21.9 Total 104,010 100.0 80,469 100.0
- The combined revenue of the Docdata e-commerce services (commerce, payments and fulfilment) increased with EUR 31.2 million (67%). This revenue increase is the result of autonomous growth (EUR 16.9 million, including a positive foreign currency exchange GBP effect of EUR 0.3 million) and through the acquisition of the activities of the former Dohmen Solutions Group per 16 April 2010 (EUR 14.3 million). Two clients each realised more than 10% of the total revenue of the E-commerce service company Docdata. The revenue of the media replication activities decreased with EUR 8.2 million (51%) in total, of which EUR 6.1 million as a combined result of the sale of the UK media replication business on 30 January 2009 and the sale of all shares of docdata media GmbH on 21 July 2010; the other EUR 2.1 million of this revenue decrease was due to declining revenue from the media replication activities in Tilburg. - The increase in IAI industrial systems' revenue was realised through the delivery of systems for (amongst others) Bulgaria, India, Morocco and Uzbekistan. Deliveries consisted (amongst others) of BMOne's, SheetMaster systems, CardMasterDesk and ImagePerf(R)Desk systems and systems for the solar market.
(in thousands, except percentage figures) 2010 2009 Gross profit (margin) by line of business EUR % EUR % (margin as % of revenue by line of business) E-commerce service company Docdata 19,075 22.2 18,184 28.9 Technology company IAI industrial systems 6,918 38.1 7,365 41.9 Total 25,993 25.0 25,549 31.7
- The Docdata e-commerce services (commerce, payments and fulfilment) contributed EUR 18.1 million to the gross profit in 2010 compared to EUR 15.3 million in 2009, mainly due to growth in the number of transactions in the Netherlands and Germany. The acquired activities of the former Dohmen Solutions Group had an effect on the 2010 gross profit of EUR 2.3 million. The lower Docdata gross profit margin was mainly the result of higher operational costs in Germany. The media replication activities contributed EUR 1.0 million to the gross profit in 2010 compared to EUR 2.9 million in 2009. - The gross profit of IAI industrial systems decreased with EUR 0.4 million (6%) primarily due to a different sales mix in 2010 compared to 2009, in combination with a lower gross profit margin for some orders produced and delivered in 2010 due to development costs for new applications in the systems for these orders.
Operating profit before financing result (EBIT)
Selling & Administrative expenses
Other operating income and expenses
(in thousands, except percentage figures) 2010 2009 Operating profit (margin) by line of EUR % EUR % business (margin as % of revenue by line of business) E-commerce service company Docdata 1,020 1.2 973 1.6 Technology company IAI industrial systems 3,992 22.0 4,913 27.9 Total 5,012 4.8 5,886 7.3 Selling & Administrative expenses (as % of revenue) Selling expenses (5,600) (5.4) (4,530) (5.6) Administrative expenses (15,182) (14.6) (12,073) (15.0) Total (20,782) (20.0) (16,603) (20.6) Selling & Administrative expenses by line of business (as % of revenue by line of business) E-commerce service company Docdata (17,787) (20.7) (14,151) (22.5) Technology company IAI industrial systems (2,995) (16.5) (2,452) (14.0) Total (20,782) (20.0) (16,603) (20.6) Other operating income and expenses (as % of revenue) Other operating income 458 0.4 160 0.2 Other operating expenses (657) (0.6) (3,220) (4.0) Net other operating expenses (199) (0.2) (3,060) (3.8)
- The operating profit of the Docdata e-commerce services (commerce, payments and fulfilment) in 2010 amounted to EUR 1.5 million compared to EUR 1.7 million in 2009. In 2010, EBIT contains substantial non-recurring restructuring costs and start-up losses following the acquisition of the activities of the former Dohmen Solutions Group. These expenses were essential in order to reduce the cost base of the acquired activities, and are recognised both under selling and administrative expenses. Some of the acquired activities already contributed to profit in 2010. The total effect on EBIT amounts to a loss of around EUR 2.1 million in 2010, compared to EUR 2.0 million non-recurring operating expenses in 2009. The media replication activities realised a loss of EUR 0.5 million in 2010 (2009: EUR 0.7 million). - The decrease in operating profit of IAI industrial systems in 2010 is the combined result of a lower gross profit and higher selling and administrative expenses due to higher organisation costs for expansion of the number of employees. - In 2009, other operating expenses were recorded by Docdata for a total amount of EUR 3.2 million. These other operating expenses mainly consisted of non-recurring expenses in 2009 for an amount of EUR 2.9 million, including impairment charges for IT platforms in the UK (EUR 0.7 million), impairment charges for goodwill paid on acquisition of docdata e-business GmbH in Muenster, Germany (EUR 0.7 million), the full write-off of the media replication activities in Germany (EUR 0.9 million) and the addition to provisions (EUR 0.6 million in total).
Net financing income / (expenses)
Net financing expenses in 2010 amounted to EUR 40 thousand compared to
net financing income of EUR 0.1 million in 2009. This decrease of EUR 0.15
million is the combined effect of higher net bank interest expenses resulting
from financing the acquisition of the activities of the former Dohmen
Solutions Group in Germany through a bank overdraft from Commerzbank AG and a
somewhat lower foreign currency exchange result in 2010 compared to 2009
related to the British pound.
Income tax expense
DOCDATA's effective tax rate in 2010 was 23.4% with an income tax expense
of EUR 1.2 million on a profit before income tax of EUR 5.0 million. In 2009,
the profit before income tax amounted to EUR 6.0 million and the income tax
profit amounted to EUR 1.7 million (effective tax rate: negative 27.5%,
representing a tax credit), mainly due to recording an income tax credit of
around EUR 4 million on the liquidation loss of over EUR 15 million following
the completion of the liquidation of docdata media Ltd. in the UK.
The income tax expense of EUR 1.2 million in 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%). Furthermore, an income tax profit of EUR 0.3 million was realised for non-recognised tax assets of the Dutch fiscal entity related to the valuation of the deferred tax asset on the UK liquidation loss. - In the United Kingdom, income taxes are recorded against a corporate income tax rate of 28.0% (2009: 28.0%). Furthermore, an income tax profit was realised of EUR 0.1 million on non-recognised net operating losses from 2009. - In Germany, income taxes are recorded at a corporate income tax rate of in general between 26% and around 30% 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 Muenster region). No income tax has been recorded in 2010 on some non-tax deductible expenses, and the income tax on the 2010 net operating loss of a part of former Dohmen Solutions business has been valued to a limited extent; in total, the combined effect resulted in a tax loss of EUR 0.4 million.
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 2010.
In 2010, the Group realised net cash from operating activities of EUR
13.3 million (2009: EUR 7.4 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, as well as EUR 1.5 million of the carry back to income taxes from
Furthermore, the Group has drawn EUR 4.0 million from the credit facility
with Dresdner Bank AG (now part of Commerzbank AG) in 2010 to finance the
- the acquisition (total purchase price of the assets acquired: EUR 2.2 million) and post-transaction working capital and restructuring of the activities of the former Dohmen Solutions Group; - the investments in warehousing in Germany.
Of these total available funds of EUR 17.3 million, EUR 3.7 million was
spent on the payment of the 2009 dividend. In addition, the Group invested a
total amount of nearly EUR 10 million in 2010: EUR 2.2 million for the assets
acquired of the former Dohmen Solutions Group, EUR 6.2 million in property,
plant and equipment (mainly warehousing equipment and investments in IT
infrastructure), EUR 0.8 million in intangibles (predominantly IT development
costs and development costs by IAI for a new security system) and EUR 0.8
million for the acquisition of non-controlling interests in docdata commerce
B.V. and docdata payments B.V. The remaining EUR 3.7 million has resulted in
higher cash and cash equivalents per 31 December 2010 (EUR 9.8 million)
compared to 31 December 2009 (EUR 6.1 million).
In 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 31 December 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 24 February 2011.
Consolidated Financial Statements
1. Consolidated Balance Sheet
Balance sheet before appropriation of profit.
31 December 31 December 2010 2009 (in thousands) EUR EUR Assets Property, plant and equipment 10,431 6,221 Intangible assets 9,690 8,633 Investments in associates 62 62 Other investments 95 100 Trade and other receivables 200 200 Deferred tax assets 1,001 1,130 Total non-current assets 21,479 16,346 Inventories 5,436 6,861 Income tax receivables 407 3,038 Trade and other receivables 18,840 15,566 Cash and cash equivalents 9,790 6,147 Assets classified as held for sale - 1,054 Total current assets 34,473 32,666 Total assets 55,952 49,012 Equity Share capital 700 700 Share premium 16,854 16,854 Translation reserves (669) (1,030) Reserve for own shares (2,810) (2,940) Retained earnings (from prior years) 9,474 5,889 Unappropriated profits (Profit for the period) 3,853 7,831 Total equity attributable to equity holders of the parent 27,402 27,304 Non-controlling interest 156 107 Total equity 27,558 27,411 Liabilities Interest-bearing loans and other borrowings - 313 Deferred tax liabilities 530 288 Total non-current liabilities 530 601 Bank overdrafts 4,000 - Interest-bearing loans and other borrowings 190 - Income tax payable 453 340 Trade and other payables 22,781 18,668 Provisions 440 1,039 Liabilities classified as held for sale - 953 Total current liabilities 27,864 21,000 Total liabilities 28,394 21,601 Total equity and liabilities 55,952 49,012
2. Consolidated Income Statement
2010 2009 (in thousands, except EUR % EUR % earnings per share and average shares outstanding) Revenue 104,010 100.0 80,469 100.0 Cost of sales (78,017) (75.0) (54,920) (68.3) Gross profit 25,993 25.0 25,549 31.7 Other operating income 458 0.4 160 0.2 Selling expenses (5,600) (5.4) (4,530) (5.6) Administrative expenses (15,182) (14.6) (12,073) (15.0) Other operating expenses (657) (0.6) (3,220) (4.0) Operating profit before financing result 5,012 4.8 5,886 7.3 Financial income 215 0.2 301 0.4 Financial expenses (255) (0.2) (195) (0.2) Net financing (expenses) / income (40) - 106 0.2 Share of profits of associates - - 37 - Profit before income tax 4,972 4.8 6,029 7.5 Income tax (expense) / profit (1,162) (1.1) 1,660 2.1 Profit for the period 3,810 3.7 7,689 9.6 Attributable to: Equity holders of the parent 3,853 3.7 7,831 9.7 Non-controlling interest (43) - (142) 0.1 Profit for the period 3,810 3.7 7,689 9.6 Earnings per share Basic earnings per share 0.58 1.18 Diluted earnings per 0.58 1.18 share
3. Consolidated Statement of Cash Flows
2010 2009 (in thousands) EUR EUR Cash flows from operating activities Profit for the period 3,810 7,689 Adjustments for: Depreciation and amortisation 3,631 5,223 Costs share options and delivered shares 117 137 Financial expenses 255 195 Financial income (215) (301) Share of profits of associates - (37) Income tax expense / (income) 1,162 (1,660) Cash flows from operating activities before changes in working capital and provisions 8,760 11,246 Increase in trade and other receivables and assets held for sale (2,176) (3,003) Decrease / (Increase) in inventories 1,820 (3,268) Increase in trade and other payables and liabilities held for sale 3,660 3,048 (Decrease) / Increase in provisions (599) 846 and employee benefits Cash generated from the operations 11,465 8,869 Interest paid (254) (266) Interest received 171 209 Income taxes paid (1,000) (1,772) Income taxes received 2,883 320 Net cash from operating activities 13,265 7,360 Cash flows from investing activities Acquisition of property, plant and (6,164) (2,703) equipment Acquisition of subsidiaries and (2,220) (150) business Acquisition of intangible assets (835) (67) Acquisition of associates and other - (62) investments Proceeds from sale of property, plant 53 118 and equipment Net cash from investing activities (9,166) (2,864) Cash flows from financing activities Proceeds from / (Repayment of) bank overdrafts 4,000 (325) Dividends paid (3,658) (2,031) Acquisition of non-controlling interests (780) (656) Proceeds from exercise of share options 13 141 Repayment of interest-bearing loans and other borrowings - (60) Loans provided to associates and other investments - (200) Net cash from financing activities (425) (3,131) Net (decrease) increase in cash and cash equivalents 3,674 1,365 Cash and cash equivalents at the beginning of the period 6,147 6,034 Bank overdrafts balanced with cash and cash equivalents - (1,350) Effect of exchange rate fluctuations on cash held (31) 98 Cash and cash equivalents at the end of the period 9,790 6,147
4. Consolidated Statement of Shareholders' Equity
Share Share Retained capital premium earnings Reserves (in thousands) EUR EUR EUR EUR (Note 1) (Note 2) Equity Statement 2009 Balance at 1 700 16,854 (4,531) 7,882 January 2009 Dividend - - - (1,993) distribution Exercised share - - 141 - options Delivered shares - - 37 - for remuneration Costs share - - 100 - options Consolidation of - - - - former associate Profit for the - - - 7,831 period Other changes in total recognised - - 283 - income and expense for the period Balance at 31 700 16,854 (3,970) 13,720 December 2009 Equity Statement 2010 Balance at 1 700 16,854 (3,970) 13,720 January 2010 Dividend - - - (3,658) distribution Realised - - 270 (270) translation differences Exercised share - - 13 - options Costs share - - 117 - options Acquisition of non-controlling - - - (318) interest Profit for the - - - 3,853 period Other changes in total recognised - - 91 - income and expense for the period Balance at 31 700 16,854 (3,479) 13,327 December 2010
Total equity attributable to equity Non-controlling holders of interest the parent Total equity (in thousands) EUR EUR EUR Equity Statement 2009 Balance at 1 January 2009 20,905 292 21,197 Dividend distribution (1,993) (38) (2,031) Exercised share options 141 - 141 Delivered shares for remuneration 37 - 37 Costs share options 100 - 100 Consolidation of former associate - (5) (5) Profit for the period 7,831 (142) 7,689 Other changes in total recognised income and expense for the period 283 - 283 Balance at 31 December 2009 27,304 107 27,411 Equity Statement 2010 Balance at 1 January 2010 27,304 107 27,411 Dividend distribution (3,658) - (3,658) Realised translation differences - - - Exercised share options 13 - 13 Costs share options 117 - 117 Acquisition of non-controlling interest (318) 92 (226) Profit for the period 3,853 (43) 3,810 Other changes in total recognised income and expense for the period 91 - 91 Balance at 31 December 2010 27,402 156 27,558
Reserves in the Consolidated Statement of Shareholders' Equity consists
of the balances for Translation reserves and Reserve for own shares.
Retained earnings in the Consolidated Statement of Shareholders' Equity
consists of the balances for Retained earnings (from prior years) and
Unappropriated profits, equal to the Profit for the period for both financial
years ended 31 December 2010 respectively 31 December 2009.
5. Consolidated Statement of recognised Income and Expense
2010 2009 (in thousands) EUR EUR Foreign exchange translation differences, net of tax 91 283 Income recognised directly in equity 91 283 Profit for the period 3,810 7,689 Total recognised income and expense for the period 3,901 7,972 Attributable to: Equity holders of the parent 3,944 8,114 Non-controlling interest (43) (142) Total recognised income and expense for the 3,901 7,972 period
6. Notes to the Consolidated 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 financial statements
of DOCDATA N.V. as at and for the year ended 31 December 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 financials 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 financial statements 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 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 Management representations
In the opinion of the management, these consolidated 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
non-recurring expenses related to the acquisition of the assets of the former
Dohmen Solutions Group (including acquisition costs, advisory fees,
restructuring expenses, etc.) recorded in the financial year ended 31
December 2010, and non-recurring adjustments for the following topics
recorded in the financial year ended 31 December 2009:
- impairments of goodwill and other intangibles; - impairment of assets and liabilities reported as assets and liabilities classified as held for sale; - valuation of corporate income tax assets and profits, resulting from the liquidation of former subsidiaries.
In the consolidated financial statements for the year ended 31 December
2010, the following treatment has been applied for the following
incorporation and acquisition:
- 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 acquisition of the activities of the former Dohmen Solutions Group 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; - Docdata media GmbH: all shares in this German subsidiary, wholly owned by docdata germany GmbH and part of the E-commerce service company Docdata, were sold on 21 July 2010 to the German investment fund Deutsche Unternehmensbeteiligungen GmbH (DUBAG) in Munich. The balance sheet and income statement of docdata media GmbH were excluded from the DOCDATA consolidation starting per this date. The media replication activities of this German subsidiary were fully written off at fair value by the Group per the end of the 2009 financial year. The remaining book value of these assets and liabilities are reported as assets and liabilities classified as held for sale in the Group's Annual Report for the financial year ended 31 December 2009.
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 Muenster (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.
6.6 Property, plant and equipment
31 December 31 December 2010 2009 (in thousands) EUR EUR Land and buildings 1,263 1,347 Machinery and equipment 6,503 2,935 Office equipment and other 2,665 1,881 10,431 6,163 Under construction - 58 Total 10,431 6,221
The book value of property, plant and equipment has increased with EUR
4.2 million in 2010 due to capital expenditure for EUR 6.7 million and
depreciation charges for EUR 2.5 million. Included in capital expenditure in
2010 is the purchase price of in total EUR 0.5 million paid at acquisition
for the equipment bought of the former Dohmen Solutions Group, and EUR 0.6
million investments by IAI industrial systems in buildings and laser
production equipment. The remainder of about EUR 5.6 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.
6.7 Intangible assets
31 December 31 December 2009 2010 (in thousands) EUR EUR Goodwill 6,723 6,626 Software (IT platforms) 1,973 1,539 Customer contracts 703 468 Development costs 255 - Other 36 - Total 9,690 8,633
The book value for intangible assets has increased with EUR 1.1 million
in 2010, due to the following:
- capital expenditure in IT platforms, customer contracts and development costs (EUR 2.1 million in total), predominantly for the acquisition of the IT-platform and customer contracts of the former Dohmen Solutions Group (EUR 1.3 million in total at acquisition) and investments in the IT-platforms for Docdata commerce and payments (EUR 0.5 million in total). Also, IAI industrial systems has invested EUR 0.3 million in development costs for the production of a new type of systems for the security market; - amortisation charges for IT platforms and customer contracts (EUR 1.1 million in total); - currency exchange profits (EUR 0.1 million) on the valuation of the intangible assets with an original value in British pounds (i.e. goodwill and customer contracts related to the Braywood and Hitura acquisitions).
31 December 31 December 2009 2010 (in thousands) EUR EUR Raw and auxiliary materials 1,260 720 Work in progress 3,671 6,066 Finished goods 505 75 Total 5,436 6,861
The book value of inventories decreased EUR 1.4 million in 2010, which is
the combined effect of acquired inventories of the former Dohmen Solutions
Group (EUR 0.4 million), decreased work in progress at IAI industrial systems
(EUR 2.4 million) and increased general inventory levels for raw and
auxiliary materials, given the grown business activities of the Group in 2010
(EUR 0.6 million).
IAI industrial systems' order book developed in 2010 from EUR 13.7
million at 31 December 2009 to EUR 8.4 million at 31 December 2010 resulting
from systems' deliveries in 2010 with revenue of EUR 18.2 million and new
orders booked with a total sales value of EUR 12.9 million.
6.9 Segmented Consolidated Income Statement 2010
E-commerce Technology company IAI industrial service company systems Docdata (in thousands, except EUR % EUR % earnings per share and average shares outstanding) Revenue 85,834 100.0 18,176 100.0 Cost of sales (66,759) (77.8) (11,258) (61.9) Gross profit 19,075 22.2 6,918 38.1 Other operating income 389 0.5 69 0.4 Selling expenses (4,764) (5.5) (836) (4.6) Administrative expenses (13,023) (15.2) (2,159) (11.9) Other operating expenses (657) (0.8) - - Operating profit before financing result 1,020 1.2 3,992 22.0 Financial income 151 0.2 64 0.4 Financial expenses (187) (0.2) (68) (0.4) Net financing expenses (36) - (4) - Share of profits of associates - - - - Profit before income tax 984 1.2 3,988 22.0 Income tax expense (224) (0.3) (938) (5.2) Profit for the period 760 0.9 3,050 16.8 Attributable to: Equity holders of the parent 803 0.9 3,050 16.8 Non-controlling interest (43) - - - Profit for the period 760 0.9 3,050 16.8
Further information: DOCDATA N.V., M.F.P.M. Alting von Geusau, CEO, Tel. +31-416-631-100
Tags: docdata N.V., February 24, Netherlands, The Netherlands, Waalwijk