Successful Strategy DOCDATA N.V. Leads to Good Results in 2009
By Docdata N.v., PRNEWednesday, February 17, 2010
WAALWIJK, The Netherlands, February 18, 2010 -
- Strategy Successful for Both Lines of Business
- Revenue and Margins Increased Through Growth of Transactions by
e-Commerce Services Docdata and Record Deliveries IAI Industrial
Systems
- Profit Doubled Through Impact of Non-Recurring Tax Profit in the
Netherlands
- Proposal to Increase the Dividend Once to EUR 0.55 per Share
DOCDATA N.V. had an exceedingly successful year. Both lines of business,
technology company IAI industrial systems and e-commerce service company
Docdata, have performed excellently in 2009.
Technology company IAI industrial systems secured a record number of
orders and enlarged its market share in the highest quality segment of the
market for document security. In addition, in 2009 further investment was
done in the development of new production systems for the various markets in
which IAI is active, extending the product portfolio of IAI.
The e-commerce service company Docdata has seen the number of
transactions continuously rise in 2009. This is both due to the success of
our customers in the Netherlands including bol.com, De Bijenkorf and V&D, as
the success of our customers in Germany including brands4friends.de and
Zalando.de. In the United Kingdom we recently entered into a partnership with
eBay.co.uk to realise outlet shops. At the moment, the first shops are
operational.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "The strategy 'Vision
2010: Gear to Growth' has been implemented successfully both for technology
company IAI industrial systems and e-commerce service company Docdata,
despite the current economic crisis. Our focus for technology company IAI
industrial systems remains for the coming years on security orders for the
delivery of high-quality systems. For the e-commerce service company
Docdata the focus will be on further growth of the number of realised
transactions. A more active acquisition policy in the coming years will be
crucial for the further development of DOCDATA."
Results and Financial position for the financial year 2009
(in millions, except percentage 2009 2008
figures and per share data)
EUR % EUR %
Revenue
E-commerce service company Docdata 62.9 78.1 67.2 85.6
Technology company IAI industrial 17.6 21.9 11.4 14.4
systems
Total 80.5 100.0 78.6 100.0
Gross profit
E-commerce service company Docdata 18.2 28.9 18.5 27.5
Technology company IAI industrial 7.3 41.9 4.3 37.9
systems
Total 25.5 31.7 22.8 29.0
Operating profit (EBIT)
E-commerce service company Docdata 1.0 1.2 2.7 3.4
Technology company IAI industrial 4.9 6.1 2.7 3.4
systems
Total 5.9 7.3 5.4 6.9
Profit for the year 7.7 9.6 3.7 4.7
Basic earnings per share 1.16 0.55
Diluted earnings per share 1.11 0.53
Balance sheet total 49.0 40.9
Equity 27.4 21.2
Solvency ratio (Equity / Balance 55.9% 51.8%
sheet total)
Technology company IAI industrial systems delivered in 2009 a record
number of high quality personalisation systems. As a result the revenue of
IAI industrial systems increased with EUR 6.2 million (+55%). The order book
as per year-end 2009 includes orders with a turnover value of EUR 13.7
million (2008: EUR 10.8 million).
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 last years.
As earlier announced, IAI entered the market of solar energy. In this
market, IAI offers production systems for solar cells or solar panels. In
2009, IAI has further strengthened its network and established its name in
this market. As a result of the current economic crisis we do not expect to
deliver substantial production systems before 2011.
Michiel Alting van Geusau, CEO of DOCDATA N.V.: "We remain ideally
positioned in the document security market to compete with the major players
because of our high quality, reliable and customised systems. We expect that
governments will continue to give a high priority to investments in document
security. That is why we will increase our investments in new developments in
2010."
E-commerce service company Docdata realised a strong increase of the
number of unique transactions handled compared to 2009. In 2009 more than 20
million unique transactions were processed. As a result the combined turnover
of the commerce, payments and fulfilment activities increased with EUR 8.2
million (+21%).
The strong growth is for a large part realised by the success of existing
clients. We offer clients specific and full e-commerce solutions. In the
Benelux we are known as the most progressive e-commerce service company and
we are part of the secret behind the success of our clients. In Germany and
the United Kingdom we are not on this level yet but we will work hard to
achieve this. We will keep investing in people and systems to stay in first
position.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "The competition on the
market for e-commerce services has clearly increased in 2009, partly as
companies from other market areas have entered this market. This results in
price pressure, also because new players are 'buying in' on this market."
Major features of the financial results for the 2009 year-end
The revenue of DOCDATA N.V. increased in 2009 with EUR 1.8 million to EUR
80.5 million (+2.4%). The combined increase in revenue of the commerce,
payments and fulfilment activities of the e-commerce service company Docdata
and the increase in revenue of technology company IAI industrial systems
totalling EUR 14.4 million, fully absorbed the further decrease in revenue of
the media production activities of EUR 12.6 million (-/- 43%) in 2009. This
decline is the result of the sale of the activities of Docdata media in the
United Kingdom and the sale of 4D upgrade GmbH in Germany (total effect: -/-
EUR 8.5 million), and the further reduction of revenue of the remaining media
production activities in the Netherlands and Germany (total effect: -/- EUR
4.1 million).
In 2009 DOCDATA N.V. realised a gross profit of EUR 25.5 million compared
to EUR 22.8 million in 2008 (+12%), resulting in a combined gross profit
margin of 31,7% for 2009. The upward trend of recent years has continued
(2008: 29.0%; 2007: 25.2%; 2006: 23.7%), underlining that the new strategy is
working. Both lines of business contributed to this improved gross profit
margin; the gross profit margin of the e-commerce service company Docdata
increased to 28.9% (2008: 27,5%) in 2009, while the technology company IAI
industrial systems reached a gross profit margin of 41.9% (2008: 37.9%).
DOCDATA N.V. realised an operating profit before financing result (EBIT)
of EUR 5.9 million in 2009 after recognition of non-recurring expenses by the
e-commerce service company Docdata amounting to EUR 2.9 million. These
expenses relate to a number of impairments of goodwill and other intangible
assets, the full depreciation of the remaining media production activities in
Germany and recognition of provisions. Excluding these non-recurring expenses
the operating result of the e-commerce service company Docdata is EUR 3.9
million, which means an increase of EUR 1.2 million (+43%). The operating
result of the e-commerce service company Docdata, after deduction of the
non-recurring costs and including the operating result of the media
production activities, decreased with EUR 1.7 million (-/- 64%) to EUR 1.0
million in 2009. The operating profit of the technology company IAI
industrial systems increased with EUR 2.2 million (+83%) to EUR 4.9 million
as a result of the higher number of systems delivered in 2009, mainly in the
second half year of 2009. In total the operating result of DOCDATA N.V.
increased with EUR 0.5 million compared to 2008 (+9%).
The financing result in 2009 improved with EUR 0.6 million compared to
2008, mainly as a result of the mix of lower interest expenses due to
improved liquidity and improvement of the exchange result due to an increased
British pound rate in 2009. In 2009 an income tax profit was realised of EUR
1.7 million resulting in a higher profit of EUR 3.0 million compared to 2008.
This income tax profit includes the earlier announced incidental tax gain of
about EUR 4 million as a result of the recognition in the corporate income
tax return of 2009 by the Dutch fiscal entity of the liquidation loss of over
EUR 15 million for the completed liquidation of docdata media Limited in the
United Kingdom.
The profit for the year 2009 amounts to EUR 7.7 million, which is EUR 4.0
million (+109%) higher than in 2008. In summary, this profit improvement is
predominantly caused by:
- increase of 'recurring' profit of both lines of business (+ EUR 2.9
million);
- non-recurring expenses (-/- EUR 2.9 million);
- incidental tax profit (+ EUR 4.0 million).
DOCDATA N.V. further strengthened its financial position with a solvency
ratio of 55.9% (31 December 2008: 51.8%) on a significantly increased balance
sheet total. The balance sheet total increased in 2009 with EUR 8.1 million
(+20%) mainly due to the higher balance sheet position of IAI industrial
systems for work in progress and trade debtors. DOCDATA N.V. realised in 2009
cash flow from operating activities of EUR 7.4 million with an expenditure of
EUR 5.7 million. The most important items spent are the payment of dividend
over 2008 of EUR 2.0 million to shareholders, the investments in property,
plant and equipment and intangible assets (EUR 2.8 million) and the
acquisition of (minority interests) in subsidiaries and investments in
associated companies and other investments (EUR 0.9 million). The remaining
EUR 1.7 million of cash improved the net cash position of DOCDATA N.V. in
2009, from EUR 4.4 million at 31 December 2008 to EUR 6.1 million at 31
December 2009.
Strategy:
'Vision 2010: Gear to Growth' becomes 'Vision 2012: Flywheel to Growth'
E-commerce service company Docdata
We are the e-commerce service company
We develop customer-focused and integrated solutions
We process unique transactions
The major strategic goals for the coming years are:
- autonomous growth through customer retention and winning new customers;
- expanding the service portfolio to existing customers;
- development of a new service called 'Docdata analytics';
- more prominent route for acquisitions;
- acting as one company that offers various services.
In addition to the geographical focus, we will continue to invest in new
services for our customers. In 2010, a completely integrated 'Docdata
analytics tool' will be developed and implemented, both for internal use as
well as for our clients. The goal is to offer clients a better reporting tool
for their realised transactions, so they can optimise their processes and
realise a competitive advantage. Docdata analytics should become a catalyst
for e-success.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "The coming year we will
search for suitable acquisition candidates to accelerate our growth and
strengthen our market position. An important trend is that more people order
online more frequently. We have the impression that this trend is supported
by the current economic recession and as a result we expect a further growth
also for the coming year. However, we see that the average amount per order
and the conversion rates decrease, the number of transactions keep growing."
The current risks are mainly in terms of the financial position of our
customers and the strategic choice of (potential) customers to purchase
certain services from external suppliers. One of our customers in Münster
(Germany) has not renewed the distribution contract in 2010. We also see that
client acquisition takes much longer in the current economic crisis.
Customers clearly need more time to take these decisions.
Technology company IAI industrial systems
We offer high quality production systems and reliability
We offer flexible, fast and accurate technological solutions
We offer the most innovative laser and optical solutions
The major strategic goals for the coming years are:
- autonomous growth in the document security market by expanding the
sales activities and development of new systems;
- gain a position in the solar market by developing unique laser
applications;
- exploit opportunities in other market segments that are driven by
innovative laser applications;
- increase of R&D and product development in the coming years.
Worldwide, we see that many countries hold on to paper holder pages. For
this extensive market segment IAI industrial systems has developed
BookMasterOne systems which process personal data by means of inkjet
printing, followed by the application of a protective laminate on the holder
page. Although such systems do not embed the laser inscription application,
these systems can, depending on customer's request, include the ImagePerf(R)
and/or NumberPerf(R) laser-functionality. With the development of these BMOne
systems IAI industrial systems has entered a large market segment of the
known document security market.
Another new development is demonstrated by the SheetMaster and WebMaster
systems that can process documents printed in sheets or in web. There is a
large variety of documents that can be processed, for example: birth
certificates, registration certificates, diplomas, passport pages, documents
for levying direct taxes, etc. There is no standardisation of such documents
yet. For this reason these systems are equipped with many different options
to cover the demands in this market as much as possible. Also here IAI
industrial systems entered a new segment in a known market. These systems
have been sold and partly delivered to a number of countries, including South
Africa, India and Poland.
For the order from Bulgaria, IAI industrial systems developed in 2009 new
systems for the decentralised personalisation market. For that purpose the
technology of the highly integrated systems, such as the BMOne, has been made
available in small(er) standalone solutions. With this IAI industrial systems
again enters a new market. The above examples illustrate the significant
expansion of the product range of IAI industrial systems for the document
security market.
We will also invest in R&D to exploit opportunities in other markets
where innovative laser applications can offer unique solutions. Here we limit
ourselves to a maximum of two applications beyond the two already entered
markets for document security and solar energy.
Outlook
The focus in 2010 will be on growth, both autonomous and trough
acquisitions.
The focus for the e-commerce service company Docdata is on the further
development of the service model in Germany and the United Kingdom. The goal
is to become a top 5 player there as well in the coming years. Furthermore,
the development of the new service 'Docdata analytics' is of great
importance. For 2010, we expect further growth, despite the economical market
situation; with the exception of the media production activities.
In the document security market, technology company IAI industrial
systems has realised outstanding results in 2009. The focus for 2010 is on
the expansion of the organisation and the accelerated development of new
systems for which there is a market demand. In the solar market, we do not
yet expect appreciable revenue for 2010.
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 0.55 per
ordinary share out of the profit for the year 2009. The distribution will be
subject to dividend withholding taxes, unless the shareholder can proof that
substantial holding exemption can be claimed.
At 31 December 2009, 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 351,482 (5.02%) 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 3.7 million will be distributed in May
2010 as dividend out of the profit for the year 2009 on the ordinary shares,
which are held by other shareholders than the Company. The General Meeting of
Shareholders shall be held on Wednesday 12 May 2010 in Waalwijk. The dividend
distribution will lead to a decrease of the solvency ratio with some
percent-points.
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 0.55 per share. As a result, the shareholders will
directly benefit from the tax profit realised by the Company in 2009 through
the one-time higher dividend distribution as proposed.
The dividend proposed by DOCDATA N.V. of EUR 0.55 per share (in total:
EUR 3.7 million), to be distributed out of the profit for the year 2009,
increases with 83% compared to the dividend of EUR 0.30 per share (in total:
EUR 2.0 million) that was distributed out of the profit for the year 2008. In
2008, a dividend of EUR 0.25 per share (in total: EUR 1.7 million) 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.
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 2008 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 2009 year-end results, please refer to the
attached enclosure 'Financial Information for the year ended 31 December
2009' with Appendix.
Meeting for financial press and analysts
This morning, 18 February 2010, management of DOCDATA N.V. will discuss
the 2009 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).
Presentation for shareholders
For shareholders that appreciate an explanation by management of DOCDATA
N.V. of the 2009 year-end results, a separate (private) meeting will be held
this afternoon, 18 February 2010, at 3.00PM 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). Management will
provide this explanation based on the same presentation as provided this
morning to both financial press and analysts. After the meeting with the
shareholders, this presentation will be made available for downloading from
the Company's corporate website, www.docdatanv.com. Should you wish to
attend this informal shareholders' meeting, please notify the Company.
Registration for attendance of the meeting will be possible till the starting
time of the meeting.
Important dates
23 April 2010 Publication of 2009 Annual Report
5 May 2010 Record date (voting rights)
12 May 2010 (*) Annual General Meeting of Shareholders in Waalwijk
13 May 2010 Cum-date
14 May 2010 Ex date
18 May 2010 Record date (dividend rights)
21 May 2010 Dividend payment date
22 July 2010 Publication of 2010 half-year results
(*) Note: new date; the 2008 Annual Report referred to 20 May 2010 as
preliminary date
——————————————
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
Corporate website: www.docdatanv.com
Financial Information
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).
Revenue
(in thousands, except percentage figures) 2009 2008
Revenue by line of business EUR % EUR %
E-commerce service company Docdata 62,875 78.1 67,269 85.6
Technology company IAI industrial systems 17,594 21.9 11,351 14.4
Total 80,469 100.0 78,620 100.0
- The combined revenue of the Docdata commerce, payments and fulfilment
services increased with EUR 8.2 million (21%), including a negative
foreign exchange effect of EUR 0.6 million. This revenue increase is
the result of autonomous growth (EUR 7.4 million, including the
negative FX GBP effect of EUR 0.6 million) and through the acquisition
of Pegasus Mail GmbH per 1st of January 2009 (EUR 0.8 million). One
client realised slightly more than 10% of the total revenue. The
revenue of the Docdata media service decreased with EUR 12.6 million
(43%) in total, of which EUR 8.5 million as a combined result of the
sale of the UK media business by docdata media Ltd. on 30 January
2009 and the sale of all shares of 4DU upgrade GmbH on 20 November
2008; the other EUR 4.1 million of this revenue decrease was due to
declining revenue from replication activities in Tilburg and Berlin.
- The increase in IAI industrial systems' revenue is realised through
the delivery of systems for (amongst others) Rumania, Bulgaria and
Sweden. Deliveries consisted of BMOne's, a CMOne and ImagePerf(R)
systems.
Gross profit
(in thousands, except percentage figures) 2009 2008
Gross profit (margin) by line of business EUR % EUR %
(margin as % of revenue by line of
business)
E-commerce service company Docdata 18,184 28.9 18,487 27.5
Technology company IAI industrial systems 7,365 41.9 4,307 37.9
Total 25,549 31.7 22,794 29.0
- The Docdata commerce, payments and fulfilment services contributed EUR
14.9 million to the gross profit in 2009 compared to EUR 13.6 million
in 2008, mainly due to growth in the number of transactions. The higher
Docdata gross profit margin was mainly the result of lower (relative)
transport costs recharged. The Docdata media service contributed EUR
3.3 million to the gross profit in 2009 compared to EUR 4.9 million in
2008.
- Both the gross profit and gross profit margin of IAI industrial systems
increased due to the delivery of a higher number of security systems in
2009, predominantly during the second half-year 2009.
Operating profit before financing result (EBIT)
Selling & Administrative expenses
Other operating income and expenses
(in thousands, except percentage figures) 2009 2008
Operating profit (margin) by line of EUR % EUR %
business
(margin as % of revenue by line of
business)
E-commerce service company Docdata 973 1.6 2,726 4.1
Technology company IAI industrial systems 4,913 27.9 2,691 23.7
Total 5,886 7.3 5,417 6.9
Selling & Administrative expenses (as % of
revenue)
Selling expenses 4,530 5.6 5,501 7.0
Administrative expenses 12,073 15.0 11,699 14.9
Total 16,603 20.6 17,200 21.9
Selling & Administrative expenses by line
of business (as % of revenue by line of
business)
E-commerce service company Docdata 14,151 22.5 15,585 23.2
Technology company IAI industrial systems 2,452 14.0 1,615 14.2
Total 16,603 20.6 17,200 21.9
Other operating income and expenses
(as % of revenue)
Other operating income 160 0.2 82 0.1
Other operating expenses 3,220 4.0 259 0.3
Net other operating expenses 3,060 3.8 177 0.2
- The operating profit of the Docdata commerce, payments and fulfilment
services in 2009 amounts to EUR 3.6 million (excluding EUR 2.0 million
operating expenses in 2009) compared to EUR 2.7 million in 2008 and
this 33% increase reflects the higher economies of scale and lower
selling and administrative expenses. The Docdata media service realised
a loss of EUR 0.6 million in 2009 (2008: close to nil) resulting from
the write-off of the German replication activities for around EUR 0.9
million.
- The increase in operating profit of IAI industrial systems in 2009 is
the result of the sale of a higher number of security systems. The
selling and administrative expenses of IAI industrial systems increased
with EUR 0.8 million (52%) mainly due to the higher activity level,
resulting in higher costs for the organisation including higher
personnel costs as a result of the expansion in number of employees.
This enabled IAI industrial systems to realise further growth, as well
as an entry in the solar market.
- In 2009, net other operating expenses were recorded by Docdata for a
total amount of EUR 3.1 million. These net other operating expenses
mainly consist 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 Münster, Germany
(EUR 0.7 million), the full write-off of the remaining media
production activities in Germany (EUR 0.9 million) and creation of
provisions (EUR 0.6 million in total).
Net financing income / (expenses)
Net financing income in 2009 amounted to EUR 0.1 million compared to net
financing expenses of EUR 0.5 million in 2008. This increase of EUR 0.6
million is the combined effect of lower net bank interest expenses resulting
from a better liquidity in 2009 (effect: EUR 0.2 million) and higher foreign
currency exchange result in 2009 compared to 2008 (effect: EUR 0.4 million)
due to the British pound recovering against the euro since January 2009.
Income tax expense
DOCDATA's effective tax rate in 2009 was negative 27.5% (representing a
tax credit) with an income tax profit of EUR 1.7 million on a profit before
income tax of EUR 6.0 million. In 2008, the profit before income tax amounted
to EUR 5.0 million and the income tax expense amounted to EUR 1.3 million
(effective tax rate: 26.7%).
The income tax profit of EUR 1.7 million in 2009 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. As the liquidation of docdata media Ltd. in the UK has
been completed, the Dutch fiscal entity has recorded an income tax
credit of around EUR 4 million on the liquidation loss of over EUR
15 million. Furthermore, a deferred tax provision of EUR 0.2 million
was recorded for non-recognised net operating losses, given
uncertainty about the timely consummation of these losses before the
2011 year-end by one of the Dutch subsidiaries that are not part
of the fiscal entity.
- In the United Kingdom, income taxes are recorded against a corporate
income tax rate of 28% (2008: 28.0%). As a consequence of the sale on
30 January 2009 of the UK media business and tangible fixed assets to
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 sheets at 31
December 2009 and at 31 December 2008. No income tax has been recorded
in 2009 on non-tax deductible expenses for a total value of EUR 0.4
million, consisting of impairment of intangible assets and the release
of the remaining balance of the provision for 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% on taxable income for the German
entities, taking into account lower income tax rates for some regions
in Germany when and where applicable. No income tax has been recorded
in 2009 on non-tax deductible expenses for a total value of EUR 1.6
million, consisting of impairment of goodwill and the full write-off of
the remaining media production activities.
Liquidity and capital resources
The General Annual Meeting of Shareholders held on 13 May 2009 approved
the proposal to distribute a dividend of EUR 0.30 per ordinary share
outstanding (excluding own shares held by the Company), which had a
decreasing impact of EUR 2.0 million on retained earnings within the equity
of the Company in 2009.
In 2009 31,420 personnel options were exercised 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
141 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 2009,
the Company owned 351,482 own shares (5.02%), which number is the same as the
number of own shares currently owned by the Company per today, 18 February
2010.
In 2009, the Group realised net cash from operating activities of EUR 7.4
million (2008: EUR 8.9 million). Of these total available funds, EUR 5.7
million was spent and the remaining EUR 1.7 million resulted in an increase
of the net cash position to EUR 6.1 million from EUR 4.4 million at 31
December 2008. The EUR 5.7 million were for a large part spent on the EUR 2.0
million dividend payment. In addition, the Group has invested a total amount
of EUR 3.6 million in 2009: EUR 2.7 million in property, plant and equipment
(mainly warehousing equipment and investment in IT infrastructure); EUR 0.8
million for the acquisition of the remaining minority interests in Braywood
Holding Ltd. (14.40% of shares), docdata commerce Ltd. (29.10% of shares;
formerly named Hitura Ltd.), and docdata e-business GmbH (30.0% of shares;
formerly named Pegasus Dienstleistungen GmbH), and EUR 0.1 million in
intangibles (predominantly IT development costs) and in associates.
Consolidated Financial Statements
1. Consolidated Balance Sheets
Balance sheets before appropriation of profit.
31 December 31 December
2009 2008
(in thousands) EUR EUR
Assets
Property, plant and equipment 6,221 6,275
Intangible assets 8,633 9,979
Investments in associates 62 174
Other investments 100 100
Trade and other receivables 200 108
Deferred tax assets 1,130 752
Total non-current assets 16,346 17,388
Inventories 6,861 3,593
Income tax receivables 3,038 468
Trade and other receivables 15,566 12,868
Cash and cash equivalents 6,147 6,034
Assets classified as held for 1,054 549
sale
Total current assets 32,666 23,512
Total assets 49,012 40,900
Equity
Share capital 700 700
Share premium 16,854 16,854
Translation reserves (1,030) (1,313)
Reserve for own shares (2,940) (3,218)
Retained earnings 13,720 7,882
Total equity attributable to equity holders of 27,304 20,905
the parent
Minority interest 107 292
Total equity 27,411 21,197
Liabilities
Interest-bearing loans and other 313 628
borrowings
Employee benefits - 100
Deferred tax liabilities 288 437
Total non-current liabilities 601 1,165
Bank overdrafts - 1,675
Interest-bearing loans and other - 94
borrowings
Income tax payable 340 323
Trade and other payables 18,668 16,054
Provisions 1,039 93
Liabilities classified as 953 299
held for sale
Total current liabilities 21,000 18,538
Total liabilities 21,601 19,703
Total equity and liabilities 49,012 40,900
2. Consolidated Income Statements
2009 2008
(in thousands, except earnings per share EUR % EUR %
and average shares outstanding)
Revenue 80,469 100.0 78,620 100.0
Cost of sales (54,920) (68.3) (55,826) (71.0)
Gross profit 25,549 31.7 22,794 29.0
Other operating income 160 0.2 82 0.1
Selling expenses (4,530) (5.6) (5,501) (7.0)
Administrative expenses (12,073) (15.0) (11,699) (14.9)
Other operating expenses (3,220) (4.0) (259) (0.3)
Operating profit before financing result 5,886 7.3 5,417 6.9
Financial income 301 0.4 550 0.7
Financial expenses (195) (0.2) (1,012) (1.3)
Net financing income / (expenses) 106 0.2 (462) (0.6)
Share of profits of associates 37 - 58 0.1
Profit before income tax 6,029 7.5 5,013 6.4
Income tax profit / (expense) 1,660 2.1 (1,337) (1.7)
Profit for the period 7,689 9.6 3,676 4.7
Attributable to:
Equity holders of the parent 7,831 9.7 3,606 4.6
Minority interest (142) 0.1 70 0.1
Profit for the period 7,689 9.6 3,676 4.7
Weighted average number of shares 6,649,000 6,668,000
outstanding
Weighted average number of shares 6,946,000 6,921,000
(diluted)
Earnings per share
Basic earnings per share 1.16 0.55
Diluted earnings per share 1.11 0.53
3. Consolidated Statements of Cash Flows
2009 2008
(in thousands) EUR EUR
Cash flows from operating activities
Profit for the period 7,689 3,676
Adjustments for:
Depreciation and amortisation 5,223 3,749
Costs share options and delivered shares 137 244
Financial expenses 195 1,012
Financial income (301) (550)
Share of profits of associates (37) (58)
Income tax expense (1,660) 1,337
Cash flows from operating activities before
changes in working capital and provisions
11,246 9,410
(Increase) / Decrease in trade and other
receivables and assets held for sale 642
(3,003)
(Increase) / Decrease in inventories (3,268) 158
Increase / (Decrease) in trade and other
payables and liabilities held for sale (3)
3,048
Increase / (Decrease) in provisions and 846 (272)
employee benefits
Cash generated from the operations 8,869 9,935
Interest paid (266) (714)
Interest received 209 541
Income taxes paid (1,452) (846)
Net cash from operating activities 7,360 8,916
Cash flows from investing activities
Acquisition of property, plant and equipment (2,703) (2,156)
Acquisition of subsidiaries (806) (1,353)
Acquisition of associates and other (62) (985)
investments
Acquisition of intangible assets (67) (49)
Proceeds from sale of property, plant and 118 28
equipment
Net cash from investing activities (3,520) (4,515)
Cash flows from financing activities
Dividends paid (2,031) (1,890)
(Repayment of) / Proceeds from bank (325) 25
overdrafts
Repayment of interest-bearing loans and other (60) (117)
borrowings
Loans provided to associates (200) -
Proceeds from exercise of share options 141 48
Proceeds from interest-bearing loans and - 110
other borrowings
Own shares bought - (1,916)
Net cash from financing activities (2,475) (3,740)
Net (decrease) increase in cash and cash 1,365 661
equivalents
Cash and cash equivalents at the beginning of 6,034 5,586
the period
Bank overdrafts balanced with cash and cash (1,350) -
equivalents
Effect of exchange rate fluctuations on cash 98 (213)
held
Cash and cash equivalents at the end of the 6,147 6,034
period
4. Consolidated Statements of Shareholders' Equity
Total equity
attributable
to equity
holders of
Share Share Retained the parent Minority Total
capital premium earnings interest equity
Reserves
(in EUR EUR EUR EUR EUR EUR EUR
thousands)
Equity
Statement
2008
Balance at 1 731 16,854 (1,674) 5,932 21,843 344 22,187
January 2008
Dividend - - - (1,656) (1,656) (234) (1,890)
distribution
Cancellation (31) - 31 - - - -
of own shares
Shares bought - - (1,916) - (1,916) - (1,916)
Exercised - - 48 - 48 - 48
share options
Delivered - - 135 - 135 - 135
shares for
remuneration
Costs share - - 109 - 109 - 109
options
Consolidation - - - - - 112 112
of former
associate
Total
recognised - - (1,264) 3,606 2,342 70 2,412
income and
expense for
the period
Balance at 31 700 16,854 (4,531) 7,882 20,905 292 21,197
December 2008
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 - - 100 - 100 - 100
options
Consolidation - - - - - (5) (5)
of former
associate
Total
recognised - - 283 7,831 8,114 (142) 7,972
income and
expense for
the period
Balance at 31 700 16,854 (3,970) 13,720 27,304 107 27,411
December 2009
5. Consolidated Statements of recognised Income and Expense
2009 2008
(in thousands) EUR EUR
Foreign exchange translation differences, net 283 (1,264)
of tax
Income / (Expense) recognised directly in 283 (1,264)
equity
Profit for the period 7,689 3,676
Total recognised income and expense for the 7,972 2,412
period
Attributable to:
Equity holders of the parent 8,114 2,342
Minority interest (142) 70
Total recognised income and expense for the 7,972 2,412
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 2009 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 2008 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 2008.
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 2008. 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 2008.
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 recorded
non-recurring adjustments for the following topics:
- 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.
6.5 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.
6.6 Consolidation
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.
In the consolidated financial statements for the year ended 31 December
2008, the following treatment has been applied for the acquisitions and
divestments mentioned:
- docdata media Ltd.: on 30 January 2009 docdata media Ltd. 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.
- docdata e-business GmbH (formerly named 'Pegasus e-Business GmbH'):
DOCDATA has increased its share interest in Pegasus e‑Business GmbH
in Münster (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.
6.7 Property, plant and equipment
31 December 31 December
2009 2008
(in thousands) EUR EUR
Land and buildings 1,349 1,449
Machinery and equipment 2,937 2,929
Other 1,879 1,855
6,165 6,233
Under construction 56 42
Total 6,221 6,275
The book value of property, plant and equipment has remained at EUR 6.2
million over 2009 as a combined result from depreciation charges for EUR 2.8
million (including an additional depreciation of EUR 0.4 million for the
write-off of the remaining book value at 31 December 2008 of the machinery
and equipment of the German media production activities), currency exchange
profits for EUR 0.1 million on the UK property, plant and equipment accounted
for in British pounds, and capital expenditure for EUR 2.7 million.
6.8 Intangible assets
31 December 31 December
2009 2008
(in thousands) EUR EUR
Goodwill 6,626 6,562
Customer contracts 468 627
IT platforms 1,539 2,790
Total 8,633 9,979
The book value for intangible assets has decreased with EUR 1.3 million
in 2009, due to the following:
- goodwill paid (EUR 0.6 million) for the acquisition of the remaining
minority interests in Braywood Holding Ltd. (14.40% of shares), docdata
commerce B.V. (20.0% of shares), docdata commerce Ltd. (29.10% of
shares; formerly named Hitura Ltd.) and docdata e-business GmbH (30.0%
of shares; formerly named Pegasus Dienstleistungen GmbH). At 31
December 2009, the Group owns the economical rights to all the shares
in these subsidiaries going back to 1st of January 2009;
- capital expenditure for IT platforms (EUR 0.1 million in total);
- amortisation charges for customer contracts and IT platforms (EUR 0.8
million in total);
- impairments for IT platforms and goodwill paid on acquisition (EUR 1.5
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).
6.9 Inventories
31 December 31 December
2008
2009
(in thousands) EUR EUR
Raw and auxiliary materials 720 1,050
Work in progress 6,066 2,375
Finished goods 75 168
Total 6,861 3,593
The book value of inventories increased EUR 3.3 million in 2009, which is
only caused by increased work in progress at IAI industrial systems. The
largest part of the systems being build, which are included in this work in
progress, are scheduled for delivery in the first half-year 2010. IAI
industrial systems' order book increased during 2009 from EUR 10.8 million at
31 December 2008 to EUR 13.7 million at 31 December 2009.
6.10 Segmented Consolidated Income Statement 2009
E-commerce Technology
company IAI
service company industrial
Docdata systems
(in thousands, except earnings per EUR % EUR %
share and average shares outstanding)
Revenue 62,875 100.0 17,594 100.0
Cost of sales (44,691) (71.1) (10,229) (58.1)
Gross profit 18,184 28.9 7,365 41.9
Other operating income 160 0.3 - -
Selling expenses (3,797) (6.0) (733) (4.2)
Administrative expenses (10,354) (16.5) (1,719) (9.8)
Other operating expenses (3,220) (5.1) - -
Operating profit before financing 973 1.6 4,913 27.9
result
Financial income 220 0.3 81 0.5
Financial expenses (140) (0.2) (55) (0.3)
Net financing income / (expenses) 80 0.1 26 0.2
Share of profits of associates 37 - - -
Profit before income tax 1,090 1.7 4,939 28.1
Income tax profit / (expense) 2,996 4.8 (1,336) (7.6)
Profit for the period 4,086 6.5 3,603 20.5
Attributable to:
Equity holders of the parent 4,228 6.7 3,603 20.5
Minority interest (142) (0.2) - -
Profit for the period 4,086 6.5 3,603 20.5
Corporate website: www.docdatanv.com
PRN NLD
Further information: DOCDATA N.V., M.F.P.M. Alting von Geusau, CEO, Tel. +31-416-631-100
Tags: docdata N.V., February 18, Netherlands, The Netherlands, Waalwijk
