SLIEDRECHT, The Netherlands, Aug. 22, 2002 (PRIMEZONE) -- Unit 4 Agresso NV, secure e-business software supplier, today announces its results for the first half of 2002.In spite of the worsening economic situation in the first half of 2002, Unit 4 Agresso succeeded again in expanding its market share and turnover. Turnover increased with 8% organically to 105.5 million euro (H1 2001: 102.6 million euro. In the results of the first half of 2001, turnover and results of Bestmate were consolidated. This organization was sold to the management at the end of 2001). Especially the Internet & Security division (11%) and Agresso Business World (15%) realised a growth well above market averages.
In the first six months of 2002 Unit 4 Agresso realised a positive net result after taxes and goodwill of 3.1 million euro. This represents earnings per share of 0.13 euro (average number of shares: 24,533,625), which is a decline compared to the same period in 2001. Given the current market conditions and the fact that extra reorganisation costs were made, Unit 4 Agresso's management is nevertheless satisfied with the results achieved. Unit 4 Agresso has already taken some practical steps in order to reduce the operational costs to a level that better suits the current market conditions. An amount of 3.5 million euro was spent on the reorganisation in the first six months of this year.
Unit 4 Agresso was able to maintain a healthy balance sheet. In spite of the deteriorating market, the management succeeded in reducing the average term of credit from 69 days as at 30 June 2001 to 57 days as at the end of June 2002. The ratio of group equity in total equity results at 42.5% per 30 June 2002 (30 June 2001: 26.4%). Cash at bank and in hand slightly decreased to 18.6 million euro due to goodwill and earnout payments in the first months of 2002 (H1 2001: 22.8). Because of its sound balance sheet and its profitability Unit 4 Agresso is positive about the future.
The division Business Software realised an organic growth of 6% resulting in a turnover of 65.4 million euro. In a number of markets the Business Software division was faced with a weak first half of the year. Especially the Benelux and more specifically the market for manufacturing companies, had to deal with a stagnating growth. The international product line Agresso Business World (ABW) however, showed a healthy growth. In the first half of 2002 Unit 4 Agresso achieved an organic increase in ABWis turnover of 15%, showing that the focus on specific core markets like professional services (SPO/ PSA) and the public sector is starting to bear fruit. Research carried out by Gartner showed that in the SPO market in view Unit 4 Agresso succeeded in expanding its market share by more than 100%. Especially the subsidiaries in Norway and the United Kingdom realised strong organic growth. In a strong field of competitors, the U.K. subsidiary gained some 20 new customers / orders in the first half of 2002, varying in order value between 200K and 750K euro. Gartner recognized ABW as 'Europe's highestselling business system in the rapidly growing "Service Process Optimisation" market.'
The first half of 2002 was also successful for the Internet & Security division. The second half of 2001 showed a strong pressure on margins and the gross margin decreased to 25.2%. In the first half of 2002 the Internet & Security division managed to increase the margin with 1.8% to 27.0%. In line with the expectations Unit 4 Agresso was able not only to improve the profitability of this division in the first half of 2002 sequentially, compared to the second half of 2001, but also to realise a stable growth in market share. Especially the value added distribution saw its margins rise due to increased services, added value during the sales process, and the expected shakeout among competitors. Turnover of the Internet & Security division rose by 11% organically and amounted to 40.1 million euro.
Foundation ICT Solutions
Unit 4 Agresso took a 35% interest in Foundation ICT Solutions, which was completely financed from the company's own resources. For the time being, the interest will be held as a financial investment. Foundation ICT Solutions is a newly founded organisation, consisting of healthy divisions of the former Landis ICT Group. This management buyout is the initiative of the former management that took over the successful parts of the former organisation. The new organisation carries on going concern business like current contracts, goodwill, certifications of the training institute and personnel. The organisation employs some 200 people that will all be committed to current projects. Based on the current orders in hand, expectations are that in the last 9 months of 2002 a turnover of more than 10 million euro will be attained. The organisation will be profitable from the start. The organisation has the following five specialities: Education services, Infrastructure services, Application services, Consulting services and Managed services. Amongst the current customers are companies like Nike, the Dutch Royal Military Police, energy supplier NUON, Siemens, ABN AMRO.
Outlook
To ensure optimised profitability, Unit 4 Agresso will continue to carefully manage the operational costs in the second half of 2002. Because of its strong position Unit 4 Agresso expects turnover to increase again in the second half of 2002, attaining a positive result in spite of the uncertain market conditions.
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The Unit 4 Agresso Group is an international developer and distributor of secure e-business solutions. Unit 4 Agresso NV, headquartered in the Netherlands and listed on the Dutch Stock Exchange, employs nearly 1,400 professionals and provides services for its customers worldwide through its subsidiaries and distributors in the Netherlands, Norway, France, the United Kingdom, Sweden, Germany, Italy, Iceland, Spain, Belgium, Canada and the United States.