Solteq Plc Stock Exchange Bulletin 30.01.2007 at 9.00 a.m.
SOLTEQ PLCS FINANCIAL STATEMENTS BULLETIN 1.1.-31.12.2006
Solteqs turnover increased, but operating result was lower than
anticipated.
- Turnover increased 7,4% and totalled 23,2 million euros (21,6
million euros)
- Operating result decreased and amounted to -0,5 million euros (1,2
million euros). Operating result was partly burdened by non-recurring
items totalling 0,8 million euros.
- Result for the financial year was 0,1 million euros (1,2 million
euros)
- The company estimates the turnover to increase at least by 15 % on
a yearly basis and the operating result to improve substantially
- Board of Directors proposes that it would be authorised to make a
decision on a dividend or return of equity of maximum 0,10 eur
KEY FIGURES
Turnover by operation:
% 112/06 112/05
Services 60 62
Licences 26 24
Hardware 14 14
Turnover by segment:
Me 112/06 112/05 Change
Trade 15,4 15,7 -0,3
Industry and services 7,8 5,9 +1,9
Total 23,2 21,6 +1,6
Operating result by segment:
Me
Trade -0,7 0,6 -1,3
Industry and services 0,2 0,6 -0,4
Total -0,5 1,2 -1,7
In the comparison by segment, the disputed expensed compensation for
damages -0,6 Me is included in the operating profit of the segment
Trade.
Managing Director Hannu Ahola:
This past year we made two successful acquisitions which brought
Solteq a plenty of new business possibilities.
Through subsidiary Artekus the companys export possibilities in
Russia improved clearly. Through Tampereen Systeemitiimi we expanded
our offering to cover Microsofts Dynamics corporate software.
For new sales the past year was very challenging. Instead, demand for
IT services was at a good level.
This year the demand for IT services has remained strong and also the
outlook for new sales is positive.
BUSINESS ENVIRONMENT AND BUSINESS DEVELOPMENT
Solteq delivers IT systems and related services supporting business
operations of trade and industrial companies. Solteqs industry
knowledge is strongest in chain stores and wholesale trade, car sales
and forest and wood industry. In addition, Solteq serves companies
specialised in project operations among other things. Artekus,
acquired in the beginning of 2006, is the leading provider of IT
systems for industry maintenance in Finland. Solteqs operations are
based on strong partnerships with its customers. Over 60 % of the
companys turnover comes from services.
Solteqs product strategy is based on both developing own product
together with the customers as well as packaging international
software companies, such as SAP and Wincor Nixdorf, retail products
as tailored solutions for different industries. In addition to these
industry specific solution, Solteq has developed its own added value
products. During the review period Solteq expanded its offering to cover
Microsofts Dynamics corporate software by acquiring all the shares of
Tampereen Systeemitiimi Oy specialised in their delivery.
According to Market-Visios estimate, the value of Finlands IT-
markets was ca. 5 250 million euros in 2006, which meant a 3,5
percent growth from the previous year. IT-markets include hardware,
software and IT-service markets.
In addition to organic growth, Solteq seeks growth through
acquisitions suitable for its strategy as well as expanding in the
near areas. The companys internationalisation possibilities improved
clearly during the review year through Artekus. The possibilities of
exporting its products in Russia have been investigated and first
deliveries have taken place. Together with Wincor Nixdorf, sales of
store systems in the international markets have been started.
The internationalisation of Solteqs clientele brings pressure to
integrate systems cross-border and new growth potential also to
Solteq. This is also supported by the fact that even now
approximately 80 % of the customers IT investment decisions are made
in Finland.
According to Market-Visio, companies IT consumption is labelled by
strong cost control and awareness, and this is predicted to continue
in the coming years. The cost saving measures are expected to
increase out-sourcing activities as well as demand for IT services
produced in countries with lower cost level (offshore/nearshore
services).
The price pressure has been also noted in Solteqs clientele.
Especially in industry, larger customers are cutting down the number
of their IT suppliers and paying less for their IT services. On the
other hand, Solteq can offer its customers ready packaged industry
specific solutions applicable for even global markets cost-
effectively.
TRADE
Business environment
According to Market-Visios research, the value of IT markets in
wholesale and retail trade increased more during the year 2006 than
the IT markets in average. Companies acting in trade are constantly
targeted by international competition and price competition, which
require making operations and processes more efficient continuously.
Companies acting in trade are expanding to the near areas bringing
integration needs across borders. This gives Solteqs business
operations new growth potential.
Also new large shopping centres mean new potential cash register
system deliveries for Solteq. Demand for store systems has been good.
Also solutions making business operations more efficient, such as
speech picking based on voice recognition and procurementoptimisation
products have had a good demand. Demand for IT services
has been on a good level as the users are investing in utilising and
developing their existing systems. Instead, demand for new
comprehensive systems has been moderate, which is also reflected in
Solteqs new sales. They remained lower than anticipated.
Development work relating to payment cards is in central position in
trade companies as trade in moving into the era of EMV integrated
circuit card payments.
In car sales, the past year was busy. According to the information
centre of car industry 145 700 new cars were registered. Even though
the first registrations of cars decreased 1,7 per cent from the
previous year, car sales remained at a good level. Review year was
also labelled by re-organisations within in the industry which
brought Solteq new business opportunities.
Business development
Solteq brings added value to customers acting in trade by offering
them advanced, comprehensive IT-solutions such as ERP-systems, store
systems and procurement systems for wholesale trade, chain stores and
individual specialised shops.
New sales in Solteqs trade segment were weaker than anticipated.
However, demand for services was at a good level as the customers
invested in developing their existing systems.
One of the most significant projects of the year was Solteqs and
Berner Osakeyhtiös extensive IT co-operation agreement. Solteq took
over the responsibility of Berners IT system maintenance, daily
functioning and development.
The delivery of a comprehensive solution to Veljekset Halonen Oy and
its sister company Oy Carlson acting in specialised stores proceeded
as planned. A solution called Solteq TP.net will include a new-
generation store system and chain monitoring and it will be delivered
to all Halonen clothes shops as well as Carlsons department stores
and hardware stores.
Solteq delivered several store systems and cash registers to the
shopping centre Ideapark which opened in December. A total of 19
stores are using Solteqs solutions.
Luottokunta granted Solteqs store systems eligibility for EMV
circuit cards during the review year. Circuit card function is
available for Tekso- and TN10 store systems. Solteq made several
deliveries during the last part of the year.
Solteq delivers comprehensive ERP-systems and related services also
to vehicle retailers, importers and repair shops and their interest
groups. Solteqs products and services cover the whole value chain of
car sales and also its interest groups.
For car sales, the business operations went well during the review
period. Especially demand for services was at a good level as the
customers present systems were developed further. Selling
Stockmanns car sales group to a several units brought Solteq new
system projects and significant services in the beginning of the
year.
Solteq continued to develop a new solution for SAPs car retailers to
respond to domestic retailers needs. Dealer Business Management i.e.
DBM is a packaged solution for car sales which serves all the
retailers from small ones to a large retail groups. Solteq will add
this new product to its existing car sales product portfolio acting
as a retailer.
INDUSTRY AND SERVICES
Business environment
The industrial markets in Finland were labelled by a strong
structural change in the review year as the companies transferred
their production to lower cost countries. The companies also
underwent internal reorganisations and rationalisation measures.
According to Market-Visios estimate, the value of IT-markets in
industry sector decreased approximately by one per cent from the
previous year. Only part of the increase in IT costs will be shown in
the Finnish markets as a growing part of it will be spent in
subsidiaries located outside Finland. However, at the moment most of
the decision making in Finnish companies with international
operations takes place in Finland.
The internationalisation of industrial companies causes need to
uniform systems cross-border. This brings also Solteq growth
potential and need to develop new services.
Business development
Solteq produces and supports IT systems and service concepts which
serve, develop and add value to customers business operations.
Solteq concentrates on long-term customer relations and serves large,
mid-sized and growing companies in industry and services.
Solteq remained behind its new sales targets for the year also in its
industry segment. However, demand for IT services during the review
period was at good level as the customers invest in gradually
expanding the use of their existing systems. On the other hand, the
competition has become harder and companies are more critical towards
the prices of IT-solutions and IT-services.
The on-going comprehensive ERP-solution project with metal industry
group Componenta Oyj went as planned. Phase two of this project i.e.
implementation in Componentas Pori and Karkkila sites has been in
process during the review period. Solteq delivers to Componenta a
comprehensive solution including financial management, production
management and logistics.
Solteq continued to develop an ERP system together with Finnforest,
who is responsible for Metsäliitto Groups wood project industry.
Developing of Tekmanni Oys sales and project reporting took place
during the past year where SAP NetWeaver tools were utilised. In 2006
also development of Tekmannis profit centre budgeting was launched
by using the newest SAP integrated planning tools. A new customership
is Sanitec Group. Solteq will participate in the SAP system implementation
of IDO unit.
In the beginning of the year Solteq acquired Artekus Oy, specialising
in maintenance and materials management systems and services for
industry. More extensive export possibilities for the companys
products have been investigated in Russia and a first direct customer
agreement was made at the end of the year: Artekus was chosen to
deliver an ERP system for maintenance and materials management to a
new south-western water purification plant belonging to waterworks of
the city of St Petersburg.
Artekus and Empower Oy signed a co-operation agreement during the
review period. According to this agreement, the parties will begin co-
operation in services and solutions relating to maintenance and
materials management systems in Finland, Russia and the Baltic
Countries.
Artekus has implemented maintenance system projects during the review
period also to the following companies among others: KemFine Oy,
Stora Enso Timber Oy Ltd, Teollisuuden Voima Oy, UPM-Kymmene Oyj and
YIT Teollisuus- ja verkkopalvelut Oy. Of the international projects
can be mentioned Oy Metsä-Botnia Abs pulp factory in Uruguay, Nokian
Renkaat Oyjs factory in Russia and Estonian AS Estonia Cell which
are underway.
TURNOVER AND RESULT
Turnover increased 7,4% compared to the previous year and totalled
23.166 thousand euros (21.568 thousand euros). The growth resulted
from the acquisitions during the financial year.
Turnover consists of several individual customerships. At the most,
one client corresponds to a less than five percentages from the
turnover.
The companys result figures weakened clearly. The operating result
was -498 thousand euros (1.228 thousand euros), result before taxes
was -479 thousand euros (1.476 thousand euros) and the profit for the
period 123 thousand euros (1.220 thousand euros).
Tampere district court ruled Solteq Plc to pay approximately 560
thousand euros as a compensation for damages to Arokarhu Oy relating
to a claimed agreement breach. The amount in question and accrued
interests have been expensed during the financial year in accordance
with a prudence principle. Solteq regards the ruling as false and has
appealed to Turku court of appeal regarding both the basis for the
ruling as well as the amount of compensation.
As a consequence of the co-operation negotiations held during the
summer, fifteen employments ended either through termination or
voluntary arrangements. The costs for ending the employments totalled
approximately 200 thousand euros.
The financial income of the company was 19 thousand euros (248
thousand euros). The assets available for investments decreased
because the acquisitions and return of equity
In October Solteq Plc received a decision regarding the regular
taxation of the year 2005 from the Tampere inland revenue office.
Based on the decision Solteq Plc can deduct the loss, ca. 3.6 million
euros, caused by the liquidation of its previously owned subsidiary
Solteq Retail Oy in 2005 from its taxable income for the tax years
2005 2007, as the company had suggested. In accordance with IFRS
the company adjusts its tax expense for the review period to reflect
the received decision. The positive effect of this adjustment on the
taxes for the review period is 617 thousand euros.
BALANCE SHEET AND FINANCING
The total assets amounted to 20.347 thousand euros (14.377 thousand
euros). The increase is mainly due to the acquisitions of Artekus Oy
and Tampereen Systeemitiimi Oy and their consolidation.
Liquid assets and current investments totalled 2.225 thousand euros
(1.349 thousand euros). The significant increase in liquid assets
during the last part of the year is due to the timing and payment
terms of the acquisition of Tampereen Systeemitiimi Oy. The companys
liquid funds have been included in the Group balance sheet beginning
from November 2006 while the payment of the purchase price to be paid
in cash will take place mainly in January 2007.
The companys equity ratio was 47,7 % (75,2%). The equity ratio,
which was earlier considered to be even too high, has been lowered in
the spring through the equity return to the shareholders which was
mainly funded though debt. In addition, growth of the balance sheet
due to acquisitions lowered the ratio as well.
INVESTMENTS, RESEARCH AND DEVELOPMENT
Gross investments during the review period were 7.680 thousand euros
(1.251 thousand euros). For the most part these consisted of the
acquisitions during the financial period as well as capitalised
development costs.
Acquisitions
Solteq announced on 27.1.2006 that it will acquire the shares of
Artekus Oy specialising in maintenance and materials management
systems and services for industry. The company has been consolidated
in the financial statements starting from 1.2.2006. The acquisition
price was 3.924 thousand euros, of which 2.000 thousand euros was
paid with new shares issued by Solteq Plc and the rest in cash.
The acquisition price exceeding Artekus Oys equity at the time of
the acquisition has been allocated as goodwill amounting to 1.907
thousand euros and intangible rights consisting of product rights
amounting to 614 thousand euros. The goodwill represents advantages
received from cross-utilising the customers, controlling a more
extensive value chain for industry, knowledgeable personnel and
synergy from complementing product range. The intangible right is
based on product rights and knowledge generated by Artekus Oys
development efforts. Its acquisition cost will be amortised over its
economic life in ten years.
Solteq announced on 16.11.2006 that it is acquiring Tampereen
Systeemitiimi Oy specialising in Microsofts corporate software. The
company has been consolidated starting from 1.11.2006. The
acquisition price was 2.970 thousand euros. During 2006, 298 thousand
euros was paid through new shares issued by Solteq Plc and 400
thousand euros in cash. In accordance with the agreement, the rest of
the acquisition price 2.272 thousand euros will be paid by the end of
January 2007. The acquisition price exceeding Tampereen Systeemitiimi
Oys equity at the time of the acquisition has been allocated as
goodwill totalling 1.168 thousand euros. The goodwill represents
future income expectations relating to cross-utilising customers,
knowledgeable personnel and complementing product knowledge.
Research and development
Solteqs research and development costs consist mainly of personnel
costs. When developing basic products, it is Solteqs strategy to co-
operate with global actors such as SAP and Wincor-Nixdorf and utilise
their resources and distribution channels. Own development efforts
are focused on added value products and developing tailored service
concepts.
During the review period, development costs under IFRS have been
capitalised in the amount of 342 thousand euros relating to four
different development projects. Of the aforementioned projects, two
have been completed during the first quarter and thus the
depreciation according to plan have been started for the capitalised
amount.
PERSONNEL
The number of permanent employees at the end of the review period was
234(187). Average number of personnel during the review period was
240 (193). At the end of the review period the number of personnel
divided as follows: trade 114, industry and services 75 and shared
functions 45.
The increase in the number of personnel is due to the acquisitions
during the financial year. As a result of the co-operation
negotiations which took place in the autumn, employment of 15 people
ended in the parent company either through termination or voluntary
arrangements.
SHARES AND SHAREHOLDERS
Solteq Plcs equity on 31.12.2006 was 993.654,69 euros which was
represented by 12 038 229 shares. The shares have no nominal value.
As a part of the acquisition price, sellers of Tampereen
Systeemitiimi Oy were given 222.224 new shares of Solteq Plc in
December 2006. The shares have been registered in the trade register
at the end of the financial year and trading with the shares in
question is estimated to begin 15.3.2007.
Exchange and rate
During the financial year, the exchange of Solteqs shares in the
Helsinki Stock Exchange was 3,9 million shares (3,5 million shares)
and 6,8 million euros (6,7 million euros). Highest rate during the
review period was 2,24 euros and lowest rate 1,28 euros. Weighted
average rate of the share was 1,79 euros and end rate 1,32 euros. The
market value of the companys shares at the end of the review period
totalled 15,7 million euros (21,8 million euros).
Ownership
At the end of the financial year, Solteq had a total of 2.489
shareholders (2.791 shareholders). Solteqs 10 largest shareholders
owned 7.089 thousand shares i.e. they owned 58,9 per cent of the
companys shares and votes.
Solteq Plcs members of the board owned a total of 4.855 thousand
shares which equals 40,3 per cent of the companys shares and votes.
During the review period one change of ownership was flagged when as
a consequence of the share issue deviating from the shareholders pre-
emptive right of subscription made on 14.2.2006 Seppo Aaltos share
of ownership decreased below the notification limit of 15 per cent
set in the Finnish Security Markets Law.
ANNUAL GENERAL MEETING
Solteq Plcs annual general meeting on 24.3.2006 adopted the
financial statements for 2005 and the members of the board and the
managing director were discharged from liability for the financial
year 2005.
The annual general meeting decided in accordance with the boards
proposal that no dividend is distributed.
The annual general meeting made a decision to return equity to the
shareholders from the unrestricted equity fund in the amount of 0,30
euros per share. Entitled to this return were shareholders which on
29.3.2006 were registered in the companys list of shareholders
maintained by the Finnish Central Securities Depository Ltd. The
return was paid 5.4.2006.
The annual general meeting authorised the board of directors to
decide on increasing the share capital on one or more occasions
through a subscription issue or issuing option rights or both, the
maximum increase totalling 198.000 euros. This authorization includes
a right to deviate from the shareholders pre-emptive right of
subscription if there is a weighty financial reason for the company.
The annual general meeting authorised the board of directors to
acquire companys own shares in the maximum amount of 10 per cent of
the companys total number of shares. The shares can be acquired
through public trading in other proportion than the shareholders
holdings at market price. Shares can be acquired in order to develop
the companys capital structure, finance acquisitions or similar
arrangements or convey otherwise or be invalidated.
In addition, the board of directors were authorised to decide on
conveyance of the companys own shares, the maximum conveyed amount
being 1.179.000 shares. The board of directors is entitled to decide
on to whom and how own shares are conveyed and the board of directors
has a right to decide on the conveyance of repurchased shares other
than in proportion to the existing pre-emptive right of shareholders
to subscribe the companys own shares. The shares shall be conveyed
at the fair value at the time of transfer and it is possible to
convey them against other property than money. The authorization
includes that the Board of Directors may decide on the way and extent
of conveyance and the shares may be used in acquisitions or similar
arrangements and they can be sold in public trading.
Board of directors, auditors and managing director
Five members were re-elected to the board of directors, namely Seppo
Aalto, Ari Heiniö, Veli-Pekka Jokiniva, Ali Saadetdin and Jukka
Sonninen. The board elected Ali Saadetdin to act as the chairman of
the board.
KPMG Oy Ab, Authorised Public Accountants, were re-elected as
Solteqs auditors. Frans Kärki, APA, acts as the lead partner.
After the Managing Director Jorma Hänninen asked for a resignation
from his duties, the Board of Directors decided to appoint the
director of retail and wholesale trade profit centre, Hannu Ahola
M.Sc.econ, M.Sc.techn. as the companys new managing
director beginning from 1.10.2006.
EVENTS AFTER THE REVIEW PERIOD
The company has issued a stock exchange bulleting on 16.1.2007
containing preliminary information on the turnover and result for the
year 2006.
In the beginning of January 2007 Solteq has deposited the sum ruled
by the Tampere district court as a compensation for damages including
interest with Tampere jurisdictional districts execution office. By
making this deposit in accordance with the ruling, the company is
avoiding interest risks which prolonged court proceedings could
cause.
PROSPECTS
The company estimates the turnover to increase at least by 15 % on a
yearly basis and the operating profit to improve significantly. The
most significant factors for the development of profitability are
generating organic growth through more efficient new sales and
controlling the costs for producing the services.
In addition, Solteq seeks growth by looking for a business
acquisition suitable for the companys strategy as well as expanding
companys market of operations. At this stage, store systems and data
transmission systems developed together with Wincor Nixdorf for
specialty stores, as well as the maintenance products of Artekus are
considered to have the best export possibilities.
ANNUAL GENERAL MEETING
The annual general meeting will be held 23 March 2007 at 3.00 p.m. at
the companys headquarters at Eteläpuisto 2 C, 33200 Tampere.
PROPOSAL OF THE BOARD FOR DISTRIBUTION OF DISTRIBUTABLE FUNDS
The Board of Directors propose to the annual general meeting to be
held 23 March 2007 that the Board is authorised in accordance with
the Finnish Companies Act 13 chapter 6§ 2 paragraph to decide on a
maximum dividend of 0,10 euros and/or other distribution of funds
from the distributable equity fund as well as to decide upon the
timing of the distribution and other details.
With the current number of shares the complete use of this
authorization would mean distributing 1.204 thousand euros to the
shareholders.
FINANCIAL INFORMATION
GROUP PROFIT AND LOSS 1.10.- 1.10.- 1.1.- 1.1.-
ACCOUNT (TEUR) 31.12.06 31.12.05 31.12.06 31.12.05
NET TURNOVER 6 574 6 062 23 166 21 568
Other operating income 20 3 42 55
Raw materials and services -1 670 -1 597 -5 378 -5 141
Staff expenses -3 558 -2 775 -12 831 -10 656
Depreciation -196 -109 -698 -511
Other operating expenses -1 149 -1 123 -4 799 -4 087
OPERATING RESULT 21 461 -498 1 228
Financial income and expenses -47 -4 19 248
PROFIT BEFORE APPROPRIATION
AND TAXES -26 457 -479 1 476
Income taxes 149 19 602 -256
PROFIT/LOSS FOR THE PERIOD 123 476 123 1 220
PERIOD
Earnings / share,e(undiluted) 0,01 0,04 0,01 0,11
Earnings / share,e(diluted) 0,01 0,04 0,01 0,11
GROUP BALANCE SHEET 31.12.06 31.12.05
(TEUR)
ASSETS
NON-CURRENT ASSETS
Intangible assets
Intangible rights 2 140 1 327
Goodwill 6 600 2 556
Tangible assets 3 019 2 891
Investments
Other shares and similar
rights of ownership 81 88
Other long-term debtors 0 140
Deferred tax assets 663 192
Total non-current assets 12 503 7 194
CURRENT ASSETS
Short-term debtors 5 619 5 834
Investments 1 579 1 118
Cash in hand and at banks 646 231
Total current assets 7 844 7 183
TOTAL ASSETS 20 347 14 377
EQUITY AND LIABILITIES
CAPITAL AND RESERVES ATTRIBUTABLE TO THE
SHAREHOLDERS OF THE PARENT COMPANY
Share capital 994 908
Share premium account 2 164 234
Equity account 5 962 9 500
Unrestricted equity fund 298 0
Retained earnings (loss) 173 -1 053
Profit for the fin.year 123 1 220
Total equity 9 714 10 809
LIABILITIES
Non-current liabilities 163 163
Current liabilities 10 470 3 405
Total liabilities 10 633 3 568
TOTAL EQUITY AND LIABILITIES 20 347 14 377
FINANCIAL PERFORMANCE 2006 2005 2004 2003 2002
INDICATORS IFRS IFRS IFRS FAS FAS
Net turnover MEUR 23,2 21,6 21,7 20,8 18,8
Change in net turnover 7,4 % -0,7 % 4,4 % 10,5 % -14,4 %
Operating profit MEUR -0,5 1,2 0,9 1,2 0,6
% of turnover -2,1 % 5,7 % 4,2 % 5,6 % 2,9 %
Result before taxes MEUR -0,5 1,5 1,4 1,6 -0,5
% of turnover -2,1 % 6,8 % 6,3 % 7,5 % -2,8 %
Equity ratio, % 47,7 75,2 65,6 74,5 70,5
Gearing, % 15,8 % -7,9 % -34,5 % -55,5 % -26,2 %
Gross investments in
non-current assets MEUR 7,7 1,3 2,7 0,2 1,4
Return on equity, % 1,2 % 11,4 % 8,7 % 10,1 % 4,8 %
Return on investment, % -2,4 % 13,3 % 12,4 % 13,8 % 8,2 %
Personnel at end of period 234 187 199 190 188
Personnel average for period 240 193 202 192 195
KEY INDICATORS PER SHARE
Earnings / share,e 0,01 0,11 0,09 0,11 0,05
Earnings / share,e(diluted) 0,01 0,11 0,09 0,11 0,05
Equity / share,e 0,81 1,00 0,99 1,13 1,03
QUARTERLY KEY INDICATORS (MEUR)
1Q/05 2Q/05 3Q/05 4Q/05 1Q/06 2Q/06 3Q/06 4Q/06
Net turnover 5,02 5,91 4,58 6,06 5,78 6,16 4,65 6,58
Operating result 0,09 0,33 0,35 0,46 0,22 -0,04 -0,70 0,02
Result before taxes 0,24 0,32 0,46 0,46 0,35 -0,07 -0,73 -0,03
CASH FLOW STATEMENT 1-12/06 1-12/05
(MEUR)
Cash flow from business oper. 0,25 -0,08
Cash flow from capital expend. 1,86 -1,75
Cash flow from financing act.
Income from issued shares 0,02 0,11
Dividends paid 0,00 -1,07
Return of equity (paid) -3,53 0,00
Loan agreement 3,27 0,00
Cash flow from financing act. -0,24 -0,96
Change in cash and cash equiv. 1,87 -2,79
LIABILITIES (MEUR) 31.12.06 31.12.05
Perfomance bonds 0,05 0,00
Lease contracts,
machinery & equipment 0,71 1,02
Lease liability, premises 3,42 3,62
The company has given a collateral of EUR 1.178 thousand on company quarantees
against credit limits of EUR 3.505 thousand. Credit limits of EUR 2.270 thousand
are in use at the end of the review period.
The Group has no liabilities from derivative instruments.
DISTRIBUTION OF HOLDINGS BY SECTOR DECEMBER 31, 2006
Number of Shares and votes
holdings % Number
Private companies 116 10,29 % 1 238 413
Financial an insurance inst. 7 0,82 % 98 967
Public-sector organizations 1 0,11 % 13 000
Households 2 353 88,66 % 10 673 238
Non-profit organizations 6 0,08 % 8 971
Foreigners 6 0,05 % 5 640
Total 2 489 100,00 % 12 038 229
Total of Nominee-registered 3 0,67 % 80 216
DISTRIBUTION BY NUMBER OS SHARES DECEMBER 31,2006
Number of Shares and votes
Number of shares holdings % Number
1 - 100 392 0,27 % 32 022
101 - 1 000 1 371 5,60 % 673 707
1 001 - 10 000 627 15,98 % 1 923 895
10 001 - 100 000 90 20,05 % 2 414 067
100 001 - 1 000 000 7 18,05 % 2 173 020
1 000 000 - 2 40,05 % 4 821 518
Total 2 489 100,00 % 12 038 229
Total of nominee- registered 3 0,67 % 80 216
MAJOR SHAREHOLDERS DECEMBER 31, 2006
Shares and votes
Number %
1. Saadetdin Ali 3 159 312 26,2 %
2. Aalto Seppo 1 662 206 13,8 %
3. Pirhonen Jalo 513 380 4,3 %
4. Profiz Business
Solution Oyj 478 530 4,0 %
5. Onninen-Sijoitus Oy 400 000 3,3 %
6. Hakamäki Jorma 278 430 2,3 %
7. Roininen Matti 227 800 1,9 %
8. Saadetdin Katiye 156 600 1,3 %
9. Kiiveri Jouko 118 280 1,0 %
10. Meronen Kari 94 385 0,8 %
10largest shareholders tot 7 088 923 58,9 %
Total of nominee-registered 80 216 0,7 %
Others 4 869 090 40,4 %
Total 12 038 229 100,0 %
STATEMENT OF CHANGES IN GROUP EQUITY (TEUR)
Share Share Equity Unrestr. Retained Total
Capital premium account equity earnings
account fund
EQUITY 1.1.2005 897 9 642 0 0 6 10546
Granted option rights 7 7
rights
Result for the period 1 220 1 220
Total gains and losses 1 220 1 220
Distribution of divid. -1 066 -1 066
Subscription issue 11 11
Emission gain 91 91
Transfer from share
share premium account -9 500 9 500
EQUITY 31.12.2005 908 234 9 500 0 167 10 809
EQUITY 1.1.2006 908 234 9 500 0 167 10 809
Granted option rights 6 6
Result for the period 123 123
Total gains and losses 123 123
Subscription issue 2 2
Directed issue 84 298 382
Emission gain 1 930 1 930
Return of equity -3 538 -3 538
EQUITY 31.12.2006 994 2 164 5 962 298 296 9 714
All forecasts and estimates presented in the Financial Statements
Report are based on the current views of the management on the
economic environment and outlook. Results could differ from those
implied as a result of, among other factors, changes in economic
market and competitive conditions, changes in the regulatory
environment and other government actions. The Financial Statements is
unaudited.
SOLTEQS FINANCIAL INFORMATION IN 2007
Solteq Plcs financial information bulletins in 2007 have been
scheduled as follows:
- Interim report 1-3/2007 Wednesday 25.4.2007
- Interim report 1-6/2007 Wednesday 8.8.2007
- Interim report 1-9/2007 Wednesday 24.10.2007
More investor information on Solteqs website at www.solteq.com.
Additional information:
Managing Director Hannu Ahola
Telephone +358 20 1444 211 or +358 40 8444 211
E-mail hannu.ahola@solteq.com
CFO Antti Kärkkäinen
Telephone +358 20 1444 393 or +358 40 8444 393
E-mail antti.karkkainen@solteq.com
Distribution:
Helsinki Stock Exchange
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