Innofactor Plc Stock Exchange Release August 9, 2011 at 8:30 Finnish time
Summary
Innofactor group’s key figures for April 1 – June 30, 2011:
- Net sales EUR 4,360 thousand (2010: 2,148), increase of 103.0%
- Earnings before interest, taxes, depreciation and amortization (EBITDA), EUR 275* thousand (2010: 78), increase of 252.6%
- EBITDA percentage 6.3%* (2010: 3.6%)
- Earnings before interest and taxes (EBIT) EUR 142* thousand (2010: 8)
- EBIT percentage 3.3%* (2010: 0.4%)
Innofactor group’s key figures for January 1 – June 30, 2011:
- Net sales EUR 8,303 thousand (2010: 4,358), increase of 90.5%
- Earnings before interest, taxes, depreciation and amortization (EBITDA), EUR 425* thousand (2010: 426), decrease of 0.2%
- EBITDA percentage 5.1%* (2010: 9.8%)
- Earnings before interest and taxes (EBIT) EUR 161* thousand (2010: 287)
- EBIT percentage 1.9%* (2010: 6.6%)
* The figures include one-off costs related to the relisting and the combination of shares to the amount of about EUR 200 thousand during January 1 – March 31, 2011 and to the amount of about EUR 100 thousand during April 1 – June 30, 2011.
The future outlook for Innofactor remains the same. The group’s net sales for 2011 are expected to be about EUR 17 million, which will be an increase of about 70% on 2010. In addition, earnings before interest, taxes, depreciation and amortization (EBITDA) are expected to be higher both in euros and in percentage than in 2010 (2010: EUR 979 thousand and 9.9%)
Key figures of the group
The figures presented in this interim report have not been audited.
| mo. 4-6 /2011 | mo. 4-6 /2010 | Change | mo. 4-6 /2011 | mo. 4-6 /2010 | Change | mo. 4-6 /2010 | |
| Net sales, EUR thousand | 4,360 | 2,148 | +103.0% | 8,303 | 4,358 | +90.5% | 9,862 |
| Earnings before interest, taxes, depreciation and amortization (EBITDA), EUR thousand* | 275 | 78 | +252.6% | 425 | 426 | -0.2% | 979 |
| percentage of net sales* | 6.3% | 3.6% | 5.1% | 9.8% | 9.9% | ||
| Earnings before interest and taxes (EBIT), EUR thousand* | 142 | 8 | +1 675.0% | 161 | 287 | -43.9% | 702 |
| percentage of net sales* | 3.3% | 0.4% | 1.9% | 6.6% | 7.1% | ||
| Earnings before taxes, EUR thousand* | 139 | 7 | +1 885.7% | 155 | 285 | -45.6% | 696 |
| percentage of net sales* | 3.2% | 0.3% | 1.9% | 6.5% | 7.1% | ||
| Earnings, EUR thousand* | 108 | 5 | +2 060.0% | 121 | 207 | -41.5% | 505 |
| percentage of net sales* | 2.5% | 0.2% | 1.5% | 4.7% | 5.1% | ||
| Equity, EUR thousand | 12,399 | 2,328 | +432.6% | 12,399 | 2,328 | +432.6% | 12,278 |
| Return on equity** | 3.5% | 0.8% | 1.9% | 16.8% | 6.8% | ||
| Return on investment** | 4.6% | 1.4% | 2.6% | 23.3% | 9.7% | ||
| Net gearing | -6.1% | -19.4% | -6.1% | -19.4% | -14.0% | ||
| Equity ratio | 75.6% | 51.9% | 75.6% | 51.9% | 68.6% | ||
| Balance sheet total, EUR thousand | 17,967 | 4,811 | +273.5 % | 17,967 | 4,811 | +273.5% | 19,517 |
| Research and development, EUR thousand*** | 654 | 1,246 | 1,173 | ||||
| percentage of net sales*** | 15.0% | 15.0% | 11.9% | ||||
| Personnel on average during the review period | 175 | 102 | +71.6% | 173 | 95 | +82.1% | 108 |
| Personnel at the end of the review period | 185 | 144 | +28.5% | 185 | 144 | +28.5% | 171 |
| Number of shares at the end of the review period**** | 29,261 800 | 19,314 925 | +51.5% | 29,261 800 | 19,314 925 | +51.5% | 29,261 849 |
| Earnings per share (EUR)**** | 0.0037 | 0.0003 | +1,133.3% | 0.0041 | 0.0121 | -66.1% | 0.0274 |
| Shareholders’ equity per share (EUR)**** | 0.424 | 0.121 | +250.4% | 0.424 | 0.121 | +250.4% | 0.420 |
* The figures include one-off costs of related to the relisting and the combination of shares to the amount of about EUR 200 thousand during January 1 – March 31, 2011 and to the amount of about EUR 100 thousand during April 1 – June 30, 2011.
** The return on equity and the return on investment as percentages have been adjusted to correspond with the 12-month period.
**** There are no comparison data for the corresponding review period in as Innofactor did not draft comparable interim reports in 2010 due to the reverse acquisition in accordance with IFRS 3.
**** The number of shares before December 27, 2010 presented in the table has been calculated from the number of Innofactor Oy shares due to the reverse acquisition in accordance with IFRS 3. In accordance with the decision of the Innofactor Plc’s Annual General Meeting on April 28, 2011, twenty old shares were consolidated into one new share (registered in the Trade Register on May 7, 2011) which reduced the total number of shares to 1/20 of the previous number. The key figures presented in the table have been adjusted to correspond with the current number of shares.
Reporting
Innofactor Plc operates on a single segment and mainly in Finland, offering software, systems and related services. No distribution of net sales or earnings by segment or geographical area is therefore presented.
CEO Sami Ensio’s review:
During April 1 – June 30, 2011, Innofactor’s net sales grew by 103.0% from the corresponding period last year. This increase was largely based on acquisitions made in 2011, and about 34% of the increase was organic growth. Growth for the whole year is expected to be about 70%.
Research and development continued to focus on new versions of old products and Innofactor’s first cloud solutions in particular. Research and development costs recognized in the profit and loss statement were EUR 654 thousand during April 1 – June 30, 2011 (there is no comparison figure available for the same period in 2010; total research and development costs in 2010 were EUR 1,173 thousand).
Earnings before interest, taxes, depreciation and amortization (EBITDA) during April 1 – June 30, 2011 were EUR 275 thousand (6.3%) and earnings before interest and taxes (EBIT) were EUR 142 thousand (3.3%),
In May 2011, the company launched a cost-effectiveness program described in the previous interim report, which places special emphasis on unifying and improving practices related to project management and resource allocation and cutting other business costs. The program has already helped to increase productivity in June 2011 already, when the company’s business results were clearly higher than in the previous months. Cutting other business costs is expected to reduce costs from July 2011 on. Profitability for the rest of the year is expected to improve due to our strong order book and the planned decrease in research and development from the first half of the year.
In June, Innofactor revamped its brand, which involved a renewed customer promise called Your Partner. Your Solution.™, which underlined the company’s long-term collaboration with its customers.
Innofactor continues to seek potential strategic partnerships in Finland and neighboring countries. The group will seek growth, which can be organic or based on mergers or acquisitions.
Market outlook and business environment
In June 2011, Innofactor was awarded the Microsoft Country Partner of the Year, which reinforced the company's position as one of Microsoft’s key partners in Finland.
On July 10, 2011, at the Microsoft Worldwide Partner Conference in Los Angeles, USA, Innofactor launched its new cloud services. These services drew a fair amount of attention, and Innofactor believes there is a significant international market for them.
Innofactor’s market outlook is positive.
Espoo, August 9, 2011
INNOFACTOR PLC
Board of Directors
Additional information:
Sami Ensio, CEO, Innofactor Plc
tel. +358 50 584 2029
sami.ensio@innofactor.com
Distribution:
NASDAQ OMX Helsinki
Main media
www.innofactor.fi
Financial releases in 2011
The interim reports of Innofactor Plc will be published as follows:
- Interim report January-September on November 1, 2011, at 8:30 Finnish time
