AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Ease2pay N.V.

Earnings Release Jul 29, 2008

3832_iss_2008-07-29_68e9f2d4-e5b5-4010-a29b-0fb09082bb3c.pdf

Earnings Release

Open in Viewer

Opens in native device viewer

Te verspreiden op 29 juli 2008 U.S. Eastern Standard Time 01.30h. U.K. 06.30h. Continental Time 07.30h.

DOCDATA N.V.: Realisatie van strategie 'Visie 2010: "Gear to Growth"' ligt vol op koers

Omzet stijgt met 8% tot € 35,7 miljoen

Gecombineerde omzet van commerce, payments en fulfilment activiteiten internet service bedrijf docdata stijgt met meer dan 50%

Alle divisies dragen bij aan het bedrijfsresultaat (EBIT)

Sterke orderportefeuille IAI zal voor het grootste deel worden afgeleverd in het tweede halfjaar 2008

30 juni 2008

33,1
2,6
35,7
9,4
%
92,8
7,2
100,0
26,4
30 juni 2007

28,2
4,8
33,0
%
85,3
14,7
100,0
8,0 24,3
1,3 4,1 0,3 0,8
0,1 2,3 1,3 27,3
1,4 4,0 1,6 4,7
- - 0,2 0,6
1,0 2,9 1,6 4,9
0,15 0,23
0,15 0,22
40,7 39,6
19,3 22,3
56,3%
47,4%

Resultaat en Financiële positie halfjaar 2008 (geen accountantscontrole toegepast)

Belangrijkste aspecten van het eerste halfjaar 2008

Het internet service bedrijf docdata laat een sterke groei zien. Deze groei is gerealiseerd door zowel nieuwe klanten als door de groei van bestaande klanten. De totale online shopping markt groeit al jaren en zal door blijven groeien. Een grote groep productcategorieën die online wordt gekocht bestaat uit consumenten elektronica, kleding en schoenen, hardware, boeken, muziek, dvd's en tickets. Het aantal consumenten dat online koopt neemt toe, maar ook het totale orderbedrag wordt steeds hoger. Naar verwachting zullen ook steeds meer merken en retailers online shops gaan openen.

Alle vier de divisies binnen het internet service bedrijf docdata hebben in het eerste halfjaar van 2008 bijgedragen aan het bedrijfsresultaat. De integratie van de verschillende bedrijven die het afgelopen jaar zijn aangekocht ligt goed op koers. De verschillende organisaties zijn gereed voor een verdere groei welke in de komende zes maanden vooral autonoom gerealiseerd zal worden. Wel zullen er de komende maanden kosten gemaakt worden om geografische groei, mogelijk middels acquisities, in 2009 te realiseren.

Michiel Alting von Geusau: "Maandelijks verwerken wij ondertussen ruim één miljoen transacties voor onze klanten. Deze transacties bestaan uit gerealiseerde orders door onze weboplossingen, succesvolle verwerking van betalingen door eindconsumenten en verzonden orders voor onze klanten. Wij verwachten dat het aantal transacties dat wij verwerken verder zal groeien in de komende jaren."

Aangezien de meeste afleveringen van Technologiebedrijf IAI voor het tweede halfjaar van 2008 staan gepland, heeft dit als consequentie dat omzet en bedrijfsresultaat voor het eerste halfjaar lager uitvallen. In de eerste helft van 2008 is hard gewerkt om ervoor te zorgen dat de bestelde machines succesvol uitgeleverd kunnen worden in de tweede helft van 2008. Inmiddels heeft in juli 2008 de laatste aflevering voor de Oekraïne succesvol plaatsgevonden.

IAI heeft in de eerste helft van 2008 nieuwe toepassingen uitontwikkeld, zoals bijvoorbeeld het kunnen gebruik maken van inkjet printing voor een kleurenfoto bij het personaliseren van paspoorten. Ook is een begin gemaakt met de ontwikkeling en levering van systemen die kunnen worden ingezet in het productieproces van zonnecellen en zijn er contacten gelegd met meerdere grote spelers in de solar markt. Hiermee zal IAI ook in de tweede helft van 2008 doorgaan teneinde een positie in deze markt te verwerven. Tevens blijft IAI op zoek naar bedrijven die deze toetreding tot de solar markt kunnen ondersteunen en versnellen.

Uit het in de Appendix van de bijlage 'Financial Information for the half-year ended 30 June 2008' opgenomen kasstroomoverzicht blijkt dat DOCDATA N.V. in het eerste halfjaar 2008 een cash flow uit operationele activiteiten van € 1,0 miljoen heeft gerealiseerd. Het kasoverschot van € 3,5 miljoen per 31 december 2007 is in het eerste halfjaar 2008 afgenomen tot een kastekort ('net debt position') van € 2,1 miljoen per 30 juni 2008. In het eerste halfjaar van 2008 is voor € 6,6 miljoen aangewend ter financiering van:

  • acquisitie van dochterondernemingen: in totaal € 1,3 miljoen voor het verwerven van (aanvullende) aandelenbelangen van 20% in docdata commerce B.V. in Waalwijk, 40% in Pegasus e-Business GmbH (betreft docdata fulfilment) in Münster, Duitsland, en 61,2% in Hitura Limited (na acquisitie geheten 'docdata commerce Limited') in Londen, het Verenigd Koninkrijk;
  • investeringen in materiële en immateriële vaste activa (€ 1,5 miljoen);
  • uitkering van dividend over het jaar 2007 aan de aandeelhouders (€ 1,9 miljoen);
  • inkoop van eigen aandelen (€ 1,9 miljoen).

DOCDATA N.V. heeft haar sterke financiële positie met een solvabiliteitsratio van 47,4% per 30 juni 2008 (31 december 2007: 52,3%) gehandhaafd.

Vooruitzichten

Michiel Alting von Geusau: "Door de combinatie van markten waarin wij actief zijn, is de omzet en het resultaat van DOCDATA minder gevoelig voor de huidige negatieve tendensen ten aanzien van de conjunctuur en het verminderd consumentenvertrouwen. Wij blijven dus positief over de ontwikkelingen binnen onze onderneming en zijn ervan overtuigd dat wij unieke en betrouwbare oplossingen bieden voor onze klanten".

Overzicht per onderdeel

Internet service bedrijf docdata

In de eerste helft van 2008 hebben docdata commerce, docdata payments en docdata fulfilment een sterke groei laten zien. Hierbij heeft het feit dat docdata een geïntegreerde oplossing kan bieden voor bedrijven die via het internet willen verkopen absoluut bijgedragen. In de markt wordt docdata, mede dankzij de nieuwe corporate identity, inmiddels ook steeds vaker "herkend" als het internet service bedrijf.

In het eerste halfjaar van 2008 heeft docdata verder geïnvesteerd in de ontwikkeling van webgebaseerde IT-systemen waarmee aan de klanten een optimale service kan worden verleend. Tevens is geïnvesteerd in een substantiële uitbreiding van onze fulfilment capaciteit, zowel in Nederland, Duitsland als het Verenigd Koninkrijk.

Tevens zijn in het eerste halfjaar van 2008 belangrijke nieuwe contracten met klanten getekend welke in het tweede halfjaar van 2008 zullen bijdragen aan omzet en resultaat. Een tweetal voorbeelden hiervan zijn V&D en TNT. Voor de distributie van haar online verkopen heeft V&D gekozen voor docdata fulfilment. Docdata fulfilment is blij met deze ontwikkeling. Naast de bestaande artikelen gaat docdata fulfilment nu ook fashion en aanverwante artikelen verwerken. Hiermee realiseert docdata fulfilment twee van de doelstellingen van 2008: uitbreiding van de dienstverlening aan (r)etailers en een bekende speler worden in de fashion sector. Zowel V&D als TNT hebben gekozen voor de online betaaloplossingen van docdata payments.

Technologiebedrijf IAI

Het zwaartepunt van de installatie en levering van systemen in de orderportefeuille ligt duidelijk in het tweede halfjaar van 2008. Installatie- en leverdata worden hoofdzakelijk bepaald door de vraag van opdrachtgevers en IAI heeft maar beperkte mogelijkheden om de leveringen over het jaar te spreiden. Omzet en resultaat van IAI zijn daardoor in het eerste halfjaar van 2008 achtergebleven bij de cijfers over de overeenkomstige periode van 2007, maar zullen in de tweede helft van 2008 een ander beeld geven.

In de loop van 2008 zijn systeemorders in de Security Printing markt voor Algerije, Zuid-Afrika en Zweden gekregen. In alle gevallen gaat het hierbij om recent ontwikkelde of in ontwikkeling zijnde systemen: BookMaster One systemen voor het personaliseren van paspoorten met een polycarbonaat houderpagina, BookMaster One systemen voor het personaliseren van paspoorten met een papieren houderpagina en de nieuwe SheetMaster Flex en WebMaster Flex systemen, die in staat zijn documenten gedrukt in vellen of rollen te bewerken. De nadruk bij de verkopen ligt bij nieuwe systemen hetgeen bevestigt dat de productdiversificatie van IAI voor de Security Printing markt aanslaat. De afleveringen in relatie tot deze orders zijn voor een deel in de tweede helft van 2008 gepland.

In het kader van 'Visie 2010: "Gear to growth"' is eerder gemeld dat IAI actief zal worden in de markt van productiesystemen voor zonne-energie. In het eerste halfjaar van 2008 heeft IAI veel contacten aangeknoopt in deze nieuwe markt. Via het leggen van deze contacten wil IAI ook in deze markt systemen gaan leveren en zodoende autonome groei realiseren. Tevens beoogt IAI in deze markt spelers te identificeren die in aanmerking

komen voor intensieve samenwerking en/of overname waardoor een extra groei-impuls kan worden gerealiseerd.

Waarderingsgrondslagen

Met ingang van 1 januari 2005 wordt de geconsolideerde jaarrekening van DOCDATA N.V. opgesteld volgens de International Financial Reporting Standards zoals aanvaard binnen de Europese Unie (hierna genoemd IFRS). Voor een overzicht van de belangrijkste waarderingsgrondslagen onder IFRS wordt verwezen naar het Jaarverslag 2007, dat verkrijgbaar is bij de vennootschap en eveneens is te downloaden vanaf de website van de onderneming, www.docdata.com, onder Corporate.

Het halfjaarbericht is opgesteld in overeenstemming met IAS 34 ('Interim Financial Reporting').

Accountantscontrole

De in dit halfjaarbericht en de bijlagen opgenomen cijferopstellingen zijn niet gecontroleerd door de externe accountant.

Bijlage met financiële informatie

Voor een gedetailleerde behandeling van de halfjaarcijfers 2008 wordt verwezen naar de bijlage 'Financial Information for the half-year ended 30 June 2008' met Appendix.

Bijeenkomst voor financiële pers en analisten

Het management van DOCDATA N.V. zal vandaag, dinsdag 29 juli 2008, de halfjaarcijfers 2008 bespreken in een bijeenkomst, waarvoor zowel de financiële pers als analisten zijn uitgenodigd, die zal worden gehouden om 10.30 uur in de Mercurius zaal van het Financieel Nieuwscentrum Beursplein 5 van NYSE Euronext Amsterdam (Beursplein 5, 1012 JW Amsterdam, telefoon 020-5505505).

------------------------------------------

DOCDATA N.V. is sinds 1997 genoteerd aan de NYSE Euronext en bestaat uit twee verschillende organisaties, docdata en Industrial Automation Integrators.

Internet service bedrijf docdata (www.docdata.com) is een Europese marktleider met een sterke basis in Nederland, Duitsland en het Verenigd Koninkrijk, en bestaat uit vier divisies:

  • docdata commerce
  • docdata payments
  • docdata fulfilment
  • docdata media

Technologiebedrijf Industrial Automation Integrators (www.iai.nl) is een hightech machinebouwer gespecialiseerd in het ontwikkelen en bouwen van machines voor het zeer nauwkeurig en met hoge snelheid bewerken van verschillende soorten producten en materialen. Klanten bevinden zich wereldwijd in de volgende sectoren:

  • beveiligen en personaliseren van waardedocumenten
  • bewerken van verpakkingsmaterialen
  • bewerken van zonnecellen
  • bewerken van andere materialen (o.a. film ondertiteling)

Waalwijk, Nederland, 29 juli 2008

Verdere informatie: DOCDATA N.V., M.F.P.M. Alting von Geusau, CEO, Tel. 0416 631 100

Financial Information

The financial information is prepared in accordance with International Financial Reporting Standards as adopted by the European Union (hereafter IFRS).

Revenue

(in thousands, except percentage figures) Half-year 2008 Half-year 2007
Revenue by company % %
Internet service company docdata 33,118 92.8 28,161 85.3
Technology company IAI 2,575 7.2 4,835 14.7
Total 35,693 100.0 32,996 100.0
  • Revenue of Internet service company docdata increased € 5.0 million (18%) in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007. Excluding revenue of the docdata media division of € 15.6 million in the half-year ended 30 June 2008 (HY2007: € 16.6 million), the total revenue of the three other divisions docdata commerce, docdata payments and docdata fulfilment increased € 6.0 million (52%) in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007. The acquisitions docdata commerce Ltd. (formerly named 'Hitura Ltd.') and Pegasus e-Business GmbH, which were not yet consolidated in the financial statements for the half-year ended 30 June 2007, and docdata payments B.V. (formerly named 'Triple Deal B.V.') that was only included in the consolidation for the half-year ended 30 June 2007 for one month after acquiring the controlling share interest per 25 May 2007, have together contributed for € 2.6 million to this revenue increase, while revenue increased for € 3.4 million (30%) due to autonomous growth.
  • Technology company IAI's lower revenue is caused by lower revenue from (completed contract) deliveries of security systems in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007, first-time revenue from business in the solar market in the halfyear ended 30 June 2008, in combination with a changed mix of revenues from deliveries of subassemblies, service, packaging contract research and development, and production royalties in the passport market segment. Most deliveries of security systems in 2008 are planned for the second half-year of 2008.

Gross profit

(in thousands, except percentage figures) Half-year 2008 Half-year 2007
Gross profit (margin) by company
(margin as % of revenue by company)
% %
Internet service company docdata 8,583 25.9 6,134 21.8
Technology company IAI 848 32.9 1,897 39.2
Total 9,431 26.4 8,031 24.3

Internet service company docdata realised an increase in gross profit of € 2.4 million (40%) in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007. The effect of changes in the consolidation for the two comparable half-years (Note: changes described under revenue) on gross profit was € 1.4 million, leaving € 1.0 million (16%) due to autonomous growth. Gross profit and gross profit margin for the three divisions docdata commerce, docdata payments and docdata fulfilment have improved predominantly by a higher activity and revenue level, enabling efficiency improvements through economies-of-scale. Also the docdata media division contributed to the increase in gross profit for a small part, through realising growth in gross profit margin from 14.6% in the half-year ended 30 June 2007 to 16.0% in the half-year ended 30 June 2008. This proves that docdata media is still successful in controlling production costs (including material expenses for polycarbonate and DVDproduction royalties, personnel expenses, depreciation expenses and overheads) in relation to developments in the average sales prices for CD and DVD.

Gross profit of Technology company IAI decreased € 1.0 million in the half-year ended 30 June 2008 compared to the half-year 30 June 2007. The gross profit margin decreased, predominantly caused by the difference in the sales mix of security systems delivered in both half-years, as well as in the mix of the other revenue categories for the previous year.

Operating profit before financing result (EBIT) and Selling & Administrative expenses

(in thousands, except percentage figures) Half-year 2008 Half-year 2007
Operating profit (margin) by company
(margin as % of revenue by company)
% %
Internet service company docdata 1,354 4.1 234 0.8
Technology company IAI 58 2.3 1,319 27.3
Total 1,412 4.0 1,553 4.7
Selling & Administrative expenses (as % of revenue)
Selling expenses 2,336 6.5 1,791 5.4
Administrative expenses 5,670 15.9 4,772 14.5
Total 8,006 22.4 6,563 19.9
Selling & Administrative expenses by company
(as % of revenue by company)
Internet service company docdata 7,216 21.8 5,985 21.3
Technology company IAI 790 30.7 578 12.0
Total 8,006 22.4 6,563 19.9
  • Operating profit of Internet service company docdata increased € 1.1 million in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007. This increase is the combined effect of an increase in gross profit of € 2.4 million and an increase in selling and administrative expenses of € 1.3 million. The effect of changes in the consolidation for the two comparable half-years (Note: changes described under revenue) on selling and administrative expenses was € 1.5 million, resulting in a combined decrease in selling and administrative expenses of the other subsidiaries in this company of € 0.2 million. The increased selling expenses and administrative expenses reflect the execution of the new strategy 'Vision 2010: Gear to Growth', where higher personnel expenses and organisational costs have been incurred to enable growth of the activity and business levels for the divisions docdata commerce, docdata payments and docdata fulfilment. In general, the increase in expenses can be explained by required investments in personnel, organisational improvements, development of IT solutions, and design and implementation of e-Solutions for new customers.
  • Operating profit of Technology company IAI decreased € 1.2 million (96%) in the half-year ended 30 June 2008 compared to the half-year ended 30 June 2007. This decrease is the combined effect of a decrease of € 1.0 million in gross profit and an increase in selling and administrative expenses of € 0.2 million. The lower EBIT margin is due to the different sales mix for both comparable half-years, with a lower gross profit margin of the revenue in the halfyear ended 30 June 2008, in combination with higher selling and administrative expenses in the half-year ended 30 June 2008. This increase in expenses is fully in line with our plans for 2008, in which we communicated higher personnel expenses and higher consultancy costs, related to the strategic entrance into the solar market.

Net financing income / (expenses)

Net financing expenses in the half-year ended 30 June 2008 amounted to € 0.1 million compared to a small net financing income in the half-year ended 30 June 2007. This decrease of € 0.1 million is predominantly caused by higher bank interest expenses in relation to the usage of the credit facilities to finance the Braywood acquisition and to finance working capital for docdata fulfilment and the Pegasus acquisition. Furthermore, the financial expenses in the half-year ended 30 June 2008 include a € 0.1 million higher foreign currency exchange loss due to the euro becoming stronger against the British pound in the second half-year 2007 and the first half-year 2008.

Income tax expense

DOCDATA's effective tax rate for the half-year ended 30 June 2008 was 20% with an income tax expense of € 0.3 million on a profit before income tax of € 1.3 million. For the half-year ended 30 June 2007 the profit from continuing operations before income tax amounted to € 1.7 million and the income tax expense amounted to € 0.3 million (effective tax rate: 17%).

The income tax expense of € 0.3 million in the half-year ended 30 June 2008 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.
  • In the United Kingdom, income taxes are recorded against a corporate income tax rate of 28.0% (2007: 30.0%).
  • In Germany, a tax charge has been recorded at a corporate income tax rate of in general 30.0% on taxable income for the German entities, taking into account lower income tax rates for some regions in Germany when and where applicable.

Profit from discontinued operation (net of income tax)

The profit from discontinued operation (net of income tax) of € 0.2 million for the half-year ended 30 June 2007 resulted from the reassessment of all existing risks at that time in relation to the termination of the former French activities of the Media Group, which were accounted for at net realisable value in the consolidated balance sheet at 31 December 2006 and were reported under assets and liabilities classified as held for sale. Reference is made to section 5.6 Discontinued operation of the Notes to the Consolidated Financial Statements for further information.

Liquidity and capital resources

The General Annual Meeting of Shareholders held on 15 May 2008 approved the proposal to distribute a dividend of € 0.25 per ordinary share outstanding (excluding own shares held by the Company), which had a decreasing impact of € 1.9 million on retained earnings within the equity of the Company in the half-year ended 30 June 2008. Furthermore, the shareholders approved in that same meeting the proposal to withdraw 308,850 shares to bring the issued share capital down to 7,000,000 shares. Completion of the procedure to formally realise this withdrawal is expected in September 2008.

In the half-year ended 30 June 2008 16,030 personnel options were exercised; 13,850 options from the 2003 series at a price of € 2.68 per share, and 2,180 options from the 2004 series at a price of € 4.48 per share. The underlying shares have been delivered by the Company from the number of own shares in possession of the Company. The proceeds of € 47 thousand have been credited to equity under reserves, as the purchase of own shares has been charged to reserves in the past. In addition, 20,741 shares were granted to the CEO in May 2008, following the approval by the General Meeting of Shareholders on 15 May 2008 of the Remuneration Report 2007. Furthermore, the Company purchased 291,584 own shares in the half-year ended 30 June 2008, for a total purchase price of € 1.9 million, to bring the number of own shares owned up to 694,502 (9.50%) shares as per 30 June 2008; the Company owns this same number of shares today.

In addition to the € 1.9 million dividend payment and the € 1.9 million share buy-back, the Group has invested a total amount of € 2.8 million in the half-year ended 30 June 2008: € 1.0 million in property, plant and equipment (mainly warehousing equipment and investment in IT infrastructure); € 0.6 million for the acquisition of an additional share interest of 20% (bringing the share interest to 80%) in docdata commerce B.V. (formerly named 'DOCdata e-Commerce Solutions B.V.'), € 0.4 million for the acquisition of an additional share interest of 40% (bringing the share interest to 70%) in Pegasus e-Business GmbH, € 0.3 million for the acquisition of a controlling share interest of 61.2% in Hitura Limited (post-acquisition name 'docdata commerce Ltd.'), and € 0.5 million in intangibles (predominantly IT development costs). These payments and investments for a total of € 6.6 million were for € 1.0 million financed from the Group's net cash flow from operating activities in the half-year ended 30 June 2008 (HY2007: € 2.5 million), including total depreciation and amortisation expenses of € 1.8 million (HY2007: € 1.9 million), for € 0.5 million from bank overdrafts and other borrowings and for € 5.1 million from the Group's net cash position. As a result of this, the Group's net cash position of € 3.5 million at 31 December 2007 has turned in the halfyear ended 30 June 2008 into a net debt position of € 2.1 million.

Waalwijk, 29 July 2008

Consolidated Financial Statements

1. Consolidated Balance Sheets

Balance sheets before appropriation of profit.

30 June
2008
31 December
2007
(in thousands)
Assets
Property, plant and equipment 7,168 7,508
Intangible assets 11,030 9,856
Investments in associates 154 459
Other investments 100 100
Trade and other receivables 169 230
Deferred tax assets 959 1,046
Total non-current assets 19,580 19,199
Inventories 5,202 3,884
Income tax receivables 996 407
Trade and other receivables 14,612 13,379
Cash and cash equivalents 300 5,586
Total current assets 21,110 23,256
Total assets 40,690 42,455
Equity
Share capital 731 731
Share premium 16,854 16,854
Translation reserves
Reserve for own shares
(541)
(3,288)
(49)
(1,625)
Retained earnings 5,318 5,932
Total equity attributable to equity holders of the parent 19,074 21,843
Minority interest 226 344
Total equity 19,300 22,187
Liabilities
Interest-bearing loans and other borrowings 1,008 1,057
Employee benefits 186 343
Deferred tax liabilities 571 653
Total non-current liabilities 1,765 2,053
Bank overdrafts
Interest-bearing loans and other borrowings
2,352
135
2,110
76
Income tax payable 256 54
Trade and other payables 16,841 15,853
Provisions 41 122
Total current liabilities 19,625 18,215
Total liabilities 21,390 20,268
Total equity and liabilities 40,690 42,455

2. Consolidated Income Statements

Half-year 2008 Half-year 2007
(in thousands, except earnings per share and average shares
outstanding)
% %
Continuing operations
Revenue 35,693 100.0 32,996 100.0
Cost of sales (26,262) (73.6) (24,965) (75.7)
Gross profit 9,431 26.4 8,031 24.3
Other operating income 21 0.1 164 0.5
Selling expenses (2,336) (6.5) (1,791) (5.4)
Administrative expenses (5,670) (15.9) (4,772) (14.5)
Other operating expenses (34) (0.1) (79) (0.2)
Operating profit before financing result 1,412 4.0 1,553 4.7
Financial income 203 0.6 171 0.5
Financial expenses (327) (0.9) (167) (0.5)
Net financing income / (expenses) (124) (0.3) 4 -
Share of profits of associates 21 0.1 173 0.5
Profit before income tax 1,309 3.7 1,730 5.2
Income tax expense (267) (0.8) (292) (0.9)
Profit from continuing operations 1,042 2.9 1,438 4.3
Discontinued operation
Profit from discontinued operation (net of income tax)
- - 177 0.6
Profit for the period 1,042 2.9 1,615 4.9
Attributable to:
Equity holders of the parent
1,044 2.9 1,626 4.9
Minority interest (2) - (11) -
Profit for the period 1,042 2.9 1,615 4.9
Weighted average number of shares outstanding
Weighted average number of shares (diluted)
6,725,000
6,985,000
7,120,000
7,301,000
Earnings per share
Basic earnings per share 0.15 0.23
Diluted earnings per share 0.15 0.22
Continuing operations
Basic earnings per share 0.15 0.20
Diluted earnings per share 0.15 0.20

3. Consolidated Statements of Cash Flows

Half-year 2008 Half-year 2007
(in thousands)
Cash flows from operating activities
Profit for the year 1,042 1,615
Adjustments for:
Depreciation and amortisation 1,847 1,918
Costs share options and delivered shares 184 131
Financial expenses 327 167
Financial income (203) (171)
Share of profits of associates (21) (173)
Income tax expense 267 292
Cash flows from operating activities before changes in
working capital and provisions 3,443 3,779
Increase / decrease in trade and other receivables and assets
held for sale (1,073) 4,860
Increase / decrease in inventories (1,318) 1,343
Increase / decrease in trade and other payables and liabilities
held for sale
Decrease / increase in provisions and employee benefits
978
(238)
(7,094)
295
Cash generated from the operations 1,792 3,183
Interest paid (210) (167)
Interest received 195 171
Income taxes paid (800) (673)
Net cash from operating activities 977 2,514
Cash flows from investing activities
Acquisition of subsidiaries (1,318) (1,846)
Acquisition of property, plant and equipment (990) (1,079)
Acquisition of intangible assets (479) (144)
Acquisition of associates and other investments (66) -
Proceeds from sale of property, plant and equipment 11 14
Net cash from investing activities (2,842) (3,055)
Cash flows from financing activities
Own shares bought (1,894) (642)
Dividends paid (1,892) (1,418)
Proceeds from bank overdrafts 377 131
Proceeds from / repayment of other borrowings 110 (72)
Proceeds from exercise of share options 47 110
Loans provided to associates - -
Net cash from financing activities (3,252) (1,891)
Net (decrease) increase in cash and cash equivalents (5,117) (2,432)
Cash and cash equivalents at the beginning of the period 5,586 5,831
Effect of exchange rate fluctuations on cash held (169) (31)
Cash and cash equivalents at the end of the period 300 3,368

4. Consolidated Statements of Shareholders' Equity

Total equity
Share Share Retained attributable to
equity holders
Minority Total
capital premium Reserves earnings of the parent interest equity
(in thousands)
Equity Statement 2007
Balance at 1 January 2007 731 16,854 625 3,978 22,188 226 22,414
Dividend distribution - - - (1,435) (1,435) (9) (1,444)
Shares bought - - (1,994) - (1,994) - (1,994)
Exercised share options - - 129 - 129 - 129
Delivered shares for remuneration - - 92 - 92 - 92
Costs share options - - 87 - 87 - 87
Translation difference - - (613) - (613) - (613)
Consolidation former associate - - - - - 128 128
Profit for the period - - - 3,389 3,389 (1) 3,388
Balance at 31 December 2007 731 16,854 (1,674) 5,932 21,843 344 22,187
Equity Statement 2008
Balance at 1 January 2008 731 16,854 (1,674) 5,932 21,843 344 22,187
Dividend distribution - - - (1,658) (1,658) (234) (1,892)
Shares bought - - (1,894) - (1,894) - (1,894)
Exercised share options - - 47 - 47 - 47
Delivered shares for remuneration - - 135 - 135 - 135
Costs share options - - 49 - 49 - 49
Translation difference - - (492) - (492) - (492)
Consolidation former associate - - - - - 118 118
Profit for the period - - - 1,044 1,044 (2) 1,042
Balance at 30 June 2008 731 16,854 (3,829) 5,318 19,074 226 19,300

5. Notes to the Consolidated Financial Statements

5.1 Accounting principles

As of 1 January 2005 DOCdata N.V. (referred to as "DOCDATA" or the "Company") has adopted the International Financial Reporting Standards as adopted by the European Union ("IFRS") in preparing the consolidated financial statements.

For a summary of the significant accounting policies under IFRS, please refer to the Company's Annual Report for the financial year ended 31 December 2007.

This interim financial report has been prepared in accordance with IAS 34 (Interim Financial Reporting).

5.2 Audit

The financial statements and reconciliations included in this report and its enclosures have not been audited by the external auditors.

5.3 Management representations

In the opinion of the management, these 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.

The results of the operations for the half-year ended 30 June 2008 are not necessarily indicative of the results for the entire financial year ending 31 December 2008.

5.4 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 segments: Internet service company docdata (consisting of the following four divisions: docdata commerce, docdata payments, docdata fulfilment and docdata media) and Technology company IAI. The segmentation for the comparable financial statements for the half-year ended 30 June 2007 has been adjusted accordingly.

5.5 Consolidation

In the consolidated financial statements for the half-year ended 30 June 2008, the following acquisitions have been consolidated as of the acquisition dates mentioned:

  • 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.

In the consolidated financial statements for the half-year ended 30 June 2007, the following acquisition has been consolidated as of the acquisition date mentioned:

docdata payments B.V. (formerly named 'Triple Deal B.V.') as of 25 May 2007 (70% share interest). The consolidated income statement for the half-year ended 30 June 2007 includes revenue and results of this subsidiary as of acquisition date. The minority interest of 30% in the equity of this subsidiary, which minority interest is owned by Conclusion Consultants B.V. for 20% and by Syllion B.V. for 10%, has been accounted for in the consolidated balance sheet under minority interest within total equity.

5.6 Discontinued operation

In the consolidated financial statements for the half-year ended 30 June 2007 and for the year ended 31 December 2007, the assets, liabilities and activities of Optical Disc de France S.A.S., (DOCdata France) formerly part of the Media Group, have been accounted for as discontinued operation. In the consolidated balance sheet at 31 December 2006, all assets and liabilities of DOCdata France have been accounted for at net realisable value and have been reported under assets classified as held for sale and liabilities classified as held for sale. In the consolidated income statements for the half-year ended 30 June 2007 and the year ended 31 December 2007, the results after income tax of DOCdata France for those periods have been reported under profit/(loss) from discontinued operation (net of income tax).

In the consolidated balance sheet at 31 December 2007, a provision for remaining risks related to the termination of the French activities was accounted for under current liabilities (€ 87 thousand). In the half-year ended 30 June 2008, this provision has been fully used for required and expected final payment of remaining liabilities. No further expenses have been accounted for in the income statement for the half-year ended 30 June 2008, and neither have any new accruals or provisions been accounted for in the balance sheet at 30 June 2008.

30 June 31 December
2008 2007
(in thousands)
Land and buildings 1,554 1,552
Machinery and equipment 3,581 3,725
Other 2,019 1,896
7,154 7,173
Under construction 14 335
Total 7,168 7,508

5.7 Property, plant and equipment

The book value for property, plant and equipment has decreased with € 0.3 million in the half-year ended 30 June 2008, resulting from depreciation charges for € 1.5 million exceeding capital expenditure of € 1.2 million (inclusive of € 0.2 million for property, plant and equipment acquired through new participations).

5.8 Intangible assets

30 June
2008
31 December
2007
(in thousands)
Goodwill 7,424 6,212
Customer contracts 806 899
IT platforms 2,436 2,605
10,666 9,716
Under construction 364 140
Total 11,030 9,856

The book value for intangible assets has increased with € 1.2 million in the half-year ended 30 June 2008, due to the following:

  • goodwill paid (€ 1.5 million) for the acquisitions of the majority share in Pegasus e-Business GmbH and Hitura Limited, as well as for the acquisition of an additional 20% share interest in docdata commerce B.V.;
  • additions for the development of IT platforms (€ 0.5 million, including under construction);
  • amortisation charges for customer contracts and IT platforms (€ 0.4 million in total);
  • foreign currency loss (€ 0.4 million) on the valuation of the intangible assets with an original value in British pounds (i.e. related to the Braywood and Hitura acquisitions).

5.9 Investments in associates

The book value for investments in associates has decreased with € 0.3 million in the half-year ended 30 June 2008, predominantly as a result from the consolidation of Pegasus e-Business GmbH starting 1 January 2008. In the consolidated balance sheet at 31 December 2007 the DOCDATA share interest of 30% at that time in Pegasus was valued at cost of € 0.3 million under investments in associates.

Talk to a Data Expert

Have a question? We'll get back to you promptly.