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ComTel SpA — Earnings Release 2015
Feb 18, 2016
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Earnings Release
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COMPTEL CORPORATION FINANCIAL STATEMENTS RELEASE FOR 2015
COMPTEL CORPORATION FINANCIAL STATEMENTS RELEASE FOR 2015
Stock exchange release
18th February 2016 at 8.00 am
COMPTEL CORPORATION FINANCIAL STATEMENTS RELEASE FOR 2015
-
Revenue grew by 14% to all time high of EUR 97.7 million for 2015
-
Order backlog increased by 20.2%, order intake exceeded significantly net
sales
Key figures for the Fourth Quarter of 2015:
-- Net sales EUR 32.6 million (Q4 2014: 26.8), growth 21.7%
-- Operating result EUR 5.6 million (3.9), growth 42.3%
-- Net profit EUR 4.0 million (4.3), change -6.8%
-- Earnings per share EUR 0.04 (0.04)
-- Order backlog EUR 66.3 million (55.2), growth 20.2%
Key figures for the Full Year of 2015:
-- Net sales EUR 97.7 million (2014: 85.7), growth 14%
-- Operating result EUR 8.5 million (8.3), growth 2%
-- Net profit EUR 4.5 million (5.5), change -17.2%
-- Earnings per share EUR 0.04 (0.05)
Dividend proposal
Board of Directors proposes to the Annual General Meeting that dividend of 0.03
EUR per share will be paid for 2015
Outlook
Comptel expects the 2016 net sales to continue to grow and operating profit to
be in the range of 8-14% of revenue.
Characteristically a significant part of Comptel’s operating profit and net
sales is generated in the second half of the year.
These statements for 2015 are based on the company's audited financial
statements. The Auditor's Report was issued 17 February, 2016.
Juhani Hintikka, President and CEO:
” We are very pleased with our growth for 2015. In the fourth quarter our net
sales and order intake were highest in our history and we closed the year with
highest ever backlog. During 2015 we invested significantly in developing the
new FWD software-as-a-service and bringing that to market. We also invested
significantly in increased delivery capacity and in sales and marketing as well
as in our current portfolio. This is to strengthen our growth in future years.
These investments for future growth did lower our relative profitability during
2015, but we still managed to improve our operating profit from last year.
Going forward we are looking to improve our relative profitability further.
Geographically Europe and APAC grew significantly during 2015. Revenue in
Europe was on an all time high level both in the fourth quarter and the full
year. Our strategy execution and progress especially in Europe was excellent
during 2015 and we built a solid future especially with our global operator
customers there.
Both business units grew significantly in the fourth quarter. Transformation
projects for our operator customers continued to be a major market driver for
our growth. We managed to position Comptel solidly as a challenger with
innovative offering and that drove demand.
Our FlowOne solution’s excellent competitiveness and strengthening market
position impacted significantly our revenue growth. Intelligent Data unit did
also well and performed 30 upgrades to the new Data Refinery platform. We also
signed four new integrated analytics customers in Intelligent Data Business
Unit. The new digital sales channel solution FWD was launched in the fourth
quarter. Customers have shown significant interest towards FWD and we expect to
win several new customers in 2016.
Due to new ruling by the tax regulators regarding withholding tax, taxes from
2014 were corrected in 2015. This adjustment of EUR 0.3 million had a negative
impact on net profit for the full year.
During 2015, we secured 29 significant orders valued over EUR 0.5 million. In
2014, the comparable number of orders was 26.”
Business review 2015
In the fourth quarter, Comptel’s net sales increased by 21.7 percent compared
to previous year and were EUR 32.6 million (26.8). Sales in both business units
were strong in the fourth quarter, Intelligent Data growing 19.8 per cent and
Service Orchestration 23.4 per cent compared to last year. In the fourth
quarter, most of the solutions within the business units grew compared to
previous year’s fourth quarter as well as compared to third quarter in 2015.
Full year net sales increased by 14 per cent compared to previous year the main
driver being Comptel FlowOne solution sales. Service Orchestration sales grew
by 20.1 per cent compared to previous year.
The operating profit for 2015 was EUR 8.5 million (8.3), which is 8.7 per cent
of net sales (9.7). The relative lower profitability was driven by significant
investments in development of FWD cloud solution, investment in delivery
capacity as well as current product portfolio.
The operating result for 2015 was EUR 8.5 million (8.3), which is 8.7 per cent
of net sales (9.7). The relative lower profitability was driven by investments
in development of FWD solution, a future platform, investment in delivery
capacity as well as current product portfolio.
Financial income/expenses were EUR -1.1 million for the full year 2015 (-0.9).
This was due to fluctuation in exchange rates between EUR and other currencies
during the year.
For 2015, profit before taxes was EUR 7.6 million (7.4) and net profit for the
period was EUR 4.5 million (5.5). Earnings per share for the period was EUR
0.04 (0.05).
The consolidated effective tax rate in 2015 was 40.5 per cent (26.6).In the
latest tax decision the tax authorities changed the interpretation on
withholding taxes for certain countries. Due to this decision a onetime
adjustment for 2014 taxes was made in 2015 which had a 4.2 per cent negative
impact on the effective tax rate. The new decision also increased 2015
effective tax rate by 3.3 per cent.
The tax expense for the financial year was EUR 3.1 million (2.0), including EUR
1.2 million of withholding taxes (0.5).
Order backlog for the next 12 months increased from the previous year and was
EUR 66.3 million (55.2) at the end of the financial year. The company’s total
backlog including multi-year orders is over EUR 90 million (at the end of 2014
over EUR 70 million).
Comptel strategy
Life is digital moments. Digital demand will be driven by “Generation Cloud”
customers and enterprises interacting with millions of digital applications.
The Internet of Things with billions of connected devices will further
accelerate the digital demand leading to exploding data volumes. Future mobile
and fixed networks will provide hyper speeds and undergo a transformation from
hardware to software. Network functions will be virtualised. Mounting
complexity will require orchestration of business flows and virtualised
resources.
Comptel mission is to perfect the digital moments and translate them into
business moments by connecting digital demand and supply.
The Comptel strategy focuses on providing solutions for digital and
communications service providers in two major areas – Intelligent Data and
Service Orchestration. The Intelligent Data business delivers solutions and
services to customers for monetising data and turning big data into intelligent
automated actions. The Service Orchestration business area provides solutions
and services for business flow orchestration and mastering the digital buying
experience.
Comptel’s strategic target is to establish itself as a leading software vendor
for connecting digital demand and supply.
Strategy execution is based on six strategic objectives: solutions with unique
value, thought leadership, customer excellence, new markets, leverage by
partners and inspired people.
Comptel´s marketing strategy strives for industry thought leadership on
carefully selected themes and topics which are: Digital Buying Experience,
Monetising more with less time, Orchestration of service and order flows from
ground to cloud and intelligent fast data. The essence of Comptel’s thought
leadership is captured in the book “Operation Nexterday” that was launched in
Barcelona’s Mobile World Congress in March 2015.
Business areas
Net sales, 10-12 2015 10-12 Change % 1-12 2015 1-12 2014 Change
EUR million 2014 %
Europe 15.7 11.8 32.7 40.1 35.4 13.4
Asia Pacific 8.9 5.7 55.2 29.6 24.8 19.6
Middle East and 4.8 6.4 -25.4 16.8 16.8 -0.1
Africa
Americas 3.2 2.8 15.4 11.2 8.8 27.8
Total 32.6 26.8 21.8 97.7 85.7 14.0
Operating result,
EUR million
Europe 12.0 7.7 55.6 27.5 19.5 40.8
Asia Pacific 4.8 2.4 97.7 15.5 14.5 6.6
Middle East and 1.8 3.3 -44.6 5.6 7.3 -23.0
Africa
Americas 1.6 1.4 13.0 5.6 4.0 40.8
Unallocated costs -14.6 -10.9 33.7 -45.8 -37.0 23.6
Total 5.6 3.9 42.3 8.5 8.3 2.0
Operating result,
% of net sales
Europe 76.1 64.9 - 68.6 55.3 -
Asia Pacific 54.2 42.6 - 52.3 58.7 -
Middle East and 38.4 51.7 - 33.3 43.2 -
Africa
Americas 49.1 50.1 - 50.1 45.5 -
Total 17.2 14.7 - 8.7 9.7 -
In the fourth quarter, both Europe and Asia Pacific net sales grew
significantly compared to the fourth quarter of last year. For the full year,
net sales grew significantly in all regions except in Middle East and Africa.
For the full year operating result in Europe increased significantly. Key
driver for this was sales mix and project execution. Also Americas operating
profit increased due to project execution as well as sales mix.
In 2015, Comptel received 29 significant orders (26): Service Orchestration
received 16 orders (eleven for the FlowOne Fulfillment solution, five for
FlowOne Provisioning and Activation) and Intelligent Data received six orders
(four for Data Refinery, one for Fastermind and one for the Monetizer
solution). Seven orders were multi-solution orders across business units. As
significant orders Comptel reports sold projects and licenses with a minimum
value of EUR 0.5 million.
Net sales breakdown, 10-12 10-12 Change % 1-12 1-12 Change
EUR million 2015 2014 2015 2014 %
Project & License business 24.0 18.8 27.9 63.3 52.1 21.4
Recurring business 8.6 8.0 7.2 34.4 33.6 2.5
Total 32.6 26.8 21.8 97.7 85.7 14.0
Project and license sales increased significantly in the fourth quarter as well
as in the full year compared to previous year’s comparable periods. This was
due to winning new projects during the year. Also Support and Maintenance
revenue grew in the fourth quarter.
Net sales breakdown, 10-12 10-12 Change 1-12 1-12 Change
EUR million 2015 2014 % 2015 2014 %
Intelligent Data 14.6 12.2 19.8 42.5 39.7 7.1
Service Orchestration 18.0 14.6 23.4 55.2 46.0 20.1
Total 32.6 26.8 21.8 97.7 85.7 14.0
Both business units grew significantly in the fourth quarter compared to
previous year. For the full year both business units grew but especially the
Service Orchestration unit was the main driver for the growth.
Financial Position
EUR million 31 Dec 2015 31 Dec 2014 Change
%
Statement of financial position total 86.4 77.6 11.3
Liquid assets 3.0 9.4 -67.6
Trade receivables, gross 42.1 28.9 45.6
Bad debt provision -1.6 -1.2 39.0
Trade receivables, net 40.5 27.7 45.9
Accrued income 10.0 10.9 -8.7
Deferred income related to partial debiting 3.3 4.4 -25.8
Interest-bearing debt 7.2 7.6 -5.2
Equity ratio, per cent 52.4 52.4 -0.1
The balance sheet total on 31 December 2015 was EUR 86.4 million (77.6), of
which liquid assets amounted to EUR 3.0 million (9.4). Operating cash flow for
the full year was EUR 0.6 million (10.0). For the fourth quarter the operating
cash flow was EUR -0.2 million (3.5). Cashflow was lower in 2015 due to the
investments during the year.
Trade receivables were EUR 40.5 million (27.7) at the end of the period. The
trade receivables increased significantly at the end of the year due to strong
net sales in later part of the year. Accrued income was EUR 10.0 million
(10.9). Deferred income related to partial debiting was EUR 3.3 million (4.4).
Comptel has a EUR 25 million credit facility arrangement consisting of EUR 20
million revolving credit facility and EUR 5 million overdraft capacity on
current bank account. Out of this arrangement Comptel had EUR 5 million of the
revolving credit facility and EUR 2 million of the overdraft capacity
outstanding at the end of the period. The credit facility is valid until July
2018.
The equity ratio was 52.4 per cent (52.4) and the gearing ratio was 11.1 per
cent (-5.4).
Research and Development (R&D)
EUR million 10-12 10-12 Change 1-12 1-12 Change
2015 2014 % 2015 2014 %
Direct R&D expenditure 7.5 5.1 45.6 20.3 16.8 20.9
Capitalisation of R&D expenditure -1.5 -1.3 8.2 -5.2 -4.7 9.7
according to IAS 38
R&D depreciation and impairment 1.4 1.2 20.1 5.5 4.9 12.1
charges
R&D expenditure, net 7.4 5.0 49.7 20.6 17.0 21.5
Direct R&D expenditure, % of net 22.9 19.2 - 20.8 19.6 -
sales
Direct R&D expenditure represented 20.8 per cent (19.6) of net sales in 2015.
The focus of Comptel’s R&D expenditure was in the further development of
solutions in the main product areas, Service Orchestration and Intelligent
Data. Development is targeted both to secure the recurring revenue with
competitive products and to win new markets by giving customers unique value
with new innovations. Service Orchestration’s FlowOne Fulfillment solution is
developed as a suite of orchestration elements that manage the service and
business flows from ground to cloud. Intelligent Data’s Data Refinery captures
data-in-motion and uses embedded intelligence to refine it for automated,
in-the-moment decisions and actions. Monetizer is the business policy and
charging tool that allows the rapid innovation and design of rich communication
and data service offers. Data Fastermind embeds artificial intelligence,
prediction and machine learning capabilities into all solutions.
In these areas Comptel seeks global thought leadership in solving the business
challenges of operators and digital communications service providers.
Additionally Comptel has started to invest in new products around the digital
buying experience.
During 2015, Comptel continued to develop its current offering, and twelve
major software releases were launched in these respective product areas.
Investments
EUR million 10-12 10-12 Change 1-12 1-12 Change
2015 2014 % 2015 2014 %
Gross investments in property, plant 0.2 0.4 -55.5 0.6 0.7 -24.6
and equipment and intangible assets
The investments comprised of devices, software and furnishings and were funded
through cash flow from operations.
Personnel
31 Dec 2015 31 Dec 2014 Change
%
Number of employees at the end of period 742 660 12.4
1-12 1-12 Change
2015 2014 %
Average number of personnel during the period 723 665 8.7
The number of personnel increased due to investments in R&D and delivery
capacity. In the fourth quarter, personnel expenses were 47.2 per cent of net
sales (47.4). For the full year, personnel expenses were 47.9 per cent of net
sales (48.2).
At the end of the period, 29.5 per cent (30.2) of the personnel were located in
Finland, 25.5 per cent (28.8) in Malaysia, 11.3 per cent (7.1) in India, 10.2
per cent (10.9) in Bulgaria, and 23.5 per cent (23.0) in other countries where
Comptel operates.
Comptel’s share
The closing share price of the period was EUR 1.83 (0.99). Comptel’s market
value at the end of the period was EUR 198.1 million (105.8).
Comptel share 10-12 10-12 Change 1-12 1-12 Change
2015 2014 % 2015 2014 %
Shares traded, million 16.6 7.1 133.5 41.2 27.8 48.4
Shares traded, EUR million 24.7 5.0 393.8 52.9 16.5 219.7
Highest price, EUR 1.93 1.00 93.0 1.93 1.00 93.0
Lowest price, EUR 1.15 0.55 109.1 0.84 0.48 75.0
Of Comptel’s outstanding shares, 6.0 per cent (5.1) were nominee registered or
held by foreign shareholders at the end of the period.
At the end of the period the company held 118,507 of its own shares, which is
0.11 per cent of the total number of shares. The total counter-book value of
the shares held by the company was EUR 2,341.
4,508,260 share options were distributed during the year 2015.
The Board of Directors decided 9 September 2015, based on the authorization
received from the Annual General Meeting held on 9 April 2015, to grant in
total 3,478,260 options for a new incentive program to the CEO. The options
give the right to subscribe for 3,478,260 company shares in total.
Out of the subscription rights 1,739,130 are marked with symbol 2015A and
1,739,130 are marked with symbol 2015B. According to the rules of the incentive
plan, the share subscription price is EUR 0.92, which is the volume-weighted
average price of the company's share in NASDAQ OMX Helsinki during 12 August
2015 - 8 September 2015 deducted with 20 %.
Corporate Governance
The Annual General Meeting (AGM) of Comptel Corporation was held on 9th of
April 2015. The resolutions of the Annual General Meeting as well as the
minutes of the Annual General Meeting can be found at company’s web page
www.comptel.com.
The AGM authorised the Board of Directors to decide on share issues amounting
to a maximum of 21,400,000 new shares and on repurchase or conveying of the
company's own shares up to a maximum number of 10,700,000 shares. The
authorisations are valid until 30 June 2016. However, the authorisation to
implement the company's share-based incentive programs is valid five years from
the AGM resolution.
A separate stock exchange release about the authorisations given and other
decisions made by the Annual General Meeting was published 9 April 2015.
Events after the reporting period
There were no significant events after the reporting period.
Near-term risks and uncertainties
Comptel develops dynamic end-to-end solutions for leading operators globally in
the telecom field. This requires Comptel to understand correctly the trends
taking place in its business environment and the needs of its customers and
resellers by each region. Failure to identify market conditions, address
customers’ needs and develop its products in a timely manner may significantly
undermine the growth of Comptel’s business and its profitability.
Characteristics of Comptel’s field of industry are significant quarterly
variations of net sales and profit, which are related to customers’ purchasing
behaviour and the timing of major single deals.
Comptel’s business consists of deliveries of large productised IT systems, and
the value of a single project may be several million euros. Therefore, the
credit risk associated with a single project or an individual customer may be
significant. Furthermore, some of Comptel’s customers operate in countries
where the political or financial climate can be unstable which in part may
increase credit risk.
Comptel operates globally and so it is exposed to risks arising from different
currency positions. Exchange rate changes between the euro, which is the
company’s reporting currency, and the US dollar, UK pound sterling and
Malaysian ringgit affect the company’s net sales, expenses and net profit.
The application process to prevent Comptel’s double taxation is still pending
with the Ministry of Finance in Finland. However, the process between the
states is very slow and the timing of a decision is hard to forecast. The
interpretation of tax treaties may result in different views between the
countries in question. This could mean that the double taxation will prevail.
Comptel has also applications for return of withholding taxes in other
countries but they are subject to local legal processes, which take time to get
completed.
The risks and uncertainties of Comptel are described in more detail in the
company’s financial statements and the Board of Directors’ report for 2015.
Business outlook and markets
It is more and more evident that both the business environment and technology
in telecommunications business are entering a new disruption point. New
competition from global technology giants like Facebook, Google and Apple is
challenging operators in their core business and forcing them to adapt to the
new business models and look for cost-efficiency and flexibility in their
operations. We expect this trend to continue also during the next few years and
to bring Comptel considerable opportunity by connecting to this new demand.
Currently key operator investment are driven by the vastly increasing data
demand and targeted to increase the network bandwidth. Roll-outs of 4G and
fibre networks are going on worldwide and operators have a strong need to
harvest this capacity also with new money-generating services. Importance of
customer experience and fierce competition both inside the telecoms industry
and against the disruptors requires that operators improve their business
processes continuously and pay special attention to the cost structure.
Traditionally the role of Comptel’s software has been in the management of
services and assigning network capacity to end users. The on-going shift of
networks towards new cloud-based software technologies and the resulting
tighter integration of network and business layers will mean that the
significance and value of the management software will increase. This is
expected to bring new and more extensive business opportunities for Comptel
Service Orchestration and Intelligent Data solutions.
In the search of new revenue sources operators need more flexibility in
integration towards other business domains. To open up these new channels they
need to introduce more sophisticated sales, order management and charging
systems. The customers in this market position require both more high value
services and new project deliveries that will create opportunity for business
growth.
Changes in Reporting
The company will be changing its segment reporting from 2016 onwards. The new
segments will be Business Units: Intelligent Data and Service Orchestration.
Comparable numbers for 2015 will be published in March 2016.
Outlook
Comptel expects the 2016 net sales to continue to grow and operating profit to
be in the range of 8-14% of revenue.
Characteristically a significant part of Comptel’s operating profit and net
sales is generated in the second half of the year.
Board of Directors Proposal for the Disposal of Profits
The Group parent company’s distributable equity on 31 December 2015 was EUR
7,692,598 (6,740,529).
Board of Directors proposes to the Annual General Meeting that dividend of 0.03
per share will be paid for 2015.
COMPTEL CORPORATION
Board of Directors
Additional information:
Mr Juhani Hintikka, President and CEO, tel. +358 9 700 1131
Mr Tom Jansson, CFO, tel. +358 40 700 1849
FINANCIAL TABLES
The full year financial information in this stock exchange release is based on
the company’s audited financial statements. The auditor’s report was issued on
the 17th of February 2016. The accounting policies and methods of computation
adopted in the financial statements are consistent with those of the annual
financial statements for the year ended 2014.
All figures in the financial report have been rounded and consequently the sum
of the individual figures can deviate from the sum figure. The interim report
is unaudited.
Consolidated Statement of Comprehensive 1 Jan 1 Jan – 1 Oct – 1 Oct –
Income (EUR 1,000) – 31 Dec 31 Dec 31 Dec
31 Dec 2014 2015 2014
2015
Net sales 97,728 85,714 32,611 26,792
Other operating income 63 282 40 1
Materials and services -5,546 -3,905 -1,556 -1,050
Employee benefits -46,76 -41,294 -15,383 -12,689
4
Depreciation, amortisation and impairment -6,756 -6,263 -1,672 -1,501
charges
Other operating expenses -30,25 -26,225 -8,432 -7,614
1
-89,31 -77,686 -27,043 -22,853
7
Operating profit/loss 8,474 8,311 5,608 3,940
Financial income 1,392 1,478 91 599
Financial expenses -2,541 -2,398 -65 -364
Share of results of associated companies 287 45 287 45
Profit/loss before income taxes 7,612 7,436 5,921 4,220
Income taxes -3,085 -1,975 -1,958 31
Profit/loss for the period 4,527 5,461 3,963 4,251
Other comprehensive income:
Other comprehensive income to be
reclassified to profit or loss in
subsequent periods
Translation differences 189 522 75 -152
Cash flow hedges 14 -227 -505 -227
Income tax relating to components of other -3 45 101 45
comprehensive income
Total other comprehensive income 200 341 -329 -333
Total comprehensive income for the period 4,728 5,802 3,634 3,917
Profit/loss attributable to:
Equity holders of the parent company 4,527 5,461 3,963 4,251
Total comprehensive income attributable to:
Equity holders of the parent company 4,728 5,802 3,634 3,917
Shareholders of the parent company:
Earnings per share, EUR 0.04 0.05 0.4 0.04
Earnings per share, diluted, EUR 0.04 0.05 0.4 0.04
Consolidated Statement of Financial Position (EUR 31 Dec 2015 31 Dec 2014
1,000)
Assets
Non-current assets
Goodwill 2,646 2,646
Other intangible assets 12,837 13,435
Tangible assets 1,152 1,596
Investments in associates 960 673
Available-for-sale financial assets 87 87
Deferred tax assets 7,685 5,880
Other non-current receivables 646 613
26,013 24,929
Current assets
Trade and other current receivables 56,929 43,043
Current tax asset 403 315
Cash and cash equivalents 3,030 9,352
60,363 52,710
Total assets 86,376 77,638
Equity and liabilities
Equity attributable to equity holders of the
parent company
Share capital 2,141 2,141
Fund of invested non-restricted equity 1,698 401
Fair value reserve -510 -182
Translation differences -171 -699
Retained earnings 34,165 31,685
Total equity 37,324 33,346
Non-current liabilities
Deferred tax liabilities 2,572 2,669
Non-current financial liabilities 92 1,257
2,664 3,926
Current liabilities
Provisions 1,090 1,325
Current financial liabilities 7,075 6,305
Trade and other current liabilities 38,222 32,737
46,388 40,367
Total liabilities 49,052 44,292
Total equity and liabilities 86,376 77,638
Consolidated Statement of Cash Flows 1 Jan – 31 1 Jan – 31
(EUR 1,000) Dec Dec
2015 2014
Cash flows from operating activities
Profit/loss for the period 4,527 5,461
Adjustments:
Non-cash transactions or items that are not part of cash 7,834 6,095
flows from operating activities
Interest and other financial expenses 273 620
Interest income -88 -16
Income taxes 3,069 1,996
Change in working capital:
Change in trade and other current receivables -14,240 -6,573
Change in trade and other current liabilities 5,031 6,744
Change in provisions -277 -262
Interest and other financial expenses paid -273 -146
Interest received 12 -109
Income taxes paid and tax returns received -5,245 -3,789
Net cash from operating activities 623 10,021
Cash flows from investing activities
Proceeds from sale of business operations - 300
Investments in tangible assets -456 -735
Investments in intangible assets -102 -
Investments in development projects -5,176 -4,721
Proceeds from the sale of tangible assets 7 39
Change in other non-current receivables -3 -82
Net cash used in investing activities -5,730 -5,199
Cash flows from financing activities
Dividends paid -1,907 -1,073
Acquisition of own shares - -312
Proceeds from new shares 497 -
Proceeds from share options 800 -
Proceeds from borrowings 27,935 8,500
Repayment of borrowings -28,063 -9,544
Lease payments -243 -81
Change in other non-current liabilities - -100
Net cash used in financing activities -981 -2,609
Net change in cash and cash equivalents -6,116 2,213
Cash and cash equivalents at the beginning of the period 9,352 6,542
Cash and cash equivalents at the end of the period 3,030 9,352
Change -6,322 2,809
Effects of changes in foreign exchange rates -205 309
Consolidated Statement of Changes in Equity
Equity attributable to equity holders of the parent company
EUR Share Other Translation Fair value Retained Total
1,00 capital reserves differences reserve earnings
0
Equit 2,141 401 -1,219 - 27,600 28,924
y at
31
Dec
2013
Divid -1,073 -1,073
ends
Acqui -311 -311
sitio
n of
Comp
any’s
own
shar
es
Share 263 263
-base
d
comp
ensat
ion
Prior -256 -256
year
corr
ectio
n *
Total 521 -182 5,461 5,800
comp
rehen
sive
inco
me
for
the
peri
od
Equit 2,141 401 -698 -182 31,684 33,346
y at
30
Sep
2014
Consolidated Statement of Changes in Equity
Equity attributable to equity holders of the parent company
EUR 1,000 Share Other Translation Fair value Retain Total
capital reserves differences reserve ed
earnin
gs
Equity at 2,141 401 -698 -182 31,684 33,346
31 Dec 2014
Dividends -2,139 -2,139
Shares issued 497 497
Share-based 800 428 1,228
compensation
Dissolution of a 7 7
subsidiary
Prior year -342 -342
correction \*
Total comprehensive 189 11 4,527 4,727
income for the
period
Equity at 2,141 1,698 -509 -171 34,165 37,324
30 Sep 2015
*Prior year expenses were corrected directly to Retained Earnings during the
reporting periods.
Notes
- Application of new or amended standards and interpretations
Comptel has adopted the new or amended standards and interpretations, effective
for the financial years beginning on or after 1 January 2015. However those
have not had an impact on the consolidated financial statements.
- Segment information
Net sales by segment
EUR 1,000 1 Jan – 1 Jan – 1 Oct – 1 Oct –
31 Dec 2015 31 Dec 2014 31 Dec 2015 31 Dec 2014
Europe 40,095 35,358 15,719 11,847
Asia-Pacific 29,607 24,752 8,868 5,713
Middle East and Africa 16,795 16,814 4,810 6,447
Americas 11,231 8,790 3,214 2,786
Group total 97,728 85,714 32,611 26,792
Operating profit/loss by segment
EUR 1,000 1 Jan – 1 Jan – 1 Oct – 1 Oct –
3 Dec 31 Dec 31 Dec 31 Oct
2015 2014 2015 2014
Europe 27,515 19,538 11,960 7,687
Asia-Pacific 15,483 14,526 4,805 2,431
Middle East and Africa 5,600 7,271 1,847 3,332
Americas 5,631 3,998 1,578 1,397
Group unallocated expenses -45,755 -37,023 -14,581 -10,907
Group operating profit/loss total 8,474 8,311 5,608 3,940
Financial income and expenses -1,149 -918 34 235
Share of result of associated 287 45 287 45
companies
Group profit/loss before income 7,612 7,436 5,930 4,220
taxes
- Income tax
Income tax expense according to the statement of comprehensive income for the
period was EUR 3,085 thousand (EUR 1,975 thousand).
In 2006, the Board of Adjustment of the Tax Office for Major Corporations
refused to accept the crediting of taxes withheld at source in taxation of 2004
and 2005.
The application process to prevent Comptel’s double taxation is still pending
with the Ministry of Finance in Finland. However, the process between the
states is very slow and the timing of a change is hard to forecast. The
interpretation of tax treaties may result in different views between the
countries in question. This could mean that the double taxation will prevail.
According to the Board of Adjustment’s decision currently in force, Comptel
Corporation has expensed taxes withheld at source amounting to EUR 1,167
thousand in the accounting year 2015 (EUR 468 thousand).
- Tangible assets
EUR 1,000 1 Jan – 1 Jan –
31 Dec 2015 31 Dec 2014
Additions 456 740
Disposals -150 -1,456
- Related party transactions
The Comptel Group have a related party relationship with its associate, the
Board of Directors, the Executive Board and also with people and companies
under Comptel management’s influence.
Transactions which have been entered into with related parties are as follows:
EUR 1,000 1 Jan – 1 Jan –
31 Dec 2015 31 Dec 2014
Associate
Other operating income - 1
Interest income 8 8
EUR 1,000 31 Dec 2015 31 Dec 2014
Associate
Non-current receivables 201 113
Remuneration to key management
Key management personnel compensation includes the employee benefits of the
members of the Board of Directors and the Executive Board.
EUR 1,000 1 Jan – 31 Dec 1 Jan – 31 Dec
2015 2014
Salaries and other short-term employee 2,169 2,131
benefits
Share-based payments 725 131
Total 2,894 2,262
During the period a new incentive program was decided for the CEO, in which
against his own investment new options of 3,478,260 were granted.
Guarantees and other commitments
EUR 1,000 31 Dec 2015 31 Dec 2014
Guarantees 9 7
- Commitments
Minimum lease payments on non-cancellable office facilities and other operating
leases are payable as follows:
EUR 1,000 31 Dec 2015 31 Dec 2014
Less than one year 2,161 2,439
Between one and five years 1,218 2,962
Total 3,379 5,401
The group had no material capital commitments for the purchase of tangible
assets at 31 December 2015 and 31 December 2014.
- Contingent liabilities
EUR 1,000 31 Dec 2015 31 Dec 2014
Bank guarantees 2,728 2,881
Corporate mortgages 200 200
EUR 1,000 31 Dec 2015 31 Dec 2014
Contingent liabilities on behalf of others
Guarantees 29 34
- Fair values of financial assets and liabilities
EUR 1,000 Book Fair Book Fair
value value value value
31 Dec 31 Dec 31 Dec 31 Dec
2015 2015 2014 2014
Financial assets
Financial assets at fair value through
profit or loss
Forward contracts (level 2) - - 25 25
Available-for-sale financial assets 87 87 87 87
(level 3))
Non-current trade receivables 1,872 1,872 1,466 1,466
Current trade receivables 40,232 40,232 27,449 27,449
Other current receivables 7,133 7,133 4,624 4,624
Cash and cash equivalents 3,030 3,030 9,352 9,352
Financial liabilities
Financial liabilities at fair value
through profit or loss
Forward contracts (level 2) 138 138 847 847
Trade payables and other liabilities 38,020 38,020 32,713 32,713
Non-current loans from financial 33 33 1,078 1,081
institutions
Non-current finance lease liabilities 58 58 179 179
Current loans from financial 5,044 5,056 5,984 6,095
institutions
Current overdraft facility 1,918 1,918 - -
Current finance lease liabilities 112 112 259 259
Other current liabilities - - 63 63
- Key figures
Financial summary 1 Jan – 1 Jan –
31 Dec 31 Dec
2015 2014
Net sales, EUR 1,000 97,728 85,714
Net sales, change % 14.0 3.7
Operating profit/loss, EUR 1,000 8,474 8,311
Operating profit/loss, change % 2.0 13.7
Operating profit/loss, as % of net sales 8.7 9.7
Profit/loss before taxes, EUR 1,000 7,612 7,436
Profit/loss before taxes, as % of net sales 7.8 8.7
Return on equity, % 12.8 17.5
Return on investment, % 18.3 19.5
Equity ratio, % 52.4 52.4
Gross investments in tangible and intangible assets, EUR 558 740
1,0001)
Gross investments in tangible and intangible assets, as 0.6 0.9
% of net sales
Capitalisations according to IAS 38 to intangible 5,176 4,720
assets, EUR 1,000
Research and development expenditure, EUR 1,000 20,299 16,791
Research and development expenditure, 20.8 19.6
as % of net sales
Order backlog, EUR 1,000 66,344 55,213
Average number of employees during the period 723 665
Interest-bearing net liabilities, EUR 1,000 4,137 -1,789
Gearing ratio, % 11.1 -5.4
1) The figure does not include investments in development projects.
Per share data 1 Jan – 1 Jan –
31 Dec 2015 31 Dec 2014
Earnings per share (EPS), EUR 0.04 0.05
EPS diluted, EUR 0.04 0.05
Equity per share, EUR 0.34 0.31
Dividend per share, EUR 0.03 0.02
Dividend per earnings, % 72.7 39.5
Effective dividend yield, % 1.6 2.0
P/E ratio 43.4 19.4
Adjusted number of shares at the end of the period 108,395,409 107,421,270
of which the number of treasury shares 118,507 464,739
Outstanding shares 108,276,902 106,956,531
Adjusted average number of shares during the period 107,370,551 107,284,900
Average number of shares, dilution included 109,640,245 107,625,526
- Definition of key figures
Operating margin % = Operating profit/loss x100
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Net sales
Profit margin (before income taxes) = Profit/loss before taxes x100
%
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------------------------------------
Net sales
Return on equity % (ROE) = Profit/loss x100
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------------------------------------
Total equity (average during year)
Return on investment % (ROI) = Profit/loss before taxes + x100
financial expenses
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------------------------------------
Total equity + interest bearing
liabilities (average during the
year)
Equity ratio % = Total equity x100
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------------------------------------
Statement of financial position
total – advances received
Gross investments in tangible and = Gross investments in tangible and x100
intangible assets, as % of net intangible assets
sales
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------------------------------------
Net sales
Research and development = Research and development x100
expenditure, as % of net sales expenditure
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------------------------------------
Net sales
Gearing ratio % = Interest-bearing liabilities – x100
cash and cash equivalents
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------------------------------------
Total equity
Earnings per share (EPS) = Profit/loss for the financial year
attributable to equity
shareholders
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------------------------------------
Average number of outstanding
shares for the financial year
Equity per share = Equity attributable to the equity
holders of the parent company
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------------------------------------
Adjusted number of shares at the
end of period
Dividend per share = Dividend
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------------------------------------
Adjusted number of shares at the
end of period
Dividend per earnings % = Dividend per share x100
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------------------------------------
Earnings per share (EPS)
Effective dividend yield % = Dividend per share x100
------------------------------------
------------------------------------
Share closing price at end of
period
P/E ratio = Share closing price at end of
period
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------------------------------------
Earnings per share (EPS)