Earnings Release • Jul 19, 2007
Earnings Release
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To be distributed on Thursday 19 July 2007 U.S. Eastern Standard Time 01.30h. / U.K. 06.30h. GMT / Continental Time 07.30h. CET
| Half-year ended at | ||||
|---|---|---|---|---|
| (in millions, except percentage figures and per share data) | 30 June 2007 | 30 June 2006 (restated) |
||
| € | % | € | % | |
| Revenue | 33.0 | 100.0 | 27.1 | 100.0 |
| Gross Profit | 8.0 | 24.3 | 6.0 | 22.1 |
| Operating profit before financing income (EBIT) from continuing operations |
1.6 | 4.7 | 1.8 | 6.6 |
| Loss from discontinued operation (net of income tax) | 0.2 | 0.6 | (0.5) | (2.0) |
| Profit for the half-year | 1.6 | 4.9 | 0.4 | 1.4 |
| EBITDA (continuing operations) | 3.5 | 10.5 | 3.3 | 12.2 |
| Net cash from operating activities | 2.5 | 7.6 | 1.0 | 3.4 |
| Average number of shares outstanding (millions) | 7.12 | 7.02 | ||
| Net cash from operating activities per share | 0.35 | 0.15 | ||
| Basic earnings per share | 0.23 | 0.06 | ||
| Basic earnings per share (continuing operations) | 0.20 | 0.13 | ||
| Balance sheet total | 39.6 | 36.1 | ||
| Equity | 22.3 | 21.7 | ||
| Solvency ratio (Equity / Balance sheet total) | 56.3% | 60.1% |
The transition which DOCdata started beginning of 2006, based on the new strategy 'Vision 2010: Gear to Growth', has been further developed in the first half-year of 2007; firstly through autonomous developments and secondly through realised acquisitions.
| Revenue | HY2007 | HY2006 | growth |
|---|---|---|---|
| (in thousands, except percentage figures) | € | € | % |
| e-Solutions Group Industrial Automation Integrators Media Group Total |
11,524 4,835 16,637 32,996 |
4,731 4,395 18,006 27,132 |
+ 144% + 10% -/- 8% + 22% |
Total DOCdata revenue increased 22%, predominantly through the strong growth of the e-Solutions Group. IAI shows only a slight increase in revenue and the decrease in revenue for the Media Group is kept relatively small.
During the first half-year of 2007, the focus of the DOCdata management has been on the further implementation of the strategy 'Vision 2010: Gear to Growth', with the following main topics:
As earlier announced, 2006 and 2007 are transitional years in which DOCdata will transform from a mainly production oriented company to an innovative service company. In addition, DOCdata has started in the first half-year of 2007 the transition from a mainly internally oriented company to a more externally oriented company, with a central focus on the development of a clear and recognisable Corporate Identity. As part of this, DOCdata intends to change the name of Triple Deal into DOCdata e-Financial Services and the name of Braywood into DOCdata e-Fulfilment. During the second half-year of 2007, DOCdata will also position the total e-Solutions Group more clearly in the market.
Due to the transition, which brings along additional expenses, the operating income (before financing income) for the first half-year of 2007 has slightly decreased compared to the first half-year of 2006. However, gross profit and profit for the half-year have clearly improved. Also for the second half-year of 2007, management expects additional expenses due to the realisation of the desired transition.
The cash flow statement in the Appendix to the attached enclosure 'Financial Information' shows that DOCdata has realised net cash from operating activities of € 2.5 million in the first half-year of 2007. In addition, the cash surplus position has decreased in the first half-year of 2007 with € 2.6 million to € 1.5 million at 30 June 2007 (31 December 2006: € 4.1 million cash surplus). This cash has predominantly been spent in the first half-year of 2007 to finance the acquisition of the additional share interest of 40% in Triple Deal B.V. (€ 1.8 million), investments in property, plant and equipment and intangibles (€ 1.2 million), distribution to the shareholders of the 2006 dividend (€ 1.4 million) and the purchase of own shares (€ 0.6 million). DOCdata has maintained a strong financial position with a solvency ratio of 56.3% at 30 June 2007 (31 December 2006: 47.8%; 30 June 2006: 60.1%).
The issued share capital of DOCdata N.V. per 30 June 2007 consists of 7,308,850 ordinary shares with a nominal value of € 0.10 each. DOCdata N.V. currently holds 230,268 (3.15%) of these issued ordinary shares, which are kept in order to fund the share options schemes. In the first half-year of 2007, DOCdata purchased a total of 100,294 own shares for an average purchase price of € 6.40 per share. Shares owned by the Company are not entitled to any distribution of profit.
The implementation of the strategy 'Vision 2010: Gear to Growth' for the e-Solutions Group is on track and will be further developed in the second half-year of 2007, firstly by adding new e-Solutions and secondly by further developing existing e-Solutions. In addition, DOCdata will use the second half-year of 2007 to give further shape to the strategy for IAI.
For a more detailed overview, please refer to the enclosure 'Vision 2010: Gear to Growth' added to the press release of 16 February 2006 and to the PowerPoint-presentation for the General Meeting of Shareholders of 10 May 2007, which are both available through the website of DOCdata.
As of 1 January 2005 DOCdata N.V. has adopted the International Financial Reporting Standards as adopted by the European Union (IFRS) in preparing the consolidated financial statements. For an overview of the significant accounting policies under IFRS, please refer to the 2006 Annual Report that is available at the Company and can also be downloaded from the Company's website www.docdata.com.
The half-year financial report has been prepared in accordance with IAS 34 (Interim Financial Reporting).
As earlier announced, 2007 forms a transitional year in which the new strategy will be further implemented. Management of DOCdata expects therefore that this will also influence the 2007 operating income from continuing activities, as extra expenses will have to be made also in the second half-year of 2007 to implement the new strategy. Furthermore, the 2007 operating income from continuing activities will depend on:
DOCdata e-Solutions Group offers a total solution for companies that want to be active on the internet. These services include amongst others the total management and execution of the logistic processes, the management and control of payments, and the development and management of web shops and web tools.
At 30 June 2007, DOCdata e-Solutions Group mainly consists of the following companies:
The revenue of the distribution activities (DOCdata E-commerce Fulfillment) increased with approximately 50% in the first half-year of 2007 as a result of the growth of existing clients, the addition of new clients, and since DOCdata manages the handling of transport invoices for some clients.
The revenue of Industrial Automation Integrators (IAI) B.V. increased 10% compared to the first half-year of 2006. A few large projects contributed substantially to this revenue; the delivery of a banknote-perforation-system to Goznak, the Russian state owned printing company, and the long expected delivery of a BookMaster220 system to Ukraine. For this last mentioned project, IAI's client is of the opinion that final decisions have been taken to the benefit of our client, which imply that the completion of this project is not expected to lead to any further problem. Our client has therefore ordered the delivery of a BookMasterOne system. The total project comprises the delivery of one BookMaster220 and two BookMasterOne systems.
During the first half-year of 2007, the development of a new strategy for IAI has been initiated, also with the assistance of external advisors. These activities will continue and it is expected that further announcements can be made during the second half-year of 2007 on the outcome of this process.
Also the first half-year of 2007 is characterised by very competitive market conditions, whereby both the CD- and DVD-market show a continued decreasing trend.
Despite these conditions, the Media Group in the United Kingdom and in the Benelux has succeeded to close the first half-year of 2007 with a small positive operating income through a continuous focus on high delivery reliability, quality, efficiency improvements and cost reductions. The subsidiaries in Germany and the United Kingdom have also made an important contribution to the implementation in these countries of the new strategy 'Vision 2010: Gear to Growth' in the field of e-Solutions.
The financial statements and reconciliations included in this half-year report and its enclosures have not been audited by the external auditors.
For a detailed review of the 2007 half-year results please refer to the attached enclosure 'Financial Information' with Appendix.
Today, 19 July 2007, management of DOCdata will discuss the 2007 half-year results in a meeting for which both financial press and analysts are invited, to be held at 10.30AM Amsterdam time in the Hermes room of the Financieel Nieuwscentrum Beursplein 5 of Euronext Amsterdam (Beursplein 5, 1012 JW Amsterdam, +31-20-5505505).
Waalwijk, The Netherlands, 19 July 2007 – DOCdata N.V. (Euronext Amsterdam: DOCD) Website of the Company: www.docdata.com
Further information: DOCdata N.V. M.F.P.M. Alting von Geusau CEO Tel. +31 416 631 100
The financial information is prepared in accordance with International Financial Reporting Standards as adopted by the European Union (hereafter IFRS). The financial information in the income statement for the six months' period ended 30 June 2006 has been restated for the accounting and reporting of DOCdata France, formerly part of the Media Group, as discontinued operation. This has been indicated in the tables below with "six months' period ended 30 June 2006 (restated)".
| (in thousands, except percentage figures) | Six months' period ended 30 June 2007 |
Six months' period ended 30 June 2006 (restated) (*) |
||
|---|---|---|---|---|
| Revenue by division | € | % | € | % |
| Media Group | 16,637 | 50.4 | 18,006 | 66.4 |
| e-Solutions Group | 11,524 | 34.9 | 4,731 | 17.4 |
| Industrial Automation Integrators | 4,835 | 14.7 | 4,395 | 16.2 |
| Total | 32,996 | 100.0 | 27,132 | 100.0 |
(in thousands, except percentage figures) Six months' period ended 30 June 2007 Six months' period ended 30 June 2006 (restated) Gross profit by division € % € % Media Group 2,423 30.2 2,811 46.9 e-Solutions Group 3,710 46.2 1,330 22.2 Industrial Automation Integrators 1,897 23.6 1,858 30.9 Total 8,030 100.0 5,999 100.0
(*) "six months' period ended 30 June 2006 (restated)" refers to the financial information for the six months' period ended 30 June 2006 after presenting DOCdata France as discontinued operation
| (percentage figures) | Six months' period ended 30 June 2007 |
Six months' period ended 30 June 2006 (restated) |
|---|---|---|
| Gross profit margin by division (as % of revenue by division) | % | % |
| Media Group | 14.6 | 15.6 |
| e-Solutions Group | 32.2 | 28.1 |
| Industrial Automation Integrators | 39.2 | 42.3 |
| Total | 24.3 | 22.1 |
| (in thousands, except percentage figures) | Six months' period ended 30 June 2007 |
Six months' period ended 30 June 2006 (restated) |
|||
|---|---|---|---|---|---|
| Other operating income and expenses (as % of revenue) | € | % | € | % | |
| Other operating income | 164 | 0.5 | 73 | 0.3 | |
| Other operating expenses | (79) | (0.2) | - | - | |
| Total | 85 | 0.3 | 73 | 0.3 |
Other operating income and other operating expenses for the six months' periods ended 30 June 2007 and 2006 predominantly relate to releases of expenses accrued for in previous years or charges for expenses from previous years not accrued for in the balance sheets per the end of the previous financial years. For both comparable reporting periods, other operating income and expenses only include small income and expense amounts.
| (in thousands, except percentage figures) | Six months' period ended 30 June 2007 |
Six months' period ended 30 June 2006 (restated) |
||
|---|---|---|---|---|
| S&A (as % of revenue) | € | % | € | % |
| Selling expenses Administrative expenses |
1,791 4,772 |
5.4 14.5 |
1,503 2,789 |
5.5 10.3 |
| Total | 6,563 | 19.9 | 4,292 | 15.8 |
| S&A by division (as % of revenue by division) | € | % | € | % |
| Media Group | 2,484 | 14.9 | 2,685 | 14.9 |
| e-Solutions Group | 3,501 | 30.4 | 1,064 | 22.5 |
| Industrial Automation Integrators | 578 | 12.0 | 543 | 12.4 |
| Total | 6,563 | 19.9 | 4,292 | 15.8 |
| (in thousands, except percentage figures) | Six months' period ended 30 June 2007 |
Six months' period ended 30 June 2006 (restated) |
|---|---|---|
| Operating profit by division | € | € |
| Media Group | 23 | 159 |
| e-Solutions Group | 211 | 306 |
| Industrial Automation Integrators | 1,319 | 1,315 |
| Total | 1,553 | 1,780 |
| Operating profit margin by division (as % of revenue by division) | % | % |
| Media Group | 0.1 | 0.9 |
| e-Solutions Group | 1.8 | 6.5 |
| Industrial Automation Integrators | 27.3 | 29.9 |
| Total | 4.7 | 6.6 |
Net financing income decreased from € 0.1 million during the six months' period ended 30 June 2006 to nearly zero during the six months' period ended 30 June 2007. This decrease is predominantly caused by higher bank interest expenses in relation to the financing during the six months' period ended 30 June 2007 of the Braywood acquisition. The amounts for financial income and financial expenses have both increased in relation to the new consolidated subsidiaries of the e-Solutions Group (Braywood, Triple Deal, DOCdata E-commerce Fulfillment Germany and DOCdata e-Commerce Solutions).
DOCdata's effective tax rate for the first six months' period ended 30 June 2007 was 17% with an income tax expense of € 0.3 million on a profit from continuing operations before tax of € 1.7 million. For the six months' period ended 30 June 2006 the profit from continuing operations before tax amounted to € 1.9 million and the income tax expense amounted to € 0.9 million (effective tax rate: 50%).
The income tax expense of € 0.3 million for the first six months' period ended 30 June 2007 is the result of the following tax treatments of the results per country:
The profit/(loss) from discontinued operation (net of income tax) only relates to net profit/(loss) amounts for both comparable periods resulting from the applied accounting treatment for DOCdata France per the end of each comparable period. For the six months' period ended 30 June 2006, the net loss of € 0.5 million fully relates to the total operational net loss of the French activities during that period. For the six months' period ended 30 June 2007 a net profit of € 0.2 million has been accounted for, resulting from the reassessment of all existing risks in relation to the termination of the French activities, 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.
During the six months' period ended 30 June 2007, the Company has invested € 1.8 million for the acquisition of an additional share interest of 40% in Triple Deal B.V. (above the interest of 30% which was already acquired in March 2006), € 1.1 million in property, plant and equipment (mainly warehousing equipment and investment in IT hard- and software) and € 0.1 million for the acquisition of intangibles (predominantly IT development costs). Total depreciation and amortisation expenses during the six months' period ended 30 June 2007 amount to € 1.9 million (six months' period ended 30 June 2006: € 1.9 million).
During the first six months' period ended 30 June 2007 25,510 personnel options were exercised; 2,050 options from the 2002 series at a price of € 3.05 per share, 800 options from the 2003 series at a price of € 2.68 per share, and 22.660 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 € 0.1 million have been credited to equity under reserves, as the purchase of own shares has been charged to reserves in the past. In addition, 14,259 shares were granted to the CEO in June 2007, following the approval by the General Meeting of Shareholders on 10 May 2007 of the Remuneration Report 2006. Furthermore, the Company has purchased 100,294 own shares, for a total purchase price of € 0.6 million, during the six months' period ended 30 June 2007 to bring the number of own shares owned up to 230,268 (3.15%) shares as per 30 June 2007.
The General Annual Meeting of Shareholders held on 10 May 2007 approved the proposal to distribute a dividend of € 0.20 per ordinary share outstanding (excluding own shares held by the Company), which had a decreasing impact of € 1.4 million on retained earnings within the equity of the Company during the six months' period ended 30 June 2007.
Waalwijk, 19 July 2007
Balance sheets before appropriation of profit.
| 30 June | 31 December | 30 June | |
|---|---|---|---|
| 2007 | 2006 | 2006 | |
| (in thousands) | € | € | € |
| Assets | |||
| Property, plant and equipment | 7,568 | 8,121 | 9,540 |
| Intangible assets | 10,416 | 7,320 | 250 |
| Investments in associates | 378 | 1,247 | 1,049 |
| Other investments | 100 | 100 | 75 |
| Trade and other receivables | 311 | 1,068 | 713 |
| Deferred tax assets | 1,030 | 470 | 334 |
| Total non-current assets | 19,803 | 18,326 | 11,961 |
| Inventories | 2,422 | 3,765 | 3,869 |
| Income tax receivable | 137 | 154 | 170 |
| Trade and other receivables | 13,891 | 16,995 | 12,732 |
| Cash and cash equivalents | 3,368 | 5,831 | 7,322 |
| Assets classified as held for sale | - | 831 | - |
| Total current assets | 19,818 | 27,576 | 24,093 |
| Total assets | 39,621 | 45,902 | 36,054 |
| Equity | |||
| Share capital | 731 | 731 | 731 |
| Share premium | 16,854 | 16,854 | 16,854 |
| Translation reserve | 536 | 564 | 423 |
| Reserve for own shares | (338) | 61 | (520) |
| Retained earnings | 4,169 | 3,978 | 4,211 |
| Total equity attributable to equity holders | |||
| of the parent | 21,952 | 22,188 | 21,699 |
| Minority interest | 342 | 226 | 9 |
| Total equity | 22,294 | 22,414 | 21,708 |
| Liabilities | |||
| Interest-bearing loans and borrowings | 1,969 | 1,862 | - |
| Employee benefits | 315 | 292 | 334 |
| Deferred tax liabilities | 786 | 764 | 475 |
| Total non-current liabilities | 3,070 | 2,918 | 809 |
| Bank overdraft | 1,829 | 1,698 | - |
| Interest-bearing loans and borrowings | 198 | - | 20 |
| Income tax payable | 2,262 | 2,411 | 2,554 |
| Trade and other payables | 9,644 | 15,111 | 10,805 |
| Provisions | 324 | 52 | 158 |
| Liabilities classified as held for sale | - | 1,298 | - |
| Total current liabilities | 14,257 | 20,570 | 13,537 |
| Total liabilities | 17,327 | 23,488 | 14,346 |
| Total equity and liabilities | 39,621 | 45,902 | 36,054 |
| Six months' period ended 30 June 2007 |
Six months' period ended 30 June 2006 (restated) |
||||
|---|---|---|---|---|---|
| (in thousands, except earnings per share and average shares outstanding) | € | % | € | % | |
| Continuing operations | |||||
| Revenue | 32,996 | 100.0 | 27,132 | 100.0 | |
| Cost of sales | (24,965) | (75.7) | (21,133) | (77.9) | |
| Gross profit | 8,031 | 24.3 | 5,999 | 22.1 | |
| Other operating income | 164 | 0.5 | 73 | 0.3 | |
| Selling expenses | (1,791) | (5.4) | (1,503) | (5.5) | |
| Administrative expenses | (4,772) | (14.5) | (2,789) | (10.3) | |
| Other operating expenses | (79) | (0.2) | - | - | |
| Operating profit before financing income | 1,553 | 4.7 | 1,780 | 6.6 | |
| Financial income | 171 | 0.5 | 137 | 0.5 | |
| Financial expenses | (167) | (0.5) | (60) | (0.2) | |
| Net financing income | 4 | - | 77 | 0.3 | |
| Share of profit of associates | 173 | 0.5 | 13 | - | |
| Profit before tax | 1,730 | 5.2 | 1,870 | 6.9 | |
| Income tax expense | (292) | (0.9) | (941) | (3.5) | |
| Profit for the period from continuing operations | 1,438 | 4.3 | 929 | 3.4 | |
| Discontinued operation Profit /(Loss) from discontinued operation (net of income tax) |
177 | 0.6 | (536) | (2.0) | |
| Profit for the period | 1,615 | 4.9 | 393 | 1.4 | |
| Attributable to: | |||||
| Equity holders of the parent | 1,626 | 4.9 | 388 | 1.4 | |
| Minority interest | (11) | - | 5 | - | |
| Profit for the period | 1,615 | 4.9 | 393 | 1.4 | |
| Average number of shares outstanding | 7,120,000 | 7,019,000 | |||
| Potentially average number of shares fully diluted | 7,309,000 | 7,309,000 | |||
| Earning per share | |||||
| Basic earnings per share | 0.23 | 0.06 | |||
| Diluted earnings per share | 0.22 | 0.05 | |||
| Continuing operations | |||||
| Basic earnings per share | 0.20 | 0.13 | |||
| Diluted earnings per share | 0.20 | 0.13 |
| Six months' | Six months' | |
|---|---|---|
| period ended | period ended | |
| 30 June 2007 | 30 June 2006 | |
| (in thousands) | € | € |
| Cash flows from operating activities | ||
| Profit for the period | 1,615 | 393 |
| Adjustments for: | ||
| Depreciation and amortisation | 1,918 | 1,876 |
| Costs share options and shares granted | 131 | 33 |
| Financial expenses | 167 | 60 |
| Financial income | (171) | (137) |
| Share of profit of associates | (173) | (13) |
| Income tax expense | 292 | 957 |
| Cash flows from operating activities before changes in working | ||
| capital and provisions | 3,779 | 3,169 |
| Decrease in trade and other receivables and assets held for sale | 4,860 | 1,858 |
| Decrease in inventories | 1,343 | 565 |
| Decrease in trade and other payables and liabilities held for sale | (7,094) | (3,767) |
| Increase/(Decrease) in provisions and employee benefits | 295 | (56) |
| Cash generated from the operations | 3,183 | 1,769 |
| Interest paid | (167) | (41) |
| Interest received | 171 | 137 |
| Income taxes paid | (673) | (818) |
| Net cash from operating activities | 2,514 | 1,047 |
| Cash flows from investing activities | ||
| Acquisition of subsidiaries | (1,846) | - |
| Acquisition of property, plant and equipment | (1,079) | (485) |
| Acquisition of intangible assets | (144) | - |
| Proceeds from sale of property, plant and equipment | 14 | - |
| Acquisition of associates and other investments | - | (900) |
| Net cash from investing activities | (3,055) | (1,385) |
| Cash flows from financing activities | ||
| Dividends paid | (1,418) | (2,823) |
| Own shares bought | (642) | - |
| Repayment of interest-bearing loans and borrowings | (72) | (2) |
| Bank overdraft | 131 | - |
| Proceeds from exercise of share options | 110 | 195 |
| Loans provided to associates | - | (272) |
| Net cash from financing activities | (1,891) | (2,902) |
| Net decrease in cash and cash equivalents | (2,432) | (3,240) |
| Cash and cash equivalents at beginning of period | 5,831 | 10,516 |
| Effect of exchange rate fluctuations on cash held | (31) | 46 |
| Cash and cash equivalents at end of period | 3,368 | 7,322 |
| Total equity | |||||||
|---|---|---|---|---|---|---|---|
| attributable to | |||||||
| Share | Share | Retained | equity holders | Minority | Total | ||
| (in thousands) | capital | premium | Reserves | earnings | of the parent | interest | equity |
| € | € | € | € | € | € | € | |
| Equity Statement 2006 | |||||||
| Balance at 1 January 2006 | 731 | 16,854 | (283) | 6,646 | 23,948 | 23 | 23,971 |
| Dividend distribution | - | - | - | (2,822) | (2,822) | (19) | (2,841) |
| Shares issued for acquisitions | - | - | 531 | - | 531 | - | 531 |
| Exercised share options | - | - | 199 | - | 199 | - | 199 |
| Costs share options | - | - | 79 | - | 79 | - | 79 |
| Translation difference | - | - | 99 | - | 99 | - | 99 |
| Consolidation participation | - | - | - | - | - | 240 | 240 |
| Profit for the year | - | - | - | 154 | 154 | (18) | 136 |
| Balance at 31 December 2006 | 731 | 16,854 | 625 | 3,978 | 22,188 | 226 | 22,414 |
| 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) | - | (1,435) |
| Shares bought | - | - | (642) | - | (642) | - | (642) |
| Exercised share options | - | - | 110 | - | 110 | - | 110 |
| Shares issued for remuneration | - | - | 92 | - | 92 | - | 92 |
| Costs share options | - | - | 39 | - | 39 | - | 39 |
| Translation difference | - | - | (26) | - | (26) | - | (26) |
| Consolidation participation | - | - | - | - | - | 127 | 127 |
| Profit for the period | - | - | - | 1,626 | 1,626 | (11) | 1,615 |
| Balance at 30 June 2007 | 731 | 16,854 | 198 | 4,169 | 21,952 | 342 | 22,294 |
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 and an explanation of the effects of the transition from the accounting principles generally accepted in the Netherlands ("Dutch GAAP") applied in previous years to IFRS, please refer to the Company's Annual Report for the financial year ended 31 December 2006.
This interim financial report has been prepared in accordance with IAS 34 (Interim Financial Reporting).
The financial statements and reconciliations included in this report and its enclosures have not been audited by the external auditors.
In the consolidated financial statements for the six months' period ended 30 June 2007, the following acquisition has been consolidated as of the acquisition date mentioned:
Triple Deal B.V. (in the second half of 2007 to be renamed as 'DOCdata e-Financial Services') as of 25 May 2007 (70% share interest). The consolidated income statement 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. In the consolidated balance sheets at 31 December 2006 and at 30 June 2006 the pre-acquisition owned share interest in Triple Deal B.V. (30% share interest) was accounted for under investments in associates.
In the consolidated financial statements for the year ended 31 December 2006, the following acquisitions have been consolidated as of the acquisition dates mentioned:
In the consolidated financial statements for the periods ended 30 June 2007 and 31 December 2006, the assets, liabilities and activities of 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 balance sheet at 30 June 2007, a provision for remaining risks related to the termination of the French activities has been accounted for under current liabilities. In the consolidated income statements for the six months' periods ended 30 June 2007 and 30 June 2006, the results after income tax of DOCdata France for those six months' periods have been reported under loss from discontinued operation (net of income tax). The resulting consolidated income statement for the six months' period ended 30 June 2006 is referred to as the income statement for the "six months' period ended 30 June 2006 (restated)".
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 operations for the six months' period ended 30 June 2007 are not necessarily indicative of the results for the entire financial year ending 31 December 2007.
| 30 June 2007 |
31 December 2006 |
30 June 2006 |
|
|---|---|---|---|
| (in thousands) | € | € | € |
| Land and buildings | 1,576 | 1,629 | 1,734 |
| Machinery and equipment | 4,643 | 5,085 | 6,813 |
| Office equipment and software | 1,154 | 1,402 | 905 |
| 7,373 | 8,116 | 9,452 | |
| Under construction | 195 | 5 | 88 |
| Total | 7,568 | 8,121 | 9,540 |
The book value for property, plant and equipment has decreased with approximately € 0.6 million during the six months' period ended 30 June 2007, resulting of depreciation amounting to € 1.5 million exceeding capital expenditure of € 1.0 million (inclusive of property, plant and equipment acquired through new participations).
| 30 June 2007 |
31 December 2006 |
30 June 2006 |
||
|---|---|---|---|---|
| (in thousands) | € | € | € | |
| Goodwill | 7,003 | 4,639 | - | |
| Customer contracts | 798 | 544 | - | |
| IT platforms | 2,615 | 1,887 | - | |
| Other | - | 250 | 250 | |
| Total | 10,416 | 7,320 | 250 |
The book value for intangible assets has increased with € 3.1 million during the six months' period ended 30 June 2007, mainly resulting from the acquisition of the majority share in Triple Deal B.V. (influencing net book value of goodwill, customer contracts and IT platforms for € 3.7 million in total) and amortisation during the six months' period ended 30 June 2007 for customer contracts, IT platform and other intangibles (investment in motion picture "Kruistocht in Spijkerbroek").
The book value for investments in associates has decreased with € 0.9 million during the six months' period ended 30 June 2007 from nearly € 1.3 million at 31 December 2006 to € 0.4 million at 30 June 2007, resulting from the consolidation of Triple Deal B.V. starting 25 May 2007. In the consolidated balance sheet at 31 December 2006 the DOCdata share interest of 30% at that time in Triple Deal B.V. was valued at € 0.9 million under investments in associates.
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