Interim / Quarterly Report • Oct 24, 2014
Interim / Quarterly Report
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| jul-sep | jan-sep | Rolling 12 | Full year | |||
|---|---|---|---|---|---|---|
| (SEK Million) | 2014 | 2013 | 2014 | 2013 | months | 2013 |
| Net sales | 81,9 | 70,3 | 245,1 | 210,1 | 329,2 | 294,1 |
| whereof recurring revenue | 40,6 | 36,6 | 118,4 | 108,7 | 156,0 | 146,3 |
| EBITDA | 17,5 | 18,9 | 49,3 | 44,2 | 69,7 | 64,6 |
| EBIT - excluding acquisition related costs | 6,0 | 9,4 | 17,8 | 16,6 | 28,5 | 27,3 |
| EBIT | 5,3 | 9,4 | 16,7 | 16,6 | 27,4 | 27,3 |
The third quarter is normally our weakest quarter, but for the second consecutive year we managed fairly well even though not quite reaching the heights of last year.
The growth for the quarter of 16 % and for the year to date of 17 % is partly attributed to acquired business and currency fluctuations, but even with these excluded we generate an organic growth of 6 % on the quarter and 11 % for the year to date.
To a large extent we have chosen to meet this increased demand with fulfillment from third party suppliers instead of hiring own staff, which is visible in the increase in sales expenses from last year. Since we now have good visibility of continued high demand in the area of portals and e-services we are recruiting to increase our own staffing in these projects, which will generate higher margins for this business area in the future. We will however continue to deploy a mix of own capacity and third party consultants to maintain a satisfactory level of flexibility and risk.
Our operating expenses are up from last year as a consequence of the continued strengthening of our delivery organization in Sweden, currency fluctuations, an acquisition and the establishing of operations in the US and the Netherlands.
The reasons behind establishing a business in the US at this point is that we see large potential in the US market for the Life Science business. We also see good potential for other products on the US market, for example our product for input/output management, Lasernet, which also is the product driving our establishing in the Netherlands.
On the product side we have a continued high level of investments in many of our products. Our investments in product development strengthens our position as market leader and encourages both existing customers as well as potential customers to take the next steps in their digitalization agenda.
During the second quarter we were awarded the contract with the City of Stockholm. Another supplier then applied for a review procedure of the City's procurement to the administrative court, who then upheld the suppliers' application. We are now pursuing the case further by appealing to the Court of Appeal.
All the political elections are now behind us and within short our customers' administrative staff will be able to return to their long-term agendas. This means there will be more time to focus on developing their business which in turns means more favorable market conditions for us.
Entering the last quarter we foresee a strong finish, in line with last year or even somewhat better.
Purna, a Belgian company in the Life Science sector has signed a contract for Platina QMS to handle and streamline its quality processes and quality documentation. Formpipe's partner Sigma is the service provider. The order value amounts to SEK 1 million.
Formpipe signed a supplementary agreement for development of an application to support the improvement of Vocational Education and Training. The total order value amounts to SEK 5,8 million, and the agreement covers development, test and implementation of the vocational solution.
Formpipe received a supplementary order from a Danish authority regarding development of an application to further sustain the Danish eGovernment Strategy. The order value amounts to SEK 6.4 million.
Formpipe received an order from a Swiss company through a German reseller regarding the ECM product Lasernet. The product enables effective reporting and streamlined document design directly from Microsoft Dynamics AX. The order value amounts to SEK 1 million.
Formpipe receives order on the ECM product W3D3 from a Swedish authority. The total order value amounts to SEK 1.1 million.
Formpipe receives a supplementary order on the ECM product W3D3 from a Swedish municipality. The total order value amounts to SEK 3.8 million.
On June 13, 2014, the City of Stockholm announced, through a contract award decision, that it intends to sign an agreement with Formpipe regarding an ECM system for case and document management for joint use by the City and the city's companies and foundations. A supplier then applied for a review procedure of the City's procurement to the administrative court. On September 30 the administrative court upheld the suppliers' application.
Formpipe is investigating the possibility to pursue the case further by appealing against the judgment of the Administrative Court to the Court of Appeal.
Formpipe acquired the UK company GXP Limited ("GXPi"), an established provider of compliance solutions for the life science industry. GXPi has customers and operations in both Europe and the United States. The acquisition strengthens Formpipe's product offering and enables faster international expansion in the Life Science industry.
The acquisition was completed on July 1, 2014. Upon access to the business, Formpipe pays a total of GBP 1.3 million (cash and debt- free basis), of which GBP 0.66 million is paid in newly issued shares and GBP 0.64 million in cash. In addition to the above mentioned purchase price an earn-out will apply. The earn-out is equivalent to 50% of the contribution, at EBITDA level, of the combined Life Science business area, for a period of three years from the acquisition. The additional purchase price will not exceed GBP 3.5 million. No external funding has been raised to finance the cash purchase price.
ISSUE OF 1 208 814 SHARES FOR PARTIAL PAYMENT OF THE ACQUISITION OF GXP LTD On the basis that the purchase price was partially paid in shares 1,208,814 new shares in Formpipe were issued in kind to the sellers. Formpipe's share capital was thereby increased by SEK 120 881.40, from SEK 4,893,458.80 to SEK 5,014,340.20.
According to the Radar Group, ECM continues to be a high priority investment area for companies and organizations. Greater regulatory requirements and effective information management as a means of competition are important driving forces that have a tendency to be continually strengthened in connection with the increased amount of information. The Danish and Swedish license markets for ECM software will, according to Gartner, amount to around SEK 840 (800) million in 2014, which is an increase of almost 5 percentage points.
Formpipe targets the markets for the public sector in Sweden and Denmark as well as the international market for life sciences.
The Danish public sector is the largest individual market for Formpipe. Formpipe is the market leader in the public sector and has a broad product offering with associated services within the ECM area (document and message management, pay-ment handling and selfservices / modes of cooperation). The Danish public sector is a model for efficient and digital public administration in Europe and has an express focus on investing in IT support in order to boost its internal efficiency.
Formpipe has a broad product offering within the framework for ECM to the Swedish public sector for compliance with regulatory requirements and to facilitate efficient and digital public administration. In the future, the company believes, as do external analysis companies, that the need for more efficient management will mean that the Swedish public sector will continue to invest in existing or new IT systems in order to realize its potential.
Public administrations, both in Sweden and in Denmark, are facing the challenge of improving efficiency, productivity and the quality of their services. All these challenges must though be met with unchanged or even reduced budgets. Information and communication technology helps the public sector to handle challenges such as:
Within the private sector, the company's efforts are focused strongly on becoming an established supplier of quality management related services (remediation, audit, QMS) and software systems (document, training record and forms processing management) to the life science sector. Like the public sector, this sector has strict regulatory requirements. The market is strictly regulated by the national regulations of the market that the product or service is to be submitted to (in the US the regulator is the Food and Drug Administration (FDA), in the European Union it is the EMEA, etc). For multi-national companies or companies working in multiple markets it makes the segment more complex and opens up an export market that is far larger than the primary markets.
The market for ECM products for Life Sciences is set to grow at the mid-tier (200-1000 users) as these companies take on more of the traditional large Pharma business. At the large Pharma (>1000 users) level there is a move to replace multiple departmental systems with integrated end-to-end enterprise systems that are more cost effective to manage and maintain. There is also growth in the 'Service Provider' companies to Life Sciences as they become key to the supply chain and need compliant electronic Quality systems to manage their activities and meet the necessary standards of the sector.
In addition to the strict FDA regulatory framework the Life Sciences sector in the US, the segment prefer to be serviced by a presence in the US due to a combination of data security and time zone offset from Europe. The US remains one of the strongest areas of development and demand for Life Sciences' products and is a key market for Formpipe's Life Science growth.
Formpipe is a leading supplier of ECM solutions in Sweden and Denmark. The board considers that the company is well-positioned to be able to develop and strengthen its leading position while retaining good profitability levels. The company sees good opportunities to continue to utilize its experience from its successes within the public sector in Sweden and Denmark, which from an international perspective are considered models for efficient public administration, in order to target new markets and customer segments. With well-invested products, solid experience of the public sector and facilities for continued product development, the company sees opportunities to focus on the demand at EU level which with increased regulatory requirements can be expected to increase its investments in the coming years. In addition to the Swedish public sector, FormPipe Software also focuses on the life science sector, which like the public sector is a segment that is strictly regulated by regulatory requirements. The Company has developed a very competitive offering to this sector. The life science market is faced with the same regulatory requirements regardless of geographical location, which creates a very large international market. The company's strategy with focus on the public sector and Life Science creates good opportunities to be able to efficiently develop market-leading offerings and need sector-specific requirements.
The board believes that Formpipe, which is one of the largest European-based ECM suppliers, is wellpositioned with a stabile customer base, a high share of recurring revenue and a focus on customer segments with a high need for ECM solutions. At the same time, the board considers that the ECM market is a sector undergoing consolidation and views acquisitions as a good complement to organic growth.
Net sales for the period totaled SEK 81.9 million (70.3 million), which corresponds to an increase of 16 %. System revenue increased by 8 % from the previous year and totaled SEK 51.1 million (47.5 million). Total recurring revenue for the period increased by 11 % from the previous year and totaled SEK 40.6 million (36.6 million), which is equivalent to 50 % of net sales. Exchange rate effects have affected net sales positively by SEK 2.5 million in comparison with the previous year.
Net sales for the period totaled SEK 245.1 million (210.1 million), which corresponds to an increase of 17 %. System revenue increased by 9 % from the previous year and totaled SEK 155.2 million (142.2 million). Total recurring revenue for the period increased by 9 % from the previous year and totaled SEK 118.4 million (108.7 million), which is equivalent to 48 % of net sales.
Exchange rate effects have affected net sales positively by SEK 7.8 million in comparison with the previous year.
Recurring revenue rolling 12-month, SEKm
The operating costs for the period increased by 26 % and totaled SEK 76.6 million (60.9 million). Personnel costs increased by 17 % and totaled SEK 44.7 million (38.1 million). Selling expenses totaled SEK 13.2 million (6.6 million). Other costs totaled SEK 15.4 million (14.0 million). Acquisition-related costs of SEK 0,7 million ( million) are charged to the period.
The operating costs for the period increased by 18 % and totaled SEK 228.5 million (193.5 million). Personnel costs increased by 12 % and totaled SEK 140.1 million (124.9 million). Selling expenses totaled SEK 35.8 million (20.2 million). Other costs totaled SEK 45.8 million (42.0 million). Acquisition-related costs of SEK 1.2 million (- million) are charged to the period.
Operating profit before depreciation and amortization and acquisition-related costs (EBITDA) totaled SEK 17.5 million (18.9 million) with an EBITDA margin of 21.3 % (26.9 %). Operating profit (EBIT) totaled SEK 5.3 million (9.4 million) with an operating margin of 6.5 % (13.3 %). Acquisition-related costs of SEK 0,7 million ( million) are included in the EBIT. Net profit totaled SEK 2.0 million (5.0 million). Exchange rate effects have affected EBITDA positively by SEK 0.5 million in comparison with the previous year.
Operating profit before depreciation and amortization and acquisition-related costs (EBITDA) totaled SEK 49.3 million (44.2 million) with an EBITDA margin of 20.1 % (21.0 %). Operating profit (EBIT) totaled SEK 16.7 million (16.6 million) with an operating margin of 6.8 % (7.9 %). Acquisition-related costs of SEK 1.2 million ( million) are included in the EBIT. Net profit totaled SEK 7.9 million (7.2 million). Exchange rate effects have affected EBITDA positively by SEK 1.4 million in comparison with the previous year.
Cash and cash equivalents at the end of the period amounted to SEK 6.8 million (5.9 million). The company had interest-bearing debt at the end of the period totaling SEK 147.2 (166.0) million. The company's net interest-bearing debt thereby totaled SEK 140.3 million (160.1 million).
The company has bank overdraft facilities for a total of SEK 10.0 million and for DKK 17.0 million, which were not utilized at the end of the period (- million).
By the end of the period the company's deferred tax assets attributable to accumulated losses amounted to SEK 30.2 million (SEK 24.4 million).
Equity at the end of the period amounted to SEK 287.5 million (248.9 million), which was equivalent to SEK 5.73 (5.09) per outstanding share at the end of the period. The weakening of the Swedish krona has strengthened the value of the group's net assets in foreign currencies by SEK 7.7 million (1.6 million) from the end of the year.
The equity ratio at the end of the period was 47 % (47 %).
C A S H F L O W F R O M O P E R A T I N G A C T I V I T I E S Cash flow from operating activities for the period January - September totaled SEK 31.6 million (40.5 million).
Total investments for the period January - September amounted to SEK 35.4 million (22.9 million), of which investments affecting cash flow totaled SEK 30.3 million (21.4 million).
The acquisition of GXP Ltd. has affected the cash flow negatively by SEK 7.3 million (- million)
Investments in intangible assets totaled SEK 26.5 million (21.5 million) and refer to capitalized product development costs.
Investments in tangible assets totaled SEK 1.6 million (1.4 million).
During the period January – September the company has amortized SEK 15.4 million (17.5 million) and the interest-bearing debt amounted to SEK 147.2 million (166.0 million) at the end of the period.
During the period January – September the company has issued warrants directed to the staff for a total value of SEK 0.5 million (0.7 million).
The number of employees at the end of the reporting period totaled 240 persons (224 persons).
The significant risk and uncertainty factors for the group and the parent company, which include business and financial risks, are described in the annual report for the last financial year.
No transactions with related parties have occurred during the period
The group's financial reports are prepared in accordance with International Financial Reporting Standards (IFRS) in the way in which they have been adopted by the European Union, the Swedish Annual Accounts Act, RFR 1 Additional Accounting Regulations for Groups issued by the Swedish Financial Reporting Board and in accordance with the regulations that the Stockholm Stock Exchange stipulates for companies listed on Nasdaq OMX Stockholm. Preparing financial reports in accordance with IFRS requires that the company management makes accounting evaluations and estimates and makes assumptions that affect the application of the accounting policies and the reported values of assets, liabilities, income and costs. The actual result can differ from these estimates and evaluations. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The most important accounting policies according to IFRS, which constitute the accounting standard for the preparation of this interim report, are stated in the company's most recently published annual report. The financial reports of the parent company have been pre-pared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities issued by the Swedish Financial Reporting Board. The same accounting policies and methods of calculation have been applied in the interim report and in the most recent annual report.
Formpipe Software AB (publ) is a software company in the field of ECM (Enterprise Content Management). We develop and deliver ECM products for structuring information in larger companies, the public sector and organizations. Our software helps organizations to capture and place information in context. Reduced costs, minimized risk exposure and structured information are the benefits from using our ECM products.
Formpipe was established in 2004 and has offices in Stockholm, Uppsala, Linköping and Copenhagen. Formpipe Software AB (publ) is listed on NASDAQ OMX Stockholm.
| October 24, 2014 | Interim report Jan-Sep |
|---|---|
| April 23, 2015 | Interim report Jan-Mar |
| April 24, 2015 | Annual general meeting |
| July 15, 2015 | Interim report Jan-Jun |
| October 27, 2015 | Interim report Jan-Sep |
Can be ordered from the below contact details. All financial information is published on www.formpipe.com immediately after being made public.
Christian Sundin, Managing Director Telephone: +46 70 567 73 85, +46 8 555 290 84 E-mail: [email protected]
Stockholm October 24, 2014 Formpipe Software AB The Board of Directors and the Managing Director
Formpipe Software AB (publ) Swedish company reg. no.: 556668-6605 Sveavägen 168 | Box 231 31 | 104 35 Stockholm T: +46 8 555 290 60 | F: +46 8 555 290 99 [email protected] | www.formpipe.se
We have reviewed the condensed interim financial information (interim report) of Formpipe Software AB (publ) as of 30 September 2014 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
We have reviewed the condensed interim financial information (interim report) of Formpipe Software AB (publ) as of 30 September 2014 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Stockholm, October 24, 2014.
PricewaterhouseCoopers AB
Aleksander Lyckow Authorized Public Accountant
| jul-sep | jan-sep | |||
|---|---|---|---|---|
| (SEK '000) | 2014 | 2013 | 2014 | 2013 |
| Net Sales | 81 882 | 70 297 | 245 133 | 210 054 |
| Sales expenses | -13 239 | -6 625 | -35 763 | -20 236 |
| Other costs | -15 350 | -13 962 | -45 804 | -42 047 |
| Personell costs | -44 717 | -38 090 | -140 054 | -124 901 |
| Capitalized work for own account | 8 882 | 7 302 | 25 743 | 21 281 |
| Operating profit/loss before depreciation/amortization and non-comparative items (EBITDA) |
17 458 | 18 922 | 49 255 | 44 151 |
| Acquisition-related costs | -667 | - | -1 167 | - |
| Depreciation/amortization | -11 470 | -9 540 | -31 436 | -27 563 |
| Operating profit/loss (EBIT) | 5 322 | 9 383 | 16 653 | 16 588 |
| Financial income and expenses | -2 086 | -1 605 | -5 893 | -5 842 |
| Exchange rate differences | -522 | -547 | -526 | -504 |
| Tax | -680 | -2 273 | -2 357 | -2 998 |
| Net profit for the period | 2 034 | 4 958 | 7 876 | 7 245 |
| Of which the following relates to: | ||||
| Parent company shareholders | 2 364 | 4 683 | 7 615 | 6 619 |
| Shareholding with no controlling influence | -330 | 275 | 261 | 626 |
| Other comprehensive income | ||||
| Translation differences | 1 150 | -1 790 | 7 767 | 1 566 |
| Other comprehensive income for the period, net after tax | 1 150 | -1 790 | 7 767 | 1 566 |
| Total comprehensive income for the period | 3 184 | 3 167 | 15 643 | 8 810 |
| Of which the following relates to: | ||||
| Parent company shareholders | 3 514 | 2 892 | 15 382 | 8 184 |
| Shareholding with no controlling influence | -330 | 275 | 261 | 626 |
| EBITDA margin, % | 21,3% | 26,9% | 20,1% | 21,0% |
| EBIT margin, % | 6,5% | 13,3% | 6,8% | 7,9% |
| Profit margin, % | 2,5% | 7,1% | 3,2% | 3,4% |
| Earnings per share attributable to the parent company's shareholders | ||||
| during | ||||
| the period (SEK per share) | ||||
| - before dilution | 0,05 | 0,10 | 0,15 | 0,14 |
| - after dilution | 0,05 | 0,10 | 0,15 | 0,14 |
| Average no. of shares before dilution, in 000 Average no. of shares after dilution, in 000 |
50 143 50 143 |
48 935 48 935 |
49 338 49 338 |
48 935 48 935 |
| 30 sep | 31 dec | ||
|---|---|---|---|
| (SEK '000) | 2014 | 2013 | 2013 |
| Intangible assets | 496 581 | 434 347 | 449 414 |
| Tangible assets | 3 582 | 2 838 | 2 935 |
| Financial assets | 1 407 | 1 307 | 1 351 |
| Deferred tax asset | 30 243 | 24 390 | 27 936 |
| Current assets (excl. cash equivalents) | 68 578 | 65 034 | 90 035 |
| Cash equivalents | 6 846 | 5 871 | 20 269 |
| TOTAL ASSETS | 607 237 | 533 787 | 591 940 |
| Equity | 287 459 | 248 884 | 264 060 |
| Shareholding with no controlling influence | 3 048 | 2 342 | 2 787 |
| Long-term liabilities | 171 707 | 154 294 | 156 621 |
| Current liabilities | 145 023 | 128 266 | 168 472 |
| TOTAL EQUITY AND LIABILITIES | 607 237 | 533 787 | 591 940 |
| Net interest-bearing debt (-) / cash (+) | -140 324 | -160 107 | -141 533 |
| Equity attributable to the parent company's shareholders | Share | ||||||
|---|---|---|---|---|---|---|---|
| Other | Profit/loss | holdings with | |||||
| Share | contributed | Translation | brought | no controlling | |||
| (SEK '000) | capital | capital | reserves | forward | Total | influence | Total |
| Eget kapital 1 januari 2013 | 4 893 | 177 908 | -11 357 | 68 595 | 240 039 | 1 716 | 241 755 |
| Totalresultat | |||||||
| Periodens resultat | - | - | - | 6 619 | 6 619 | 626 | 7 245 |
| Övriga totalresultatposter | - | - | 1 566 | - | 1 566 | - | 1 566 |
| Summa totalresultat | - | - | 1 566 | 6 619 | 8 185 | 626 | 8 811 |
| Transaktioner med aktieägare | |||||||
| Betald premie för optionsprogram | - | 660 | - | - | 660 | - | 660 |
| Summa transaktioner med aktieägare | - | 660 | - | - | 660 | - | 660 |
| Eget kapital 30 september 2013 | 4 893 | 178 568 | -9 791 | 75 214 | 248 884 | 2 342 | 251 226 |
| Eget kapital 1 januari 2014 | 4 893 | 178 568 | -2 701 | 83 301 | 264 060 | 2 787 | 266 847 |
| Totalresultat | |||||||
| Periodens resultat | - | - | - | 7 615 | 7 615 | 261 | 7 876 |
| Övriga totalresultatposter | - | - | 7 767 | - | 7 767 | - | 7 767 |
| Summa totalresultat | - | - | 7 767 | 7 615 | 15 382 | 261 | 15 643 |
| Transaktioner med aktieägare | |||||||
| Nyemission | 121 | 7 446 | - | - | 7 567 | - | 7 567 |
| Betald premie för optionsprogram | - | 450 | - | - | 450 | - | 450 |
| Summa transaktioner med aktieägare | 121 | 7 896 | - | - | 8 017 | - | 8 017 |
| Eget kapital 30 september 2014 | 5 014 | 186 464 | 5 066 | 90 916 | 287 459 | 3 048 | 290 507 |
| jul-sep | jan-sep | ||||
|---|---|---|---|---|---|
| (SEK '000) | 2014 | 2013 | 2014 | 2013 | |
| Cash flow from operating activities | |||||
| before working capital changes | 12 393 | 16 041 | 32 737 | 36 716 | |
| Cash flow from working capital changes | -3 460 | -2 840 | -1 158 | 3 799 | |
| Cash flow from operating activities | 8 932 | 13 201 | 31 578 | 40 515 | |
| Cash flow from investing activities | -15 059 | -7 620 | -30 332 | -21 398 | |
| Of which acquisition of business activities | -7 345 | - | -7 345 | - | |
| Cash flow from financing activities | -5 596 | -4 198 | -14 918 | -16 870 | |
| Of which dividend paid | - | - | - | - | |
| Cash flow for the period | -11 723 | 1 383 | -13 672 | 2 247 | |
| Change in cash and cash equivalent | |||||
| Cash and cash equivalent at the beginning of the period | 18 467 | 4 474 | 20 269 | 3 636 | |
| Translation differences | 103 | 14 | 250 | -12 | |
| Cash flow for the period | -11 723 | 1 383 | -13 672 | 2 247 | |
| Cash and cash equivalent at the end of the period | 6 846 | 5 871 | 6 846 | 5 871 | |
| Free cash flow | 1 218 | 5 581 | 8 591 | 19 117 | |
| (SEK '000) | 2012 Q4 | 2013 Q1 | 2013 Q2 | 2013 Q3 | 2013 Q4 | 2014 Q1 | 2014 Q2 | 2014 Q3 |
|---|---|---|---|---|---|---|---|---|
| Support and maintenance | 33 622 | 34 077 | 33 838 | 34 393 | 35 425 | 35 815 | 37 519 | 38 101 |
| Licenses | 20 290 | 12 022 | 14 783 | 13 094 | 19 465 | 13 649 | 17 178 | 12 977 |
| System revenue | 53 912 | 46 099 | 48 620 | 47 487 | 54 891 | 49 465 | 54 697 | 51 078 |
| whereof recurring revenue | 35 751 | 36 209 | 35 952 | 36 566 | 37 574 | 38 017 | 39 865 | 40 554 |
| Deliveries | 33 405 | 21 105 | 23 933 | 22 810 | 29 187 | 29 540 | 29 549 | 30 804 |
| Net sales | 87 317 | 67 204 | 72 553 | 70 297 | 84 078 | 79 005 | 84 246 | 81 882 |
| Sales expenses | -9 020 | -6 892 | -6 720 | -6 625 | -9 661 | -10 343 | -12 181 | -13 239 |
| Other costs | -15 815 | -12 827 | -15 258 | -13 962 | -15 710 | -15 151 | -15 304 | -15 350 |
| Personnel costs | -42 900 | -42 155 | -44 656 | -38 090 | -46 685 | -46 527 | -48 810 | -44 717 |
| Capitalized development costs | 7 649 | 6 825 | 7 153 | 7 302 | 8 459 | 8 187 | 8 674 | 8 882 |
| Total operating expenses | -60 086 | -55 048 | -59 481 | -51 374 | -63 598 | -63 834 | -67 620 | -64 423 |
| EBITDA | 27 231 | 12 156 | 13 073 | 18 922 | 20 480 | 15 171 | 16 626 | 17 458 |
| % | 31,2% | 18,1% | 18,0% | 26,9% | 24,4% | 19,2% | 19,7% | 21,3% |
| Items affecting comparability | - | - | - | - | - | - | -500 | -667 |
| Depreciation/amortization | -9 171 | -8 936 | -9 087 | -9 540 | -9 753 | -9 851 | -10 115 | -11 470 |
| EBIT | 18 060 | 3 220 | 3 986 | 9 382 | 10 727 | 5 320 | 6 011 | 5 322 |
| % | 20,7% | 4,8% | 5,5% | 13,3% | 12,8% | 6,7% | 7,1% | 6,5% |
Apart from the acquisition of GXP Ltd., disclosed in a separate note, there have been no material changes to the segments' assets during the period. The acquired company does not fulfill the requirments put forward under IFRS 8 to form a segment on its own why it has been included in the segment Sweden below.
| jan-sep 2014 | |||||
|---|---|---|---|---|---|
| (SEK '000) | Sweden | Denmark | Eliminations | Group | |
| Sales, external | 91 242 | 153 891 | - | 245 133 | |
| Sales, internal | 314 | 2 554 | -2 868 | - | |
| Total sales | 91 556 | 156 445 | -2 868 | 245 133 | |
| Costs, external | -67 551 | -128 327 | - | -195 877 | |
| Costs, internal | -2 554 | -314 | 2 868 | - | |
| Operating profit/loss before deprecia tion/amortization and one-off items (EBITDA) |
21 451 | 27 804 | - | 49 255 | |
| % | 23,4% | 17,8% | 20,1% |
| jan-sep 2013 | ||||||
|---|---|---|---|---|---|---|
| (SEK '000) | Sweden | Denmark | Eliminations | Group | ||
| Sales, external | 77 487 | 132 567 | - | 210 054 | ||
| Sales, internal | 591 | 2 342 | -2 933 | - | ||
| Total sales | 78 078 | 134 909 | -2 933 | 210 054 | ||
| Costs, external | -59 329 | -106 574 | - | -165 903 | ||
| Costs, internal | -2 342 | -591 | 2 933 | - | ||
| Operating profit/loss before deprecia | 16 407 | 27 744 | - | 44 151 | ||
| tion/amortization and one-off items (EBITDA) | ||||||
| % | 21,0% | 20,6% | 21,0% |
| 2010-01-01 | 2011-01-01 | 2012-01-01 | 2013-01-01 | 2014-01-01 | |
|---|---|---|---|---|---|
| 2010-12-31 | 2011-12-31 | 2012-12-31 | 2013-12-31 | 2014-09-30 | |
| Number of outstanding shares at the beginning | |||||
| of the period | 11 736 181 | 12 004 504 | 12 233 647 | 48 934 588 | 48 934 588 |
| Issued shares | 268 323 | 229 143 | 36 700 941 | - | - |
| Shares issued in kind | - | - | - | - | 1 208 814 |
| Number of outstanding shares at the end of the period |
12 004 504 | 12 233 647 | 48 934 588 | 48 934 588 | 50 143 402 |
| jan-sep | ||
|---|---|---|
| 2014 | 2013 | |
| Net sales, SEK '000 | 245 133 | 210 054 |
| EBITDA, SEK '000 | 49 255 | 44 151 |
| EBIT, SEK '000 | 16 653 | 16 588 |
| Net profit for the period, SEK '000 | 7 876 | 7 245 |
| EBITDA margin, % | 20,1% | 21,0% |
| EBIT margin, % | 6,8% | 7,9% |
| Profit margin, % | 3,2% | 3,4% |
| Return on equity, %* | 5,7% | 6,2% |
| Return on working capital, %* | 6,5% | 8,4% |
| Equity ratio, % | 47,3% | 46,6% |
| Equity per outstanding share at the end of the period, SEK | 5,73 | 5,09 |
| Earnings per share - before dilution, SEK | 0,15 | 0,14 |
| Earnings per share - after dilution, SEK | 0,15 | 0,14 |
| Share price at the end of the period, SEK | 5,95 | 5,40 |
* Ratios including P&L measures are based on the most recent 12-month period
| jul-sep | jan-sep | |||
|---|---|---|---|---|
| (SEK '000) | 2014 | 2013 | 2014 | 2013 |
| Net sales | 2 671 | 2 267 | 7 966 | 7 072 |
| Operating expenses | ||||
| Sales expenses | -672 | -347 | -1 929 | -1 163 |
| Other costs | -2 349 | -2 576 | -8 738 | -8 812 |
| Personnel costs | -6 644 | -6 234 | -22 826 | -19 969 |
| Depreciation/amortization | -445 | -198 | -1 242 | -620 |
| Total operating expenses | -10 110 | -9 355 | -34 735 | -30 564 |
| Operating profit/loss | -7 439 | -7 088 | -26 768 | -23 492 |
| Result from participations in group companies | - | 2 867 | - | 2 867 |
| Other financial items | -957 | -45 | -1 011 | -151 |
| Net profit for the period | -8 395 | -4 266 | -27 780 | -20 776 |
| 30 sep | 31 dec | ||
|---|---|---|---|
| (SEK '000) | 2014 | 2013 | 2013 |
| Intangible assets | 4 656 | 109 | 5 171 |
| Tangible assets | 1 349 | 673 | 720 |
| Financial assets | 454 718 | 427 969 | 423 741 |
| Deferred tax asset | 7 898 | 4 996 | 7 898 |
| Current assets (excl. cash equivalents) | 3 998 | 6 445 | 17 843 |
| Cash and bank balances | 4 192 | 8 480 | 15 256 |
| TOTAL ASSETS | 476 811 | 448 672 | 470 629 |
| Restricted equity | 22 705 | 22 584 | 22 584 |
| Non-restricted equity | 172 783 | 165 837 | 192 667 |
| Total equity | 195 488 | 188 421 | 215 251 |
| Long-term liabilities | 143 122 | 138 569 | 134 105 |
| Current liabilities | 138 201 | 121 682 | 121 273 |
| TOTAL EQUITY AND LIABILITIES | 476 811 | 448 672 | 470 629 |
In order to strengthen Formpipe's position in the Life Science industry, the Brittish company GXP Ltd. (GXPi) was acquired July 1. GXPi is an established privider of complience advisory and solutions for the life science industry. The acquisition was for 100 % of the shares in GXPi and has impacted the group balance sheet and cash position as specified below. The earn-out is valued at 57 % of the maximum. Since the transaction date, GXPi has contributed MSEK 4.7 in sales and MSEK 0,1 in operating profit before depreciation and nonrecurring transaction related expenses (EBITDA). Had the acquisition taken place on January 1, 2014 GXPi would have contributed a total of MSEK 13.4 in sales and MSEK 0.5 in EBITDA.
Goodwill has been recognised, consisting of synergies and staff. Fair value adjustments have been made to the book values represented by the excess price embedded in the purchase price and attributed to customer relationships, brand names and existing technology. The adjustments also consider the effect on deferred tax. No portion of the recognised goodwill is anticipated to be income tax deductible.
The acquisition balance sheet is subject to final adjustments no later than one year after the transaction date.
| Book | Fair | |
|---|---|---|
| (SEK '000) | value | value |
| Tangible assets | 407 | 407 |
| Intangible assets | - | 10 572 |
| Trade and other receivables | 3 929 | 3 929 |
| Cash and cash equivalents | 2 697 | 2 697 |
| Trade pyables and other liabilities | -4 609 | -4 609 |
| Deferred tax | - | -2 114 |
| Acquired net assets | 2 424 | 10 882 |
| Goodwill | 29 633 | |
| Total purchase price | 40 514 | |
| - Not yet paid out earn-out | -22 905 | |
| - Consideration in shares issued in kind | -7 567 | |
| - Existing cash in the acquired business | -2 697 | |
| Changes to group cash at acquisition | 7 345 |
The total of license revenue and revenue from support and maintenance contracts.
Revenue of an annually recurring nature such as support and maintenance revenue and revenue from rental license agreement.
Earnings before depreciation, amortization, acquisition-related costs and other items of a one-off nature.
Operating profit/loss
Cash flow from operating activities minus cash flow from investing activities excluding acquisitions.
P R O F I T M A R G I N
Equity at the end of the period divided by the number of shares at the end of the period.
Profit/loss after tax as a percentage of average equity
Operating profit/loss as a percentage of average working capital (balance sheet total less non-interest bearing liabilities and cash and bank balances).
O P E R A T I N G M A R G I N B E F O R E D E P R E C I A T I O N A N D A M O R T I Z A T I O N (EBITDA M A R G I N ) Earnings before depreciation, amortization, acquisition-related costs and other items of a one-off nature as a percentage of
net sales.
E Q U I T Y R A T I O Equity as a percentage of the balance sheet total.
Net profit/loss after tax divided by the average number of shares during the period.
Net profit/loss after tax adjusted for dilution effects divided by the average number of shares after dilution during the period.
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