Earnings Release • Aug 14, 2012
Earnings Release
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Report on the 3rd quarter
| Earnings Data | 10/2011-6/2012 | 10/2010-6/2011 | Chg. in % | 2010/11 | |
|---|---|---|---|---|---|
| Revenues | in € million | 57.29 | 52.25 | +10 | 71.09 |
| EBITDA | in € million | 1.03 | 1.95 | -47 | 3.13 |
| Operating EBITDA 1) | in € million | 1.71 | 1.95 | -12 | 3.13 |
| EBIT | in € million | -0.46 | 0.35 | >100 | 1.04 |
| Operating EBIT 1) | in € million | 0.21 | 0.35 | -40 | 1.04 |
| Profit before tax | in € million | -2.10 | -1.54 | -37 | -1.38 |
| Profit after tax | in € million | -2.45 | -1.83 | -34 | -1.37 |
| Earnings per share | in € | -0.16 | -0.12 | -33 | -0.09 |
| Adjusted earnings per share 1) | in € | -0.13 | -0.12 | -8 | -0.09 |
| Capital expenditure | in € million | 1.01 | 1.00 | +1 | 1.51 |
| Acquisitions | in € million | 0.00 | 0.00 | - | 0.00 |
| Employees 2) | 754 | 723 | +4 | 733 |
| Balance Sheet Data | 30.6.2012 | 30.9.2011 | Chg. in % | |
|---|---|---|---|---|
| Equity | in € million | 16.29 | 18.72 | -13 |
| Net debt | in € million | 7.35 | 5.82 | +26 |
| Capital employed | in € million | 23.61 | 24.50 | -4 |
| Working capital 3) | in € million | 1.99 | 1.34 | +49 |
| Balance sheet total | in € million | 48.76 | 49.43 | -1 |
| Equity ratio | in % | 33 | 38 | - |
| Gearing | in % | 45 | 31 | - |
| Employees 4) | 741 | 786 | -6 |
| Stock Exchange Data 5) | 10/2011-6/2012 | 2010/11 | Chg. in % | |
|---|---|---|---|---|
| Share price high | in € | 0.95 | 1.10 | -14 |
| Share price low | in € | 0.55 | 0.72 | -24 |
| Share price at end of period | in € | 0.70 | 0.94 | -26 |
| Shares outstanding (weighted) | 1,000 | 15.387 | 15.387 | 0 |
| Market capitalization (ultimo) | in € million | 10.77 | 14.46 | -26 |
| Segments 10/2011 - 6/2012 in € million |
Germany | Italy | Netherlands | The | Central East Europe |
Other | Holding and | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Revenues (consolidated) | 28.97 | (+3%) | 17.33 | (+9%) | 8.41 | (+43%) | 2.58 | (+5%) | 0 | - |
| Operating EBITDA 2) | 1.25 | (-6%) | 1.31 | (+22%) | 0.27 | (-57%) | 0.15 | (+1%) | -1.27 | (-3%) |
| Operating EBIT 2) | 0.75 | (-1%) | 0.80 | (+48%) | -0.11 (>100%) | 0.08 | (+2%) | -1.31 | (-2%) | |
| Capital expenditure | 0.34 | (+8%) | 0.28 | (-45%) | 0.30 (>100%) | 0.04 | (-22%) | 0.05 (>100%) | ||
| Employees 2) | 344 | (+1%) | 283 | (+3%) | 92 | (+26%) | 30 | (+10%) | 5 | (-34%) |
1) Adjusted for restructuring costs
5) Vienna Stock Exchange
2) Average number of employees (salaried and free-lance) during the period
Dear shareholders, ladies and gentlemen,
in the first nine months of the 2011/12 business year, Group revenues increased by 10% compared to the previous year. Thus we succeeded in generating a revenue increase for the sixth consecutive quarterly period on the basis of the revenue growth of 6% achieved in the third quarter. We expect revenue to rise in 2011/12 as a whole thanks to the 7% year-on-year increase in the order volume during the first nine months of 2011/12 and the current sales pipeline. After reporting negative operating results in the first quarter of the current financial year, we managed a turnaround featuring operating results of € 0.14 million and € 0.30 million respectively in the second and third quarters. On balance, the operating EBIT in the first nine months amounted to € 0.21 million, compared to € 0.35 million in the previous year.
In the first three quarters of 2011/12, Group revenues climbed by € 5.04 million to € 57.29 million, with all regions generating revenue growth. Operating EBITDA amounted to € 1.71 million compared to the prioryear figure of € 1.95 million, and operating EBIT totaled € 0.21 million, down from € 0.35 in the previous year. In addition, first-quarter restructuring expenses in Germany of € 0.68 million have a negative impact on earnings. As a result, Group EBITDA was € 1.03 million and Group EBIT amounted to € -0.46 million.
Group revenues were up € 1.10 million in the third quarter to € 19.44 million, a rise of 6% from the prior-year period. Third-quarter operating EBITDA was close to the previous year's level, showing a slight decrease of only € 0.06 million to € 0.78 million, and operating EBIT totaled € 0.30 million compared to € 0.35 million in the previous year. Thus third-quarter earnings declined slightly year-on-year, but operating results in the third quarter of the current financial year nevertheless showed an improvement compared to the first and second quarters.
In Germany (51% of Group revenues), revenues were up 3% in the first three quarters of the 2011/12 business year to € 28.97 million. Whereas revenues of the Professional Services segment at the Munich and Cologne offices basically remained at the prior-year level, the Langen/Frankfurt office reported a 14% revenue increase. Revenue of the Network Performance Channel business also rose. Following the restructuring implemented in the first quarter of the current financial year, revenues of the FINAS business area climbed by 6%. Operating EBITDA in Germany amounted to € 1.25 million, a decline of 6% from the previous year, and operating EBIT at € 0.75 million was at the prior-year level. Third-quarter revenue growth was 6%, with operating EBITDA at € 0.38 million and operating EBIT at € 0.23 million. In the first quarter restructuring costs relating to the FINAS segment totaled € 0.68 million. As a consequence, EBITDA and EBIT in the first nine months of 2011/12 amounted to € 0.58 million and € 0.08 million respectively.
Michael Hofer, CEO of BRAIN FORCE HOLDING AG
Group revenues up 10% from the previous year
Restructuring costs burden Group earnings
Q3 earnings improvement in 2011/12 compared to Q1 and Q2
Third-quarter revenue increase of 6% in Germany
Revenue growth and earnings improvement in Italy despite a difficult market environment
Further revenue growth in the Netherlands but reduction in employee capacity utilization
In Italy (30% of Group revenues), revenues rose by 9% to € 17.33 million in the first nine months. A significant earnings improvement was achieved in spite of the ongoing difficult market environment. Operating EBITDA in Italy was up 22% to € 1.31 million, and operating EBIT increased by 48% to € 0.80 million. In the third quarter, revenues were up 5%, operating EBITDA rose by € 0.09 million to € 0.48 million, and operating EBIT climbed by € 0.06 million to € 0.31 million. Market research companies expect the economic environment in Italy to remain difficult.
In the Netherlands (15% of Group revenues), revenues climbed 43% to € 8.41 million. However, operating EBITDA was down to € 0.27 million from the prior-year level of € 0.35 million, and operating EBIT in the first nine months of 2011/12 turned negative, declining to € -0.11 million from € 0.25 million in the prioryear period. After considerable revenue and earnings improvements in past quarters, a negative EBIT was reported in the second and third quarter of the current business year. This development can be attributed to the below-average employee capacity utilization rate for the work force which had been increased in the region. Positive earnings are expected in upcoming quarterly periods as a consequence of measures being implemented to improve capacity utilization.
Expansion of Network Performance Channel activities in the Central East Europe region
Growth was particularly achieved in the Process Optimization segment in Austria. Operating EBITDA was up 1% to € 0.15 million and operating EBIT rose by 2% to € 0.08 million. The company Network Performance Channel GmbH was established in Austria during the current business year as a means of expanding activities in the Network Performance Channel segment. As a result we expect further growth and improved earnings in the Central East Europe region in the future. Third-quarter revenues amounted to € 0.92 million, down 6% from the prior-year quarter. Operating EBITDA in the third quarter increased by € 0.05 million year-on-year to € 0.14 million, and operating EBIT was also up by € 0.05 million to € 0.12 million.
In Central East Europe (4% of Group revenues), revenues could be increased by 5% to € 2.58 million.
28% reduction of holding costs in the third quarter
EBITDA of the Holding and Other segment totaled € -1.27 million in the first three quarters of 2011/12, reflecting higher expenditures of € 0.03 million compared to the previous year. Third-quarter EBIT improved from € -0.46 million to € -0.33 million.
We have defined our objectives for the 2011/12 financial year as increasing revenue from the prior-year level and achieving positive operating results. The 10% revenue increase clearly confirms that we are on the right track in boosting revenues. We also anticipate enhanced profitability in the future and thus an improvement in operating results thanks to the measures being implemented to strengthen sales and the related efforts to attract new customers as well as the expansion of our Network Performance Channel activities.
Yours
Michael Hofer
In the first nine months of the 2011/12 business year, the BRAIN FORCE Group generated revenues of € 57.29 million, a rise of 10% from the prior-year period. All operating units succeeded in posting revenue growth. Significant growth rates were posted particularly in Italy, which faced a persistently difficult economic environment, as well as in the Netherlands.
As a consequence of the strengthening of sales activities, the related increase in sales expenses as well as lower license sales, operating EBITDA (before restructuring expenses) decreased by 12% to € 1.71 million (previous year: € 1.95 million) in spite of the positive revenue development. Operating EBIT declined from € 0.35 million to € 0.21 million.
Moreover, restructuring costs of € 0.68 million negatively impacted earnings in the current financial year. The restructuring relates to the FINAS business area (front office solutions for financial service providers) in Germany. This business area developed quite positively in the past financial year on the basis of several license sales and by taking advantage of short-time working. However, at the end of the first quarter the management decided to reduce the number of employees in order to enable a sustainable positive development. Taking account of the costs for restructuring the FINAS business area, Group EBITDA amounted to € 1.03 million and Group EBIT totaled € -0.46 million.
The financial result of € -0.55 million remained virtually unchanged from the comparable prior-year figure. The increased financing expenses connected to factoring were in contrast to foreign currency translation gains. Current financing costs primarily relate to a fixed-interest long-term bonded loan. The result from associates (SolveDirect Service Management GmbH) amounted to € -1.09 million compared to € -1.34 million in the previous year. This includes the share of earnings attributable to BRAIN FORCE of € -0.27 million (previous year: € -0.75 million) and € -0.82 million (previous year: € -0.59 million) to the dilutive effect of further capital increases on the part of the 3TS Cisco Growth Funds to finance the expansion.
On balance, the profit before tax of the BRAIN FORCE Group totaled € -2.10 million (previous year: € -1.54 million), whereas the profit after tax amounted to € -2.45 million (previous year: € -1.83 million). The decrease of € 0.62 million is mainly due to the restructuring costs.
Earnings per share were € -0.16 (previous year: € -0.12). The earnings per share adjusted for restructuring costs was € -0.13.
Group revenues in the third quarter of the 2011/12 business year were up by 6% to € 19.44 million. Thus the Group succeeded in posting a revenue increase for the sixth consecutive quarter, with Germany, Italy and the Netherlands all reporting third-quarter revenue growth. Revenues were up 6% in Germany to € 9.97 million, and rose by 5% in Italy to € 5.71 million and 13% in the Netherlands to € 2.83 million. In contrast, revenues of the Central East Europe region decreased by € 0.06 million to € 0.92 million.
EBITDA of the BRAIN FORCE Group amounted to € 0.78 million in the third quarter (previous year: € 0.84 million), and the Group's operating EBIT was € 0.30 million (previous year: € 0.35 million). Thus thirdquarter earnings declined slightly year-on-year, but operating results in the third quarter of the current business year nevertheless showed a marked improvement compared to the first and second quarters. Operating EBITDA in Germany was down by € 0.10 million to € 0.38 million, whereas operating EBIT amounted to € 0.23 million, a decline of € 0.07 million from the prior-year period. Operating EBITDA in Italy rose by 21% to € 0.48 million and operating EBIT was up 25% to € 0.31 million. In the Netherlands the operating EBITDA amounted to € 0.10 million and operating EBIT was at € -0.03 million. Thus in part a considerable decline was reported compared to the previous year. However, third-quarter earnings improved again compared to the second quarter of the current financial year. The drop in earnings is due
Improvement of at equity results in the light of further capital increases
Decline in net result for the period due to restructuring expenses
Sixth consecutive quarters of revenue growth
Positive operating results in the third quarter
to the below-average capacity utilization of the staff in the light of the previous increase in the number of employees. The Central East Europe region showed improved earnings compared to the prior-year quarter, with operating EBITDA at € 0.14 million and operating EBIT at € 0.12 million. EBIT of the Holding and Other segment totaled € -0.33 million, reflecting a decline in holding costs of € 0.13 million.
Reduction of cash flow from operating activities due to increased working capital and restructuring expenditures
Slight rise in investments due to growth in the Netherlands
Cash and cash equivalents of € 4.96 million at the reporting
In the first nine months of 2011/12, the gross cash flow from continuing operations amounted to € 0.87 million, a decline of € 0.89 million from the prior-year level of € 1.76 million. This decrease is mainly attributable to the reduced earnings, particularly as a consequence of the restructuring expenses incurred in the first quarter. The third quarter of the current financial year developed much more positively, featuring a gross cash flow from continuing operations of € 0.72 million, down from € 0.78 million in the third quarter of the previous year. The cash flow from operating activities turned negative, amounting to € -0.46 million in the first nine months compared to € 3.29 million in the prior year. In addition to the € 0.65 million increase in working capital to € 1.99 million, the cash flow from operating activities was burdened by cash outflows for the implemented restructuring measures. The cash flow from operating activities improved considerably in the third quarter, similar to the development of the gross cash flow from continuing operations, and amounted to € 0.67 million.
The cash flow from investing activities totaled € -0.99 million (previous year: € -0.99 million). Investments in property, plant and equipment and other intangible assets amounted to € 1.01 million, a slight rise of € 0.01 million from the previous year. Own work capitalized to the amount of € 0.68 million in the first nine months of 2011/12 was in contrast to scheduled depreciation of € 0.84 million.
The cash flow from financing activities amounting to € 0.68 million (previous year: € -1.45 million) reflected the increase in current financial liabilities. Non-current financial liabilities totaling € 9.98 million are due for repayment in the year 2014. As of June 30, 2012, the BRAIN FORCE Group had cash and cash equivalents totaling € 4.96 million (September 30, 2011: € 5.81 million).
The balance sheet total of the Group amounted to € 48.76 million as at June 30, 2012, whereas equity was € 16.29 million. The equity ratio declined from 38% on September 30, 2011 to 33% at the reporting date, which is a consequence of the negative net result for the period of € -2.45 million. The net result for the period includes the negative earnings contribution of € -1.09 million from SolveDirect Service Management GmbH, which is consolidated at equity, as well as € -0.68 million in expenses for restructuring measures.
Working capital (inventories plus trade receivables plus other current receivables less trade payables and other current liabilities) rose from € 1.34 million to € 1.99 million in the first three quarters, which is mainly related to the increase in trade receivables (up € 0.85 million) and as well as other receivables and liabilities (up € 0.67 million). Trade payables showed a decline of € 0.06 million in contrast to the € 1.11 million increase in other liabilities. Net debt amounted to € 7.35 million at the reporting date of June 30, 2012, a rise of € 0.32 million year-on-year and € 1.53 million higher than the comparable figure as at September 30, 2011. Gearing (the ratio of net debt to equity) of the BRAIN FORCE Group was 45% as at June 30, 2012 compared to 31% as at September 30, 2011.
Equity in € million 30.6.2012 16.29 30.9.2011
18.72
date
30.9.2011 5.82
In Germany the FINAS tool BU-Check was released. This tool analyses the precaution for disability and incapacity. It graphs with a small data entry work the actual supply situation of the customer and offers optimal tariffs for covering. This tool was developed as an app for smartphones and iPad, too. More apps are in the pipeline. The improvement of the usability and the look and feel of the BRAIN FORCE FINAS Suite are in full swing. The following applications have the new smart FINAS look, already: BRAIN FORCE Finanzanalyse Center, BRAIN FORCE bAV-Vorteilsrechner, and the new consulting tool BRAIN FORCE BU-Check. In the up coming weeks the consulting application for retirement, BRAIN FORCE Vorsorgeoptimierung, as well as the application for needs analysis in the insurance sector, BRAIN FORCE Risikoabsicherung, will follow.
In the Netherlands the infrastructure framework for Citrix XenApp are released. With these best practices BRAIN FORCE is able to deliver high quality projects with comprehensive documentation in shorter project duration at competing prices. Packaging Robot 3.2 is released. This release offers integration with BRAIN FORCE Process Manager for increased efficiency and enhanced automatic documentation features. Packaging Robot 3.2 also includes an updated version of the MSI Editor. Preparations for release of a service release in April 2012. This service release includes support for: 64-bits, Windows Libraries, improvements for VDI and a large number of smaller optimizations.
SolveDirect successfully concluded the project Collaborative Service Management, which was partially financed by the Austrian Research Promotion Agency FFG, by implementing the integration of the SD.Calendar, SD.Dialog and SD.Survey modules into the releases 5.0 and 5.6. With the release 5.7, customers in the standard version received a password policy, advanced calendar functions and XML Web services, an accelerated setup of connections to BMC Remedy, and an enhanced overview of the order history. Subsequently, the development of the IT Service Management solution Service Grid was launched, which anticipates service bottlenecks through predictive SLAs and further increases the integration of the partners involved in the value added chain.
Our subsidiary in Italy updated the add-ons for Microsoft Dynamics AX and NAV within the context of its maintenance activities, and expanded it to include further sector-specific functionalities for the steel industry. As one of the first Microsoft partners, BRAIN FORCE Italy participated in the Private Beta Program for Dynamics AX 2012 and tested the latest version in the context of a customer migration project. The conversion of our own ERP software Visual Space to a .Net technology was continued. The BRAIN FORCE solution NG4 for stock exchange trading was functionally enhanced in order to be able to independently market it in the future. The software arose from a customer project. It manages trading orders and transmits them via interfaces to post-trading and position-keeping systems.
Development of the FINAS modules and smart FINAS
Infrastructure Framework updated, Workspace Manager for virtual desktop infrastructures optimiemized
Integration of SD.Calendar, SD.Dialog and SD.Survey modules, launch of development work for Service Grid solution
Add-ons for Microsoft Dynamics extended, participation in Beta Program for Dynamics AX 2012
The total number of employees of the BRAIN FORCE Group as at June 30, 2012 amounted to 515 salaried employees, which is an increase of 5% compared to June 30, 2011. In addition, 226 people employed on a freelance basis – a decrease of 5% – worked on various customer projects. In Germany and the Netherlands the number of employees (salaried and subcontractors) at balance sheet date – 333 respectively 86 employees – remained almost unchanged compared to prior year's level. The workforce in Italy expanded by 4% compared to the previous year. The number of employees in the Central East Europe region increased by 11% or 4 employees. The segment Holding and Other employed 4 people as at June 30, 2012 compared to 7 employees on June 30, 2011.
In total the BRAIN FORCE Group employed 741 people at the reporting date, which is an increase of 2% or 11 employees compared to June 30, 2011.
The breakdown of staff (salaried and subcontractors) by geographical segment as at June 30, 2012 is as follows:
On average the staff of BRAIN FORCE in the period of October 2011 to June 2012 comprised 521 salaried employees (prior year: 499) and 233 people employed on a freelance basis (prior year: 224). The total average number of employees therefore amounted to 754, an increase of 4% compared to the prior-year period.
As at June 30, 2012 the order volume at group level amounted to € 20.11 million, which is an increase by 7% compared to June 30, 2011.
Compared to June 30, 2011 mainly Italy and the Netherlands achieved a considerable increase in their order volumes of 34% and 24% respectively. The order volume in Germany decreased by 7% compared to June 30, 2011, which is mainly due to the planned processing of a long-term customer contract. In the region Central Eastern Europe the order volume decreased by € 0.20 million to € 0.32 million compared to June 30, 2011.
On June 30, 2012 the order volumes attributable to the respective regions are as follows: 0[HS`
The objective of generating revenue growth in the 2011/12 financial year was confirmed by the 10% revenue increase compared to the first nine months of the previous year. Revenue climbed 6% year-on-year in the third quarter. The company is optimistic about prospects for growth in the entire 2011/12 financial year on the basis of the higher order volume as well as the current sales pipeline. Following a positive operating EBIT in the second and third quarters, the earnings situation has stabilized. Thus a positive earnings contribution can also be expected in the fourth quarter. The price pressure prevailing on the market, which is related to cost reduction programs of important key accounts, mainly in the finance and telecommunications sectors as well as in the aviation industry, requires the continued implementation of measures to strengthen the Group's sales capacities. This is designed to increasingly attract new customers from economic sectors displaying growth potential. A further increase in earnings should be achieved in the future by the increase in license sales and the expansion of the Group's Network Performance Channel activities.
Due to the expected effects of strengthening sales operations and the further homogenization of the portfolio of the BRAIN FORCE Group, we expect positive operating results to be generated from today's perspective in the 2011/12 financial year as a whole.
| Group Income Statement in EUR | 56 4-6/2012 |
Entwicklung des Eigenkapitals 4-6/2011 |
10/2011-6/2012 | 10/2010-6/2011 |
|---|---|---|---|---|
| Revenues | 57 Cash-flow-Statement 19,437,513 |
18,344,576 | 57,288,601 | 52,248,160 |
| Cost of sales | -15,362,993 | -14,378,004 | -45,334,568 | -41,360,471 |
| 58 Gross profit |
Konzernanhang 4,074,520 |
3,966,572 | 11,954,033 | 10,887,689 |
| Selling expenses | 58 Die Gesellschaft -1,788,551 58 |
-1,571,584 Bilanzierungs- und Bewertungsgrundsätze |
-5,643,924 | -4,768,911 |
| Administrative expenses | -1,742,969 59 |
-1,929,813 Konsolidierungskreis / Konzernunternehmen |
-5,612,873 | -5,409,076 |
| Other operating expenses | -243,109 | -120,803 | -566,390 | -397,323 |
| Other operating income | 4,756 Erläuterungen zur Gewinn- und Verlustrechnung |
2,867 | 82,312 | 40,370 |
| 65 Operating profit/loss before non-recurring items (Operating EBIT) |
304,647 65 Umsatzerlöse (1) |
347,239 | 213,158 | 352,749 |
| Restructuring costs | 0 65 Aufwandsarten (2) |
0 | -677,207 | 0 |
| Operating profit/loss after non-recurring items (EBIT) | 65 304,647 |
Sonstige betriebliche Erträge (3) 347,239 |
-464,049 | 352,749 |
| Financial income | 66 0 |
21,349 | Aufwendungen für Material und bezogene Leistungen (4) 3,021 |
27,888 |
| Financial expenses | 66 Personalaufwand (5) -138,955 |
-191,855 | -548,919 | -575,976 |
| Financial result | 66 Finanzergebnis (6) -138,955 |
-170,506 | -545,898 | -548,088 |
| Result from associates | 66 Ertragsteuern (7) -64,555 |
-218,803 | -1,091,089 | -1,341,536 |
| Profit/loss before tax | 101,137 | -42,070 | -2,101,036 | -1,536,875 |
| 67 Income taxes |
Erläuterungen zur Bilanz -281,614 |
-238,793 | -347,293 | -289,526 |
| Profit/loss after tax | 67 Sachanlagen (8) -180,477 68 Firmenwerte (9) |
-280,863 | -2,448,329 | -1,826,401 |
| attributable to the equity holders of the parent | -192,943 69 |
-280,863 Sonstige immaterielle Vermögenswerte (10) |
-2,443,078 | -1,826,401 |
| attributable to minor interests | 12,466 70 |
0 Anteile an assoziierten Unternehmen (11) |
-5,251 | 0 |
| Earnings per share – undiluted and diluted | -0.01 70 Finanzanlagen (12) |
-0.02 | -0.16 | -0.12 |
| Earnings per share adjusted 1) | -0.01 70 Latente Steuern (13) |
-0.02 | -0.13 | -0.12 |
| Statement of Comprehensive Income in EUR | 72 4-6/2012 |
Forderungen aus Lieferungen und Leistungen (15) 4-6/2011 |
10/2011-6/2012 | 10/2010-6/2011 |
|---|---|---|---|---|
| Profit/loss after tax | 73 -180,477 |
Sonstige Forderungen und Vermögenswerte (16) -280,863 |
-2,448,329 | -1,826,401 |
| Changes in fair values of available-for-sale financial assets | 73 Zahlungsmittel (17) 45 |
284 | 4,211 | -1,611 |
| Currency translation differences | 73 Eigenkapital (18) -4,268 |
-20,025 | -7,229 | -30,934 |
| Other result | 74 -4,223 77 |
Rückstellungen für langfristige Personalverpflichtungen (19) -19,741 Finanzverbindlichkeiten (20) |
-3,018 | -32,545 |
| Comprehensive income/loss | -184,700 77 |
-300,604 Verbindlichkeiten aus Lieferungen und Leistungen (21) |
-2,451,347 | -1,858,946 |
| attributable to the equity holders of the parent | -197,166 78 |
-300,604 Sonstige Verbindlichkeiten (22) |
-2,446,096 | -1,858,946 |
| attributable to minor interests | 12,466 78 Steuerrückstellungen (23) |
0 | -5,251 | 0 |
| Key ratios by segment 10/2011-6/2012 in EUR |
Germany | Italy 78 |
The Nether Erläuterungen zum Cash-flow-Statement lands |
Central East Europe |
Holding and Other |
Group |
|---|---|---|---|---|---|---|
| Revenues (consolidated) | 28,973,899 | 78 17,327,275 |
Cash-flow aus laufender Geschäftstätigkeit (25) 8,410,937 |
2,576,490 | 0 | 57,288,601 |
| EBITDA | 576,362 | 79 1,312,858 |
Cash-flow aus Investitionstätigkeit (26) 267,318 |
148,871 | -1,272,503 | 1,032,906 |
| Operating EBITDA 1) | 1,253,569 | 79 1,312,858 |
Cash-flow aus Finanzierungstätigkeit (27) 267,318 |
148,871 | -1,272,503 | 1,710,113 |
| Depreciation and amortization | -500,301 | 79 -511,097 |
Zahlungsmittelbestand (28) -374,946 |
-70,024 | -40,587 | -1,496,955 |
| Operating EBIT 1) | 753,268 | 801,761 | -107,628 | 78,847 | -1,313,090 | 213,158 |
| Restucturing costs | -677,207 | 79 0 |
Finanzrisikomanagement 0 |
0 | 0 | -677,207 |
| EBIT | 76,061 | 801,761 | -107,628 Sonstige Angaben |
78,847 | -1,313,090 | -464,049 |
| 81 |
| Key ratios by segment 10/2010-6/2011 in EUR |
Germany | 81 Italy 82 |
Ergebnis je Aktie (30) The Nether lands |
Central East Europe |
Holding and Other Angaben über Beziehungen zu nahe stehenden Unternehmen |
Group |
|---|---|---|---|---|---|---|
| Revenues (consolidated) | 28,009,357 | 15,884,565 | 5,900,038 und Personen (31) |
2,454,200 | 0 | 52,248,160 |
| EBITDA | 1,338,377 | 1,075,921 82 |
624,759 Mitarbeiterbeteiligungen (32) |
147,422 | -1,240,473 | 1,946,006 |
| Operating EBITDA 1) | 1,338,377 | 83 1,075,921 |
Finanzinstrumente (33) 624,759 |
147,422 | -1,240,473 | 1,946,006 |
| Depreciation and amortization | -574,627 | 84 -534,124 |
-370,597 | Verpflichtungen aus Leasinggeschäften (34) -70,103 |
-43,806 | -1,593,257 |
| Operating EBIT 1) | 763,750 | 84 541,797 |
Angaben über Arbeitnehmer (35) 254,162 |
77,319 | -1,284,279 | 352,749 |
| Restucturing costs | 0 | 84 0 |
0 | Geschäftsvorfälle nach dem Bilanzstichtag (36) 0 |
0 | 0 |
| EBIT | 763,750 | 84 541,797 |
Freigabe zur Veröffentlichung (37) 254,162 |
77,319 | -1,284,279 | 352,749 |
84 Mitglieder des Vorstandes und des Aufsichtsrates (38)
1) adjusted for restructuring costs
| Cash Flow Statement in EUR | 10/2011-6/2012 | 10/2010-6/2011 |
|---|---|---|
| Profit / loss before tax | -2,101,036 | -1,536,875 |
| Depreciation and amortization | 1,496,955 | 1,593,257 |
| Financial result | 545,898 | 548,088 |
| Result from associates | 1,091,089 | 1,341,536 |
| Gains / losses from the disposal of property, plant and equipment and intangible assets | 2,226 | 6,418 |
| Changes in non-current provisions and liabilities | -166,759 | -190,512 |
| Gross cash flow of continuing operations | 868,373 | 1,761,912 |
| Changes in inventories | -164,340 | -208,671 |
| Changes in trade receivables | -857,287 | 1,236,898 |
| Changes in trade payables | -62,484 | 838,864 |
| Changes in other current assets and liabilities | 384,990 | 469,790 |
| Currency translation differences | 21,033 | -12,585 |
| Net interest paid | -517,359 | -505,696 |
| Income taxes paid | -136,033 | -292,248 |
| Cash flow from operating activities of continuing operations | -463,107 | 3,288,264 |
| Investments in property, plant and equipment and other intangible assets | -1,014,838 | -996,137 |
| Sale of property, plant and equipment and other intangible assets | 9,187 | 10,379 |
| Sale of financial assets | 14,281 | 0 |
| Cash flow from investing activities of continuing operations | -991,370 | -985,758 |
| Increase in financial liabilities | 735,599 | 70,860 |
| Repayment of financial liabilities and bank overdrafts | -57,099 | -1,517,101 |
| Dividends paid | 0 | 0 |
| Capital increase | 0 | 0 |
| Purchase of treasury shares | 0 | 0 |
| Cash flow from financing activities of continuing operations | 678,500 | -1,446,241 |
| Change in cash and cash equivalents from continuing operations | -775,977 | 856,265 |
| Change in cash and cash equivalents from discontinued operation | -69,254 | -293,720 |
| Cash and cash equivalents at the beginning of the period | 5,806,602 | 4,115,563 |
| Change in cash and cash equivalents | -845,231 | 562,545 |
| Cash and cash equivalents at the end of the period | 4,961,371 | 4,678,108 |
| Balance Sheet in EUR | 30.6.2012 | 30.9.2011 |
|---|---|---|
| ASSETS | ||
| Property, plant and equipment | 1,360,515 | 1,593,534 |
| Goodwill | 11,001,151 | 11,001,151 |
| Other intangible assets | 2,365,609 | 2,626,407 |
| Investments in associates | 7,805,801 | 8,896,890 |
| Financial assets | 33,306 | 45,351 |
| Other receivables and assets | 84,282 | 91,229 |
| Deferred tax assets | 1,900,008 | 1,813,823 |
| Non-current assets | 24,550,672 | 26,068,385 |
| Inventories | 468,869 | 304,529 |
| Trade receivables | 16,214,986 | 15,357,699 |
| Other receivables and assets | 2,564,937 | 1,892,131 |
| Cash and cash equivalents | 4,961,371 | 5,806,602 |
| Current assets | 24,210,163 | 23,360,961 |
| Total assets | 48,760,835 | 49,429,346 |
| EQUITY AND LIABILITIES | ||
| Share capital | 15,386,742 | 15,386,742 |
| Reserves | 9,596,661 | 9,599,679 |
| Retained earnings | -8,711,994 | -6,268,916 |
| Equity attributable to equity holders of the parent company | 16,271,409 | 18,717,505 |
| Minor Interests | 20,749 | 0 |
| Equity | 16,292,158 | 18,717,505 |
| Financial liabilities | 9,981,578 | 9,973,541 |
| Other liabilities | 182,754 | 151,150 |
| Provisions for post-employment benefits | 1,242,550 | 1,440,583 |
| Deferred tax liabilities | 126,924 | 136,736 |
| Non-current liabilities | 11,533,806 | 11,702,010 |
| Financial liabilities | 2,327,463 | 1,657,000 |
| Trade payables | 8,581,118 | 8,643,602 |
| Other liabilities | 8,682,438 | 7,574,840 |
| Income tax provisions | 1,129,734 | 872,755 |
| Other provisions | 214,118 | 261,634 |
| Current liabilities | 20,934,871 | 19,009,831 |
| Total equity and liabilities | 48,760,835 | 49,429,346 |
| Changes in equity | Attributable to equity holders of the parent company | |||||
|---|---|---|---|---|---|---|
| in EUR | Share capital | Share premium | Other reserves | Retained earnings | Minor interests | Total equity |
| Balance 1.10.2010 | 15,386,742 | 11,033,310 | -287,239 | -6,023,248 | 0 | 20,109,565 |
| Total result for the period 10/2010-6/2011 | 0 | 0 | -32,545 | -1,826,401 | 0 | -1,858,946 |
| Balance 30.6.2011 | 15,386,742 | 11,033,310 | -319,784 | -7,849,649 | 0 | 18,250,619 |
| Transfer of reserves | 0 | -1,122,954 | 0 | 1,122,954 | 0 | 0 |
| Total result for the period 7-9/2011 | 0 | 0 | 9,107 | 457,779 | 0 | 466,886 |
| Balance 30.9.2011 | 15,386,742 | 9,910,356 | -310,677 | -6,268,916 | 0 | 18,717,505 |
| Change in Minor interests | 0 | 0 | 0 | 0 | 26,000 | 26,000 |
| Total result for the period 10/2011-6/2012 | 0 | 0 | -3,018 | -2,443,078 | -5,251 | -2,451,347 |
| Balance 30.6.2012 | 15,386,742 | 9,910,356 | -313,695 | -8,711,994 | 20,749 | 16,292,158 |
This interim report of BRAIN FORCE HOLDING AG as at June 30, 2012 has been prepared in accordance with the principles contained in the International Financial Reporting standards (IFRS), as stipulated in IAS 34, "Interim Financial Reporting". The accounting and measurement principles applied in preparing the consolidated financial statements presented in the annual report as at September 30, 2011 remain unchanged. The statement of comprehensive income was changed due to the minority interest included as of the second quarter 2011/12. As of now the group income statement is presented separately with a result-breakdown for shareholders of the parent company and minority shareholders, followed by the transition to the comprehensive income of the respective period. For more information on accounting and measurement principles, we refer to the annual report and the consolidated financial statements as at September 30, 2011, which serve as the basis for this interim report.
All subsidiaries, including those companies in which BRAIN FORCE HOLDING AG directly or indirectly holds more than half of the voting rights or over which BRAIN FORCE exerts a controlling influence are included in the consolidated financial statements.
The consolidated group changed as follows compared to the reporting date of September 30, 2011: Based on a notarial deed dated December 22, 2011, BRAIN FORCE HOLDING AG established the company Network Performance Channel GmbH based in Vöcklabruck, Austria in cooperation with Hofer Management GmbH. BRAIN FORCE HOLDING AG holds 74% of shares in Network Performance Channel GmbH. The object of the company is trading with and developing IT products as well as providing IT services. Network Performance Channel GmbH was entered into the commercial register on January 13, 2012.
BRAIN FORCE Network Solutions B.V., Veenendaal, Netherlands, in which BRAIN FORCE HOLDING AG holds 100% of shares, was deconsolidated in the second quarter of the current business year. As of the beginning of 2010 BRAIN FORCE Network Solutions B.V. has not been exercising any operative business activities and was deleted from the commercial register on January 31, 2012 after the completion of the liquidation procedure.
Group revenues increased by 10% to € 57.29 million compared to previous year´s period. The operative EBITDA (before restructuring expenses) amounted to € 1.71 million and thus decreased by € 0.24 million compared to the previous year. The operating result (EBIT) slumped from 0.35 to € 0.21 million. The group result was burdened with restructuring expenses in the amount of € 0.68 million, which arose in the first quarter in Germany. This resulted in a group EBITDA for the first nine months of € 1.03 million and a group EBIT of € -0.46 million.
With € -0.55 million the financial result remains almost unchanged compared to previous year. Increased financing costs were compensated with gains from currency conversion. The result from associated companies amounts to € -1.09 million and can be attributed to SolveDirect Service Management GmbH. Out of this amount € -0.27 million can be allotted to the result contribution of the current business year and € -0.82 million to the dilutive effect through further capital increases of 3TS Cisco Growth Funds for financing the expansion. The interest held in Solve-Direct Service Management GmbH was reduced from 67.39% as of September 30, 2011 to 57.57% as of June 30, 2012.
In the first nine months of the current business year the result after taxes (including minority interests) amounted to € -2.45 million compared to € -1.83 million in the previous year.
BRAIN FORCE HOLDING AG reports according to geographic segments in accordance with the management approach contained in the stipulations of IFRS 8. Segment earnings are reported before brand licensing costs and intercompany charges. Segment information is included in this interim report directly after the consolidated income statement.
In the first nine months the gross cash flow from continuing operations reached € 0.87 million and was therefore € 0.89 million below previous year's level of € 1.76 million. The cash flow from operating activities turned in the first three quarters from € + 3.29 million to € -0.46 million. In this respect a decline in earnings as well as an increase of the working capital by € 0.65 million to € 1.99 million had a negative impact.
The cash flow from investing activities developed almost unchanged and amounted to € -0.99 million as in the previous year. The cash flow from financing activities amounted to € 0.68 million and shows and increase in financial liabilities, whereas financial liabilities in the previous year´s period were reduced by € 1.45 million.
At the reporting date the balance sheet total was € 48.76 million, which is a decrease by 1% compared to September 30, 2011. Non-current assets made up 50% of total assets and amounted to € 24.55 million on the reporting date compared to € 26.07 million on September 30, 2011. Tangible assets and other intangible assets decreased by € 0.49 million. Capital expenditures on property, plant and equipment and other intangible assets totaling € 1.01 million in the reporting period (of which € 0.68 million comprised product development costs) were in contrast to scheduled depreciation of € 1.50 million. The company´s goodwill remains at the same level with € 11.00 million. Investments in associated companies declined by € 1.09 million to € 7.81 million. As at June 30, 2012 the investment in SolveDirect was 57.57% (September 30, 2011: 67.39%).
Current assets comprised 50% of total assets on the reporting date of June 30, 2012. Trade receivables increased by about 6% from the comparable figure on September 30, 2011 to € 16.21 million or 33% of total assets. Cash and cash equivalents decreased by 15% compared to the reporting date of September 30, 2011 and amounted to € 4.96 million.
IFRS-based equity as at June 30, 2012 was € 16.29 million, corresponding to an equity ratio of 33%. Non-current liabilities were reduced only slightly from € 11.70 million to € 11.53 million.
Current liabilities rose by 10% to € 20.93 million, which can be mainly attributed to an increase in current financial liabilities by € 0.67 million to € 2.33 million and an increase of other liabilities by € 1.11 million to € 8.68 million. At the same time trade payables decreased by € 0.06 million to € 8.58 million. The working capital at the reporting date was € 1.99 million, which is an increase by € 0.65 million compared to September 30, 2011. Net debt on the reporting date, June 30, 2012 was € 7.35 million, which equals an increase by € 1.53 million in comparison to September 30, 2011.
As at June 30, 2012 the number of outstanding shares was 15,386,742. Authorized capital amounted to € 7,693,371.
This interim report as at June 30, 2012 was neither audited nor subject to an auditor's review.
On October 24, 2011 BRAIN FORCE HOLDING AG announced the mutually agreed termination of the management board contract of Mr. Thomas Melzer as of December 31, 2011. The original contract valid until September 30, 2012 was thus terminated prematurely. Furthermore, on December 23, 2011 the company announced that the supervisory board appointed Mr. Hannes Griesser the new CFO with effect from January 1, 2012.
At the 14th ordinary general meeting on March 1, 2012, amongst other things, BRAIN FORCE HOLDING AG held an election to the supervisory board. In this respect the terms of Mr. Stefan Pierer, Mr. Friedrich Roithner and Mr. Josef Blazicek – expiring at the end of the general meeting – were prolonged for five years. Mr. Wolfgang Hickel asked to be excluded from a reelection. This request was respected and concurrently it was resolved to reduce the number of supervisory board members from five to four.
On May 30, 2012 the general meeting of SolveDirect Service Management GmbH, Vienna decided on a capital increase, which is not yet registered. Upon entry of the capital increase in the commercial register the share of BRAIN FORCE HOLDING AG in SolveDirect Service Management GmbH will decrease from 57.57% to 53.16%.
Vienna, August 14, 2012
The Management Board
Michael Hofer Hannes Griesser
| Date Event | Event |
|---|---|
| August 14, 2012 | Report on the first three quarters of 2011/12 |
| December 19, 2012 | Annual report 2011/12 |
| Investor Relations: | Hannes Griesser |
|---|---|
| Telephone: | +43 1 263 09 09 88 |
| E-Mail: | [email protected] |
| Internet: | www.brainforce.com |
| Vienna Stock Exchange: BFC | |
| Reuters: | BFCG |
| Bloomberg: | BFC:AV |
| Datastream: | O:BFS |
| ISIN: | AT0000820659 |
BRAIN FORCE HOLDING AG Am Hof 4 1010 Vienna Austria
Telephone: +43 1 263 09 09 0 Fax: +43 1 263 09 09 40
[email protected] www.brainforce.com
www.brainforce.com
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