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RTX Interim / Quarterly Report 2016
3413_rns_2017-11-28_8e6629ce-dc55-41df-a8e8-cb5c19af1913.pdf
Interim / Quarterly Report
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INTERIM REPORT FOR
Q4 2016/17
(the period 01.07.2017 - 30.09.2017)
ANNOUNCEMENT
to Nasdaq Copenhagen A/S and the media
Nørresundby, 28 November 2017
Announcement no. 55/2017
No. of pages: 12
SUBSTANTIAL GROWTH IN REVENUE AND PROFIT IN Q4
The Board of Directors of RTX A/S has today considered and adopted the Group's interim report for the fourth quarter of 2016/17 (covering the period 01.07.2017 – 30.09.2017)
SUMMARY FOR THE FOURTH QUARTER OF 2016/17 FOR THE RTX GROUP
- Net revenue increased in Q4 by 17.6% to DKK 113.8 million corresponding to a revenue growth of DKK 17.1 million compared to Q4 of 2015/16. Revenue growth in Q4 of 2016/17 was negatively affected by the development in the US dollar exchange rate, and corrected for this effect the growth in revenue was 22.5%
- Revenue apportioned across RTX's business units as follows:
- Business Communications increased revenue by DKK 11.7 million to DKK 75.9 million corresponding to an increase of 18.1% compared to Q4 of 2015/16.
- Design Services increased revenue by DKK 5.4 million to DKK 37.9 million corresponding to a revenue growth of 16.7% compared to Q4 of 2015/16.
- Gross profit increased by 23.6% to DKK 64.2 million in Q4 of 2016/17 compared to the same period last year. Due to the revenue mix the gross margin increased to 56.4% compared to the 53.7% in Q4 of 2015/16.
- In Q4 of 2016/17, capacity costs increased by 3.7% due to more investments in own financed development projects and increased staff to meet the higher level of activity in both business units. The increased number of own financed development projects has resulted in capitalization of DKK 6.3 million in Q4 of 2016/17.
- Operating profit (EBIT) increased to DKK 28.7 million compared to DKK 13.1 million in the same period last year. The improved operating profit (EBIT) is primarily a result of the increased revenue and gross profit compared to the same period last year.
- Cash flows from operating activities amounted to DKK 23.7 million in Q4 of 2016/17 compared to DKK 12.5 million in Q4 of 2015/16.
REVENUE PER QUARTER
EBIT PER QUARTER
RTX
WIRELESS WISDOM
RTX A/S, Strømmen 6, DK-9400 Nørresundby, Denmark | Tel +45 96 32 23 00 | Fax +45 96 32 23 10 | VAT DK 17 00 21 47 | Web www.rtx.dk | E-mail [email protected]
RTX interim report for the fourth quarter of 2016/17 | 2
SUMMARY OF THE FINANCIAL YEAR 2016/17 FOR THE RTX GROUP
-
In the financial year 2016/17, RTX realized net revenue of DKK 433.5 million equivalent to an increase of 9.6% compared to DKK 395.6 million last year. Revenue apportioned in the business units as follows:
-
Business Communications increased by DKK 21.2 million equivalent to an increase of 7.9%.
-
Design Services increased revenue by 17.7 million equivalent to an increase of 14.0%.
-
Gross profit increased from DKK 229.4 million to DKK 238.5 million and as a consequence of the revenue mix, the gross profit declined from 58.0% to 55.0%.
-
The increased demand for RTX's competencies has resulted in considerable more staff during the financial year. Thus the average number of employees were 34 higher in 2016/17 than in 2015/16. In 2016/17, the capacity costs include the full effect of the increased costs for external lease after the sale of the premises. Investments in development of own financed product series within headsets for office environments and the gaming segment have resulted in increased capacity costs. On this background capacity costs increased by 11.4% compared to the same period last year.
-
In the financial year, RTX has invested in the development of new product series complementing the company's existing communication solutions. These investments have resulted in the capitalization of DKK 17.4 million in 2016/17.
-
Operating profit (EBIT) amounted to DKK 72.3 million compared to DKK 65.8 million in 2015/16, equivalent to an increase of 9.9%.
-
Cash flows from operating activities amounted to DKK 46.7 million compared to DKK 53.4 million in the same period last year.
-
In the financial year 2016/17, RTX has allocated DKK 71.0 million to dividend and share repurchase programmes compared to DKK 44.9 million in the same period last year.
-
The Board of Directors will propose to the Annual General Meeting in January 2018 a dividend of DKK 2.00 per share. At the same time the Board of Directors proposes a reduction of the company's share capital by nominally DKK 1.0 million by annulment of 200,000 treasury shares. RTX expects to finalize the share buy-back programme approved by the Annual General Meeting in 2017 with the acquisition of treasury shares up to DKK 19 million.
OUTLOOK FOR 2017/18
- Combined with the continued investment in a broader product portfolio and technology platform, Management expects revenue between DKK 460-490 million, EBITDA between DKK 72-87 million and Operating Profit (EBIT) between DKK 58-73 million, where especially EBIT should be seen in the light of an increased investment level supporting the newly defined strategic directions of RTX.
RTX A/S
PETER THOSTRUP
Chairman
PETER RØPKE
President & CEO
ENQUIRIES AND FURTHER INFORMATION:
CEO
Peter Røpke, tel +45 96 32 23 00
APPENDICES
Interim report for Q4 2016/17
comprising:
- Group financial highlights and key ratios
- Management report
- Group income statement
- Statement of comprehensive income
- Group balance sheet
- Group equity statement
- Group cash flow statement
- Notes
On Wednesday, 6 December 2017 at 9 am, RTX will hold a meeting for investors and analysts at
ABG Sundal Collier,
Forbindelsesvej 12,
2100 Copenhagen.
At this meeting, the Company's management will comment on the interim report for the fourth quarter of 2016/17.
To register for the meeting, please email [email protected].
Group financial highlights and key ratios
| Amounts in DKK '000 | Q4 2016/17 | Q4 2015/16 | 01.10.16-30.09.17 | 01.10.15-30.09.16 |
|---|---|---|---|---|
| INCOME STATEMENT ITEMS | ||||
| Revenue | 113.8 | 96.7 | 433.5 | 395.6 |
| Gross profit | 64.2 | 51.9 | 238.5 | 229.4 |
| Operating profit/loss (EBIT) | 28.7 | 13.1 | 72.3 | 65.8 |
| EBITDA | 30.1 | 13.9 | 77.2 | 70.0 |
| EBITDA % | 26.4% | 14.4% | 17.8% | 17.7% |
| Net financials | -0.3 | 1.0 | -1.9 | 2.7 |
| Profit/loss before tax (EBT) | 28.4 | 14.1 | 70.4 | 68.5 |
| Profit/loss for the period | 26.1 | 7.4 | 58.2 | 49.5 |
| BALANCE SHEET ITEMS | ||||
| Cash and current asset investments | 151.3 | 202.5 | 151.3 | 202.5 |
| Total assets | 353.0 | 355.4 | 353.0 | 355.4 |
| Equity | 283.0 | 280.6 | 283.0 | 280.6 |
| Liabilities | 70.0 | 74.9 | 70.0 | 74.9 |
| OTHER KEY FIGURES | ||||
| Development costs (own) before capitalization | 9.6 | 7.2 | 36.9 | 25.9 |
| Capitalized development costs | 6.3 | 1.0 | 17.4 | 1.0 |
| Depreciation, amortization and impairment | 1.4 | 0.8 | 4.9 | 4.2 |
| Cash flow from operations | 23.7 | 12.5 | 46.7 | 53.4 |
| Cash flow from investments | 2.3 | -5.8 | -37.0 | 24.4 |
| Investments in property, plant and equipment | 1.4 | 3.6 | 8.9 | 5.8 |
| Increase/decrease in cash and cash equivalents | 15.0 | -0.7 | -61.4 | 27.9 |
| Amounts in DKK '000 | Q4 2016/17 | Q4 2015/16 | 01.10.16-30.09.17 | 01.10.15-30.09.16 |
| --- | --- | --- | --- | --- |
| KEY RATIOS | ||||
| Growth in net turnover (percentage) | 17.6 | 13.7 | 9.6 | 13.2 |
| Profit margin (percentage) | 25.2 | 13.5 | 16.7 | 16.6 |
| Return on invested capital (percentage) | 18.7 | 11.8 | 53.7 | 45.8 |
| Return on equity (percentage) | 9.5 | 2.6 | 20.7 | 18.1 |
| Equity ratio (percentage) | 80.2 | 78.9 | 80.2 | 78.9 |
| EMPLOYMENT | ||||
| Average number of full-time employees | 230 | 212 | 227 | 193 |
| Revenue per employee 1) (DKK '000) | 495 | 456 | 1,910 | 2,050 |
| Operating profit/loss per employee 1) (DKK '000) | 125 | 62 | 318 | 341 |
| SHARES | ||||
| Average number of shares in circulation ('000) | 8,630 | 8,779 | 8,735 | 8,809 |
| Average number of diluted shares ('000) | 8,789 | 8,813 | 8,916 | 9,014 |
| SHARE DATA. DKK PER SHARE AT DKK 5 | ||||
| Profit/loss for the period (EPS), per share 1) | 3.0 | 0.8 | 6.7 | 5.6 |
| Profit/loss for the period, diluted (DEPS), per share 1) | 3.0 | 0.8 | 6.5 | 5.5 |
| Dividends, per share (DKK) | - | - | 2.0 | 2.0 |
| Equity value, per share | 32.9 | 31.6 | 32.9 | 31.6 |
| Listed price, per share | 180.0 | 113.0 | 180.0 | 113.0 |
Note: The Group's financial year runs from 1 October to 30 September.
Definitions of the key ratios used are stated in the annual report for 2016/17 in the accounting policies.
1) Not annualized.
RTX interim report for the fourth quarter of 2016/17
Management report
Comments on developments for the fourth quarter of the 2016/17 financial year
WITH REFERENCE TO THE GROUP'S FINANCIAL FIGURES FOR THE FOURTH QUARTER OF 2016/17
In Q4 of 2016/17, the Group posted a growth in revenue of 17.6% to DKK 113.8 million compared to DKK 96.7 million in the same period last year. Corrected for exchange rate effects the growth was 22.5%.
In Q4, Business Communications posted a growth in revenue of 18.1% or DKK 11.7 million to DKK 75.9 million compared to DKK 64.3 million in the same period last year. Corrected for exchange rate effects the growth was 24.3%. The continued growth in Business Communications was primarily driven by existing customers in the VoIP segment. The development on business headsets continued at the same level in Q4. More existing customers, and potential new customers, in the Enterprise segment have proved interested in the new business headset series, and we expect that the first customized business headsets are introduced in the market early 2018.
In Q4, Design Services posted a growth in revenue of 16.7% or DKK 5.4 million to DKK 37.9 million compared to DKK 32.5 million in the same period last year. Corrected for exchange rate effects the growth was 19.1%. As in previous quarters, the business unit saw an increased demand for customized development projects and a higher level of activity especially within customized modules. In the quarter, the interest continued to increase for the gaming headset platform, where more potential customers have shown positive interest.
The increased revenue resulted in an increase of 23.6% in the gross profit amounting to DKK 12.3 million in Q4 compared to the same period last year. Due to the revenue mix the gross profit increased to 56.4% compared to 53.7% in Q4 of 2015/16.
Capacity costs increased during the period as a consequence to an increasing level of activity in both business units and they amounted to DKK 40.4 million in Q4 compared to DKK 39.0 million in the same period last year. The higher level of activity is driven by a combination of a higher demand for customer financed development projects and a considerable rise in the investments in own financed development projects, which has resulted in 18 more employees in Q4 2016/17 compared to Q4 of 2015/16.
As an effect of the rise in investments in own financed development projects we capitalized DKK 6.3 million in Q4 of 2016/17.
As planned, depreciations rose to DKK 1.4 million in Q4 of 2016/17 from DKK 0.8 million in Q4 of 2015/16 primarily due to higher investments in operation equipment in previous quarters.
Operating profit (EBIT) increased by DKK 15.6 million to DKK 28.7 million compared to DKK 13.1 million in the same period last year. The improved EBIT is mainly due to increased revenue and compared to the same period last year and a higher gross profit.
Net financial income resulted in a cost of DKK 0.3 million compared to the same period last year, when net financial income amounted to DKK 1.0 million primarily due to exchange rate fluctuations on receivables.
Profit before tax for Q4 of 2016/17 amounted to DKK 28.4 million compared to DKK 14.1 million in the same period last year.
Profit after tax amounted to DKK 26.1 million in Q4 of 2016/17 compared to DKK 7.4 million for the same period last year.
As currently announced during Q4 the company used the authorization from the Annual General Meeting to undertake further share buybacks. This had a negative impact on equity. The equity ratio amounted to 80.2% at the end of the fourth quarter compared to 78.9% last year. The Group's balance sheet total was DKK 353.0 million at the end of the fourth quarter compared to DKK 355.4 million in the same period last year corresponding to a decrease of DKK 2.4 million.
The Group realized a positive cash flow from operations in Q4 of 2016/17 of DKK 23.7 million compared to DKK 12.5 million in Q4 of 2015/16. The rise is primarily due to increased receivables as a consequence to the higher revenue in the period.
Shareholder focused initiatives adopted by the Annual General Meeting affected the Group's total cash flow negatively by DKK 11.0 million in the fourth quarter of 2016/17 compared to a negative effect in the fourth quarter of 2015/16 was DKK 7.4 million.
RTX interim report for the fourth quarter of 2016/17
The Group's total cash funds and current securities less bank dept totalled DKK 151.3 million at the end of Q4, i.e. a decrease of DKK 51.2 million compared to the same period last year. The fall is primarily due to the sale of the premises and an increase in the shareholder focused initiatives.
OUTLOOK FOR THE 2017/18 FINANCIAL YEAR
The company expects revenue to be in the range of DKK 460-490 million, EBITDA in the range of DKK 72-87 million and EBIT in the range of DKK 58-73 million.
RISKS AND UNCERTAINTIES FOR THE 2017/18 FINANCIAL YEAR
STATEMENTS ON FUTURE CONDITIONS
The above statements on the Group's future conditions, including in particular, future revenue and operating profit (EBIT), reflect Management's current outlook and carry some uncertainty. These statements can be affected by a number of risks and uncertainties, which mean that actual developments can be different from the indicated outlook. These risks and uncertainties include - but are not limited to - general business and economic conditions, dependence on partners, the time of delivery of components, integration of acquired companies and foreign exchange and interest rate fluctuations.
FINANCIAL CALENDAR
Expected publication of financial information for the financial year 2017/18:
25 JANUARY 2018
Annual General Meeting and interim report for Q1 2017/18
1 MAY 2018
Interim report for Q2 2017/18
28 AUGUST 2018
Interim report for Q3 2017/18
27 NOVEMBER 2018
Annual report for 2017/18
RTX interim report for the fourth quarter of 2016/17
Statement by the Management on the interim report
The Board of Directors and the Executive Board have today considered and adopted the interim report of RTX A/S for the fourth quarter of the financial year 2016/17 (covering the period 1 July to 30 September 2017).
The interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU and further Danish disclosure requirements for the interim reporting for listed companies. The interim report has not been audited or reviewed by the Company's auditor.
We consider the applied accounting policies appropriate for the interim report to provide, in our opinion, a true and fair view of the Group's assets, liabilities and financial position as at 30 September 2017 and of its financial performance and cash flow for the fourth quarter of 2016/17.
We consider Management's review to give a true and fair view of the Group's activities and finances, profit/loss for the period and the Group's financial position as a whole, as well as a true and fair description of the most material risks and uncertainties facing the Group.
Nørresundby, 28 November 2017
Executive Board
Peter Røpke
CEO
Kristian Frederiksen
CFO
Board of Directors
Peter Thostrup
Chairman
Jesper Mailind
Deputy Chairman
Christian Engsted
Lars Christian Tofft
Jens Hansen
Rune Strøm Jensen
Employee representative
Flemming Vendbjerg Andersen
Employee representative
Kurt Heick Rasmussen
Employee representative
RTX interim report for the fourth quarter of 2016/17
Income Statement
| Amounts in DKK '000 | Note | Q4 2016/17 | Q4 2015/16 | 01.10.16-30.09.17 | 01.10.15-30.09.16 |
|---|---|---|---|---|---|
| Revenue | 3 | 113,818 | 96,745 | 433,503 | 395,555 |
| Value of work transferred to assets | 4 | 6,287 | 985 | 17,427 | 985 |
| Costs of sales etc. | -49,619 | -44,797 | -195,046 | -166,155 | |
| Other external expenses | -10,679 | -11,352 | -47,382 | -43,027 | |
| Staff costs | -29,736 | -27,637 | -131,300 | -117,376 | |
| Depreciation, amortization and impairment | 4 | -1,350 | -849 | -4,921 | -4,217 |
| Operating profit/loss (EBIT) | 28,722 | 13,095 | 72,281 | 65,765 | |
| Financial income | 5 | 749 | 1,099 | 1,492 | 3,308 |
| Financial expenses | 5 | -1,083 | -90 | -3,393 | -593 |
| Profit/loss before tax | 28,388 | 14,104 | 70,380 | 68,480 | |
| Tax of profit/loss for the period | -2,314 | -6,715 | -12,178 | -18,980 | |
| Profit/loss for the period after tax | 26,074 | 7,389 | 58,202 | 49,500 | |
| Profit/loss per share (EPS) | |||||
| Profit/loss for the period (DKK) | 3.0 | 0.8 | 6.7 | 5.6 | |
| Profit/loss for the period, diluted (DKK) | 3.0 | 0.8 | 6.5 | 5.5 |
Statement of Comprehensive Income
| Amounts in DKK '000 | Note | Q4 2016/17 | Q4 2015/16 | 01.10.16-30.09.17 | 01.10.15-30.09.16 |
|---|---|---|---|---|---|
| Profit/loss for the period | 26,074 | 7,389 | 58,202 | 49,500 | |
| Items that can be reclassified subsequently to the income statement | |||||
| Exchange rate adjustments of foreign subsidiaries | -941 | -55 | -1,663 | 59 | |
| Fair value adjustment of short-term current asset investments | 40 | 105 | 134 | 422 | |
| Other comprehensive income, net of tax | -901 | 50 | -1,529 | 481 | |
| Comprehensive income for the period | 25,173 | 7,439 | 56,673 | 49,981 |
RTX interim report for the fourth quarter of 2016/17
Balance Sheet
| Amounts in DKK '000 | 30.09.17 | 30.09.16 |
|---|---|---|
| ASSETS | ||
| Own completed development projects | 671 | 1,567 |
| Own ongoing development projects | 18,412 | 985 |
| Goodwill | 7,797 | 7,797 |
| Intangible assets | 26,880 | 10,349 |
| Plant and machinery | 7,720 | 4,736 |
| Other fixtures, tools and equipment | 3,086 | 1,843 |
| Leasehold improvements | 1,438 | 855 |
| Tangible assets | 12,244 | 7,434 |
| Deposits | 7,696 | 7,723 |
| Deferred tax assets | 21,221 | 22,097 |
| Other long-term assets | 28,917 | 29,820 |
| Total long-term assets | 68,041 | 47,603 |
| Inventories | 24,147 | 20,632 |
| Trade receivables | 84,006 | 63,709 |
| Contract development projects in progress | 16,472 | 14,074 |
| Income taxes | 3,403 | - |
| Other receivables | 3,100 | 2,874 |
| Accruals | 2,533 | 4,056 |
| Receivables | 109,514 | 84,713 |
| Short-term current asset investments | 18,392 | 18,258 |
| Short-term current asset investments for sale (trading portfolio) | 100,865 | 89,401 |
| Total short-term current asset investments | 119,257 | 107,659 |
| Cash at bank and in hand | 32,045 | 94,809 |
| Total short-term assets | 284,963 | 307,813 |
| Total assets | 353,004 | 355,416 |
| Amounts in DKK '000 | 30.09.17 | 30.09.16 |
| --- | --- | --- |
| EQUITY AND LIABILITIES | ||
| Share capital | 45,714 | 47,164 |
| Share premium account | 270,723 | 288,598 |
| Retained earnings | -33,462 | -55,199 |
| Equity | 282,975 | 280,563 |
| Provisions | 258 | 261 |
| Long-term liabilities | 258 | 261 |
| Prepayments received from customers | 581 | 801 |
| Trade payables | 38,607 | 37,157 |
| Contract development projects in progress | 2,543 | 4,710 |
| Income taxes | 1,572 | 4,354 |
| Provisions | 1,282 | 3,476 |
| Other payables | 25,186 | 24,094 |
| Short-term liabilities | 69,771 | 74,592 |
| Total liabilities | 70,029 | 74,853 |
| Total equity and liabilities | 353,004 | 355,416 |
RTX interim report for the fourth quarter of 2016/17
Equity Statement
| Amounts in DKK '000 | Share capital | Share premium | Retained earnings | Total |
|---|---|---|---|---|
| Equity at 30 September 2015 | 45,687 | 296,090 | -75,871 | 265,906 |
| Profit/loss for the period | - | - | 49,500 | 49,500 |
| Exchange rate adjustments of foreign subsidiaries | - | - | 59 | 59 |
| Fair value adjustment of short-term current asset investments | - | - | 422 | 422 |
| Other comprehensive income | - | - | 481 | 481 |
| Comprehensive income for the period | - | - | 49,981 | 49,981 |
| Share-based remuneration | - | - | 3,757 | 3,757 |
| Exercise of warrants | 2,582 | 3,289 | - | 5,871 |
| Annulment of treasury shares | -1,105 | -10,781 | 11,876 | -10 |
| Paid dividend for 2014/15 | - | - | -17,207 | -17,207 |
| Acquisition of treasury shares | - | - | -27,735 | -27,735 |
| Other transactions | 1,477 | -7,492 | -29,309 | -35,324 |
| Equity at 30 September 2016 | 47,164 | 288,598 | -55,199 | 280,563 |
| Amounts in DKK '000 | Share capital | Share premium | Retained earnings | Total |
| --- | --- | --- | --- | --- |
| Equity at 30 September 2016 | 47,164 | 288,598 | -55,199 | 280,563 |
| Profit/loss for the period | - | - | 58,202 | 58,202 |
| Exchange rate adjustments of foreign subsidiaries | - | - | -1,663 | -1,663 |
| Fair value adjustment of short-term current asset investments | - | - | 134 | 134 |
| Other comprehensive income | - | - | -1,529 | -1,529 |
| Comprehensive income for the period | - | - | 56,673 | 56,673 |
| Share-based remuneration | - | - | 3,891 | 3,891 |
| Deferred tax reg. related to share-based remuneration | - | - | 3,422 | 3,422 |
| Deferred tax reg. related to share-based remuneration last year | - | - | 5,974 | 5,974 |
| Current tax reg. related to share-based remuneration last year | - | - | 3,440 | 3,440 |
| Annulment of treasury shares | -1,450 | -17,875 | 19,313 | -12 |
| Paid dividend for 2015/16 | - | - | -17,557 | -17,557 |
| Acquisition of treasury shares | - | - | -53,419 | -53,419 |
| Other transactions | -1,450 | -17,875 | -34,936 | -54,261 |
| Equity at 30 September 2017 | 45,714 | 270,723 | -33,462 | 282,975 |
Share capital of DKK 45,714,190 consists of 9,142,838 shares at DKK 5. The Group holds 549,907 treasury shares at 30 September 2017 (555,341 shares at 30 September 2016). There are no shares carrying special rights.
RTX interim report for the fourth quarter of 2016/17
Cash Flow Statement
| Amounts in DKK '000 | Q4 2016/17 | Q4 2015/16 | 01.10.16-30.09.17 | 01.10.15-30.09.16 |
|---|---|---|---|---|
| Operating profit/loss (EBIT) | 28,722 | 13,095 | 72,281 | 65,765 |
| Reversal of items with no effect on cash flow | ||||
| Depreciation, amortization and impairment | 1,350 | 849 | 4,921 | 4,217 |
| Other items with no effect on cash flow | 2,995 | -3,384 | -731 | -3,617 |
| Change in working capital | ||||
| Change in inventories | -7,809 | -451 | -5,873 | 2,492 |
| Change in receivables | -1,653 | -7,810 | -19,723 | -27,281 |
| Change in trade payables etc. | 338 | 10,377 | 155 | 13,176 |
| Cash flow from operating activities | 23,943 | 12,676 | 51,030 | 54,752 |
| Financial income received | - | 1 | 761 | 853 |
| Financial expenses paid | -100 | -90 | -434 | -421 |
| Income taxes paid | -141 | -52 | -4,700 | -1,814 |
| Cash flow from operations | 23,702 | 12,535 | 46,657 | 53,370 |
| Investments in own development projects | -6,287 | -985 | -17,427 | -985 |
| Acquisition of property, plant and equipment | -1,403 | -3,616 | -8,868 | -5,765 |
| Deposits on leaseholds | -1 | -13 | -11 | -7,161 |
| Refunded deposits regarding leaseholds | - | - | - | -1,531 |
| Income from sale of buildings | - | - | - | 71,308 |
| Acquisition and sale of short-term securities | 9,967 | -1,200 | -10,733 | -31,427 |
| Cash flow from investments | 2,276 | -5,814 | -37,039 | 24,439 |
| Amounts in DKK '000 | Q4 2016/17 | Q4 2015/16 | 01.10.16-30.09.17 | 01.10.15-30.09.16 |
| --- | --- | --- | --- | --- |
| Repayment of long-term liabilities | - | - | - | -10,863 |
| Income from capital increase | - | 668 | - | 5,871 |
| Acquisition of treasury shares | -10,989 | -8,047 | -53,419 | -27,735 |
| Paid dividend | - | - | -18,864 | -18,274 |
| Dividend for treasury shares | - | - | 1,307 | 1,067 |
| Cash flow from financing activities | -10,989 | -7,379 | -70,976 | -49,934 |
| Increase/decrease in cash and cash equivalents | 14,989 | -658 | -61,358 | 27,875 |
| Exchange rate correction on cash items | -445 | 2,217 | -1,406 | 3,844 |
| Cash and cash equivalents at the beginning of the period, net | 17,501 | 93,250 | 94,809 | 63,090 |
| Cash and cash equivalents at the end of the period, net | 32,045 | 94,809 | 32,045 | 94,809 |
| Cash and cash equivalents at the end of the period, net, is composed as follows: | ||||
| Cash at bank and in hand | 32,045 | 94,809 | 32,045 | 94,809 |
| Cash and cash equivalents at the end of the period, net | 32,045 | 94,809 | 32,045 | 94,809 |
RTX interim report for the fourth quarter of 2016/17
Notes
1 ACCOUNTING POLICIES
The interim report is presented in accordance with IAS 34, Interim Financial Reporting, and further Danish disclosure requirements for interim reporting for listed companies. An interim report has not been prepared for the Parent.
The accounting policies applied in this interim report are consistent with those applied in the Company's annual report for 2016/17 which was presented in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports of listed companies. We refer to the annual report for 2016/17 for a more detailed description of the accounting policies.
The applied accounting policy is unchanged compared to the annual report for 2015/16. New or amended standards and interpretations becoming effective for the financial year 2016/17 have no material impact on the interim report.
2 ESTIMATES AND ASSUMPTIONS
The preparation of interim reports requires management to make financial estimates and assumptions that affect the application of accounting policy and recognised assets, obligations, income and expenses. Actual results might be different from these estimates.
The material estimates that management make when applying the accounting principles of the Group and the material uncertainty connected with these estimates and assumptions are unchanged in the preparation of the interim report compared to the preparation of the annual report as per 30 September 2017.
3 SEGMENT INFORMATION
| Amounts in DKK '000 | Q4 2016/17 | Q4 2015/16 | 01.10.16-30.09.17 | 01.10.15-30.09.16 |
|---|---|---|---|---|
| Revenue, business segments | ||||
| Design Services | 37,904 | 32,488 | 143,962 | 126,279 |
| Business Communications | 75,914 | 64,257 | 289,541 | 268,352 |
| Non-allocated items | - | - | - | 924 |
| Total | 113,818 | 96,745 | 433,503 | 395,555 |
| EBIT | ||||
| Design Services | 10,404 | 2,957 | 17,987 | 13,535 |
| Business Communications | 17,972 | 9,516 | 57,485 | 54,844 |
| Non-allocated items | 346 | 622 | -3,191 | -2,614 |
| Total | 28,722 | 13,095 | 72,281 | 65,765 |
| Segment assets | ||||
| Design Services | 61,089 | 38,633 | 61,089 | 38,633 |
| Business Communications | 101,064 | 76,150 | 101,064 | 76,150 |
| Non-allocated items | 190,851 | 240,633 | 190,851 | 240,633 |
| Total | 353,004 | 355,416 | 353,004 | 355,416 |
| Revenue, geographical segments | ||||
| Denmark | 3,055 | 409 | 7,225 | 4,458 |
| Other Europe | 71,077 | 69,729 | 296,708 | 279,765 |
| Asia and Australia | 23,446 | 9,610 | 64,228 | 37,736 |
| North and South America | 14,541 | 15,409 | 60,043 | 68,093 |
| Africa | 1,699 | 1,588 | 5,299 | 5,503 |
| Total | 113,818 | 96,745 | 433,503 | 395,555 |
Revenue is broken down by geographical area according to customer location. The Group balance sheet illustrates that the Group's assets are mainly owned by the parent company in Denmark. The geographical split of the assets is thus mainly in Denmark.
RTX interim report for the fourth quarter of 2016/17
Notes
4 DEVELOPMENT COSTS
| Amounts in DKK '000 | Q4 2016/17 | Q4 2015/16 | 01.10.16-30.09.17 | 01.10.15-30.09.16 |
|---|---|---|---|---|
| Development costs before capitalization | 9,571 | 7,200 | 36,877 | 25,859 |
| Capitalized | -6,287 | -985 | -17,427 | -985 |
| Total amortization and impairment losses on development projects | 224 | 224 | 896 | 2,114 |
| Development costs recognized in the profit/loss account | 3,508 | 6,439 | 20,346 | 26,988 |
5 FINANCIAL ITEMS
| Amounts in DKK '000 | Q4 2016/17 | Q4 2015/16 | 01.10.16-30.09.17 | 01.10.15-30.09.16 |
|---|---|---|---|---|
| Interest income from bonds available for sale | - | 1 | - | 853 |
| Exchange rate gains, net | - | 84 | - | - |
| Exchange rate gains on bonds | 749 | 1,014 | 731 | 2,455 |
| Other financial income | - | - | 761 | - |
| Financial income | 749 | 1,099 | 1,492 | 3,308 |
| Interest costs | 1 | 2 | 7 | 45 |
| Exchange rate losses, net | 984 | - | 2,959 | 172 |
| Other financial costs | 98 | 88 | 427 | 376 |
| Financial expenses | 1,083 | 90 | 3,393 | 593 |
RTX interim report for the fourth quarter of 2016/17 | 12