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RTX Interim / Quarterly Report 2016
3413_rns_2017-05-02_0f9e08ad-4f6e-4f25-bcdb-2ae173897c87.pdf
Interim / Quarterly Report
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ANNOUNCEMENT TO NASDAQ COPENHAGEN A/S AND THE MEDIA
N@RRESUNDBY, 2 MAY 2017 ANNOUNCEMENT NO. 28/2017
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
NO. OF PAGES: 14
1/14
INTERIM REPORT
FOR Q2 2016/17
(THE PERIOD 01.01.2017 – 31.03.2017)
EXPECTATIONS MAINTAINED - CHALLENGES IN SUPPLY CHAIN
AFFECTS REVENUE AND EBIT NEGATIVELY IN Q2
The Supervisory Board of RTX A/S has today considered and adopted the Group's interim report for the second quarter of the 2016/17 financial year (covering the period 01.01.2017 – 31.03.2017).
SUMMARY FOR THE SECOND QUARTER OF 2016/17 FOR THE RTX GROUP
-
Net revenue amounted to DKK 84.1 million for Q2 of the 2016/17 financial year, which is DKK 18.5 million less than last year's net revenue of DKK 102.6 million. The decline was 18.0%. Corrected for the USD exchange rate effect, net revenue in Q2 2016/17 decreased by 20.1% compared to Q2 2015/16. Revenue apportioned across RTX's business units as follows:
-
Business Communications decreased by DKK 21.1 million corresponding to a decline of 29.8%. After exchange effect the decline is 31.8%. The decreased revenue is due to changes in the supply chain, which have postponed revenue from Q2 to Q3 2016/17.
- Design Services rose by DKK 2.5 million corresponding to an increase of 8.0%. After exchange effect the increase is 6.4%.
- The Group's gross profit was DKK 46.8 million in 2016/17, which is a decline of DKK 14.9 million compared to DKK 61.6 million in 2015/16, and as a consequence of the revenue mix, the gross margin decreased to 55.6% from 60.1% in 2015/16.
- In the quarter, capacity costs rose by DKK 7.2 million. This is primarily due to the significant own financed investments in development projects (headset platforms and a platform for gaming headset as mentioned in our annual report 2015/16). The high level of activity in both operations and own financed development projects has made it necessary to increase staff by 41 more employees compared to last year.
REVENUE PER QUARTER
(MILLION DKK)
EBIT PER QUARTER
(MILLION DKK)
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
WIRELESS WISDOM™
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
2/14
- With reference to company announcement no. 18/2017 RTX has in Q2 launched a new product range complementing the existing communication solutions. The new product range consists of variants of headsets for office environments. The products were presented at RTX's stand at the CeBIT Fair in Hannover and has been well received by potential customers. In the quarter, RTX has also achieved a significant agreement with one of the leading brands within gaming headset, where RTX will deliver the wireless technology. Management expects increased revenue from this agreement in the coming financial year. These investments mean that RTX has capitalised DKK 4.8 million in the second quarter of 2016/17.
- Operating profit (EBIT) amounted to DKK 4.7 million compared to DKK 21.8 million last year.
- The Group's cash flow from operating activities in Q2 amounted to DKK 26.4 million compared to DKK 17.2 million in the same period last year.
SUMMARY OF THE FIRST SIX MONTHS OF 2016/17 FOR THE RTX GROUP
- In the first six months of 2016/17 RTX realised net revenue of DKK 195.4 million, which is in line with last year's net revenue. Corrected for exchange effects and ceased income from lease the decline in revenue corresponds to 0.7%. Revenue apportioned across RTX's business units as follows:
- Business Communications decreased by DKK 4.8 million corresponding to a decline of 3.6%. After exchange effect the decline is 5.4%.
- Design Services rose by DKK 6.6 million corresponding to an increase of 10.7%. After exchange effect the increase is 9.3%.
- The Group's gross profit was DKK 106.9 million compared to DKK 115.8 million in 2015/16, and as a consequence of the revenue mix, the gross margin decreased to 54.7% from 59.6% in 2015/16.
- Compared to the first six months in 2015/16, capacity costs rose by DKK 12.1 million. This is primarily due to the significant own financed investments in development projects (headset platforms and a platform for gaming headset as mentioned in our annual report 2015/16). The high level of activity in both operations and own financed development projects has made it necessary to increase staff by 41 more employees compared to last year. Furthermore, capacity costs in Q1 2016/17 included external lease compared to last year.
- Operating profit (EBIT) amounted to DKK 19.7 million compared to DKK 33.9 million in 2015/16.
- The Group's cash flow from operating activities in the first six months amounted to DKK 13.8 million compared to DKK 19.9 million in the same period last year.
- Despite the unsatisfying development in Q2 Management maintains the announced expectations for 2016/17. RTX expects revenue in the range of DKK 420-435 million, EBIT in the range of DKK 68-75 million and EBITDA in the range of DKK 73-80 million.
RTX A/S
Peter Thostrup Peter Røpke
Chairman President & CEO
ENQUIRIES AND FURTHER INFORMATION:
CEO
Peter Røpke, tel +45 96 32 23 00
APPENDICES
Interim report for Q2 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 Thursday, 4 May 2017 at 1 pm, 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 second quarter of 2016/17.
To register for the meeting, please email [email protected].
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
3/14
GROUP FINANCIAL HIGHLIGHTS
AND KEY RATIOS (NON-AUDITED)
| Amounts in DKK million | Q2 2016/17 | Q2 2015/16 | H1 2016/17 | H1 2015/16 | FY 2015/16 |
|---|---|---|---|---|---|
| INCOME STATEMENT ITEMS | |||||
| Revenue | 84.1 | 102.6 | 195.4 | 194.5 | 395.6 |
| Gross profit | 46.8 | 61.6 | 106.9 | 115.8 | 229.4 |
| Operating profit/loss (EBIT) | 4.7 | 21.8 | 19.7 | 33.9 | 65.8 |
| EBITDA | 5.9 | 23.1 | 22.0 | 36.5 | 70.0 |
| EBITDA % | 7.0% | 22.6% | 11.3% | 18.8% | 17.7% |
| Net financials | -0.2 | -0.4 | 0.0 | 0.1 | 2.7 |
| Profit/loss before tax (EBT) | 4.5 | 21.4 | 19.8 | 34.0 | 68.5 |
| Profit/loss for the period | 3.2 | 16.6 | 15.0 | 26.3 | 49.5 |
| BALANCE SHEET ITEMS | |||||
| Cash and current asset investments | 159.0 | 183.3 | 159.0 | 183.3 | 202.5 |
| Total assets | 306.3 | 320.3 | 306.3 | 320.3 | 355.4 |
| Equity | 257.6 | 269.5 | 257.6 | 269.5 | 280.6 |
| Liabilities | 48.7 | 50.8 | 48.7 | 50.8 | 74.9 |
| OTHER KEY FIGURES | |||||
| Development costs (own) before capitalisation | 11.0 | 5.4 | 18.3 | 11.8 | 25.9 |
| Capitalised development costs | 4.8 | - | 6.5 | - | 1.0 |
| Depreciation, amortization and impairment | 1.2 | 1.4 | 2.2 | 2.7 | 4.2 |
| Cash flow from operations | 26.4 | 17.2 | 13.8 | 19.9 | 57.2 |
| Cash flow from investments | -8.0 | 32.0 | -14.4 | 30.5 | 24.4 |
| Investments in property, plant and equipment | 2.6 | 0.6 | 7.1 | 1.9 | 5.8 |
| Increase/decrease in cash and cash equivalents | -15.4 | 21.7 | -43.8 | 15.6 | 31.7 |
| KEY RATIOS | |||||
| Growth in net turnover (percentage) | -18.0 | 11.7 | 0.5 | 15.3 | 13.2 |
| Profit margin (percentage) | 5.6 | 21.2 | 10.1 | 17.4 | 16.6 |
| Return on invested capital (percentage) | 3.5 | 14.3 | 16.8 | 22.3 | 45.8 |
| Return on equity (percentage) | 1.2 | 6.1 | 5.6 | 9.8 | 18.1 |
| Equity ratio (percentage) | 84.1 | 84.1 | 84.1 | 84.1 | 78.9 |
| EMPLOYMENT | |||||
| Average number of full-time employees | 228 | 187 | 226 | 185 | 193 |
| Revenue per employee 1) (DKK '000) | 369 | 549 | 865 | 1,051 | 2,050 |
| Operating profit/loss per employee 1) (DKK '000) | 21 | 117 | 87 | 183 | 341 |
| SHARES | |||||
| Average number of shares in circulation ('000) | 8.787 | 8,820 | 8.808 | 8,731 | 8,805 |
| Average number of diluted shares ('000) | 8.978 | 9,052 | 8.994 | 9,075 | 9,014 |
| SHARE DATA. DKK PER SHARE AT DKK 5 | |||||
| Profit/loss for the period (EPS), per share 1) | 0.4 | 1.9 | 1.7 | 3.0 | 5.6 |
| Profit/loss for the period, diluted (DEPS), per share 1) | 0.4 | 1.8 | 1.7 | 2.9 | 5.5 |
| Dividends, per share (DKK) | - | - | - | - | 2.0 |
| Equity value, per share | 29.4 | 30.3 | 29.4 | 30.3 | 31.6 |
| Listed price, per share | 190.5 | 81.5 | 190.5 | 81.5 | 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 2015/16 in the accounting policies.
1) Not annualized.
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
4/14
MANAGEMENT REPORT
COMMENTS ON DEVELOPMENTS FOR THE SECOND QUARTER OF THE 2016/17 FINANCIAL YEAR
WITH REFERENCE TO THE GROUP'S FINANCIAL FIGURES FOR THE SECOND QUARTER OF 2016/17
The Group posted revenue of DKK 84.1 million for the second quarter of the 2016/17 financial year compared to DKK 102.6 million for the same period last year, which corresponds to a decline of 18.0%. Adjusted for exchange effects the decline was 20.1%.
In Q2, Business Communications posted revenue of DKK 49.7 million compared to DKK 70.8 million in the same period last year, a decline of DKK 21.1 million corresponding to 29.8% compared to last year. Adjusted for exchange rate effects the decline was 31.8%. During the quarter, the business unit has transferred a considerable part of the supply chain to new suppliers. The effects are only expected to temporarily influence revenue and profit in Q2, and the business unit expects to catch up on the postponed revenue in Q3 2016/17. With reference to company announcement no. 18/2017, the business unit has in Q2 launched a new product range complementing the existing communication solutions. The products are variants of headsets for use in office environments. The products were launched at RTX's stand at the CeBIT fair in Hannover. As for other products from RTX, these products will be customised, distributed and sold in the customers' brands. The first launches are expected at the end of the financial year 2016/17.
Design Services posted revenue of DKK 34.4 million for the second quarter compared to DKK 31.9 million last year, an increase of DKK 2.5 million corresponding to 8.0% compared to last year. Corrected for exchange rate effects, the increase amounted to 6.4%. The increase in the quarter mainly comes both from the demand for RTX's customer-financed development projects and modules. Furthermore, a major agreement has been signed in the quarter with one of the leading brands within gaming headsets.
The total revenue decline resulted in a decrease in gross profit of DKK 14.9 million for the second quarter 2016/17 compared to last year, and as a consequence of the revenue mix, the Group's gross margin declined to 55.6% from 60.1% for the second quarter of 2015/16.
Capacity costs (i.e. other external costs and staff costs) amounted to DKK 45.7 million, which is DKK 7.2 million higher than last year. The main reasons for the increase in the capacity costs are an increased activity level and a growing order book, therefore RTX has increased staff to 228 employees in the second quarter of 2016/17 compared to 187 in the second quarter of 2015/16. Furthermore, RTX has made significant investments in own development projects.
Development costs totalled DKK 11.0 million for the second quarter compared to last year's DKK 5.4 million.
As planned, depreciation fell to DKK 1.2 million in Q2 2016/17 from DKK 1.4 million in Q2 2015/16, primarily as a consequence of the sold premises.
Operating profit (EBIT) for the second quarter of 2016/17 was DKK 4.7 million against DKK 21.8 million for the same period last year.
Net financial income resulted in a cost of DKK 0.2 million compared to the same period last year when net financial income was a cost of DKK 0.4 million. The changes are the result of USD exchange rate fluctuations.
Profit before tax for the second quarter of 2016/17 amounted to DKK 4.5 million compared to a profit of DKK 21.4 million for the same period last year.
Profit after tax for the second quarter of 2016/17 amounted to DKK 3.2 million compared to DKK 16.6 million for the same period last year.
As currently announced in Q2 the company used the authorisation from the Annual General Meeting to undertake further share buybacks during the quarter, which had a negative impact on equity. The equity ratio amounted to 84.1% at the end of the second quarter compared to 84.1% last year. The Group's balance sheet total was DKK 306.3 million at the end of the second quarter. This is a decline of DKK 14.0 million compared to the same time last year.
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
8/14
The Group realised a positive cash flow from operation activities in Q2 2016/17 of DKK 26.4 million compared to DKK 17.2 million in Q2 2015/16. Shareholder focused initiatives adopted by the Annual General Meeting affected the Group's total cash flow by DKK 33.7 million in Q2 2016/17 compared to DKK 20.4 million in 2015/16.
The Group's total cash funds and current securities less bank debt totalled DKK 159.0 million at the end of the quarter, which is a decline of DKK 24.3 million compared to the same period last year.
OUTLOOK FOR THE 2016/17 FINANCIAL YEAR
On 29 November 2016 Management announced the expectations for the financial year 2016/17 (cf. announcement no. 74/2016). The company expects revenue to be in the range of DKK 420-435 million and EBIT to be between DKK 68-75 million. EBITDA is expected to be between DKK 73-80 million for the 2016/17 financial year.
RISKS AND UNCERTAINTIES FOR THE 2016/17 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 the 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 uncertainty factors 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 2016/17:
29 August 2017
Interim report for Q3 2016/17
28 November 2017
Annual report for 2016/17
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
6/14
STATEMENT BY THE MANAGEMENT ON THE INTERIM REPORT
The Supervisory Board and the Executive Board have today considered and adopted the interim report of RTX A/S for the second quarter of the financial year 2016/17 (covering the period 1 January to 31 March 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 31 March 2017 and of its financial performance and cash flow for the second 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, 2 May 2017
EXECUTIVE BOARD
Peter Røpke
CEO
SUPERVISORY BOARD
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 SECOND QUARTER OF 2016/17
7/14
GROUP INCOME STATEMENT
(NON-AUDITED)
| Amounts in DKK '000 | Note | Q2 2016/17 | Q2 2015/16 | H1 2016/17 | H1 2015/16 | FY 2015/16 |
|---|---|---|---|---|---|---|
| Revenue | 3 | 84,137 | 102,640 | 195,399 | 194,469 | 395,555 |
| Value of work transferred to assets | 4 | 4,799 | - | 6,543 | - | 985 |
| Costs of sales etc. | -37,373 | -40,995 | -88,546 | -78,656 | -166,155 | |
| Other external expenses | -12,165 | -10,612 | -23,533 | -20,790 | -43,027 | |
| Staff costs | -33,514 | -27,886 | -67,871 | -58,483 | -117,376 | |
| Depreciation, amortization and impairment | 4 | -1,194 | -1,360 | -2,244 | -2,684 | -4,217 |
| Operating profit/loss (EBIT) | 4,690 | 21,787 | 19,748 | 33,856 | 65,765 | |
| Financial income | 5 | 614 | 910 | 729 | 1,253 | 3,308 |
| Financial expenses | 5 | -769 | -1,334 | -691 | -1,112 | -593 |
| Profit/loss before tax | 4,535 | 21,363 | 19,786 | 33,997 | 68,480 | |
| Tax of profit/loss for the period | -1,328 | -4,811 | -4,751 | -7,662 | -18,980 | |
| Profit/loss for the period after tax | 3,207 | 16,552 | 15,035 | 26,335 | 49,500 | |
| Profit/loss per share (EPS) | ||||||
| Profit/loss for the period (DKK) | 0.4 | 1.9 | 1.7 | 3.0 | 5.6 | |
| Profit/loss for the period, diluted (DKK) | 0.4 | 1.8 | 1.7 | 2.9 | 5.5 |
STATEMENT OF COMPREHENSIVE INCOME
(NON-AUDITED)
| Amounts in DKK '000 | Q2 2016/17 | Q2 2015/16 | H1 2016/17 | H1 2015/16 | FY 2015/16 |
|---|---|---|---|---|---|
| Profit/loss for the period | 3,207 | 16,552 | 15,035 | 26,335 | 49,500 |
| Items that can be reclassified subsequently to the income statement | |||||
| Exchange rate adjustments of foreign subsidiaries | -433 | -1,307 | 1,117 | -522 | 59 |
| Fair value adjustment of short-term current asset investments | 23 | 17 | 46 | -241 | 422 |
| Other comprehensive income, net of tax | -410 | -1,290 | 1,163 | -763 | 481 |
| Comprehensive income for the period | 2,797 | 15,262 | 16,198 | 25,572 | 49,981 |
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
8/14
GROUP BALANCE SHEET
(NON-AUDITED)
| Amounts in DKK '000 | 31 March 2017 | 31 March 2016 | 30 Sep. 2016 |
|---|---|---|---|
| Assets | |||
| Own completed development projects | 1,119 | 2,015 | 1,567 |
| Own ongoing development projects | 7,528 | - | 985 |
| Goodwill | 7,797 | 7,797 | 7,797 |
| Intangible assets | 16,444 | 9,812 | 10,349 |
| Plant and machinery | 8,232 | 2,700 | 4,736 |
| Other fixtures, tools and equipment | 3,765 | 1,449 | 1,843 |
| Leasehold improvements | 800 | 911 | 855 |
| Tangible assets | 12,797 | 5,060 | 7,434 |
| Deposits | 7,752 | 7,684 | 7,723 |
| Deferred tax assets | 19,719 | 30,488 | 22,097 |
| Other long-term assets | 27,471 | 38,172 | 29,820 |
| Total long-term assets | 56,712 | 53,044 | 47,603 |
| Inventories | 15,181 | 17,214 | 20,632 |
| Trade receivables | 50,013 | 54,230 | 63,709 |
| Contract development projects in progress | 20,779 | 6,944 | 14,074 |
| Income taxes | 26 | - | - |
| Other receivables | 1,415 | 1,713 | 2,874 |
| Accruals | 3,180 | 3,857 | 4,056 |
| Receivables | 75,413 | 66,744 | 84,713 |
| Short-term current asset investments | 18,305 | 33,947 | 18,258 |
| Short-term current asset investments for sale (trading portfolio) | 89,669 | 70,682 | 89,401 |
| Total short-term current asset investments | 107,974 | 104,629 | 107,659 |
| Cash at bank and in hand | 51,027 | 78,675 | 94,809 |
| Total short-term assets | 249,595 | 267,262 | 307,813 |
| Total assets | 306,307 | 320,306 | 355,416 |
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
9/14
GROUP BALANCE SHEET
(NON-AUDITED)
| Amounts in DKK '000 | 31 March 2017 | 31 March 2016 | 30 Sep. 2016 |
|---|---|---|---|
| Equity and liabilities | |||
| Share capital | 47,164 | 47,492 | 47,164 |
| Share premium account | 288,598 | 298,403 | 288,598 |
| Retained earnings | -78,116 | -76,429 | -55,199 |
| Equity | 257,646 | 269,466 | 280,563 |
| Provisions | 261 | 395 | 261 |
| Long-term liabilities | 261 | 395 | 261 |
| Prepayments received from customers | 1,430 | 441 | 801 |
| Trade payables | 22,800 | 18,701 | 37,157 |
| Contract development projects in progress | 1,974 | 918 | 4,710 |
| Income taxes | 193 | 1,542 | 4,354 |
| Provisions | 1,722 | 6,107 | 3,476 |
| Other payables | 20,281 | 22,736 | 24,094 |
| Short-term liabilities | 48,400 | 50,445 | 74,592 |
| Total liabilities | 48,661 | 50,840 | 74,853 |
| Total equity and liabilities | 306,307 | 320,306 | 355,416 |
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
30/14
EQUITY STATEMENT FOR THE GROUP
(NON-AUDITED)
| Amounts in DKK '000 | Share capital | Share premium | Retained earnings | Total |
|---|---|---|---|---|
| Equity at 1 October 2015 | 45,687 | 296,090 | -75,871 | 265,906 |
| Profit/loss for the period | - | - | 26,335 | 26,335 |
| Exchange rate adjustments of foreign subsidiaries | - | - | -522 | -522 |
| Fair value adjustment of short-term current asset investments | - | - | -241 | -241 |
| Other comprehensive income | - | - | -763 | -763 |
| Comprehensive income for the period | - | - | 25,572 | 25,572 |
| Share-based remuneration | - | - | 1,908 | 1,908 |
| Acquisition of treasury shares | 1,805 | 2,313 | - | 4,118 |
| Dividends for 2014/15 | - | - | -17,208 | -17,208 |
| Acquisition of treasury shares | - | - | -10,830 | -10,830 |
| Other transactions | 1,805 | 2,313 | -26,130 | -22,012 |
| Equity at 31 March 2016 | 47,492 | 298,403 | -76,429 | 269,466 |
| Equity at 1 October 2016 | 47,164 | 288,598 | -55,199 | 280,563 |
| Profit/loss for the period | - | - | 15,035 | 15,035 |
| Exchange rate adjustments of foreign subsidiaries | - | - | 1,117 | 1,117 |
| Fair value adjustment of short-term current asset investments | - | - | 46 | 46 |
| Other comprehensive income | - | - | 1,163 | 1,163 |
| Comprehensive income for the period | - | - | 16,198 | 16,198 |
| Share-based remuneration | - | - | 2,150 | 2,150 |
| Other regulations related to share-based remuneration | - | - | 2,000 | 2,000 |
| Dividends for 2015/16 | - | - | -17,558 | -17,558 |
| Acquisition of treasury shares | - | - | -25,707 | -25,707 |
| Other transactions | - | - | -39,115 | -39,115 |
| Equity at 31 March 2017 | 47,164 | 288,598 | -78,116 | 257,646 |
Share capital of DKK 47,164,190 consists of 9,432,838 shares at DKK 5.
The Group holds 682,557 treasury shares at 31 March 2017 (609,385 shares at 31 March 2016).
There are no shares carrying special rights.
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
33/14
GROUP CASH FLOW STATEMENT
(NON-AUDITED)
| Amounts in DKK '000 | Q2 2016/17 | Q2 2015/16 | H1 2016/17 | H1 2015/16 | FY 2015/16 |
|---|---|---|---|---|---|
| Operating profit/loss (EBIT) | 4,690 | 21,787 | 19,748 | 33,856 | 65,765 |
| Reversal of items with no effect on cash flow | |||||
| Depreciation, amortization and impairment | 1,194 | 1,360 | 2,244 | 2,684 | 4,217 |
| Other items with no effect on cash flow | 1,145 | -178 | -794 | -244 | -3,617 |
| Exchange rate correction on cash items | -386 | -1,053 | -133 | 986 | 3,844 |
| Change in working capital | |||||
| Change in inventories | 2,889 | 8,116 | 4,585 | 6,623 | 2,492 |
| Change in receivables | 26,826 | 1,842 | 9,326 | -8,750 | -27,281 |
| Change in trade payables etc. | -10,292 | -14,471 | -17,093 | -13,702 | 13,176 |
| Cash flow from operating activities | 26,066 | 17,403 | 17,883 | 21,453 | 58,596 |
| Financial income received | 614 | 910 | 729 | 1,253 | 853 |
| Financial expenses paid | -99 | -1,334 | -230 | -1,112 | -421 |
| Income taxes paid | -172 | 269 | -4,546 | -1,706 | -1,814 |
| Cash flow from operations | 26,409 | 17,248 | 13,836 | 19,888 | 57,214 |
| Investments in own development projects | -4,799 | - | -6,543 | - | -985 |
| Acquisition of property, plant and equipment | -2,622 | -648 | -7,104 | -1,921 | -5,765 |
| Deposits on leaseholds | - | -7,125 | -6 | -7,148 | -7,161 |
| Refunded deposits regarding leaseholds | - | -1,531 | - | -1,531 | -1,531 |
| Income from sale of buildings | - | 71,308 | - | 71,308 | 71,308 |
| Acquisition and sale of short-term securities | -612 | -30,045 | -700 | -30,227 | -31,427 |
| Cash flow from investments | -8,033 | 31,959 | -14,353 | 30,481 | 24,439 |
| Repayment of long-term liabilities | - | -7,032 | - | -10,863 | -10,863 |
| Income from capital increase | - | 4,118 | - | 4,118 | 5,871 |
| Acquisition of treasury shares | -16,176 | -7,351 | -25,707 | -10,830 | -27,735 |
| Paid dividend | -18,865 | -18,275 | -18,865 | -18,275 | -18,274 |
| Dividend for treasury shares | 1,307 | 1,066 | 1,307 | 1,066 | 1,067 |
| Cash flow from financing activities | -33,734 | -27,474 | -43,265 | -34,784 | -49,934 |
| Increase/decrease in cash and cash equivalents | -15,358 | 21,733 | -43,782 | 15,585 | 31,719 |
| Cash and cash equivalents at the beginning of the period, net | 66,385 | 56,942 | 94,809 | 63,090 | 63,090 |
| Cash and cash equivalents at the end of the period, net | 51,027 | 78,675 | 51,027 | 78,675 | 94,809 |
| Cash and cash equivalents at the end of the period, net, is composed as follows: | |||||
| Cash at bank and in hand | 51,027 | 78,675 | 51,027 | 78,675 | 94,809 |
| Bank debt | |||||
| Cash and cash equivalents at the end of the period, net | 51,027 | 78,675 | 51,027 | 78,675 | 94,809 |
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
12/14
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 2015/16, 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 2015/16 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 2016.
RTX INTERIM REPORT FOR THE SECOND QUARTER OF 2016/17
13/14
NOTES
3. SEGMENT INFORMATION
| Amounts in DKK '000 | Q2 2016/17 | Q2 2015/16 | H1 2016/17 | H1 2015/16 | FY 2015/16 |
|---|---|---|---|---|---|
| Revenue, business segments | |||||
| Design Services | 34,415 | 31,853 | 68,853 | 62,225 | 126,279 |
| Business Communications | 49,721 | 70,786 | 126,545 | 131,319 | 268,352 |
| Non-allocated items | 1 | 1 | 1 | 925 | 924 |
| Total | 84,137 | 102,640 | 195,399 | 194,469 | 395,555 |
| EBIT | |||||
| Design Services | 3,972 | 4,176 | 5,233 | 8,142 | 13,535 |
| Business Communications | 1,057 | 17,847 | 17,741 | 28,557 | 54,844 |
| Non-allocated items | -339 | -236 | -3,226 | -2,843 | -2,614 |
| Total | 4,690 | 21,787 | 19,748 | 33,856 | 65,765 |
| Segment assets | |||||
| Design Services | 46,679 | 33,009 | 46,679 | 33,009 | 38,633 |
| Business Communications | 64,909 | 58,302 | 64,909 | 58,302 | 76,150 |
| Non-allocated items | 194,719 | 228,995 | 194,719 | 228,995 | 240,633 |
| Total | 306,307 | 320,306 | 306,307 | 320,306 | 355,416 |
| Revenue, geographical segments | |||||
| Denmark | 1,412 | 1,431 | 2,869 | 3,363 | 4,458 |
| Other Europe | 58,699 | 69,909 | 140,763 | 134,904 | 279,765 |
| Asia and Australia | 11,613 | 8,352 | 21,507 | 17,611 | 37,736 |
| North and South America | 12,413 | 21,775 | 28,370 | 36,329 | 68,093 |
| Africa | - | 1,173 | 1,890 | 2,262 | 5,503 |
| Total | 84,137 | 102,640 | 195,399 | 194,469 | 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 SECOND QUARTER OF 2016/17
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NOTES
4. GROUP DEVELOPMENT COSTS
| Amounts in DKK '000 | Q2 2016/17 | Q2 2015/16 | H1 2016/17 | H1 2015/16 | FY 2015/16 |
|---|---|---|---|---|---|
| Development costs before capitalization | 10,981 | 5,393 | 18,253 | 11,760 | 25,859 |
| Capitalized | -4,799 | - | -6,543 | - | -985 |
| Total amortization and impairment losses on development projects | 224 | 794 | 448 | 1,666 | 2,114 |
| Development costs recognized in the profit/loss account | 6,406 | 6,187 | 12,158 | 13,426 | 26,988 |
5. GROUP FINANCIAL ITEMS
| Amounts in DKK '000 | Q2 2016/17 | Q2 2015/16 | H1 2016/17 | H1 2015/16 | FY 2015/16 |
|---|---|---|---|---|---|
| Interest income from bonds available for sale | 614 | 241 | 729 | 465 | 853 |
| Exchange rate gains, net | - | - | - | - | - |
| Exchange rate gains on bonds | - | 669 | - | 788 | 2,455 |
| Financial income | 614 | 910 | 729 | 1,253 | 3,308 |
| Interest costs | 1 | 13 | 1 | 42 | 45 |
| Exchange rate losses, net | 614 | 1,228 | 29 | 880 | 172 |
| Exchange rate loss on bonds | 56 | - | 432 | - | - |
| Other financial costs | 98 | 93 | 229 | 190 | 376 |
| Financial expenses | 769 | 1,334 | 691 | 1,112 | 593 |