EASE2PAY N.V. 
By PR Newswire/ANP/
- Strategy 'Vision 2010: Gear to Growth' Already Yields Rewards
- Revenue Increases With 18% to EUR 70.2 Million
- Net Result Realised of EUR 3.4 Million With EUR 0.48 Basic Earnings
per Share
- Proposal to Distribute a Dividend of EUR 0.25 per Ordinary Share
Results and Financial position for the financial year 2007
(in millions, except percentage 2007 2006
figures and per share data)
EUR % EUR %
Revenue 70.2 100.0 59.6 100.0
Gross profit 17.7 25.2 14.1 23.7
Operating income before financing
result (EBIT) from continuing
operations 3.7 5.3 4.6 7.8
Result after tax from discontinued 0.4 0.6 (2.9) (4.8)
operation
Profit for the year 3.4 4.8 0.1 0.2
EBITDA (continuing operations) 7.4 10.5 7.9 13.2
Net cash from operating activities 8.3 11.8 3.0 5.0
Average number of shares outstanding
(millions) 7.05 7.05
Net cash from operating activities
per share 1.18 0.42
Basic earnings per share 0.48 0.02
Basic earnings per share
(continuing operations) 0.42 0.43
Balance sheet total 42.5 45.9
Equity 22.2 22.4
Solvency ratio
(Equity / Balance sheet total) 52.3% 48.8%
General
With the announcement of the 2007 year-end results, docdata completes the
transition of the Media Group and the e-Solutions Group. After developing in
2005 the strategy 'Vision 2010: Gear to Growth', docdata transformed in 2006
and 2007 into an innovative Internet Service Company and changed the
organisational structure from a country organisation to a divisional
structure. The e-Solutions Group, the engine of the Internet Service
strategy, has more than doubled its revenue to EUR 29 million and has thus
more than compensated the (ongoing) decrease in 'offline' replication within
the Media Group. This trend will continue in the coming years.
During the previous two years, the Internet Service Company docdata has
added new services, invested in the quality of its services and developed a
new Corporate Identity which gives colour to the transition in a recognisable
way. For each of the four specialised service concepts: commerce, payments,
fulfilment and media, docdata wants to offer the most innovative solutions.
Docdata aims to become market leader in specific sectors, across the various
services. Furthermore, docdata will expand its services geographically.
During 2007 Industrial Automation Integrators (IAI) B.V. focussed on the
development of a route along which IAI can apply its know how in markets
which show strong growth. After extensive research, the choice was made to
enter the market for solar energy. For 2008 this implies that we will invest
in R&D and possibly in companies that possess specific technological
knowledge which closely aligns with the current know how of IAI, as well as
with the demand in the solar market.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "I am proud of what has
been achieved in the last couple of years and I am convinced that we now have
a good basis for further growth in revenue and results."
Major features of the financial results for the 2007 year-end
DOCDATA N.V. has realised a gross profit of EUR 17.7 million in the
second transitional year 2007, compared to EUR 14.1 million in 2006 (+25%).
The gross profit margin has clearly increased over the past years, which
demonstrates that the new strategy is beginning to yield rewards. In 2007, an
operating income before financing result (EBIT) from continued operations has
been realised of EUR 3.7 million. The decrease compared to 2006 has
predominantly been caused by additional expenses in 2007 to successfully
implement the new strategy. In addition, some orders for IAI could not yet be
delivered in 2007. The increased profit for the year 2007 has predominantly
been caused by the loss from discontinued operation (net of income tax) in
2006, due to the decision in 2006 to terminate the activities of the Media
Group in France.
The cash flow statement in the Appendix to the attached enclosure
'Financial Information' shows that DOCDATA N.V. has realised net cash from
operating activities of EUR 8.3 million in 2007. The cash surplus position
has decreased in 2007 with EUR 0.6 million to EUR 3.5 million at 31 December
2007 (31 December 2006: EUR 4.1 million). Of this cash, EUR 8.8 million has
been spent in 2007 to finance:
- acquisition of subsidiaries: EUR 2.2 million in total for the
acquisition of an (additional) share interest of 40% in Triple Deal B.V.,
9.6% in Braywood Holdings Limited and 100% in Contributie Services B.V.
(acquired by Triple Deal B.V., resulting in indirect holding for 70% by
DOCDATA N.V.);
- investments in property, plant and equipment and intangible assets (EUR
3.2 million);
- distribution of dividend for the year 2006 to the shareholders (EUR 1.4
million);
- own shares bought (EUR 2.0 million).
DOCDATA N.V. has maintained its strong financial positions with a
solvency ratio of 52.3% at 31 December 2007 (31 December 2006: 48.8%).
Mission statement
The mission statement of DOCDATA N.V. is "enabling success"; for clients,
as well as for our employees, shareholders and suppliers.
- For the Internet Service Company docdata, this means the offering of
unique and reliable solutions to our clients which enable them to be
successful in their Internet business.
- For IAI, this consists of the offering of unique (production)
technologies with an extremely high quality.
- For the DOCDATA N.V. shareholders, this has resulted in dividend
distributions of over EUR 1.4 million and share buyback programs for almost
EUR 2 million. DOCDATA N.V. wants to continue this trend in 2008.
- For our employees, we offer a positive and challenging working
environment with sufficient possibilities for further development and room
for own initiatives.
Outlook
After two transitional years, the Internet Service Company docdata will
shift in 2008 to a higher gear. The focus for the first six months of 2008
will be to anchor the various acquisitions in the docdata organisation and to
optimise the synergies between the various companies. Autonomous profitable
growth will be the most important goal.
In 2008, IAI will focus on the realisation of the new route forward, in
combination with committed attention for the current markets. We have
allocated employees to realise the entry into the production market for solar
cells and will build a team to further develop this. Given the strong order
portfolio, the profitability in 2008 will remain strong although additional
expenses will be required for the implementation of the new route forward.
Dividend
Management of DOCDATA N.V. will propose to the shareholders at this
year's annual General Meeting of Shareholders, in accordance with Article 34
of the Articles of Association of DOCDATA N.V., to decide to distribute to
all shareholders of ordinary shares a dividend amount of EUR 0.25 per
ordinary share out of the profit for the year 2007. The distribution will be
subject to dividend withholding taxes, unless the shareholder can proof that
substantial holding exemption can be claimed.
The dividend policy of DOCDATA N.V., adopted by the General Meeting of
Shareholders, is aimed at realising a high dividend return, for which a
payout ratio of at least 50% is the starting point. The liquidity and
solvency required for the execution of the strategy, will also be taken into
consideration.
At 31 December 2007, the issued share capital of DOCDATA N.V. consists of
7,308,850 ordinary shares with a nominal value of EUR 0.10 each. DOCDATA N.V.
currently holds 439,689 (6.02%) of these issued ordinary shares, which are
kept in order to fund the personnel options scheme and to finance future
acquisitions. Ordinary shares owned by the Company are not entitled to any
distribution of profit.
When the General Meeting of Shareholders decides to accept this proposal,
an amount of EUR 1.7 million will be distributed in May 2008 as dividend out
of the profit for the year 2007 on the ordinary shares, which are held by
other shareholders than the Company. The General Meeting of Shareholders
shall be held on Thursday 15 May 2008 in Waalwijk. The dividend distribution
will lead to a limited decrease of the solvency ratio.
Results by division
The Internet Service Company docdata
e-Solutions Group
The strong growth within the e-Solutions Group can be explained by both
autonomous growth, as well as by the various acquisitions. In the last couple
of years, a complete Internet Service concept has been built in the Benelux,
the United Kingdom and Germany, with which a solid basis has been created for
further growth. The 2007 results have been influenced by investments in
people, IT systems and other means to enable future growth.
Media Group
The year 2007 is characterised by a continuation of the very competitive
market conditions, whereby both the CD and DVD market have shown continuation
of the decreasing trend. Given these market circumstances, revenue and
results of the Media Group have decreased in 2007 compared to 2006, mainly
due to disappointing results in Germany. By focussing continuously on cost
reductions and efficiency improvements, the Media Group succeeded to improve
the gross profit margin to 15.9% of revenue. Both in the United Kingdom and
in the Benelux, the year 2007 has been closed with improved results compared
to 2006.
Starting 1 January 2008, the Media Group has been merged with the
e-Solutions Group into the Internet Service Company docdata, consisting of
four divisions: docdata commerce, docdata payments, docdata fulfilment and
docdata media.
Industrial Automation Integrators
Revenue of IAI in 2007 was of a comparable level as in 2006; the
operating income has decreased due to a changed order mix. Again in 2007, by
far the biggest part of revenue and operating income was realised by
deliveries of systems for the security market, mainly in the segments
passports and bank notes, and the royalty revenues for the application of the
security features patented by IAI. In co-operation with KBA-GIORI and Orell
Füssli, a system for the application of MicroPerf(R) in bank notes was
delivered to the government printing company of Russia. A passport project in
Ukraine, which could not proceed due to political developments for a long
time, has been continued in 2007. This project includes amongst others the
delivery of BookMaster One systems, that fully personalise a passport booklet
in one go through the system.
Enclosure with financial information
For a detailed review of the 2007 year-end results, please refer to the
attached enclosure 'Financial Information for the year ended 31 December
2007' with Appendix.
Accounting principles
As of 1 January 2005 DOCDATA N.V. has adopted the International Financial
Reporting Standards as adopted by the European Union (hereafter IFRS) in
preparing the consolidated financial statements. For an overview of the
significant accounting policies under IFRS, please refer to the 2006 Annual
Report that is available at the Company and can also be downloaded from the
Company's website, http://www.docdata.com, under Corporate.
Meeting for financial press and analysts
Today, 14 February 2008, management of DOCDATA N.V. will discuss the 2007
year-end results in a meeting for which both financial press and analysts
have been invited, to be held at 10.30AM Amsterdam time in the Hermes room of
the Financieel Nieuwscentrum Beursplein 5 of Euronext Amsterdam (Beursplein
5, 1012 JW Amsterdam, +31-20-5505505).
Important dates
8 May 2008 Record date (voting rights)
15 May 2008 Annual General Meeting of Shareholders in Waalwijk
16 May 2008 Cum date
19 May 2008 Ex date
21 May 2008 Record date (dividend rights)
26 May 2008 Payment date
17 July 2008 Publication of 2008 half-year results
------------------------------------------
DOCDATA N.V. is listed at the NYSE Euronext since 1997 and exists of two
different organisations, docdata and Industrial Automation Integrators.
The Internet Service Company docdata (http://www.docdata.com) is an
European market leader with a strong basis in The Netherlands, Germany and
the United Kingdom, and exists of four divisions:
- docdata commerce
- docdata payments
- docdata fulfilment
- docdata media
Industrial Automation Integrators (http://www.iai.nl) is a high tech
engineering company specialised in developing and building machines for very
accurate and high speed processing of all kinds of products and materials.
IAI delivers clients globally in the following sectors:
- securing and personalising of security documents
- processing of packaging materials
- processing of solar cells
- processing of other materials (such as motion picture subtitling)
Financial Information
The financial information is prepared in accordance with International
Financial Reporting Standards as adopted by the European Union (hereafter
IFRS).
Revenue
(in thousands, except percentage figures) 2007 2006
Revenue by division EUR % EUR %
Media Group 32,315 46.0 37,096 62.2
e-Solutions Group 29,275 41.7 13,749 23.1
Industrial Automation Integrators 8,630 12.3 8,738 14.7
Total 70,220 100.0 59,583 100.0
- Media Group's revenue decreased EUR 4.8 million (13%) in 2007. This
total decrease was caused by lower revenue in Germany (EUR 2.8 million), in
the United Kingdom (EUR 1.2 million, including foreign currency exchange
effect) and in the Netherlands (EUR 0.8 million).
- The e-Solutions Group's revenue more than doubled with an increase of
EUR 15.5 million (129%) in 2007. This total increase is caused by higher
revenue in the Netherlands (EUR 6.9 million due to strong autonomous growth
of the Waalwijk operations and the effect from the consolidation of Triple
Deal since 25 May 2007 and a full year's contribution to consolidated revenue
by DOCdata e-Commerce Solutions in 2007), in the United Kingdom (EUR 5.4
million due to a full year's contribution to consolidated revenue by Braywood
in 2007) and in Germany (EUR 3.2 million, predominantly from content
projects).
- Industrial Automation Integrators' revenue of EUR 8.6 million in 2007
is at a level comparable to the revenue of EUR 8.7 million in 2006.
Gross profit
(in thousands, except percentage figures) 2007 2006
Gross profit by division EUR % EUR %
Media Group 5,125 29.0 5,734 40.6
e-Solutions Group 8,903 50.3 4,485 31.8
Industrial Automation Integrators 3,671 20.7 3,905 27.6
Total 17,699 100.0 14,124 100.0
Gross profit margin by division
(as % of revenue by division)
% %
Media Group 15.9 15.5
e-Solutions Group 30.4 32.6
Industrial Automation Integrators 42.5 44.7
Total 25.2 23.7
- The Media Group's gross profit decreased EUR 0.6 million (11%) in 2007,
while the gross profit margin improved from of 15.5% in 2006 to 15.9% in
2007. This improvement proves that the decrease in the average sales prices
for CD and DVD has, again in 2007, been offset by realised decreases in
production costs (including material expenses for polycarbonate and
DVD-production royalties, personnel expenses, depreciation expenses and
overheads).
- Gross profit of the e-Solutions Group increased EUR 4.4 million (99%)
in 2007. The gross profit margin decreased from 32.6% in 2006 to 30.4% in
2007 as a result of the changed mix of e-Solutions businesses, mainly due
to the acquisition of Braywood in November 2006 and the start of
consolidation of Triple Deal at 25 May 2007.
- Gross profit of Industrial Automation Integrators decreased EUR 0.2
million (6%) in 2007. The gross profit margin decreased, predominantly caused
by the difference in the sales mix of security systems delivered in both
years, as well as in the mix of the other revenue categories for the previous
year.
Other operating income and expenses
(in thousands, except percentage figures) 2007 2006
Other operating income and expenses EUR % EUR %
(as % of revenue)
Other operating income 308 0.4 465 0.8
Other operating expenses (191) (0.3) - -
Total 117 0.1 465 0.8
Other operating income and other operating expenses for the years 2007
and 2006 predominantly relate to releases of expenses accrued for in previous
years or charges for expenses from previous years not accrued for in the
balance sheet per the end of the previous financial years. For both
comparable years, other operating income and other operating expenses only
include relatively small income and expense amounts.
Selling and administrative expenses
(in thousands, except percentage figures) 2007 2006
S&A (as % of revenue) EUR % EUR %
Selling expenses 4,230 6.0 3,146 5.3
Administrative expenses 9,847 14.0 6,795 11.4
Total 14,077 20.0 9,941 16.7
S&A by division EUR % EUR %
(as % of revenue by division)
Media Group 4,788 14.8 5,293 14.3
e-Solutions Group 7,924 27.1 3,585 26.1
Industrial Automation Integrators 1,365 15.8 1,063 12.2
Total 14,077 20.0 9,941 16.7
- Selling expenses increased EUR 1.1 million (34%) in 2007. This increase
is fully caused by the e-Solutions Group, as selling expenses of both the
Media Group and Industrial Automation Integrators remained at comparable
levels for both years.
- Administrative expenses increased EUR 3.0 million (45%) in 2007. This
increase is a combination of decreased administrative expenses for the Media
Group (EUR 0.5 million) and increased administrative expenses for the
e-Solutions Group (EUR 3.2 million) and Industrial Automation Integrators
(EUR 0.3 million). The decrease in administrative expenses of the Media Group
is a combined effect of lower depreciation expenses, lower personnel expenses
and lower other trading costs. The increase in administrative expenses of
Industrial Automation Integrators is mainly caused by higher personnel
expenses and higher consultancy costs, related to the strategic search for
new markets.
- In total, selling and administrative expenses for the e-Solutions Group
increased EUR 4.3 million in 2007. This increase is almost fully caused by
the new consolidated subsidiaries of the e-Solutions Group (Braywood,
Triple Deal, DOCdata E-commerce Fulfillment Germany and DOCdata e-Commerce
Solutions), who were only contributing to the consolidated selling and
administrative expenses for a part of the second half of the year 2006. For
these subsidiaries, the implementation of the new strategy 'Vision 2010: Gear
to Growth' has resulted in additional expenses in 2007, which are
predominantly related to required investments in personnel, organisational
improvements, development of IT solutions, and design and implementation of
e-Solutions for new customers.
Operating profit before financing income (EBIT)
(in thousands, except percentage figures) 2007 2006
Operating profit (loss) by division EUR EUR
Media Group 526 826
e-Solutions Group 907 980
Industrial Automation Integrators 2,306 2,842
Total 3,739 4,648
Operating profit margin by division
(as % of revenue by division)
% %
Media Group 1.6 2.2
e-Solutions Group 3.1 7.1
Industrial Automation Integrators 26.7 32.5
Total 5.3 7.8
- Operating profit for the Media Group decreased EUR 0.3 million (36%) in
2007. This decrease is the combined effect of a decrease of EUR 0.6 million
in gross profit, a decrease in selling and administrative expenses of EUR 0.5
million and a decrease in other operating income of EUR 0.2 million.
- Operating profit for the e-Solutions Group decreased almost EUR 0.1
million (7%) in 2007. This decrease is the combined effect of the improved
gross profit (EUR 4.4 million), increased other operating expenses (EUR 0.2
million) and increased selling and administrative expenses (EUR 4.3 million),
mainly resulting from the new consolidated subsidiaries of the e-Solutions
Group (Braywood, Triple Deal, DOCdata E-commerce Fulfillment Germany and
DOCdata e-Commerce Solutions). The lower operating profit margin is
predominantly the effect from higher selling and administrative expenses due
to enabling growth of the activity level through higher personnel expenses
and organisational costs in all countries in which the e-Solutions Group is
currently active (the Netherlands, Germany and the UK).
- Operating profit of Industrial Automation Integrators decreased EUR 0.5
million (19%) in 2007. This decrease is the combined effect of a decrease of
EUR 0.2 million in gross profit and an increase in administrative expenses of
EUR 0.3 million. The lower operating profit margin is due to the different
sales mix for both years, with a lower gross profit margin of the revenue in
2007, in combination with higher administrative expenses in 2007.
Net financing (expenses)/income
Net financing expenses in 2007 amounted to EUR 0.3 million compared to
net financing income of EUR 0.1 million in 2006. This decrease of nearly EUR
0.5 million is predominantly caused by higher bank interest expenses in
relation to the financing for the whole year 2007 of the Braywood
acquisition. Furthermore, the amounts for financial income and financial
expenses have both increased in 2007 compared to 2006 in relation to the new
consolidated subsidiaries of the e-Solutions Group (Braywood, Triple Deal,
DOCdata E-commerce Fulfillment Germany and DOCdata e-Commerce Solutions).
Also, financial expenses in 2007 include a EUR 0.1 million higher foreign
currency exchange loss due to the euro becoming stronger against the British
pound in 2007.
Income tax expense
DOCdata's effective tax rate for 2007 was 19.4% with an income tax
expense of EUR 0.7 million on a profit from continuing operations before
income tax of EUR 3.7 million. For 2006 the profit from continuing operations
before income tax amounted to EUR 4.7 million and the income tax expense
amounted to EUR 1.7 million (effective tax rate: 36.3%).
The income tax expense of EUR 0.7 million in 2007 is the result of the
following tax treatments of the results per country:
- In the Netherlands, a tax charge of EUR 0.7 million has been recorded
consisting of a current tax charge of EUR 1.1 million at 25.5% on the taxable
income for the Dutch fiscal entity for the year 2007 and a release of EUR 0.4
million from accrued income tax for prior years.
- In the United Kingdom, a tax credit of EUR 0.1 million has been
recorded on the consolidated UK loss for 2007 against a corporate income tax
rate of 30.0%. This consolidated loss does include the amortisation charges
of the intangibles valued at acquisition of Braywood, as well as the bank
interest expenses in relation to the financing of the Braywood acquisition
during 2007.
- In Germany, a tax charge of EUR 0.1 million has been recorded,
predominantly due to the creation of a (partial) valuation allowance for the
deferred tax asset on the fiscal loss for the year 2007 available for carry
forward to future profits.
Profit/(Loss) from discontinued operation (net of income tax)
The profit from discontinued operation (net of income tax) in 2007 of EUR
0.4 million fully consists of the release of remaining balances for
provisions carried at 31 December 2006 for the termination of the former
French activities of the Media Group. In 2006, the loss from discontinued
operation (net of income tax) of EUR 2.9 million fully consisted of a loss
after tax of DOCdata France, including an operational net loss of EUR 0.8
million for the French activities and a total of EUR 2.1 million covering all
expenses in relation to writing off the assets and liabilities of DOCdata
France to net realisable value and providing for all costs for the sale or
closure of this subsidiary.
Liquidity and capital resources
The Group has invested a total amount of EUR 5.4 million in 2007: EUR 2.4
million in property, plant and equipment (mainly warehousing equipment and
investment in IT infrastructure), EUR 1.8 million for the acquisition of an
additional share interest of 40% in Triple Deal B.V. (bringing the share
interest to 70%), EUR 0.3 million for the acquisition of an additional share
interest of 9.6% in Braywood Holdings Ltd. (bringing the share interest to
85.6%), EUR 0.1 million for the 100% acquisition of Contributie Services B.V.
(acquired by Triple Deal B.V.), and EUR 0.8 million in intangibles
(predominantly IT development costs). These investments were financed from
the Group's net cash flow from operating activities of EUR 8.3 million in
2007 (2006: EUR 3.0 million), including total depreciation and amortisation
expenses of EUR 3.6 million (2006: EUR 5.1 million, including the write off
of DOCdata France). Net debt has decreased by EUR 0.6 million in 2007 from
EUR 4.1 million per 31 December 2006 to EUR 3.5 million per 31 December 2007.
Furthermore, an amount of EUR 0.4 million was used in 2007 from the Group's
credit facilities and an amount of EUR 0.3 million was repaid on other
borrowings.
In 2007 30,100 personnel options were exercised; 2,050 options from the
2002 series at a price of EUR 3.05 per share, 1,900 options from the 2003
series at a price of EUR 2.68 per share, and 26,150 options from the 2004
series at a price of EUR 4.48 per share. The underlying shares have been
delivered by the Company from the number of own shares in possession of the
Company. The proceeds of EUR 0.1 million have been credited to equity under
reserves, as the purchase of own shares has been charged to reserves in the
past. In addition, 14,259 shares were granted to the CEO in June 2007,
following the approval by the General Meeting of Shareholders on 10 May 2007
of the Remuneration Report 2006. Furthermore, the Company has purchased
314,305 own shares in 2007, for a total purchase price of EUR 2.0 million, to
bring the number of own shares owned up to 439,689 (6.02%) shares as per 31
December 2007; the Company owns this same number of shares today.
The General Annual Meeting of Shareholders held on 10 May 2007 approved
the proposal to distribute a dividend of EUR 0.20 per ordinary share
outstanding (excluding own shares held by the Company), which had a
decreasing impact of EUR 1.4 million on retained earnings within the equity
of the Company in 2007.
Consolidated Financial Statements
1. Consolidated Balance Sheets
Balance sheets before appropriation of profit.
31 December 31 December
2007 2006
(in thousands) EUR EUR
Assets
Property, plant and equipment 7,508 8,121
Intangible assets 9,856 7,320
Investments in associates 459 1,247
Other investments 100 100
Trade and other receivables 230 1,068
Deferred tax assets 1,046 470
Total non-current assets 19,199 18,326
Inventories 3,884 3,765
Income tax receivables 407 154
Trade and other receivables 13,379 16,995
Cash and cash equivalents 5,586 5,831
Assets classified as held for sale - 831
Total current assets 23,256 27,576
Total assets 42,455 45,902
Equity
Share capital 731 731
Share premium 16,854 16,854
Translation reserves (49) 564
Reserve for own shares (1,625) 61
Retained earnings 5,932 3,978
Total equity attributable to equity holders of 21,843 22,188
the parent
Minority interest 344 226
Total equity 22,187 22,414
Liabilities
Interest-bearing loans and other 1,057 1,862
borrowings
Employee benefits 343 292
Deferred tax liabilities 653 764
Total non-current liabilities 2,053 2,918
Bank overdrafts 2,110 1,698
Interest-bearing loans and other 76 -
borrowings
Income tax payable 54 2,411
Trade and other payables 15,853 15,111
Provisions 122 52
Liabilities classified as - 1,298
held for sale
Total current liabilities 18,215 20,570
Total liabilities 20,268 23,488
Total equity and liabilities 42,455 45,902
2. Consolidated Income Statements
2007 2006
(in thousands, except earnings per share EUR % EUR %
and average shares outstanding)
Continuing operations
Revenue 70,220 100.0 59,583 100.0
Cost of sales (52,521) (74.8) (45,459) (76.3)
Gross profit 17,699 25.2 14,124 23.7
Other operating income 308 0.4 465 0.8
Selling expenses (4,230) (6.0) (3,146) (5.3)
General and administrative expenses (9,847) (14.0) (6,795) (11.4)
Other operating expenses (191) (0.3) - -
Operating income before financing 3,739 5.3 4,648 7.8
revenues
Financial income 438 0.6 314 0.5
Financial expenses (774) (1.1) (188) (0.3)
Net financing (expenses)/income (336) (0.5) 126 0.2
Share of profits/(losses) of associates 270 0.4 (43) (0.1)
Profit before income tax 3,673 5.2 4,731 7.9
Income tax expense (714) (1.0) (1,718) (2.9)
Profit from continuing operations 2,959 4.2 3,013 5.0
Discontinued operation
Profit/(Loss) from discontinued
operation
(net of income tax) 429 0.6 (2,877) (4.8)
Profit for the year 3,388 4.8 136 0.2
Attributable to:
Equity holders of the parent 3,389 4.8 154 0.2
Minority interest (1) - (18) -
Profit for the year 3,388 4.8 136 0.2
Weighted average number of shares 7,050,000 7,049,000
outstanding
Weighted average number of shares 7,223,000 7,166,000
(diluted)
Earnings per share
Basic earnings per share 0.48 0.02
Diluted earnings per share 0.47 0.02
Continuing operations
Basic earnings per share 0.42 0.43
Diluted earnings per share 0.41 0.42
3. Consolidated Statements of Cash Flows
2007 2006
(in thousands) EUR EUR
Cash flows from operating activities
Profit for the year 3,388 136
Adjustments for:
Depreciation and amortisation 3,625 5,056
Costs share options and shares granted 179 79
Gain on sale on property, plant and equipment - (7)
Financial expenses 774 188
Financial income (438) (314)
Share of profits / losses of associates (270) 43
Income tax expense 714 1,718
Other (1) (14)
Cash flows from operating activities before
changes in working capital and provisions 7,971 6,885
Decrease / increase in trade and other
receivables and assets held for sale 5,499 (1,942)
Increase / decrease in inventories (119) 669
Decrease in trade and other payables and
liabilities held for sale
(1,345) (381)
Increase / decrease in provisions and employee 121 (204)
benefits
Cash generated from the operations 12,127 5,027
Interest paid (598) (153)
Interest received 435 314
Income taxes paid (3,649) (2,218)
Net cash from operating activities 8,315 2,970
Cash flows from investing activities
Acquisition of property, plant and equipment (2,426) (1,358)
Acquisition of subsidiaries (2,234) (4,046)
Acquisition of intangible assets (781) -
Proceeds from sale of property, plant and 32 164
equipment
Acquisition of associates and other - (1,224)
investments
Net cash from investing activities (5,409) (6,464)
Cash flows from financing activities
Own shares bought (1,994) -
Dividends paid (1,444) (2,841)
Proceeds from bank overdrafts 412 1,698
Repayment of other borrowings (337) (31)
Proceeds from exercise of share options 129 199
Loans provided to associates - (257)
Net cash from financing activities (3,234) (1,232)
Net (decrease) increase in cash and cash (328) (4,726)
equivalents
Cash and cash equivalents at 1 January 5,831 10,516
Effect of exchange rate fluctuations on cash 83 41
held
Cash and cash equivalents at 31 December 5,586 5,831
4. Consolidated Statements of Shareholders' Equity
Share Share Reserves Retained Total equity Minority Total
capital premium earnings attributable interest equity
to equity
holders of
the parent
(in EUR EUR EUR EUR EUR EUR EUR
thousands)
Equity
Statement
2006
Balance at 1 731 16,854 (283) 6,646 23,948 23 23,971
January 2006
Dividend - - - (2,822) (2,822) (19) (2,841)
distribution
Shares issued - - 531 - 531 - 531
for
acquisitions
Exercised - - 199 - 199 - 199
share options
Costs share - - 79 - 79 - 79
options
Translation - - 99 - 99 - 99
difference
Consolidation - - - - - 240 240
participation
Profit for - - - 154 154 (18) 136
the year
Balance at 31 731 16,854 625 3,978 22,188 226 22,414
December 2006
Equity
Statement
2007
Balance at 1 731 16,854 625 3,978 22,188 226 22,414
January 2007
Dividend - - - (1,435) (1,435) (9) (1,444)
distribution
Shares bought - - (1,994) - (1,994) - (1,994)
Exercised - - 129 - 129 - 129
share options
Shares issued - - 92 - 92 - 92
for
remuneration
Costs share - - 87 - 87 - 87
options
Translation - - (613) - (613) - (613)
difference
Consolidation - - - - - 128 128
participation
Profit for - - - 3,389 3,389 (1) 3,388
the period
Balance at 31 731 16,854 (1,674) 5,932 21,843 344 22,187
December 2007
5. Notes to the Consolidated Financial Statements
5.1 Accounting principles
As of 1 January 2005 DOCdata N.V. (referred to as "DOCdata" or the
"Company") has adopted the International Financial Reporting Standards as
adopted by the European Union ("IFRS") in preparing the consolidated
financial statements.
For a summary of the significant accounting policies under IFRS, please
refer to the Company's Annual Report for the financial year ended 31 December
2006.
5.2 Consolidation
In the consolidated financial statements for the year ended 31 December
2007, the following acquisition has been consolidated as of the acquisition
date mentioned:
- Triple Deal B.V. as of 25 May 2007 (70% share interest). The 2007
consolidated income statement includes revenue and results of this subsidiary
as of acquisition date. The minority interest of 30% in the equity of this
subsidiary, which minority interest is owned by Conclusion Consultants B.V.
for 20% and by Syllion B.V. for 10%, has been accounted for in the
consolidated balance sheet under minority interest within total equity. In
the consolidated balance sheet at 31 December 2006 the pre-acquisition owned
interest in Triple Deal B.V. (30% share interest) was accounted for under
investments in associates;
- Contributie Services B.V. as of 28 December 2007 (100% share interest
of Triple Deal B.V.; indirect holding of 70% by DOCDATA N.V.), which share
interest has been acquired by Triple Deal B.V. from Conclusion B.V. The
revenue and results of this subsidiary will be included into the DOCdata
consolidation as of 1 January 2008 onwards. The balance sheet at 31 December
2007 of Contributie Services B.V. has been included in the consolidated
balance sheet at 31 December 2007.
In the consolidated financial statements for the year ended 31 December
2006, the following acquisitions have been consolidated as of the acquisition
dates mentioned:
- DOCdata e-Commerce Solutions B.V. as of 1 September 2006 (60% share
interest). The consolidated income statement includes revenue and results of
this subsidiary for the four months' period from 1 September 2006 till 31
December 2006. The minority interest of 40% in the equity of this subsidiary
has been accounted for in the consolidated balance sheet under minority
interest within total equity;
- Braywood Holdings Limited as of 15 November 2006 (76% share interest
originally; 85.6% since 7 December 2007). The consolidated income statement
includes revenue and results of this subsidiary for the one-and-half months'
period from 15 November 2006 till 31 December 2006. The fair value of the
purchase price for the remaining minority interest in the equity of this
subsidiary, based upon the put option agreement exercisable in the coming
four years, has been accounted for in the consolidated balance sheet under
interest bearing loans and other borrowings within non-current liabilities.
5.3 Discontinued operation
In the consolidated financial statements for the years ended 31 December
2007 and 31 December 2006, the assets, liabilities and activities of Optical
Disc de France S.A.S., (DOCdata France) formerly part of the Media Group,
have been accounted for as discontinued operation. In the consolidated
balance sheet at 31 December 2006, all assets and liabilities of DOCdata
France have been accounted for at net realisable value and have been reported
under assets classified as held for sale and liabilities classified as held
for sale. In the consolidated balance sheet at 31 December 2007, a provision
for remaining risks related to the termination of the French activities has
been accounted for under current liabilities (EUR 87 thousand). In the
consolidated income statements for the years ended 31 December 2007 and 31
December 2006, the results after income tax of DOCdata France for those
periods have been reported under profit/(loss) from discontinued operation
(net of income tax).
5.4 Management representations
In the opinion of the management, these financial statements include all
adjustments necessary for a fair presentation of the financial position,
operating results and cash flows of all reporting periods herein. All such
adjustments are of a normal recurring nature.
5.5 Property, plant and equipment
31 December 31 December
2007 2006
(in thousands) EUR EUR
Land and buildings 1,552 1,629
Machinery and equipment 4,071 5,085
Other 1,551 1,402
7,174 8,116
Under construction 334 5
Total 7,508 8,121
The book value for property, plant and equipment has decreased with EUR
0.6 million in 2007, resulting from depreciation charges for EUR 2.9 million
and divestments for EUR 0.1 million exceeding capital expenditure of EUR 2.4
million (inclusive of property, plant and equipment acquired through new
participations).
5.6 Intangible assets
31 December 31 December
2007 2006
(in thousands) EUR EUR
Goodwill 6,212 4,639
Customer contracts 898 544
IT platforms 2,605 1,887
Other - 250
9,715 7,320
Under construction 141 -
Total 9,856 7,320
The book value for intangible assets has increased with EUR 2.5 million
in 2007, due to the following:
- acquisition of the majority share in Triple Deal B.V. (influencing net
book value of goodwill, customer contracts and IT platforms for EUR 3.6
million in total), and the resulting inclusion in the DOCdata consolidation
as of 25 May 2007;
- additions for the development of IT platforms (EUR 0.9 million,
including under construction);
- amortisation charges for customer contracts, IT platforms, and the
investment in the motion picture "Kruistocht in Spijkerbroek" reported under
other intangibles (EUR 0.8 million in total);
- fair value adjustment of the put option agreement regarding the
minority shares in Braywood Holdings Ltd., following the acquisition in
December 2007 of the 9.6% share interest previously owned by one of the three
other (third-party) shareholders in this subsidiary (EUR 0.7 million);
- foreign currency loss (EUR 0.5 million) on the valuation of the
intangible assets with an original value in British pounds (i.e. related to
the Braywood acquisition).
5.7 Investments in associates
The book value for investments in associates has decreased with EUR 0.8
million in 2007 from nearly EUR 1.3 million at 31 December 2006 to EUR 0.5
million at 31 December 2007, predominantly as a result from the consolidation
of Triple Deal B.V. starting 25 May 2007. In the consolidated balance sheet
at 31 December 2006 the DOCdata share interest of 30% at that time in Triple
Deal B.V. was valued at EUR 0.9 million under investments in associates.
5.8 Post balance sheet events
In the period from 31 December 2007 till date, 14 February 2008, the
following post balance sheet events have occurred which will have an effect
on the DOCdata consolidation in 2008 onwards:
- Corporate Identity: on 16 January 2008, DOCdata launched its new
Corporate Identity that will enhance the strategy 'Vision 2010: Gear to
Growth'. From 1 January 2008 onwards, DOCdata has changed the organisation
structure from a country organisation to a divisional structure. The
segmentation for the 2007 financial statements is still the same as in
previous years, with the three segments Media Group, e-Solutions Group and
IAI. Starting the financial statements for the financial year 2008, DOCdata
will identify the following segments: docdata commerce, docdata payments,
docdata fulfilment and docdata media (collectively called "the Internet
Service Company docdata"), and Industrial Automation Integrators (IAI);
- Pegasus e-Business GmbH: DOCdata has increased its share interest in
Pegasus e-Business GmbH in Münster (Germany; formerly named 'Pegasus
Dienstleistungen GmbH') from 30% to 70%, through the exercise of the call
option on 40% of the issued share capital which was part of the original sale
and purchase agreement from September 2006. The balance sheet and income
statement of Pegasus e-Business GmbH will be included in the DOCdata
consolidation starting 1 January 2008;
- Hitura Limited: DOCdata has acquired an interest of 61.2% in the issued
share capital of Hitura Ltd. in London (England), with an agreement on the
purchase of the remaining minority shares between 2008 and 2013. The balance
sheet and income statement of Hitura Ltd. will be included in the DOCdata
consolidation starting 1 February 2008.
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information. All information should be checked prior to publication. Docdata Nv : DOCDATA N.V. Announces its 2007 Year-End Results
February 14, 2008 at 08:54 am
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