Annual Report and Financial Statements 2007 - Strong growth in both revenues and results
Annual Report and Financial Statements 2007 - Strong growth in both revenues and results
March 17, 2008 at 10:11 AM CET
In 2007 Columbus IT achieved a considerable growth in revenues on both consultancy and software. The demand for integrated enterprise systems has increased steadily and the increase in new customers has been quite good on all important markets. The focus on optimizing the operations in all parts of the company has as expected resulted in a strong improvement of the earnings. CEO Michael Gaardboe: "2007 was a good year for Columbus IT. We had some very concrete and ambitious tar-gets for the year regarding revenues, financial results and our position - and they have been meet. We have strengthened our position as a leading international reseller of inte-grated business solutions for medium sized companies, and we have become an even stronger international vendor of industry solutions for Microsoft Dynamics. A good geo-graphical spread of our activities combined with our ability effectively to implement global solutions provides us with strong opportunities to benefit from the expected future growth in the marked for integrated enterprise systems". • Columbus IT's revenues in 2007 totaled DKK 892M corresponding to an increase of 21%. This is in line with the Company's latest announced expectations, cf. stock exchange release no. 2 of January 30th 2008. • Earnings before depreciation (EBITDA) totaled DKK 51M (DKK 36M in 2006) corresponding to an im-provement of 41% compared to 2006. The result is in line with the Company's latest announced ex-pectations, and thus exceeds the original announced expectations for the year of DKK 33-37M by 38%. The result is partly achieved through strong earnings in Q4 2007 where EBITDA grew to DKK 28.4M from DKK 18M in Q4 2006 corresponding to an increase of 58%. • The Group's software development company, To-Increase B.V. the world's largest vendor of vertical standard industry applications for Microsoft Dynamics, had revenues to other Microsoft resellers of DKK 32M in 2007. This is an increase of 58% compared to 2006. On top of this To-Increase had reve-nues of DKK 8M in 2007 working as supplier to other affiliated companies in the Group (DKK 9.4M in 2006). EBITDA rose to DKK 16.4M in 2007, corresponding to an increase of 42% compared to 2006. • Revenues in the Russian subsidiary grew to DKK 106.5M in 2007, corresponding to an increase of 44% compared to 2006. EBITDA rose to DKK 13M, which compared to 2006 is an increase of DKK 21.5M. • Revenues in the subsidiaries in the US grew to DKK 127.7M in 2007, corresponding to an increase of 12% compared to 2006. Despite a declining dollar rate The American subsidiaries have succeeded in growing EBITDA in 2007 by 105% compared to 2006 to DKK 14.9M. • Revenues in the Danish subsidiary, the largest Microsoft partner in Denmark in 06/07, in 2007 amounted to DKK 267M, corresponding to an increase of 14% compared to 2006. EBITDA for the pe-riod amounted to DKK 21M, which is a decline of 25% compared to 2006. • Revenues in the British subsidiary amounted to DKK 51M in 2007, corresponding to an increase of 59% compared to 2006. The growth in the company has caused an increase in the EBITDA by 117% amounting to DKK 9.3M in 2007. • Pretax earnings grew to DKK 25.1M corresponding to an increase of 66% compared to 2006. • Earnings from discontinued operations, which consists of the now closed activities in Austria, Finland and the Czech Republic, amounted to DKK -15.0M in 2007. • Total equity amounted to DKK 225.5M at the end 2007 (DKK 212.0M in 2006), resulting in a solvency ratio of 39% (39% in 2006). • Columbus IT is forecasting 2008 revenues at a level of DKK 1,000M and EBITDA at a level of DKK60-65M. Ib Kunøe Michael Gaardboe Chairman CEO Columbus IT Partner A/S Columbus IT Partner A/S For further information, please contact: CEO Michael Gaardboe, T: +45 70 20 50 00 Translation: In the event of any inconsistency between this document and the Danish language version, the Danish language version shall be the governing version. The Annual Report for 2007 is expected to be available at: www.columbusit.com/2007 on April 11th, 2008 at the latest. Key Figures and Ratios MDKK 2003 2004 2005 2006 2007 Income statement Net revenue 523.4 562.4 629.9 735.7 892.4 External project costs -139.1 -128.3 -176.4 -204.9 -250.2 Gross earnings I 384.3 434.1 453.5 530.8 642.2 Staff expenses -281.1 -293.3 -311.1 -360.9 -438.0 Other external costs -106.5 -109.9 -118.5 -147.8 -153.8 Other operating income 17.0 2.3 0.6 14.8 1.0 Other operating expense -3.2 -4.7 -0.2 -0.7 -0.3 EBITDA 10.6 28.5 24.3 36.2 51.0 Depreciation excl. goodwill -19.3 -12.9 -11.7 -14.0 -18.6 EBITA -8.7 15.6 12.6 22.2 32.4 Amortization and write down of goodwill -11.2 -12.9 -7.3 -1.8 -1.5 EBIT -19.9 2.6 5.3 20.4 31.0 Result in affiliated companies 0.0 0.0 -0.1 -0.1 0.3 Net financial items -9.4 -8.0 -2.2 -5.2 -6.1 Pre-tax earnings -29.2 -5.3 3.0 15.1 25.1 Income tax expense -6.8 -6.2 -7.1 12.0 -4.4 Result for the year, continued operations -36.0 -11.5 -4.1 27.1 20.7 Result for the year, discontinued operations -1.6 -6.7 -2.0 -6.9 -15.0 Result for the year -37.6 -18.2 -6.1 20.2 5.7 Allocated thus: Shareholders of Columbus IT Partner A/S -40.3 -23.8 -10 21.2 5.3 Minority interests 2.7 5.6 3.9 -1.0 0.4 -37.6 -18.2 -6.1 20.2 5.7 Balance Sheet Long-term assets 124.7 115.1 229.7 256.1 250.0 Short-term assets 213.4 229.1 256.6 287.7 326.3 Total assets 338.1 344.2 486.3 543.8 576.3 Parent company shareholders' equity 31.9 6.5 147.3 201.1 214.0 Minority interests' equity 21.5 19.5 11.9 10.9 11.6 Debt 284.7 318.2 327.1 331.8 350.7 Total liabilities 338.1 344.2 486.3 543.8 576.3 Cash flow Cash flow from operations, continued activities -28.2 -15.4 22.1 35.0 55.6 Cash flow, discontinued activities -4.3 -0.1 -6.8 -5.2 -13.3 Cash flow from investments -13.3 -9.2 -100.3 -47.7 -24.6 Of which for investment in tangible fixed assets -5.0 -7.0 -6.9 -6.4 -11.3 Cash flow from financing activities 31.2 36.8 70.2 27.2 -1.7 Total cash flow -6.0 12.3 -1.2 9.3 16.0 Key ratios EBITDA-margin 2.0% 5.1% 3.9% 4.9% 5.7% Operating profit (EBIT-margin) -3.8% 0.5% 0.8% 2.8% 3.5% Equity ratio 15.8% 7.0% 32.7% 38.8% 39.1% Return on equity -305.4% -264.1% -10.1% 13.9% 2.6% Average number of shares, in thousands 21,433 37,628 59,918 72,529 76,160 Net asset value per share (BV) 1.49 0.17 2.46 2.77 2.81 Earnings per share (EPS) -1.88 -0.63 -0.17 0.29 0.07 Cash flow per share -1.5 -0.4 0.3 0.4 0.5 Share price, end of period 7.40 8.50 10.20 8.10 6.15 Headcount at the end of the period 865 803 943 1,024 1,124 The key figures and financial ratios above have been calculated in accordance with the Danish Society of Financial Analysts' "Recommendations and Key Figures 2005”. Comparison figures for earlier years have been corrected to present earnings from discontinued operations separately. Comparison figures for 2003 have not been restated in accordance with IFRS. As a result of the directed rights issue at a price of DKK 3 per share in April 2005 , the key figures for "Earnings per share” (EPS) and "Cash flow per share" have been calculated after applying a factor of 0.79. Significant events In 2007 Columbus IT grew both revenues and earnings on the main markets, and activities on these markets are proceeding very satisfactorily. 2007 was characterized by strong market growth on most markets and attractive opportunities for a company as Columbus IT, offering global and industry specific solutions. In 2007 focus was on optimization of operations in all parts of the company, on implementing an adjust-ment of the group's business model, and on integration of the 2006 acquisitions. In 2007 no acquisitions were made but acquisition candidates are continuously assessed. Considerable increase in both consulting and software revenues was achieved in 2007. Consulting reve-nues grew by 23% to DKK 533M, and software revenues grew by 23% to DKK 304M. Columbus IT ex-perienced continued growth in the demand for integrated business solutions, and the intake of new cus-tomers was considerable. The growth of the Groups software development company, To-Increase, continued in 2007. To-Increase handles the software development in the Group, and is among other things developing software product for the Microsoft Industry Builder program. Columbus IT develops industry solutions to Microsoft Dynam-ics and sells these to other Microsoft resellers. Columbus IT has partner agreements all over the world, and more than 170 partners internationally are selling Columbus solutions developed by To-Increase. For the Russian subsidiary, which had considerable difficulties in 2006, 2007 marked a striking turn around. Both revenues and earnings increased substantially. Columbus IT is very optimistic on the growth possibilities on the Russian marked in the years to come. The marked is growing considerably and Columbus IT has established a significant and well-run organization. Like the Russian subsidiary the subsidiaries in the US have emerged strengthen from the difficulties in 2006. And have, despite a declining dollar rate, with a growth of 12% compared to 2006 increased its revenue satisfactorily. Earnings were above expectations with a 105% increase in EBITDA compared to 2006. The development in the French subsidiary has been disappointing due to a number of loss-making con-tracts. In 2007 several actions has been taken to reverse this trend. A new country manager is now in place and project management resources have been strengthened. To secure the long term growth and earning 2007 saw a focusing of the growth strategy of Columbus IT and a clarification of the business model. The objective is to have full ownership of our operations in the central markets, and to be represented there with critical mass. Other markets are covered by partner-ships. On markets of less importance the objective is to be represented through franchise agreements. As a consequence the subsidiary in Austria was liquidated, and the former partnerships in the Czech Republic and Finland have been replaced by franchise agreements. In 2007 the subsidiaries in these three countries had revenues of DKK 11.6M, and pre-tax earnings of DKK -4.1M. In addition the Group had write downs of DKK 12.2M and accounting gains of DKK 1.4M as a consequence of the termination of the activities in the three countries. Consequently Earnings from discontinued operations amounted to DKK -15.0M in 2007. Latest developments There have been no events since December 31st 2007 which could significantly affect the evaluation of the group's financial position and revenues. Earnings in January and February 2008 were in line with the Company's expectations. Outlook for 2008 The overall favorable market conditions are expected to continue in 2008, even though some variations may be expected. The growth in the demand for ERP systems is expected to be driven by various cir-cumstances - continued economic growth in most countries, further globalization and increasing demand for efficiency and enabling IT systems. At the same time the still more advanced industry solutions from Columbus IT is expected to invigorate the demand for business systems. Columbus IT is expecting the strongest growth in Eastern Europe lead by Russia, but continued fair growth is also expected in Western Europe. The outlook for the US is more uncertain than in recent years due to increased risk of recession. But Columbus IT is expecting to achieve growth in the US in 2008. The customers are expected to show particular interest in the industry solutions developed by Columbus IT. The comprehensive work that for the past few years have been undertaken to develop Columbus IT into the leading consultancy and ISV focus on industry specific business solutions will continue in 2008. Amongst other things the effort to globally implement the Group strategy of developing solutions under the Microsoft Industry Builder program and developing more global and regional industry solutions will be continued. In 2008 Columbus IT will continue to position itself as a leading, global Microsoft Business Solutions partner. And the development of horizontal and vertical solutions will be based on Microsoft Dynamics. The management will continue to implement the Company's growth strategy in 2008 in agreement with the decisions made in 2007 concerning representation through 100% owned companies, partnerships and franchise agreements respectively. Columbus IT is continuously assessing the acquisition opportunities, in both new and existing markets as part of the efforts to obtain critical mass. The considerations will also take place in 2008. For 2008 revenues are expected at a level of DKK 1,000M and EBITDA at a level of DKK60-65M. Comments to the Annual Report 2007 Accounting policies The annual report for Columbus IT Partner A/S has been drawn up in accordance with International Fi-nancial Reporting Standards (IFRS) as adopted by EU and other Danish reporting requirements, among others, the requirements for financial reporting adopted by OMX Nordic Exchange Copenhagen for listed companies, and the IFRS-order issued pursuant to the order of the Company Accounts Act. The applied accounting principles are unchanged from the previous year. Profit and Loss account Columbus IT's revenues amounted to DKK 892M in 2007 against DKK 736M in 2006, corresponding to an increase of 21%. Revenues 2007 2006 MDKK % MDKK % Hardware 18 2% 21 3% Software 304 34% 247 34% Service & Support 37 4% 34 4% Consultancy 533 60% 434 59% Total 892 100% 736 100% Revenues 2007 2006 MDKK % MDKK % Microsoft Dynamics AX 568 64% 510 69% Microsoft Dynamics NAV 193 22% 137 19% Other MBS products 55 6% 53 7% Other 76 8% 36 5% Total 892 100% 736 100% Substantial growth in both software and consultancy revenues was achieved in 2007. Software revenue rose to DKK 304M in 2007 compared to DKK 247M in 2006 corresponding to an increase of 23%, con-sulting revenues rose to DKK 533M in 2007 compared to DKK 434M in 2006 corresponding to an in-crease of 23%. All product groups grew in 2007 compared to 2006. Highest growth was in the Group's Dynamics NAV-related revenues which compared to 2006 increased by 41%, and constituted 22% of the total revenues in 2007. As the table below shows, revenues grew in all regions, and the majority of the Group's subsidiaries have realized an activity level in line with or above expectations. Revenues EBITDA Headcount (MDKK) (MDKK) (as of December 31st) 2007 2006 2007 2006 2007 2006 Nordic 334 284 26 35 291 245 Western Europe 212 186 22 19 213 195 Eastern Europe 180 130 17 -5 387 370 Rest of the world 166 136 17 8 221 168 Parent Company 0 0 -31 -21 12 17 892 736 51 36 1,124 995 Note: Revenue figures state the revenue generated outside the Group in the regions. The Parent Company's figures are re-ported before costs being billed to subsidiaries. Thus, the subsidiaries' figures are reported exclusive of costs billed by the Parent Company. Earnings before depreciation, EBITDA, totaled DKK 51.0M in 2007 compared to DKK 36.2M in 2006 corresponding to an increase of 41%. Operating profit, EBIT, totaled DKK 31.0M in 2007 compared to DKK 20.3M in 2006 corresponding to an increase of 53%. The Group's financials show net expenses of DKK 6.1M in 2007 compared to net expenses of DKK 5.2M in 2006. Pretax earnings grew to DKK 25.1M compared to DKK 15.0M in 2006. Corporation tax in profit-making foreign subsidiaries leads to a total calculated tax charge for Columbus IT for the year on DKK 4.4M compared to DKK -12.0M in 2006. Earnings of the year from continued operations amounted to DKK 20.7M in 2007 compared to DKK 27.0M in 2006. Earnings of the year from discontinued operations, consisting of the now closed activities in Austria, Finland and the Czech Republic, amounted to DKK -15.0M. Subsequently the total earnings of the year amounted tom DKK 5.7M, compared to DKK 20.2M in 2006. Equity Total equity amounted to DKK 225.5M at the end 2007 (DKK 212.0M in 2006), resulting in a solvency ratio of 39.1% compared to 38.8% at the end of 2006. In January 2007, Columbus IT issued shares in Columbus IT Partner A/S, to settle the outstanding pur-chase price relating to the Polish company, Creative Innovation Group Sp. Z o.o. Please refer to stock exchange release no. 1 of January 8th, 2007. In May 2007, Columbus IT issued shares in Columbus IT Partner A/S, to settle the second part of the purchase sum relating to the American company, Vertical-Soft Inc. Please refer to stock exchange release no. 9 of May 18th, 2007. Accordingly, a total of 1,320,465 shares were issued in 2007, which had a positive net impact on equity of DKK 10.8M. At the end of 2007 Columbus IT owned 1,749 own shares corresponding to 0.02‰ of the share capital. Investments Total investments in tangible and intangible assets, except for goodwill, in 2007 totalled DKK 28.1M compared to DKK 24.6M in 2006. DKK 16.8M was attributable to investments in development projects, while the remaining DKK 11.3M was attributable to the acquisition of tangible assets. Cash flow and liquidity status Cash flow from operating activities constituted DKK 55.6M in 2007, an improvement of DKK 20.6M com-pared to 2006. This improvement is mainly due to the improved gross earnings and EBITDA. Likewise cash flow from investing activities is improved considerably compared to 2006, from DKK -47.8M to DKK -24.6M. Cash flow from financing activities was reduced from DKK 27.2M in 2006 to DKK -1.7M. Cash flow from discontinued operations accounted for DKK -13.3M in 2007. Columbus IT held cash funds of DKK 61.0M on December 31st, 2007 compared to DKK 43.6M same time 2006. Cash funds are mainly held in various foreign subsidiaries. Regional development Nordic 2007 2006 Revenues MDKK % MDKK % Hardware 17 5% 19 7% Software 105 32% 88 31% Service & Support 10 3% 9 3% Consultancy 202 60% 168 59% Total 334 100% 284 100% Nordic 2007 2006 Revenues MDKK % MDKK % Microsoft Dynamics AX 200 60% 188 66% Microsoft Dynamics NAV 70 21% 46 16% Other MBS products 45 13% 41 14% Other 19 6% 9 4% Total 334 100% 284 100% Revenues for the Nordic region increased in 2007 by DKK 50M to DKK 334M, corresponding to an 18% growth compared to 2006. The increase is due to a higher level of activity in both the Danish subsidiary where revenues increased by 14% compared to 2006 and in the Norwegian subsidiaries where revenues increased by 36% compared to 2006. The Nordic Region accounts for 37% of the Group's revenues. The region's EBITDA in 2007 amounted to DKK 26M, corresponding to a drop of 26% compared to 2006. EBITDA in the Norwegian subsidiaries grew by 13% compared to 2006. On the other hand EBITDA in the Danish subsidiary dropped by 25% to DKK 21M. The drop is primarily due to the fact that sales prices have not kept up with the growth in salaries in the market. Furthermore the Danish subsidiary has invested in building up a strong competence within Microsoft CRM. Columbus IT has been elected Mi-crosoft CRM partner 2007 in Denmark. Western Europe 2007 2006 Revenues MDKK % MDKK % Hardware 1 1% 1 1% Software 66 31% 62 33% Service & Support 17 8% 10 5% Consultancy 128 60% 113 61% Total 212 100% 186 100% Western Europe 2007 2006 Revenues MDKK % MDKK % Microsoft Dynamics AX 134 63% 125 67% Microsoft Dynamics NAV 73 35% 53 29% Other MBS products 5 2% 8 4% Other 0 0% 0 0% Total 212 100% 186 100% In Western Europe revenues amounted to DKK 212M in 2007 which is an increase of DKK 26M, corre-sponding to a 14% growth compared to 2006. The Group's software development company, To-Increase, had revenues of DKK 32M to other Microsoft resellers in 2007. This is an improvement of 58% compared to 2006. On top of this To-Increase had revenues of DKK 8.0M in 2007 working as supplier to other affiliated companies in the Group (DKK 9.4M in 2006). Revenues in the British subsidiary have grown significantly to DKK 51M in 2007, corresponding to a growth of 59%. The region accounted for 24% of the Group's revenues. EBITDA for the region grew DKK 22M in 2007 corresponding to an increase of 16% compared to 2006. EBITDA in To-Increase grew to DKK 16.4M in 2007, corresponding to an increase of 42% compared to 2006. The Groups Dutch consulting unit had some challenges in 2007, and the company's EBITDA dropped DKK 3.3M compared to 2006. The growth in the British subsidiary has lead to a growth in EBITDA of 117% in 2007, amounting to DKK 9.3M. Eastern Europe 2007 2006 Revenues MDKK % MDKK % Hardware 0 0% 0 0% Software 75 42% 46 35% Service & Support 7 4% 9 7% Consultancy 98 54% 75 58% Total 180 100% 130 100% Eastern Europe 2007 2006 Revenues MDKK % MDKK % Microsoft Dynamics AX 125 69% 103 79% Microsoft Dynamics NAV 11 6% 6 5% Other MBS products 5 3% 4 3% Other 39 22% 17 13% Total 180 100% 130 100% Revenues in Eastern Europe amounted to DKK 180M in 2007 which is an increase of DKK 50M, cor-responding to a 38% growth compared to 2006. Revenues in the Russian subsidiary grew from DKK 74.1M in 2006 to DKK 106.5M in 2007, corresponding to an increase of 44%. The Estonian subsidiary grew revenues by 44% compared to 2006, and had revenues of DKK 26.7M. Revenues of the Lithuanian subsidiary dropped DKK 2.2M compared to 2006, corresponding to a decline of 11%. Revenues in the Polish company on the contrary grew from DKK 8.4M in 2006 to DKK 18.2M in 2007. The revenue growth in Poland is worked up by the acquired Polish companies, which in Q3/2006 were merged with the Group's existing Polish company. The region accounted for 20% of the Group's revenues. The region's EBITDA increased by DKK 22M compared to 2006 to DKK 17M in 2007. The restructuring measures implemented in the Russian company in 2006 have brought the company back on a profitable track and the Russian company delivered an EBITDA of DKK 13M in 2007. Rest of the world 2007 2006 Revenues MDKK % MDKK % Hardware 0 0% 1 1% Software 58 35% 51 38% Service & Support 3 2% 6 4% Consultancy 105 63% 78 57% Total 166 100% 136 100% Rest of the world 2007 2006 Revenues MDKK % MDKK % Microsoft Dynamics AX 109 66% 94 69% Microsoft Dynamics NAV 39 23% 32 24% Other MBS products 0 0% 0 0% Other 18 11% 10 7% Total 166 100% 136 100% In the Rest of the World total revenues amounted to DKK 166M in 2007, which is an increase of DKK 30M, corresponding to a 22% growth compared to 2006. Revenues in subsidiaries in the US grew from DKK 114.5 in 2006 to DKK 127.7M in 2007 corresponding to an increase of 12%. The Mexican and the Brazilian subsidiaries, which were acquired in Q2 and Q3/2006 respectively contributed with total reve-nues of DKK 17.1M in 2007. The region accounted for 19% of the Group's revenues. EBITDA in the region amounted to DKK 17M in 2007, which is an increase of DKK 9M compared to 2006. The optimization measures undertaken by subsidiaries in the US during 2006 have shown to be quite effective and the companies delivered a combined EBITDA of DKK 14.9M in 2007. The subsidiaries in Colombia, Chile and Costa Rica delivered a combined EBITDA of DKK 2.2M compared to DKK 0.3M in 2006. The Mexican and the Brazilian subsidiaries, which both are in a set-up phase, delivered a combined EBITDA of DKK 0.3M in 2007. EBITDA in the Parent Company amounted to DKK -31M in 2007 before billing subsidiaries for costs, compared to DKK -21M in 2006. 2006 however was influenced by non-recurrent earnings related to the sale of 49% of the shares in the Groups French activities. Annual General Meeting The Company's Annual General Meeting will be held on April 21st, 2008 at Tietgensalen, Børsbygningen, Slotsholmsgade, 1217 København K. The following Management's review is expected to be made at the annual report: Management Report The Boards of Directors and Management have today approved the annual report for 2007 for Columbus IT Partner Group and the Parent Company. The annual report has been drawn up in accordance with the provisions in International Financial Re-porting Standards (IFRS) as adopted by EU and additional Danish reporting requirements for the presen-tation of financial statements by listed companies. We regard the accounting policies applied as appro-priate and that the annual report gives a true picture of the Group's and Parent's assets and liabilities, financial position as of 31 December 2007, and the results of the Group's and Parent's activities and Group's cash flow for the period 1 January - 31 December 2007. The annual report is submitted for approval by the shareholders at the Annual General Meeting. Ballerup, March 17th, 2008 Board of Management Michael Gaardboe Claus Hansen CEO COO Board of Directors Ib Kunøe Sven Madsen Claus Hougesen Jørgen Cadovius Chairman Income statement DKK ´000 2007 2006 Net revenue 892,366 735,750 External project costs -250,181 -204,949 Gross earnings 642,185 530,801 Staff expenses -438,042 -360,909 Other external costs -153,771 -147,836 Other operating income 972 14,817 Other operating expense -318 -660 Earnings before depreciation and amortization (EBITDA) 51,026 36,213 Depreciation -18,578 -14,092 Earnings before write down of goodwill (EBITA) 32,448 22,121 Write down of goodwill -1,495 -1,816 Operating profit (EBIT) 30,953 20,305 Results in associated companies 263 -137 Financial income 8,350 7,150 Financial expense -14,470 -12,306 Pre-tax earnings 25,096 15,012 Tax on the result of the year -4,414 12,012 Result for the year, continued operations 20,682 27,024 Result for the year, discontinued operations -14,960 -6,867 Result for the year 5,722 20,157 Allocated thus: Shareholders of Columbus IT Partner A/S 5,348 21,171 Minority interests 374 -1,014 5,722 20,157 Balance sheet DKK ´000 2007 2006 Assets Goodwill 151,377 156,754 Royalties 141 313 Development projects finalized 38,116 37,444 Development projects in progress 4,145 2,649 Intangible assets 193,779 197,160 Leasehold improvement 1,226 461 Plant and operating equipment 14,796 12,047 Tangible assets 16,022 12,508 Holdings in associated companies 1,520 1,994 Deferred tax assets 34,199 35,484 Other receivables 4,476 8,947 Financial assets 40,195 46,425 Total long-term assets 249,996 256,093 Inventories 6,655 1,764 Trade receivable 203,889 189,154 Contract work in progress 26,086 22,847 Receivables from shareholders 0 981 Corporation tax 4,536 3,376 Other receivables 18,355 17,415 Accruals 5,814 8,543 Receivables 258,680 242,316 Cash funds 60,959 43,633 Total short-term assets 326,294 287,713 Total assets 576,290 543,806 Balance sheet DKK ´000 2007 2006 Liabilities Share capital 95,580 93,929 Reserves on foreign currency translation -5,313 -1,455 Retained profit 123,714 108,614 Parent company shareholders' equity 213,981 201,088 Minority interests' equity 11,558 10,899 Total equity 225,539 211,987 Deferred tax 1,139 1,017 Credit institutions 780 773 Other debt 2,025 2,080 Long-term debt 3,944 3,870 Credit institutions 92,775 94,005 Debt to shareholders and affiliated companies 6,487 6,117 Client prepayments 37,679 35,171 Trade accounts payable 94,568 68,257 Corporation tax 728 1,803 Payable purchase sum re. acquired companies 0 10,862 Other debt 109,185 102,834 Accruals 5,385 8,900 Short-term debt 346,807 327,949 Total debt 350,751 331,819 Total liabilities 576,290 543,806 Consolidated statement of changes in equity DKK ´000 Share capital Reserves on foreign currency translation Retained profit Minority interest Equity Balance at 1 January 2007 93,929 -1,455 108,614 10,899 211,987 Foreign currency translation -3,858 -3,858 Other reserves 412 412 Net income recognised directly in equity 93,929 -5,313 108,614 11,311 208,541 Profit for the year 5,348 374 5,722 Total recognised income and expense 93,929 -5,313 113,962 11,685 214,263 Capital increase 1,651 9,123 10,774 Issue of share warrant scheme 629 629 Addition of minority interests 260 260 Disposal of minority interests Payment of dividends -387 -387 Balance at 31 December 2007 95,580 -5,313 123,714 11,558 225,539 DKK ´000 Share capital Reserves on foreign currency translation Retained profit Minority interest Equity Balance at 1 January 2006 88,777 2,320 56,198 11,893 159,188 Foreign currency translation -3,775 -3,775 Other reserves -122 -122 Net income recognised directly in equity 88,777 -1,455 56,198 11,771 155,291 Profit for the year 21,171 -1,014 20,157 Total recognised income and expense 88,777 -1,455 77,369 10,757 175,448 Capital increase 5,152 31,028 36,180 Costs in connection with capital increase -283 -283 Issue of share warrant scheme 500 500 Addition of minority interests 1,198 1,198 Disposal of minority interests -543 -543 Payment of dividends -513 -513 Balance at 31 December 2006 93,929 -1,455 108,614 10,899 211,987 Consolidated cash flow statement DKK ´000 2007 2006 Result for the period 20,682 27,027 Adjustments 30,713 9,911 Changes in working capital 15,556 -2,143 Cash flow from operating activities bef. financials and tax 66,951 34,795 Interest received, etc. 8,350 7,150 Interest paid, etc. -14,470 -12,306 Corporation tax paid -5,241 5,353 Cash flow from operating activities 55,590 34,992 Acquisition and investment in subsidiaries -2,371 -6,718 Acquisition and investment in affiliated companies -321 -963 Disposal of affiliated companies 963 0 Dividends received from affiliated companies 96 0 Acquisition of intangible assets -16,809 -18,230 Acquisition of tangible assets -11,323 -6,343 Acquisition of financial assets 0 -16,015 Disposal of financial assets 4,470 0 Disposal of intangible assets -30 148 Disposal of tangible assets 709 464 Cash flow from investing activities -24,616 -47,657 Proceeds from capital increase 10,774 34,616 Costs in connection with capital increase 0 -284 Raising of debt 0 9,000 Redemption of long-term debt 7 -568 Overdraft facilities -1,230 20,064 Prepayment of subordinated loan capital 0 -15,239 Dividends paid to minority shareholders -387 -513 Settlement of payable purchase sum -10,862 -19,892 Cash flow from financing activities -1,698 27,184 Cash flow from discontinued activities -13,322 -5,170 Net increase in cash funds 15,954 9,349 Cash funds at the beginning of the year 43,633 35,625 Exchange rate adjustments 1,372 -1,341 Cash funds at the end of the year 60,959 43,633