Interim Report H1 2012
Release no. 15/2012
Interim Report
H1 / 2012
The Interim Report has not been audited
Interim Report
CEO Thomas Honoré; "Increased revenues and earnings"
"Columbus realized an increase in revenues of 9% compared to H1 last year. EBITDA is significantly increased by 34% compared to H1 2011. The development in earnings is positively affected by progress in Columbus' software company and Columbus US, as well as by a considerable cost reduction. Due to the levels of revenues and EBITDA, the previously announced expectations for 2012 are maintained".
- Revenues for H1/2012 totaled DKK 460.7M (DKK 422.4M in H1/2011), corresponding to an increase of 9%.
- Earnings before depreciation (EBITDA) for H1/2012 totaled DKK 17.2M (DKK 12.9M in H1/2011), corresponding to an increase of 34% compared to H1/2011.
- Revenues in To-Increase totaled DKK 18.2M in H1/2012 (DKK 19.3M in H1/2011), corresponding to a decrease of 5% compared to H1/2011. EBITDA for the period totaled DKK 7.8M (DKK 4.8M in H1/2011), corresponding to an increase of 63% compared to 2011.
- Revenues in the Nordic region amounted to DKK 193.5M in H1/2012 (DKK 195.2M in H1/2011), corresponding to a decrease of 1% compared to H1/2011. EBITDA for the period totaled DKK 5.8M (DKK 14.2M in H1/2011), corresponding to a decrease of 59% compared to 2011. The decrease is mainly caused by declining results in both Danish companies, which are not to the necessary extent compensated for by the increase in the Norwegian company.
- Revenues in Western Europe amounted to DKK 64.5M in H1/2012 (DKK 56.2M in H1/2011), corresponding to an increase of 15% compared to H1/2011. The increase in revenues is realized in the British company, while revenues in the Dutch company decreased compared to 2011. EBITDA for the period totaled DKK 8.5M (DKK 7.6M in H1/2011), corresponding to an increase of 12% compared to 2011. Both revenues and EBITDA are primarily affected by the development in the British company.
- Revenues in Eastern Europe amounted to DKK 98.0M in H1/2012 (DKK 90.4M in H1/2011), corresponding to an increase of 8% compared to H1/2011. The increase in revenues is primarily caused by an increase in the Russian company. EBITDA for the period totaled DKK 3.5M (DKK 3.4M in H1/2011), corresponding to an increase of 3% compared to 2011. The increase is mainly caused by growth in the Russian company, while the Polish and the Baltic companies affect the devopment negatively compared to 2011.
- Revenues in North America amounted to DKK 88.5M in H1/2012 (DKK 61.2M in H1/2011), corresponding to an increase of 45% compared to H1/2011. EBITDA for the period totaled DKK 8.8M (DKK 2.5M in H1/2011), corresponding to an increase of 252% compared to 2011. The development in the company is considerably affected by the acquisition of the Detroit based company First Tech Direct.
- The announced expectations for 2012 are being maintained, and thus Columbus expects revenues in the level of DKK 900M and an EBITDA in the level of DKK 50M.
Ib Kunøe Thomas Honoré
Chairman CEO
Columbus A/S Columbus A/S
Key Figures and Ratios
DKKm | H1 2012 | H1 2011 | 2011 |
Income statement | |||
Net revenues | 460.7 | 422.4 | 820.6 |
External project costs | -132.8 | -109.7 | -206.6 |
Gross earnings H1 | 327.9 | 312.7 | 614.0 |
Staff costs | -243.8 | -230.1 | -452.6 |
Other external costs | -67.1 | -70.1 | -135.4 |
Other operating income | 0.2 | 0.7 | 2.1 |
Other operating costs | 0.0 | -0.2 | -1.2 |
EBITDA | 17.2 | 12.9 | 27.0 |
Depreciation excl. goodwill | -12.8 | -12.8 | -24.2 |
EBITA | 4.5 | 0.1 | 2.8 |
Amortization and write down of goodwill | 0.0 | 0.0 | 0.0 |
EBIT | 4.5 | 0.1 | 2.8 |
Result in associated companies | 0.0 | 0.4 | 1.3 |
Net financial items | 1.2 | -1.8 | -1.7 |
Pre-tax earnings, continuing operations | 5.7 | -1.4 | 2.5 |
Tax on H1 earnings, continuing operations | -1.9 | -1.7 | 1.3 |
Earnings H1, continuing operations | 3.8 | -3.1 | 3.8 |
Earnings H1, discontinued operations | 0.0 | -5.1 | -13.9 |
Earnings H1 | 3.8 | -8.2 | -10.1 |
Allocated thus: | |||
Shareholders of Columbus A/S | 3.3 | -9.1 | -11.2 |
Minority interests | 0.5 | 0.9 | 1.2 |
3.8 | -8.2 | -10.1 | |
Balance sheet | |||
Long-term assets | 272.5 | 236.9 | 254.7 |
Short-term assets | 256.4 | 277.8 | 235.7 |
Total assets | 528.8 | 514.7 | 490.4 |
Group shareholders' equity | 279.4 | 275.5 | 275.4 |
Minority interests | 4.1 | 7.2 | 7.6 |
Debt | 245.3 | 231.9 | 207.4 |
Total liabilities | 528.8 | 514.7 | 490.4 |
Cash flow | |||
Cash flow from continuing operations | -8.2 | 5.3 | 29.2 |
Cash flow from investments | -15.1 | -4.0 | -11.6 |
Cash flow from financing investments | 14.1 | -2.0 | -18.7 |
Cash flow from discontinued operations | 0 | -10.5 | -18.9 |
Total cash flow | -9.2 | -11.3 | -19.9 |
Key ratios | |||
Gross margin II | 3.7% | 3.0% | 3.3% |
Operating profit margin (EBIT margin) | 1.0% | 0.0% | 0.3% |
Equity ratio | 52.8% | 53.5% | 56.1% |
Return on equity | 1.2% | -3.3% | -4.1% |
Average number of shares, in thousands | 105,739 | 105,739 | 105,739 |
Net asset value per share (BV) | 2.64 | 2.61 | 2.60 |
Earnings per share (EPS) | 0.03 | -0.09 | -0.11 |
Cash flow per share | -0.08 | 0.05 | 0.28 |
Share price, end of period | 1.42 | 2.27 | 1.40 |
Headcount at the end of the period | 920 | 878 | 890 |
Headcount, average | 900 | 855 | 880 |
The key figures and ratios have been calculated in accordance with the Danish Society of Financial Analysts' "Recommendations and Key Figures 2010". |
Developments in H1/2012
Columbus' net revenues amounted to DKK 460.7M in H1/2012 (DKK 422.4M in H1/2011), corresponding to an increase of 9%. Adjusted for foreign currency translation revenues increased by 6%.
The Group's revenues primarily derive from sale of consultancy services, sale of software and maintenance subscriptions to Microsoft's business systems as well as sale of own software and subscriptions related to these.
Revenues | H1 | H1 | Development |
2012 | 2011 | 2011-2012 | |
DKKm | |||
Software | 94.9 | 73.4 | 29% |
Maintenance | 89.2 | 74.0 | 20% |
Consultancy | 269.7 | 267.2 | 1% |
Other | 6.9 | 7.7 | -10% |
Total | 460.7 | 422.4 | 9% |
Revenues from sale of software licenses increased to DKK 94.9M in H1/2012 (DKK 73.4M in H1/2011), corresponding to an increase of 29%. The increase in sale of software is primarily caused by the increase in the Russian subsidiary and by increases in the subsidiaries in the US, Denmark and Norway.
Revenues from sale of maintenance subscriptions increased to DKK 89.2M in H1/2012 (DKK 74.0M in H1/2011), corresponding to an increase of 20%. The increase in maintenance subscriptions is primarily caused by increases in Columbus Denmark and Columbus US.
Revenues from sale of consultancy services increased to DKK 269.7M in H1/2012 (DKK 267.2M in H1/2011), corresponding to an increase of 1%. Revenues from sale of consultancy services are primarily affected by a considerable decrease in the Danish subsidiaries, which is, however, partly compensated for by considerable increases in Columbus US, Columbus UK and Columbus Norway.
Staff costs increased to DKK 243.8M in H1/2012 (DKK 230.1M in H1/2011), corresponding to an increase of 6%. Adjusted for foreign currency translation, staff costs increased by 4%. The increase in staff costs is primarily caused by a corresponding increase of 5% in the number of employees. The acquisition of First Tech Direct in the US on 29 February 2012 is the main reason for the increase in the average number of employees. The increases in staff costs in Columbus Norway and Columbus UK are caused by increases in consultancy services. Staff costs are reduced in Columbus Denmark due to a declining sale of consultancy services. The reduction in staff costs in Columbus Denmark is, however, less than the decline in consultancy services revenues. Staff costs in the Parent Company have also been reduced considerably compared to H1/2011 due to cost adjustments and termination of strategic projects by the end of 2011.
Other external costs were reduced to DKK 67.1M in H1/2012 (DKK 70.1M in H1/2011), corresponding to a decrease of 4%. Adjusted for foreign currency translation other external costs were reduced by 6%. The reduction of other external costs is a consequence of the termination of strategic projects by the end of 2011 as well as considerable cost reductions in the Parent Company.
Revenues | EBITDA | Average headcount | |||||
(DKKm) | (DKKm) | ||||||
Group | H1 | H1 | H1 | H1 | H1 | H1 | |
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | ||
To-Increase | 18.2 | 19.3 | 7.8 | 4.8 | 43 | 45 | |
Nordic region | 193.5 | 195.2 | 5.8 | 14.2 | 283 | 292 | |
Western Europe | 64.5 | 56.2 | 8.5 | 7.6 | 113 | 101 | |
Eastern Europe | 98.0 | 90.4 | 3.5 | 3.4 | 321 | 318 | |
North America | 88.5 | 61.2 | 8.8 | 2.5 | 129 | 86 | |
Parent company | -1.9 | 0.1 | -17.1 | -19.6 | 11 | 16 | |
Total | 460.7 | 422.4 | 17.2 | 12.9 | 900 | 855 |
The Group's earnings before depreciation (EBITDA) increased to DKK 17.2M in H1/2012 (DKK 12.9M in H1/2011), corresponding to an increase of 34%. Adjusted for foreign currency translation EBITDA increased by 21%. The development is positively affected by the results in To-Increase and the companies in Britain, US and Russia. Columbus Denmark, Columbus Norway and Columbus Poland experienced a negative development in EBITDA in 2012 compared to 2011.
The Group's total balance sheet as at 30 June 2012 amounted to DKK 528.8M (DKK 514.7M as at 30 June 2011), corresponding to an increase of 3%.
As at 30 June 2012 the Group's development projects amounted to DKK 54.2M (DKK 45.5M as at 30 June 2011), corresponding to an increase of 19%.
As at 30 June 2012 the Group's trade receivables amounted to DKK 167.6M (DKK 168.9M as at 30 June 2011), corresponding to a decrease of 1%. Compared to H1/2011 the development in accounts receivable is considerably affected by the acquisition of the subsidiary First Tech Direct and the sale of the subsidiaries in France and Spain. Furthermore, the average credit period has been reduced considerably due to the management's continuing focus on collection of outstanding accounts receivable.
As at 30 June 2012 the Group's contract work in progress amounted to net DKK 21.0M (DKK 22.7M as at 30 June 2011), corresponding to a decrease of 7%. This is a continuing positive development caused by a constant focus on continuous invoicing of work performed.
The total equity as at 30 June 2012 amounted to DKK 283.5M (DKK 282.7M as at 30 June 2011). The equity ratio decreased marginally to 52.8% as at 30 June 2012 (53.5% as at 30 June 2011).
Cash flow from the Group's operating activities amounted to DKK -8.2M in H1/2012 (DKK 5.3M in H1/2011). The cash flow is especially affected by the decline from a positive net working capital of DKK 1.3M in H1/2011 to DKK -14.3M in H1/2012. The increase in the net working capital is primarily caused by an increase in accounts receivable. Accounts receivable have increased due to a considerable progress in revenues in May and June 2012 compared to November and December 2011. Accounts receivable have been reduced due to a reduction in the average credit period.
In this interim report tax has been recognized as DKK 1.9M as a consequence of a positive taxable income primarily in Britain and the US.
Segment developments
To-Increase
To-Increase | H1 | H1 | Development |
Revenues | 2012 | 2011 | 2011-2012 |
DKKm | |||
Software | 9.3 | 9.4 | -1% |
Maintenance | 6.3 | 6.6 | -5% |
Consultancy | 2.4 | 3.2 | -23% |
Other | 0.1 | 0.2 | -22% |
Total | 18.2 | 19.3 | -6% |
Revenues in the Group's software company, To-Increase, decreased to DKK 18.2M in H1/2012 (DKK 19.3M in H1/2011), corresponding to a decrease of 5%. Software revenues in H1/2012 are positively affected by revenue growth in the company's existing products. The development in software revenues is negatively affected by the sale of a non-strategic product in H1/2011. The external consultancy revenues are reduced due to increased time spent on sales training in affiliated companies. This is a natural consequence of the increased focus on sale of own software.
EBITDA in To-Increase increased to DKK 7.8M in H1/2012 (DKK 4.8M in H1/2011), corresponding to an increase of 63%. EBITDA is positively affected by the increased revenues from the company's existing products as well as a general cost reduction in the company.
The company accounted for 4% of the Group's total revenues in H1/2012 (5% in H1/2011).
Nordic region
Nordic region | H1 | H1 | Development |
Revenues | 2012 | 2011 | 2011-2012 |
DKKm | |||
Software | 21.5 | 16.4 | 31% |
Maintenance | 34.9 | 27.1 | 29% |
Consultancy | 134.9 | 149.4 | -10% |
Other | 2.3 | 2.3 | 0% |
Total | 193.5 | 195.2 | -1% |
Revenues in the Nordic region decreased to DKK 193.5M in H1/2012 (DKK 195.2M in H1/2011), corresponding to a decrease of 1%. Revenues are positively affected by a satisfactory revenue growth in Columbus Norway of 20%. However, revenues in the Danish companies decreased more than the growth in the Norwegian company. The decrease in revenues in the Danish companies are mainly caused by insufficient sales focus and challenges with a few projects. Renewed management focus on these issues has been established, and the decline in revenues in the Danish companies is expected to have been stemmed.
The region accounted for 42% of the Group's total revenues in H1/2012 (46% in H1/2011).
EBITDA for the region decreased to DKK 5.8M in H1/2012 (DKK 14.2M in H1/2011), corresponding to a decrease of 59%.
Western Europe
Western Europe | H1 | H1 | Development |
Revenues | 2012 | 2011 | 2011-2012 |
DKKm | |||
Software | 11.1 | 12.2 | -9% |
Maintenance | 9.9 | 8.3 | 19% |
Consultancy | 41.9 | 34.8 | 20% |
Other | 1.7 | 1.0 | 72% |
Total | 64.5 | 56.2 | 15% |
Revenues in Western Europe increased to DKK 64.5M in H1/2012 (DKK 56.2M in H1/2011), corresponding to an increase of 15%. The increase is mainly driven by the British subsidiary which realizes a revenue growth of 26%. The growth is to some extent dilluted by a decline in revenues in the Dutch subsidiary.
The region accounted for 14% of the Group's total revenues in H1/2012 (13% in H1/2011).
The region's EBITDA increased to DKK 8.5M in H1/2012 (DKK 7.6M in H1/2011), corresponding to an increase of 12%.
Eastern Europe
Eastern Europe | H1 | H1 | Development |
Revenues | 2012 | 2011 | 2011-2012 |
DKKm | |||
Software | 35.7 | 23.7 | 50% |
Maintenance | 16.2 | 17.2 | -6% |
Consultancy | 44.5 | 47.6 | -6% |
Other | 1.5 | 1.9 | -20% |
Total | 98.0 | 90.4 | 8% |
Revenues in Eastern Europe increased to DKK 98.0M in H1/2012 (DKK 90.4M in H1/2011), corresponding to an increase of 8%.
The Russian subsidiary is the main reason for the revenue growth in the region. Revenues in the Russian subsidiary increased to DKK 60.8M in H1/2012 (DKK 52.3M in H1/2011), corresponding to an increase of 16%. Adjusted for foreign currency translation, revenues in the Russian subsidiary increased by 15%.
The Baltic countries realized revenues of DKK 30.0M in H1/2012 (DKK 29.4M in H1/2011), corresponding to an increase of 2%.
The region accounted for 21% of the Group's total revenues in H1/2012 (21% in H1/2011).
The region's EBITDA increased to DKK 3.5M in H1/2012 (DKK 3.4M in H1/2011), corresponding to an increase of 3%.
EBITDA in the Russian subsidiary increased to DKK 3.0M in H1/2012 (DKK 1.9M in H1/2011), corresponding to an increase of 62%. Adjusted for foreign currency translation, EBITDA in the Russian subsidiary increased by 60%.
EBITDA in the Polish subsidiary amounted to DKK -1.4M in H1/2012 (DKK -0.5M in H1/2011), corresponding to a decrease of 185%.
North America
North America | H1 | H1 | Development |
Revenues | 2012 | 2011 | 2011-2012 |
DKKm | |||
Software | 15.3 | 11.8 | 30% |
Maintenance | 21.9 | 14.9 | 47% |
Consultancy | 48.8 | 32.3 | 51% |
Other | 2.6 | 2.3 | 12% |
Total | 88.5 | 61.2 | 45% |
Revenues in North America increased to DKK 88.5M in H1/2012 (DKK 61.2M in H1/2011), corresponding to an increase of 45%. Adjusted for foreign currency translation revenues in the region increased by 30%. Revenues are considerably affected by the acquisition of First Tech Direct.
The region accounted for 19% of the Group's total revenues in H1/2012 (14% in H1/2011).
The region's EBITDA increased to DKK 8.8M in H1/2012 (DKK 2.5M in H1/2011), corresponding to an increase of 252%. Adjusted for foreign currency translation EBITDA for the region increased by 222%.
Liquidity status
Columbus held cash funds of DKK 37.8M as at 30 June 2012 (DKK 54.6M as at 30 June 2011). The cash funds are mainly placed in a number of foreign subsidiaries. Compared to last year, the Group's short-term debt to credit insititutions has been reduced to DKK 17.0M as at 30 June 2012 (DKK 17.7M as at 30 June 2011). With the present credit facilities, the Group has solid cash resources in the level of DKK 100M.
Uncertainty factors and significant risks
Determining the carrying amount of some assets and liabilities requires judgments, estimates and assumptions concerning future events. The judgments, estimates and assumptions made are based on historical experience and other factors, which management assesses to be liable, but which by their nature are associated with uncertainty and unpredictability. The assumptions may prove incomplete or incorrect, and unexpected events or circumstances may arise.
It may be necessary to change previous estimates as a result of changes to the assumptions on which the estimates were based or due to new information or subsequent events.
Estimates which are of material importance to the presentation of the accounts, are among other things applied to statement of impairment, goodwill and other long term assets as well as trade receivables, selling price of contract work in progress, valuation of deferred tax assets, deferred debt and contingent liabilities and assets, cf. detailed description in the Annual Report 2011.
The Company is also subject to risks and uncertainties which may lead to actual results differing from these estimates. Columbus' business risks are unchanged compared to the risks described in the Annual Report 2011.
Significant events after balance date
There have been no events since 30 June 2012 which could significantly affect the evaluation of the Group's financial position and revenues.
Management Report
We have today considered and approved the interim financial report for the period 1 January 2012 — 30 June 2012 for Columbus A/S.
The interim financial report has been prepared in accordance with IAS 34 and additional Danish interim reporting requirements for listed companies. The interim financial report is unaudited and has not been reviewed by the Company's auditor.
We consider the accounting policies applied to be appropriate to the effect that the interim financial report gives a true and fair view of the Group's assets, liabilities and financial position at 30 June 2012, and of the results of the Group's operations and cash flows during the first half year of 2012.
We consider the management report to give a true and fair view of the development in the Group's business activities and financial situation, the financial result for the period and the Group's financial position as a whole together with a true and fair description of the significant risks and uncertainty factors which the Group faces.
Ballerup, 16 August 2012
Executive Board
Thomas Honoré
CEO
Board of Directors
Ib Kunøe Chairman |
Jørgen Cadovius Deputy Chairman |
Peter Skov Hansen | Sven Madsen | Ulla Krossteig |
Total income statement
DKK ´000 | Note | H1 2012 | H1 2011 | 2011 | |
Net revenue | 3 | 460,718 | 422,392 | 820,603 | |
External project costs | -132,802 | -109,697 | -206,567 | ||
Gross earnings | 327,916 | 312,695 | 614,035 | ||
Staff costs | -243,785 | -230,134 | -452,589 | ||
Other external costs | -67,111 | -70,139 | -135,359 | ||
Other operating income | 193 | 676 | 2,155 | ||
Other operating expense | 10 | -217 | -1,238 | ||
Earnings before depreciation (EBITDA) | 17,223 | 12,881 | 27,004 | ||
Depreciation | -12,752 | -12,816 | -24,171 | ||
Earnings before write down of goodwill (EBITA) | 4,472 | 65 | 2,833 | ||
Write down of goodwill | 0 | 0 | 0 | ||
Operating profit (EBIT) | 4,472 | 65 | 2,833 | ||
Results in associated companies | 0 | 413 | 1,305 | ||
Financial income | 5,579 | 4,139 | 8,179 | ||
Financial expense | -4,386 | -5,987 | -9,837 | ||
Pre-tax earnings, continuing operations | 5,665 | -1,370 | 2,480 | ||
Tax on H1 earnings, continuing operations | -1,882 | -1,694 | 1,308 | ||
H1 earnings, continuing operations | 3,782 | -3,065 | 3,788 | ||
H1 earnings, discontinued operations | 7 | 0 | -5,113 | -13,852 | |
H1 earnings | 3,782 | -8,178 | -10,064 | ||
Foreign exchange rate translation re. subsidiaries | 655 | -3,212 | -547 | ||
Other total income | 655 | -3,212 | -547 | ||
Total recognized income for the period | 4,437 | -11,390 | -10,611 | ||
Allocation of the result for the period: | |||||
Shareholders of Columbus A/S | 3,247 | -9,103 | -11,248 | ||
Minority interests | 535 | 925 | 1,185 | ||
3,782 | -8,178 | -10,064 | |||
Allocation of other total income: | |||||
Shareholders of Columbus A/S | 3,796 | -12,378 | -12,042 | ||
Minority interests | 641 | 988 | 1,431 | ||
4,437 | -11,390 | -10,611 | |||
Earnings per share (EPS) of DKK 1.25 | 0.03 | -0.09 | -0.11 | ||
Earnings per share, diluted (EPS-D) of DKK 1.25 | 0.03 | -0.09 | -0.11 |
Assets
DKK ´000 | Note | H1 2012 | H1 2011 | 2011 | |
Goodwill | 177,318 | 155,744 | 156,286 | ||
Royalties | 3,444 | 1,998 | 5,035 | ||
Development projects finalized | 37,982 | 40,852 | 45,824 | ||
Development projects in progress | 16,261 | 4,662 | 8,537 | ||
Total intangible assets | 235,005 | 203,257 | 215,683 | ||
Leasehold improvement | 947 | 192 | 1,101 | ||
Plant and operating equipment | 7,546 | 7,904 | 7,903 | ||
Total tangible assets | 8,494 | 8,096 | 9,004 | ||
Holdings in associated companies | 2,363 | 1,565 | 2,363 | ||
Total financial assets | 2,363 | 1,565 | 2,363 | ||
Deferred tax assets | 26,596 | 23,988 | 27,682 | ||
Total long-term assets | 272,458 | 236,905 | 254,732 | ||
Inventories | 942 | 641 | 2,035 | ||
Trade receivable | 5 | 167,602 | 168,919 | 153,632 | |
Contract work in progress | 6 | 21,037 | 22,733 | 15,809 | |
Corporation tax | 7,098 | 7,140 | 2,579 | ||
Other receivables | 10,845 | 14,783 | 10,070 | ||
Accruals | 11,002 | 8,903 | 5,481 | ||
Total receivables | 217,585 | 222,477 | 187,571 | ||
Cash | 37,826 | 54,639 | 46,086 | ||
Total short-term assets | 256,353 | 277,757 | 235,692 | ||
Total assets | 528,810 | 514,662 | 490,423 |
Liabilities
DKK ´000 | H1 2012 | H1 2011 | 2011 | ||
Equity | |||||
Share capital | 132,174 | 132,174 | 132,174 | ||
Reserves on foreign currency translation | -7,704 | -10,733 | -8,252 | ||
Retained profit | 154,899 | 154,105 | 151,430 | ||
Parent Company shareholders' equity | 279,369 | 275,546 | 275,352 | ||
Minority interests' equity | 4,123 | 7,186 | 7,642 | ||
Total equity | 283,492 | 282,732 | 282,993 | ||
Deferred tax | 434 | 433 | 432 | ||
Provisions | 5,417 | 0 | 1,415 | ||
Credit institutions | 0 | 47 | 0 | ||
Financial leasing obligations | 58 | 0 | 60 | ||
Other debt | 1,270 | 1,270 | 1,270 | ||
Total long-term debt | 7,180 | 1,750 | 3,177 | ||
Credit institutions | 17,048 | 17,670 | 2,828 | ||
Financial leasing obligations | 174 | 1,436 | 155 | ||
Client prepayments | 22,659 | 22,669 | 22,853 | ||
Trade accounts payable | 68,348 | 53,678 | 71,315 | ||
Corporation tax | 7,758 | 14,102 | 4,587 | ||
Other debt | 104,548 | 116,869 | 99,205 | ||
Accruals | 17,602 | 3,757 | 3,310 | ||
Total short-term debt | 238,137 | 230,181 | 204,253 | ||
Total debt | 245,317 | 231,930 | 207,430 | ||
Total liabilities | 528,810 | 514,662 | 490,423 |
Consolidated Statement of Changes in Equity
DKK ´000 | |||||
H1 2012 | Share capital |
Reserves on foreign currency translation | Retained profit | Minority interests | Equity |
Balance at 1 January 2012 | 132,174 | -8,252 | 151,430 | 7,642 | 282,993 |
Result for the period | 0 | 0 | 3,247 | 535 | 3,782 |
Other total income (foreign exchange rate adjustment — foreign companies) | 0 | 548 | 0 | 106 | 655 |
Total recognized income for the period | 0 | 548 | 3,247 | 641 | 4,437 |
Incentive scheme | 0 | 0 | 221 | 0 | 221 |
Payment of dividends | 0 | 0 | 0 | -4,160 | -4,160 |
Balance at 30 June 2012 | 132,174 | -7,704 | 154,899 | 4,123 | 283,492 |
H1 2011 | |||||
Balance at 1 January 2011 | 132,174 | -7,458 | 163,131 | 12,176 | 300,023 |
Result for the period | 0 | 0 | -9,103 | 925 | -8,178 |
Other total income (foreign exchange rate adjustment — foreign companies) | 0 | -3,274 | 0 | 62 | -3,212 |
Total recognized income for the period | 0 | -3,274 | -9,104 | 988 | -11,390 |
Incentive scheme | 0 | 0 | 79 | 0 | 79 |
Disposal of minority interests | 0 | 0 | 0 | -768 | -768 |
Payment of dividends | 0 | 0 | 0 | -5,210 | -5,210 |
Balance at 30 June 2011 | 132,174 | -10,733 | 154,105 | 7,186 | 282,732 |
2011 | |||||
Balance at 1 January 2011 | 132,174 | -7,458 | 163,131 | 12,176 | 300,023 |
Result for the period | 0 | 0 | -11,248 | 1,185 | -10,064 |
Other total income (foreign exchange rate adjustment — foreign companies) | 0 | -794 | 0 | 247 | -547 |
Total recognized income for the period | 0 | -794 | -11,248 | 1,431 | -10,611 |
Incentive scheme | 0 | 0 | 314 | 0 | 314 |
Acquisition of minority interests | 0 | 0 | -767 | -260 | -1,027 |
Payment of dividends | 0 | 0 | 0 | -5,706 | -5,706 |
Balance at 31 December 2011 | 132,174 | -8,252 | 151,430 | 7,642 | 282,993 |
Consolidated Cash Flow Statement
DKK ´000 | H1 2012 | H1 2011 | 2011 |
Result for the period (EBIT) | 4,472 | 65 | 2,833 |
Depreciations and write downs | 12,752 | 12,816 | 24,171 |
Transferred share based payment | 221 | 79 | 314 |
Net adjustments of development projects | -10,285 | -8,366 | -24,972 |
Changes in net working capital | -14,334 | 1,301 | 32,933 |
Cash flow from primary activities | -7,174 | 5,895 | 35,278 |
Interest received, etc. | 5,579 | 4,139 | 8,179 |
Interest paid, etc. | -4,386 | -5,987 | -9,837 |
Corporation tax paid | -2,210 | 1,207 | -4,399 |
Cash flow from operating activities | -8,191 | 5,254 | 29,222 |
Acquisition of tangible assets | -1,515 | -2,930 | -7144 |
Acquisition of intangible assets | 0 | -340 | -3,588 |
Disposal of tangible assets | 35 | 35 | 113 |
Acquisition of associated companies | -13,603 | 0 | 0 |
Disposal of associated companies | 0 | 0 | -196 |
Acquisition of minority interests | 0 | -768 | -767 |
Cash flow from investing activities | -15,083 | -4,003 | -11,582 |
Overdraft facilities and financial leasing | 14,237 | 3,210 | -12,949 |
Dividends paid to minority shareholders | -136 | -5,210 | -5,706 |
Cash flow from financing activities | 14,101 | -2,001 | -18,655 |
Cash flow from continuing operations | -9,173 | -750 | -1,016 |
Cash flow from discontinued operations | 0 | -10,521 | -18,913 |
Cash funds at the beginning of the year | 46,086 | 68,447 | 68,447 |
Exchange rate adjustments | 913 | -2,537 | -2,434 |
Cash funds at the end of the period | 37,826 | 54,639 | 46,086 |
Note 1: Accounting policies
The consolidated interim financial report is prepared in accordance with IAS 34, Presentation of Interim Financial Reporting, as approved by the EU, and additional Danish disclosure requirements for interim financial reports of listed companies. No interim report has been prepared for the Parent Company. The interim financial report is presented in Danish kroner (DKK), which is the Parent Company's functional currency.
The accounting policies applied in the interim financial report are prepared in accordance with International Financial Reporting Standards, as approved by the EU, and additional Danish disclosure requirements for interim financial reports of listed companies. For more information on the accounting policies, we refer to our Annual Report for 2011.
Note 2: Segment data
The Group presents segment data according to IFRS 8, Operating Segments.
In order to support decisions about allocation of resources and assessment of performance of the segments, the Group's internal reporting to the Board of Directors of the Parent Company is based on the following grouping of operating segments:
Strategic business areas | Description | Geographical segment |
ISV (Independent Software Vendor) | Development and sale of own ERP software products to resellers and strategic partners | No specific area |
VAR (Value Added Resellers) | Sale and implementation of standard ERP software products to end users | Nordic region Western Europe Eastern Europe North America |
H1 2012 | ISV | VAR | Parent company | Total |
Gross revenue | 26,860 | 454,794 | -504 | 481,150 |
Intercompany revenue | -8,686 | -10,381 | -1,364 | -20,432 |
Net revenue | 18,174 | 444,413 | -1,868 | 460,718 |
Gross earnings | 22,479 | 307,998 | -2,561 | 327,916 |
Earnings before depreciation (EBITDA) | 7,777 | 26,537 | -17,091 | 17,223 |
Operating result (EBIT) | 506 | 21,844 | -17,878 | 4,472 |
Results in associated companies | 0 | 0 | 0 | 0 |
Pre-tax earnings | -574 | 9,811 | -3,573 | 5,665 |
Result for the period | -793 | 8,148 | -3,573 | 3,782 |
Segment assets | 101,948 | 336,860 | 90,003 | 528,810 |
Segment liabilities | 57,760 | 233,303 | -45,745 | 245,317 |
Capital investments | 8,256 | 1,224 | 399 | 9,879 |
Depreciation | -7,271 | -4,693 | -788 | -12,752 |
Amortization | 0 | 0 | 0 | 0 |
Holdings in associated companies | 0 | 0 | 2,363 | 2,363 |
Average number of employees | 43 | 846 | 11 | 900 |
Note 2: Segment data, continued
H1 2011 | ISV | VAR | Parent company | Total |
Gross revenue | 25,181 | 415,887 | 373 | 441,441 |
Intercompany revenue | -5,859 | -12,929 | -261 | -19,049 |
Net revenue | 19,323 | 402,957 | 112 | 422,392 |
Gross earnings | 18,424 | 293,996 | 275 | 312,695 |
Earnings before depreciation (EBITDA) | 4,764 | 27,679 | -19,561 | 12,881 |
Operating profit (EBIT) | -2,288 | 22,268 | -19,915 | 65 |
Results in associated companies | 0 | 0 | 413 | 413 |
Pre-tax earnings | -3,424 | 10,583 | -8,530 | -1,370 |
Result for the period, continuing operations | -3,413 | 10,561 | -10,214 | -3,065 |
Segment assets | 86,464 | 314,590 | 113,609 | 514,662 |
Segment liabilities | 41,237 | 218,335 | -27,642 | 231,930 |
Capital investments | 9,989 | 3,481 | 0 | 13,471 |
Depreciation | -7,052 | -5,411 | -354 | -12,816 |
Amortization | 0 | 0 | 0 | 0 |
Holdings in associated companies | 0 | 0 | 1,565 | 1,565 |
Average number of employees | 45 | 796 | 16 | 855 |
2011 | ISV | VAR | Parent company | Total |
Gross revenue | 43,986 | 820,601 | 1,160 | 865,747 |
Intercompany revenue | -12,282 | -32,862 | 0 | -45,144 |
Net revenue | 31,704 | 787,739 | 1,160 | 820,603 |
Gross earnings | 26,861 | 584,496 | 2,678 | 614,035 |
Earnings before depreciation (EBITDA) | 11,260 | 54,151 | -38,407 | 27,004 |
Operating profit (EBIT) | -1,373 | 43,370 | -39,163 | 2,833 |
Results in associated companies | 0 | 94 | 1,211 | 1,305 |
Pre-tax earnings | -2,130 | 44,598 | -39,988 | 2,480 |
Result for the period | -1,063 | 43,447 | -38,596 | 3,788 |
Segment assets | 89,831 | 300,420 | 100,172 | 490,423 |
Segment liabilities | 29,209 | 152,509 | 25,712 | 207,430 |
Capital investments | 25,404 | 6,002 | 4,299 | 35,705 |
Depreciation | -12,633 | -10,780 | -757 | -24,171 |
Holdings in associated companies | 0 | 0 | 2,363 | 2,363 |
Average number of employees | 47 | 817 | 16 | 880 |
Note 3: Net revenue
DKK ´000 | H1 2012 | H1 2011 | 2011 | |
Sale of products: | ||||
Software licenses | 94,934 | 73,425 | 139,470 | |
Software subscriptions | 89,173 | 74,012 | 149,997 | |
Other | 271 | 457 | 918 | |
Total sale of products | 184,378 | 147,894 | 290,384 | |
Sale of services: | ||||
Support | 9,704 | 6,386 | 11,272 | |
Sales value of finished projects | 244,747 | 257,387 | 511,609 | |
Change in contract work in progress | 21,889 | 10,726 | 7,338 | |
Total sale of services | 276,340 | 274,499 | 530,219 | |
Total net sales | 460,718 | 422,392 | 820,603 | |
Contract work in progress at beginning of the period | -72,930 | -65,592 | -65,592 | |
Contract work in progress at end of the period | 94,819 | 76,318 | 72,930 | |
Total change in contract work in progress | 21,889 | 10,726 | 7,338 |
Note 4: Incentive Scheme
The CEO of the company, the Board of Directors, Senior Executives and other employees have been been granted an incentive scheme containing a share warrant scheme. The share warrant scheme is granted at the market share price. The share warrant scheme is conditional on the employment period. The share warrant schemes will not be adjusted for subsequent capital increases.
On the basis of a Black & Scholes' calculation, the scheme has a total forecast market value of up to DKK 2.0M, that will be expended in 2012, 2013 and 2014.
Specification of outstanding warrants | Number of warrants | Exercise rate per warrant |
||
DKK '000 | H1 2012 | H1 2011 | H1 2012 | H1 2011 |
Outstanding at the beginning of the period | 1,300,000 | 666,666 | 0 | 0 |
Granted during the period, 1 May 2011 | 0 | 1,300,000 | 2.45 | 2.45 |
Granted during the period, 20 January 2012 | 999,000 | 0 | 1.43 | 0 |
Granted during the period, 23 May 2012 | 3,870,000 | 0 | 1.48 | 0 |
Lost due to termination of employment | 0 | 666,666 | 0 | 0 |
Used during the period | 0 | 0 | 0 | 0 |
Expired during the period | 0 | 0 | 0 | 0 |
Annulled during the period | 0 | 0 | 0 | 0 |
Outstanding at the end of the period | 6,160,000 | 1,300,000 | 1.68 | 2.45 |
Note 5: Trade Receivable
DKK ´000 | H1 2012 | H1 2011 | 2011 | |
Receivables (gross) at 30 June | 173,283 | 186,196 | 161,400 | |
Allowance for doubtful debts at 1 January | 7,769 | 15,306 | 15,306 | |
Change in allowance for doubtful debts during the period | 3,023 | 4,500 | 1,154 | |
Loss realized during the period | -5,111 | -2,529 | -8,691 | |
Allowance for doubtful debts at 30 June | 5,681 | 17,277 | 7,769 | |
Balance at 30 June | 167,602 | 168,919 | 153,632 |
Direct depreciation of receivables is performed if the value, based on an individual estimate of the individual accounts receivable's ability to pay, is reduced, e.g. in the event of suspension of payments, bankruptcy or the like.
Note 6: Contract Work in Progress
DKK ´000 | H1 2012 | H1 2011 | 2011 | |
Contract work in progress | 94,819 | 96,189 | 72,930 | |
On account billing and prepayments | -78,550 | -78,294 | -61,588 | |
16,269 | 17,896 | 11,342 | ||
The net value is included in the balance as follows: | ||||
Contract work in progress (assets) | 21,037 | 22,733 | 15,809 | |
Client prepayments (liabilities) | -4,768 | -4,837 | -4,466 | |
16,269 | 17,896 | 11,342 |
Note 7: Discontinued Operations
On 15 December 2011 Columbus entered into an agreemeent with Prodware SA about sale of the subsidiaries Columbus IT Partner France SAS and Columbus IT Partner España S.L. The sale was performed with effect from 10 November 2011, and subsequently control of the companies was transferred to Prodware SA. The sales price amounted to DKK 1.9M.
DKK ´000 | H1 2012 | H1 2011 | 2011 | |
Operating profit for the period up untill transfer of control | 0 | -5,074 | -23,773 | |
Tax on earnings for the period | 0 | -40 | -62 | |
Net profit from sale of discontinued operations | 0 | 0 | 9,983 | |
Net impact on the result for the period | 0 | -5,113 | -13,852 | |
Operating profit for the period up untill transfer of control can be specified as follows: | ||||
Net revenue | 0 | 33,278 | 39,637 | |
External project costs | 0 | -11,982 | -16,720 | |
Gross earnings | 0 | 21,295 | 22,917 | |
Staff costs | 0 | -18,643 | -33,467 | |
Other external costs | 0 | -6,753 | -12,141 | |
Other operating income | 0 | 343 | 311 | |
Other operating expense | 0 | -905 | -1,001 | |
Earnings before depreciation (EBITDA) | 0 | -4,664 | -23,381 | |
Depreciation | 0 | -164 | -263 | |
Earnings before write down of goodwill (EBITA) | 0 | -4,828 | -23,644 | |
Operating profit (EBIT) | 0 | -4,828 | -23,644 | |
Financial income | 0 | 56 | 86 | |
Financial expense | 0 | -302 | -214 | |
Pre-tax earnings | 0 | -5,074 | -23,773 | |
Tax on earnings for the period | 0 | -40 | -62 | |
Discontinued operations | 0 | -5,113 | -23,835 |
Note 7: Discontinued Operations, continued
DKK ´000 | H1 2012 | H1 2011 | 2011 | |
Impact of discontinued operations on the cash flow statement for the period: | ||||
Cash flow from operating activities | 0 | -10,394 | -18,366 | |
Cash flow from investing activities | 0 | -80 | -503 | |
Cash flow from financing activities | 0 | -48 | -44 | |
Cash flow from discontinued operations | 0 | -10,521 | -18,913 | |
The sale of the discontinued operations can be specified as follows: | ||||
Net asset value | 0 | 0 | -11,250 | |
Goodwill allocated to discontinued operations | 0 | 0 | 1,267 | |
-9,983 | ||||
Profit from sale | 0 | 0 | -9,983 | |
Adjusted sales price | 0 | 0 | 0 |
Note 8: Acquisition of associated companies
During H1 the Group acquired First Tech Direct, Detroit, US, a leading manufacturing consultancy.
DKK ´000 | First Tech Direct | |
Development projects in progress | 666 | |
Operating equipment and inventories | 325 | |
Total long-term assets | 991 | |
Trade receivable | 3,732 | |
Corporation tax | 3 | |
Other receivables | 40 | |
Cash | 1,036 | |
Total short-term assets | 4,810 | |
Client prepayments | 1,429 | |
Trade accounts payable | 1,200 | |
Other debt | 1,085 | |
Total short-term debt | 3,714 | |
Net assets acquired | 2,087 | |
Goodwill | 21,032 | |
Cash acquired, cf. above | 1,036 | |
Cash payment | 22,083 |