2011 Half-year Results DOCDATA N.V.: Growth Continues
WAALWIJK, The Netherlands, July 21, 2011 /PRNewswire/ --
- Strong Growth of Revenue and Profit in the First Half-year 2011 of e-commerce Service Company
- Few deliveries by IAI industrial systems in the first half-year 2011, in line with previous expectations
DOCDATA N.V. is well on course for 2011 and 2012. Both revenue and results show a strong development, predominantly by the e-commerce service company. Despite the fact that few deliveries have been realised by IAI industrial systems in the first half-year 2011, the underlying trend is good and we expect to realise the results in 2012 and further.
The e-commerce service company Docdata realised a substantial growth in revenue and the number of processed transactions in the first half of 2011. This is mainly due to the success of our clients in the Netherlands and Germany.
The permanent staff of the Group has further increased in the first half of 2011 from 813 employees (759 FTE) at the beginning of the year to 1,047 employees (1,011 FTE) at the end of the first half-year 2011.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: "After the extreme hectic year 2010 and the changes we have made in the management structures, we see the positive effects in 2011. By far most clients are very satisfied with the quality of our services and our organisation is able to achieve the current growth within the agreed service levels. The focus for the remainder of the year is on further increasing the efficiency and bringing in new customers and new orders."
Results and Financial position half-year 2011 (unaudited)
Half-year ended at
(in millions, except percentage
figures and per share data)
30 June 2011 30 June 2010
EUR % EUR %
Revenue
E-commerce service company Docdata 53.6 90.9 35.7 77.6
Technology company IAI industrial
systems 5.4 9.1 10.3 22.4
Total 59.0 100.0 46.0 100.0
Gross profit
E-commerce service company Docdata 12.6 23.5 8.6 24.0
Technology company IAI industrial
systems 1.5 28.3 4.1 40.0
Total 14.1 24.0 12.7 27.6
Operating profit (EBIT)
E-commerce service company Docdata 3.0 5.7 0.4 1.0
Technology company IAI industrial
systems 0.5 9.3 2.8 27.2
Total 3.5 6.0 3.2 6.9
EBITA 4.1 7.0 3.6 7.7
EBITDA 5.8 9.8 4.6 10.1
Profit for the half-year 2.5 4.2 2.6 5.6
Basic earnings per share 0.38 0.38
Diluted earnings per share 0.36 0.37
Balance sheet total 50.2 50.2
Equity 29.2 26.6
Solvency ratio (Equity / Balance
sheet total) 58.2% 53.0%
E-commerce service company Docdata again realised a strong increase in the number of unique transactions; in the first half-year 2011 16.5 million unique transactions were processed compared to 12.7 million in the first half-year 2010 (increase: 30%). The combined revenue of the e-commerce services grew autonomous with almost € 15.5 million (+59%); in addition, revenue increased further with € 5.2 million resulting from the activities of the former Dohmen Solutions Group, acquired on 16 April 2010, which contributed only 2.5 months to revenue in the first half-year 2010. The total revenue of the e-commerce service company Docdata increased with € 17.9 million (+50%) to € 53.6 million.
For 2011 the focus is on continued growth of our e-fulfilment service in existing markets, mainly through the growth of existing clients. In October 2011 we expect to bring the new logistic centre in Waalwijk partly into operation, which is necessary to accommodate the growth of our clients in the high season. At the end of the first half-year 2012 we expect to have the logistic centre fully operational with a floor area of approximately 30,000 square meters. In October 2011 we will also bring a new warehouse of 10,000 square meters in Grobeeren (near Berlin) into operation. With this, the new buildings in Grobeeren are complete and we will use a total floor space of approximately 50,000 square meters for our clients.
The most important trend currently relevant for Docdata, is that of the cross border activities in Europe of both consumers and merchants. For this we have developed concepts that enable us to efficiently process both the outgoing order flow and the return shipments. Consumers can thus receive their orders with a high delivery performance and returns can be quickly handled. For our clients we check the return shipments and refurbish these for sale. In the second half of 2011 we will also explore other (large) geographical markets in Europe whether we need to have our own facilities to fulfil these services locally or to set this up through strategic partnerships.
The current risks for the e-commerce service company are mainly in terms of the strategic choice of clients to purchase certain services from external suppliers or not. In the event that a client is acquired, there is almost always a reconsideration of this position with the possibility of losing clients. Because of the rapid developments in the e-commerce market, our clients are in principle not willing to enter into long term contracts. Providing a very high quality service offers the best protection against this risk.
Technology company IAI industrial systems realised a revenue of € 5.4 million in the first half-year 2011, which is significantly behind the revenue of the comparable period in the peak year 2010 (first half-year 2010: € 10.3 million). The main cause was the lower level of orders, which was in line with previously announced expectations. As a result, the operating profit of IAI for the first half-year 2011 decreased to € 0.5 million, noting that the operating profit of € 2.8 million in the first half-year 2010 was exceptionally high due to one specific order. The order book of IAI at the end of June 2011 consists of orders with a revenue value of € 9.1 million, which for the major part will be delivered before the end of 2011 (order book per 31 December 2010: € 8.4 million). In addition, we also expect revenue from service, royalties and smaller systems.
Worldwide IAI industrial systems how has a good reputation in the market for the security personalisation of security documents, particularly for passports, ID cards, banknotes and other documents. Not only for end users of these products (the governments) but also for the integrators in this market, IAI aims at being a reliable partner. Integrators are parties that acquire large governmental assignments for which they need the equipment of IAI besides their own contribution.
IAI gives attention to continuous improvement and expansion of the product portfolio. One of the new system developments in the past year was the BMDesk, a small system that can personalise a passport manually. Recently, we realised a first order of more than 10 systems. This shows that our changed strategy, the proactive development of systems for the needs of the market, is beginning to bear fruit. In the first half-year 2011 IAI invested in research for various applications and in the automation for managing product data for a more efficient production.
In the Solar market IAI offers production systems for solar cells or solar panels. In the first half-year 2011 a production system was delivered to Solland Solar. This unique system was developed in close cooperation with the client who needed a new production tool: a system that solders contacts at the back of solar cells with laser energy.
This new type of solar cell, called the "back-contact cell", is used by Solland Solar in their Sunweb panels. In the Solar market it is expected that the back-contact type will gain market share, hence IAI will offer the developed system to other parties as well. IAI conducts various researches with the aim to provide new system developments and system deliveries for the Solar market. With this IAI preferably focuses on projects with an actual demand in the market and which can be realised in close cooperation with a client.
Major features of the first half-year 2011
Rrevenue of DOCDATA N.V. increased with € 13.0 million to € 59.0 million (+28%) in the first half-year 2011. In line with previously announced expectations, revenue of IAI industrial systems decreased with € 4.9 million (-/- 48%) predominantly due to less system deliveries. Docdata has realised with the commerce, payments and fulfilment services a revenue increase of € 20.7 million (+69%), of which € 15.5 million as autonomous revenue increase predominantly due to the increase in the number of transactions with more than 30% compared to last year. The activities of the former Dohmen Solutions Group contributed € 5.2 million more to revenue in the first half-year 2011 (+40%) than in the first half-year 2010, mainly due to the fact that these activities contributed only 2.5 months to revenue after the acquisition per 16 April 2010. Docdata media incurred a revenue decrease of € 2.7 million (-/- 48%) due to sale of all shares in docdata media GmbH per 21 July 2010, in combination with a further decline of the replication activities at the only remaining replication company of Docdata in Tilburg.
In the first half-year 2011 a higher gross profit of € 14.1 million has been realised compared to the € 12.7 million in the first half-year 2010 (+11%). The gross profit margin for the first half-year 2011 is 24.0% compared to 27.6% for the first half-year 2010, with a decrease of the gross profit margin for both lines of business. For Docdata this limited lower gross profit margin is mainly due to a larger share of recharged transport costs and higher costs for the procurement of corporate clothing for a client. For IAI industrial systems, the decrease of the gross profit margin is a direct consequence of the different size and composition of deliveries in both comparable periods, taking into account the delivery of the second part of the large order for decentralised personalisation systems for Bulgaria in the first half-year 2010.
In the first half-year 2011 an operating result before financing result (EBIT) of € 3.5 million has been realised compared to € 3.2 million in the first half-year 2010. The operating result of the technology company IAI industrial systems decreased with € 2.3 million mainly as a result of the delivery of less systems in the first half-year 2011. However, the operating result of the e-commerce service company Docdata increased significantly with € 2.7 million considering that the EBIT for the first half-year 2010 contained non-recurring costs of € 1.3 million under selling and administrative expenses for acquisition- and consultancy costs, start-up losses and restructuring costs after acquiring the business activities of the former Dohmen Solutions Group. In the first half-year 2011 an amount of € 0.2 million has been recognised for these type of costs. Without these non-recurring costs in both comparable periods, the (adjusted) EBIT has almost doubled from € 1.7 million in the first half-year 2010 to € 3.3 million in the first half-year 2011. For the second half-year 2011 we expect another € 0.2 as restructuring costs for these business activities.
The profit for the first half-year 2011 remained almost stable with € 2.5 million compared to the first half of 2010, as a combination of an improved EBIT with a net financing result that deteriorated with € 0.3 million (predominantly caused by a foreign currency exchange loss related to the British pound in the first half-year 2011 compared to a foreign currency exchange profit in the first half-year 2010) and an increased income tax expense of € 0.2 million.
DOCDATA N.V. has strengthened its strong financial position during the first half-year 2011, resulting in a solvency ratio of 58.2% per 30 June 2011 (31 December 2010: 49.3%). In relation to the Company's liquidity, DOCDATA N.V. has realised in the first half-year 2011 a cash flow from operating activities of € 1.9 million. Furthermore, cash was received in the first half-year 2011 from the exercise of share options in the amount of € 1.4 million, resulting in a total cash-in of € 3.3 million. In the first half-year 2011 the Group has invested a total amount of € 4.6 million, containing € 2.4 million for payment of dividend from the 2010 profit, € 1.8 million for capital expenditure in property, plant and equipment (mainly warehouse equipment in Waalwijk and Grobeeren) and € 0.3 million
for investments in intangibles (mainly IT development costs for the payments platform and development costs by IAI for new generation security systems). As a result, the cash surplus decreased with € 1.3 million to a net cash balance of € 4.5 million per 30 June 2011 (31 December 2010: € 5.8 million).
Outlook
The focus in 2011 will be kept on growth, both autonomous and through acquisitions. Acquisitions will mainly be aimed at further strengthening of our position in the markets in which we operate.
The focus of the e-commerce service company Docdata is on further development of our position in the Benelux, Germany and the UK. In addition, we will analyse in the second half-year of 2011 the possibilities to become active in other European markets. Based on our current client base, we expect for the second half-year of 2011 further growth with only a limited impact of non-recurring costs on profit, as was the case in the previous years 2009 and 2010.
The focus for the technology company IAI industrial systems remains on the realisation of orders worldwide in existing and specifically defined markets. Considering the order book level of IAI industrial systems as at 30 June 2011, combined with the length of the time between an order and the completion and delivery of systems at the client, we expect lower revenues and results for IAI industrial systems for the full year 2011 as well.
Strategy
As the current strategy 'Vision 2012: Flywheel to Growth' runs till 2012, the management of DOCDATA N.V. currently executes a strategic study together with an external party. All strategic options will be addressed and discussed extensively. The outcome will serve as input for the strategic route in the coming years and we expect to be able to present further announcements by the end of 2011.
Accounting policies
The consolidated financial statements of DOCDATA N.V. are prepared in accordance with the International Financial Reporting Standards as adopted by the European Union (hereafter IFRS). For an overview of the significant accounting policies under IFRS, please refer to the 2010 Annual Report that is available at the Company and can also be downloaded from the Company's corporate website, http://www.docdatanv.com. The interim financial report has been prepared in accordance with IAS 34 ('Interim Financial Reporting').
Audit
The financial information included in this interim report and its enclosures have not been audited by the external auditors.
Enclosure with financial information
For a detailed review of the 2011 half-year results please refer to the attached enclosure 'Interim Financial Information for the half-year ended 30 June 2011' with Appendix.
Meeting for financial press and analysts
Today, Thursday 21 July 2011, management of DOCDATA N.V. will discuss the 2011 halfyear results in a meeting for which both financial press and analysts have been invited, to be held at 10.30AM Amsterdam time in the Mercurius room of the Financieel Nieuwscentrum Beursplein 5 of NYSE Euronext Amsterdam (Beursplein 5, 1012 JW Amsterdam, telephone +31-20-5505505). After this meeting, the presentation shown to the financial press and analysts will be made available for downloading from the Company's corporate website, http://www.docdatanv.com.
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The listed DOCDATA N.V. exists of two lines of business:
Technology company IAI industrial systems (http://www.iai-industrial-systems.com ) is a high tech engineering company specialised in developing and building systems 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 solar cells and modules and processing of other materials and products.
E-commerce service company Docdata (http://www.docdata.com) is a European market leader with a strong basis in The Netherlands, Germany and the United Kingdom. Docdata offers a complete e-commerce service portfolio to clients, enabling them to be successful on the internet.
Responsibility Statement
Statement pursuant to article 5:25d section 2 sub c of the Dutch Financial Supervision Act ("Wet financieel toezicht", Wft)
The DOCDATA N.V. Management Board declares, that to the best of their knowledge:
1. the interim financial statements of DOCDATA N.V., as set out on pages 8 to 18 of this report, give a true and fair view of the assets, the liabilities and the financial position as at 30 June 2011 and the profit for the half-year ended 30 June 2011 of DOCDATA N.V. and its consolidated subsidiaries;
2. the interim report of DOCDATA N.V., as set out on pages 1 to 6 of this report, includes a true and fair review of the position as per 30 June 2011 and of the development and performance during the half-year ended 30 June 2011 of DOCDATA N.V. and the associated companies, of which the information is included in the interim financial statements. In addition, the interim report gives a true and fair review of the expected developments, investments and circumstances of which the development of revenue and profitability depend.
Waalwijk, 21 July 2011
The Management Board,
M.F.P.M. Alting von Geusau, CEO
M.E.T. Verstraeten, CFO
Interim Financial Information
The interim financial information is prepared in accordance with International Financial Reporting Standards as adopted by the European Union (hereafter "IFRS") and its interpretations adopted by the International Accounting Standards Board (IASB).
Revenue
Half-year ended
Half-year ended
(in thousands, except percentage 30 June 2010
figures) 30 June 2011
Revenue by line of business EUR % EUR %
E-commerce service company Docdata 53,608 90.9 35,666 77.6
Technology company IAI industrial
systems 5,374 9.1 10,323 22.4
Total 58,982 100.0 45,989 100.0
- Total combined revenue of the Docdata e-commerce services (commerce, payments and fulfilment) increased with € 20.7 million (+69%), including a negative foreign exchange effect of € 0.1 million. This combined revenue increased for € 15.5 million due to autonomous growth (+59%), while the activities of the former Dohmen Solutions Group, acquired per 16 April 2010, contributed € 5.2 million to this revenue increase (revenue contribution 2.5 months in the half-year ended 30 June 2010). Revenue of the media replication activities decreased with € 2.7 million in total, of which € 2.3 million due to the sale of all shares of docdata media GmbH on 21 July 2010; the other € 0.4 million of this decrease (-/-11%) was due to declining revenue from the media replication activities in Tilburg.
- IAI industrial systems' revenue decreased € 4.9 million (47.9%). The revenue for the half-year ended 30 June 2010 was much higher due to the delivery of the second part of the Bulgarian order (consisting of a number of decentralised personalisation systems). The revenue in the half-year ended 30 June 2011 was for a large part realised through the delivery, in accordance with IAI's planning, of security systems for Algeria and Ireland.
Gross profit
Half-year
ended
(in thousands, except percentage Half-year ended 30
figures) June 2011 30 June 2010
Gross profit (margin) by line of
business
(margin as % of revenue by line of
business) EUR % EUR %
E-commerce service company Docdata 12,616 23.6 8,563 24.0
Technology company IAI industrial
systems 1,519 28.8 4,126 40.0
Total 14,135 24.0 12,689 27.6
- The gross profit of the e-commerce service company Docdata increased with € 4.1 million (+47%). The combined gross profit of the e-commerce services contributed € 12.1 million compared to € 7.6 million in the half-year ended 30 June 2010, representing an increase of 59%, which is mainly the result of the growth in the number of transactions in the Netherlands and Germany. The somewhat lower gross profit margin is mainly caused by a higher revenue portion from recharged transport costs and higher purchased goods for a corporate fashion client.
- The gross profit of IAI industrial systems decreased with € 2.6 million (-/-63%) due to lower sales and a different sales mix compared to the half-year ended 30 June 2010 (also causing the decrease in gross profit margin). The systems' delivery of the second part of the Bulgarian order in the half-year ended 30 June 2010 had a major effect on the higher gross profit for the comparable figure.
Operating profit before financing result (EBIT)
Selling & Administrative expenses
Other operating income and expenses
Half-year ended Half-year ended
(in thousands, except percentage
figures) 30 June 2011 30 June 2010
Operating profit (margin) by line of
business
(margin as % of revenue by line of
business) EUR % EUR %
E-commerce service company Docdata 3,036 5.7 352 1.0
Technology company IAI industrial
systems 496 9.2 2,807 27.2
Total 3,532 6.0 3,159 6.9
Selling & Administrative expenses (as %
of revenue)
Selling expenses 3,081 5.2 2,681 5.8
Administrative expenses 7,535 12.8 6,876 15.0
Total 10,616 18.0 9,557 20.8
Selling & Administrative expenses by
line of business (as % of revenue by
line of business)
E-commerce service company Docdata 9,586 17.9 8,219 23.0
Technology company IAI industrial
systems 1,030 19.2 1,338 13.0
Total 10,616 18.0 9,557 20.8
Other operating income and expenses
(as % of revenue)
Other operating income 150 0.3 265 0.6
Other operating expenses (137) (0.3) (238) (0.5)
Net other operating expenses 13 - 27 0.1
- The operating profit of the e-commerce service company Docdata increased with € 2.7 million, resulting from a € 4.1 million higher gross profit and € 1.4 million higher selling and administrative expenses. Following the acquisition of the activities from the former Dohmen Solutions Group per 16 April 2010, restructuring costs and start-up losses were recorded resulting in a nonrecurring EBIT loss for an amount of € 1.3 million in the half-year ended 30 June 2010 (recognised both under selling and administrative expenses). In the half-year ended 30 June 2011 further restructuring costs were recorded for an amount of € 0.2 million. Excluding non-recurring expenses, EBIT has almost doubled from € 1.7 million to € 3.3 million in the half-year ended 30 June 2011.
- The operating profit of IAI industrial systems decreased with € 2.3 million. This decrease is the combined effect of a lower gross profit of € 2.6 million and decreased selling and administrative expenses of € 0.3 million. Selling and administrative expenses decreased mainly as a result of a lower contribution to allocated holding expenses, given the lower activity level.
Net financing income / (expenses)
Net financing expenses for the half-year ended 30 June 2011 amounted to € 152 thousand compared to net financing income of € 130 thousand for the half-year ended 30 June 2010. This decrease of € 0.3 million is predominantly caused by the foreign currency exchange result in the half-year ended 30 June 2011 (€ 0.1 million loss) compared to the half-year ended 30 June 2010 (€ 0.2 million profit) related to the British pound.
Income tax expense
DOCDATA's effective tax rate in the half-year ended 30 June 2011 was 27.1% with an income tax expense of € 0.9 million on a profit before income tax of € 3.4 million. In the half-year ended 30 June 2010, the profit before income tax amounted to € 3.3 million and the income tax expense amounted to € 0.7 million (effective tax rate: 22.3%).
The income tax expense of € 0.9 million in the half-year ended 30 June 2011 is the combined result of the following tax treatments of the results per country:
- In the Netherlands, income taxes are recorded at a corporate income tax rate of 25.0% on the taxable income for the Dutch fiscal entity as well as for the Dutch subsidiaries that are not part of this fiscal entity (2010: 25.5%).
- In the United Kingdom, income taxes are recorded against a corporate income tax rate of 27.0% (2010: 28.0%).
- In Germany, income taxes are recorded at a corporate income tax rate of in general between 26% and around 30% on taxable income for the German entities when and where applicable, depending on the actual region in Germany of their legal seat (e.g. Berlin, Munich or Münster region).
Liquidity and capital resources
The General Annual Meeting of Shareholders held on 15 June 2011 approved the proposal to distribute a dividend of € 0.35 per ordinary share outstanding (excluding own shares held by the Company), which had a decreasing impact of € 2.4 million on retained earnings within the equity of the Company in the half-year ended 30 June 2011.
In the half-year ended 30 June 2011, the Group realised net cash from operating activities of € 1.9 million. Furthermore, cash was received from the exercise of share options in the amount of € 1.4 million, resulting in a total cash-in of € 3.3 million for the half-year ended 30 June 2011. With these funds, the Group invested in the half-year ended 30 June 2011 a total amount of € 4.6 million, containing € 2.4 million for payment of the 2010 dividend, € 1.8 million in property, plant and equipment (mainly warehousing equipment in Waalwijk and Groβbeeren), and € 0.3 million in intangibles (IT development costs for the payments platform and development costs by IAI for new generation security systems). As a result, the net cash position of the Group has decreased with € 1.3 million to € 4.5 million per 30 June 2011 (31 December 2010: € 5.8 million). Furthermore, the Group has fully repaid in the half-year ended 30 June 2011 the € 4.0 million credit facility drawn with Commerzbank AG in 2010 and has increased the existing credit facility with Deutsche Bank Nederland N.V. from € 5.0 million to € 10.0 million.
In the half-year ended 30 June 2011 187,500 share options were exercised from the 2006, 2007 and 2008 series at an average exercise price of € 7.24 per share. The underlying shares have been delivered by the Company from the shares in stock. The proceeds of € 1.4 million have been credited to equity ('Reserve for own shares'). Per 30 June 2011, the Company had 156,642 own shares in stock (2.24%), which number is the same as the number of own shares currently owned by the Company per 21 July 2011. Per 30 June 2011 a total number of 167,250 share options are outstanding; 79,500 share options of the 2008 series (exercise price: € 6.83 per share) that are exercisable and 'in-the-money', and 87.750 share options of the 2009 series (exercise price: € 6.38 per share) that will vest on 29 May 2012. Furthermore, a total number of 70,539 Performance Shares are outstanding per 30 June 2011, which have been granted conditionally in 2010 (22,284 Performance Shares; vesting date: 14 May 2013) and 2011 (48,255 Performance Shares; vesting date: 17 June 2014).
Waalwijk, 21 July 2011
Consolidated Interim Financial Statements
1. Consolidated Balance Sheets
Balance sheets before appropriation of profit.
30 June 31 December
2011 2010
(in thousands) EUR EUR
Assets
Property, plant and equipment 10,576 10,431
Intangible assets 9,267 9,690
Investments in associates 117 62
Other investments 95 95
Trade and other receivables 200 200
Deferred tax assets 1,280 1,001
Total non-current assets 21,535 21,479
Inventories 6,330 5,436
Income tax receivables 44 407
Trade and other receivables 17,761 18,840
Cash and cash equivalents 4,490 9,790
Total current assets 28,625 34,473
Total assets 50,160 55,952
Equity
Share capital 700 700
Share premium 16,854 16,854
Translation reserves (813) (669)
Reserve for own shares (1,310) (2,810)
Retained earnings 10,942 9,474
Unappropriated profits 2,535 3,853
Total equity attributable to equity holders of
the parent 28,908 27,402
Non-controlling interest 286 156
Total equity 29,194 27,558
Liabilities
Interest-bearing loans and borrowings - -
Deferred tax liabilities 516 530
Total non-current liabilities 516 530
Bank overdrafts - 4,000
Interest-bearing loans and borrowings - 190
Income tax payable 1,122 453
Trade and other payables 19,053 22,781
Provisions 275 440
Total current liabilities 20,450 27,864
Total liabilities 20,966 28,394
Total equity and liabilities 50,160 55,952
2. Consolidated Income Statements
Half-year ended Half-year ended
30 June 2011 30 June 2010
(in thousands, except earnings per share
and average shares outstanding) EUR % EUR %
Revenue 58,982 100.0 45,989 100.0
Cost of sales (44,847) (76.0) (33,300) (72.4)
Gross profit 14,135 24.0 12,689 27.6
Other operating income 150 0.2 265 0.6
Selling expenses (3,081) (5.2) (2,681) (5.8)
Administrative expenses (7,535) (12.8) (6,876) (15.0)
Other operating expenses (137) (0.2) (238) (0.5)
Operating profit before financing result 3,532 6.0 3,159 6.9
Financial income 98 0.1 240 0.5
Financial expenses (250) (0.4) (110) (0.2)
Net financing income / (expenses) (152) (0.3) 130 0.3
Share of profits of associates 55 0.1 - -
Profit before income tax 3,435 5.8 3,289 7.2
Income tax expense (931) (1.6) (734) (1.6)
Profit for the period 2,504 4.2 2,555 5.6
Attributable to:
Equity holders of the parent 2,535 4.3 2,662 5.8
Non-controlling interest (31) (0.1) (107) (0.2)
Profit for the period 2,504 4.2 2,555 5.6
Weighted average number of shares
outstanding 6,728,000 6,649,000
Weighted average number of shares
(diluted) 7,000,000 7,000,000
Earnings per share
Basic earnings per share 0.38 0.38
Diluted earnings per share 0.36 0.37
3. Consolidated Statements of Cash Flows
Half-year Half-year
ended ended
30 June 2011 30 June 2010
(in thousands) EUR EUR
Cash flows from operating activities
Profit for the period 2,504 2,555
Adjustments for:
Depreciation and amortisation 2,231 1,490
Costs share options, performance shares and
delivered shares 141 73
Financial expenses 156 110
Financial income (4) (240)
Share of profits of associates (55) -
Income tax expense 931 734
Cash flows from operating activities before
changes in working capital and provisions 5,904 4,722
(Increase) / decrease in trade and other
receivables 986 777
(Increase) / decrease in inventories (894) 1,319
Increase / (decrease) in trade and other
payables (3,775) (2,132)
Increase / (decrease) in provisions and
employee benefits (165) (437)
Cash generated from the operations 2,056 4,249
Interest paid (159) (108)
Interest received 97 81
Income taxes received / (paid) (76) 1,199
Net cash from operating activities 1,918 5,421
Cash flows from investing activities
Acquisition of property, plant and equipment (1,800) (3,213)
Acquisition of intangible assets (342) (1,299)
Acquisition of subsidiaries - -
Acquisition of associates and other
investments - -
Proceeds from sale of property, plant and
equipment 11 6
Net cash from investing activities (2,131) (4,506)
Cash flows from financing activities
Proceeds from exercise of share options 1,359 13
Repayment of bank overdrafts (4,000) -
Dividends paid (2,385) (3,658)
Repayment of interest-bearing loans and other
borrowings (29) -
Proceeds from bank overdrafts - 4,400
Net cash from financing activities (5,055) 755
Net increase / (decrease) in cash and cash
equivalents (5,268) 1,670
Cash and cash equivalents at the beginning of
the period 9,790 6,147
Effect of exchange rate fluctuations on cash
held (32) (93)
Cash and cash equivalents at the end of the
period 4,490 7,724
4. Consolidated Statements of Shareholders' Equity
Share Share Retained
capital premium Reserves earnings
(in thousands) EUR EUR EUR EUR
(Note 1) (Note 2)
Equity
Statement 2010
Balance at 1
January 2010 700 16,854 (3,970) 13,720
Dividend
distribution - - - (3,658)
Exercised share
options - - 13 -
Costs share
options - - 73 -
Realised
translation
differences - - 270 (270)
Unrealised
exchange rate
results - - 243 -
Profit for the
period - - - 2,662
Balance at 30
June 2010 700 16,854 (3,371) 12,454
Balance at 1
July 2010 700 16,854 (3,371) 12,454
Costs share
options - - 44 -
Unrealised
exchange rate
results - - (152) -
Acquisition of
non-controlling
interest - - - (318)
Profit for the
period - - - 1,191
Balance at 31
December 2010 700 16,854 (3,479) 13,327
Equity
Statement 2011
Balance at 1
January 2011 700 16,854 (3,479) 13,327
Dividend
distribution - - - (2,385)
Exercised share
options - - 1,359 -
Costs share
options - - 141 -
Unrealised
exchange rate
results - - (144) -
Transfer
minority
shareholder
loan in share
premium
non-controlling
interest - - - -
Profit for the
period - - - 2,535
Balance at 30
June 2011 700 16,854 (2,123) 13,477
(table continued)
Total equity
attributable
to equity
holders of Non-controlling Total
the parent interest equity
(in thousands) EUR EUR EUR
Equity
Statement 2010
Balance at 1
January 2010 27,304 107 27,411
Dividend
distribution (3,658) - (3,658)
Exercised share
options 13 - 13
Costs share
options 73 - 73
Realised
translation
differences - - -
Unrealised
exchange rate
results 243 - 243
Profit for the
period 2,662 (107) 2,555
Balance at 30
June 2010 26,637 - 26,637
Balance at 1
July 2010 26,637 - 26,637
Costs share
options 44 - 44
Unrealised
exchange rate
results (152) - (152)
Acquisition of
non-controlling
interest (318) 92 (226)
Profit for the
period 1,191 64 1,255
Balance at 31
December 2010 27,402 156 27,558
Equity
Statement 2011
Balance at 1
January 2011 27,402 156 27,558
Dividend
distribution (2,385) - (2,385)
Exercised share
options 1,359 - 1,359
Costs share
options 141 - 141
Unrealised
exchange rate
results (144) - (144)
Transfer
minority
shareholder
loan in share
premium
non-controlling
interest - 161 161
Profit for the
period 2,535 (31) 2,504
Balance at 30
June 2011 28,908 286 29,194
Note 1
Reserves in the Consolidated Statement of Shareholders' Equity consists of the balances for Translation reserves and Reserve for own shares.
Note 2
Retained earnings in the Consolidated Statement of Shareholders' Equity consists of the balances for Retained earnings (from prior years) and Unappropriated profits, equal to the Profit for the period for all disclosed half-year periods, ended 30 June 2010, 31 December 2010 and 30 June 2011 respectively.
5. Consolidated Statements of recognised Income and Expense
Half-year Half-year
2011 2010
(in thousands) EUR EUR
Foreign exchange translation differences,
net of tax (144) 243
Income / (Expense) recognised directly in
equity (144) 243
Profit for the period 2,504 2,555
Total recognised income and expense for the
period 2,360 2,798
Attributable to:
Equity holders of the parent 2,391 2,905
Non-controlling interest (31) (107)
Total recognised income and expense for the
period 2,360 2,798
6. Notes to the Consolidated Interim Financial Statements
6.1 Reporting entity
DOCDATA N.V. (referred to as "DOCDATA" or the "Company") is a company domiciled in Waalwijk, the Netherlands. The consolidated interim financial statements of DOCDATA N.V. as at and for the half-year ended 30 June 2011 comprise DOCDATA N.V. and its subsidiaries (together referred to as the "Group") and the Group's interest in associates and jointly controlled entities.
The consolidated financial statements of the Group as at and for the year ended 31 December 2010 are available upon request from the Company's registered office at Energieweg 2, 5145 NW in Waalwijk, the Netherlands, or at the Company's corporate website, http://www.docdatanv.com.
6.2 Statement of compliance
These consolidated interim financial statements have been prepared in accordance with IAS 34 (Interim Financial Reporting). They do not include all of the information required for full annual financial statements, and should therefore be read in conjunction with the consolidated financial statements of the Group as at and for the year ended 31 December 2010.
6.3 Significant accounting policies
The consolidated financial statements of the Group are prepared in accordance with the International Financial Reporting Standards as adopted by the European Union ("IFRS"). The accounting policies applied by the Group in these consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31 December 2010. For a summary of the significant accounting policies under IFRS, please refer to the Group's Annual Report for the financial year ended 31 December 2010.
6.4 Audit
The consolidated interim financial statements and the reconciliations included in this report and its enclosures have not been audited by the external auditors.
6.5 Management representations
In the opinion of the management, these consolidated interim 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, except for recorded non-recurring expenses related to the acquisition of the former Dohmen Solutions business activities (including acquisition costs, advisory fees, restructuring expenses, etc.) recorded in the consolidated interim financial statements for the half-year ended 30 June 2010.
The results of the operations for the half-year ended 30 June 2011 are not necessarily indicative of the results for the entire financial year ending 31 December 2011.
6.6 Consolidation
In the consolidated interim financial statements for the half-year ended 30 June 2011 and the consolidated financial statements for the year ended 31 December 2010, the following treatment has been applied for the following incorporations:
- IAI excimer systems B.V.: per 1 April 2010, IAI industrial systems B.V. has incorporated a new legal entity for a Dutch subsidiary, IAI excimer systems B.V. in Veldhoven. The balance sheet and income statement of IAI excimer systems B.V. have been included in the DOCDATA consolidation starting per the date of incorporation;
- Docdata Assets GmbH, Docdata e-Commerce Services GmbH, Docdata Fashion Services GmbH: these three German subsidiaries, wholly owned by docdata germany GmbH, have been incorporated (based on new shelf companies, "Blitz GmbH") to provide the legal structure enabling the asset purchase of the former Dohmen Solutions activities per 16 April 2010. The balance sheet and income statement of these three GmbH's have been included in the DOCDATA consolidation starting per this date;
- Docdata media GmbH: all shares in this German subsidiary, wholly owned by docdata germany GmbH and part of the e-commerce service company Docdata, were sold on 21 July 2010 to the German investment fund Deutsche Unternehmensbeteiligungen GmbH (DUBAG) in Munich. The balance sheet and income statement of docdata media GmbH were excluded from the DOCDATA consolidation starting per this date. The media replication activities of this German subsidiary were fully written off at fair value by the Group per the end of the 2009 financial year. The remaining book value of these assets and liabilities are reported as assets and liabilities classified as held for sale in the Group's Annual Report for the financial year ended 31 December 2009.
6.7 Property, plant and equipment
30 June 31 December
2011 2010
(in thousands) EUR EUR
Land and buildings 1,182 1,261
Machinery and equipment 5,405 6,503
Office equipment and other 2,445 2,667
9,032 10,431
Under construction 1,544 -
Total 10,576 10,431
The book value of property, plant and equipment has increased with nearly € 0.2 million in the half-year ended 30 June 2011 as a combined result from capital expenditure for € 1.8 million and depreciation charges for € 1.6 million. Capital expenditure in the half-year ended 30 June 2011 is for € 1.5 million accounted for as 'under construction', which predominantly relates to the investment by Docdata Fulfilment in the new state-of-the-art logistic centre in Waalwijk, the Netherlands. Other capital expenditure for € 0.3 million mainly consists of further investments in fulfilment warehouses in Germany. At 30 June 2011, extra capital expenditure was committed for an amount of € 3.0 million in addition to the amount accounted for 'under construction'.
6.8 Intangible assets
30 June
31 December
2011 2010
(in thousands) EUR EUR
Development costs 403 255
Goodwill 6,577 6,723
Customer contracts 462 703
Software (IT platforms) 1,825 2,009
Total 9,267 9,690
The book value for intangible assets has decreased with € 0.4 million during the half-year ended 30 June 2011, due to the following:
- capital expenditure in development costs by IAI industrial systems (€ 0.1 million) and IT platform of Docdata Payments (€ 0.2 million in total);
- amortisation charges for customer contracts and IT platforms (€ 0.6 million in total);
- currency exchange loss (€ 0.1 million) on the valuation of the intangible assets with an original value in British pounds (i.e. related to the Braywood and Hitura acquisitions).
6.9 Inventories
30 June
31 December
2011 2010
(in thousands) EUR EUR
Raw and auxiliary materials 1,400 1,260
Work in progress 3,696 3,671
Finished goods 1,234 505
Total 6,330 5,436
The book value of inventories increased € 0.9 million in the half-year ended 30 June 2011, which was predominantly caused by an inventory increase of finished goods (company clothing) for Docdata Fashion Services GmbH due to purchases for orders in the second half-year.
IAI industrial systems' order book developed in the half-year ended 30 June 2011 from € 8.4 million at 31 December 2010 to € 9.1 million at 30 June 2011 resulting from systems' deliveries in the half-year ended 30 June 2011 with revenue of € 3.2 million and new orders booked with a total sales value of € 3.9 million.
6.10 Segmented Consolidated Income Statement half-year 2011
E-commerce Technology
company IAI
service company industrial
Docdata systems
(in thousands, except earnings per
share and average shares outstanding) EUR % EUR %
Revenue 53,608 100.0 5,374 100.0
Cost of sales (40,992) (76.5) (3,855) (71.7)
Gross profit 12,616 23.5 1,519 28.3
Other operating income 142 0.3 8 0.1
Selling expenses (2,742) (5.1) (339) (6.3)
Administrative expenses (6,844) (12.7) (691) (12.8)
Other operating expenses (136) (0.3) (1) -
Operating profit before financing
result 3,036 5.7 496 9.3
Financial income 68 0.1 30 0.1
Financial expenses (222) (0.4) (28) (0.1)
Net financing income / (expenses) (154) (0.3) 2 -
Share of profits of associates - - 55 1.0
Profit before income tax 2,882 5.4 553 10.3
Income tax profit / (expense) (818) (1.5) (113) (2.1)
Profit for the period 2,064 3.9 440 8.2
Attributable to:
Equity holders of the parent 2,095 3.9 440 8.2
Non-controlling interest (31) - - -
Profit for the period 2,064 3.9 440 8.2
Corporate website: http://www.docdatanv.com
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