WAALWIJK, The Netherlands, July 22, 2010 /PRNewswire/ -- DOCDATA N.V. has made a flying start in the first half-year 2010. Both lines of business, technology company IAI industrial systems and e-commerce service company Docdata show excellent results.
Technology company IAI industrial systems was able to deliver all orders as planned in the first half 2010. In addition, the organisation has expanded and is prepared for further growth.
The revenue and number of processed transactions of the e-commerce service company Docdata increased substantially in the first half 2010. This is due to the success of our customers in the Netherlands and Germany and the acquisition of the business activities of the former Dohmen Solutions Group in Germany.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: Despite the current economic crisis we had to have all hands on deck in the first six month to realise the growth, resulting in the expansion of our work force with almost 300 employees to a large extent in Germany. This had an extreme impact on our organisation and resulted in additional costs. The priority however remains focused on a very high delivery performance for our customers.
Half-year Half-year ended 30 June 2010 ended Revenue 30 June 2009 Growth (in thousands, except percentage EUR EUR % figures) Technology company IAI industrial 10,323 4,187 + 147% systems E-commerce service company Docdata 26,362 22,082 + 19% (excluding Docdata media and former Dohmen Solutions) Docdata media 5,610 8,627 -/- 35% Acquisition former Dohmen Solutions 3,694 - - Total 45,989 34,896 + 32% Results and Financial position half-year 2009 (unaudited) Half-year ended at (in millions, except percentage 30 June 2010 30 June 2009 figures and per share data) EUR % EUR % Revenue E-commerce service company Docdata 35.7 77.6 30.7 88.0 Technology company IAI industrial 10.3 22.4 4.2 12.0 systems Total 46.0 100.0 34.9 100.0 Gross profit E-commerce service company Docdata 8.6 24.0 8.9 28.8 Technology company IAI industrial 4.1 40.0 1.9 45.5 systems Total 12.7 27.6 10.8 30.8 Operating profit (EBIT) E-commerce service company Docdata 0.4 1.0 1.5 4.9 Technology company IAI industrial 2.8 27.2 0.9 21.0 systems Total 3.2 6.9 2.4 6.8 Profit for the half-year 2.6 5.6 1.9 5.4 Basic earnings per share 0.38 0.28 Diluted earnings per share 0.37 0.27 Balance sheet total 50.2 39.1 Equity 26.6 21.7 Solvency ratio (Equity / Balance 53.0% 55.6% sheet total)
Technology company IAI industrial systems delivered many personalisation systems in the first half-year 2010. As a result the revenue of IAI industrial systems increased with EUR 6.1 million (+147%). The operating result for the first half-year 2010 is exceptionally high due to several specific orders. Per end of June 2010 the order book included orders for a revenue of EUR 8.6 million which will be delivered for a large part in 2010 (end 2009: EUR 13.8 million). The pipeline is well filled and the company is working hard to convert this pipeline into orders.
In the document security market IAI industrial systems is seen as the highest quality supplier of production systems to personalise and/or secure documents issued by governments. IAI has expanded the product range considerably in the document security market through the development of new systems in the past years.
In the Solar market IAI offers systems for the production of solar cells or solar panels. In 2010 IAI delivered several 'lab'-systems and further increased its reputation in the market. To realise unique applications in solar cells, IAI has invested in an excimer laser which will be used for application oriented research. This laser will also be used for application development in other markets. Due to the current economic crisis we expect to deliver production systems not before 2011.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: We remain ideally positioned in the document security market because of our high quality, reliable and customised systems. This also gives us the possibility to compete with the major players in the market. We expect that governments world-wide will continue to give a high priority to investments in document security. We will continue to invest in new applications and systems.
E-commerce service company Docdata again achieved a strong increase in the number of unique transactions compared to 2009. In the first half 2010 nearly 13 million unique transactions have been processed. The strong revenue growth was mainly achieved by the success of existing clients and the acquisition of the business activities of the former Dohmen Solutions Group. As these activities have been acquired for a relatively small amount from Dohmen Solutions which was in suspension, this does result in restructuring costs fully charged to the operating result of Docdata. As a result of the acquisition one-off costs of EUR 1.3 million have been recognised in the first half-year 2010. For the second half-year 2010 we expect to incur a comparable amount of costs. These substantial one-off costs in combination with the relatively low acquisition price, make it an interesting deal compared to the acquired customer base.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: Thanks to the acquisition of the activities of Dohmen Solutions we have further strengthened our position in Germany and have taken a top 10 position in the e-commerce service market. Through five sites spread across Germany we can now provide our customers a full e-commerce service.
Major features of the first half-year 2010
The revenue of DOCDATA N.V. increased with EUR 11.1 million to EUR 46.0 million (+32%) in the first half-year 2010. IAI industrial systems has realised an increase in revenue of EUR 6.1 million (+147%). Docdata has realised with the commerce, payments and fulfilment services an autonomous revenue increase of EUR 4.3 million (+19%), predominantly due to the increased number of transactions of more than 27% compared to last year. The acquisition of the activities of the former Dohmen Solutions Group contributed to revenue for EUR 3.7 million in the first half-year 2010 as from 16 April 2010. Finally, Docdata media incurred a decrease in revenue of EUR 3.0 million (-/- 35%) due to the further decline of replication activities.
In the first half-year 2010 a higher gross profit of EUR 12.7 million has been realised compared to the EUR 10.8 million in the first half-year 2009 (+18%). The gross profit margin for the first half-year 2010 is 27.6% compared to 30.8% in the first half-year 2009, with a decrease of the gross profit margin for both lines of business. For Docdata this lower gross profit margin is mainly the result of lower realised efficiency due to the tremendous growth of some or our largest customers in the Netherlands and Germany. For IAI industrial systems the decrease of the gross profit margin is due to different size and composition of deliveries in both comparable periods, taking into account that in the first half-year 2009 almost no deliveries were realised.
In the first half-year 2010 an operating result before financing result (EBIT) of EUR 3.2 million has been realised compared to EUR 2.4 million in the first half-year 2009.
The operating result of the technology company IAI industrial systems increased with EUR 1.9 million as a result of the delivery of more systems in the first half-year 2010.
The operating result of the e-commerce service company Docdata decreased with EUR 1.1 million due to several one-off effects:
- acquisition- and consultancy costs, start-up losses and restructuring costs after acquisition of the business activities of the former Dohmen Solutions Group (impact: approximately EUR 1.3 million); - significant higher organisation costs to realise the strong growth of some large customers in the Netherlands and Germany.
As a result of the improved operating result of both lines of business together, the profit for the first half-year 2010 amounts to EUR 2.6 million which is EUR 0.7 million (+36%) higher compared to the first half-year 2009.
DOCDATA N.V. has maintained its strong financial position during the first half-year 2010 with a solvency ratio of 53.0% per 30 June 2010 (31 December 2009: 55.9%). In relation to the Company's liquidity, the cash surplus position of EUR 6.1 million at 31 December 2009 has decreased with EUR 2.8 million to EUR 3.3 million at 30 June 2010. DOCDATA N.V. has realised in the first half-year 2010 a cash flow from operating activities of EUR 5.4 million (first half-year 2009: EUR 0.2 million), which is influenced to a large extent by cash flows generated from the delivery in February 2010 of the second part of the Bulgarian order by IAI industrial systems B.V. and the receipt of an income tax receivable by the Dutch fiscal entity. Furthermore, DOCDATA N.V. has drawn EUR 4.4 million from the existing credit facility with Dresdner Bank AG (now part of Commerzbank AG) to finance the following:
- the acquisition of the assets and business activities of the former Dohmen Solutions Group in Germany (purchase price: EUR 2.0 million); - the working capital of the new legal entities in Germany, which acquired the assets and business activities of the former Dohmen Solutions Group (including the restructuring costs after acquisition of these activities); - the investments in the warehousing (among others installations and racking) of our fulfilment centers in the Netherlands and Germany.
Of these total available funds of EUR 9.8 million, EUR 3.7 million was spent on the payment of the 2009 dividend. In addition, the Group has invested a total amount of EUR 4.5 million in the half-year ended 2010: EUR 3.2 million in property, plant and equipment (mainly warehousing equipment and investments in IT infrastructure) and EUR 1.3 million in intangibles (predominantly IT platform and customer contracts from the former Dohmen Solutions Group). The remaining EUR 1.6 million has resulted in higher cash and cash equivalents per 30 June 2010.
Outlook
As already announced in February 2010, the focus of DOCDATA N.V. for 2010 is on growth, both autonomous and through acquisitions. The first half-year 2010 has proven that both lines of business of the Company in terms of achieving autonomous growth are fully on track. With the acquisition of the assets and business activities of the former Dohmen Solutions Group in Germany the target to achieve a top 10 position in Germany has already been realised. For the second half-year 2010 the focus will be on realisation of further autonomous profitable growth and process optimisation.
In the market for document security, technology company IAI industrial systems has realised outstanding results in the first half-year 2010. The focus for the second half-year 2010 will be on further development of new systems for the various markets in which IAI operates and on bringing in new orders for 2011. In the Solar market we do not expect substantial revenue for IAI industrial systems in the second half-year 2010. IAI industrial systems' order book amounts to EUR 8.6 million at 30 June 2010 and will be delivered mainly in 2010.
The management of DOCDATA N.V. expects that the operating result for the full-year 2010 will be lower than that for the full-year 2009, due to one-off costs related to the acquisition of the business activities of the former Dohmen Solutions Group.
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 2009 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 2010 half-year results please refer to the attached enclosure 'Interim Financial Information for the half-year ended 30 June 2010' with Appendix.
Meeting for financial press and analysts
Today, Thursday 22 July 2010, management of DOCDATA N.V. will discuss the 2010 half-year 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 .
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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 - 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, and exists of four services:
- Docdata commerce - Docdata payments - Docdata fulfilment - Docdata media
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 2010 and the profit for the half-year ended 30 June 2010 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 2009 and of the development and performance during the half-year ended 30 June 2009 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, 22 July 2010 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
(in thousands, except percentage Half-year ended Half-year ended figures) 30 June 2010 30 June 2009 Revenue by line of business EUR % EUR % E-commerce service company Docdata 35,666 77.6 30,709 88.0 Technology company IAI industrial 10,323 22.4 4,187 12.0 systems Total 45,989 100.0 34,896 100.0 - Total revenue of the Docdata commerce, payments and fulfilment services increased with EUR 8.0 million (36.1%), including a positive foreign exchange effect of EUR 0.2 million. This revenue increased as a result of autonomous growth (EUR 4.1 million, including the positive exchange effect of EUR 0.2 million) and the acquisition of the activities of the former Dohmen Solutions Group in Germany (EUR 3.7 million). These acquired activities contribute to revenue as from 16 April 2010. The revenue of the Docdata media service decreased further with EUR 3.0 million (35%) due to declining revenue from replication activities in Tilburg and Berlin. - IAI industrial systems' revenue increased EUR 6.1 million (146.5%) in the half-year ended 30 June 2010 compared to the half-year ended 30 June 2009. This increase in revenue is mainly the result of the systems' delivery of the second and last part of the Bulgarian order consisting of decentralised personalisation systems. Gross profit (in thousands, except percentage Half-year ended 30 Half-year figures) June 2010 ended 30 June 2009 Gross profit (margin) by line of business (margin as % of revenue by line of business) EUR % EUR % E-commerce service company Docdata 8,563 24.0 8,854 28.8 Technology company IAI industrial 4,126 40.0 1,903 45.5 systems Total 12,689 27.6 10,757 30.8 - The gross profit of Docdata decreased with EUR 0.3 million (-3.3%) in the half-year ended 30 June 2010 compared to the half-year ended 30 June 2009. The combined gross profit of the Docdata commerce, payments and fulfilment services contributed EUR 7.6 million in the half-year ended 30 June 2010 compared to EUR 7.2 million in the half-year ended 30 June 2009. This is mainly the result of the growth in the number of transaction in the Netherlands and Germany. The acquired activities from the former Dohmen Solutions Group had a gross profit of about zero. The Docdata media service contributed EUR 1.0 million to the gross profit in the first half-year ended 30 June 2010 compared to EUR 1.7 million in the first half-year ended 30 June 2009. - The gross profit of IAI industrial systems increased with EUR 2.2 million (117%) mainly due to the systems' delivery of the second and last part of the Bulgarian order. Operating profit before financing result (EBIT) Selling Administrative expenses Other operating income and expenses (in thousands, except percentage Half-year ended Half-year ended figures) 30 June 2010 30 June 2009 Operating profit (margin) by line of business (margin as % of revenue by line of business) EUR % EUR % E-commerce service company Docdata 352 1.0 1,496 4.9 Technology company IAI industrial 2,807 27.2 881 21.0 systems Total 3,159 6.9 2,377 6.8 Selling Administrative expenses (as % of revenue) Selling expenses 2,681 5.8 2,314 6.6 Administrative expenses 6,876 15.0 5,897 16.9 Total 9,557 20.8 8,211 23.5 Selling Administrative expenses by line of business (as % of revenue by line of business) E-commerce service company Docdata 8,219 23.0 7,189 23.4 Technology company IAI industrial 1,338 13.0 1,022 24.4 systems Total 9,557 20.8 8,211 23.5 Other operating income and expenses (as % of revenue) Other operating income 265 0.6 53 0.1 Other operating expenses (238) (0.5) (222) (0.6) Net other operating expenses 27 0.1 (169) (0.5) - The operating profit of the e-commerce service company Docdata decreased with EUR 1.1 million in the half-year ended 30 June 2010 compared to the half-year ended 30 June 2009. The operating profit of the Docdata commerce, payments and fulfilment services decreased with EUR 1.2 million, which decrease is mainly the result of substantial restructuring costs and start-up losses following the acquisition of the activities from the former Dohmen Solutions Group. The total effect on EBIT amounts to a loss of EUR 1.3 million in the first half-year ended 30 June 2010. These expenses are essential in order to reduce the cost base of the acquired activities, and are recognised both under selling and administrative expenses. The restructuring of the acquired activities will continue in the second half-year 2010 with the expectation that these activities will only add to the profit of Docdata in the year 2011. The operating profit of Docdata media service is EUR 0.1 million in the half-year ended 30 June 2010, which is in line with the operating profit in the half-year ended 30 June 2009. - The operating profit of IAI industrial systems increased with EUR 1.9 million in the first half-year 2010 compared to the first half-year 2009. This increase is the combined effect of a higher gross profit of EUR 2.2 million and increased selling and administrative expenses of EUR 0.3 million. Gross profit increased in the first half-year 2010 due to the delivery of a higher number of security systems, mainly to Bulgaria. The selling and administrative expenses increased in the first half-year 2010 as a result of higher organisation costs due to the expansion of the number employees.
Net financing income
Net financing income for the half-year ended 30 June 2010 amounted to just over EUR 0.1 million compared to net financing expenses of nearly EUR 0.2 million for the half-year ended 30 June 2009. Net bank interest expenses, as well as foreign currency exchange results are comparable for both half-years ended 30 June 2010 and 30 June 2009.
Income tax expense
DOCDATA's effective tax rate in the half-year ended 30 June 2010 was 22.3% with an income tax expense of EUR 0.7 million on a profit before income tax of EUR 3.3 million. In the half-year ended 30 June 2009, the profit before income tax amounted to EUR 2.6 million and the income tax expense amounted to EUR 0.7 million (effective tax rate: 27.7%).
The income tax expense of EUR 0.7 million in the half-year ended 30 June 2010 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 25.5% on the taxable income for the Dutch fiscal entity as well as for the Dutch subsidiaries that are not part of this fiscal entity (2009: 25.5%). - In the United Kingdom, income taxes are recorded against a corporate income tax rate of 28.0% (2009: 28.0%). - In Germany, income taxes are recorded at a corporate income tax rate of in general between 30% and around 32.5% 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 12 May 2010 approved the proposal to distribute a dividend of EUR 0.55 per ordinary share outstanding (excluding own shares held by the Company), which had a decreasing impact of EUR 3.7 million on retained earnings within the equity of the Company in the half-year ended 30 June 2010.
In the half-year ended 30 June 2010, the Group realised net cash from operating activities of EUR 5.4 million (half-year ended 30 June 2009: EUR 0.2 million). Major items resulting in this high net cash from operating activities were the delivery by IAI industrial systems B.V. in February 2010 of the remaining part of the Bulgarian order, as well as the repayment by the Dutch tax authorities of EUR 1.3 million prepaid income taxes for the year 2009 due to the recording by the Dutch fiscal entity of an income tax credit on the liquidation loss for docdata media Ltd. in the UK.
Furthermore, the Group has drawn EUR 4.4 million from the credit facility with Dresdner Bank AG (now part of Commerzbank AG) in the half-year ended 30 June 2010 to finance the following:
- the acquisition (total purchase price of the assets acquired: EUR 2.0 million) and post-transaction working capital and restructuring of the activities of the former Dohmen Solutions Group. - the investments in warehousing in the Netherlands and Germany.
Of these total available funds of EUR 9.8 million, EUR 3.7 million was spent on the payment of the 2009 dividend. In addition, the Group has invested a total amount of EUR 4.5 million in the half-year ended 30 June 2010: EUR 3.2 million in property, plant and equipment (mainly warehousing equipment and investments in IT infrastructure) and EUR 1.3 million in intangibles (predominantly the IT platform and the customer contracts from the former Dohmen Solutions Group, as well as some IT development costs). The remaining EUR 1.6 million has resulted in higher cash and cash equivalents per 30 June 2010.
In the half-year ended 30 June 2010 1,500 share options were exercised from the 2006 series at a price of EUR 8.10 per share. The underlying shares have been delivered by the Company from the own shares in possession of the Company. The proceeds of EUR 13 thousand have been credited to equity under reserves, as the purchase of own shares has been charged to reserves in the past. Per 30 June 2010, the Company owned 349,982 own shares (5.00%), which number is the same as the number of own shares currently owned by the Company per 22 July 2010.
Waalwijk, 22 July 2010
Consolidated Interim Financial Statements 1. Consolidated Balance Sheets Balance sheets before appropriation of profit. 30 June 31 December 2010 2009 (in thousands) EUR EUR Assets Property, plant and equipment 8,394 6,221 Intangible assets 9,812 8,633 Investments in associates 62 62 Other investments 100 100 Trade and other receivables 200 200 Deferred tax assets 801 1,130 Total non-current assets 19,369 16,346 Inventories 5,542 6,861 Income tax receivables 1,578 3,038 Trade and other receivables 15,340 15,566 Cash and cash equivalents 7,724 6,147 Assets classified as held for 662 1,054 sale Total current assets 30,846 32,666 Total assets 50,215 49,012 Equity Share capital 700 700 Share premium 16,854 16,854 Translation reserves (517) (1,030) Reserve for own shares (2,854) (2,940) Retained earnings 12,454 13,720 Total equity attributable to equity holders of 26,637 27,304 the parent Minority interest - 107 Total equity 26,637 27,411 Liabilities Interest-bearing loans and other 313 313 borrowings Deferred tax liabilities 284 288 Total non-current liabilities 597 601 Bank overdrafts 4,400 - Income tax payable 451 340 Trade and other payables 16,849 18,668 Provisions 602 1,039 Liabilities classified as 679 953 held for sale Total current liabilities 22,981 21,000 Total liabilities 23,578 21,601 Total equity and liabilities 50,215 49,012 2. Consolidated Income Statements Half-year ended Half-year ended 30 June 2010 30 June 2009 (in thousands, except earnings per share EUR % EUR % and average shares outstanding) Revenue 45,989 100.0 34,896 100.0 Cost of sales (33,300) (72.4) (24,139) (69.2) Gross profit 12,689 27.6 10,757 30.8 Other operating income 265 0.6 53 0.1 Selling expenses (2,681) (5.8) (2,314) (6.6) Administrative expenses (6,876) (15.0) (5,897) (16.9) Other operating expenses (238) (0.5) (222) (0.6) Operating profit before financing result 3,159 6.9 2,377 6.8 Financial income 240 0.5 278 0.8 Financial expenses (110) (0.2) (97) (0.3) Net financing income 130 0.3 181 0.5 Share of profits of associates - - 36 0.1 Profit before income tax 3,289 7.2 2,594 7.4 Income tax expense (734) (1.6) (718) (2.0) Profit for the period 2,555 5.6 1,876 5.4 Attributable to: Equity holders of the parent 2,662 5.8 1,838 5.3 Minority interest (107) (0.2) 38 0.1 Profit for the period 2,555 5.6 1,876 5.4 Weighted average number of shares 6,649,000 6,649,000 outstanding Weighted average number of shares 7,000,000 6,962,000 (diluted) Earnings per share Basic earnings per share 0.38 0.28 Diluted earnings per share 0.37 0.27 3. Consolidated Statements of Cash Flows Half-year Half-year ended ended 30 June 2010 30 June 2009 (in thousands) EUR EUR Cash flows from operating activities Profit for the period 2,555 1,876 Adjustments for: Depreciation and amortisation 1,490 1,622 Costs share options and delivered shares 73 94 Financial expenses 110 97 Financial income (240) (278) Share of profits of associates - (36) Income tax expense 734 718 Cash flows from operating activities before changes in working capital and provisions 4,722 4,093 (Increase) / decrease in trade and other receivables and assets held for sale 777 1,336 (Increase) / decrease in inventories 1,319 (3,563) Increase / (decrease) in trade and other payables and liabilities held for sale (2,132) (853) Increase / (decrease) in provisions and (437) 10 employee benefits Cash generated from the operations 4,249 1,023 Interest paid (108) (165) Interest received 81 118 Income taxes received / (paid) 1,199 (769) Net cash from operating activities 5,421 207 Cash flows from investing activities Acquisition of property, plant and equipment (3,213) (1,102) Acquisition of intangible assets (1,299) (57) Acquisition of subsidiaries - (582) Acquisition of associates and other - (62) investments Proceeds from sale of property, plant and 6 2 equipment Net cash from investing activities (4,506) (1,801) Cash flows from financing activities Proceeds from bank overdrafts 4,400 - Proceeds from exercise of share options 13 141 Dividends paid (3,658) (2,031) Repayment of bank overdrafts - (1,185) Proceeds from interest-bearing loans and - 60 other borrowings Net cash from financing activities 755 (3,015) Net increase / (decrease) in cash and cash 1,670 (4,609) equivalents Cash and cash equivalents at the beginning of 6,147 6,034 the period Effect of exchange rate fluctuations on cash (93) 188 held Cash and cash equivalents at the end of the 7,724 1,613 Period 4. Consolidated Statements of Shareholders' Equity Total equity attrib- utable Minor to equity -ity holders Total Share Share Retained of the inte- capital premium earnings parent rest equity Reserves (in EUR EUR EUR EUR EUR EUR EUR thousands) Equity Statement 2009 Balance at 1 700 16,854 (4,531) 7,882 20,905 292 21,197 January 2009 Dividend - - - (1,993) (1,993) (38) (2,031) distribution Exercised - - 141 - 141 - 141 share options Delivered - - 37 - 37 - 37 shares for remuneration Costs share - - 57 - 57 - 57 options Consolidation - - - - - (5) (5) of former associate Total recognised - 1,838 income and - 443 2,281 38 2,319 expense for the period Balance at 30 700 16,854 (3,853) 7,727 21,428 287 21,715 June 2009 Balance at 1 700 16,854 (3,853) 7,727 21,428 287 21,715 July 2009 Costs share - - 43 - 43 - 43 options Total recognised income and - - (160) 5,993 5,833 (180) 5,653 expense for the period Balance at 31 700 16,854 (3,970) 13,720 27,304 107 27,411 December 2009 Equity Statement 2010 Balance at 1 700 16,854 (3,970) 13,720 27,304 107 27,411 January 2010 Dividend - - - (3,658) (3,658) - (3,658) distribution Exercised - - 13 - 13 - 13 share options Costs share - - 73 - 73 - 73 options Realised - - 270 (270) - - - translation reserves Total recognised income and - - 243 2,662 2,905 (107) 2,798 expense for the period Balance at 30 700 16,854 (3,371) 12,454 26,637 - 26,637 June 2010 5. Consolidated Statements of recognised Income and Expense Half-year Half-year 2010 2009 (in thousands) EUR EUR Foreign exchange translation 243 443 differences Income / (Expense) recognised directly in 243 443 equity Profit for the period 2,555 1,876 Total recognised income and expense for the 2,798 2,319 period Attributable to: Equity holders of the parent 2,905 2,281 Minority interest (107) 38 Total recognised income and expense for the 2,798 2,319 period
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 2010 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 2009 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 2009.
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 2009. 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 2009.
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.).
The results of the operations for the half-year ended 30 June 2010 are not necessarily indicative of the results for the entire financial year ending 31 December 2010.
6.6 Organisation structure and segmentation
From 1 January 2008 onwards, DOCDATA has changed the organisation structure from a country organisation to a divisional structure. Starting the financial year 2008, DOCDATA identifies for the purpose of preparing financial statements the following two lines of business: Internet service company Docdata (consisting of the following four services: Docdata commerce, Docdata payments, Docdata fulfilment and Docdata media) and Technology company IAI industrial systems. Starting 1 January 2010, the names of the two lines of business are:
- E-commerce company Docdata; - Technology company IAI industrial systems.
The segmentation for both comparable consolidated interim financial statements for the half-year ended 30 June 2009 and the half-year ended 30 June 2010 has been prepared accordingly and in a consistent way.
6.7 Consolidation
In the consolidated interim financial statements for the half-year ended 30 June 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 new 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.
In the consolidated financial statements for the year ended 31 December 2009, the following treatment has been applied for the following incorporation and acquisition:
- IAI industrial systems GmbH: per 12 January 2009, IAI industrial systems B.V. has incorporated a new legal entity for its Germany subsidiary, IAI industrial systems GmbH in Berlin. The balance sheet and income statement of IAI industrial systems GmbH have been included in the DOCDATA consolidation starting per the date of incorporation; - Pegasus Mail GmbH: on 9 January 2009, docdata e-business GmbH has acquired all issued shares of Pegasus Mail GmbH in Münster (Germany). This company operates fulfilment services related to print and mail. The balance sheet and income statement of Pegasus Mail GmbH have been included in the DOCDATA consolidation starting per the acquisition date. 6.8 Property, plant and equipment 30 June 31 December 2010 2009 (in thousands) EUR EUR Land and buildings 1,297 1,347 Machinery and equipment 3,749 2,935 Other 2,254 1,881 7,300 6,163 Under construction 1,094 58 Total 8,394 6,221
The book value of property, plant and equipment has increased with EUR 2.2 million over the half-year ended 30 June 2010 as a combined result from capital expenditure for EUR 3.2 million, depreciation charges for EUR 1.1 million and currency exchange profits for EUR 0.1 million on the UK property, plant and equipment accounted for in British pounds. Included in capital expenditure in the half-year ended 30 June 2010 is the purchase price of in total EUR 0.2 million paid at acquisition for the equipment bought from the former Dohmen Solutions Group, and EUR 0.6 million investments by IAI industrial systems B.V. in buildings and laser production equipment. The remainder of about EUR 2.4 million relates to investments in the fulfilment warehouses of the Group and is predominantly spent in Germany for the warehouses located in the Berlin and Munich regions. 6.9 Intangible assets
30 June 31 December 2009 2010 (in thousands) EUR EUR Goodwill 6,889 6,626 Customer contracts 1,062 468 IT platforms 1,861 1,539 9,812 8,633 Under construction - - Total 9,812 8,633
The book value for intangible assets has increased with EUR 1.2 million during the half-year ended 30 June 2010, due to the following:
- capital expenditure in customer contracts and IT platforms (EUR 1.3 million in total), predominantly for the acquisition of the customer contracts and the IT-platform from the former Dohmen Solutions Group (EUR 1.2 million in total at acquisition); - amortisation charges for customer contracts and IT platforms (EUR 0.4 million in total); - currency exchange profits (EUR 0.3 million) on the valuation of the intangible assets with an original value in British pounds (i.e. related to the Braywood and Hitura acquisitions). 6.10 Inventories 30 June 31 December 2009 2010 (in thousands) EUR EUR Raw and auxiliary materials 1,190 720 Work in progress 3,951 6,066 Finished goods 401 75 Total 5,542 6,861
The book value of inventories decreased EUR 1.3 million in the half-year ended 30 June 2009, which is the combined effect of an inventory increase from the acquisition of the former Dohmen Solutions business activities (EUR 0.5 million) and decreased work in progress at IAI industrial systems (EUR 1.8 million). IAI industrial systems' order book decreased about EUR 5 million from EUR 13.8 million at 31 December 2009 to EUR 8.6 million at 30 June 2010 resulting from system deliveries during the half-year ended 30 June 2010 for a revenue of about EUR 10 million and new orders booked with a total sales value of about EUR 5 million.
6.11 Segmented Consolidated Income Statement half-year 2010
E-commerce Technology company IAI service company industrial Docdata systems (in thousands, except earnings per EUR % EUR % share and average shares outstanding) Revenue 35,666 100.0 10,323 100.0 Cost of sales (27,103) (76.0) (6,197) (60.0) Gross profit 8,563 24.0 4,126 40.0 Other operating income 245 0.7 20 0.2 Selling expenses (2,290) (6.4) (391) (3.8) Administrative expenses (5,929) (16.6) (947) (9.2) Other operating expenses (237) (0.7) (1) - Operating profit before financing 352 1.0 2,807 27.2 result Financial income 207 0.6 33 0.3 Financial expenses (77) (0.2) (33) (0.3) Net financing income / (expenses) 130 0.4 - - Share of profits of associates - - - - Profit before income tax 482 1.4 2,807 27.2 Income tax profit / (expense) 99 0.2 (833) (8.1) Profit for the period 581 1.6 1,974 19.1 Attributable to: Equity holders of the parent 688 1.9 1,974 19.1 Minority interest (107) (0.3) - - Profit for the period 581 1.6 1,974 19.1
Corporate website: http://www.docdatanv.com
SOURCE: DOCDATA N.V.
CONTACT: Further information: DOCDATA N.V., M.F.P.M. Alting von Geusau,CEO, Tel. +31-416-631-100
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