Business News
DOCDATA N.V. Announces the 2009 Half-Year Results
Tuesday 28. July 2009 - Order Portfolio of Technology Company IAI Industrial Systems Reaches Highest Level Ever
– Profit Growth of Internet Service Company Docdata due to a Strong
Increase of Realised Transactions
Michiel Alting von Geusau, CEO of DOCDATA N.V.: “The strategy ‘Vision
2010: Gear to Growth’ remains tightly on track, despite the current economic
crisis, both for Technology company IAI industrial systems and Internet
service company Docdata. Our focus for Technology company IAI industrial
systems is to secure orders for the delivery of highest quality systems and
for Internet service company Docdata to further growth of the number of
realised transactions. In line with this focus and despite the challenging
external circumstances, we have realised a further growth both in revenue and
results. We, however, remain cautious regarding the current economic
situation and the markets in which we operate. We do expect to be able to
continue the current positive trend in the second half-year 2009.”
Half-year Half-year
ended ended
Revenue 30 June 2009 30 June 2008 Growth
(in thousands, except percentage EUR EUR %
figures)
Technology company IAI industrial
systems 4,187 2,575 + 63%
Internet service company Docdata
(excluding media) 22,082 17,470 + 26%
Docdata media 8,627 15,648 -/- 45%
Total 34,896 35,693 -/- 2%
Technology company IAI industrial systems has delivered in the first
half-year 2009 a number of high-quality personalisation systems and realised
new orders, resulting in an order portfolio at the end of the first half-year
2009 of EUR 24.3 million.
Internet service company Docdata has realised in the first half-year 2009
a strong increase in the number of unique transactions compared to the first
half-year 2008. In the first six months of 2009, approximately 10 million
unique transactions were processed.
Results and Financial position half-year 2009 (unaudited)
Half-year ended at
(in millions, except percentage 30 June 2009 30 June 2008
figures and per share data)
EUR % EUR %
Revenue
Internet service company Docdata 30.7 88.0 33.1 92.8
Technology company IAI industrial 4.2 12.0 2.6 7.2
systems
Total 34.9 100.0 35.7 100.0
Gross profit 10.8 30.8 9.4 26.4
Operating profit (EBIT)
Internet service company Docdata 1.5 4.9 1.3 4.1
Technology company IAI industrial 0.9 21.0 0.1 2.3
systems
Total 2.4 6.8 1.4 4.0
Profit for the half-year 1.9 5.4 1.0 2.9
Basic earnings per share 0.28 0.15
Diluted earnings per share 0.27 0.15
Balance sheet total 39.1 40.7
Equity 21.7 19.3
Solvency ratio (Equity / Balance 55.6% 47.4%
sheet total)
Major features of the first half-year 2009
Revenue of DOCDATA N.V. has decreased in the first half-year 2009 with
EUR 0.8 million to EUR 34.9 million (-/- 2%). Docdata commerce, payments and
fulfilment have realised a revenue increase of EUR 4.6 million, IAI
industrial systems a revenue increase of EUR 1.6 million and Docdata media a
revenue decrease of EUR 7.0 million (of which EUR 4.8 million related to the
sold media activities of Docdata media in the UK and the sale of 4D upgrade
GmbH in Germany). In the first half-year 2009 a higher gross profit was
realised of EUR 10.8 million compared to EUR 9.4 million in the first
half-year 2008 (+14%). Gross profit margin in the first half-year 2009 almost
reached 31% compared to 26% in the first half-year 2008; both lines of
business have contributed to this improvement in gross profit margin.
In the first half-year 2009, an operating profit before financing result
(EBIT) has been realised of EUR 2.4 million. The increase with EUR 1 million
compared to the first half-year 2008 is for the largest part realised by IAI
industrial systems. This is predominantly the result of the higher number of
systems that were delivered in the first half-year 2009, while no systems
were delivered in the first half-year 2008. In addition to the operating
profit, the financing result in the first half-year 2009 has improved with
EUR 0.3 million compared to the first half-year 2008, predominantly resulting
from lower net interest charges and an improvement in the foreign currency
exchange result. Furthermore, income tax expenses have increased with EUR 0.5
million in the first half-year 2009 due to a higher profit before income tax.
All combined, this has resulted in a profit for the period which is EUR 0.8
million higher than in the first half-year 2008.
DOCDATA N.V. has maintained its strong financial position with a solvency
ratio of 55.6% (31 December 2008: 51.8%). In relation to the Company’s
liquidity, the cash surplus position has decreased with EUR 3.5 million from
EUR 4.4 million at 31 December 2008 to EUR 0.9 million as at 30 June 2009.
DOCDATA N.V. has realised in the first half-year 2009 a net cash from
operating activities of EUR 0.2 million. The spending of this total of EUR
3.7 million in cash in the first half-year 2009 is shown in the cash flow
statement; the main elements are the distribution of dividend for the year
2008 to the shareholders (EUR 2.0 million), investments in property, plant
and equipment and intangible assets (EUR 1.2 million) and the acquisition of
(minority share interests in) subsidiaries and investments in associates and
other investments (EUR 0.6 million).
Internet service company Docdata realised in the first half-year 2009 a
strong increase in the number of unique transactions compared to the first
half-year 2008. Each transaction contributes to the success of our customers.
We offer customer specific or complete Internet solutions. In the Benelux we
have a reputation as the most progressive Internet service company and we are
pleased to be part of the secret behind the success of our customers. In
Germany and the United Kingdom we have not yet reached this position yet but
we will continue to work hard to achieve this in the next few years.
Goals for 2009 and 2010 are:
1. Service Excellence;
2. Growth of the number of transactions;
3. Development of new services.
In addition to the geographical focus, we continue to invest in new
services for our customers. As an example of a new service we recently
started to offer our e-commerce customers a fully integrated solution for web
photography. Through this service our customers are able to present and sell
articles in their web shop within 24 hours. This service is offered in-house
in our fulfilment centers in order to operate this process as efficient as
possible.
An important trend is that more people order online more frequently. We
have the impression that this trend is supported by the current economic
recession and as a result we expect a further growth also for the coming
months. However, we see that the average amount per order decreases but the
number of transactions keeps growing.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: “On a monthly basis we
process more than one and a half million transactions for our customers.
These transactions are realised orders, successful payments, delivered orders
and completed returns. We expect that the number of transactions we process
will grow further in the coming years. The current economic crisis will have
an impact on online spending, the growth will weaken, but also in 2009 the
number of e-commerce transactions will further increase.”
The current risks are mainly in terms of the financial position of our
customers and the strategic choice of (potential) customers to purchase
certain services from external suppliers. Often these decisions are
reconsidered in case of takeovers. As a result of this we expect that one of
our customers abroad will not renew the distribution contract in 2010. We
also see that client acquisition takes much longer in the current economic
crisis. Customers clearly need more time to take these decisions.
In the document security market Technology company IAI industrial systems
is more and more seen as the highest quality supplier of production systems
to personalise and/or secure documents issued by governments. In the document
security market IAI industrial systems succeeded to achieve excellent
results. IAI industrial systems has an order book of EUR 24.3 million at the
end of the first half-year 2009 (31 December 2008: EUR 10.8 million). We
therefore expect further growth in the second half-year 2009.
Goals for 2009 and 2010 are:
1. Timely delivery of systems;
2. Realising new orders;
3. Development of new systems with unique features.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: “We are ideally
positioned in the market of document security. We can compete with the big
players in this market due to our high quality, reliable and
customer-specific systems. Despite the credit crisis, we expect that
governments will continue to invest in the security of documents.”
Worldwide, we see that many countries hold on to paper holder pages. For
this extensive market segment IAI industrial systems has developed BM One
systems which process personal data by means of inkjet printing, followed by
the application of a protective laminate on the holder page. Although such
systems do not embed the laser inscription application, these systems can,
depending on customer’s request, include the ImagePerf(R) and/or
NumberPerf(R) laser-functionality. With the development of these BM One
systems IAI industrial systems has entered a large market segment of the
known document security market. Systems with this new technology were already
sold and partly delivered to a number of countries, including Romania and
Algeria.
Another new development is demonstrated by the SheetMaster and WebMaster
systems that can process documents printed in sheets or in web. There is a
large variety of documents that can be processed, for example: birth
certificates, registration certificates, diplomas, passport pages, documents
for levying direct taxes, etc. There is no standardisation of such documents
yet. For this reason these systems are equipped with many different options
to cover the demands in this market as much as possible. Also here IAI
industrial systems entered a new segment in a known market. These systems
were already sold and partly delivered to a number of countries, including
South Africa and India.
For the recently acquired order from Bulgaria, IAI industrial systems is
developing new systems for the decentralised personalisation market. For that
purpose the technology of the highly integrated systems, such as the BM One,
is made available in small standalone solutions. With this IAI industrial
systems again enters a new market.
The above examples illustrate the significant expansion of the product
range of IAI industrial systems for the document security market.
IAI industrial systems continued to build a solid network in the solar
industry in the first half-year 2009. In this market IAI industrial systems
offers production systems for solar cells or panels. Major orders appeared to
be postponed due to the credit crisis. Potential customers have postponed the
purchase of their new productions systems until they have more certainty
about their funding. IAI industrial systems is convinced that the solar
market will be growing again as soon as the funds for capital expenditure are
available. Nothing has fundamentally changed in this market. Based on this
conviction IAI industrial systems will therefore continue to build a network
to benefit from after the credit crisis.
The planned growth of IAI industrial systems has already resulted in a
workforce that has grown significantly in 2009. In addition, IAI industrial
systems also offers a lot of work to temporary staff and to outsourcing
partners.
Outlook
The focus in 2009 will be on autonomous profitable growth.
The focus for Internet service company Docdata is on the further
development of the Internet service model in Germany and the United Kingdom.
The goal is to become a Top 5 player in the coming years. Secondly, the focus
is on adding new services, starting in the Benelux. For 2009, we expect
further growth, despite the economical market situation; with the clear
exception of Docdata media.
In the document security market, Technology company IAI industrial
systems has not only realised outstanding results in the first six months of
2009, also the order portfolio is well filled for 2009 and 2010. The focus is
on the timely delivery of ordered systems and secondly on the development of
new markets through unique solutions. We do not expect any substantial
revenue in 2009 in the Solar market.