Business News
DOCDATA N.V. Announces its 2008 Year-end Results
Thursday 19. February 2009 - Positive developments enforce foundation of strategy 'Vision 2010: Gear to Growth': - Revenue increases 12% to EUR 78.6 million; - Operating profit (EBIT) increases 45% to EUR 5.4 million
Proposal to increase the dividend to EUR 0.30 per share from basic earnings per share of EUR 0.55 for 2008
Industrial Automation Integrators (IAI) changes name into IAI industrial systems and presents new logo
Results and Financial position for the financial year 2008
(in millions, except percentage 2008 2007
figures and per share data)
EUR % EUR %
Revenue
Internet service company Docdata 67.2 85.6 61.6 87.7
Technology company IAI industrial
systems 11.4 14.4 8.6 12.3
Total 78.6 100.0 70.2 100.0
Gross profit 22.8 29.0 17.7 25.2
Operating profit (EBIT)
Internet service company Docdata 2.7 3.5 1.4 2.0
Technology company IAI industrial
systems 2.7 3.4 2.3 3.3
Total 5.4 6.9 3.7 5.3
Result after tax from discontinued – – 0.4 0.6
operation
Profit for the year 3.7 4.7 3.4 4.8
Basic earnings per share 0.55 0.48
Diluted earnings per share 0.53 0.47
Balance sheet total 40.9 42.5
Equity 21.2 22.2
Solvency ratio (Equity / Balance
sheet total) 51.8% 52.3%
General
The strategy ‘Vision 2010: Gear to Growth’ is well on track for both the
Internet service company Docdata and the technology company IAI industrial
systems, which is shown in 2008 by a positive development of revenue and
operational profit. The divisions of the Internet service company, Docdata
fulfilment, Docdata commerce and Docdata payments, as well as the technology
company IAI industrial systems, have each realised growth in revenue of more
than 30%; of the total revenue growth, 19%-point has been realised through
autonomous growth. In 2009 we will continue the same route with autonomous
growth as the priority.
The strong growth of the Internet service company Docdata is for an
important part realised by the success of existing customers, and also by the
addition of new customers. We offer customers specific and full Internet
solutions. In the Benelux we are known 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 are not on
this level yet but we will work hard to achieve this in the next few years.
We will keep investing in people and systems to stay in first position. We
reached new milestones in 2008, for instance we processed more than 2 million
unique transactions in one month; transactions including realized orders,
payments, shipments and returns.
Michiel Alting von Geusau, CEO of DOCDATA N.V.: “The current economic
crisis will have an impact on online spending. The growth will slow down, but
also in 2009 more people will place more orders online, with correct and
timely handling of orders as one of the main conditions for success. The
growth in online sales will be at the expense of traditional retail.”
In the document security market Technology company IAI industrial systems
is seen as the highest quality supplier of production systems to personalise
and/or secure documents issued by governments. In 2008, IAI expanded the
product range considerably in the document security market through the
development of three new systems. This has resulted in 2008 in the delivery
of new high-end systems, enabling IAI to achieve excellent results. In
addition, IAI has an order book of EUR 10.8 million at the end of 2008. For
2009, we expect further growth.
As earlier announced, IAI has searched for an entrance in the growth
market of solar energy. In this market, IAI offers production systems for
solar cells or solar panels. Both in the Netherlands and Germany a network
has been built in 2008. Also a first production system was designed, built
and delivered. As a result of the current economic crisis we expect that
potential customers will postpone the purchase of new production systems
until they have more certainty about their funding.
Michiel Alting van Geusau, CEO of DOCDATA N.V.: “We are ideally
positioned in the document security market to compete with the major players
because of our high quality, reliable and customised systems. Despite the
credit crisis we expect that governments will continue to invest, and that
companies will eventually continue to invest in the development of clean
energy, possibly with governmental aid. Anyhow, we keep investing in new
developments.”
Major features of the financial results for the 2008 year-end
Revenue of DOCDATA N.V. has increased in 2008 with EUR 8.4 million to EUR
78.6 million (+12%). The realised gross profit has increased to EUR 22.8
million compared to EUR 17.7 million in 2007 (+29%). Gross profit margin
increased to 29% for the year 2008 and has therefore clearly risen over the
last couple of years (2007: 25.2%; 2006: 23.7%), which proves that the new
strategy is working.
In 2008, an operating profit before financing result (EBIT) has been
realised of EUR 5.4 million. The increase with EUR 1.7 million compared to
2007 (+45%) is for the largest part realised by the Internet service company
Docdata, predominantly as a result of the higher activity level.
The profit for the year 2008 is EUR 0.3 million (+9%) higher than in
2007. The improvement has been influenced by the non-recurring profit from
discontinued operation (net of income tax) of EUR 0.4 million in 2007, and by
the EUR 0.6 million higher income tax expenses in 2008. Profit before income
tax in 2008 is EUR 1.3 million (+36%) higher than in 2007.
The cash flow statement in the Appendix to the attached enclosure
‘Financial Information’ shows that DOCDATA N.V. has realised net cash from
operating activities of EUR 8.9 million in 2008. The spending of this cash is
shown in this cash flow statement as well.
DOCDATA N.V. has maintained its strong financial position with a solvency
ratio of 51.8% at 31 December 2008 (31 December 2007: 52.3%). Furthermore,
the cash surplus position has increased in 2008 with EUR 0.9 million to EUR
4.4 million (31 December 2007: EUR 3.5 million).
Mission statement
The mission statement of DOCDATA N.V. is “enabling success”; for clients,
as well as for our employees, shareholders and suppliers.
– For the Internet service company Docdata, this means the offering of
unique and reliable solutions to our clients which enable them to be
successful in their Internet business. The power is in the four
specialties that offer their services separately, while together
forming a unique total concept.
– For the technology company IAI industrial systems, this consists of
offering our clients unique (production) technologies with an extremely
high quality.
– For the DOCDATA N.V. shareholders, this has resulted in 2008 in
dividend distributions of EUR 1.7 million and share buyback programs
for EUR 1.9 million.
– For our employees, we offer a positive and challenging working
environment with sufficient possibilities for further development and
room for own initiatives.
Outlook
The focus in 2009 will be on autonomous profitable growth.
The focus for the 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 there as well in the coming years. 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 2008, but the order
portfolio for 2009 is well filled at the end of 2008. A substantial part of
the 2009 revenue will be realised by delivery of systems that were developed
in 2008. It is satisfying to notice that development efforts can lead to a
pay back on such a short term. With the further expansion in the document
security market and the entrance in the Solar market, IAI can face the year
2009 with confidence.
Dividend
Management of DOCDATA N.V. will propose to the shareholders at this
year’s annual General Meeting of Shareholders, in accordance with Article 28
of the Articles of Association of DOCDATA N.V., to decide to distribute to
all shareholders of ordinary shares a dividend amount of EUR 0.30 per
ordinary share out of the profit for the year 2008. The distribution will be
subject to dividend withholding taxes, unless the shareholder can proof that
substantial holding exemption can be claimed.
The dividend policy of DOCDATA N.V., adopted by the General Meeting of
Shareholders, is aimed at realising a high dividend return, for which a
payout ratio of at least 50% is the target. The liquidity and solvency
required for the execution of the strategy, will also be taken into
consideration.
At 31 December 2008, the issued share capital of DOCDATA N.V. consists of
7,000,000 ordinary shares with a nominal value of EUR 0.10 each. DOCDATA N.V.
currently holds 384,902 (5.50%) of these issued ordinary shares, which are
kept in order to fund the personnel options scheme and to finance future
acquisitions. Ordinary shares owned by the Company are not entitled to any
distribution of profit.
When the General Meeting of Shareholders decides to accept this proposal,
an amount of EUR 2 million will be distributed in May 2009 as dividend out of
the profit for the year 2008 on the ordinary shares, which are held by other
shareholders than the Company. The General Meeting of Shareholders shall be
held on Wednesday 13 May 2009 in Waalwijk. The dividend distribution will
lead to a limited decrease of the solvency ratio.
The dividend proposed by DOCDATA N.V. of EUR 0.30 per share (in total:
EUR 2 million), to be distributed out of the profit for the year 2008,
increases with 20% compared to the dividend of EUR 0.25 per share (in total:
EUR 1.7 million) that was distributed out of the profit for the year 2007; in
2007, a dividend of EUR 0.20 per share (in total: EUR 1.4 million) was
distributed out of the profit for the year 2006.