QPR Software Plc’s Financial Statements Bulletin: January–December
2023
QPR SOFTWARE
PLC
STOCK EXCHANGE
RELEASE 16
February 2024, AT 9.00 AM EET
QPR Software Plc's Financial Statement Bulletin
2023: SaaS net sales grew by 36%, and software
business by 8%. Net sales decreased by 3% due to the
discontinuation of consulting outside the core business in Finland.
The strategy was adjusted. A significant improvement in EBITDA and
cash flow turned positive.
FINANCIAL DEVELOPMENT BRIEFLY
OCTOBER-DECEMBER 2023
- SaaS net sales increased by +21% (53%)
- Net sales was 1,599 thousand euros, down -25% (October-December
2022: 2,142) due to company’s discontinuation of consulting outside
the core business
- EBITDA was -30 thousand euros (-430), a change from the
comparison period of 400 thousand
- The operating profit was -283 thousand euros (-681), a change
from the comparison period of 398 thousand
- Profit before taxes was -307 thousand euros (-745), change from
the comparison period 438 thousand
- The result was -307 thousand euros (-748), a change from the
comparison period of 441 thousand
- Earnings/share was -0.017 euros (-0.047)
- Cash flow from operations EUR 829 thousand (244)
JANUARY-DECEMBER 2023
- SaaS revenue increased by +36% (January-December 2022:
+35%)
- Net sales was 7,550 thousand euros and a decrease of 3% (7,823)
as the company focused on its core business
- EBITDA was 182 thousand euros (- 1,753), change from the
comparison period 1,935 thousand
- The operating result was – 813 thousand euros (- 2,770), change
to the comparison period 1,957 thousand
- The result before taxes was -924 thousand euros (-2,864), a
change from the comparison period of 1,940 thousand
- The result was -924 thousand euros (-2,686), a change from the
comparison period of 1,943 thousand
- Earnings/share was -0.055 euros (-0.202)
- Cash flow from operations EUR 849 thousand (-1,765)
- The company has reconciled the entries of the option
calculation for the first quarter, resulting in the EBITDA
decreasing from 26 thousand euros to -36 thousand euros. The
financial figures have therefore been reconciled for the entire
year.
OUTLOOK FOR 2024
The company monitors the development of the world's economic
situation and geopolitical tensions. The slowly budding recovery of
economic growth, falling interest rates and normalizing inflation
will improve the financial position of customers, and investment
decisions can be expected to accelerate towards the end of
2024.
Supported by the current contract base and the projected growth
of SaaS (Software as a Service) net sales, QPR expects the growth
of SaaS net sales to be double-digit and estimates that the entire
software net sales will grow in 2024 (2023: 5,122 thousand
euros).
The company expects the operating result to improve
significantly in the financial year 2024. The operating result in
2023 was -813 thousand euros.
CEO REVIEW:
"The year 2023 was a turning point for QPR in many ways, and
despite the challenging operating environment, we achieved
improvement in results as a whole. The changes we made produced
significant results with the company's profitability, cost and
organizational structure, refined strategy and focus on core
business.
SaaS net sales, which is at the core of our strategy, continued
to grow by 36% in January-December. The group's total net sales
decreased by 3% due to discontinuation of consulting services
outside the core business in Finland. Our software business grew by
8%. EBITDA improved significantly and was 182 thousand euros, an
improvement of approximately two million euros compared to the
comparison period. In addition, the operating cash flow grew to 849
thousand euros, while in 2022 it was about two million euros
negative. The group's total free cash flow was 108 thousand euros
and it improved approximately by 3.5 million euros.
In supporting the transformation efforts, the company organized
a directed share issue in the third quarter. This infusion
strengthened its capital and financial position, resulting in gross
assets of approximately 800 thousand euros. This shows confidence
in the company's turnaround trajectory and supports the execution
of its strategic initiatives.
QPR Software's mission is to innovate, develop and deliver
software for analyzing, monitoring, and modeling the operations of
organizations. QPR was named a visionary in the 2023 Magic
Quadrant™ for Process Mining Tools study published by Gartner in
March. In July 2023, Business Finland granted QPR a research grant
for the further development of the artificial intelligence and
machine learning features of our process mining technology.
In September, we announced the company's new positioning as a
leading player in Digital Twin of an Organization (DTO) technology.
QPR is the only player in the market whose product portfolio
includes all the different areas of the DTO solution for process
mining, modeling and managing strategy and digital transformation.
With this, the company streamlined its product portfolio to focus
exclusively on its core business as a software and SaaS provider,
also offering customized consulting services. The new positioning
improves the customer experience, increases the value we already
produce for our customers and effectively responds to the
environment's rapidly changing needs. The change in strategic focus
also gives QPR the opportunity to utilize our strengths more
effectively, adapt to market dynamics and achieve sustainable
success in our chosen market segments.
The market is typically dominated by large companies with
extensive resources and an established reputation. The compact
structure is our hidden strength and QPR has established strong,
sustainable customer and partner relationships with industry
giants. This indicates the quality and reliability of our products
and services. Our agility allows us to quickly adapt to changing
market demands, and to offer individual attention to our customers.
We managed to win new customers and expand cooperation with our
existing customers. In addition, we also won back customers who had
switched to our competitors in the meantime. Our agile delivery,
personalized service, and excellent return on investment (ROI) and
lower total cost of ownership (TCO) attracted users of competing
products.
The outlook for our presence in the Middle East market developed
positively. The negative effects of fixed-price software delivery
projects, which were sold in prior years, on the company's business
and profitability in 2022 and early 2023 were fully completed
during the second quarter of 2023. QPR is known in the market as a
visible and reputable vendor with a strong partner network. In
October, we concluded the first process mining SaaS contract in
this market with a local investment and finance company. Demand for
our products has been strong at the start of 2024.
One key goal during 2023 was to strengthen our global partner
network, in addition to increasing software sales and improving
profitability. An important step in this endeavor was to find
potential partners for the US market. Our process mining software,
QPR ProcessAnalyzer, stands out globally as the sole software
capable of running directly on the Snowflake Data Cloud. A
substantial part of Snowflake's clientele is in the US market. We
expect to be able to report on progress in early 2024.
We are entering the year 2024 with a positive and confident
mind. The market for process mining and the adoption of digital
solutions in company business development continue to experience
robust growth. I see many unique and exciting opportunities in our
industry. The slowly budding recovery of economic growth, falling
interest rates and normalizing inflation will improve the financial
position of customers, and investment decisions can be expected to
accelerate towards the end of 2024. We expect the operating results
to improve in the 2024 financial year.
I would like to warmly thank our customers, partners, QPR
investors and shareholders for their trust in QPR during 2023. I
would also like to thank all our employees for their dedication and
hard work for the company's future and success."
Heikki Veijola
Chief Executive Officer
KEY FIGURES
EUR in thousands,
unless otherwise indicated |
Oct-Dec,
2023 |
Oct-Dec,
2022 |
Change,
% |
Jan-Dec,
2023 |
Jan-Dec,
2022 |
Change,
% |
|
|
|
|
|
|
|
Net sales |
1,599 |
2,142 |
-25 |
7,550 |
7,823 |
-3 |
EBITDA |
-31 |
-430 |
93 |
182 |
-1,753 |
110 |
% of net
sales |
-1.9 |
-20.1 |
|
2.4 |
-22.4 |
|
Operating
result |
-283 |
-681 |
58 |
-813 |
-2,770 |
71 |
% of net
sales |
-17.7 |
-31.8 |
|
-10.8 |
-35.4 |
|
Result before
tax |
-307 |
-745 |
59 |
-924 |
-2,864 |
68 |
Result for the
period |
-307 |
-748 |
59 |
-924 |
-2,868 |
68 |
% of net
sales |
-19.2 |
-34.9 |
|
-12.2 |
-36.7 |
|
|
|
|
|
|
|
|
Earnings per
share, EUR
(basic and diluted) |
-0.017 |
-0.047 |
63 |
-0.055 |
-0.202 |
73 |
Equity per
share, EUR |
0.019 |
0.030 |
-35 |
0.020 |
0.030 |
-34 |
|
|
|
|
|
|
|
Cash flow from
operating
activities |
829 |
244 |
240 |
849 |
-1,798 |
147 |
Cash and cash
equivalents |
884 |
17 |
5,256 |
884 |
17 |
5,255 |
Net
borrowings |
934 |
2,262 |
-59 |
934 |
2,262 |
-59 |
Gearing,
% |
268.3 |
464.9 |
-42 |
268.3 |
464.9 |
-42 |
Equity ratio,
% |
8.1 |
7.4 |
9 |
8.1 |
7.4 |
9 |
Return on
equity, % |
-249.7 |
-319.2 |
22 |
-221.5 |
-625.7 |
65 |
Return on investment, % |
-57.6 |
-108.1 |
47 |
-42.0 |
-120.3 |
65 |
REPORTING AND BUSINESS
OPERATIONS
QPR Software Plc is a pioneer in business process optimization
solutions and has positioned itself as a leading player in Digital
Twin of an Organization (DTO) technology.
QPR innovates, develops, and delivers software for analyzing,
monitoring and modeling the operations of organizations. The
company also offers consulting services to ensure that customers
get full value from the software and associated methods.
QPR Software reports one business segment, which is
Organizational Development of organizations. In addition to this,
the Company reports revenue from products and services as follows:
Software licenses, Renewable software licenses, Software
maintenance services, Cloud services, and Consulting.
Recurring revenue reported by the Company consists of Software
maintenance services and SaaS net sales. In addition to these,
recurring revenue also includes Renewable software licenses. The
Company aims to increasingly focus on continuous services,
particularly in developing its Software-as-a-Service (SaaS)
business.
Software licenses are sold to customers for perpetual use or for
an agreed, limited period.
Renewable software licenses are sold to customers as a user
right with an indefinite-term contract. These contracts are
automatically renewed at the end of the agreed period, usually one
year, unless the agreement is terminated within the notice.
Renewable license revenue is recognized at one point in time, in
the beginning of the invoicing period, yet at the earliest on the
delivery.
The geographical areas reported are Finland, the rest of Europe
(including Russia and Turkey), and the rest of the world. Net sales
are reported according to the location of the customer’s
headquarters. The company has closed its business and partnerships
in Russia for the time being. Until 2023, the company provided
consulting services, predominantly to public administration, which
were unrelated to its core business. In the end of 2023, the
company discontinued these activities. In the future, the company
will prioritize offering consulting services tailored to the
software it develops, aiming to deliver maximum added value to its
customers.
NET SALES DEVELOPMENT
NET SALES BY PRODUCT
GROUP
EUR in thousands |
Oct-Dec,
2023 |
Oct-Dec,
2022 |
Change,
% |
Jan-Dec,
2023 |
Jan-Dec,
2022 |
Change,
% |
|
|
|
|
|
|
|
Software
licenses |
103 |
203 |
-49 |
485 |
560 |
-13 |
Renewable
software licenses* |
51 |
73 |
-30 |
504 |
583 |
-13 |
Software
maintenance services* |
448 |
417 |
7 |
1,720 |
1,803 |
-5 |
SaaS |
617 |
510 |
21 |
2,371 |
1,738 |
36 |
Consulting |
380 |
939 |
-60 |
2,469 |
3,139 |
-21 |
Total |
1,599 |
2,142 |
-25 |
7,550 |
7,823 |
-3 |
NET SALES BY GEOGRAPHIC
AREA
EUR in thousands |
Oct-Dec,
2023 |
Oct-Dec,
2022 |
Change,
% |
Jan-Dec,
2023 |
Jan-Dec,
2022 |
Change,
% |
|
|
|
|
|
|
|
Finland |
700 |
1,088 |
-36 |
3,499 |
4,126 |
-15 |
Europe incl.
Turkey |
723 |
876 |
-18 |
3,128 |
2,745 |
14 |
Rest of the world |
176 |
178 |
-1 |
923 |
953 |
-3 |
Total |
1,599 |
2,142 |
-25 |
7,550 |
7,823 |
-3 |
OCTOBER-DECEMBER 2023
The net sales for October-December was 1,599 thousand euros
(2,142), and it decreased by 25% compared to the comparison period.
The share of recurring net sales in the total net sales increased
by 23% and it was 67% of the total net sales (43).
The net sales of software licenses was 103 thousand euros (203),
and it decreased by 49% mainly due to the significant license
agreement concluded in the last quarter of 2022 with a global
pharmaceutical company.
The net sales of renewable software licenses was 51 thousand
euros (73), and it decreased by 30% due to the termination of
individual customer contracts and the negative exchange rate
effect. This was offset by price increases against inflationary
pressure.
The net sales of software maintenance services was 448 thousand
euros (417), and it grew by 7% due to the expansion of cooperation
with existing customers, new customer contracts, and price
increases against inflationary pressure. The growth was netted by
customer churn, the transition of existing customers to the SaaS
service model, and the negative effect of exchange rates.
SaaS net sales grew by 21% and was 617 thousand euros (510). The
increase in SaaS net sales was mainly a result of the company's
announcement in December 2022 of expanding the use of QPR
ProcessAnalyzer's SaaS solution with a global pharmaceutical
company. Growth was also influenced by successes in acquiring new
customers and expanding cooperation with existing ones. In
addition, growth was boosted by customers switching from licenses
to the SaaS service model and partly by price increases against
inflationary pressure. The negative effect of exchange rates and
customer churn, on the other hand, decreased SaaS turnover.
The consulting net sales was 380 thousand euros (939), and it
decreased by 60% when the company discontinued consulting outside
its core business in Finland. In addition, during the final quarter
of the reference year 2022, the company booked revenue from
fixed-price projects in the Middle East based on their respective
levels of completion. Fixed-price projects in the Middle East were
completed during the second quarter.
The Group’s net sales was 44% (63) from Finland, 39% (36) from
the rest of Europe (including Turkey) and 17% (1) from the rest of
the world.
JANUARY-DECEMBER 2023
The net sales in January-December was 7,550 thousand euros
(7,823). The share of recurring revenue was 61% (53). Net sales
decreased by 273 thousand euros (3%) because of the company's
decision to discontinue providing consulting services beyond its
core business to domestic public sector clients. The net sales of
the group's other business areas increased (8.5%).
The group's net sales increased in the rest of Europe by 383
thousand euros (14%), decreased in Finland by 665 thousand euros
(15%) and increased by 30 thousand euros (3%) in the rest of the
world. The growth in Europe was related to the expansion of the
software business and related consulting business in line with the
company's internationalization strategy. In Finland, the decline in
net sales occurred because consulting outside the previously
mentioned core business were discontinued. The decrease in net
sales in the rest of the world was primarily due to the end of
fixed-price software delivery projects sold to public
administration customers in the Middle East in the previous year’s
2020–2021. The projects in question were implementations of
software solutions in the application area of strategy and
performance management. The discussion about the possible
continuation of the completed projects with a new contract
structure has been ongoing, and project deliveries will most likely
start during the first half of 2024. The decrease in net sales was
balanced out by obtaining a substantial long-term maintenance
contract from the same customer, one year ahead of schedule; and by
securing new contracts with customers in the Middle East
market.
Of the net sales, 46% (50) derived from Finland, 42% (35) from
the rest of Europe (including Turkey), and 12% (12) from the rest
of the world.
SaaS net sales grew by 36%, to 2,371 thousand euros (1,738). The
increase in net sales from SaaS services was a result not only of
the expansion of the use of QPR ProcessAnalyzer's SaaS solution
with a global pharmaceutical company, announced by the company in
December 2022, but also because of other successful customer
expansions. The growth was also partly due to customers switching
from licenses to the SaaS service model, and partly due to the
company's price increases caused by inflationary pressure. SaaS
growth was also boosted by successes in new customer
acquisition.
Transitioning to SaaS invoicing, share of recurring revenue was
61% of total net sales. Aligning with company’s strategy, recurring
revenue increased by 8% from the comparison period. However,
license revenues declined compared to last year due to the
transition to SaaS and delays in customer decision-making prompted
by challenging market conditions.
Consulting net sales was 2,469 (3,139), and its decrease was due
to the discontinuation of outside the core business consulting in
Finland. The decrease in net sales related to the end of
fixed-price projects in the Middle East was compensated by the
increase in consulting related to the implementation of products
delivered to Europe.
FINANCIAL DEVELOPMENT
OCTOBER-DECEMBER 2023
The group's EBITDA in October-December was -31 thousand euros
(-430), and it was 400 thousand euros better compared to the
previous year. The operating result improved considerably and was
-283 thousand euros (-681), the change being 398 thousand euros
compared to the comparison period. Although the result for the
period was still negative, it improved significantly by 60%
compared to the previous year, from -748 thousand euros to -307
thousand euros. The company took active measures to improve its
cost structure and develop business profitability.
The variable expenses of the group amounted to 134 thousand
euros (411), primarily driven by the completion of demanding
fixed-price software delivery projects in the Middle East during
the second quarter of the year. This completion resulted in a
notable decrease in the requirement for external services, reducing
expenses.
The company's fixed expenses were 1,495 thousand euros (2,164),
and they decreased by 28% compared to the comparison period. This
was the result of saving program implementation and change
negotiations resulting in personnel cost decrease during last
quarter of 2022 and second quarter of 2023. The effect of these was
partially reduced by lower product development activations.
The bad dept provision, which is included in the fixed expenses
for the last quarter, was 5 thousand euros (29).
Earnings per share were EUR -0.017 (-0.047) per share.
JANUARY-DECEMBER 2023
The group's EBITDA was a positive 182 thousand euros (-1,753)
and the operating result was -813 thousand euros (-2,770). EBITDA
was significantly improved compared to the comparison period by the
company's strong cost-saving measures and the 8.5% growth of the
software business. EBITDA, on the other hand, was reduced by
discontinued public sector consulting projects in Finland, as well
as a fixed-price project in the Middle East that ended in the first
half of the year. In addition, the operating result was improved by
55% due to lower company office lease costs reported in
depreciation in accordance with IFRS.
The group's variable expenses were 896 thousand euros (1,552),
and they decreased by 42% compared to the comparison period.
Expenses decreased mainly after the completion of challenging
fixed-price software delivery projects in the Middle East during
the second quarter. With this, the need for the use of external
services decreased significantly. The impact of fixed-price
projects in the Middle East on the company's EBITDA for the first
half of the year was negative.
The group's fixed expenses were 6,473 thousand euros (8,028),
i.e. 19% lower than in the comparison period, due to personnel
reductions and layoffs implemented in the last quarter of 2022 and
the second quarter of 2023, as well as external cost savings.
Long-term product development investments decreased
significantly by 702 thousand euros and were 619 thousand euros
(1,321), which reduces the effect of the reduction in costs in the
comparison period.
The change in the provision for bad debts included in the fixed
costs of the reporting period was four thousand euros
(January-December 2022: 3).
Overall, the group’s expenses decreased by 17% compared to the
comparison period due to the company’s significant cost savings, as
well as lower subcontracting costs for projects in the Middle
East.
In 2023, the company's SaaS net sales grew by 36% and software
net sales as a whole by 8%. Net sales decreased in Finland, due to
the discontinuation of consulting outside the core business in
Finland, as well as the delay of follow-up projects in the Middle
East. The company responded to the changing challenges of the
business environment by implementing strong cost-saving measures
throughout the financial year.
In 2023, the company had a robust 36% growth in SaaS net sales
and an 8% increase in overall software net sales. There was a
decline in net sales in Finland, attributed to the discontinuation
of consulting activities outside the core business in that region,
along with delays in follow-up projects in the Middle East. To
address challenges within the business landscape, the company
proactively implemented strong cost-saving measures throughout the
fiscal year.
In addition to this, on October 19, 2023, the company carried
out change negotiations focused on the public administration
consulting unit, which resulted in the termination of a total of
nine positions. The savings from these measures will positively
affect the company's profitability in the second quarter of
2024.
In addition, as a result of the change negotiations announced on
December 14, 2023, and concluded on January 5, 2024, the company
aims for cost savings from the termination of a total of 10
positions. The company also strives to organize its operations more
efficiently, respond to changes in the operating environment, and
renew the organizational structure to achieve the company's
long-term growth and profitability goals.
The employment contracts, ended as a result of change
negotiations, will carry work obligation until the end of
employment. Thus, the company did not record provisions related to
change negotiations at the end of 2023.
The result for the review period was -924 thousand euros
(-2,868) and the earnings per share -0.055 euros (-0, 202).
FINANCE AND INVESTMENTS
Cash flow from operations during the review period was a
positive 849 thousand euros (–1,798). The change in operating cash
flow compared to 2022 was due to significant improvements in
operating profit and working capital. During the final quarter of
the year, the company garnered more of the annual revenue from its
expanding software business through advance payments, compared to
the previous year's corresponding period. Majority of annual
invoicing is around year end and is therefore seasonal by nature.
In addition to this, the company was able to collect its
receivables from completed projects in the Middle East and was able
to advance the start of a significant maintenance contract by a
year. The cash flow of projects in the Middle East improved by
approximately 300 thousand euros compared to 2022. Due to the
robust cost-saving measures implemented by the company, there was a
notable decrease in outgoing cash flow.
Net financing costs were 111 thousand euros (62), and they
included exchange losses of 14 thousand euros (20).
The investments were 620 thousand euros (1,353), and they were
mainly product development investments.
The net cash flow from financing was 639 thousand euros (2,726),
primarily driven by a directed share issue amounting to 760
thousand euros (2,937), alongside premises rents paid totaling 121
thousand euros (266).
The group's financial situation is fair. At the end of the
review period, the group's cash and cash equivalents were 884
thousand euros (17) and short-term receivables were 1,706 thousand
(3,452). 79% (82%) of receivables are denominated in euros and 53%
of invoices are not yet due. Of the total amount of short-term
receivables, the share of 1-30 days overdue receivables was 35%,
30-60 days 9% and more than 60 days 3%. The company was able to
improve its invoicing cycle and enhance its collection. In
addition, the group has available a credit limit of 500,000 euros.
At the end of the review period, the group had a bank loan of EUR
1,500 thousand, of which EUR 1,000 thousand was long-term.
In accordance with the original financing agreement, the first
installment of EUR 0.5 million is due on January 31, 2024. After
this, installments of EUR 0.5 million will mature annually in
January 2025 and 2026. The covenants related to the loan are based
on the company's EBITDA and equity ratio. The EBITDA of the
covenants is tested every six months, and the equity ratio is
tested annually according to the situation on the last day of the
year. In the testing carried out on 31 December 2023, EBITDA fell
below the agreed covenant limit. In December 2023, the bank pledged
not to exercise its receivables maturity right under the financing
agreement in the event of a potential violation of the group's
operating margin covenant as per the 2023 financial statements.
The company's free cash flow, operating and investment cash
flows, and office lease costs totaled 108 thousand euros (-3385).
The significant change was due to the improvement of operating cash
flow, lower cash flows from investments, and lower paid office
lease costs.
The equity ratio was 8.1% (7.4%), largely driven by the directed
share issue executed in the third quarter, which resulted in the
acquisition of 760 thousand euros in new equity capital.
Furthermore, the company's strengthened cash reserves, coupled with
the reduction of the head office lease term from 5.5 years to 3.5
years in June, have enhanced the equity ratio. The equity ratio was
reduced by the negative operating result of 924 thousand euros for
the financial year.
PRODUCT DEVELOPMENT
QPR has positioned itself as a leading player in Digital Twin of
an Organization (DTO) technology. The company innovates and
develops software products that analyze, measure, and model the
operations of organizations.
QPR innovates and develops software products that analyze,
measure, and model operations in organizations. The Company
develops the following software products: QPR ProcessAnalyzer, QPR
EnterpriseArchitect, QPR ProcessDesigner, and QPR
Metrics.
Product development expenses for the full year were 1,427
thousand euros (2,674) and product development expenses were
capitalized in the balance sheet of 637 thousand euros (1,336).
Product development depreciation was recorded at 782 thousand euros
(660). The amortization period for capitalized product development
expenses is four years.
PERSONNEL
At the end of the review period, the group employed 49 people
(85). The average number of personnel in 2023 was 57 (81).
The average age of the personnel is 46 (44) years. Women account
for 22% (26) of employees, and men for 78% (74). Of all personnel,
13% (17) work in sales and marketing, 44% (44) in consulting and
customer care, 33% (30) in product development, and 10% (9) in
administration.
Personnel expenses were 5,287 thousand euros (7,214), of which
the share of salaries and bonuses was 4,363 thousand euros
(5,995).
For incentive purposes, the company has a bonus program covering
the entire personnel. The top management's short-term remuneration
consists of monetary salary, fringe benefits and a possible annual
bonus, mainly determined by the net sales development of the group
and profit units. In addition, the company has a stock option
program for key personnel.
SHARES AND SHAREHOLDER
Trading of shares |
Jan-Dec,
2023 |
Jan-Dec,
2022 |
Change,
% |
|
|
|
|
Shares traded,
pcs |
3,538,455 |
2,263,135 |
56 |
Volume,
EUR |
1,585,931 |
2,315,155 |
-31 |
% of
shares |
19.8 |
14.1 |
41 |
Average
trading price, EUR |
0.45 |
1.02 |
-56 |
Average
trading value per day, EUR |
6,293 |
9,187 |
-31 |
Treasury
shares acquired during the year, pcs |
0 |
0 |
0 |
Shares and market capitalization |
Dec 31,
2023 |
Dec 31,
2022 |
Change,
% |
|
|
|
|
Total number
of shares, pcs |
18,175,192 |
16,455,321 |
10 |
Treasury
shares, pcs |
339,471 |
413,487 |
-18 |
Book counter
value, EUR |
0.11 |
0.11 |
- |
Outstanding
shares, pcs |
17,835,721 |
16,041,834 |
11 |
Number of
shareholders |
1,943 |
1,747 |
11 |
Closing price,
EUR |
0.33 |
0.56 |
-40 |
Market
capitalization, EUR |
5,957,131 |
8,983,427 |
-34 |
Book counter
value of all treasury
shares, EUR |
37,342 |
45,484 |
-18 |
Total purchase
value of all treasury
shares, EUR |
347,552 |
405,726 |
-14 |
Treasury shares, % of all shares |
1.9 |
2.5 |
-26 |
GOVERNANCE
The Annual General Meeting of QPR Software Plc was held May 3,
2023 in Helsinki. The Annual General Meeting adopted the Company's
financial statements for the financial year 2022 and discharged the
members of the Board of Directors and the CEO from liability. The
Annual General Meeting resolved that no dividend be paid based on
the balance sheet adopted for the financial year ended on December
31, 2022, further adopted the Company’s Remuneration Report, and
resolved to amend the Company’s Articles of Association. Further,
the Annual General Meeting resolved to reduce the share capital of
the Company, to authorize the Board of Directors to decide on share
issues and on the issue of other special rights entitling to shares
as well as on the acquisition of own shares.
Annual accounts and the use of the profit shown on the
balance sheet
The Annual General Meeting adopted the Company’s financial
statements and discharged the members of the Board of Directors and
the CEO from liability for the financial period January 1 –
December 31, 2022. The Annual General Meeting resolved that no
dividend be paid based on the balance sheet adopted for the
financial year ended on December 31, 2022.
Board of Directors and Auditor
According to the Nomination Committee, The Annual General
Meeting confirmed that the number of Board members is four. Pertti
Ervi was re-elected as the Chairman of the Board of Directors and
Matti Heikkonen, Antti Koskela, and Jukka Tapaninen were re-elected
as members of the Board of Directors.
The Authorised Public Accountants KPMG Oy Ab was re-elected as
the Company’s auditor. KPMG Oy Ab has announced that Petri
Kettunen, Authorized Public Accountant, will act as the principal
auditor.
Remuneration of the members of the Board of Directors
and the Auditor
The Nomination Committee proposed, and the Annual General
Meeting resolved that the Chairman of the Board of Directors be
paid EUR 45,000 per year and the other members of the Board of
Directors EUR 25,000 per year. Approximately 40 percent of the
remuneration will be paid in shares and 60 percent in cash. The
shares will be granted as soon as possible after the Annual General
Meeting and if the insider regulations allow it. The members of the
Board of Directors will also be reimbursed for travel and other
expenses incurred while they are managing the Company's
affairs.
The remuneration to the Auditor shall be paid according to the
reasonable invoice.
Amendment of the Articles of Association
The Annual General Meeting resolved to amend Articles 6 and 9 of
the Company’s Articles of Association. Article 6 was amended to
correspond to the responsibility for the auditor oversight
stipulated in the amended Finnish Auditing Act (1141/2015) and
further so that the term of the auditor shall end at the closing of
the first Annual General Meeting following the election. Article 9
was amended to enable holding a general meeting entirely without a
meeting venue as a so-called remote meeting in addition to the
Helsinki, Espoo and Vantaa. Further, said article was amended due
to certain legislation changes stipulating the matters to be
resolved upon in an Annual General Meeting.
Reduction of the share capital
The Annual General Meeting resolved to reduce the Company’s
registered share capital from EUR 1,359,090 to EUR 80,000, i.e. by
an aggregate amount of EUR 1,279,090, with the reduced amount of
EUR 1,279,090 being transferred to the reserve for invested
unrestricted shareholders’ equity. The reduction of the share
capital requires a public notice in accordance with the Finnish
Companies Act.
Authorization of the Board of Directors to decide on
share issues and on the issue of other special rights entitling to
shares
The Annual General Meeting resolved to authorize the Board of
Directors to decide on issuances of new shares and conveyances of
the own shares held by the Company (share issue) either in one or
more instalments. The share issues can be carried out against
payment or without consideration on terms to be determined by the
Board of Directors. The authorization also includes the right to
issue special rights referred to in Chapter 10, Section 1 of the
Finnish Companies Act, which entitle to the Company's new shares or
own shares held by the Company against consideration. Based on the
authorization, the maximum number of new shares that may be issued
and own shares held by the Company that may be conveyed in share
issues or on the basis of special rights referred to in Chapter 10,
Section 1 of the Finnish Companies Act is 3,200,000 shares. The
authorization includes the right to deviate from the shareholders'
pre-emptive subscription right. The authorization is in force until
the next Annual General Meeting.
Authorization of the Board of Directors to decide the
acquisition of own shares
The Annual General Meeting resolved to authorize the Board of
Directors to decide on the acquisition of the Company’s own shares.
Based on the authorization, an aggregate maximum amount of 500,000
own shares may be acquired, either in one or more instalments. The
authorization includes the right to acquire own shares otherwise
than in proportion to the existing shareholdings of the Company’s
shareholders, using the Company’s non-restricted shareholders’
equity. The authorization is in force until the next Annual General
Meeting.All related materials can be found in the Investors section
on the company's website.
The Nomination Board
The Shareholders' Nomination Board of QPR Software Plc is a body
of QPR Software’s shareholders responsible for preparing proposals
to the Annual General Meeting for the election and remuneration of
the members of the Board of Directors, and the remuneration of the
Board committees. The Nomination Board consists of three members
who represent QPR Software’s three largest shareholders who, on
August 30 preceding the next year’s Annual General Meeting, hold
the largest number of votes calculated of all shares in QPR
Software.
The Nomination Board is chaired by Roger Kempe, representing Oy
Finncorp Ab, and consists of Erkki Myllärniemi, representing UMO
Capital Oy, and Eero Leskinen, representing Vesa-Pekka
Leskinen.
The Nomination Board submits the following proposals to the
Annual General Meeting, which is planned to be held on May 15,
2024. The proposals will be also included in the notice to the
Annual General Meeting, which will be published separately later
on.
Electing Board members and the Chairman
The Nomination Board proposes to the Annual General Meeting that
Pertti Ervi, Antti Koskela and Jukka Tapaninen be re-elected as
Board members. Current Board member Matti Heikkonen has informed
the Nomination Board that he is no longer available for
re-election. The Nomination Board further proposes that Linda von
Schantz be elected to the Board of QPR Software as a new member.
All the nominees have given their consent to the position, and they
are independent of the Company and of the Company’s significant
shareholders.
Furthermore, the Nomination Board proposes that Pertti Ervi be
re-elected as the Chairman of the Board.
The curriculum vitae of the proposed new member of the Board,
Linda von Schantz, is attached to this stock exchange release.
Information about the experience and previous positions of the
persons proposed to be re-elected as Board members is available on
QPR's website at:
https://www.qpr.com/company/board-of-directors
Deciding on the remuneration of the Board
members
The Nomination Board proposes that the remuneration of the Board
members be kept unchanged. According to the proposal, the Chairman
of the Board will be paid EUR 45,000 per year and the other Board
members EUR 25,000 per year. Approximately 40% of the
above-mentioned remuneration is paid in shares and 60% in cash. The
Shares will be transferred at earliest after the General Meeting
election and in accordance with the insider trading
regulations.
Furthermore, the Nomination Board proposes that the members of
the Board of Directors will be reimbursed for travel and other
expenses incurred while they are managing the Company's
affairs.
SHORT-TERM RISKS AND UNCERTAINTIES
Internal control and risk management at QPR Software aim to
ensure that the Company operates efficiently and effectively,
distributes reliable information, complies with regulations and
operational principles, reaches its strategic goals, reacts to
changes in the market and operational environment, and that
business continuity is secured considering the financial
position.
The Company has identified the following three groups of risks
related to its operations: risks related to business operations
(country, customer, personnel, legal), risks related to information
and products (QPR products, IPR, data privacy, and security), and
risks related to financing and liquidity (foreign currency,
short-term cash flow).
The Company has an insurance policy covering property,
operational, and liability risks. Financial risks include
reasonable credit risk concerning individual business partners,
which is characteristic of any international business. QPR seeks to
limit this credit risk by continuously monitoring standard payment
terms, receivables, and credit limits.
Approximately 78% of the Group’s trade receivables were in euros
at the end of the quarter (60%). At the end of the quarter, the
Company had not hedged its non-euro trade receivables.
SIGNIFICANT EVENTS DURING THE FINANCIAL
PERIOD
Renewal of the financing agreement
During the first quarter of the fiscal year 2023, the company
renewed its 1.5-million-euro financing agreement with Nordea from
short-term to long-term.
Amendment of the articles of association
The decisions of the general meeting and changes to the articles
of association have been registered in the trade register on May
25, 2023.
Reduction of share capital
In the third quarter of the fiscal year, the company reduced its
parent company's share capital to 80,000 euros. The share capital
reduction has been registered in the trade register on 14 September
2023.
Directed share issue
On August 22, 2023, the company's board of directors decided on
a directed share issue, in which 1,719,871 shares were issued,
based on the authorization granted to the board by the company's
annual general meeting held on May 3, 2023.
In the share issue, a total of 1,719,871 shares were subscribed
at a subscription price of EUR 0.463 per share, which corresponds
to the volume-weighted average price of the Company's share for the
last five (5) days in Nasdaq Helsinki Oy, including the closing
price of the Company's share on August 22, 2023, and a
corresponding discount of EUR 0.001 to the closing price of the
Company's share on August 22, 2023. The subscription price was
fully subscribed to the Company's invested unrestricted equity
fund.
As a result of the share issue, the company received gross
income of around 800,000 euros. The main purpose of the share issue
is to strengthen the Company's capital and financial position.
Flaggings
On 23 August 2023, QPR Software Plc received a notification from
AC Invest Oy pursuant to Chapter 9, Section 5 of the Securities
Markets Act (AML), according to which its direct share ownership of
QPR Software Plc's total number of shares and votes has decreased
under (5) percent.
On 23 August 2023, QPR Software Plc received a notification from
Vesa-Pekka Leskinen pursuant to Chapter 9, Section 5 of the
Securities Markets Act (AML), according to which his direct share
ownership of QPR Software Plc's total number of shares and votes
has decreased under ten (10) percent.
On 23 August 2023, QPR Software Plc received a notification from
Oy Fincorp Ab pursuant to Chapter 9, Section 5 of the Securities
Markets Act (AML), according to which its direct share ownership of
QPR Software Plc's total number of shares and votes has increased
to more than twenty (20) percent.
The Bord of Directors published a new option
program
On September 6, 2023, the company announced that the company's
board of directors has decided on a new stock option program on
September 6, 2023, based on the authorization given by the
company's annual general meeting on May 3, 2023, where the key
personnel of the company and its subsidiaries can receive stock
options entitling them to subscribe to the company's shares.
A maximum of 1,000,000 stock options were issued, and they
entitle their holders to subscribe for a maximum of 1,000,000 new
or existing Company Shares. The Board of Directors decides whether
the subscriber will be given new or the Company's own Shares.
Option rights are granted free of charge. All 1,000,000 Warrants
are marked with the code 2023. The terms of the stock options are
available on the company's website in the Investors section.
The stock exchange releases related to the option program can be
read on the company's website in the Investors/Stock market and
press releases section.
Changes in the company's management
The company's CEO Jussi Vasama left his position and Heikki
Veijola started as CEO on March 1, 2023.
The director of the consulting business, Samuel Rinnetmäki,
moved outside the company and Teemu Lehto became a member of the
management team as the new director responsible for the consulting
business on March 1, 2023.
The company announced on June 27, 2023, that QPR Software Oyj
and Chief Revenue Officer Eric Allart have agreed that Allart will
leave his position in the company. Allart's work obligation in the
company ended immediately. CEO Heikki Veijola is currently serving
as the company's interim Chief Revenue Officer.
Also, Director, People & Culture Johanna Lähde has also left
the company during the second quarter of the year.
Change negotiations
In the second quarter of the fiscal year 2023, the company
started change negotiations in order to improve the profitability
of the business and to enhance the implementation of the company's
strategy. As a result of the change negotiations, 7 people were
dismissed from the company and about 39 people were laid off
part-time or full-time.
In October 2023, the company concluded 9 positions regarding
change negotiations for consulting outside its core business. The
savings from the concluded positions, will start realizing from
year 2024.
In December, the company published its adjusted strategy and
initiated change negotiation on December 14, 2023, aimed at
aligning the organization with the updated approach. These
negotiations concluded after the fiscal year on January 5, 2024. As
part of this process, the company will be reducing 10 positions.
The savings related to these reductions, will start realising
during 2024.
Profit warning
QPR issued a profit warning on October 16, 2023, in which the
company estimated that the net sales will remain close to the
previous year, but that it will achieve a clearly positive
EBITDA.
Adjusted strategy
QPR Software Plc refined its current strategy to reflect market
changes and the Company's priority areas, and to announce renewed
financial goals for the strategy period.
The Company's mission is to innovate, develop and deliver
software for analyzing, monitoring, and modeling the organizations’
operations. The Company also offers consulting services to ensure
that customers get full value from the software and related
methods.
In accordance with the adjusted strategy (2024–2027), the
Company focuses its business on the international growth of SaaS
solutions offered by Digital Twin of an Organization (DTO) and the
process mining at its core. The Company's DTO offering also
includes software developed for modeling and managing and measuring
the organization's strategy and performance. The Company's revised
financial goals for the strategic period 2024–2027 are average
twenty (20) percent annual SaaS growth, and sustainable operating
profit.
The Company also continues to build new strategic partner
networks in accordance with the strategy announced on March 10,
2022, to achieve a scalable Go-to-Market model, expand its own
offering and improve the value it provides to its customers
together with technology and implementation partners. The Company
concentrates its growth investments in Europe and the Middle East
and, through a partner network, on new market areas such as North
America.
Additional information on all relevant events can be found on
the company's website in the Investors/Stock exchange and press
releases section.
EVENTS AFTER THE REVIEW PERIOD
Change in organizational structure and change
negotiations
On December 14, 2023, QPR Software Plc announced its adjusted
strategy and the planned change in its organizational structure to
support it and submitted a negotiation proposal in accordance with
the related Cooperation Act to start the change negotiations. The
change negotiations were completed on Thursday, January 4,
2024.
In the change negotiations, the Company planned to change its
organizational structure related to the adjusted strategy. The goal
of the planned changes is to support a more efficient organization
of QPR's operations, to try to respond to changes in the operating
environment, and to renew the organization's structure in order to
achieve the Company's long-term growth and profitability goals.
Change negotiations were held separately in both QPR Software
Plc and QPR Services Oy. As a result of the negotiations, the
Company will terminate a maximum of four positions at QPR Software
Oyj and a maximum of six positions at QPR Services Oy.
QPR Software Plc signed the first partner agreement in
North America and received an affirmative decision on Business
Finland's support for market mapping
QPR Software's unique process mining software, QPR
ProcessAnalyzer, is globally the only software running natively in
the Snowflake Data Cloud. This means solving performance,
scalability, and security issues for customers. The majority of
Snowflake's customers are in the US market. In accordance with its
strategy, QPR aims to expand to the North American market,
utilizing the partner network that is being built there.
An important step in this endeavor is the signing of a
significant partnership agreement with Solution BI on January 16,
2024. The agreement includes resale rights for QPR ProcessAnalyzer
in the United States, Canada and Mexico. QPR Software also
cooperates with Solution BI in the Middle East region.
In addition, on January 30, 2024, Business Finland approved QPR
Software Plc's Market Explorer funding, which is used to
investigate business opportunities and map markets in North
America. Granted support covers 50% of incurred costs, upper limit
39,995 euros. This financial support is intended to facilitate the
mapping of the company's new markets and to promote the conditions
for the internationalization of the business.
FINANCIAL REPORTING
QPR will publish three Interim Reports in 2024:
- Interim Report January–March 2024 on Wednesday 19 April
2024
- Half-year Financial Report January-June 2024 on Friday 2 August
2024
- Interim Report January-September 2024 on Friday 25 October
2024
QPR Software's financial statement bulletin, activity report,
audit report, and report on the corporate governance system for the
financial year 2023 will be published on Friday, February 16,
2024.
QPR's Annual Report 2023 will be published on Friday, March 22,
2024.
QPR's Annual General Meeting 2024 is scheduled to be held on
Wednesday 15 May 2024. The Board of Directors convenes the Annual
General Meeting with an invitation to be announced later.
QPR SOFTWARE PLC
BOARD OF DIRECTORS
For further information:
Heikki Veijola
Chief Executive Officer
QPR Software Plc
Tel. +358 40 922 6029
About QPR Software
QPR Software Plc (Nasdaq Helsinki) provides process mining,
performance management, and enterprise architecture solutions for
digital transformation, strategy execution, and business process
improvement in over 50 countries. QPR software allows customers to
gain valuable insights for informed decisions that make a
difference.
www.qpr.com
DISTRIBUTION
Nasdaq Helsinki
Key medias
www.qpr.com
FINANCIAL STATEMENT INFORMATION
CONSOLIDATED COMPREHENSIVE INCOME
STATEMENT
EUR in thousands, unless
otherwise indicated |
Oct-Dec,
2023 |
Oct-Dec,
2022 |
Change,
% |
Jan-Dec,
2023 |
Jan-Dec,
2022 |
Change,
% |
|
|
|
|
|
|
|
Net sales |
1,599 |
2,142 |
-25 |
7,550 |
7,823 |
-3 |
Other
operating income |
- |
4 |
- |
1 |
4 |
- |
|
|
|
|
|
|
|
Materials and
services |
134 |
411 |
-67 |
896 |
1,552 |
-42 |
Employee
benefit expenses |
1,202 |
1,951 |
-38 |
5,287 |
7,214 |
-27 |
Other operating expenses |
294 |
214 |
37 |
1,186 |
814 |
46 |
EBITDA |
-31 |
-430 |
93 |
182 |
-1,753 |
110 |
|
|
|
|
|
|
|
Depreciation and amortization |
252 |
251 |
0 |
995 |
1,017 |
-2 |
Operating
result |
-283 |
-681 |
58 |
-813 |
-2,770 |
71 |
|
|
|
|
|
|
|
Financial
income and expenses |
-24 |
-32 |
-23 |
-111 |
-62 |
81 |
Provisions |
- |
-33 |
- |
- |
-33 |
- |
Result before tax |
-307 |
-745 |
59 |
-924 |
-2,864 |
68 |
|
|
|
|
|
|
|
Income taxes |
0 |
-3 |
- |
0 |
-3 |
- |
Result for the
period |
-307 |
-748 |
59 |
-924 |
-2,868 |
68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share, EUR
(basic and diluted) |
-0.017 |
-0.047 |
63 |
-0.055 |
-0.202 |
73 |
|
|
|
|
|
|
|
Consolidated
statement of
comprehensive income: |
|
|
|
|
|
|
Result
for the period |
-307 |
-748 |
59 |
-924 |
-2,868 |
68 |
Exchange differences on
translating foreign operations |
0 |
-1 |
- |
-1 |
-2 |
-51 |
Total comprehensive income |
-307 |
-749 |
59 |
-925 |
-2,870 |
68 |
CONDENSED CONSOLIDATED BALANCE
SHEET
EUR in thousands |
Dec 31,
2023 |
Dec 31,
2022 |
Change,
% |
|
|
|
|
Assets |
|
|
|
|
|
|
|
Non-current
assets: |
|
|
|
Intangible assets |
2,245 |
2,411 |
-7 |
Goodwill |
358 |
358 |
0 |
Tangible
assets |
81 |
171 |
-53 |
Right-of-use assets |
318 |
756 |
-58 |
Other non-current assets |
277 |
277 |
0 |
Total
non-current assets |
3,279 |
3,973 |
-17 |
|
|
|
|
Current
assets: |
|
|
|
Trade
and other receivables |
1,706 |
3,452 |
-51 |
Cash and cash equivalents |
884 |
17 |
5257 |
Total current
assets |
2,590 |
3,469 |
-25 |
|
|
|
|
Total assets |
5,869 |
7,442 |
-21 |
|
|
|
|
Equity and
liabilities |
|
|
|
|
|
|
|
Equity: |
|
|
|
Share
capital |
80 |
1,359 |
-94 |
Other
funds |
21 |
21 |
0 |
Treasury
shares |
-348 |
-406 |
-14 |
Translation differences |
-67 |
-66 |
-1 |
Invested
non-restricted equity fund |
4,925 |
2,943 |
67 |
Retained earnings |
-4,263 |
-3,364 |
-27 |
Equity
attributable to shareholders of
the parent company |
348 |
487 |
-28 |
|
|
|
|
Non-current
liabilities: |
|
|
|
Interest-bearing liabilities |
1,000 |
- |
- |
Interest-bearing lease liabilities |
192 |
609 |
-68 |
Total
non-current liabilities |
1,192 |
609 |
96 |
|
|
|
|
Current
liabilities: |
|
|
|
Provisions |
- |
33 |
- |
Interest-bearing liabilities |
500 |
1,521 |
-67 |
Interest-bearing lease liabilities |
126 |
149 |
-15 |
Advances
received |
1,558 |
885 |
76 |
Accrued
expenses and prepaid income |
1,539 |
2,598 |
-41 |
Trade and other payables |
607 |
1161 |
-48 |
Total current
liabilities |
4,329 |
6,346 |
-32 |
|
|
|
|
Total
liabilities |
5,521 |
6,955 |
-21 |
|
|
|
|
Total equity and liabilities |
5,869 |
7,442 |
-21 |
CONSOLIDATED CONDENCED CASH FLOW
STATEMENT
EUR in thousands |
Oct-Dec,
2023 |
Oct-Dec,
2022 |
Change,
% |
Jan-Dec,
2023 |
Jan-Dec,
2022 |
Change,
% |
|
|
|
|
|
|
|
Cash flow from
operating activities: |
|
|
|
|
|
|
Result
for the period |
-307 |
-748 |
59 |
-924 |
-2,868 |
68 |
Adjustments to the result |
271 |
72 |
274 |
1,078 |
874 |
23 |
Working
capital changes |
875 |
969 |
-10 |
821 |
307 |
167 |
Interest
and other financial
expenses paid |
-2 |
-29 |
-93 |
-107 |
-58 |
85 |
Interest
and other financial
income received |
0 |
0 |
- |
0 |
0 |
- |
Income taxes paid |
-8 |
-21 |
-63 |
-19 |
-21 |
-11 |
Net cash from
operating activities |
829 |
244 |
240 |
849 |
-1,765 |
148 |
|
|
|
|
|
|
|
Cash flow from
investing activities: |
|
|
|
|
|
|
Purchases of tangible and
intangible assets |
-108 |
-189 |
-43 |
-620 |
-1,355 |
-54 |
Net cash used
in investing activities |
-108 |
-189 |
-43 |
-620 |
-1,355 |
-54 |
|
|
|
|
|
|
|
Cash flow from
financing activities: |
|
|
|
|
|
|
Proceeds
from short term
borrowings |
- |
21 |
- |
1,500 |
1,521 |
-1 |
Repayments of short term
borrowings |
- |
- |
- |
-1,500 |
-1,500 |
0 |
Payment
of lease liabilities |
-17 |
-82 |
-79 |
-121 |
-266 |
-55 |
Share issue net |
- |
-11 |
- |
760 |
2,937 |
-74 |
Net cash used
in financing activities |
-17 |
-72 |
-76 |
639 |
2,692 |
-76 |
|
|
|
|
|
|
|
Net change in
cash and cash
equivalents |
703 |
-18 |
4055 |
868 |
-427 |
303 |
Cash and cash
equivalents
at the beginning of the period |
181 |
36 |
406 |
17 |
441 |
-96 |
Effects of exchange rate changes
on cash and cash equivalents |
0 |
-1 |
100 |
0 |
3 |
-107 |
Cash and cash equivalents
at the end of the period |
884 |
17 |
5256 |
884 |
17 |
5255 |
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
EUR in thousands |
Share
capital |
Other
funds |
Translation
differences |
Treasury
shares |
Invested non-
restricted
equity fund |
Retained
earnings |
Total |
Equity Jan 1, 2022 |
1,359 |
21 |
-68 |
-439 |
5 |
-448 |
430 |
Stock option
scheme |
|
|
|
|
|
-47 |
-47 |
Disposal of
own shares |
|
|
|
34 |
|
|
34 |
Share issue
,net |
|
|
|
|
2,937 |
|
2,937 |
Comprehensive income |
|
|
2 |
|
|
-2,870 |
-2,868 |
Equity Dec 31, 2022 |
1,359 |
21 |
-66 |
-406 |
2,943 |
-3,364 |
487 |
Stock option
scheme |
|
|
|
|
|
36 |
36 |
Reduction of
share capital |
-1,279 |
|
|
|
1,279 |
|
0 |
Disposal of
own shares |
|
|
|
58 |
|
-10 |
48 |
Share issue
,net |
|
|
|
|
703 |
|
703 |
Comprehensive income |
|
|
-1 |
|
|
-924 |
-925 |
Equity Dec 31, 2023 |
80 |
21 |
-67 |
-348 |
4,925 |
-4,263 |
348 |
NOTES TO INTERIM FINANCIAL STATEMENTS
ACCOUNTING PRINCIPLES
This report complies with the requirements of IAS 34” Interim
Financial Reporting”. Starting from the beginning of 2022, the
Group has applied certain new or revised IFRS standards and IFRIC
interpretations, as described in the previous Consolidated
Financial Statements. The implementation of these new and revised
requirements has not impacted on the reported figures. For all
other parts, the accounting principles and methods are the same as
in the previous financial statements.
Considering the company's financial position, this financial
statement has been prepared on a going concern basis. The company
entered into a refinancing agreement in January 2023.
In preparation of the consolidated interim report, company’s
management is required to make estimates and assumptions regarding
the future and to consider the appropriate application of
accounting principles, which means that actual results may differ
from those estimated.
All amounts presented in this report are consolidated figures,
unless otherwise noted. The amounts presented in the report are
rounded, so the sum of individual figures may differ from the sum
reported.
INTANGIBLE AND TANGIBLE
ASSETS
EUR in thousands |
Jan-Dec,
2023 |
Jan-Dec,
2022 |
|
|
|
Increase in
intangible assets: |
|
|
Acquisition cost Jan 1 |
14,217 |
12,846 |
Increase |
619 |
1,371 |
|
|
|
Increase in
tangible assets: |
|
|
Acquisition cost Jan 1 |
2,816 |
2,705 |
Increase |
0 |
111 |
CHANGE IN INTEREST-BEARING LIABILITIES
EUR in thousands |
Jan-Dec,
2023 |
Jan-Dec,
2022 |
|
|
|
Interest-bearing liabilities Jan 1 |
2,279 |
1,682 |
Proceeds from
borrowings |
1,500 |
597 |
IFRS 16 |
-319 |
- |
Repayments |
1,641 |
- |
Interest-bearing liabilities Dec 31 |
1,818 |
2,279 |
PLEDGES AND
COMMITMENTS
EUR in thousands |
Dec 31,
2023 |
Dec 31,
2022 |
Change,
% |
|
|
|
|
Business
mortgages (held by the Company) |
2,382 |
2,382 |
0 |
|
|
|
|
Minimum lease
payments based on lease agreements: |
|
|
|
Maturing
in less than one year |
30 |
47 |
-36 |
Maturing in 1-5 years |
27 |
80 |
-66 |
Total |
57 |
127 |
-55 |
|
|
|
|
Total pledges and commitments |
2,439 |
2,509 |
-3 |
CONSOLIDATED INCOME STATEMENT BY
QUARTER
EUR in thousands |
Oct-Dec,
2023 |
July-Sept,
2023 |
April-June,
2023 |
Jan-Mar,
2023 |
Oct-Dec,
2022 |
|
|
|
|
|
|
Net sales |
1,599 |
1,806 |
1,908 |
2,237 |
2,142 |
Other operating
income |
- |
- |
1 |
- |
4 |
|
|
|
|
|
|
Materials and
services |
134 |
147 |
221 |
394 |
411 |
Employee benefit
expenses |
1,202 |
1,056 |
1,368 |
1,661 |
1,951 |
Other operating expenses |
294 |
361 |
313 |
218 |
214 |
EBITDA |
-31 |
242 |
7 |
-36 |
-430 |
|
|
|
|
|
|
Depreciation and amortization |
252 |
254 |
238 |
251 |
251 |
Operating
result |
-283 |
-12 |
-231 |
-287 |
-681 |
|
|
|
|
|
|
Financial income
and expenses |
-24 |
-25 |
-23 |
-39 |
-32 |
Provisions |
- |
- |
- |
- |
-33 |
Result before tax |
-307 |
-37 |
-254 |
-326 |
-745 |
|
|
|
|
|
|
Income taxes |
0 |
- |
5 |
-5 |
-3 |
Result for the period |
-307 |
-37 |
-249 |
-331 |
-748 |
GROUP KEY
FIGURES
EUR in thousands, unless
otherwise indicated |
Jan-Dec or
Dec 31, 2023 |
Jan-Dec or
Dec 31, 2022 |
|
|
|
Net sales |
7,550 |
7,823 |
Net sales
growth, % |
-3.5 |
-14.4 |
EBITDA |
182 |
-1,753 |
% of net
sales |
2.4 |
-22.4 |
Operating
result |
-813 |
-2,770 |
% of net
sales |
-10.8 |
-35.4 |
Result before
tax |
-924 |
-2,864 |
% of net
sales |
-12.2 |
-36.6 |
Result for the
period |
-924 |
-2,868 |
% of net
sales |
-12.2 |
-36.7 |
|
|
|
Return on
equity (per annum), % |
-221.5 |
-625.7 |
Return on
investment (per annum), % |
-42.0 |
-120.3 |
Cash and cash
equivalents |
884 |
17 |
Net
borrowings |
934 |
2,262 |
Equity |
348 |
487 |
Gearing,
% |
268 |
464.9 |
Equity ratio,
% |
8.1 |
7.4 |
Total balance
sheet |
5,869 |
7,442 |
|
|
|
Investments in
non-current assets * |
637 |
2324 |
% of net
sales |
8.4 |
30 |
Product
development expenses |
1,427 |
2,674 |
% of net
sales |
18.9 |
34 |
|
|
|
Average number
of personnel |
57 |
81 |
Personnel at
the beginning of period |
85 |
80 |
Personnel at
the end of period |
49 |
85 |
|
|
|
Earnings per
share, EUR
(basic and diluted) |
-0.055 |
-0.202 |
Equity per share, EUR |
0.020 |
0.030 |
*adjustment for the previous reporting periods |
|
Grafico Azioni Qpr Software (LSE:0OA2)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Qpr Software (LSE:0OA2)
Storico
Da Apr 2023 a Apr 2024