TIDMQPR1V
QPR SOFTWARE STOCK EXCHANGE RELEASE, October 24, 2019 AT 9.00 AM
Strong growth in process mining continued
January -- September 2019
-- Net sales amounted to EUR 7,015 thousand (1-9 2018: 7,376).
-- Process mining software QPR ProcessAnalyzer's net sales grew by 42%, but
group net sales decreased by 5% due to decline in modeling and
performance management software net sales.
-- Operating result EUR -90 thousand (391). The decrease in operating result
was due to decrease in net sales, as well as outlays in growth business
areas.
-- Operating result -1% of net sales (5).
-- Result before taxes EUR -113 thousand (207).
-- Result for the reporting period EUR -42 thousand (131).
-- Earnings per share EUR -0.004 (0.011).
July - September 2019
-- Net sales amounted to EUR 1,981 thousand (Q3 2018: 2,222).
-- Process mining software QPR ProcessAnalyzer's net sales growth was strong,
but group net sales decreased due to decline in performance management,
modeling software and consulting net sales.
-- Operating result EUR -119 thousand (109). The decrease in operating
result was due to decline in net sales and outlays in growth business
areas.
-- Operating result -6% of net sales (5).
-- Result before taxes EUR -116 thousand (113).
-- Result for the quarter EUR -85 thousand (91).
Outlook and guidance for the year 2019 remains unchanged, in accordance
with the stock exchange release published on 15 October, 2019.
Business operations
QPR Software's mission is to make customers agile and efficient in their
operations. We innovate, develop, and sell software aimed at analyzing,
monitoring, and modeling operations in organizations. Furthermore, we
offer customers a variety of consulting services.
OUTLOOK
Operating environment and market outlook
In recent years, QPR Software has invested heavily in developing the
company's process mining software, as well as renewing all user
interfaces of its software products. We estimate that the demand for
process mining software and related services will continue to grow
rapidly over the course of 2019.
In developed markets, we expect the competition for process and
enterprise architecture modeling and performance management software to
remain tight.
Outlook for 2019
QPR estimates net sales to decrease in 2019 (2018: EUR 10,047 thousand),
and operating result (EBIT) to be slightly negative (0 -- 4% of net
sales). Process mining business is expected to continue its strong
growth in the last quarter of the year.
Mid-term financial targets
The Company's mid-term target in 2020 -- 2022 is to grow net sales by an
average of 15 -- 20% per annum. The target is mainly based on
international net sales growth in process mining, where we target an
annual growth of over 50%.
KEY FIGURES
EUR in thousands, Jul-Sep, Jul-Sep, Change, Jan-Sep, Jan-Sep, Change, Jan-Dec,
unless otherwise indicated 2019 2018 % 2019 2018 % 2018
Net sales 1,981 2,222 -11 7,015 7,376 -5 10,047
EBITDA 188 348 -46 838 1,109 -24 1,470
% of net sales 9.5 15.7 11.9 15.0 14.6
Operating result -119 109 -209 -90 391 -123 521
% of net sales -6.0 4.9 -1.3 5.3 5.2
Result before tax -116 113 -203 -113 207 -155 335
Result for the period -85 91 -194 -42 131 -132 320
% of net sales -4.3 4.1 -0.6 1.8 3.2
Earnings per share,
EUR
(basic and diluted) -0.007 0.008 -194 -0.004 0.011 -132 0.027
Equity per share, EUR 0.227 0.216 5 0.227 0.216 5 0.231
Cash flow from operating
activities -59 -563 90 937 1,176 -20 1,335
Cash and cash equivalents 470 534 -12 470 534 -12 505
Net borrowings -116 -534 -78 -116 -534 -78 -505
Gearing,% -4.1 -19.9 -79 -4.1 -19.9 -79 -17.6
Equity ratio,% 58.4 58.0 1 58.4 58.0 1 48.6
Return on equity,% -11.9 13.8 -186 -2.0 6.4 -131 11.4
Return on investment,% -13.9 16.2 -186 -3.1 19.6 -116 18.9
REPORTING
QPR Software innovates, develops, sells and delivers software and
services in international markets aimed at facilitating operational
development in organizations. QPR Software reports one operating
segment: Operational 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 Cloud services. In addition, recurring revenue
includes Renewable software licenses.
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 duration. These contracts
are automatically renewed at the end of the agreed period, usually one
year, unless the agreement is terminated within notice period. Renewable
license revenue is recognized at one point in time, in the beginning of
the invoicing period.
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 customer's headquarter location.
The figures in this interim report have been reported in accordance with
the IFRS 16 Lease agreement standard, effective from January 1, 2019.
Detailed description is included in Accounting Principles section of
this interim financial report.
REVIEW BY THE CEO
The investments into our process mining software QPR ProcessAnalyzer
were paying off also in the reported quarter, and international software
net sales in this business area continued to grow. Process mining
software net sales recorded 42% growth in January -- September.
Process mining software is globally strengthening its position as an
operational analytics tool, especially in large organizations segment.
Analysis results are used, among others, for improving existing
operations, process optimization and automatization as well as digital
transformation.
Process mining software product development proceeded well in the
reporting period. We added, among others, features that enable fast and
accurate process performance measurement and support for process
automation initiatives. Thanks to new features added to the product,
customers can also perform conformance analyses and compare actual
performance to designed processes and operating models. In addition to
this, we introduced new features utilizing artificial intelligence, such
as clustering and forecasting features.
The competition in process and enterprise architecture modeling software
and performance management software markets remained tight, as expected.
Our net sales were smaller than in the equivalent period last year, when
net sales included several significant performance management software
deals in developing markets. Net sales of our modeling software were
negatively affected by the tightened competition and pricing change we
implemented in the Finnish public sector modeling software cloud
services. With this new pricing, we aim at significant increase in users
of this software in the long term.
Jari Jaakkola
CEO
NET SALES DEVELOPMENT
July - September 2019
Net sales in the third quarter were EUR 1,981 thousand (2,222). The
share of recurring revenue was 61% of net sales (58).
Software license net sales amounted to EUR 436 thousand (533) and
decreased by 18%, due to decline in performance management software
license net sales in the Middle East market area. Process mining
software QPR ProcessAnalyzer's net sales increased. Software maintenance
net sales were EUR 761 thousand (768).
Cloud services net sales amounted to EUR 269 thousand (338). The
decrease was due to a pricing change we implemented in the Finnish
public sector modeling software cloud services. With this new pricing,
we aim at significant increase in users of this software in the long
term. Consulting net sales decreased to EUR 515 thousand (583), which
was mainly due to decline in performance management consulting in the
Middle East market area. Process mining consulting net sales increased.
Net sales in Finland decreased by 17%, which was mainly due net sales
decrease in modeling software. This decrease was to a large extent
attributable to the pricing change in the Finnish public sector,
described earlier in this report. International net sales decreased by
5%, due to decline in performance management net sales.
Of the Group net sales, 47% (50) derived from Finland, 30% (26) from the
rest of Europe (including Russia and Turkey) and 23% (23) from the rest
of the world.
NET SALES BY PRODUCT GROUP
Jul-Sep, Jul-Sep, Change, Jan-Sep, Jan-Sep, Change, Jan-Dec,
EUR in thousands 2019 2018 % 2019 2018 % 2018
Software licenses 261 355 -26 1,093 1,125 -3 1,559
Renewable software
licenses 175 178 -2 908 934 -3 1,126
Software maintenance
services 761 768 -1 2,044 2,250 -9 2,989
Cloud services 269 338 -20 788 968 -19 1,316
Consulting 515 583 -12 2,182 2,098 4 3,057
Total 1,981 2,222 -11 7,015 7,376 -5 10,047
NET SALES BY GEOGRAPHIC AREA
Jul-Sep, Jul-Sep, Change, Jan-Sep, Jan-Sep, Change, Jan-Dec,
EUR in thousands 2019 2018 % 2019 2018 % 2018
Finland 933 1,119 -17 3,638 4,016 -9 5,444
Europe incl. Russia and
Turkey 598 584 2 2,248 1,967 14 2,817
Rest of the world 450 519 -13 1,128 1,392 -19 1,786
Total 1,981 2,222 -11 7,015 7,376 -5 10,047
January - September 2019
Net sales in January -- September were EUR 7,015 thousand (7,376) and
decreased by 5%. The share of recurring revenue was 53% of net sales
(56).
Net sales in Finland decreased by 9%, which was mainly due to decline in
modeling software net sales.
International net sales increased slightly (+1%). Process mining
software net sales increased, but performance management software and
consulting net sales decreased.
Of the Group net sales, 52% (54) derived from Finland, 32% (27) from the
rest of Europe (including Russia and Turkey) and 16% (19) from the rest
of the world.
FINANCIAL PERFORMANCE
July - September 2019
The Group's operating result was EUR -119 thousand (109). The decrease
in operating result was due to decrease in net sales and outlays in
growth business areas.
The Group's fixed costs were EUR 1,858 thousand (1,895) and decreased by
2% compared to the corresponding period in the previous year. Personnel
expenses represented 74% (70) of the fixed costs.
Result before taxes was EUR -116 thousand (113) and result for the
period was EUR -85 thousand (91). Earnings per share (basic and fully
diluted) were EUR -0.007 (0.008).
January - September 2019
The Group's operating result was EUR -90 thousand (391). The decrease in
operating result was due to outlays in growth business areas, as well as
due to a small decrease in net sales. Depreciation grew by 29% compared
to the corresponding period in the previous year, which was mainly due
to the adoption of the new IFRS 16 accounting standard.
The Group's fixed costs were EUR 6,430 thousand (6,114). Personnel
expenses represented 74% (73) of the fixed costs. Credit losses,
included in fixed costs, were EUR 66 thousand (8).
Result before taxes was EUR -113 thousand (207) and result for the
period was EUR -42 thousand (131). Earnings per share (basic and fully
diluted) were EUR -0.004 (0.011).
FINANCE AND INVESTMENTS
Cash flow from operating activities was EUR 937 thousand (1,176) in
January - September. Cash and cash equivalents at the end of the
reporting period were EUR 470 thousand (534).
Net financial expenses in January -- September were EUR 23 thousand
(184) and included currency exchange losses of EUR 18 thousand (190).
Exceptionally large currency exchange losses in the previous year were
due to liquidation of the Group's subsidiary in Russia.
Investments in January - September totaled EUR 763 thousand (601).
Investments were mainly related to product development expenditure.
The Group's financial position is strong. At the end of the quarter, the
Company had no interest-bearing bank loans. The gearing ratio was -4%
(-20). The change in gearing ratio is due to the adoption of the new
IFRS 16 accounting standard in the beginning of this year. At the end of
the quarter, the equity ratio was 58% (58).
PRODUCT DEVELOPMENT
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.
In January - September, product development expenses were EUR 1,653
thousand (1,438), or 24% of net sales (20). Product development expenses
worth EUR 544 thousand (565) were capitalized. The amortization of
capitalized product development expenses was EUR 613 thousand (571). The
amortization period for capitalized product development expenses is four
years.
PERSONNEL
At the end of the reporting period, the Group employed a total of 83
persons (82). The average number of personnel during the reporting
period January - September was 82 (80).
The average age of employees is 42.0 (40.1) years. Women account for 25%
(21) of employees, men for 75% (79). 18% (18) work in sales and
marketing, 42% (43) in consulting and customer care, 31% (30) in product
development, and 9% (8) in administration.
For incentive purposes, the Company has a bonus program that covers all
employees. Short term remuneration of the top management consists of
salary, fringe benefits, and a possible annual bonus based mainly on the
Group and business unit net sales performance.
The Board of Directors of QPR Software Plc resolved in its meeting on
January 29, 2019 to launch a new key employee stock option plan, based
on an authorization granted by the Annual General Meeting. The purpose
of the stock options is to encourage the key employees to work on a
long-term basis to increase the shareholder value and to retain the key
employees at the Company.
The maximum total number of stock options issued is 910,000 and they
entitle their owners to subscribe for a maximum total of 910,000 new
shares in the Company or existing shares held by the Company. The stock
options are issued gratuitously. Of the stock options, 437,000 are
marked with the symbol 2019A and 473,000 are marked with the symbol
2019B. The share subscription period, for stock options 2019A, will be
January 1, 2022 -- January 31, 2023, and for stock options 2019B,
January 1, 2023 -- January 31, 2024.
The number of shares subscribed by exercising stock options issued
corresponds to a maximum total of 6.81% of all shares and votes of the
shares in the Company after the potential share subscriptions, if new
shares are issued in the share subscription. After the share
subscriptions with stock options, the number of the Company's shares may
be increased by a maximum total of 910,000 shares, if new shares are
issued in the share subscription. The share subscription price for stock
options 2019A is EUR 1.70 per share, which corresponded to the market
price of the Company's share at the time of launching the option plan.
The share subscription price for stock options 2019B is EUR 2.55 per
share, which corresponds to the market price of the Company's share with
an addition of 50%.
STRATEGY
Our target is to grow our net sales by an average of 15 -- 20% per annum
over the next three years. The target is mainly based on international
net sales growth in process mining, where we target annual growth of
over 50%.
We innovate, develop and sell software and related services aimed at
analyzing, measuring and modeling operations in organizations.
Furthermore, we offer customers consulting services in operational
development and digital business optimization.
We will further accelerate product development by increasing our
resources in a controlled manner. In software development, we place
special focus on excellent user experience.
We focus our product development to meet the challenges our client
organizations face, especially in leading and developing their
operations in a digitalizing world. A special focus area for development
is process mining.
We also actively seek strategic partnerships to strengthen our
international software sales and product development.
SHARES AND SHAREHOLDERS
Jan-Sep, Jan-Sep, Change, Jan-Dec,
Trading of shares 2019 2018 % 2018
Shares traded, pcs 902,160 841,756 7 1,026,097
Volume, EUR 1,797,056 1,391,470 29 1,694,088
% of shares 7.5 7.0 8.6
Average trading price, EUR 1.99 1.65 21 1.65
Sep 30, Sep 30, Change, Dec 31,
Shares and market capitalization 2019 2018 % 2018
Total number of shares, pcs 12,444,863 12,444,863 - 12,444,863
Treasury shares, pcs 457,009 457,009 - 457,009
Book counter value, EUR 0.11 0.11 - 0.11
Outstanding shares, pcs 11,987,854 11,987,854 - 11,987,854
Number of shareholders 1,147 1,169 -2 1,151
Closing price, EUR 2.40 1.75 37 1.63
Market capitalization, EUR 28,770,850 20,978,745 37 19,540,202
Book counter value of all treasury
shares, EUR 50,271 50,271 - 50,271
Total purchase value of all
treasury
shares, EUR 439,307 439,307 - 439,307
Treasury shares,% of all shares 3.7 3.7 - 3.7
GOVERNANCE
The Annual General Meeting held on April 4, 2019 approved the Board's
proposal that no dividend be paid for the financial year 2018.
The Annual General Meeting resolved that the number of Board Members is
four (4) and re-elected Vesa-Pekka Leskinen and Topi Piela. as members
of the Company's Board of Directors. As new members of the Board of
Directors, Jarmo Rajala and Salla Vainio were elected. The term of
office of the members of the Board of Directors expires at the end of
the next Annual General Meeting. At its organizing meeting, the Board of
Directors elected Vesa-Pekka Leskinen as its Chairman.
The Annual General Meeting re-elected Authorized Public Accountants KPMG
Oy Ab as QPR Software's auditor with Kirsi Jantunen, Authorized Public
Accountant, acting as principal auditor. The term of office of the
auditor expires at the end of the next Annual General Meeting.
The Annual General Meeting decided to authorize the Board of Directors
to decide on an issue of new shares and conveyance of the own shares
held by the Company (share issue) either in one or in several occasions.
The share issue can be carried out as a share issue against payment or
without consideration on terms to be determined by the Board of
Directors.
All authorizations of the Board and other decisions made by the Annual
General Meeting are available in their entirety on the stock exchange
release published by the Company on April 4, 2019, and available in the
Investors section of the Company's website,
https://www.qpr.com/investors/stock-exchange-and-press-releases.
EVENTS AFTER THE REVIEW PERIOD
After the review period, on October 15, QPR published a stock exchange
release where the Company revised its estimate for full year results
2019, based on weaker outlook in modeling and performance management
software and consulting businesses. The Company also published
preliminary information about its January - September 2019 financial
results.
SHORT-TERM RISKS AND UNCERTAINTIES
Internal control and risk management at QPR Software aims 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 ensures the continuity of its business.
QPR 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 security) and risks related to financing (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 to any international
business. QPR seeks to limit this credit risk by continuous monitoring
of standard payment terms, receivables and credit limits.
Approximately 48% of Group's trade receivables were in euro at the end
of the reporting period (54). At the end of the reporting period, the
Company had not hedged its non-euro trade receivables.
Risks and risk management related to the Company's business are further
described in the Annual Report 2018, pages 21-22 (
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reports).
QPR SOFTWARE PLC
BOARD OF DIRECTORS
Further information:
Jari Jaakkola, CEO
Tel. +358 (0) 40 5026 397
Distribution:
NASDAQ OMX Helsinki Ltd
Main Media
Neither this press release nor any copy of it may be taken, transmitted
or distributed, directly or indirectly, in or into the United States of
America or its territories or possessions.
INTERIM FINANCIAL STATEMENTS
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
EUR in thousands, unless Jul-Sep, Jul-Sep, Change, Jan-Sep, Jan-Sep, Change, Jan-Dec,
otherwise indicated 2019 2018 % 2019 2018 % 2018
Net sales 1,981 2,222 -11 7,015 7,376 -5 10,047
Other operating income - 0 0 -10 102 -10
Materials and services 243 218 11 765 861 -11 1,196
Employee benefit expenses 1,375 1,321 4 4,712 4,475 5 6,142
Other operating expenses 175 336 -48 700 921 -24 1,229
EBITDA 188 348 -46 838 1,109 -24 1,470
Depreciation and amortization 307 239 29 928 717 29 949
Operating result -119 109 -209 -90 391 -123 521
Financial income and expenses 3 4 -22 -23 -184 87 -187
Result before tax -116 113 -203 -113 207 -155 335
Income taxes 31 -22 240 71 -76 193 -15
Result for the period -85 91 -194 -42 131 -132 320
Earnings per share, EUR
(basic and diluted) -0.007 0.008 -194 -0.004 0.011 -132 0.027
Consolidated statement
of
comprehensive income:
Result for the period -85 91 -194 -42 131 -132 320
Other items in comprehensive
income that may be reclassified
subsequently to profit
or loss:
Exchange differences on
translating foreign operations -4 0 -4 179 -102 179
Total comprehensive income -89 91 -198 -46 310 -115 499
CONDENSED CONSOLIDATED BALANCE SHEET
Sep 30, Sep 30, Change, Dec 31,
EUR in thousands 2019 2018 % 2018
Assets
Non-current assets:
Intangible assets 1,904 1,870 2 1,831
Goodwill 513 513 0 513
Tangible assets 440 120 266 116
Other non-current assets 87 62 41 62
Total non-current assets 2,944 2,564 15 2,521
Current assets:
Trade and other receivables 2,272 2,352 -3 3,409
Cash and cash equivalents 470 534 -12 505
Total current assets 2,743 2,886 -5 3,915
Total assets 5,687 5,450 4 6,436
Equity and liabilities
Equity:
Share capital 1,359 1,359 0 1,359
Other funds 21 21 0 21
Treasury shares -439 -439 0 -439
Translation differences -64 -61 6 -61
Invested non-restricted
equity fund 5 5 0 5
Retained earnings 1,945 1,798 8 1,987
Equity attributable to
shareholders of
the parent company 2,827 2,683 5 2,873
Non-current liabilities:
Interest-bearing liabilities 71 - -
Total non-current liabilities 71 - -
Current liabilities:
Interest-bearing liabilities 282 - -
Advances received 844 824 2 523
Accrued expenses and prepaid
income 1,237 1,612 -23 2,489
Trade and other payables 426 331 29 551
Total current liabilities 2,788 2,767 1 3,563
Total liabilities 2,860 2,767 3 3,563
Total equity and liabilities 5,687 5,450 4 6,436
CONSOLIDATED CASH FLOW STATEMENT
Jul-Sep, Jul-Sep, Change, Jan-Sep, Jan-Sep, Change, Jan-Dec,
EUR in thousands 2019 2018 % 2019 2018 % 2018
Cash flow from operating
activities:
Result for the period -85 91 -194 -42 131 -132 320
Adjustments to the result 268 251 7 877 1,156 -24 1,327
Working capital changes -231 -889 74 172 -76 327 -267
Interest and other financial
expenses paid -8 -8 0 -42 -22 -95 -28
Interest and other financial
income received 11 -1 1,462 19 7 153 9
Income taxes paid -14 -7 -88 -47 -21 -126 -27
Net cash from operating
activities -59 -563 90 937 1,176 -20 1,335
Cash flow from investing
activities:
Purchases of tangible and
intangible assets -274 -148 86 -763 -601 27 -790
Net cash used in investing
activities -274 -148 86 -763 -601 27 -790
Cash flow from financing
activities:
Repayments of short term
borrowings -70 - -208 - -
Dividends paid - 0 0 -360 -360
Net cash used in financing
activities -70 0 -208 -360 -360
Net change in cash and cash
equivalents -403 -710 43 -35 215 -116 185
Cash and cash equivalents
at the beginning of the period 871 1,238 -30 505 318 59 318
Effects of exchange rate changes
on cash and cash equivalents 2 6 -72 0 1 -140 2
Cash and cash equivalents
at the end of the period 470 534 -12 470 534 -12 505
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Invested
non-
EUR in Share Other Translation Treasury restricted Retained
thousands capital funds differences shares equity fund earnings Total
Equity Jan 1,
2018 1,359 21 -240 -439 5 2,027 2,733
Dividends paid -360 -360
Comprehensive
income 179 131 310
Equity Sep 30,
2018 1,359 21 -61 -439 5 1,798 2,683
Comprehensive
income 0 189 189
Equity Dec 31,
2018 1,359 21 -61 -439 5 1,987 2,873
Comprehensive
income -4 -42 -46
Equity Sep 30,
2019 1,359 21 -64 -439 5 1,945 2,827
NOTES TO INTERIM FINANCIAL STATEMENTS
ACCOUNTING PRINCIPLES
This report complies with requirements of IAS 34 "Interim Financial
Reporting". Starting from the beginning of 2019, the Group has applied
certain new or revised IFRS standards and IFRIC interpretations, as
described in the Consolidated Financial Statements 2018.
As of beginning of 2019, in accordance with the new IFRS 16 Leases
-standard, leases are recognized in the balance sheet as a right-of-use
asset and a corresponding financial liability at the date at which the
lease asset is available for the use by the Group. Lease payments are
allocated in liabilities and financial expenses. The financial expense
is recognized in the income statement over the lease period. The
right-of-use asset is depreciated on a straight-line basis over the
asset's useful life or the shorter lease term. The lease liabilities are
discounted at the borrowing average rate of 2% as of January 1, 2019.
The Group has adopted the new IFRS 16 standard using modified
retrospective approach and the comparative information has not been
restated.
The Group leases mainly offices to be used as working premises. Rental
contracts are typically made for fixed periods with possible extension
options, or for an indefinite period with a notice period of typically
less than a year. The Group continues to treat leases of 12 months or
less and leases of low-value assets as other leases. Until end of the
year 2018 leases of property, plant and equipment were classified as
operating leases. Payments made under operating leases were recognized
in the income statement on a straight-line basis over the period of the
lease.
The change in the accounting policy affected the balance sheet items of
January 1, 2019, as follows:
- material assets increased with the right-of-use asset by approximately
EUR 560 thousand
- non-current liabilities increased by approximately EUR 280 thousand
- current liabilities increased by approximately EUR 280 thousand
The implementation of other new and revised requirements has not
impacted the reported figures. For all other parts, the accounting
principles and methods are the same as they were in the 2018 financial
statements.
When preparing the consolidated financial statements, the 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. This report
is unaudited.
During the reporting period, the Group did not have any financial
instruments measured at fair value.
Definitions for key indicators can be found in the end of the latest
annual report, on page 55:
https://www.globenewswire.com/Tracker?data=FbVGhd0344XN4tWJBESlj_WeFd78lxO2wQlVveh2N0FMGWK3nlbowXOzQjDmy0EDsZScTMtVIdm8SkLSzABJR9xFdmP3LmRHHQkmXYv2KkdnwaHbhv69-X0ss4RoefQTV2NSD4tBvq9iVuEBzvlWj-FDCqUwfSaVrvaJaXValMCN_8qFtG6qHtXanj02-0qJotxSzfVqlPBqkct8_cgjPA==
https://www.qpr.com/investors/financial-information/annual-reports
INTANGIBLE AND TANGIBLE ASSETS
Jan-Sep, Jan-Sep, Jan-Dec,
EUR in thousands 2019 2018 2018
Increase in intangible assets:
Acquisition cost Jan 1 10,057 9,318 9,318
Increase 732 566 739
Increase in tangible assets:
Acquisition cost Jan 1 2,433 1,821 1,821
Increase 31 35 50
PLEDGES AND COMMITMENTS
Sep 30, Sep 30, Dec 31, Change,
EUR in thousands 2019 2018 2018 %
Business mortgages (held by the
Company) 1,384 1,386 1,386 0
Minimum lease payments based
on lease agreements:
Maturing in less than one year 19 166 267 -93
Maturing in 1-5 years 2 0 254 -99
Total 21 166 521 -96
Total pledges and commitments 1,406 1,552 1,907 -26
CHANGE IN INTEREST-BEARING LIABILITIES
Jan-Sep, Jan-Sep, Jan-Dec,
EUR in thousands 2019 2018 2018
Interest-bearing liabilities
Jan 1 562 - -
Repayments 208 - -
Interest-bearing liabilities
Sep 30 354 - -
RECONCILIATION OF LEASE LIABILITY
EUR in thousands
----------------------------------- ---
Minimum lease payments based
on lease agreements as of Dec
31, 2018 521
Relief option for short- term
leases -6
Other incl. treatment of extension
options 59
Effect of discounting* -12
Lease liability as of Jan 1,
2019 562
-----------------------------------
LEASES
Due to the adoption of the new IFRS 16 Leases -standard, the balance
sheet as at September 30, 2019 and the income statement of the reporting
period January-September include the following items in right-of-use
assets of material assets, lease liabilities, depreciation and interest
expense:
LEASES IN THE BALANCE SHEET
Sep 30,
EUR in thousands 2019
Asset
Non-current assets
Tangible assets 351
-------------------------------
Total 351
Equity and liabilities
Lease liabilities, non-current 71
Lease liabilities, current 282
Total 354
LEASES IN THE INCOME STATEMENT
Jan-Sep,
EUR in thousands 2019
Other lease expenses 0
Depreciation of right-of-use
assets -211
Interest expenses -7
Total -218
CONSOLIDATED INCOME STATEMENT BY QUARTER
Q3 Q2 Q1 Q4 Q3 Q2 Q1
EUR in thousands 2019 2019 2019 2018 2018 2018 2018
Net sales 1,981 2,285 2,748 2,671 2,222 2,272 2,882
Other operating income - 0 - 0 0 -5 -5
Materials and services 243 260 263 335 218 255 388
Employee benefit
expenses 1,375 1,644 1,693 1,667 1,321 1,603 1,551
Other operating expenses 175 228 296 308 336 288 297
EBITDA 188 153 497 362 348 120 640
Depreciation and
amortization 307 310 310 231 239 238 240
Operating result -119 -158 187 130 109 -118 400
Financial income
and expenses 3 -6 -20 -2 4 1 -189
Result before tax -116 -164 167 128 113 -117 211
Income taxes 31 66 -26 62 -22 32 -86
Result for the period -85 -98 141 189 91 -85 124
GROUP KEY FIGURES
EUR in thousands, unless Jan-Sep or Jan-Sep or Jan-Dec or
otherwise indicated Sep 30, 2019 Sep 30, 2018 Dec 31, 2018
------------------------------- -------------
Net sales 7,015 7,376 10,047
Net sales growth,% -4.9 5.7 12.4
EBITDA 838 1,109 1,470
% of net sales 11.9 15.0 14.6
Operating result -90 391 521
% of net sales -1.3 5.3 5.2
Result before tax -113 207 335
% of net sales -1.6 2.8 3.3
Result for the period -42 131 320
% of net sales -0.6 1.8 3.2
Return on equity (per annum),% -2.0 6.4 11.4
Return on investment (per
annum),% -3.1 19.6 18.9
Cash and cash equivalents 470 534 505
Net borrowings -116 -534 -505
Equity 2,827 2,683 2,873
Gearing,% -4.1 -19.9 -17.6
Equity ratio,% 58.4 58.0 48.6
Total balance sheet 5,687 5,450 6,436
Investments in non-current
assets 763 601 790
% of net sales 10.9 8.2 7.9
Product development expenses 1,653 1,438 1,989
% of net sales 23.6 19.5 19.8
Average number of personnel 82 80 81
Personnel at the beginning
of period 84 76 76
Personnel at the end of period 83 82 84
Earnings per share, EUR
(basic and diluted) -0.004 0.011 0.027
Equity per share, EUR 0.227 0.216 0.231
(END) Dow Jones Newswires
October 24, 2019 02:00 ET (06:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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