TJ Group Plc Stock Exchange Release April 26, 2007
TJ GROUP INTERIM REPORT 1 JANUARY-31 MARCH 2007 (IFRS)
- Net sales EUR 0.82 million (EUR 1.12 million)
- Operating result EUR -0.12 million (EUR -0.31 million)
- Result before taxes EUR 0.17 million (EUR -0.36 million)
- Equity ratio -47.4% (-13.6%), shareholders' equity/share EUR -0.02
(EUR -0.01)
- Earnings per share EUR 0.001 (EUR -0.003)
STRUCTURE OF THE GROUP
During the review period, TJ Group consisted of the Finnish subsidiary Documenta
Oy, in which it had 100% ownership, and the parent company TJ Group Plc. The
company had business operations in Finland only, so there are no geographically
segmented reports of the net sales, business results and personnel to be
presented.
In its business operations, TJ Group Plc will focus on developing its customers'
business processes especially by means of document and workflow management
systems and development of quality and customer relationship management, with
the emphasis on the Finnish markets. The company will continue to use the
operating model in which the operative functions have been centralized into the
subsidiary/subsidiaries.
NET SALES
TJ Group's net sales for the review period were EUR 0.82 million (EUR 1.12
million). The comparable net sales of the continuing business operations for 1
January-31 March 2006 were EUR 0.97 million.
RESULT DEVELOPMENT
TJ Group's operating result for the review period was EUR -0.12 million (EUR
-0.31 million). The comparable operating result of the continuing business
operations for 1 January-31 March 2006 was EUR -0.27 million.
The result for the review period was EUR 0.17 million (EUR -0.36 million). The
comparable result of the continuing business operations for 1 January-31 March
2006 was EUR -0.32 million.
The financial income of the review period includes a registration of change in
the market value of shares amounting to EUR 320 thousand; the GROUP Technologies
AG shares owned by the company have been valued at the share price on the last
day of the review period. The shares are presented in the balance sheet as
other financial assets under long-term assets.
The costs for employment benefits on the review period were EUR 0.52 million
(EUR 0.68 million), which equals to 63% of the net sales (60%). The comparable
costs for employment benefits on 1 January-31 March 2006 were EUR 0.56 million,
which equals to 57% of the net sales. The net sales per person in the review
period were EUR 20 thousand (EUR 22 thousand).
At the end of the review period, the group's equity is negative. The loss on
the company's share capital has been registered in the trade register on 20
September 2006.
THE NET SALES AND RESULT DEVELOPMENT OF THE SUBSIDIARY
Documenta Oy
Documenta Oy's net sales for the review period 1 January-31 March 2007 were EUR
0.83 million (EUR 0.96 million). The operating result was EUR 2 thousand (EUR
0.11 million), which is 0.3% of the net sales.
Documenta Oy is a company specializing in software products for digital workflow
and document management, quality management, customer relationship management
and intensification of operative processes. Documenta offers information
technology based software, maintenance, operation service and integration
solutions for companies and public administration. Documenta is also responsible
for reselling the GROUP Technologies AG's iQ-Suite and CRM Suite (Gedys Software
Holding) product families in Finland directly and through its partners. The CEO
of the company is Asko Ojanen.
THE CURRENT AUTHORIZATIONS OF THE BOARD OF DIRECTORS
At the publishing time of the interim report, the Board of Directors does not
have existing authorizations to increase the share capital by issuing of new
shares, to grant option rights, or to take convertible loan. The Board of
Directors also does not have authorizations for share repurchase or transfer.
FINANCING AND INVESTMENTS
The value of TJ Group's cash and liquid current assets totalled EUR 2.86 million
(EUR 2.57 million) at the end of the review period. The equity ratio of the
group was -47.4% (-13.6%).
TJ Group's sales receivables at the end of the review period were EUR 0.31
million (EUR 0.77 million).
In the review period, the group's gross investments totalled EUR 4 thousand (EUR
0.1 million), which equals to 0.5% (9%) of the net sales.
RESEARCH AND DEVELOPMENT COSTS
The research expenses have been entered directly as costs. The product
development expenses have been entered in accordance with the IAS 38 standard in
such a way that the development expenses for entirely new products and new
product versions including significant improvements have been activated, if
their future accumulativeness can be reliably verified. Other product
development expenses have been entered as costs in the profit and loss statement
at the time they incurred. No product development costs have been activated in
the balance sheet during the review period.
PERSONNEL
At the end of the review period, the group had 40 (49) employees. The group
employed an average of 41 (50) persons during the review period.
MANAGEMENT, BOARD OF DIRECTORS, AND AUDITORS OF THE COMPANY
The management of the company consists of CEO Hannu Jokela and CFO Anneli
Saarikoski.
TJ Group Plc's Board of Directors includes four members and two deputy members:
Chairman of the Board Tuomo Tilman, Hannu Jokela, Jörg Ott, Jyrki Salminen, and
deputy members Markku Montonen and Anneli Saarikoski.
The auditor selected by the Shareholders' Meeting is Ernst Young Oy Authorised
Public Accounting Firm with Arto Tenhula as the principal accountant.
SHARES, SHARE CAPITAL, AND SHAREHOLDERS
TJ Group Plc's share capital on 31 March 2007 was EUR 2,569,853.92, and the
total number of shares was 128,492,696. The countervalue of a share is EUR 0.02.
Shareholders' equity/share was EUR -0.02. At the end of the review period, the
equities of the group and the parent company were negative. The loss on the
parent company's share capital has been registered in the trade register on 20
September 2006.
At the end of the review period, the company had 15,403 shareholders.
THE SHARE HOLDING AND WARRANTS OF THE BOARD OF DIRECTORS AND THE MANAGEMENT
On 31 March 2007, the members and deputy members of the TJ Group's Board of
Directors and the CEO owned a total of 63,236,641 TJ Group shares, that is, 49.2
percent of the company's share capital and votes, and 230,000 TJ Group warrants,
that is, 0.2 percent of the company's share capital and votes.
For more information on TJ Group's warrant programs, see the company's web site
at www.tjgroup.fi and www.tjgroup.com.
The company complies to and adapts the Guidelines for Insiders drawn up by the
Helsinki Exchanges.
NEAR-TERM OUTLOOK
TJ Group Plc's goal for 2007 is to increase the group's net sales and improve
the result compared to 2006. This will be pursued by means of organic growth and
possibly business arrangements.
A prerequisite for any business arrangements is that the ongoing legal process
will have a positive outcome for the company. As the legal process continues, it
also harms the operative functions of the group's subsidiaries, especially sales
to new customers.
The interim report of TJ Group for 1 January-30 June 2007 will be published on
26 July 2007.
Espoo, 26 April 2007
The Board of Directors of TJ Group Plc
Tuomo Tilman, Chairman of the Board
Hannu Jokela
Jörg Ott
Jyrki Salminen
CONTACT:
TJ Group Plc
CEO Hannu Jokela
Tel. +358 205 5151
DISTRIBUTION:
Helsinki Exchanges
Main media
www.tjgroup.com
The figures in the interim report have not been audited.
In addition to the
accounts of the parent company, the financial report of TJ Group Plc
consolidates the accounts of Documenta Oy.
The comparison figures for 2006 include the following companies in addition to
the above mentioned companies: figures for TJ-KiPa Oy (former Key Partners Oy),
TJ Ohjelmistoprojektit Oy (former Planmill Oy) and TJ Group GmbH.
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| CONSOLIDATED PROFIT & LOSS | | | | | |
| STATEMENT | | | | | |
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| | | | | | Continu | |
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| | | | | | and | |
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| | | | | | continu | |
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| | | | Continu | | operati | |
| | | | ed | | ons | |
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| (EUR thousand) | | | operati | | in | |
| | | | ons | | total | |
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| | 1 Jan- | % | 1 Jan- | % | 1 Jan- | 1 Jan- |
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| | 31 Mar | of | 31 Mar | of | 31 Mar | 31 Dec |
| | 2007 | | 2006 | | 2006 | |
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| | 3 | turn | 3 | turno | 3 | 2006 |
| | months | over | months | ver | months | |
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| | | | | | | |
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| Net sales | 822 | | 966 | | 1 124 | 4 323 |
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| Change in work in | 9 | | 0 | | 0 | 0 |
| progress,inc(+),dec(-) | | | | | | |
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| Other operating income | 0 | | 164 | | 164 | 306 |
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| Income from selling of | 0 | | 0 | | 0 | 1 351 |
| business operations | | | | | | |
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| Materials and services | 94 | | 80 | | 87 | 631 |
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| Employee benefits | 521 | | 555 | | 676 | 2 519 |
| expenses | | | | | | |
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| Depreciations | | | | | | |
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| Depreciations | 46 | | 92 | | 102 | 700 |
| according to plan | | | | | | |
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| Rents | 40 | | 290 | | 300 | 757 |
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| Marketing expenses | 58 | | 42 | | 44 | 80 |
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| Other operating | 187 | | 341 | | 392 | 3 239 |
| expenses | | | | | | |
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| Unprofitable | 0 | | 0 | | 0 | -382 |
| agreements | | | | | | |
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| Operating profit/loss | -115 | -14, | -270 | -28,0 | -313 | -1 564 |
| | | 0 % | | % | | |
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| Financial income and | | | | | | |
| expeses | | | | | | |
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| Interest income and | 346 | | 1 | | 1 | 79 |
| other financial income | | | | | | |
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| Interest expenses and | -66 | | -69 | | -70 | -256 |
| other | | | | | | |
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| financial expenses | | | | | | |
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| Share of profit/loss | 0 | | 20 | | 20 | 0 |
| in associated | | | | | | |
| companies | | | | | | |
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| Profit/loss before | 165 | | -318 | | -362 | -1 741 |
| income taxes | | | | | | |
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| Income taxes | | | | | | |
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| Income tax | 0 | | 0 | | 0 | -1 |
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| PROFIT/LOSS FOR THE | 165 | 20,1 | -318 | -32,9 | -362 | -1 742 |
| PERIOD | | % | | % | | |
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| | | | | | | |
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| Earnings per share | 0,001 | | -0,002 | | -0,003 | -0,014 |
| (undiluted), EUR | | | | | | |
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| Earnings per share | 0,001 | | -0,002 | | -0,003 | -0,014 |
| (diluted), EUR | | | | | | |
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| CONSOLIDATED BALANCE SHEET | | | |
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| (EUR thousand) | | | |
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| ASSETS | 31 Mar | 31 Mar 2006 | 31 Dec |
| | 2007 | | 2006 |
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| NON-CURRENT ASSETS | | | |
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| Intangible assets | | | |
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| Intangible rights | 296 | 604 | 316 |
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| Goodwill | 0 | 63 | 0 |
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| Tangible assets | 149 | 119 | 171 |
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| Shares in associated companies | 0 | 2 919 | 0 |
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| Other capitalized expenditure | 1 293 | 11 | 972 |
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| Non-current assets total | 1 738 | 3 716 | 1 459 |
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| CURRENT ASSETS | | | |
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| | | | |
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| Work in progress | 9 | 0 | 0 |
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| Trade receivables | 314 | 767 | 1 595 |
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| Other current assets | 59 | 1 331 | 125 |
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| Cash and cash equivalents | 2 859 | 2 565 | 3 084 |
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| Current assets total | 3 241 | 4 663 | 4 804 |
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| TOTAL ASSETS | 4 979 | 8 379 | 6 263 |
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| SHAREHOLDERS' EQUITY AND LIABILITIES | 31 Mar | 31 Mar 2006 | 31 Dec |
| | 2007 | | 2006 |
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| | | | |
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| Equity attributable to equity | | | |
| holders of the parent | | | |
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| Share capital | 2 570 | 2 570 | 2 570 |
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| Premium reserve | 65 142 | 65 142 | 65 142 |
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| Retained earnings | -70 233 | -68 491 | -68 491 |
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| Profit/loss for the period | 165 | -362 | -1 742 |
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| TOTAL SHAREHOLDERS' EQUITY | -2 356 | -1 141 | -2 521 |
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| Long-term liabilities | | | |
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| Convertible loans | 4 500 | 4 500 | 4 500 |
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| Interest-bearing liabilities | 2 033 | 2 155 | 2 033 |
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| Long-term liabilities total | 6 533 | 6 655 | 6 533 |
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| Current liabilities | | | |
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| Interest-bearing liabilities | 22 | 58 | 128 |
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| Trade payables | 235 | 491 | 787 |
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| Other current liabilities | 95 | 228 | 351 |
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| Accrued liabilities | 450 | 2 088 | 985 |
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| Current liabilities total | 802 | 2 865 | 2 251 |
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| TOTAL SHAREHOLDERS' EQUITY AND | 4 979 | 8 379 | 6 263 |
| LIABILITIES | | | |
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| CONSOLIDATED CASH FLOW STATEMENT | | | |
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| (EUR thousand) | 1 Jan- | 1 Jan- | 1 Jan- |
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| | 31 Mar 2007 | 31 Mar | 31 Dec 2006 |
| | | 2006 | |
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| Cash flow from operating | | | |
| activities | | | |
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| Operating profit/loss | -115 | -313 | -1 564 |
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| Amendments: | | | |
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| Booking of shares at current | 0 | 0 | 1 399 |
| price, no | | | |
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| payment transaction | | | |
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| Depreciations | 46 | 102 | 700 |
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| Change in working capital: | | | |
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| Change in trade and other | 1 347 | 1 204 | 1 582 |
| receivables | | | |
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| Change in trade and other payables | -1 343 | -511 | -1 195 |
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| Change in work in progress | -9 | 0 | 0 |
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| Interests received | 25 | 1 | 79 |
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| Interests paid | -66 | -70 | -256 |
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| Other financial items | 0 | 20 | 0 |
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| Income taxes, paid | 0 | 0 | -1 |
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| Cash flow from operating | -115 | 433 | 744 |
| activities total | | | |
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| Cash flow/investments | | | |
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| Investments in intangible and | -4 | -103 | 157 |
| tangible assets | | | |
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| Cash flow/investments total | -4 | -103 | 157 |
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| Cash flow/financing | | | |
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| Repayment of loans | | | |
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| Increase in loans | -106 | -36 | -122 |
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| Cash flow/financing total | 0 | 0 | 34 |
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| | -106 | -36 | -88 |
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| Change in liquid funds | | | |
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| according to the cash flow | -225 | 294 | 813 |
| statement | | | |
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| | | | |
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| Change in liquid funds | -225 | 294 | 813 |
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| Liquid funds opening balance | 3 084 | 2 271 | 2 271 |
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| Liquid funds closing balance | 2 859 | 2 565 | 3 084 |
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| KEY FIGURES | | | |
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| | | | |
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| | 1 Jan- | 1 Jan- | 1 Jan- |
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| | 31 Mar 2007 | 31 Mar 2006 | 31 Dec 2006 |
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| Net sales, EUR million | 0,82 | 1,12 | 4,32 |
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| Operating profit/loss, EUR | -0,12 | -0,31 | -1,56 |
| million | | | |
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| % of net sales | -14,0% | -27,8% | -36,2% |
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| Cash flow from operations, | -0,12 | 0,43 | 0,74 |
| EUR million | | | |
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| Return on equity, % 1) and | -27,1 % | 150,8 % | 105,6 % |
| 2) | | | |
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| Return on investment, % 2) | 22,2 % | -20,2 % | -29,4 % |
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| Interest bearing net debt, | 3,7 | 4,1 | 3,6 |
| EUR million | | | |
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| Net debt to equity (Net | -156,9 % | -363,5 % | -141,9 % |
| Gearing), % | | | |
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| Equity ratio, % | -47,4 % | -13,6 % | -40,5 % |
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| Gross investments | 0,0 | 0,1 | -1,6 |
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| % of net sales | 0 % | 9 % | -36 % |
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| Personnel at the end of the | 40 | 49 | 42 |
| period | | | |
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| Personnel average | 41 | 50 | 49 |
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| Employee benefits | 13 | 14 | 51 |
| expenses/person, | | | |
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| EUR thousand | | | |
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| KEY FIGURES PER SHARE | | | |
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| Earnings/share, euro | 0,001 | -0,003 | -0,014 |
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| Shareholders' equity per | -0,02 | -0,01 | -0,02 |
| share, euro | | | |
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| 1) Both indicator and devider | | | |
| are negative in 2006. | | | |
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| | | | |
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| 2) The percentages for return | | | |
| on equity and | | | |
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| return on investment have | | | |
| been adjusted | | | |
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| to reflect the figures for a 12-month period. | |
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| STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY | | |
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| (EUR thousand) | Share | Share | Retained | Total |
| | capital | premium | earnings | |
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| SHAREHOLDERS' EQUITY 1 | 2 570 | 65 142 | -70 233 | -2 521 |
| Jan 2007 | | | | |
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| Profit for the period | | | 165 | 165 |
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| SHAREHOLDERS' EQUITY 31 | 2 570 | 65 142 | -70 068 | -2 356 |
| Mar 2007 | | | | |
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| (EUR thousand) | Share | Share | Retained | Total |
| | capital | premium | earnings | |
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| SHAREHOLDERS' EQUITY 1 | 2 570 | 65 142 | -68 491 | -779 |
| Jan 2006 | | | | |
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| Profit for the period | | | -362 | -362 |
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| SHAREHOLDERS' EQUITY 31 | 2 570 | 65 142 | -68 853 | -1 141 |
| Mar 2006 | | | | |
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