EFECTE PLC -- HALF-YEARLY REPORT -- 13 AUGUST 2018 at 14.00
Efecte Plc's Half-Yearly Report 1-6/2018 - SaaS grew by 25%
- Net sales grew by 19% to 6.0 Million euro
- SaaS grew by 25% and was 46% of total net sales
- Services grew by 24% and was 39% of total net sales
- Forward-looking investments into accelerating international growth decreased profitability, as anticipated. EBITDA was -1.0 Million euro and operating profit -1.2 Million euro
- Guidance on 2018 remains unchanged
Group key figures
| 1000 EUR | 1-6/2018 | 1-6/2017 | 2017 |
| Net sales | 5 983 | 5 038 | 10 615 |
| EBITDA | -1 038 | 96 | 305 |
| EBITA | -1 205 | -26 | 41 |
| Operating profit | -1 239 | -99 | -110 |
| Profit for the period | -1 256 | -111 | -841 |
| Profit for the period (adjusted for listing cost) | -1 256 | -106 | -122 |
| Earnings per share, eur* | -0.22 | -0.03 | -0.19 |
| Adjusted earnings per share, eur* | -0.22 | -0.02 | -0.03 |
| Equity per share, eur* | 0.79 | 0.15 | 1.02 |
| SaaS MRR | 483 | 393 | 425 |
| Order intake | 6 583 | 6 965 | 11 866 |
* Share-based key figures have been calculated with the 1:3 split in October 2017
CEO Sakari Suhonen:
In 1-6/2018 Efecte's net sales grew by 19% to 6.0 MEUR (5.0 MEUR in 1-6/2017). Our current main businesses grew more rapidly: net sales of SaaS grew by 25% and services by 24%. Net sales of traditional perpetual licenses grew by 22%. Net sales of traditional maintenance decreased by 13% as expected.
Our business in Sweden, Germany and Denmark generated approx. 16% of our net sales and international net sales grew more rapidly than in Finland. We continue implementing our international growth strategy. It should be noted that our international growth will develop in stages in near future, as typical new customer agreements are relatively large compared to the current size of the local business, especially in Germany.
The forward-looking growth investments, especially the significant increase in the number of employees in Germany and Sweden, have decreased profitability in the review period as anticipated.
Orders from new customers grew by 35%. Total order intake was slightly below last year, as the comparison period included several large long-term renewals. Order intake in Finland was good, but international development did not yet match our expectations. We received the largest new orders near the end of the period: from Tampere3 universities in Finland, from a large university in Sweden and from a major law firm in Germany.
I will leave the CEO post in good spirits at the end of August. Efecte has achieved a lot in the last few years and the company has good prospects to continue on the selected strategic path towards international growth.
Long-term financial targets
Efecte aims for over 20% annual organic growth on average in 2017-2022. Substantial investments in international growth will decrease operating profit in the next few years, but the company aims for a double-digit operating profit percentage by the end of the strategy period.
Guidance for year 2018
The company has done substantial investments in international growth, especially in Germany and Sweden, which is expected to accelerate our growth starting from the second quarter. Annual growth in net sales is expected to exceed 20%. Due to the growth investments, we expect EBITDA to be clearly negative. Profitability in the first year-half is expected to be lower than in the second year-half.
Additional information:
CFO Hannu Nyman, +358 50 306 9913
Certified adviser: Evli Bank Oyj, tel. +358 40 579 6210
This release is unaudited. The amounts in this report have been rounded from exact numbers.
NET SALES AND PROFIT
Efecte's net sales in 1-6/2018 were 6.0 Million euro (1-6/2017: 5.0 Million euro). Net sales by type were: SaaS 2.7 MEUR (2.2 MEUR), Services 2.3 MEUR (1.9 MEUR), licenses 0.3 MEUR (0.2 MEUR) and Maintenance 0.6 KEUR (0.7 MEUR).
Net sales for cloud-based solutions continued to grow substantially. SaaS grew by 25% and Services grew by 24%. Also the perpetual licenses grew by 22%, while traditional maintenance decreased by 13%. Total growth was 19%.
The international net sales grew more rapidly than net sales in Finland and the foreign subsidiaries generated 0.9 MEUR (0.7 MEUR) net sales, corresponding to 16% of total net sales.
The recurring revenue (SaaS and maintenance) was 3.4 MEUR (2.9 MEUR), corresponding to 56% of the net sales (58%).
Efecte's EBITDA was -1.0 MEUR (0.1 MEUR) and operating profit was -1.2 MEUR (-0.1 MEUR). Forward-looking growth investments, e.g. recruited employees, affected profit negatively.
Taxes corresponding to the profit of the period have been entered as tax expense. Efecte has confirmed tax losses in the taxation for Finland, so there was no income tax expense.
Net profit for the period was -1.3 MEUR, while it was -0.1 MEUR last year.
The order intake in the review period was 6.6 MEUR (7.0 MEUR). Orders from new customers grew by 35%, but the smaller amount of long-term agreements on renewal phase decreased the total order intake. After a slow first quarter the second quarter had good order intake growth. Largest new orders were received near the end of the period: from Tampere3 universities in Finland, from a major university in Sweden and from a major law firm in Germany. Order intake in Finland was good in the review period, but the development of the international markets did not yet match our expectations.
FINANCE AND INVESTMENTS
At the end of the reporting period Efecte's balance sheet totaled 9.2 MEUR (12/2017: 9.3 MEUR). Equity ratio was 69% (12/2017: 71%) and net gearing was -124% (12/2017: -109%).
The financial loans were 0.0 MEUR (12/2017: 0.0 MEUR) at the end of reporting period. The company's cash and liquid assets were 5.7 MEUR (12/2017: 6.1 MEUR). The interest-bearing net debt was -5.7 MEUR (12/2017: -6.1 MEUR).
Cash flow from operating activities for the reported period was -0.5 MEUR (1.4 MEUR) and cash flow from investing activities was -0.8 MEUR (-0.2 MEUR). Investments in tangible and intangible assets were 0.2 MEUR (0.2 MEUR) and mainly were activated R&D expenses.
BUSINESS DEVELOPMENTS
During the first half of 2018 the growth of net sales was slightly less than our long-term targets. Slower than expected progress in some large implementation projects, relatively high share of new employees as well as well employee churn have contributed to that. Partially also changes in customers' own ramp-up schedules have impacted negatively on our net sales. Investments into international business did not yet fully contribute to the net sales growth.
The number of employees has increased rapidly, and the organization has been developed to match the needs of growing business. We continue to develop our methods, processes and organization so that they support the next phase of our business development as well as possible. During this year we will focus not only on growth, but also on actions ensuring scalability of our business. Growth in the employee headcount and in the number of customers requires continuous development of our processes, methods and organization in order to ensure both the customer satisfaction and the employee satisfaction.
Efecte seeks to strongly accelerate the international growth and especially Germany and Sweden have been in focus of forward-looking investments, which decreases profitability in near future.
International growth will likely develop in stages for the next few years, as typical new customer agreements are relatively large compared to the current size of the local business, especially in Germany
In addition to winning new customers, the sales efforts have also focused on further sales of Efecte's whole offering to the existing customers. The current customers are believed to offer significant growth potential, as typically a new customer initially uses only some of Efecte's solutions and expands usage later. Expansions by current customers made half of the order intake in the period.
EMPLOYEES
The number of employees was 103 persons at the end of the reporting period (74). 79 employees were based in Finland (62), 11 in Sweden (8), 3 in Denmark (2) and 10 in Germany (2). The average number of employees during the period was 102 (70).
Demand for consultants in the review period exceeded our capacity on some fields. We are a bit behind our targets in consultant recruitments and have utilised external consultants to some extent. This has had negative impact on profitability of the services business.
Milla Kuosmanen was appointed as the vice president responsible for service business and cloud operations and to the management team as Timo Hyvönen left the company.
MARKET OUTLOOK
Based on research organisations, the markets related to Efecte's main offering, IT Service Management (ITSM) and Identity and Access Management (IAM) are expected to grow strongly in Efecte's target markets in Europe.
The European cloud based ITSM market is expected to grow annually by 15.5% on average in 2016-2021. The small and medium sized companies' market is expected to grow annually by 20.8% on average, and the large enterprise market by 13.6% on average. The average annual growth in 2016-2021 is expected to be 14.6% for software and 18.5% for services.
The global cloud-based IAM market is expected to grow annually by 23.7% on average in 2016-2021. The European market is expected to grow annually by 22.0% on average in 2016-2021.
RESEARCH AND DEVELOPMENT
Research and development actions were focused on extending the enterprise service management capabilities of the Efecte Edge solution. The IT Service Management solution was updated to the latest industry standards, and the solution received the PinkVerify certification, the globally recognized certification issuer for ITSM tools. The HR Service Management solution was also significantly enhanced in close co-operation with existing customers. Furthermore, Efecte added new capabilities to its solution enabling customers to meet the GDPR requirements for the anonymization and archiving of personal data.
Research and development actions are performed in Efecte Finland Oy. Research and development is mainly done by own personnel, but subcontractors are also used to increase flexibility and cost efficiency.
The company enters the research and development cost as expense to the current period. Those development costs that are related to new products or functionalities, are activated in balance sheet as immaterial assets since when the product is technically feasible, it can be utilised commercially and is expected to generate economic benefits in future.
ANNUAL GENERAL MEETING AND GOVERNANCE
The Annual General Meeting held on 5 April 2018 adopted the financial statements for 1.1.-31.12.2017 and discharged the members of the Board of Directors and the CEO from liability. The Annual General Meeting decided that no dividend is distributed for the year 2017.
The Meeting decided that the Chairman of the Board will be paid EUR 3,000 per month and the other members of the Board of Directors will be paid EUR 1,500 per month each. Approximately 40 per cent of the remuneration will be paid in Efecte Plc's shares and 60 per cent will be paid in cash.
Pertti Ervi, Niilo Fredrikson, Turkka Keskinen, Kari J. Mäkelä, Päivi Rekonen and Hannu Vaajoensuu were elected as members of the Board of Directors. The organization meeting of the Board of Directors elected Pertti Ervi as Chairman.
Ernst & Young Oy acts as the auditor, and Juha Hilmola is the auditor in charge.
CEO CHANGE
The company has announced on 25 May 2018 that the CEO Sakari Suhonen will leave the company during autumn. His employment will end in August. CFO Hannu Nyman will act as the interim CEO until the new CEO has started.
After the review period, on 13 July 2018, the company announced that Niilo Fredrikson has been appointed as the new CEO. He is expected to start in the position on 24 September 2018, but latest by the end of the year.
SHARES AND TRADING
The company has one share series and all shares have similar rights. At the end of the review period Efecte Plc's share capital consisted of 5 810 988 shares. The company owned 4 753 treasury shares, approx. 0.1 % of the total amount of the shares.
The company's share has been trading on the First North marketplace. During the review period the highest share price was 6.34 euro, the lowest price 5.00 euro and the closing price 5.67 euro. The market value of shares was 32.9 MEUR at the end of the period excluding the treasury shares.
SHAREHOLDERS
The company had a total of 1614 owners on 30 June 2018. The list of the largest owners can be found in the company's web site.
10 largest shareholders as of 30 June 2018:
| Shareholder | Shares | % | |
| 1 | First Fellow Oy | 1 010 499 | 17.4 |
| 2 | Oy Fincorp Ab | 684 593 | 11.8 |
| 3 | Stadigh Kari | 334 546 | 5.8 |
| 4 | Innovestor Kasvurahasto I Ky | 298 992 | 5.1 |
| 5 | Ilmarinen | 290 909 | 5.0 |
| 6 | Montonen Markku | 263 571 | 4.5 |
| 7 | Sarkkinen Jussi-Pekka | 182 015 | 3.1 |
| 8 | Aktia Nordic Micro Cap Mutual Fund | 174 545 | 3.0 |
| 9 | Havacment Oy | 121 107 | 2.1 |
| 10 | Kosonen Jukka | 120 000 | 2.1 |
The ownership of the board members, CEO and their controlled corporations totaled approx. 6.3%. Additionally, CEO has options for approx. 0.8% of shares.
THE AUTHORIZATIONS GIVEN TO THE BOARD OF DIRECTORS
The Annual General Meeting held on 5 April 2018 authorized the Board of Directors to decide to acquire the company's own shares with distributable funds. A maximum of 450 000 shares may be acquired. The authorisation is effective until the next Annual General Meeting, however, at the latest until 30 June 2019.
The Annual General Meeting held on 5 April 2018 authorized the Board of Directors to offer a maximum of 800,000 shares through a share issue in one or several instalments. The Board may decide to issue new shares or shares held by the company. The authorisation includes the right to issue shares through private offering, in other words, to deviate from the shareholders' pre-emptive right subject to the requirements set forth in the law and the right to issue shares against payment or without charge. Under the authorisation, the Board of Directors will be entitled to decide on the terms and conditions of any share issue, including the recipients of the shares and the compensation to be paid. This authorisation can be exercised for purposes determined by the Board of Directors. The authorisation is effective until the next Annual General Meeting, however, at the latest until 30 June 2019.
OPTION PROGRAMS
Option program 2011
Option program 2011 consist of 130 000 options that entitle the holders to subscribe a maximum of 390 000 new shares. Each option entitles to subscribe three new shares. The share subscription period will end on 31.12.2020. The subscription price of a share is 0.58 euro. By 30.6.2018 a total of 290 895 shares have been subscribed with the options. There are 33 035 unused options that can be used to subscribe 99 105 shares.
Option program 2015
Option program 2015 consists of 135 000 options that entitle the holders to subscribe a maximum of 405 000 shares. The options are divided to four series: A series 45 000 options (of which 25 500 are allocated), B series 45 000 options (25 500 allocated), C series 30 000 options (26 500 allocated) and D series 15 000 options (all allocated). Each option entitles to subscribe three new shares.
The share subscription period for the options is 30.4.2017-31.12.2020. The right to subscribe shares begins with the following schedule: A series vests on 30.4.2017, B series on 30.4.2018 and C series 30.4.2019. D series vests on 30.4.2020 with the following conditions: of D options a) 50% if Efecte's international net sales in 2019 exceed 3.2 Million euro, b) 75% if it exceeds 4.0 Million euro and c) 100% if it exceeds 4.7 Million euro.
The subscription prices are as follows: A series: 1.50 euro/share, B series: 1,6666667 euro/share, C series 1,6666667 euro/share, and D series 3,34 euro/share. By 30.6.2018 a total of 64 500 shares have been subscribed with the options.
Option program 2018
Option program 2018 consists of 450 000 options that entitle the holders to subscribe one share per option. The options are divided to three series: A series of 170 000 options with subscription price of 5.75 eur/share and subscription period of 2.5.2021-31.5.2022; B series of 140 000 options with subscription price of 5-day average price after Q1/2019 results and subscription period of 2.5.2022-31.5.2023; and C series of 140 000 options with subscription price of 5-day average price after Q1/2020 results and subscription period of 2.5.2023-31.5.2024. A series options are intended to be allocated in 2018, B series in 2019 and C series in 2020. In connection to the 2018 option program, the board has set a share-ownership requirement for the participants.
LEGAL PROCESSES
The company has settled the dispute with a German headhunting company and the 55 KEUR cost impact is included in the review period's result.
ASSESSMENT OF RISKS AND UNCERTAINTIES
The risks related to the company have been described in detail in the prospectus published on 24 November 2017. The prospectus is available on the company's internet pages.
Reliable service delivery to customers is essential in cloud-based business. There are risks related, for example, to the functionalities of the software, to the cloud operations by the company, and to the outsourced computing capacity and network connections. Possible disruptions in the service can lead into decrease in customer satisfaction, which may lead into decreases in net sales and profitability.
In the implementation projects, the company configures its products to operate with the customer's existing systems. There may be delays or unexpected work related to customer projects. Although the majority of the projects are time and materials based, there are also fixed price projects. Especially the long-term identity and access management projects may produce unexpected and hard-to-forecast delays, or the needed work amount of the project may turn out to be significantly larger than originally expected.
Risks to immaterial property rights (IPR) are significant for the company. Risks include both the loss of own IPRs for others, as well as third-party IPR breaches by Efecte. Efecte seeks to minimize the risk with pedantic control of customer agreements and with careful evaluation of third-party software components taken into use.
The company's research and development activities as well as the service delivery are based on skillful personnel. If the company is unable recruit and retain skillful employees, the quality of the services may decrease, which can decrease net sales and profitability.
Investments into accelerating international growth increase the fixed costs, e.g. due to forward-looking recruitments, and may decrease profitability, if achieving growth turns out to be harder than expected.
LONG-TERM FINANCIAL TARGETS
Efecte aims for over 20% annual organic growth on average in 2017-2022. Substantial investments in international growth will decrease operating profit in the next few years, but the company aims for a double-digit operating profit percentage by the end of the strategy period.
FUTURE OUTLOOK
The company has done substantial investments in international growth, especially in Germany and Sweden, which is expected to accelerate our growth starting from the second quarter. Annual growth in net sales is expected to exceed 20%. Due to the growth investments, we expect EBITDA to be clearly negative. Profitability in the first year-half is expected to be lower than in the second year-half.
NEXT EARNINGS RELEASE
Efecte will publish a business review for 1-9/2018 on 7 November 2018.
Efecte Plc
Board of Directors
Additional information:
CFO Hannu Nyman, +358 050 306 9913
Certified adviser: Evli Bank Oyj, tel. +358 40 579 6210
A briefing for analysts, investors and media will be arranged on Tuesday 14 August 2018 at 11.00 at Hotel Scandic Simonkenttä, Simonkatu 9, Helsinki.
Participants are kindly requested to register by phone +358 50 306 9913 or by e-mail: hannu.nyman@efecte.com
www.efecte.com
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Financial information:
1. Consolidated income statement, balance sheet, cash flow statement and statement of changes in equity
2. Notes
3. Key figures
1. Consolidated income statement, balance sheet, cash flow statement and statement of changes in equity
CONSOLIDATED INCOME STATEMENT
| (1 000 EUR) | 1-6/18 | 1-6/17 | 2017 |
| Net sales | 5 983 | 5 038 | 10 615 |
| Materials and services | -520 | -581 | -1 043 |
| Personnel expenses | -4 639 | -3 167 | -6 502 |
| Other operating expenses | -1 862 | -1 193 | -2 766 |
| EBITDA | -1 038 | 96 | 305 |
| Other depreciation and amortisation | -168 | -123 | -263 |
| EBITA | - 1 205 | -26 | 41 |
| Goodwill amortisation | -9 | 0 | -6 |
| Group goodwill amortisation | -24 | -73 | -145 |
| Operating profit | -1 239 | -99 | -110 |
| Financial income and expenses | -17 | -12 | -731 |
| Profit before income tax | - 1 256 | -111 | -841 |
| Income tax | - | - | 0 |
| Profit for the period | -1 256 | -111 | -841 |
| Profit for the period, adjusted for IPO cost | -1 256 | -106 | -122 |
CONSOLIDATED BALANCE SHEET
| (1 000 EUR) | 6/2018 | 6/2017 | 12/2017 |
| Non-current assets | |||
| Development expenses | 933 | 810 | 925 |
| Other intangible assets | 11 | 10 | 13 |
| Goodwill | 71 | 86 | 79 |
| Group goodwill | - | 97 | 24 |
| Machinery and equipment | 42 | 17 | 36 |
| Current assets | |||
| Inventories, work in progress | 3 | - | 95 |
| Trade and other receivables (long-term) | 63 | 78 | 46 |
| Trade and other receivables short-term) | 2 372 | 1 747 | 2 027 |
| Short-term investments | 3 589 | 250 | 3 000 |
| Cash and cash equivalents | 2 074 | 2 050 | 3 098 |
| Total assets | 9 157 | 5 146 | 9 344 |
| Equity attributable to owners of the parent Company | |||
| Share capital | 80 | 11 | 80 |
| Reserve of invested non-restricted equity | 10 586 | 4 733 | 10 356 |
| Other reserves | - | 0 | 0 |
| Retained earnings | -6 101 | -4 091 | -4 822 |
| Total equity | 4 566 | 653 | 5 614 |
| Current liabilities | |||
| Loans and borrowings | - | 35 | - |
| Received advances | 2 550 | 2 482 | 1 435 |
| Trade payables | 449 | 720 | 410 |
| Other payables | 558 | 560 | 673 |
| Accruals | 1 035 | 694 | 1 211 |
| Total liabilities | 4 592 | 4 493 | 3 729 |
| Equity and liabilities | 9 157 | 5 146 | 9 344 |
SUMMARY CONSOLIDATED CASH FLOW STATEMENT
| (1 000 EUR) | 1-6/2018 | 1-6/2017 | 2017 |
| Cash flows from operating activities | |||
| Profit for the period | - 1 256 | -111 | -841 |
| Adjustments to profit for the period | 196 | 207 | 1 144 |
| Change in working capital | -593 | 1 320 | 249 |
| Interest and other financial cost paid | -6 | -7 | -14 |
| Interest and other financial income received | - | 0 | 2 |
| Income taxes paid | - | - | - |
| Net cash from operating activities | -474 | 1 408 | 539 |
| Cash flows from investing activities | |||
| Acquisition of tangible and intangible assets | -180 | -224 | -501 |
| Investments to short-term investments | -600 | - | -3 000 |
| Proceeds from short-term investments | - | - | 250 |
| Net cash from investing activities | -780 | -224 | -3 251 |
| Cash flows from financing activities | |||
| Share issues | 230 | - | 5 694 |
| Acquisition of treasury shares | - | - | -1 |
| Repayments of non-current borrowings | - | -135 | -171 |
| IPO costs | - | -5 | -719 |
| Dividends paid to the owners of the parent company | - | - | - |
| Net cash from financing activities | 230 | -140 | 4 803 |
| (Decrease)/increase in cash and cash equivalents | -1 024 | 1 044 | 2 091 |
| Cash and cash equivalents at the beginning of the period | 3 098 | 1 007 | 1 007 |
| Cash and cash equivalents at the end of the period | 2 074 | 2 050 | 3 098 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| 1000 eur | 30.6.2018 | 30.6.2017 | |
| Permanent equity | |||
| Share capital 1.1. | 80 | 11 | |
| Capitalisation issue | - | - | |
| Share capital 30.16. | 80 | 11 | |
| Legal reserve 1.1. | - | 0 | |
| Share issue | - | - | |
| Legal reserve 30.6. | - | 0 | |
| Permanent equity in total | 80 | 11 | |
| Distributable equity | |||
| Reserve of invested non-restricted equity 1.1. | 10 356 | 4 733 | |
| Capitalisation issue | - | - | |
| Share issue | 230 | - | |
| Acquisition of treasury shares | - | - | |
| Reserve of invested non-restricted equity 30.6. | 10 586 | 4 733 | |
| Retained earnings 1.1. | -4 822 | -3 979 | |
| Translation differences | -22 | -1 | |
| Retained earnings 30.6. | -4 844 | -3 979 | |
| Profit (loss) for the period | -1 256 | -111 | |
| Distributable equity | 4 486 | 642 | |
| Total equity | 4 566 | 653 |
2. Notes
2.1 Basis of preparation
This interim report has been prepared in accordance with the FAS recognition and measurement principles.
2.2 Net sales by type
| (1 000 EUR) | 1-6/18 | 1-6/17 | 2017 |
| SaaS | 2 730 | 2 189 | 4 645 |
| Perpetual licenses | 304 | 248 | 615 |
| Maintenance | 645 | 741 | 1 453 |
| Services | 2 305 | 1 859 | 3 901 |
| Group total | 5 983 | 5 038 | 10 615 |
2.3 Development of number of shares
| Number of shares | |
| 1.1.2017 | 1 483 531 |
| 30.6.2017 | 1 483 531 |
| Exercise of share options | 2 500 |
| Share split | 2 972 062 |
| Exercise of share options | 31 008 |
| Initial public offiering | 1 035 000 |
| 31.12.2017 | 5 524 101 |
| 1.1.2018 | 5 524 101 |
| Exercise of share options | 286 887 |
| 30.6.2018 | 5 810 988 |
On 30.6.2018 Efecte Plc owns 4 753 treasury shares, approx. 0.1% of the total amount of the shares.
2.4 Commitments
The following tables present the company's commitments not in the balance sheet on 30.6.2018 and 31.12.2017.
| Guarantees given | 30.6.2018 | 31.12.2017 |
| (thousand euro) | ||
| Office lease agreements | 59 | 42 |
| Liabilities secured by mortgage | 1 000 | 1 000 |
| Total | 1 059 | 1 042 |
| Lease commitment amounts | 30.6.2018 | 31.12.2017 |
| (thousand euro) | ||
| During next 12 months | 145 | 167 |
| Later | 201 | 265 |
| Total | 346 | 432 |
Lease agreements for computer equipment are mainly three-year lease agreements, and the equipment can be purchased at the end of the period with approx. 2-5% remainder value.
Other commitments
Parent company Efecte Plc has an ongoing office lease agreement. The lease period started on 1.7.2017 and the agreement can be terminated earliest on 30.6.2018 with a termination period of nine months. The monthly rent is approx. 18 thousand euro. The company's lease liability from this contract is approx. 277 thousand euro.
| 30.6.2018 | 31.12.2017 | |
| (thousand euro) | ||
| Payable during the next 12 months | 327 | 296 |
| Payable later | 127 | 293 |
| Total | 454 | 589 |
3. Key figures
| 1000 eur | 1-6/2018 | 1-6/2017 | 2017 | 2016 |
| Net Sales | 5 983 | 5 038 | 10 615 | 8 325 |
| SaaS | 2 730 | 2 189 | 4 645 | 3 439 |
| Licenses | 304 | 248 | 615 | 539 |
| Maintenance | 645 | 741 | 1 453 | 1 707 |
| Services | 2 305 | 1 859 | 3 901 | 2 640 |
| Domestic net sales | 5 025 | 4 290 | 9 102 | 7 142 |
| International net sales | 958 | 748 | 1 513 | 1 183 |
| Domestic sales (% of net sales) | 84 % | 85 % | 86 % | 86 % |
| International (% of net sales) | 16 % | 15 % | 14 % | 14 % |
| Recurring revenue | 3 375 | 2 930 | 6 099 | 5 146 |
| Recurring revenue (% of net sales) | 56 % | 58 % | 57 % | 62 % |
| SaaS MRR, monthly net sales at the end of the period | 483 | 393 | 425 | 328 |
| Net sales growth % | 18.8 % | - | 27.5 % | 20.9 % |
| EBITDA | -1 038 | 96 | 305 | 493 |
| EBITDA % | -17.3 % | 1.9 % | 2.9 % | 5.9 % |
| EBITA | -1 205 | -26 | 41 | 281 |
| EBITA % | -20.1 % | -0.5 % | 0.4 % | 3.4 % |
| Operating profit (EBIT) | -1 239 | -99 | -110 | 136 |
| Operating profit (EBIT) % | -20.7 | -2.0 % | -1.0 % | 1.6 % |
| Earnings for the period | -1 256 | -111 | -841 | 115 |
| Adjusted earnings for the period | -1 256 | -106 | -122 | 115 |
| Earnings/share (EPS), eur | -0.22 | -0.03 | -0.19 | 0.03 |
| Equity/share, eur | 0.79 | 0.15 | 1.02 | 0.17 |
| Adjusted earnings/share (EPS), eur | -0.22 | -0.02 | -0.03 | 0.03 |
| Balance sheet total | 9 157 | 5 146 | 9 344 | 3 572 |
| Equity | 4 566 | 653 | 5 614 | 765 |
| Net debt | -5 664 | -2 265 | -6 098 | -1 086 |
| Return on invested capital (ROI) % | -49 % | -24 % | -3 % | 14 % |
| Equity ratio % | 69 % | 25 % | 71 % | 33 % |
| Net gearing % | -124 % | -347 % | -109 % | -142 % |
| Research and development cost | 1 007 | 865 | 1 624 | 1 466 |
| Research and development cost, % of net sales | 17 % | 17 % | 15 % | 18 % |
| Order intake | 6 583 | 6 965 | 11 866 | 7 387 |
| Number of employees on average during the period | 102 | 70 | 77 | 59 |
| Number of employees at the end of the period | 103 | 74 | 96 | 63 |
| Number of shares (on average during period) | 5 599 889 | 4 437 783 | 4 516 679 | 4 427 044 |
| Number of shares at the end of the period | 5 806 235 | 4 437 783 | 5 510 541 | 4 437 783 |
Share-based key figures have been calculated as adjusted for 1:3 split that was done in October 2017.
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