QPR SOFTWARE STOCK EXCHANGE RELEASE, FEBRUARY 13, 2019 AT 9.00 AM

 

Net sales growth accelerated, significant improvement in operating profit

October – December 2018

  • Net sales amounted to EUR 2,671 thousand (2017: 2,107) with growth of 27%
  • Recurring revenue accounted for 48% of net sales (51).
  • Operating result rose to EUR 130 thousand (-322).
  • Operating margin improved to 4.9% (-15.3).
  • Result before taxes was EUR 128 thousand (-329).
  • Result for the quarter was EUR 189 thousand (-398).
  • Earnings per share increased to EUR 0.016 (-0.033).

January – December 2018

  • Net sales amounted to EUR 10,047 thousand (2017: 8,942) with growth of 12%
  • Recurring revenue accounted for 54% of net sales (54).
  • Operating result rose to EUR 521 thousand (-110).
  • Operating margin improved to 5.2% (-1.2).
  • Result before taxes was EUR 335 thousand (-148).
  • Result for the period was EUR 320 thousand (-294).
  • Earnings per share increased to EUR 0.027 (-0.025).


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 made significant investments in developing the Company´s new process mining software, as well as renewing the user interfaces of its software products. The Company estimates 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. The Company still sees growth potential for these products in emerging markets.

Outlook for 2019

QPR expects net sales to grow in 2019 (2018: EUR 10,047 thousand). The most significant sources of growth are the international process mining software sales of QPR ProcessAnalyzer, and the consulting services supporting QPR´s software business in Finland.

During financial year 2019, QPR will increase investments in its growing business segments. Due to these investments, the Company estimates that its operating result will be lower than in the previous year, while still remaining positive (2018: 5.2% of net sales).


KEY FIGURES

       
EUR in thousands,
unless otherwise indicated
Oct-Dec,
2018
Oct-Dec,
2017
Change,
%
Jan-Dec,
2018
Jan-Dec,
2017
Change,
%
       
Net sales2,6712,1072710,0478,94212
EBITDA362-726021,47080383
 % of net sales13.5-3.4 14.69.0 
Operating result130-322140521-110575
 % of net sales4.9-15.3 5.2-1.2 
Result before tax128-329139335-148326
Result for the period189-398148320-294209
 % of net sales7.1-18.9 3.2-3.3 
       
Earnings per share, EUR0.016-0.0331480.027-0.025209
Equity per share, EUR0.2310.22050.2310.2205
       
Cash flow from operating
activities
159-2391661,33598436
Cash and cash equivalents5053185950531859
Net borrowings-505-31859-505-31859
Gearing, %-17.6-11.651-17.6-11.651
Equity ratio, %48.648.2148.648.21
Return on equity, %26.6-54.414911.4-9.6219
Return on investment, %18.5-44.314218.9-3.3681

                                                                                                                                                               

REPORTING

This report complies with the accounting principles of IFRS 15, effective from 1 January 2018. The comparable Group key figures for financial year 2017 were restated in line with IFRS 15 and published as a stock exchange release on April 25, 2018. When preparing the Consolidated Financial Statements for 2018, these comparable figures were corrected so that the Group net sales and result for 2017 were EUR 142 thousand less than the restated comparable figures. Comparable figures were corrected for interim report period January – March 2017. The correction has no impact on figures reported for January – December 2018.

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, Software maintenance services, Cloud services and Consulting. New accounting principles do not impact revenue recognition of consulting sales, but there are changes in the software sales recognition arising from adoption of IFRS 15 standard. Earlier, QPR has not reported the share of Cloud services in its software sales.

Recurring revenue reported by the Company consists of Software maintenance services and Cloud services. In addition, recurring revenue includes the part of software license revenue arising from user rights that are invoiced upfront for the invoicing period under a contract of indefinite duration. This recurring revenue coming from software license sales is recognized at one point in time, in the beginning of the invoicing period. These contracts of indefinite duration are automatically renewed at the end of the agreed period (usually one year), unless the agreement is terminated within notice 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 location.


REVIEW BY THE CEO

QPR’s business progressed in line with our strategy, and net sales grew strongly in international software sales. International net sales increased 27% in 2018 driven by growth in software sales. In the last quarter of the year, growth in international net sales accelerated and rose to 44%.

In 2018, we delivered process mining and analytics software to many large global enterprises. Demand for process mining software was strongest in Europe, but in recent times, the demand has been growing fastest in the United States. In the telecommunications industry, we made many significant software deals both with global telecom equipment vendors, as well as telecommunications operators. Furthermore, interest towards process mining has increased significantly in the banking and finance sector.

We achieved great results also in performance management software sales in the Middle East and in our consulting business in Finland.

We will continue investing in our growth businesses. Our target is to grow software sales, as well as our consulting services supporting QPR´s software business in Finland. In line with our strategy, sales of consulting services around operational development and digital business optimization increased towards the end of 2018.

In the future, we will focus on further developing our process mining software product and seek to strengthen its position in the rapidly growing market. We seek to grow our international software sales through direct sales, as well as with our current reseller partners and through new strategic partnerships.

Jari Jaakkola
CEO


NET SALES DEVELOPMENT

NET SALES BY PRODUCT GROUP

       
EUR in thousandsOct-Dec,
2018
Oct-Dec,
2017
Change,
%
Jan-Dec,
2018
Jan-Dec,
2017
Change,
%
       
Software licenses626389612,6852,18423
Software maintenance services739772-42,9893,260-8
Cloud services347210651,31681961
Consulting959737303,0572,68014
Total2,6712,1072710,0478,94212

                                                                                   

NET SALES BY GEOGRAPHIC AREA

       
EUR in thousandsOct-Dec,
2018
Oct-Dec,
2017
Change,
%
Jan-Dec,
2018
Jan-Dec,
2017
Change,
%
       
Finland1,4281,244155,4445,3162
Europe incl. Russia and Turkey850535592,8172,28823
Rest of the world393328201,7861,33734
Total2,6712,1072710,0478,94212

 

October – December 2018

The fourth quarter net sales were EUR 2,671 thousand (2,107) and increased by 27% compared to the corresponding period last year. Recurring revenue accounted for 48% of net sales (51).

Software license net sales increased by 61%, driven by international software sales. Sales growth was especially strong among  telecommunications enterprises.

Software maintenance net sales decreased by 4% from the previous year. Cloud service net sales grew by 65% as compared to previous year.

Consulting net sales increased by 30%, which resulted mainly from a growth in consulting sales around operational development, digitalization and change management in the Finnish market.

Net sales in international markets grew 44%, which was in large part due to the strong increase in software sales. In Finland, net sales growth amounted to 15%, mainly due to the increase in consulting net sales.

Of the Group net sales, 53% (59) derived from Finland, 32% (25) from the rest of Europe (including Russia and Turkey) and 15% (16) from the rest of the world.


January – December 2018

Net sales in January – December were EUR 10,047 thousand (8,942) and grew 12%. Recurring revenue accounted for 54% (54) of net sales.

Software license net sales increased by 23%, driven by international software sales.

Software maintenance net sales decreased by 8% from the previous year. Cloud service net sales grew by 61% as compared to previous year. In line with the industry’s general development, customers are increasingly selecting to use software as a cloud-based service. Especially our process mining and analytics customers using QPR ProcessAnalyzer tend to opt for this choice. 

Consulting net sales increased by 14%, which resulted mainly from a growth in consulting sales around operational development, digitalization and change management in the Finnish market. In addition, new deployments of our performance management software, QPR Metrics, at customer sites in the Middle East had a positive impact on consulting net sales.

International net sales grew 27%, driven by growth in software sales. QPR ProcessAnalyzer deliveries to European customers increased, as well as performance management software deliveries to customers in the Middle East. Net sales in Finland increased by 2% due to growth in consulting net sales.

Of the Group net sales, 54% (59) derived from Finland, 28% (26) from the rest of Europe (including Russia and Turkey) and 18% (15) from the rest of the world.

                                                                                     

FINANCIAL PERFORMANCE

October – December 2018

The growth of Group net sales in October – December outpaced the growth of costs, allowing operating results to rise to EUR 130 thousand (-322), equaling 4.9% of net sales (-15.3).

Personnel costs increased by 11%, which was mainly due to the new personnel recruited for growth businesses. Furthermore, materials and services costs rose from previous year due to an increase in reseller commissions.

The Group´s October – December fixed costs were EUR 2,207 thousand (2,188), which accounted for an increase of 0.9% compared to last year´s corresponding period. Personnel expenses represented 75.6% (68.9) of fixed costs and amounted to EUR 1,667 thousand (1,506).

The Group´s October – December result before tax was EUR 128 thousand (-329) and result for the period was EUR 189 thousand (-398). Earnings per share were EUR 0.016 (-0.033).


January – December 2018

In January – December reporting period, the Group operating result was EUR 521 thousand (-110), or 5.2% (-1.2) of net sales. Strategic investments in growth businesses continued, which increased personnel, sales and marketing costs.

The Group´s fixed costs were EUR 8,320 (7,916), which accounted for an increase of 5.1% compared to prior year. Personnel costs represented 73.8% (71.8) of fixed costs and were EUR 6,142 thousand (5,682). External resources in product development were replaced by internal personnel, which lowered other operating expenses included in fixed costs. Credit losses, inclusive in fixed costs, decreased and were valued at EUR 10 thousand (58).

The result before tax was EUR 335 thousand (-148) and the result for the period was EUR 320 thousand (-294). Taxes recorded for the period amount to EUR 15 thousand (146). Taxes decreased from previous year, because a substantial part of result reported in accordance with IFRS 15 was taxed in year 2017. Earnings per share were EUR 0.027 (-0.025).


FINANCE AND INVESTMENTS

In January – December, cash flow from operating activities was EUR 1,335 thousand (984) and in October – December EUR 159 thousand (-239). Full-year cash flow from operating activities was positively impacted by improved financial results, changes in invoicing cycle and a decrease in taxes. Fourth quarter cash flow was mainly impacted by improved financial results. Cash and cash equivalents at the end of the reporting period were EUR 505 thousand (318).

Net financial items in the reporting period January – December were EUR 187 thousand (38). Net financial expenses included net foreign exchange losses of EUR 193 thousand (43). Exceptionally large currency exchange losses were caused by the liquidation of the Group´s subsidiary in Russia. The currency exchange losses arise from the subsidiary´s working capital and were initiated when Russian ruble weakened significantly during the years between 2009 – 2018. Currency losses and gains related to this have been reported in previous years as part of other comprehensive income, and after liquidation of the subsidiary as financial expenses in the Group´s profit and loss statement. Thus, these currency losses do not have any impact on retained earnings or cash flow from operating activities.

January – December investments totaled EUR 790 thousand (872) and were mainly product development expenditure.

The Group’s financial position is strong, and it had no interest-bearing liabilities at the end of the reporting period. The gearing ratio was -17.6% (-11.6). Equity ratio at the end of the reporting period was 48.6% (48.2).


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 – December reporting period, product development expenses were EUR 1,989 thousand (2,274), which equal 20% of net sales (25). Product development expenses worth EUR 732 thousand (792) were capitalized. The amortization of capitalized product development expenses was EUR 762 thousand (694).

In October – December, product development expenses were EUR 550 thousand (545), or 21% of net sales (26). Product development expenses worth EUR 167 thousand (152) were capitalized. The amortization of capitalized product development expenses was EUR 191 thousand (196).

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 84 persons (76). The average number of personnel during the January – December reporting period was 81 (76).

At the end of the reporting period the average age of employees was 40.8 (39.9) years. Women accounted for 23% (17) of the employees, and men 77% (83). Of all personnel, sales and marketing employed 17% (16), consulting and customer service 43% (42), product development 31% (34) and administration 9% (8).

For incentive purposes, the Company has a bonus program that covers all employees. Remuneration of the top management consists of salary, fringe benefits, and a possible annual bonus based mainly on Group and business unit net sales. In 2018, the maximum annual bonus for members of the executive management team, including the CEO, was 30% of the annual base salary. A bonus totaling EUR 22 thousand (19) is paid to the executive management team for 2018.


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 growth in international software sales and consulting services in our home market, Finland. We foresee significant growth potential especially in the process mining business, where we aim for an annual growth of more than 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, where our target is to gain a significant share in the rapidly growing process mining and analytics market.

In the next few years, we seek growth especially in our international software sales. To reach this target, we will continue to increase our resources and investments in international marketing and sales.

We also actively seek strategic partnerships to strengthen our product development and international software sales.


SHARES AND SHAREHOLDERS

    
Trading of sharesJan-Dec,
2018
Jan-Dec,
2017
Change,
%
    
Shares traded, pcs1,026,0971,552,104-34
Volume, EUR1,694,0882,463,215-31
% of shares8.612.9 
Average trading price, EUR1.651.594
    
Shares and market capitalizationDec 31,
2018
Dec 31,
2017
Change,
%
    
Total number of shares, pcs12,444,86312,444,863-
Treasury shares, pcs457,009457,009-
Book counter value, EUR0.110.11-
Outstanding shares, pcs11,987,85411,987,854-
Number of shareholders1,1511,246-8
Closing price, EUR1.631.71-5
Market capitalization, EUR19,540,20220,499,230-5
Book counter value of all treasury
shares, EUR
50,27150,271-
Total purchase value of all treasury
shares, EUR
439,307439,307-
Treasury shares, % of all shares3.73.7-

                                                 

GOVERNANCE

The Annual General Meeting resolved that the number of Board Members is four (4) and re-elected Juha Häkämies, Vesa-Pekka Leskinen, Topi Piela and Taina Sipilä as members of the Company´s Board of Directors. The Board Members’ term of office expires at the end of the next Annual General Meeting. At the Board’s 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 12, 2018 and available on the investors section of the Company's web site, http://www.qpr.com/investors/stock-exchange-releases.htm.


EVENTS AFTER THE REPORTING PERIOD

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%.


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 of any international business. QPR seeks to limit this credit risk by continuously monitoring standard payment terms, receivables and credit limits. The value of trade receivables over 60 days past due was 10% (8) of total trade receivables at the end of the quarter.

Approximately 67% of the Group’s trade receivables were in euro at the end of the quarter (80). At the end of the quarter, the Company had not hedged its non-euro trade receivables.

Risks and risk management practices related to the Company’s business are further described in the Annual Report 2017, pages 21-23 (https://www.qpr.com/investors/financial-information/annual-reports)


THE BOARD OF DIRECTORS’ PROPOSAL ON DIVIDEND

The distributable funds of the parent company were EUR 1,005 thousand on December 31, 2018. The Board of Directors will propose to the Annual General Meeting to be held on April 4, 2019 that no dividend be paid for the financial year 2018.

No material changes have taken place in the Company’s financial position after the end of the financial year.


FINANCIAL INFORMATION

In 2019, QPR Software Plc will publish its financial information, in Finnish and English, as follows:

  • Annual Report 2018: Tuesday, March 5, 2019
  • Interim Report 1-3/2019: Thursday, April 25, 2019
  • Half-year Financial Report 1-6/2019: Thursday, August 1, 2019
  • Interim Report 1-9/2019: Thursday, October 24, 2019

The Annual General Meeting will be held on Thursday, April 4, 2019.


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.

 


CONSOLIDATED COMPREHENSIVE INCOME STATEMENT

       
EUR in thousands, unless
otherwise indicated
Oct-Dec,
2018
Oct-Dec,
2017
Change,
%
Jan-Dec,
2018
Jan-Dec,
2017
Change,
%
       
Net sales2,6712,1072710,0478,94212
Other operating income05-99-1018-154
       
Materials and services335246361,1961,1544
Employee benefit expenses1,6671,506116,1425,6828
Other operating expenses308432-291,2291,320-7
EBITDA362-726021,47080383
       
Depreciation and amortization231250-79499134
Operating result130-322140521-110575
       
Financial income and expenses-2-7-66-187-38385
Result before tax128-329139335-148326
       
Income taxes62-70-189-15-146-90
Result for the period189-398148320-294209
       
       
Earnings per share, EUR
(basic and diluted)
0.016-0.0331480.027-0.025209
       
Consolidated statement of
comprehensive income:
      
 Result for the period189-398148320-294209
Other items in comprehensive
income that may be reclassified
subsequently to profit or loss:
      
 Exchange differences on
 translating foreign operations
02-108179-72,540
Total comprehensive income189-396148499-302266
       


CONSOLIDATED BALANCE SHEET

    
EUR in thousandsDec 31,
2018
Dec 31,
2017
Change,
%
    
Assets   
    
Non-current assets:   
 Intangible assets1,8311,952-6
 Goodwill5135130
 Tangible assets116153-24
 Other non-current assets62127-51
Total non-current assets2,5212,745-8
    
Current assets:   
 Trade and other receivables3,4093,744-9
 Cash and cash equivalents50531859
Total current assets3,9154,061-4
    
Total assets6,4366,807-5
    
Equity and liabilities   
    
Equity:   
 Share capital1,3591,3590
 Other funds21210
 Treasury shares-439-4390
 Translation differences-61-240-75
 Invested non-restricted equity fund550
 Retained earnings1,9872,027-2
Equity attributable to shareholders of
the parent company
2,8732,7335
    
Current liabilities:   
 Advances received5231,140-54
 Accrued expenses and prepaid income2,4892,3148
 Trade and other payables551620-11
Total current liabilities3,5634,074-13
    
Total liabilities3,5634,074-13
    
Total equity and liabilities6,4366,807-5

                                                

CONSOLIDATED CASH FLOW STATEMENT

       
EUR in thousandsOct-Dec,
2018
Oct-Dec,
2017
Change,
%
Jan-Dec,
2018
Jan-Dec,
2017
Change,
%
       
Cash flow from operating activities:      
 Result for the period189-398148320-294209
 Adjustments to the result171838-801,3271,09122
 Working capital changes-191-68272-267343-178
 Interest and other financial
 expenses paid
-6-447-28-37-26
 Interest and other financial
 income received
2-3170910-4
 Income taxes paid-610-158-27-128-79
Net cash from operating activities159-2391661,33598436
       
Cash flow from investing activities:      
 Purchases of tangible and
 intangible assets
-188-16216-790-872-9
Net cash used in investing activities-188-16216-790-872-9
       
Cash flow from financing activities:      
 Dividends paid00 -360-3600
Net cash used in financing activities00 -360-3600
       
Net change in cash and cash
equivalents
-30-40193185-247175
Cash and cash equivalents
at the beginning of the period
534719-26318565-44
Effects of exchange rate changes
on cash and cash equivalents
1-1371201,286
Cash and cash equivalents
at the end of the period
5053185950531859

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

EUR in thousandsShare
capital
Other
funds
Translation
differences
Treasury
shares
Invested non-
restricted
equity fund
Retained
earnings
Total
Equity Dec 31, 20161,35921-233-43952,5383,252
Equity IFRS changes     142142
Equity Jan 1, 20171,35921-233-43952,6813,394
Dividends paid     -360-360
Comprehensive income  -7  -294-302
Equity Dec 31, 20171,35921-240-43952,0272,733
Dividends paid     -360-360
Comprehensive income  179  320499
Equity Dec 31, 20181,35921-61-43951,9872,873


            
                                                                         

NOTES TO INTERIM FINANCIAL STATEMENTS

ACCOUNTING PRINCIPLES 

This report complies with requirements of IAS 34 ”Interim Financial Reporting”. Starting from the beginning of 2018, the Group has applied certain new or revised IFRS standards and IFRIC interpretations, as described in the Consolidated Financial Statements 2017. Implementation of standard IFRS 15 “Revenue from Contracts with Customers” has changed revenue recognition, generation of operating profit and key figures, as described in the Reporting section of this report. 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 2017 financial statements.

When preparing the consolidated financial statements, 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. 


INTANGIBLE AND TANGIBLE ASSETS

   
EUR in thousandsJan-Dec,
2018
Jan-Dec,
2017
   
Increase in intangible assets:  
 Acquisition cost Jan 19,3188,521
 Increase739797
   
Increase in tangible assets:  
 Acquisition cost Jan 11,8211,746
 Increase5075


PLEDGES AND COMMITMENTS

    
EUR in thousandsDec 31,
2018
Dec 31,
2017
Change,
%
    
Business mortgages (held by the Company)1,3861,3880
    
Minimum lease payments based on lease agreements:   
 Maturing in less than one year267278-4
 Maturing in 1-5 years25488190
Total52136543
    
Total pledges and commitments1,9071,7549

                                                 

CONSOLIDATED INCOME STATEMENT BY QUARTER

      
EUR in thousandsQ4
2018
Q3
2018
Q2
2018
Q1
2018
Q4
2017
      
Net sales2,6712,2222,2722,8822,107
Other operating income00-5-55
      
Materials and services335218255388246
Employee benefit expenses1,6671,3211,6031,5511,506
Other operating expenses308336288297432
EBITDA362348120640-72
      
Depreciation and amortization231239238240250
Operating result130109-118400-322
      
Financial income and expenses-241-189-7
Result before tax128113-117211-329
      
Income taxes62-2232-86-70
Result for the period18991-85124-398

                                                                         

GROUP KEY FIGURES

EUR in thousands, unless
otherwise indicated
Jan-Dec or
Dec 31, 2018
Jan-Dec or
Dec 31, 2017
   
Net sales10,0478,942
Net sales growth, %12.4 
EBITDA1,470803
 % of net sales14.69.0
Operating result521-110
 % of net sales5.2-1.2
Result before tax335-148
 % of net sales3.3-1.7
Result for the period320-294
 % of net sales3.2-3.3
   
Return on equity (per annum), %11.4-9.6
Return on investment (per annum), %18.9-3.3
Cash and cash equivalents505318
Net borrowings-505-318
Equity2,8732,733
Gearing, %-17.6-11.6
Equity ratio, %48.648.2
Total balance sheet6,4366,807
   
Investments in non-current assets790872
 % of net sales7.99.7
Product development expenses1,9892,274
 % of net sales19.825.4
   
Average number of personnel8176
Personnel at the beginning of period7663
Personnel at the end of period8476
   
Earnings per share, EUR0.027-0.025
Equity per share, EUR0.2310.220