Pflichtmitteilungen
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SQS Software Quality Systems AG
Preliminary Results
For the year ended 31st December 2007
SQS Software Quality Systems AG (AIM: SQS.L), the global leader in independent software testing and quality management services, today announces its preliminary results for the year ended 31 December 2007.
Financial Highlights:
- Turnover up 53% to €121.1m (2006: €78.9m)
- 27% organic turnover growth, significantly outpacing growth of IT services sector
- Adj. Profit before tax* up 96% to €10.5m (2006: €5.3m)
- Strong net cash position of €6.9m (2006: net debt of €3.2m) with excellent cash generation from operations of €11.4m (2006: €1.6m)
- Adjusted** earnings per share up 46% to €0.41 (2006: €0.28)
- Double two year dividend of €0.20 per share
*adjusted to add back pro forma interests to be shown under IFRS of €0.6m on future payment milestones for acquisitions and €0.2m for amortisation on Triton intangible assets required under IFRS
**based on net income increased by €0.4m on IFRS tax differences, by €0.6m of pro forma interests, by €0.2m for amortisation on intangible assets from an acquisition but including actual profit taxes of €2.6m payable under local GAAP
Corporate Highlights:
- Further margin improvement due to higher pricing and excellent utilisation rates
- New client wins extending across 11 different industry verticals
- Strengthened delivery capabilities, investment in more than 246 new fee earning consultants
- Increased number of long term contracts and offshore projects with offshore facility in South Africa and newly established German speaking offshore centre in Egypt
- Successful placing in April 2007 raising £3,285,000 at 219 pence per share widening institutional investment base
- Successful integration of Cresta Ltd and Triton GmbH – both immediately earnings enhancing
- David Cotterell, previously MD of Cresta Ltd, appointed to SQS Group Management Board
Commenting on the results, Rudolf van Megen, CEO, said:
"SQS had an excellent year strengthening its position as the global leader in independent software testing and quality management services. Higher pricing, excellent utilisation rates and tight cost control enabled us to further increase gross margins. We are delighted to pay a double two year dividend of €0.20 per share.
In 2008, our focus will continue to be on both organic and acquisitive growth, further strengthening our foothold in Europeand exploring opportunities to expand our geographic footprint into the Asia/Oceanic region.
Trading has been very good in the year to date, and we are seeing significant customer interest for our software testing services, well ahead of the comparable period last year. More than 51% of the revenue expected for 2008 has either already been booked or contracted, a record for SQS, and the pipeline is strong. We look to the future with confidence.”
For further information please contact:
SQS Software Quality Systems AG Rudolf van Megen, CEO Rene Gawron, CFO |
On the day +44 (0) 20 7457 2020
Thereafter +49 22 03 91 54 0 |
Altium |
020 7484 4040 |
College Hill Sara Musgrave / Ben Way |
020 4457 2020 |
Print resolution images are available for the media to view and download from www.vismedia.co.uk
Notes to Editors
SQS is the global leader in independent software testing and quality management services. SQS consultants design and oversee quality management processes during software and IT systems development and test the resulting products for errors and omissions.
Headquartered in Cologne, Germany, SQS now has more than 1000 employees across Europe and in South Africa. The Group has a strong presence in Germany (Cologne, Munich, Frankfurt, Stuttgart, Goerlitz and Hamburg) and in the UK (London, Woking, Birmingham, Manchester, Belfast), Ireland, Netherlands, Switzerland, Austria and South Africa. SQS also has a minor stake in an operation in Portugal and a partnership operation in Spain.
SQS has three components to its service offering:
- IT professional services: within its broad range of software testing and quality management services, SQS has enhanced its offerings in the fields of management consulting (e.g. project and risk management), application intelligence, and outsourcing/offshoring.
- Tools, licences, and maintenance: SQS's specialist range of software testing tools which work independently from and as add-ons to the tools available from competitors has been enhanced by successful market deployment of version 8.0 of our SQS-Test Professional product.
- IT training and IT events: the training business was extended. Two certification schemes were established (INTCCM for Configuration Management and IREB for Requirements Management); this will continue to result in additional courses including certification. ISTQB and ISEB courses were updated for the new versions of the syllabus.
With more than 4,000 completed projects under its belt, SQS has approximately 400 customers including 36 FTSE-100 companies, half of the DAX 30 and nearly a third of the STOXX-50. It supports clients across 17 vertical industries, including major corporations such as Zurich Group, Deutsche Telekom, Barclays, BP, Boots, Credit Suisse, Volkswagen, and Daimler
The successful SQC conferences (Software and Systems Quality Conferences), held in Germany, the UK and in Switzerland, are the largest quality management and software testing events in Europe. SQS plans to expand these into Ireland and the French speaking part of Switzerland (Geneva) in 2008. The total number of delegates attending increased to 1550 (2006: 1,470); the number of exhibitors increased from 82 to 88 while the number of sponsors stayed the same at 26.
Chief Executive's Statement
Introduction
I am delighted to report SQS's preliminary results for 2007. SQS had another excellent year, recording a 53% increase in revenues and a 96% increase in profits, beating market expectations by a comfortable margin.
SQS achieved an organic growth rate of 27%, more than five times the 5% growth rate for the European IT Services Market calculated by IDC in 2007.
At the time of our admission to AIM in September 2005 we indicated that it was our plan to double the size of our business within a two year period. I am pleased to report that as a result of strong organic and acquisitive growth, SQS has more than doubled its revenues since joining AIM, further consolidating its position as the global leader in independent software testing and quality management services.
I am also pleased to report that SQS has extended the vertical markets in which it operates, experiencing above average growth in new verticals such as legal and media, electronics and technology and utilities. SQS currently has approximately 400 clients, spread across 11 verticals.
Financial Results
Turnover from continuing operations rose 53% to €121.1m (2006: €78.9m) and underlying adjusted profit before tax increased by 96% to €10.5m (2006: €5.3m).
SQS enjoyed strong organic growth of nearly 27% and 26% acquisitive growth from the first-time consolidation impact of Cresta Group Ltd. in the first half of 2007 and a four month contribution from Triton.
A favourable market environment, particularly in Germany, the UK and Switzerland enabled pricing increases in excess of volume growth resulting in profits growth at almost twice the rate of sales.
Utilisation of billable consultants remained strong throughout the Group at an average of 187 billed days per consultant (2006: 185 billed days).
Turnover growth was highest in the United Kingdom, Ireland and South Africa (UKISA) growing by 105% across all three countries. This was primarily due to the contribution from Cresta, acquired in July 2006, but also evidences continuing strong organic growth in these countries.
In Germany, SQS experienced 33.1% organic growth and 27.9% organic growth in Switzerland. This confirms our belief that our position as market leader in those regional markets enables us to drive revenue growth significantly above market growth rates.
Adjusted earnings per share of €0.41 rose by 46.4% (2006: €0.28). This increase reflects the return to normalized tax rates (24%) payable under local GAAP (2006: 14% with tax breaks) and an increase of the weighted average number of issued shares to 19.1m shares in 2007 (2006: 16.5m). In 2007 additional shares were issued as deferred consideration of the acquisition of Cresta Ltd. and in a secondary placement to broaden the shareholder base.
The balance sheet has been considerably strengthened during the year reflecting the acquisitions of Triton and Cresta (second payment milestone) and the retained profits in 2007. We reduced our borrowings by €5.5m to €0.3m (2006: to €5.8m). Cash balances at the year end stood at €7.2m (2006: €2.6m) reflecting strong operating cash flow.
Business Review
During 2007 we continued to strengthen our business, establishing clear market leadership in the United Kingdom, Germany and Switzerland. In those regions we experienced high utilisation rates whilst simultaneously reducing overheads relative to turnover.
The acquisition of Triton in August 2007 boosted SQS’s market position in Austria and expanded the Group’s traditional software testing and quality management business into management consulting services. Immediately earnings enhancing, the acquisition provides SQS with valuable cross selling opportunities into its software testing division.
By the end of 2007 the total number of SQS employees stood at 1012, up from 733 in 2006. We increased the number of fee earning SQS consultants by 246 to 809 (2006: 563) mainly through recruitment and to a small extent by the acquisition of Triton. In line with our existing employee base, our new consultants predominantly have strong software engineering backgrounds as well as senior project management skills. All costs for recruiting and training the new employees were fully expensed during 2007.
The total number of SQS clients continues to stand at approximately 400. SQS keeps a tight focus on the 55 ‘strategic’ clients who contribute 65% to the Group’s revenue whilst striving to further develop the remaining odd 345 accounts. Over the last few years, a strategic goal has been to increase the revenue contribution from the smaller vertical markets in which SQS operates and to that end I am pleased to report that SQS clients are now spread across 11 verticals with the biggest client accounting for only 7% of revenue. Over the last three years, the utility market has grown from 0.5% of total revenue to 6%, electronics & technology from 1% to 6% and legal & media from 3% to 5%. This diversification underpins our strategy not to be dependent on too few clients or verticals.
During the year we continued to develop our long term software testing outsourcing business by increasing the revenue contribution from long term contracts with a fixed order backlog exceeding 12 months to 11% (2006: 8%) of the total revenue.
We have established a “home-shore” test centre in the eastern part of Germany which operates like an overseas off-shore centre, in that it provides significant cost advantages over onsite resources, with the added advantage of German speaking consultants. As a first step we hired 30 consultants in Q1 2008.
We have also begun measures to establish a German speaking offshore centre in Egypt to help assist with client demand.
Geographic review
Germany
Revenue in Germany was up 33% to €55.7m in 2007 (2006: €41.9m) as the investment in consultants to cater for additional demand paid off. Contribution to total revenue declined to 46% compared with 53% in the prior year. We secured key contract renewals with all our large clients and other major customers, all of which provide a solid base for the current year. The high calibre sales managers hired in the last two years have enabled SQS to grow its business even stronger than the organic growth rates in other Group regions. The EBIT margin of 6.3% slightly improved from 2006 (6.1%), and includes group costs borne by the German entity which acts both as a holding for the Group and the German business.
United Kingdom/Ireland/South Africa (“UKISA”).
The United Kingdom, the second largest regional segment and the largest European market for IT services in general, generated revenues of €48.7m (2006: € 23.7m), 40% of the Group's total. This represented a 105% increase year on year driven mainly by the acquisition of Cresta which was consolidated in the first half of the year for the first time. On an unaudited pro forma basis adding Cresta for the full year in 2006, revenue in UKISA would have increased by 34% from €36.3m in 2006. Integration of SQS UK and Cresta has been very successful with further improved EBIT margins, now at 11.5% compared with 10.4% in the previous year.
Switzerland
Revenue in Switzerland grew by 27.9% to €12.5m (2006: €9.8m), demonstrating continued high organic growth rates. This year on year increase resulted predominantly from repeat project business with major Swiss clients in financial services and telecommunications markets coupled with significant new wins with large clients. The number of local employees, mainly consultants, increased by 59% to 65 at the year end (2006 year end: 41).
Other European Countries (Austria, the Netherlands and other)
The other European countries segment contributed an aggregate revenue of €4.1m (2006: €3.5m). Other European Countries represented 3.4% of the Group's total turnover overall. The year on year increase of 16.5% came from our Dutch business and the first time consolidation of Triton in Austria for the last four months of 2007. The measures we announced last year have paid off by improving margins and reducing overhead costs which resulted in a strongly improved positive result of 8.2% in 2007.
Market drivers
In recent years, we have witnessed a growing desire within companies to outsource their software testing requirements to trusted independent external parties. This is a trend we see continuing.
A new market research on the software testing market commissioned by SQS and conducted by Pierre Audouin Consultants in 13 European countries among approx. 1000 IT decision makers in February 2008 revealed that:
- § 79% acknowledge that software testing is essential in IT product development;
- § two thirds consider the independence of the test team from the software development team as important;
- § 79% agree that test automation strongly contributes to real value returns in IT investments and
- § 34% believe that the budget for external test consultants will grow, 34% said it will stay the same but only 3% replied it will go down.
Current regulatory market drivers include higher demands imposed on IT systems by directives such as Basel II, SEPA (Single European Payment Area) or MiFID (Markets in Financial Instruments Directive).
In addition to these regulatory developments, a high number of IT projects either fail or run out of budget and/or time. This further demonstrates the importance of independent software testing. Continuing return on investment (ROI) pressures, coupled with increasing "industrialisation" of the software engineering process have led to an increased demand for outsourced software testing as well as better quality management of embedded systems.
Strategy
Our strategy is to strengthen our market position as the leading independent pan-European provider of quality management and testing services for software development by growing both organically and through acquisition.
We aim to grow organically by adding more consultants and offering a greater range of services to our existing client base. In particular, we will look to increase our market presence in test outsourcing, and offshoring. The existing client relationships, of which we have over 400, are the backbone to our future growth.
SQS has a strong foothold in Europe and we will look to strengthen this foothold in certain key European markets with acquisitions. We will also look to widen our geographic footprint in 2008, exploring new attractive growth markets in the Asia/Oceanic region. Our strong operating cash flow will contribute to funding further acquisitions.
Dividend
As previously announced, the Company proposes to pay a double dividend for its 2007 financial year, incorporating the delayed 2006 dividend with the 2007 dividend.
The 2006 dividend was delayed because German law required SQS to reorganise its net asset base in order to pay a dividend to shareholders. This reorganisation is now complete allowing the Company to pay both the 2006 and 2007 dividend. In total a 20 €-cents dividend is proposed per share.
Subject to shareholder assembly approval on 28 May 2008, the double dividend will be paid on 29 May 2008 to all shareholders on the register at 28 May 2008.
SQS proposes to continue to operate a dividend policy in line with earnings.
The Board
Heinz Bons, Chief Operating Officer (COO) and co-founder of SQS, retired from the Management Board on 31 December 2007. In anticipation of Heinz Bons’ retirement, SQS established three regional management teams - “Germany”, “UK/Ireland/South Africa”, and “Switzerland/Austria/The Netherlands/Management Consulting” – which now operate on a regional COO basis reporting directly to the Executive Board. Heinz Bons continues to act as a principal consultant for the Company going forward and on behalf of the Board I’d like to thank him for his invaluable contribution to SQS over the last 25 years.
At the supervisory board meeting on March 3, 2008, David Cotterell was appointed as a member of the Management Board effective July 1, 2008. Mr. Cotterell currently heads SQS’s United Kingdom, Ireland and South African entities and was the managing director of Cresta Ltd. before it was acquired by SQS.
Employees
On behalf of the board, I would like to thank all our employees for their contribution, hard work, and excellent support and superior deliverables to projects during the last year. I am confident that we have the team in place to capitalise on the opportunities available and to enable us to deliver long term value to our shareholders.
Outlook
During 2007, SQS further strengthened its position as the global leader in quality management and testing services growing turnover and adjusted profit by 53% and 96% respectively.
In 2008, our focus will continue to be on both organic and acquisitive growth, further strengthening our foothold in Europe and exploring opportunities to expand our geographic footprint into the Asia/Oceanic region.
Trading has been very good in the year to date, and we are seeing significant customer interest for our software testing services, well ahead of the comparable period last year. More than 51% of the revenue expected for 2008 has either already been booked or contracted, a record for SQS, and the pipeline is strong. We look to the future with confidence.
Rudolf van Megen
Chief Executive Officer
6th March 2008
Finance Director's Review
Results
Total revenue for the year grew by 53.4% to €121.1m (2006: €78.9m). IT Professional Services was the major contributor with revenue of €114.7m (2006: €73.6m), a 56% increase year on year. Revenue from tool licenses and maintenance was €2.2m (2006: €2.5m) a 12% decrease year on year, with IT training and IT events contributing € 4.2m (2006: €2.75m) a 52% increase.
EBITDA was up 66.0% to €14.1m (2006: €8.5m) while profit before tax was €9.7m (2006: €5.1m). Adjusted profit before tax (adjusted to add back pro forma interests to be shown under IFRS of €0.6m on future payment milestones for the Cresta Ltd. and Triton acquisitions and €0.2m for amortisation on Triton intangible assets required by IFRS) was €10.5m (2006: €5.3m) up 95.8%. The improved result was based on better gross margins due to higher pricing and slightly improved consultant’s utilisation, reduced overheads relative to sales and improved net interest. Adjusted* earnings per share improved to €0.41 (2006: €0.28).
*based on net income increased by €0.4m on IFRS tax differences, by €0.6m of pro forma interests, by €0.2m for amortisation on intangible assets from an acquisition but including actual profit taxes of €2.6m payable under local GAAP
Costs
In 2007, SQS had administrative costs of €19.2m (2006: €12.2m), representing 15.9% of turnover (2006: 15.4% of turnover). Costs increased in absolute terms because of the full year Cresta consolidation, build out of local infrastructure in Switzerland, hiring & training costs for new employees and includes €0.2m for amortisation on intangible assets from the Triton acquisition. Sales & marketing costs of €8.6m (2006: €5.7m) slightly decreased relative to sales (to 7.1% from 7.2%), as we made better use of the sales resources to support current and future organic growth of the business. Research and development costs of €3.6m (2006: €3.4m) fell significantly relative to sales (to 3.0% from 4.2%), reflecting amortisation of past capitalized expenditures for version 8.0 of the SQS-TEST Professional tool, the tool Test Strategist and course development for our training products.
Taxation
The Group tax charge of €2.9m (2006: €0.4m) has two components; one is tax on profits payable under local GAAP of €2.6m (2006: €0.8m), and the other is IFRS and other tax differences and deferred taxes that we are required to show under IFRS of €0.4m (2006: €(0.4)m). As the tax breaks SQS had enjoyed over the past few years have been nearly exhausted in 2007, actual and IFRS tax rates are expected to be more in line with each other in the future.
Cash Flow and Financing
The group generated an operating cash inflow of €11.4m (2006: €1.6m) thus converting more than its adjusted PBT (€10.5m) into cash flow. Despite the strong organic growth rates the Company managed to improve operating cash flow due to a faster invoicing process and quicker collection of receivables. Cash flow from financing activities was €(1.2)m (2006: €1.8m) and includes a pay back of borrowings of €5.5m and proceeds of €4.8m from a secondary placement of new shares in April 2007. Cash flow from investments was €(5.5)m (2006: €(1.7)m €), including €(2.1)m (2006: €(2.9)m) for capitalised R&D for products and investments in intangible assets and €(4.4)m (2006: €(4.5)m) as cash part for the acquisition of the Triton shares (2006: Cresta shares). In total, cash was at €7.2m (2006: €2.6m) at the year end.
Foreign Exchange
Approximately 55% of the Group’s turnover is generated in Euros. With the exception of SQS UK, the South African office and Software Quality Systems (Schweiz) AG, all subsidiaries of SQS are located in the currency area of the Euro. For the conversion of the local currency into Euros, the average official fixed exchange rate was chosen. For the conversion of the balance sheet items from foreign currency into Euros, the official mean rate as at 31 December 2007 was used.
The Group's exposure to foreign exchange risks is negligible as more than 90% of the business is billed and served locally.
Amortisation
Amortisation of goodwill is no longer carried out due to the changed IFRS accounting rules. On account of the high amortisation of these goodwill values in previous years, their book values today lie considerably below the original acquisition costs. No reductions in value were necessary by reason of the impairment tests carried out.
Additionally the values of intangible assets from acquisitions (e.g. client base) need to be amortised under IFRS rules over the time period of their economic use and irrespective of the actual enterprise value, which may continue to be well above the current book value. Such amortisation applies for the Triton acquisition, of which a total amount of € 3.6m needs to be amortised over a time period of five years. The profit and loss statement effect for a four months period in 2007 was € 0.2m.
International Financial Reporting Standards (IRFS)
The Consolidated Financial Statements of SQS and its subsidiary companies ("SQS Group" or "SQS Konzern") are prepared in conformity with all IFRS Standards (International Financial Reporting Standards, formerly IAS = International Accounting Standards) and the Interpretations of the IASB (International Accounting Standards Board) adopted by the EU Commission and translated into the German language which are to be applied for those financial statements whose reporting period starts on or after 1 January 2007. The new and revised Standards and Interpretations of the IASB were not applied in the business year 2007 prior to the implementation date stipulated.
The Financial Information has been prepared on the historical cost basis. The Financial Information is presented in Euros and amounts are rounded to the nearest thousand (T€) except when otherwise indicated.
Rene Gawron
Chief Financial Officer
6th March 2008
SQS Software Quality Systems AG, Cologne
Consolidated Profit and Loss Account
As at 31 December 2007 (IFRS)
|
|
|
Year ended 31 December 2007 |
|
Year ended 31 December 2006 |
|
T€ |
|
(Notes) |
|
(unaudited) |
|
(audited) |
|
|
|
|
|
|
|
Revenue |
|
|
|
121,059 |
|
78,933 |
Cost of sales |
|
|
|
79,307 |
|
51,997 |
|
|
|
|
|
|
|
Gross profit |
|
|
|
41,752 |
|
26,936 |
|
|
|
|
|
|
|
General and administrative expenses |
|
|
|
19,245 |
|
12,185 |
Sales and marketing expenses |
|
|
|
8,621 |
|
5,666 |
Research and development expenses |
|
|
|
3,614 |
|
3,351 |
|
|
|
|
|
|
|
Profit before tax and financing result (EBIT) |
|
|
|
10,272 |
|
5,734 |
|
|
|
|
|
|
|
Finance income |
|
|
|
556 |
|
103 |
Finance costs |
|
|
|
1,163 |
|
768 |
Net interest |
|
|
|
-607 |
|
-665 |
|
|
|
|
|
|
|
Profit before taxes (PBT) |
|
|
|
9,665 |
|
5,069 |
|
|
|
|
|
|
|
Income tax |
|
(2) |
|
2,932 |
|
383 |
|
|
|
|
|
|
|
Profit for the year |
|
|
|
6,733 |
|
4,686 |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
Equity shareholders |
|
|
|
6,733 |
|
4,686 |
Minority interests |
|
|
|
0 |
|
0 |
|
|
|
|
|
|
|
Consolidated profit for the year |
|
|
|
6,733 |
|
4,686 |
|
|
|
|
|
|
|
Earnings per share, undiluted (€) |
|
(3) |
|
0.35 |
|
0.28 |
|
|
|
|
|
|
|
Earnings per share, diluted (€) |
|
(3) |
|
0.34 |
|
0.28 |
|
|
|
|
|
|
|
Adjusted earnings per share (€), for comparison only |
|
(3) |
|
0.41 |
|
0.28 |
|
|
|
|
|
|
|
SQS Software Quality Systems AG, Cologne |
|
|
|
|
|
|
|
|
|
|
31 December 2007 |
|
31 December 2006 |
T€ |
|
(Notes) |
|
(unaudited) |
|
(audited) |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
7,220 |
|
2,565 |
Marketable securities |
|
|
|
0 |
|
0 |
Trade receivables |
|
|
|
27,173 |
|
22,231 |
Other receivables |
|
|
|
1,000 |
|
1,058 |
pre-paid expenses and deferred charges |
|
|
|
|
|
|
Work in progress |
|
|
|
139 |
|
314 |
Income tax receivables |
|
|
|
157 |
|
264 |
|
|
|
|
35,689 |
|
26,432 |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Intangible assets |
|
(4) |
|
5,999 |
|
3,356 |
Goodwill |
|
(4) |
|
45,977 |
|
28,313 |
Property, plant and equipment |
|
|
|
2,243 |
|
1,057 |
Income tax receivable |
|
(2) |
|
1,512 |
|
1,426 |
Deferred taxes |
|
(2) |
|
867 |
|
1,881 |
|
|
|
|
56,598 |
|
36,033 |
|
|
|
|
|
|
|
Total Assets |
|
|
|
92,287 |
|
62,465 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Bank loans and overdrafts |
|
|
|
191 |
|
5,330 |
Trade creditors |
|
|
|
3,547 |
|
3,159 |
Other provisions |
|
|
|
102 |
|
76 |
Tax accruals |
|
|
|
1,668 |
|
667 |
Tax liabilities |
|
|
|
3,745 |
|
2,745 |
Other current liabilities |
|
|
|
24,677 |
|
15,553 |
|
|
|
|
33,930 |
|
27,530 |
|
|
|
|
|
|
|
Non-Current liabilities |
|
|
|
|
|
|
Bank loans |
|
|
|
105 |
|
465 |
Other provisions |
|
|
|
91 |
|
112 |
Pension provisions |
|
|
|
147 |
|
294 |
Deferred taxes |
|
(2) |
|
1,652 |
|
1,001 |
Other non-current liabilities |
|
|
|
7,343 |
|
6,564 |
|
|
|
|
9,339 |
|
8,436 |
|
|
|
|
|
|
|
Total Liabilities |
|
|
|
43,269 |
|
35,966 |
|
|
|
|
|
|
|
Shareholders' equity |
|
(5) |
|
|
|
|
Share capital |
|
|
|
21,546 |
|
17,191 |
Share premium |
|
|
|
25,028 |
|
13,322 |
Statutory reserves |
|
|
|
53 |
|
53 |
Other reserves |
|
|
|
-1,381 |
|
-1,105 |
Retained earnings |
|
|
|
3,772 |
|
-2,962 |
Equity attributable to equity shareholders |
|
|
49,018 |
|
26,499 |
|
|
|
|
|
|
|
|
Minority interests |
|
(14) |
|
0 |
|
0 |
Total Equity |
|
|
|
49,018 |
|
26,499 |
|
|
|
|
|
|
|
Equity and Liabilities |
|
|
|
92,287 |
|
62,465 |
SQS Software Quality Systems AG, Cologne
Consolidated Cash Flow Statement
As at 21 December 2007 (IFRS)
|
|
|
Year ended 31 December 2007 |
|
Year ended 31 December 2006 |
|
T€ |
|
|
|
(unaudited) |
|
(audited) |
|
|
|
|
|
|
|
Net cash flow from operating activities |
|
|
|
|
|
|
Profit before taxes |
|
|
|
9,665 |
|
5,069 |
Add back for |
|
|
|
|
|
|
Depreciation and amortisation |
|
|
|
3,854 |
|
2,772 |
Profit (Loss) on the sale of fixed assets |
|
|
|
52 |
|
-36 |
Other non-cash income not affecting payments |
|
|
|
-553 |
|
-1,356 |
Net interest income |
|
|
|
855 |
|
705 |
Operating profit before changes in the net current assets |
|
|
|
13,873 |
|
7,154 |
Increase in trade receivables and |
|
|
|
|
|
|
receivables from partly completed contracts not yet billed |
|
|
|
-3,991 |
|
-5,208 |
Increase (Decrease) in work in progress, other assets |
|
|
|
|
|
|
and pre-paid expenses and deferred charges |
|
|
|
518 |
|
1,225 |
Increase in trade creditors |
|
|
|
1 |
|
325 |
Increase in remaining accruals |
|
|
|
3,780 |
|
556 |
Increase (Decrease) in pension accruals |
|
|
|
-147 |
|
-11 |
Decrease (Increase) in other liabilities and |
|
|
|
|
|
|
deferred income |
|
|
|
-494 |
|
-1,043 |
Cash flow from operating activities |
|
|
|
13,540 |
|
2,998 |
Cash effect of foreign exchange rate movements |
|
|
|
-249 |
|
-89 |
Interest payments |
|
|
|
-497 |
|
-492 |
Tax payments |
|
|
|
-1,440 |
|
-841 |
Net cash flow from current business activities |
|
|
|
11,354 |
|
1,576 |
|
|
|
|
|
|
|
Cash flow from investment activities |
|
|
|
|
|
|
Purchase of intangible assets |
|
|
|
-2,090 |
|
-2,874 |
Purchase of tangible assets |
|
|
|
-840 |
|
-325 |
Proceeds from the disposal of subsidiaries |
|
|
|
0 |
|
221 |
Cashflows arising from business combinations |
|
|
|
-3,088 |
|
-4,463 |
Transfer into an notary trust account to purchase of shares |
|
|
|
0 |
|
0 |
Proceeds from the sale of tangible assets |
|
|
|
0 |
|
60 |
Sale/(Purchase) of marketable securities available for sale |
|
|
|
0 |
|
5,610 |
Foreign currency result |
|
|
|
249 |
|
39 |
Interest received |
|
|
|
241 |
|
63 |
Net cash flow from investment activities |
|
|
|
-5,528 |
|
-1,669 |
|
|
|
|
|
|
|
Cash flow from financing activities |
|
|
|
|
|
|
Proceeds from the issue of share capital |
|
|
|
4,817 |
|
0 |
Costs for IPO |
|
|
|
-100 |
|
0 |
Dividends paid to minority interest |
|
|
|
0 |
|
|
Proceeds from borrowings |
|
|
|
0 |
|
0 |
Repayment of convertible bonds |
|
|
|
0 |
|
0 |
Repayment of finance loans |
|
|
|
-5,497 |
|
-2,506 |
Increase of finance loans |
|
|
|
0 |
|
4,325 |
Redemption / termination of leasing contracts |
|
|
|