Release no. 13/2015
Interim Management Statement for Q1 2015
In accordance with the regulations for listed companies’ submission of interim statements, Columbus A/S hereby submits the interim management statement for the period 01.01.2015-31.03.2015 (3 months).
Revenue in Q1 amounted to DKK 240m (2014: 207.5m), corresponding to an increase of 16% compared to the same period last year. EBITDA1 amounted to DKK 14m (2014: 12.8m), corresponding to an increase of 9% compared to the same period last year.
The revenue growth is primarily affected by the acquisition of the US consultancy InterDyn BMI, which Columbus acquired 31 January this year, and secondarily by sale of own software.
Strong growth in Columbus’ software business
Columbus’ software business started well in 2015 with total revenue growth of 64%. The increase is primarily in sale of Columbus licenses, but sale of Columbus software subscriptions also increased considerably.
Growth in industry solutions
In Q1 the increase in industry solutions to the food, retail and manufacturing industries continued and now constitutes 78% of the total revenue. There has been a solid increase in sale of solutions to the manufacturing and retail industries. This is in line with expectations and a satisfactory result.
Considerable volume increase in Columbus’ global delivery center
Columbus’ global delivery center shows strong growth in Q1. The delivery center has increased delivery volume by 41% compared to Q1 2014 and delivers 1,465 global delivery days for customer support and implementations.
Volume increase is an important parameter in order to improve productivity and flexibility in the delivery organization and to reduce the total delivery costs.
Revenue growth in the consultancy business
The sale of consultancy services increased by 6% in Q1 compared to Q1 2014. However, the productivity in the consultancy business has declined by 2 percentage points, which is primarily due to operational challenges in Columbus’ Norwegian subsidiary.
Columbus Norway
Columbus is still executing recovery plans in the Norwegian company due to operational challenges. Columbus has hired a new Country Manager, who will, together with a strengthened management team in Norway, handle the recovery. Columbus expects gradual improvement during 2015 and 2016.
Continuous execution of Columbus15
Columbus is now executing the fourth and final year of the strategy Columbus15, and the Company continues the strong focus on selling Columbus Software and consultancy services to companies with the food, manufacturing and retail industries.
Development in revenue
The revenue increased due to the acquisition in the US, where both the consultancy business and the external software contributed positively to the development in Q1 2015.
DKK ´000 | Q1 2015 | Q1 2014 | 2014 |
Columbus licenses | 8,138 | 3,708 | 28,782 |
Columbus subscriptions | 9,061 | 6,805 | 33,059 |
External licenses | 14,910 | 12,491 | 73,891 |
External subscriptions | 36,224 | 22,521 | 124,350 |
Consultancy | 166,745 | 157,295 | 596,942 |
Other | 4,774 | 4,645 | 21,267 |
Net revenues | 239,852 | 207,465 | 878,291 |
EBITDA before share-based compensation | 14,000 | 12,825 | 81,591 |
Share-based compensation | -315 | -644 | -2,887 |
EBITDA | 13,685 | 12,181 | 78,704 |
Acquisition of the US consultancy business InterDyn BMI
On 31 January 2015 Columbus acquired the US consultancy business InterDyn BMI. The acquisition is in accordance with Columbus’ strategy to expand within the Company’s key markets.
The acquisition added more than 130 employees and strengthened the geographical reach across the US. The integration of InterDyn BMI is progressing according to the plan.
Expectations to revenue and EBITDA are being maintained
Columbus expects revenue in the level of DKK 1bn and EBITDA* in the level of DKK 90m in 2015, corresponding to increases of 14% and 10%, respectively, compared to the obtained results in 2014.
Latest developments
No events or transactions with a material effect on the company’s financial position have occurred since the balance sheet date.
Ib Kunøe Thomas Honoré
Chairman CEO & President
Columbus A/S Columbus A/S
For further information, please contact:
CEO Thomas Honoré, T: +45 70 20 50 00.
Translation: In the event of any inconsistency between this document and the Danish language version, the Danish language version shall be the governing version.
Income statement
DKK ´000 | Q1 2015 | Q1 2014 | 2014 |
Net revenue | 239,852 | 207,465 | 878,291 |
External project costs | -50,684 | -41,000 | -204,491 |
Gross Profit | 189,168 | 166,465 | 673,800 |
Staff expenses | -143,788 | -124,754 | -476,614 |
Other external costs | -33,404 | -28,884 | -117,004 |
Other operating income | 2,082 | 0 | 1,440 |
Other operating costs | -57 | -2 | -31 |
EBITDA before share-based payment | 14,000 | 12,825 | 81,591 |
Share-based payment | -315 | -644 | -2,887 |
EBITDA | 13,685 | 12,181 | 78,704 |
Depreciation | -6,000 | -5,744 | -25,811 |
Earnings before write down of goodwill (EBITA) | 7,685 | 6,437 | 52,893 |
Write down of goodwill | 0 | 0 | 0 |
Operating profit (EBIT) | 7,685 | 6,437 | 52,893 |
Results in associated companies | 0 | 0 | 0 |
Financial income | 13,543 | 722 | 6,371 |
Financial expense | -75 | -337 | -564 |
Pre-tax earnings | 21,153 | 6,822 | 58,700 |
Financial income
Financial income primarily concerns exchange rate adjustments in relation to group receivables in Columbus US.
Balance sheet
DKK ´000 | Q1 2015 | Q1 2014 | 2014 |
ASSETS | |||
Goodwill | 279,145 | 183,821 | 198,622 |
Other intangible assets | 20,390 | 3,023 | 2,568 |
Development projects finalized | 41,873 | 39,236 | 46,970 |
Development projects in progress | 6,620 | 8,387 | 1,233 |
Intangible assets | 348,029 | 234,467 | 249,393 |
Leasehold improvements | 135 | 188 | 148 |
Plant and operating equipment | 10,880 | 8,951 | 8,500 |
Tangible assets | 11,015 | 9,139 | 8,648 |
Deferred tax assets | 19,756 | 19,429 | 19,400 |
Total long-term assets | 378,800 | 263,035 | 277,441 |
Inventories | 317 | 219 | 270 |
Trade receivables | 155,825 | 136,231 | 144,091 |
Contract work in progress | 13,092 | 10,766 | 8,491 |
Corporation tax | 4,475 | 40 | 4,106 |
Other receivables | 11,266 | 4,624 | 8,024 |
Prepayments | 8,023 | 13,598 | 8,777 |
Receivables | 192,680 | 165,259 | 173,488 |
Cash | 39,566 | 60,168 | 99,018 |
Total short-term assets | 232,563 | 225,646 | 272,777 |
TOTAL ASSETS | 611,363 | 488,681 | 550,218 |
Balance sheet
DKK ´000 | Q1 2015 | Q1 2014 | 2014 |
LIABILITIES | |||
Share capital | 137,831 | 132,793 | 137,831 |
Reserves on foreign currency translation | -9,553 | -10,018 | -12,693 |
Retained profit | 206,364 | 150,485 | 186,980 |
Proposed dividends | 13,783 | 13,279 | 13,783 |
Group shareholders equity | 348,425 | 286,539 | 325,901 |
Minority interests | 4,665 | 4,278 | 4,233 |
Equity | 353,090 | 290,817 | 330,134 |
Deferred tax | 309 | 330 | 281 |
Provisions | 17,461 | 6,461 | 5,172 |
Debt to credit institutions | 0 | 5 | 0 |
Other debt | 0 | 1,270 | 1,270 |
Long-term debt | 17,770 | 8,066 | 6,723 |
Credit institutions | 858 | 6,340 | 6 |
Prepayments received from customers | 28,068 | 22,393 | 19,542 |
Trade accounts payable | 47,715 | 28,064 | 58,620 |
Corporation tax | 5,977 | 4,855 | 7,430 |
Other debt | 132,017 | 106,644 | 102,399 |
Accruals | 25,868 | 21,502 | 25,364 |
Short-term debt | 240,503 | 189,798 | 213,361 |
Total debt | 258,273 | 197,864 | 220,084 |
TOTAL LIABILITIES | 611,363 | 488,681 | 550,218 |
Segment data
In order to support decisions about allocation of resources and assessment of performance of the segments, the Group’s internal reporting to the Board of Directors of the Parent Company is based on the following grouping of operating segments: | ||||||
Strategic business areas | Description | Geographical segment | ||||
ISV (Independent Software Vendor) | Development and sale of industry specific software within Columbus' three focus industries: Retail, food and manufacturing | No specific area | ||||
Consultancy | Sale and implementation of standard business systems. |
Western Europe Eastern Europe North America |
||||
Information about the Group’s segment is stated below. | ||||||
Consultancy | ||||||
DKK ´000 | ISV |
Western Europe |
Eastern Europe |
North America |
Parent company/ Eliminations |
Total |
Q1 2015 | ||||||
Columbus licenses | 5,436 | 4,477 | 770 | 743 | -3,288 | 8,138 |
Columbus subscriptions | 7,725 | 2,765 | 383 | 735 | -2,547 | 9,061 |
External licenses | 0 | 5,944 | 1,129 | 8,282 | -445 | 14,910 |
External subscriptions | -93 | 15,343 | 4,376 | 16,598 | 0 | 36,224 |
Consultancy | 5,107 | 97,101 | 23,201 | 46,080 | -4,744 | 166,745 |
Other | 261 | 2,199 | 235 | 2,038 | 41 | 4,774 |
Total Net Revenue | 18,436 | 127,829 | 30,094 | 74,476 | -10,983 | 239,852 |
Gross earnings | 15,883 | 97,780 | 23,933 | 48,032 | 3,540 | 189,168 |
EBITDA | 9,649 | 8,309 | 2,099 | 969 | -7,341 | 13,685 |
Consultancy | ||||||
DKK ´000 | ISV |
Western Europe |
Eastern Europe |
North America |
Parent company/ Eliminations |
Total |
Q1 2014 | ||||||
Columbus licenses | 2,759 | 969 | 529 | 466 | -1,015 | 3,708 |
Columbus subscriptions | 5,975 | 1,662 | 210 | 829 | -1,871 | 6,805 |
External licenses | 0 | 7,110 | 2,548 | 3,023 | -190 | 12,491 |
External subscriptions | 115 | 9,316 | 4,312 | 8,777 | 1 | 22,521 |
Consultancy | 3,010 | 108,801 | 25,995 | 25,699 | -6,210 | 157,295 |
Other | 157 | 3,104 | 484 | 839 | 61 | 4,645 |
Total Net Revenue | 12,016 | 130,962 | 34,078 | 39,633 | -9,224 | 207,465 |
Gross earnings | 10,823 | 102,719 | 26,679 | 27,579 | -1,335 | 166,465 |
EBITDA | 4,084 | 12,943 | 1,991 | 1,137 | -7,974 | 12,181 |
*EBITDA before share-based compensation