SYSOPEN DIGIA'S PROFITABILITY ROSE TO A GOOD LEVEL
SysOpen Digia Plc STOCK EXCHANGE RELEASE 31 October 2005, 9:30 a.m.
SYSOPEN DIGIA'S PROFITABILITY ROSE TO A GOOD LEVEL
SysOpen Digia Plc's Interim Report for 1 January-30 September 2005
- Consolidated turnover for Q1-Q3/2005 EUR 42.6 million (Q1-Q3/2004: EUR 18.4
million) and Q3/2005 EUR 15.4 million (Q3/2004: EUR 5.4 million)
- Proforma turnover for the report period improved by 10.3 per cent, year on
year.
- Operating profit (EBIT) for Q1-Q3/2005 before second-quarter one-off
restructuring expenses EUR 4.2 million (Q1-Q3/2004: EUR 0.8 million) and for
Q3/2005 EUR 1.7 million (Q3/2004: EUR 0.04 million)
- Profitability (EBIT margin) for Q1-Q3/2005 before second-quarter restructuring
expenses 10.0 per cent (Q1-Q3/2004: 4.5 per cent) and for Q3/2005 11.3 per cent
(Q3/2004: 0.7 per cent)
- Operating profit (EBIT) for Q1-Q3/2005 EUR 2.4 million (Q1-Q3/2004: EUR 0.8
million) and for Q3/2005 EUR 1.7 million (Q3/2004: EUR 0.04 million)
- Earnings per share after restructuring expenses in Q1-Q3/2005 EUR 0.07 (Q1-
Q3/2004: EUR 0.10) and in Q3/2005 EUR 0.05 (Q3/2004: EUR 0.02)
- Forecast for consolidated turnover for 2005 has been revised up to EUR 59-61
million, and profitabilty is expected to remain at a healthy level during the
rest of the year. Operating margin (EBIT %) for 2005, excluding second-quarter
non-recurring restructuring expenses, is expected to stand at around 9-11 per
cent. Business is expected to show a favourable development in 2006.
SysOpen Digia Plc's CEO, Jari Mielonen, states the following:
'SysOpen Digia's third-quarter performance slightly exceeded the company's
targets. After our integration stage was over, Group businesses turned out to be
in a good condition as planned, providing the Group with opportunities to focus
on growth creation based on our corporate strategy. We remained determined to
develop our customer relationships and product/service offerings, optimise our
expense structure and increase our operating efficiency, which was reflected in
higher profitability. Our fourth-quarter goals include launching and deploying
our following year's corporate strategy, developing our businesses further and
helping them to organise and adopt shared operating policies, concentrating on
enhancing job satisfaction and employee skills, and fortifying our management
systems.'
BRIEFING
SysOpen Digia will hold a briefing on its Q1-Q3/2005 performance for analysts and
the press at the Scandic hotel, Simonkentän Paviljon-terassikabinetti, Simonikatu
9, Helsinki, on Monday, 31 October 2005, starting at 11.00 a.m. All are welcome.
SysOpen Digia Plc's Interim Report for 1 January-30 September 2005
Figures in this interim report are compared with SysOpen Plc's figures for 2004.
The accounts of SysOpen Digia Smartphone Ltd (formerly Digia Inc.) have been
consolidated since March 2005. The accounts of SysOpen Digia Integration Ltd
(formerly Yomi Software Ltd) and SysOpen Digia Service Ltd (formerly Yomi Service
Ltd) have been consolidated since April 2005.
GROUP KEY FIGURES AND RATIOS
Q3/2005 Q3/2004 Change Q1-Q3/20 Q1-Q3/2 Change 2004
% 05 004 %
Turnover (EUR 1,000) 15,357 5,415 184% 42,598 18,427 131% 26,174
Operating profit 1,731 40 4,226% 4,246 830 411% 2,358
before restructuring
expenses (EUR 1,000)
- % of turnover 11% 1% 10% 5% 9%
Operating profit 1,731 40 4,226% 2,368 830 185% 2,358
(EUR 1,000)
- % of turnover 11% 1% 6% 5% 9%
Net profit (EUR 836 260 222% 1,132 1,007 12% 2,340
1,000)
- % of turnover 5% 5% 3% 5% 9%
Return on equity, % 7% 10% 4% 13% 21%
Return on 9% 12% 5% 13% 24%
investment, %
Interest-bearing 41,355 141 41,355 141 134
liabilities (EUR
1,000)
Cash and cash 24,419 4,718 418% 24,419 4,718 418% 5,909
equivalents (EUR
1,000)
Net gearing, % 33% -45% 33% -45% -51 %
Equity ratio, % 46% 71% 46% 71% 70 %
Earnings per share, 0.05 0.03 67% 0.07 0.11 -36% 0.25
undiluted, EUR
Earnings per share, 0.05 0.02 150% 0.07 0.10 -30% 0.25
diluted, EUR
Equity per share, 2.76 1.10 151% 2.76 1.10 151% 1.23
EUR
ADOPTION OF IFRS
Since the beginning of 2005, SysOpen Digia Plc has applied the International
Financial Reporting Standards (IFRS), replacing the Finnish Accounting Standards
(FAS). The second and third Interim Reports for 2005 were prepared in accordance
with the recognition and measurement principles under IFRS. SysOpen Digia Plc's
stock exchange release of 31 March 2005 dealt with the reconciliation of
shareholders' equity and results on the IFRS adoption date, key IFRS comparatives
for 2004 and a report on accounting principles.
CEO'S REVIEW
SysOpen Digia's third-quarter performance slightly exceeded the company's
targets. After our integration stage was over, Group businesses turned out to be
in a good condition as planned, providing the Group with opportunities to focus
on growth creation based on the soon-to-be-confirmed corporate strategy. We
remained determined to develop our customer relationships, optimise our expense
structure and increase our operating efficiency, which was reflected in higher
profitability. Our fourth-quarter goals include launching and deploying our
following year's corporate strategy, developing our businesses further and
helping them to organise and adopt shared operating policies, concentrating on
enhancing job satisfaction and employee skills, and fortifying our management
systems.
Q3/2005 KEY EVENTS BY BUSINESS AREA
Smartphone business
The Smartphone consists of software engineering, training and consulting services
related to mobile phones, combined with a supporting product offering. Contract
engineering services account for the largest share of turnover. The business
division's technology focus is on Symbian-based software development, with Java-
and Linux-based solutions and offerings supporting this work. The division also
develops offerings related to user interface design on a long-term basis.
Currently, SysOpen Digia is reckoned to rank among the market leaders in contract
engineering services for the world's largest mobile handset manufacturers through
its about 470 smartphone professionals.
During the report period, the Smartphone division continued to deepen
relationships with its key customers and strengthened business-supporting
partnerships by announcing its Symbian Signed partnership with Symbian Limited
and that with Philips to bring integrated high-performance multimedia solutions
into Symbian OS smartphones.
Due to its strong and long-term investments in the Nokia Series 60 Platform and
related services, the Smartphone business has established a strong and trusted
position among its global smartphone customers.
Integration business
The Integration business division's services cover the entire lifecycle of
business information system solutions, its turnover mainly coming from software
development, integration and architecture services supported by methodology,
application outsourcing, support and maintenance services as well as management
ICT consulting. Our key customers represent the following segments: the financing
and employment-pension sectors, the public sector, associations and other
organisations, national security, trade, transport and logistics, services,
telecoms and service providers as well as the manufacturing industry.
SysOpen Digia develops strong competence centres based on its key technologies.
The company is currently reckoned to rank among the market-leading providers of
J2EE-based and ICT system solutions in Finland.
During the report period, the Integration division continued to develop its
operating models in its key customer segments and launched an integration centre
service (ICC, Integration Competence Centre). The division intensified its
segment marketing efforts by participating in major customer events in the
industry, offering special SysOpen Digia brunches and conducting a more active
communication policy.
Long-term investments in technology-based pioneership are behind the company's
role as a trusted key partner in all of its major customer relationships.
MARKETS
Demand for ICT technology solutions seems to be continuing its variable trend by
customer segment. Customer investments are tending to focus on key solutions
providing immediate business benefits, and sales cycles are relatively long.
Industry competition will remain fierce and price competition will be sustained
by customers' cost pressures.
The European Information Technology Observatory (EITO) (March 2005) estimates
that in 2005 the European ICT market will grow faster than those of the USA and
Japan. The EITO states that new prospects and opportunities for the integration
of IT, telecommunications, consumer electronics and the new media explain growth
in the global ICT markets. The EITO adds that this ICT market growth in all key
segments will be driven by greater demand, stemming from European companies' view
of IT's role shifting away from the generation of cost savings towards providing
a competitive edge.
The EITO expects the Western European ICT market to continue its modest growth
from 2004, when ICT expenditure rose by 2.7 per cent over the previous year.
According to Market Vision's projections (July 2005), the Finnish ICT market will
expand by 4.0 in 2005, with the software and ICT services markets showing the
fastest growth (software 4.6 per cent and ICT services 4.1 per cent). The EITO
forecasts that the Western European ICT market's turnover will total around EUR
616 billion in 2005 and improve by 3.7 per cent in 2006, to EUR 639 billion.
According to Market-Visio, the Finnish ICT market's turnover is expected to total
EUR 5.1 billion in 2005 and grow by 3.2 per cent in 2006, to EUR 5.2 billion.
Global mobile-handset sales volumes are projected to total 775 million this year,
due to strong April-June sales (by Strategy Analytics, a research firm).
According to Canalys, a market analysis firm, Symbian-based smartphones have
increased their global market share to 62.8 per cent. In Q2/2005, global
smartphone deliveries soared by 105 per cent, year on year.
Mobile handset volumes will increase rapidly in the emerging economies, but this
trend will depress average mobile-handset selling prices. The contract
engineering services market for mobile phones is expected to continue to
encounter downward price pressure and requirements for streamlined operations,
caused by ever-intensifying competition among mobile handset manufacturers and
their profitability targets.
PROSPECTS
Leading smartphone manufacturers are expected to face ever-intensifying
competition for their market share and partial market polarisation is anticipated
to continue. It is estimated that the largest manufacturers will focus on
implementing their selected product platform strategy and gradually diversifying
into basic mobile phones in the medium term. Global operators are slowly showing
increasing interest in differentiating smartphones to meet service and brand
requirements, which may result in new technology alliances. Faced by toughening
competition, semi-conductor manufacturers are seeking joint ventures and
alliances with the aim of catering for the needs of mobile handset manufacturers
on a more comprehensive basis and strengthening their own position.
In the long term, the Smartphone business focus is expected to shift towards a
complete service provider within software integration, providing SysOpen Digia
with the opportunity to expand its operations, especially in sophisticated
contract engineering projects and product-platform-related orders, together with
selected key partners in both Europe and Asia. In addition, SysOpen Digia will
place an emphasis on selected operators and semi-conductor manufacturers as well
as differentiating technology solutions.
New prospects and opportunities for the integration of IT, telecommunications,
consumer electronics and the new media, as part of solutions generating business
benefits, explain growth in the global ICT markets. Market growth in key segments
will be driven by greater demand, stemming from companies' view of IT's role
shifting away from the generation of cost savings towards providing a competitive
edge. Moreover, customers increasingly tend to seek a trusted partner, who looks
after their interest in sophisticated integration projects or, as an application
outsourcer, adjusts their business processes and costs.
SysOpen Digia aims to provide value-added solutions in which the company plays a
more comprehensive role as a developer and co-ordinator of the architecture and
integration solution. It will develop its integration business for both existing
and new customers. Competence centres based on key technologies will enhance
SysOpen Digia's ability to cater for the needs of its customers and create new
business concepts with them.
Forecast for consolidated turnover for 2005 has been revised up to EUR 59-61
million, and profitabilty is expected to remain at a healthy level during the
rest of the year. Operating margin (EBIT %) for 2005, excluding second-quarter
non-recurring restructuring expenses, is expected to stand at around 9-11 per
cent. Business is expected to show a favourable development in 2006.
TURNOVER
Year on year, SysOpen Digia's consolidated turnover for the report period
improved by 131.2 per cent, to EUR 42.6 million (Q1-Q3/2004: EUR 18.4 million).
Third-quarter turnover rose to EUR 15.4 million, up 183.6 per cent on a year
earlier (Q3/2004: EUR 5.4 million). International operations accounted for 2.7
per cent of consolidated turnover (Q1-Q3/2004: 1 per cent) during the report
period and 8 per cent in the third quarter (Q3/2004: 1 per cent).
SysOpen Digia's proforma consolidated turnover for report period amounted to EUR
50.7 million, up by 10.3 per cent year on year.
PROFIT AND PROFITABILITY
SysOpen Digia's Q1-Q3 operating profit (EBIT) before one-off restructuring
expenses of EUR 1.9 million totalled EUR 4.2 million, up 411.6 per cent on a year
earlier (Q1-Q3/2004: EUR 0.8 million). Third-quarter EBIT totalled EUR 1.7
million, showing a marked year-on-year improvement (4,226.3 per cent) (Q3/2004:
EUR 0.04 million).
Operating profit for the report period (EBIT) after second-quarter restructuring
expenses came to EUR 2.4 million (Q1-Q3/2004: EUR 0.8 million) while that
reported for the third quarter reached EUR 1.7 million (Q3/2004: EUR 0.04
million).
Reported pre-tax profit totalled EUR 1.7 million (Q1-Q3/2004: EUR 1.1 million)
while that reported for the third quarter amounted to EUR 1.5 million (Q3/2004:
EUR 0.3 million).
Income taxes accounted for 31.5 per cent of pre-tax profit for the report period
and 43.5 per cent for the third quarter. Non-tax deductible interest expenses
related to Eomer Holding Oy had a major effect on the income tax charge. The
Group has initiated a merger process aimed at merging Eomer Holding Oy with
SysOpen Digia Smartphone Ltd by the end of 2005.
Net profit for the period totalled EUR 1.1 million (Q1-Q3/2004: EUR 1.0 million)
while that reported for the third quarter amounted to EUR 0.8 million (Q3/2004:
EUR 0.3 million).
Earnings per share were EUR 0.07 (Q1-Q3/2004: EUR 0.10) during the report period
and EUR 0.05 per cent in the third quarter (Q3/2004: EUR 0.02).
During the report period, the Integration business improved its year-on-year
profitability (EBIT %) before restructuring expenses, to 8.9 per cent (Q1-
Q3/2004: 3.5 per cent), whereas the Smartphone business recorded lower year-on-
year profitability (EBIT margin), or 11.1 per cent (Q1-Q3/2004: 12.3 per cent).
The Smartphone division's profitability was affected by the allocated goodwill
resulting from SysOpen Plc's and Digia Inc.'s merger, its amortised amount for
the period coming to EUR 0.8 million.
However, higher-than-expected third-quarter turnover and sound cost control
contributed favourably to the report period's profitability.
Group net financial expenses for the period were EUR 0.7 million (financial
income for the same period came to EUR 0.2 million).
The one-off restructuring expenses related to the merger of SysOpen Plc, Digia
Inc. and Yomi Software Ltd. affected the proforma income statement. The year-on-
year fall in proforma results was due to writedowns of capitalised expenses (EUR
2.6 million), recognised expense provisions (EUR 0.9 million) and one-off
restructuring expenses (EUR 1.9 million) incurred during the second quarter
related to the acquired business of Yomi Software. For these reasons, SysOpen
Digia Group reported a proforma loss of EUR 2.5 (Q1-Q3/2004: EUR 2.6 million).
FINANCIAL POSITION AND CAPITAL EXPENDITURE
On 30 September 2005, SysOpen Digia's consolidated balance sheet total amounted
to EUR 113.0 million (Q1-Q3/2004: EUR 17.4 million) and equity ratio stood at 46
per cent (Q1-Q3/2004: 71 per cent). The ratio of net liabilities to shareholders'
equity, or net gearing, was 33 per cent (Q1-Q3/2004: -45 per cent). Liquid assets
totalled EUR 24.4 million (Q1-Q2/2004: EUR 4.7 million). The Group has EUR 41.4
million in interest-bearing liabilities, which it will amortise by the end of
2005, using liquid assets.
The Group showed a positive EUR 2.0 million cash flow from business operations in
the report period and a negative cash flow of EUR 1.2 million in the third
quarter.
Third-quarter gross capital expenditure totalled EUR 0.3 million (Q3/2004: EUR
0.3 million). At the period-end, unallocated Group goodwill totalled EUR 51.0
million and the amount allocated to customers EUR 11.1 million. The company uses
annual impairment tests to review the unallocated share of goodwill. As a result
of the IFRS adoption, the company no longer amortises goodwill on a regular
basis. There is no indication of impaired assets.
Reported return on investment (ROI) was 5 per cent (Q1-Q3/2004: 13 per cent)
while return on equity (ROE) reached 4 per cent (Q1-Q3/2004: 13 per cent).
Second-quarter one-off restructuring expenses of EUR 1.9 million reduced both ROI
and ROE during the report period.
RISK ASSESSMENT
The key risks monitored by SysOpen Digia within its risk management are
associated with customers, employees, projects, data security and integration.
The company aims to manage customer risks by actively developing and monitoring
its customer base. During the report period, the customer base saw favourable
developments as a result of corporate transactions, and the company has begun to
manage risks by customer segment. Employee risk management involves active
performance-review and goal-setting processes with key employees and, in this
respect, the Group has already set its post-integration-phase goals for 2005. In
addition, the divisions and units have enhanced internal communications with the
aim of creating interactive communication channels in support of job satisfaction
and employee commitment. November will see the implementation of an opinion and
job satisfaction survey. Project audits initiated in the report period helped to
identify risky projects and ensure their successful implementation. In addition,
the company will streamline reporting practices applying to project deliveries.
Data security risk management relies on data security audits and the continuous
development of operating models, practices and processes enhancing data security.
Business integration risks are managed at Management Group level. With respect to
the merger of SysOpen and Digia, the company has begun to integrate corporate
cultures, which requires long-term, determined efforts at all corporate levels.
HUMAN RESOURCES, MANAGEMENT AND ADMINISTRATION
SysOpen Digia invested in employee and middle-management competence development
and training as planned, involving in-house OpenCollege training, induction
training in smartphone integration and training modules included in the Business
Academy programme for Smartphone business's key employees. The rest of the year
will also involve Group-level development of aspects related to job satisfaction
and the building of corporate culture.
At the end of the period, the number of employees totalled 811, up by 523, or
181.6 per cent, from the level in late 2004 (2004: 288). The reported number of
employees averaged 709, up 423, or 147.9 per cent (Q1-Q3/2004: 282).
Reported employee turnover came to 6.4 per cent (Q1-Q3/2004: 10.4 per cent).
Employees by function, at the end of the report period:
Integration Division 37%
Smartphone Division 59%
Administration and management 4%
The period-end number of employees abroad accounted for 1 per cent of all staff.
SysOpen Plc's Board of Directors comprised the following members until the Annual
General Meeting (AGM) of 1 March 2005: Kari Karvinen (Chairman), Risto Linturi
(Vice Chairman), Pekka Eloholma, Reijo Koski-Lammi and Matti Mujunen. The AGM
elected, conditional on the merger of SysOpen Plc and Digia Inc., the following
members to SysOpen Digia Plc's Board of Directors: Pekka Sivonen (Chairman), Kari
Karvinen (Vice Chairman), Pekka Eloholma, Matti Mujunen, Mikko Terho and Pertti
Kyttälä. SysOpen Plc's former Board of Directors acted as a temporary Board
during 1-4 March 2005. Acting as SysOpen Digia Plc's CEO until 4 March 2005, Arto
Sahla was succeeded by Jari Mielonen as of 4 March 2005.
During the report period, KPMG Wideri Oy Ab, Authorised Public Accountants, acted
as the Group's auditor, with Ari Ahti, Authorised Public Accountant, acting as
the principal auditor.
MERGERS & ACQUISITIONS AND DIVESTMENTS
Based on a combination agreement signed on 11 February 2005, SysOpen Plc and
Digia Inc. agreed to merge which was confirmed on 4 March 2005, since when the
merged company has operated under the name of SysOpen Digia Plc.
On 21 March 2005, SysOpen Digia Plc signed an agreement with Elisa Corporation,
whereby SysOpen Digia would buy all Yomi Software Ltd shares
for EUR 12.1 million. SysOpen Digia paid the purchase price in cash using cash
and cash equivalents.
SysOpen Digia's FAS-based proforma figures for 2004 by company:
EUR million Sysopen Plc Digia Inc. Yomi Software Total
Ltd
Turnover 26.2 21.1 16.8 64.1
EBITA 2.3 3.1 0.4 5.8
SysOpen Digia's proforma net gearing stood at 38 per cent and
equity ratio at 44 per cent.
GROUP STRUCTURE AND ORGANISATION
At the end of the report period, SysOpen Digia Group consisted of SysOpen Digia
Plc, the parent company, and the following operating subsidiaries: SysOpen Digia
Integration Ltd (parent company holding: 100 per cent), SysOpen Digia Smartphone
Ltd (100 per cent), SysOpen Object Team Oy (94.2 per cent) and SysOpen Limited
(100 per cent). In addition, SysOpen Digia Integration Ltd has a wholly owned
operating subsidiary, SysOpen Digia Service Ltd.
Based on a reshaped corporate organisation, SysOpen Digia has a common Group
administration and, since 4 March 2005, has operated through two business
divisions - Integration Division and Smartphone Division. Yomi Software Ltd was
renamed SysOpen Digia Integration Ltd, to which the whole of SysOpen Digia's
Integration business was transferred. Digia Inc. was renamed SysOpen Digia
Smartphone Ltd, to which the whole of SysOpen Digia's Smartphone business was
transferred.
SysOpen Digia Plc decided to merge its wholly owned subsidiary, Eomer Holding Oy,
with SysOpen Digia Smartphone Ltd. The aim is to put this merger into effect as
soon as possible, estimated by 31 December 2005. Eomer Holding Oy does not carry
out any business.
On 14 October 2005, SysOpen Digia sold all Sysopen Limited shares to the
management of SysOpen Ltd. This divestment had no major effect on the Group's
business and profitability. Two employees worked for this divested business.
KEY EVENTS AFTER THE REPORT PERIOD
On 13 October 2005, SysOpen Digia announced that Arto Sahla, Sysopen Plc's former
Managing Director and SysOpen Digia Plc's Deputy CEO, would depart from the
company, in accordance with an agreement between Mr Sahla and the company. Jari
Mielonen, CEO, took charge of the Integration business.
On 14 October 2005, SysOpen Digia announced that it would apply for listing its
2003C stock options on the Helsinki Stock Exchange's Main List as of about 1
November 2005.
SHAREHOLDERS' MEETINGS
1. Annual General Meeting of 1 March 2005
Convened on 1 March 2005, the Group's Annual General Meeting (AGM) adopted the
financial statements for 2004, discharged Board members and the Managing Director
from liability and, pursuant to the Board's proposal, confirmed the profit
distribution for 2004 and Board emoluments, and elected the new Board of
Directors.
In addition, the AGM decided to:
1) Alter the Articles of Association in such a way that the Board comprise 5-8
members.
2) Alter the Articles of Association, conditional on Digia Inc.'s merger, in such
a way that the company be renamed SysOpen Digia Oyj, or SysOpen Digia Plc in
English.
3) Alter the Articles of Association, conditional on the merger with Digia Inc.,
in such a way that the minimum authorised capital be one million and two hundred
thousand (1,200,000) euros and the maximum authorised capital four million and
eight hundred thousand (4,800,000) euros, within whose limits the company may
increase or reduce its share capital without altering its Articles of
Association.
4) Authorise the Board of Directors, on certain conditions, to decide on issuing
one or several convertible bonds, issuing stock options and/or increasing the
company's share capital through one or several rights issues. The authorisation
is valid for one year as of the date of the AGM's decision. This authorisation
was replaced with another one issued by the Extraordinary General Meeting (EGM)
of 1 June 2005. The Board has not exercised this authorisation.
2. Extraordinary General Meeting of 1 June 2005
Convened at the Group's parent company on 1 June 2005, the Extraordinary General
Meeting decided to issue 2005K and 2005 A-C stock options and, following the
cancellation of the former Board authorisation, to authorise the Board of
Directors to decide on issuing, on certain conditions, one or several convertible
bonds, issuing stock options and/or increasing share capital through one or
several rights issues. The authorisation is valid for one year as of the date of
the AGM's decision. The Board has not exercised this authorisation.
SHARE CAPITAL AND SHARES
The nominal value of a share is EUR 0.1, and the period-end number of shares
totalled 18,296,804 shares.
On 30 September 2005, SysOpen Digia had a total of 3,342 shareholders. The ten
largest shareholders were as follows:
Shareholder Proportion (%) of shares and
votes
Pekka Sivonen 19.7%
Kari Karvinen 8.7%
Matti Savolainen 7.2%
Jorma Kylätie 5.2%
Varma Mutual Employment Pension Insurance 3.8%
Company
Eqvitec Teknologiarahasto I Ky 3.3%
OP-Suomi Kasvu Mutual Fund 3.0%
Mika Malin 2.5%
Mutual Fund Pohjola Finland Value 1.9%
Veikko Laine Oy 1.8%
Holdings by the number of shares held on 30 September 2005
Number of shares Proportion (%) of Proportion (%) of
holdings shares and votes
1-100 26.24% 0.4%
101-1,000 53.1% 4.5%
1,001-10,000 17.6% 9.2%
10,001-100,000 2.2% 13.5%
100,001-1,000,000 0.7% 36.8%
1,000,001-3,000,000 0.1% 35.6%
Total number of shares: 18,296,804
Holdings by sector on 30 September 2005
Proportion (%) of Proportion (%) of
holdings shares
Non-banking corporate sector 6.5% 13.4%
Financial institutions and insurance 0.5% 11.7%
companies
Non-corporate public sector 0.1% 3.9%
Non-profit organisations 0.5% 2.1%
Households 91.9% 68.8%
Foreign holding 0.5% 0.1%
Q1-Q3/2005 SHARE PERFORMANCE ON THE HELSINKI STOCK EXCHANGE
SysOpen Digia Plc shares are quoted on the Main List of the Helsinki Stock
Exchange under the Information Technology IT Services sector. One trading lot
includes 50 shares and the trading code is SYS1V. The lowest reported share
quotation in 2005 was EUR 3.43 and the highest EUR 4.93. The share closed at EUR
4.20 on the report period's final trading date. The trade-weighted average
amounted to EUR 4.32. The Group's market capitalisation totalled EUR 76,846,577
at the end of the report period.
During the report period, the company received the following four announcements,
as required by Section 9, Chapter 2 of the Securities Market Act:
1. Related to SysOpen Plc's and Digia Inc.'s combination, SysOpen Digia Plc's
(hereinafter SysOpen Digia) largest shareholder, Pekka Sivonen, has authorised
certain former holders of Digia B series shares to buy a total of 765,011 SysOpen
Digia shares - accounting for around 4.2 per cent of SysOpen Digia shares - at a
pre-determined price (call option) within 12 months as of 4 March 2005. Should
said shareholders exercise this call option in full, Pekka Sivonen's shareholding
in SysOpen Digia and the related votes will reduce to less than one fifth (1/5).
2. Based on trades in SysOpen Digia Plc shares carried out by Eqvitec
Teknologiarahasto I Ky on 22 March 2005, Eqvitec Teknologiarahasto I Ky's holding
in SysOpen Digia Plc shares and the related votes were lower than one-twentieth
(1/20).
3. Based on trades in SysOpen Digia Plc shares carried out by TeliaSonera Finland
Plc on 23 March 2005, TeliaSonera Finland's holding in SysOpen Digia Plc shares
and the related votes were lower than one-twentieth (1/20).
4. Based on trades in SysOpen Digia Plc shares carried out by Pekka Sivonen on 8
July 2005,
Pekka Sivonen's holding in SysOpen Digia Plc shares and the related votes
were lower than one fifth (1/5).
STOCK-OPTION SCHEMES
Stock-option scheme 2003
The number of the stock options initially issued under the 2003 stock option
scheme totalled 670,000 as follows: 210,000 2003A stock options, 160,000 2003B
stock options, 150,000 2003C stock options and 150,000 2003D stock options, all
of which have been subscribed. The share subscription period for 2003A stock
options is from 2 May 2004 until 31 October 2005, 2003B stock options from 1
November 2004 until 31 October 2006, 2003C stock options from 1 November 2005
until 31 October 2007 and 2003D stock options from 1 November 2006 until 31
October 2008. The dividend-adjusted per-share subscription price for 2003A, 2003B
and 2003C and 2003D options is currently EUR 2.87, EUR 2.78 and EUR 3.75 and EUR
4.32, respectively. Under the terms and conditions of the option scheme,
distributed dividends will be deducted from the subscription prices. On 17
October 2005, SysOpen Partners Oy, SysOpen Digia Plc's wholly owned subsidiary,
held a total of 57,741 stock options based on the 2003 stock-option scheme. The
2003A stock options have been quoted on the Helsinki Stock Exchange's Stock
Options list since 25 May 2004 and the 2003B options since 18 January 2005. The
2003C stock options will be quoted on the Helsinki Stock Exchange's Stock Options
list as of 1 November 2005.
Based on the 2003 stock-option scheme, a total of 137,933 new shares were
subscribed by 20 October 2005, with 103,583 2003A stock options and 34,350 2003B
stock options being exercised.
Stock-option scheme 2005K
The number of stock options initially attached to the 2005K stock-option scheme
totals 663,049, 105,408 of which are labelled with 2005K1 and 557,641 are
labelled with 2005K2, all of which have been subscribed. The stock options
entitle to subscription for a maximum of 663,049 SysOpen Digia Plc shares, each
share bearing a par value of EUR 0.10.
The per-share subscription price for 2005K1 and 2005K2 stock options was EUR 1.21
and EUR 2.41, respectively. The share subscription price based on the stock
options will be reduced by the amount of dividend decided after 1 June 2005 and
before share subscription on each record date. However, the per-share
subscription price is always at least the share's par value. The share
subscription period for the 2005K1 stock option began on the date of the 2005K
stock-option registration with the Trade Register on 12 August 2005 and will
expire on 31 December 2007. The subscription period for the 2005K2 stock options
will be from 1 January 2006 until 31 December 2007. The 2005K1 stock options may
be used only for share subscription. On 20 October 2005, SysOpen Partners Oy,
SysOpen Digia Plc's wholly owned subsidiary, held a total of 5,005 stock options
based on the 2005K2 stock-option scheme.
All of the 2005K stock options have already been exercised.
Stock-option scheme 2005
The number of stock options attached to the 2005 stock-option scheme totals
900,000, 300,000 of which are labelled with 2005A, 300,000 with 2005B and 300,000
with 2005C. The stock options entitle to subscription for a maximum of 900,000
SysOpen Digia Plc shares, each share bearing a par value of EUR 0.10.
The per-share subscription price for the 2005A stock option is EUR 4.33. The per-
share subscription price for the 2005K2 stock option will be determined by the
trade-weighted average of a SysOpen Digia Plc share quoted on the Helsinki Stock
Exchange during 20 trading days following the release of SysOpen Digia's January-
March Interim Report 2006.
The per-share subscription price for the 2005C stock option will be determined by
the trade-weighted average of a SysOpen Digia Plc share quoted on the Helsinki
Stock Exchange during 20 trading days following the release of SysOpen Digia's
January-March Interim Report 2007. The share subscription price based on the
stock options will be reduced by the amount of dividend decided after the
beginning of the subscription price determination period and before share
subscription
on each record date. However, the per-share subscription price is always at least
the share's par value. The share subscription period for the 2005A stock option
will be from 1 November 2007 until 30 November 2009, the 2005B stock option from
1 November 2008 until 30 November 2010 and the 2005C stock option from 1 November
2009 until 30 November 2011. As a result of the share subscriptions based on the
2005A, 2005B and 2005C stock options, SysOpen Digia Plc's share capital may
increase by a maximum of EUR 90,000 and the number of shares by a maximum of
900,000 new shares. On 16 October 2005, SysOpen Partners Oy, SysOpen Digia Plc's
wholly owned subsidiary, held a total of 666,000 stock options based on the 2005
stock-option scheme.
The number of all stock options issued by SysOpen Digia totalled 1,989,708 on 20
October 2005. The shares to be subscribed on the basis of the stock options will
account for a maximum of 9.79 per cent of the company's shares and votes entitled
by the shares after any possible increase of the company's share capital. On 20
October 2005, SysOpen Partners still held 728,746 of all stock options. The
dilution effect of the distributed stock options was a maximum of 6.4 per cent on
20 October 2005.
Helsinki, 31 October 2005
SYSOPEN DIGIA PLC
Board of Directors
FOR FURTHER INFORMATION, PLEASE CONTACT:
Jari Mielonen, CEO,
Tel. +358 424 2020 370, gsm +358 40 703 8383; email:
jari.mielonen@sysopendigia.com
The interim accounts and associated slide show will be available at
www.sysopendigia.com in the 'Investors' section from 11.00 a.m.
DISTRIBUTION
Helsinki Stock Exchange
Major media
ATTACHMENTS
Consolidated Income Statement, IFRS
Segment Informaton, IFRS
Consolidated Balance Sheet, IFRS
Consolidated Cash Flow Statement, IFRS
Consolidated Income Statement by quarter, IFRS
Group key figures and ratios, IFRS
Proforma Income Statement, IFRS
Statement on changes in shareholders' equity
Summary of IFRS effects on shareholders' equity
Income Statement Q1-Q3/2004, FAS - IFRS
This Interim Report is based on unaudited figures.
CONSOLIDATED INCOME STATEMENT, EUR 1,000
Q3/2005 Q3/2004 Change Q1-Q3/20 Q1-Q3/20 Change 2004
% 05 04 %
Turnover 15,357.0 5,415.4 184% 42,598.3 18,426.5 131% 26,173.7
Other operating 115.7 17.5 561% 197.2 95.4 107% 187.5
income
Materials and -907.1 -221.6 309% -2,331.6 -734.8 217% -934.2
services
Depreciation and -998.3 -306.4 226% -2,284.1 -876.8 161% -1,185.8
impairment
Other operating -11,836. -4,864.8 143% -35,811. -16,080. 123% -21,883.
expenses 9 8 2 5
Operating profit 1,730.5 40.0 4,226% 2,368.1 830.2 185% 2,357.7
Financial income -241.7 275.5 -188% -693.3 238.5 -391% 419.5
(net)
Pre-tax profit 1,488.8 315.6 372% 1,674.8 1,068.6 57% 2,777.2
Income tax charge -647.4 -56.0 1,056% -527.6 -62.0 751% -407.2
Net profit/loss 841.4 259.5 224% 1,147.2 1,006.7 14% 2,370.1
Allocation:
Parent company 836.1 254.6 228% 1,132.3 988.0 15% 2,340.3
shareholders
Minority 5.3 4.9 9% 14.9 18.7 -20% 29.8
shareholders
Earnings per 0.05 0.03 67% 0.07 0.11 -36% 0.25
share, EUR
Earnings per share 0.05 0.02 150% 0.07 0.10 -29% 0.25
(diluted), EUR
SEGMENT INFORMATION, EUR 1,000
TURNOVER Q3/2005 Q3/2004 Change Q1-Q3/2 Q1-Q3/2 Change 2004
% 005 004 %
Integration Division 7,643 4,739 61% 22,462 16,269 38% 22,962
Smartphone Division 7,714 676 1,041% 20,136 2,158 833% 3,212
Group total 15,357 5,415 184% 42,598 18,427 131% 26,174
OPERATING PROFIT Q3/2005 Q3/2004 Change Q1-Q3/2 Q1-Q3/2 Change 2004
% 005 004 %
Integration Division 808 -3 -27,03 2,002 565 254% 1,876
3%
Smartphone Division 923 43 2,047% 2,244 265 747% 482
Restructuring expenses 0 0 -1,878 0
Group total 1,731 40 4,228% 2,368 830 185% 2,358
CONSOLIDATED BALANCE SHEET, EUR 1,000
Assets 30 Sept. 30 Sept. Change % 31 Dec.
2005 2004 2004
Non-current assets
Intangible assets 64,558.7 2,243.7 2,777 % 2,244.8
Tangible assets 3,201.7 1,805.0 77 % 1,697.9
Financial assets 595.1 587.6 1 % 585.6
Deferred tax assets 1,929.7 147.2 1,211 % 2.7
Total non-current 70,285.2 4,783.5 1,369 % 4,531.0
assets
Current assets
Inventories 13.2 0.0 0.0
Current receivables 18,303.6 7,859.4 133 % 10,149.0
Available-for-sale 17,722.8 2,364.4 650 % 2,900.4
assets
Cash and cash 6,696.1 2,353.2 185 % 3,008.4
equivalents
Total current assets 42,735.7 12,577.0 240 % 16,057.8
Total assets 113,020.9 17,360.5 551 % 20,588.8
Shareholders' equity 30 Sept. 30 Sept. 2004 Change % 31 Dec.
and liabilities 2005 2004
Share capital 1,829.7 926.3 98 % 926.3
Issue premium fund 39,445.1 7,102.2 455 % 7,102.2
Treasury shares 0.0 0.0 0.0
Fair value reserve 317.7 -202.4 -257 % 84.9
Translation difference 23.1 -9.0 -356 % 23.1
Other reserve 5,203.8 0.0 0.0
Retained earnings/loss 2,616.7 1,361.5 92 % 827.7
Net profit/loss 1,132.3 988.0 15 % 2,340.3
Shareholders' equity 50,568.3 10,166.5 397 % 11,304.5
held by parent company
shareholders
Minority interest 102.7 110.6 -7 % 121.7
Total shareholders' 50,670.9 10,277.1 393 % 11,426.2
equity
Liabilities
Long-term, 41,354.6 402.2 10,182 % 133.5
interest-bearing
liabilities
Provisions 880.8 0.0 0.0
Deferred tax 3,082.4 95.2 3,138 % 148.5
liabilities
Total long-term 45,317.9 497.4 9,011 % 282.0
liabilities
Short-term liabilities 17,032.1 6,586.0 159 % 8,880.6
Total short-term 17,032.1 6,586.0 159 % 8,880.6
liabilities
Total liabilities 62,350.0 7,083.4 780 % 9,162.6
Shareholders' equity 113,020.9 17,360.5 551 % 20,588.8
and liabilities
CONSOLIDATED CASH FLOW STATEMENT 2004-05, EUR 1,000
Cash flow from business operations: Q1-Q3/2005 Q1-Q3/2004 2004
Cash flow from sales 42,296 15,848 24,066
Cash flow from other operations 197 95 210
Operating expenses -40,180 -15,595 -22,495
Cash flow from business operations 2,313 348 1,782
before financial items and taxes
Interest paid and other financial -148 -21 -9
expenses
Interest received from operations 2 1 1
Income taxes paid -131 -116 -137
Cash flow before extraordinary items 2,035 211 1,636
Cash flow from business operations due 0 0 -185
to extraordinary items
Cash flow from business operations 2,035 211 1,451
Cash flow from investments:
Investments in tangible and intangible -879 -1,439 -1,580
assets
Capital gains on tangible and 1 0 11
intangible assets
Other investments -12,396 -55
Capital gains on other investments 167 313 572
Repayment of loans receivable 0 11
Dividends received from investments 5 24 24
Divested associated companies' shares 0 60
Interest income from investments 235 10 53.6
Cash flow from investments -12,867 -1,092 -903.4
Cash flow from financing:
Rights issue 436 0 0
Withdrawal of short-term loans 0 0 0
Withdrawal of long-term loans 0 0 0
Dividends paid and other profit -1,020 -2,223 -2,779
distribution
Cash flow from financing -584 -2,223 -2,779
Change in liquid assets -11,416 -3,103 -2,231
Liquid assets at period-start 5,909 7,781 7,781
Liquid assets received due to business 29,694 0
combinations
Changes in fair value 233 40 359
Liquid assets at period-end 24,419 4,717 5,909
Difference -11,416 -3,104 -2,231
CONSOLIDATED INCOME STATEMENT BY QUARTER, EUR 1,000
Q3/2005 Q2/2005 Q1/2005 Q4/2004 Q3/2004 Q2/2004
Turnover 15,357.0 18,901.0 8,340.3 7,747.2 5,415.3 6,551.5
Other operating 115.7 48.2 33.3 92.1 17.5 53.2
income
Materials and -907.1 -1,230.0 -194.5 -199.4 -221.6 -262.9
services
Depreciation and -998.3 -870.9 -414.9 -309.0 -306.4 -291.8
impairment
Other operating -11,836. -17,111. -6,862.9 -5,803.3 -4,864.8 -5,653.0
expenses 9 9
Operating profit/loss 1,730.5 -263.5 901.1 1,527.5 40.0 397.0
Financial income -241.7 -450.4 -1.2 181.0 275.5 -3.7
(net)
Pre-tax profit/loss 1,488.8 -713.9 899.9 1,708.6 315.5 393.2
Income tax charge -647.4 304.2 -184.4 -345.2 -56.1 33.9
Net profit/loss 841.4 -409.7 715.5 1 363.4 259.5 427.1
Allocation:
Parent company 836.1 -414.2 710.4 1 352.3 254.6 426.4
shareholders
Minority shareholders 5.3 4.5 5.1 11.1 4.9 0.7
Earnings per share, 0.05 -0.02 0.06 0.14 0.03 0.05
EUR
Earnings per share, 0.05 -0.02 0.06 0.15 0.02 0.05
diluted, EUR
GROUP KEY FIGURES AND RATIOS
Q1-Q3/2005 Q1-Q3/2004 2004
Extent of business
Turnover 42,598 18,427 26,174
- year-on-year change 131 % -1% 4%
Capital invested average 41,100 10,278 11,548
Personnel at period-end 811 301 288
Average personnel 709 282 286
Profitability
Operating profit/loss 2,368 830 2,358
- % of turnover 6% 5% 9%
Pre-tax profit 1,675 1,069 2,777
- % of turnover 4% 6% 11%
Net profit/loss 1,132 988 2,340
% of turnover 3% 5% 9%
Return on equity (ROE) 4% 13% 21%
Return on investment (ROI) 5% 13% 23%
Financing and financial position
Interest-bearing liabilities 41,355 141 134
Available-for-sale assets + cash and 24,419 4,718 5,909
bank receivables
Net gearing 33% -45% -51%
Equity ratio 46% 71% 70%
Cash flow from business operations 2,035 211 1,451
Earnings per share, EUR 0.07 0.11 0.25
undiluted
Earnings per share, EUR 0.07 0.10 0.25
diluted
Equity per share 2.76 1.10 1.23
Lowest share price 3.43 2.90 2.90
Highest share price 4.93 5.35 5.35
Average share price 4.32 3.77 3.66
Market capitalisation 76,847 31,309 31,679
PROFORMA INCOME STATEMENT FOR 1 JANUARY-30 SEPTEMBER 2005, EUR 1,000
Q1-Q3/2005 Q1-Q3/2004
TURNOVER 50,736.4 46,018.4
Other operating income 399.1 398.5
Materials and services -2,958.8 -1,751.0
Depreciation and -5,014.6 -3,257.8
impairment
Other operating expenses -44,364.4 -38,745.7
OPERATING PROFIT/LOSS -1,202.2 2,662.4
Financial income (net) -568.0 695.3
Pre-tax profit -1,770.2 3,357.8
Income tax charge -688.5 -772.5
NET PROFIT/LOSS -2,458.7 2,585.2
Allocation:
Parent company -2,473.6 2,566.5
shareholders
Minority shareholders 14.9 18.7
STATEMENT ON CHANGES IN SHAREHOLDERS' EQUITY, EUR 1,000
Share Issue Translat Fair Treasu Retained Minori Total
capit premiu ion value ry earnings/ ty sharehold
al m fund differen reser shares loss intere ers'
ces ve st equity
FAS 936.3 7,092. 32.9 0.0 0.0 3,218.2 153.3 11,432.9
sharehold 2
ers'
equity 31
Dec. 2003
IFRS 936.3 7,092. -6.7 -242. -606.2 4,153.8 153.3 11,480.6
sharehold 2 1
ers´
equity 1
Jan. 2004
Share -10.0 10.0 0.0
capital
Dividend -2,223.1 -2,223.1
payment
Cancellat 606.2 -606.2 0.0
ion of
treasury
shares
Available 36.7 36.7
-for-sale
assets
Other -44.7 -44.7
Net 281.2 13.1 294.3
profit/lo
ss
Total -10.0 10.0 0.0 36.7 606.2 -2,548.1 -31.6 -1,936.8
income
and
expenses
recognise
d for the
period
IFRS 926.3 7,102. -6.7 -205. 0.0 1,605.7 121.7 9,543.8
sharehold 2 4
ers´
equity 31
March
2004
Dividend 0.0
payment
Cancellat 0.0
ion of
treasury
shares
Available 35.0 35.0
-for-sale
assets
Other -2.4 15.0 -16.7 -4.1
Net 452.2 0.7 452.9
profit/lo
ss
Total 0.0 0.0 -2.4 35.0 0.0 467.2 -16.0 483.8
income
and
expenses
recognise
d for the
period
IFRS 926.3 7 -9.1 -170. 0.0 2,072.9 105.7 10,027.6
sharehold 102.2 4
ers´
equity 30
June 2004
Dividend 0.0
payment
Cancellat 0.0
ion of
treasury
shares
Available -32.0 -32.0
-for-sale
assets
Other 22.0 22.0
Net 254.6 4.9 259.5
profit/lo
ss
Total 0.0 0.0 0.0 -32.0 0.0 276.6 4.9 249.5
income
and
expenses
recognise
d for the
period
IFRS 926.3 7,102. -9.1 -202. 0.0 2,349.5 110.6 10,277.1
sharehold 2 4
ers´
equity 30
Sept.
2004
Dividend -555.8 -555.8
payment
Cancellat 0.0
ion of
treasury
shares
Available 287.4 287.4
-for-sale
assets
Other 32.1 22.0 54.1
Net 1,352.3 11.1 1,363.4
profit/lo
ss
Total 0.0 0.0 32.1 287.4 0.0 818.5 11.1 1,149.1
income
and
expenses
recognise
d for the
period
IFRS 926.3 7,102. 23.0 85.0 0.0 3,168.0 121.7 11,426.2
sharehold 2
ers´
equity 31
Dec. 2004
Dividend -1,018.9 -1,018.9
payment
Increase 882.0 31,928 32,810.5
of share .5
capital
Available -60.7 -60.7
-for-sale
assets
Other 5,110.4 5,110.4
reserve
Other 18.3 18.3
Net 710.5 -28.8 681.7
profit/lo
ss
Total 882.0 31,928 0.0 -60.7 0.0 4,820.3 -28.8 37,541.3
income .5
and
expenses
recognise
d for the
period
IFRS 1,808 39,030 23.0 24.3 0.0 7,988.3 92.9 48,967.5
sharehold .3 .7
ers´
equity 31
March
2005
Dividend 0.0
payment
Increase 9.5 259.7 269.2
of share
capital
Available 200.3 200.3
-for-sale
assets
Other 93.4 93.4
reserve
Other 251.9 251.9
Net -414.2 4.5 -409.7
profit/lo
ss
Total 9.5 259.7 0.0 200.3 0.0 -68.9 4.5 405.1
income
and
expenses
recognise
d for the
period
IFRS 1,817 39,290 23.0 224.6 0.0 7,919.4 97.4 49,372.6
sharehold .8 .4
ers´
equity 30
June 2005
Dividend 0.0
payment
Increase 11.9 154.7 166.6
of share
capital
Available 93.1 93.1
-for-sale
assets
Other 0.0
reserve
Other 197.4 197.4
Net 836.1 5.3 841.4
profit/lo
ss
Total 11.9 154.7 0.0 93.1 0.0 1,033.5 5.3 1,298.4
income
and
expenses
recognise
d for the
period
IFRS 1,829 39,445 23.0 317.7 0.0 8,952.9 102.7 50,671.0
sharehold .7 .1
ers´
equity 30
Sept 2005
RECONCILIATION OF SHAREHOLDERS' EQUITY AND RESULTS 2004
SUMMARY OF IFRS EFFECTS ON SHAREHOLDERS' EQUITY, EUR 1,000
1 Jan. 31 30 June 30 Sept. 31 Dec.
2004 March 2004 2004
2004 2004
Shareholders' equity held 11,279.6 9,315.3 9,722.9 9,902.8 10,531.1
by parent company
shareholders, FAS
IAS 12 Deferred tax -20.2 -6.2 -1.0 -5.4 -80.5
assets and liabilities
IAS 17 Leases - 12.2 5.7 10.9 16.3 -9.4
IAS 19 Employee benefits -214.0 -229.8 245.5 -261.3 0
IAS 38 Intangible assets 285.9 336.7 401.6 548.2 645.5
IAS 39 Financial 0 7.4 36.4 -5.4 229.8
instruments
Other IFRS effects 8.2 -7.1 -3.4 -28.8 -12.1
Shareholders' equity held 11,327.3 9,422.1 9,921.9 10,166.5 11,304.5
by parent company
shareholders, IFRS
Minority interest 153.3 112.6 105.7 110.6 121.7
Total shareholders' 11,480.6 9,534.7 10,027.6 10,277.1 11,426.2
equity
INCOME STATEMENT Q1-Q3/2004, EUR 1,000
FAS Change IFRS
Q1-Q3/2004 Q1-Q3/2004
Turnover 18,426.5 0.0 18,426.5
Other operating income 118.2 -22.8 95.4
Materials and services -734.8 0.0 -734.8
Depreciation and impairment -685.1 -191.7 -876.8
Other operating expenses -16,420.7 340.5 -16,080.2
Operating profit/loss 704.2 126.0 830.2
Financial income (net) 283.6 -45.1 238.5
Extraordinary items -46.4 46.4 0.0
Pre-tax profit 941.4 127.3 1,068.6
Income tax charge -74.0 12.0 -62.0
Minority interest -18.7 18.7 0.0
Net profit/loss 848.7 158.0 1,006.7
Allocation:
Parent company shareholders 867.4 120.6 988.0
Minority shareholders 18.7 0.0 18.7
The weighted average of the share-issue adjusted number of shares toatlled
15,950,678 during the report period. The weighted average of the dilution-
adjusted number of shares totalled 16,156,758 during the report period. The
number of outstanding shares totalled 18,296,804 at the end of the period.
The Group holds no treasury shares.
The Group has no liabilities associated with derivative contracts.
