Interim report of Proha Plc for the period january 1 - march 31, 2000

INTERIM REPORT OF PROHA PLC FOR THE PERIOD JANUARY 1 - MARCH 31, 2000 - The growth of the company was rapid and profitability good. - Net turnover was EUR 2.4 million (FIM 14.3 million), growth 192% - Profit before extraordinary items EUR 0.5 million (FIM 2.9 million), growth 134% The rapid growth of the company is anticipated to continue at least as planned. The business of the company is expected to stay profitable, even though due to the rapid growth the relative profitability may decline. NET TURNOVER AND RESULT DEVELOPMENT The net turnover of the Proha Group in the survey period of January 1 - March 31, 2000 increased to EUR 2.4 million, while in the corresponding period last year it was EUR 0.8 million. Other business returns were EUR 0.3 million, which mainly consists of contributions received for product development. Operating profit grew to EUR 0.5 million, compared to EUR 0.2 million in the corresponding period last year. The result before appropriations and taxes was EUR 0.5 million (20.2% of the net turnover), compared to last year's EUR 0.2. Result per share for the 3 month period mounted to EUR 0.08 compared to EUR 0.10 in the previous 10 month financial year 1999. Equity ratio was 71.2% The amount of personnel continued to increase. At the end of the quarter the number of employees in Proha Group is 190. In 1999 the number of staff was on the average 61. The staff expenses were EUR 1.2 million, 50% of the turnover. The profit and loss account does not include the net turnover(EUR 0.657 million) or profit before taxes (EUR 0.140 million) of Accountor Oy that was acquired at the end of the quarter. The Group's proforma net turnover for the quarter, including Accountor Oy, was EUR 3.07 million. Accountor Oy's information is included in the balance sheet. The profit and loss account does not include the business of Safran Software Solutions AS, that was purchased after this quarter. FINANCING AND INVESTMENTS The balance sheet total at the end of the quarter was EUR 10.6 million, compared to EUR 2.9 million of the first quarter of the previous year. The current asset was EUR 5.8 million, last year's corresponding period was EUR 0.8 million. Quick Ratio of the Group improved from 0.6 to 2.8. The most important investments were the acquisitions made according to the company's growth strategy. EUR 91,000 was invested in machinery and equipment. The amount of credits with interest was 6.6% of the total capital. BUSINESS STRATEGY In March Proha renewed its business strategy by dividing its business into three business areas: - Project Management (33.3% of proforma net turnover, EUR 3.07 million) - Financial Management (29.6% of proforma net turnover) - Internet Technologies (37.1% of proforma net turnover) Project Management business area consists of the Group companies CM-Systems Oy, DA Futura International Oy, Planman Oy and Projektihallinto Oy Proha; Financial Management business area consists of Accountor Oy, ProCountor International Oy and Tuloshallinto Oy and Internet Technologies business area of Ari Hovi Oy, Brossco Systems Oy, Datamar Oy, Intellisoft Oy and Vidac Oy. GROUP STRUCTURE AND ITS CHANGES During the survey period Proha Plc acquired the whole share capital of Brossco Systems Oy, and Accountor Oy, and the share majority of Tuloshallinto Oy. The pre-contracts about acquisitions of the whole share capital of CM-Systems Oy, Planman Oy and Ari Hovi Oy made in December 1999 were concluded during this quarter. After the survey period, Proha Plc has also agreed upon purchasing 60% of the Norwegian Safran Software Solutions AS. Proha Plc gave an offer of purchase to the minority shareholder's of Datamar Oy. Proha Plc's holding of Datamar Oy is now 98% of shares and over 99% of votes. The aim is to increase the holding to 100%. Espoo, May 18, 2000 The Board of Directors of Proha Plc More information PROHA PLC CEO Pekka Pere, tel. +358 20 4362 000 pekka.pere@proha.fi http://www.proha.fi ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/2000/05/18/20000518BIT00690/bit0001.doc http://www.bit.se/bitonline/2000/05/18/20000518BIT00690/bit0002.pdf