DONE SOLUTIONS? INTERIM REPORT FOR H1/20
Done Solutions Corporation
Stock Exchange Release August 7, 2003 at 9.00 a.m.
DONE SOLUTIONS INTERIM REPORT FOR H1/2003
- Consolidated net sales for the period came to EUR 12.3 million (EUR
18.4 million in H1/2002, comparable net sales were EUR 16.2 million in
H1/2002)
- Consolidated operating loss amounted to EUR 1.0 million (a loss of
EUR 2.8 million), or 8.0 percent of net sales (15.4 percent), and net
loss for the period totaled EUR 1.3 million (a loss of EUR 5.1
million), or 10.3 percent of net sales (27.6 percent).
- Earnings per share were EUR 0.026 (EUR 0.071), while equity ratio
stood at 33.0 percent (41.3 percent).
- Liquid assets were EUR 1.1 million (EUR 2.9 million).
- The company improved its profit performance during the report period,
although still showing a loss.
- Second-half net sales are expected to remain at the first-half levels
and operating results for the period are expected to improve on the
first-half figures. The company will show an operating loss for 2003 as
a whole. The company is expected to show a positive cashflow during
the second half and a neutral cash flow during 2003.
NET SALES AND PROFITABILITY
MEUR Q1/2003 Q2/2003 Total
Net sales 6.3 6.0 12.3
Operating profit/loss -0.6 -0.4 -1.0
Profit/loss before extraordinary items -0.6 -0.5 -1.1
Net profit/loss for the period -0.7 -0.6 -1.3
Done Logistics
Within Systems & Software, second-quarter demand remained satisfactory
for management systems especially Warehouse Management Systems for
the Nordic beverage industries and maintenance work. With no clear
signs of rebound in sight, demand for materials handling systems
remained weak. The business area continued to take measures to
streamline its operations and rein in costs, as evidenced by the EUR
0.2 million cost-savings achieved during the second quarter through
fixed-term layoffs, staff reductions and other retrenchment. These cost-
control measures will also be reflected in the third and fourth quarter
results. Thanks to new distribution agreements concluded by the
Distribution unit, volumes remained at satisfactory levels.
Done Information
Within Software & Services, second-quarter demand for multilingual
documentation services remained at a satisfactory level. Translation
and localization services experienced a favorable volume development as
planned, improving its profit performance over the first quarter,
whereas demand remained low for software solutions.
Despite the persistently mild demand, the Engineering unit succeeded in
enhancing its invoicing volumes during the second quarter, especially
for product development projects, although the unit showed a market
loss for the report period. The unit intensified its selling efforts,
with a view to raising its volumes during the second half.
Done Information and Done Logistics net sales and profitability are
summarized below:
Net Sales Net Sales Operating Profit/Loss
H1/2003 H1/2002 H1/2003 H1/2002
MEUR Share MEUR Share MEUR % MEUR %
Done Logistics
Systems&Software 3.3 27% 6.9 38% -0.6 21% 1.2 -18%
Distribution 4.9 40% 5.5 30% -0.0 0% 0.6 10%
Total 8.2 67% 12.4 67% 0.7 8% 1.8 14%
Done Information
Software&Services 3.3 26% 4.1 22% 0.0 1% -0,1 -1%
Engineering 0.8 7% 1.9 10% 0.3 -42% -1.0 -53%
Total 4.1 33% 6.0 33% -0.3 8% -1.1 -18%
Done Solutions 12.3 100% 18.4 100% -1.0 8% -2.8 -15%
While year-on-year net sales fell across the board, operating results
improved within all units.
Net sales Net sales Net sales
Q1/2003 Q2/2003 Total
MEUR Share MEUR Share MEUR Share
Done Logistics
Systems&Software 2.0 32% 1.3 22% 3.3 27%
Distribution 2.1 34% 2.8 47% 4.9 40%
Total 4.1 66% 4.1 68% 8.2 67%
Done Information
Software&Services 1.7 27% 1.6 26% 3.3 26%
Engineering 0.5 8% 0.3 6% 0.8 7%
Total 2.2 34% 1.9 32% 4.1 33%
Done Solutions 6.3 100% 6.0 100% 12.3 100%
Op.profit/loss Op.profit/loss 0p.profit/loss
Q1/2003 Q2/2003 Total
MEUR % MEUR % MEUR %
Done Logistics
Systems&Software -0.3 16% -0.3 27% -0.6 -21%
Distribution -0.0 -2% 0.0 2% -0.0 0%
Total -0.4 -9% -0.3 -7% -0.7 -8%
Done Information
Software&Services -0.0 -2% 0.1 4% 0.0 1%
Engineering -0.2 35% -0.2 50% -0.3 -42%
Total -0.2 -9% -0.1 -6% -0.3 -8%
Done Solutions -0.6 -9% -0.4 -7% -1.0 -8%
The comparable figures for 2002 include Done Logistics Ab (Done
Solutions Swedish subsidiary) and its subsidiary, Actipac Ab, both
declared bankrupt in April 2002, until March 31, 2002. Their combined
net sales for JanuaryMarch 2002 totaled EUR 2.2 million (Done
Logistics Systems & Software accounting for EUR 1.8 million
Distribution for Eur 0.4 million), while their operating loss amounted
to EUR 0.4 million (Systems & Software EUR 0.4 million and
Distribution EUR 0.0 million).
Taxes for the period include EUR 0.2 million write-downs of avoir
fiscal receivables.
FINANCIAL POSITION
Period-end consolidated balance sheet total amounted to EUR 9.3 million
(EUR 17.1 million on June 30, 2002) while shareholders equity came to
EUR 3.0 million (EUR 6.9 million). At period-end, equity ratio was 33.0
percent (41.3 percent), gearing stood at 4.2 percent (5.4 percent) and
interest-bearing liabilities EUR 1.2 million (EUR 3.2 million).
Earnings per share came to EUR 0.026 (EUR 0.071). Equity per share
was EUR 0.061 (EUR 0.139). Liquid assets totaled EUR 1.1 million (EUR
2.9 million) at the end of the period.
The Group forecasts that its cashflow from business operations will be
positive over the next twelve months. The company estimates that its
liquid assets will suffice during the next 12-month period.
INVESTMENTS AND PRODUCT DEVELOPMENT
The company did not make any major investments or divestments during
the report period.
Product development costs for the period came to EUR 0.1 million, or
0.8 percent of net sales.
HUMAN RESOURCES
At the end of the period, the Group had a total staff of 238 (employees
on the payroll 205). On June 30, 2003, Done Logistics Systems &
Software unit had a staff of 78, Distribution 20, Done Informations
Software & Services 94 and Engineering 46. A year ago, the Groups
staff numbered 258.
In addition, Ametro Oy, a staffing service provider in which Done
Solutions has a 30 percent holding, had a staff of 142 at the end of
the report period.
SHARE CAPITAL, SHARES AND SHAREHOLDERS
On June 30, 2003 Done Solutions had a share capital of EUR 7,420,122.60
and the number of shares totaled 49,467,484.
The companys largest shareholders are listed on Dones website at
www.donesolutions.com (Investors / Financial Information / Largest
shareholders).
The highest share quotation for the period was EUR 0.20 and the lowest
EUR 0.10. With an average price of EUR 0.14, the companys share closed
at EUR 0.13 on June 30, 2003. The reported value of share turnover was
EUR 0.3 million, or 2,194,206 shares, and the companys market
capitalization on June 30, 2003 was EUR 6.4 million.
The unexercised share-issue authorization given by the Annual General
Meeting of March 21, 2003 to the Board of Directors applies to
9,893,496 shares on June 30, 2003. As of the same date, the company
held no treasury shares.
MAJOR EVENTS DURING THE PERIOD
Please refer to the öNET SALES AND PROFITABILITYö section for
information on major events during the report period. The period was
still characterized by difficult market conditions, and the company
continued its streamlining and restructuring program, with the aim of
matching the current business volume.
MAJOR EVENTS AFTER THE PERIOD
Veijo Pekkala, Group Management Team member and Done Logistics Sales
Director and Director responsible for the development of subcontracting
and partner networks, is no longer employed by the company.
FUTURE PROSPECTS
The market situation is likely to continue to remain difficult during
the second half of 2003. The launch of Done Logistics customer
investments still seems unpredictable. Also, there are no marked signs
of upturn in demand for Done Information services either, although
there is potential for customers outsourcing their services, which may
stimulate demand.
Second-half net sales are expected to remain at the first-half levels
and operating results for the period are expected to improve on the
first-half figures. The company will show an operating loss for 2003 as
a whole. The company is expected to show a positive cashflow during
the second half and a neutral cash flow during 2003. Measures to trim
costs will also continue during the rest of the year.
Done Solutions Corporation
Board of Directors
For further information, please contact:
Kari Åkman, President and CEO, tel. + 358 (0)205 253427, gsm 040 586
5927, kari.akman@donesolutions.com
Mika Söyring, Controller, tel. + 358 (0)205 253425, gsm 040 777 0033,
mika.soyring@donesolutions.com
http://www.donesolutions.com
Distribution:
Helsinki Exchanges
Major media
Done Solutions shares have been quoted on the Helsinki Exchanges NM
list since 2001, and the company is organized into two business areas:
Done Logistics provides comprehensive logistics systems, based on the
automation of materials handling, the supporting information systems
and outsourcing services. Done Information provides information
solutions, from design and documentation to after-sales marketing. Done
Solutions operates in selected industries in the Nordic countries,
Central Europe and the United States, and its customers typically
represent leading international companies in their industries.
GROUP KEY FIGURES AND RATIOS (MEUR) H1/2003 H1/2002 2002
Net Sales 12.3 18.4 32.0
Operating profit (loss) -1.0 -2.8 -5.0
Operating profit (loss), % -8.0 -15.4 -15.7
Profit (loss) before extraordinary -1.1 -3.5 -6.0
items
Profit (loss) before extraordinary -8.6 -19.1 -18.6
items, %
Net profit (loss) for the period -1.3 -5.1 -7.7
Net profit (loss) for the period % -10.3 -27.6 -24.1
Gross capital expenditure 0.0 1.1 1.1
Gearing % 4.2 5.4 -8.5
Equity ratio % 33.0 41.3 37.0
Earnings per share, EUR -0.026 -0.071 -0.127
Equity per share, EUR 0.061 0.139 0.087
Average personnel for the period 240 331 300
Cash flow from business operations -0.5 -4.9 -4.8
Cash flow from investments 0.0 1.1 1.1
Cash flow from financing -0.1 4.0 2.6
Total cash flow -0.6 0.2 -1.0
CONSOLIDATED INCOME STATEMENT (MEUR) H1/2003 H1/2002 2002
NET SALES 12.3 18.4 32.0
Operating income, total 12.5 19.0 32.6
Materials and services -5.8 -9.4 -15.5
Personnel expenses -4.7 -7.5 -12.4
Depreciation -0.8 -0.9 -1.9
Other operating expenses -2.2 -4.0 -7.8
OPERATING PROFIT (LOSS) -1.0 -2.8 -5.0
Financial income 0.0 0.1 0.1
Financial expenses -0.1 -0.7 -1.1
PROFIT (LOSS) BEFORE EXTRAORDINARY
ITEMS -1.1 -3.5 -6.0
Extraordinary income 0.0 0.0 0.0
Extraordinary expenses 0.0 -1.6 -1.4
PROFIT (LOSS) BEFORE APPROPRIATIONS
AND TAXES -1.1 -5.1 -7.4
Direct taxes -0.2 -0.0 -0.3
Minority interest 0,0 0,0 0,0
NET PROFIT (LOSS) FOR THE PERIOD -1.3 -5.1 -7.7
CONSOLIDATED BALANCE SHEET June 30, 2003 June 30, 2002 Dec. 31, 2002
(MEUR)
ASSETS
FIXED AND OTHER NON-CURRENT ASSETS
Intangible assets 0.9 2.0 1.6
Tangible assets 0.8 1.5 0.9
Total long-term investments 1.0 1.0 1.0
FIXED AND OTHER NON-CURRENT ASSETS 2.7 4.5 3.5
INVENTORIES AND CURRENT ASSETS
Inventories 0.1 0.1 0.1
Long-term receivables 1.0 1.7 1.2
Short-term receivables 4.4 8.0 5.4
Short-term investments 0.0 0.0 0.0
Cash and cash equivalents 1.1 2.9 1.7
INVENTORIES AND CURRENT ASSETS, TOTAL 6.6 12.7 8.4
ASSETS TOTAL 9.3 17.1 11.9
LIABILITIES AND SHAREHOLDERS EQUITY
SHAREHOLDERS EQUITY
Share capital 7.4 7.4 7.4
Issue premium fund 0.4 4.8 4.8
Other funds 0.2 0.2 0.2
Other unrestricted funds 0.0 3.7 3.7
Retained earnings (loss) -3.7 -4.2 -4.2
Net profit (loss) for the period -1.3 -5.1 -7.7
Subordinated loans 0.0 0.0 0.0
SHAREHOLDERS EQUITY, TOTAL 3.0 6.9 4.3
DEPRECIATION DIFFERENCES AND
VOLUNTARY RESERVES 0.0 0.0 0.0
STATUTORY RESERVES 1.0 0.4 1.2
MINORITY INTEREST 0.0 0.0 0.0
Long-term liabilities 0.1 0.2 0.2
Short-term liabilities 5.1 9.6 6.2
LIABILITIES TOTAL 5.2 9.8 6.4
LIABILITIES AND SHAREHOLDERS EQUITY 9.3 17.1 11.9
The figures in this Interim Report are unaudited.
