DONE SOLUTIONS' REPORT ON FINANCIAL STATEMENTS FOR 2004
Done Solutions Corporation
Stock Exchange Release, February 24, 2005, 9:00 a.m.
DONE SOLUTIONS' REPORT ON FINANCIAL STATEMENTS FOR 2004
- Consolidated net sales for 2004 came to EUR 18.4 million (EUR 22.6 million in
2003).
- Operating loss was EUR 0.9 million, or -5.0 percent of net sales (a loss of EUR
2.5 million, or -11.0 percent).
- Earnings per share were EUR -0.021 (EUR -0.065) and equity ratio 0.9 percent
(16.7 percent). Equity ratio, subordinated loans included, stood at 17.5 percent
(17.3 percent). Liquid assets totaled EUR 1.6 million (EUR 1.1 million).
- Profitability improved from the previous year, albeit less than targeted.
- The Group expects to record somewhat higher net sales for 2005 and make an
operating profit.
NET SALES, PROFITABILITY AND NET PROFIT/LOSS
MEUR Q1/2004 Q2/2004 Q3/2004 Q4/2004 Total
Net sales 5.2 4.7 4.0 4.5 18.4
Operating profit/loss -0.5 0.3 -0.4 -0.3 -0.9
Profit/loss before
extraordinary items -0.5 0.2 -0.4 -0.3 -1.0
Net profit/loss for the period -0.5 0.2 -0.4 -0.3 -1.0
Q2/2004 operating profit includes capital gains of EUR 0.7 million on the
divestment of Software Solutions. Financial items recorded for 2004 include
expenses of EUR 0.1 million incurred by an associated company.
BUSINESS AREAS
Done Logistics
Done Logistics reported a satisfactory order backlog for the fourth quarter,
which will not contribute to its performance until 2005. Major orders for 2004
included system deliveries to the paper processing industry.
Providor Logistics
Providor Logistics showed satisfactory volumes and operating profit for the last
quarter of 2004.
Done Information
Done Information showed mediocre volumes and operating profit for the last
quarter of 2004.
Net sales and operating profit by business unit:
Net Sales Net Sales Operating Profit/Loss
Q1-Q4/2004 Q1-Q4/2003 Q1-Q4/2004 Q1-Q4/2003
MEUR Share MEUR Share MEUR % MEUR %
Done Logistics 3.7 20% 5.8 26% -1.4 -37 -1.7 -29
Providor Logistics 9.6 52% 9.5 42% 0.2 2 0.1 1
Done Information 5.1 28% 7.3 32% 0.3 6 -0.9 -13
Done Solutions Group 18.4 100% 22.6 100% -0.9 -5 -2.5 -11
Done Information's Q2/2004 operating profit includes capital gains of EUR 0.7
million on the divestment of Software Solutions.
FINANCIAL POSITION
Consolidated balance-sheet total on December 31, 2004 amounted to EUR 5.6 million
(EUR 6.5 million on December 31, 2003), while shareholders' equity came to EUR
0.9 million (EUR 1.1 million). Parent-company shareholders' equity on the same
date totaled EUR 4.8 million (EUR 4.2 million). In December, the parent company
received EUR 0.8 million in subordinated loans. Year-end interest-bearing
liabilities were EUR 1.2 million (EUR 1.1 million). On the balance sheet date,
equity ratio stood at 0.9 percent (16.7 percent) and gearing -675.8 percent (4.5
percent). The Group's liquid assets at the end of the fiscal year totaled EUR 1.6
million (EUR 1.1 million). Earnings per share were EUR -0.021 (EUR -0.065) and
equity per share came to EUR 0.001 (EUR 0.022).
During the next 12 months, the Group expects to show a positive cash flow from
business operations and to hold sufficient liquid assets.
INVESTMENTS AND DIVESTMENTS
On April 28, 2004, Done Information sold its Software Solutions unit (a staff of
26) to SysOpen Plc for EUR 0.8 million.
PRODUCT DEVELOPMENT
The company has commercialized and incorporated software products and solutions
into the overall concept of Done Solutions' logistics-chain and technical-
information management. Development costs for 2004 totaled EUR 0.2 million, all
of these expensed as incurred.
HUMAN RESOURCES
At the end of the period, the Group had a staff of 151, three of whom worked
abroad. A year ago, the number of employees totaled 197, three of whom worked
abroad.
BOARD OF DIRECTORS, PRESIDENT AND CEO, AND THE CORPORATE MANAGEMENT GROUP
Done Solutions Corporation's Board of Directors is made up of the following
members: Jyri Merivirta (Chairman), Jaakko Asanti and President and CEO Pekka
Pystynen.
Done Solutions' Corporate Management Group consists of Pekka Pystynen, President
and CEO; Elina Karjalainen, Managing Director, Done Information, a subsidiary;
Juha Kujala, General Counsel; Juha Mikkola, Managing Directo, Done Logistics, a
subsidiary; Tuomo Rannila, Managing Director, Providor Logistics, a subsidiary;
and Mika Söyring, Controller.
DECISIONS BY THE ANNUAL GENERAL MEETING OF MARCH 26, 2004
The AGM's decisions can be found in the company's stock exchange release of March
26, 2004.
SHARE CAPITAL AND SHARES
On December 31, 2004, Done Solutions had a share capital of EUR 3,957,398.72 and
the number of shares totaled 49,467,484.
The company's largest shareholders are listed on Done's website at
www.donesolutions.com (Investors / Largest shareholders).
The highest share quotation for the period was EUR 0.28 and the lowest EUR 0.07.
The share price averaged EUR 0.16 and closed at EUR 0.08 on December 31, 2004.
The reported share turnover was EUR 3.1 million, or 18,940,048 shares, and the
company's market capitalization on December 31, 2004 was EUR 4.0 million.
The unexercised share-issue authorization given by the Annual General Meeting of
March 26, 2004 to the Board of Directors applies to 9,893,496 shares on December
31, 2004. As of the same date, the company held no treasury shares.
MANAGEMENT SHAREHOLDINGS
On December 31, 2004, the Board of Directors and the President and CEO held 28.4
percent of the company's shares, or 14,020,000 shares, and 0.0 percent of stock
options.
LEGAL PROCEEDINGS
In addition to proceedings previously announced, Done Solutions has no major
court cases pending.
ADOPTION OF IFRS
Since January 1, 2005, Done Solutions Group has applied IFRS (International
Financial Reporting Standards). Its annual and interim accounts for 2004 are
based on FAS (Finnish Accounting Standards). The Group will publish a special
release on the effects of its transition to IFRS before releasing its Q1/2005
results.
MAJOR EVENTS
Please refer to section "NET SALES, PROFITABLITY AND NET PROFIT/LOSS" for
information on major events during the report period.
PROSPECTS
The Group expects to record somewhat higher net sales for 2005 and make an
operating profit.
BOARD'S PROPOSAL FOR LOSS ALLOCATION
The Board of Directors will propose to the AGM of March 31, 2005 that the parent
company's loss of EUR 182,309.55 for 2004 be entered in retained loss, and no
dividend for the fiscal year be distributed.
Done Solutions Corporation
Board of Directors
For further information, please contact:
Pekka Pystynen, President and CEO, tel. +358 (0)205 253427, gsm +358 (0)50 0508
962, pekka.pystynen@donesolutions.com
Mika Söyring, Controller, tel. + 358 (0)205 253425, gsm +358 40 777 0033,
mika.soyring@donesolutions.com
http://www.donesolutions.com
Distribution
Helsinki Exchanges
Major media
With its shares having been quoted on the Helsinki Stock Exchange's NM List since
2001, Done Solutions is organized into the three following business units: Done
Logistics provides comprehensive logistics systems, based on automated materials-
handling and supporting information systems; Providor Logistics specializes in
distribution and warehousing services; and Done Information provides multilingual
documentation services. The Group's largest customers are based in the Nordic
countries, Central Europe and the United States.
GROUP KEY FIGURES AND RATIOS (MEUR) 2004 2003
Net sales 18.4 22.6
Operating profit/loss -0.9 -2.5
Operating marging, % -5.0 -11.0
Profit/loss before extraordinary items -1.0 -2.8
Profit/loss before extraordinary items, % -5.5 -12.3
Net profit/loss for the period -1.0 -3.2
Net profit/loss for the period, % -5.5 -14.2
Gross capital expenditure 0.0 0.0
Gross capital expenditure, % of net sales 0.2 0.2
R&D costs 0.2 0.1
R&D costs, % 1.1 0.6
Gearing, % -675.8 4.5
Equity ratio, % 0.9 16.7
Return on investment (ROI), % -31.7 -52.6
Return on equity (ROE), % -182.9 -120.3
Earnings per share, EUR -0.021 -0.065
Equity per share, EUR 0.001 0.022
Dividend per share, EUR 0.00 0.00
Payout ratio, % 0.0 0.0
Effective dividend yield, % 0.0 0.0
Price-earnings ratio neg. neg.
Average no. of issue adjusted shares 49,467,484 49,467,484
Issue adjusted number of shares at period-end 49,467,484 49,467,484
Average no. of employees 170 232
Cash flow from business operations -0.2 -0.6
Cash flow from investments 0.6 0.0
Cash flow from financing 0.1 -0.0
Total cash flow 0.5 -0.6
CONSOLIDATED INCOME STATEMENT (MEUR) 2004 2003
NET SALES 18.4 22.6
Operating income, total 19.2 22.8
Materials and services -10.2 -11.0
Personnel expenses -6.4 -8.5
Depreciation -0.6 -1.5
Other operating expenses -3.0 -4.4
OPERATING PROFIT/LOSS -0.9 -2.5
Financial income 0.1 0.1
Financial expenses -0.2 -0.4
PROFIT/LOSS BEFORE EXTRAORDINARY ITEMS -1.0 -2.8
Extraordinary income 0.0 0.0
Extraordinary expenses 0.0 0.0
PROFIT/LOSS BEFORE APPROPRIATIONS AND TAXES -1.0 -2.8
Direct taxes -0.0 -0.4
Minority interest 0.0 0.0
PROFIT/LOSS FOR THE PERIOD -1.0 -3.2
CONSOLIDATED BALANCE SHEET (MEUR) Dec. 31, 2004 Dec. 31, 2003
ASSETS
FIXED AND OTHER NON-CURRENT ASSETS
Intangible assets 0.1 0.4
Tangible assets 0.3 0.5
Long-term investments 0.7 0.8
TOTAL FIXED AND OTHER NON-CURRENT ASSETS 1.0 1.7
INVENTORIES AND CURRENT ASSETS
Inventories 0.1 0.1
Long-term receivables 0.2 0.9
Short-term receivables 2.8 2.8
Cash and cash equivalents 1.6 1.1
TOTAL INVENTORIES AND CURRENT ASSETS 4.6 4.8
TOTAL ASSETS 5.6 6.5
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital 4.0 7.4
Issue premium fund 0.4 0.4
Other funds 0.2 0.2
Retained earnings/loss -3.5 -3.7
Net profit/loss for the period -1.0 -3.2
Subordinated loans 0.8 0.0
TOTAL SHAREHOLDERS' EQUITY 0.9 1.1
STATUTORY RESERVES 1.3 1.2
Long-term liabilities 0.0 1.0
Short-term liabilities 3.5 3.2
LIABILITIES 3.5 4.2
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 5.6 6.5
