DONE SOLUTIONS CORPORATION'S IFRS COMPARATIVES FOR FISCAL 2004
Done Solutions Corporation
Stock Exchange Release April 26, 2005, at 3.30 p.m.
DONE SOLUTIONS CORPORATION'S IFRS COMPARATIVES FOR FISCAL 2004
On January 1, 2005, Done Solutions Corporation changed over from the Finnish
Accounting Standards to the International Financial Reporting Standards (IFRS),
with the date of transition to IRFS being January 1, 2004. The company will
prepare its interim reports and financial statements for 2005 and onwards in
compliance with IFRS.
Done Solutions Corporation has applied the First-Time-Adoption of IFRS (IFRS 1)
and the exceptions it permits relating to business combinations.
The most significant effects of the transition to IFRS on Done's consolidated
income statement and balance sheet apply to goodwill (IFRS 3), subordinated loans
(IAS 32), provisions (IAS 37) and research and development costs (IAS 38).
The latter section of this release presents the opening IFRS balance sheet on
January 1, 2004, reconciliation of shareholders' equity for January 1, 2004,
March 31, 2004, June 30, 2004, September 30, 2004 and December 31, 2004,
reconciliation of results for the period January 1-December 31, 2004, comparative
data on the consolidated income statement and balance sheet and key figures and
ratios for 2004 as a whole and on a quarterly basis. The data are based on
unaudited figures.
MAJOR EFFECTS
Stock options (IFRS 2)
Since the company has no valid stock options granted after December 7, 2002,
there is no need to apply IFRS 2 to its stock options.
Goodwill (IFRS 3)
Under IFRS 3, negative goodwill is recognized as income in the opening balance
sheet and goodwill related to subsidiaries and associated companies is no longer
amortized as planned on a straight-line basis but is tested annually for
impairment, under IAS 36. This change increases shareholders' equity by EUR 0.02
million in the opening IFRS balance sheet and results by EUR 0.2 million in the
IFRS financial statements for 2004. Impairment tests carried out by the company
indicate that cash flow from business operations expected in the future will
exceed the balance-sheet values of goodwill.
Discontinuing operations (IFRS 5)
Income and expenses from Software Solutions divested by Done Information Oy on
April 28, 2004 is treated separately from continuing operations on a specific
"Results of discontinuing operations" line. This entry has no effect on operating
results.
Deferred tax assets and liabilities (IAS 12)
No deferred tax assets were recognized in the balance sheet, due to uncertainty
about their utilization for taxable profits for future fiscal years, and no
deferred tax liabilities were recognized due to the high amount of confirmed
losses.
Finance leases (IAS 17)
All leases under FAS are treated as operating leases, whereas finance leases
under IFRS are recorded as assets and liabilities. Leased assets are amortized
over their useful lives and lease payments are apportioned between financial
expenses and the reduction of the outstanding liability. Consequently, assets and
liabilities included in the IFRS 2004 balance sheet increased by 0.1 million. The
decrease in lease payments and the increase in amortization in the income
statement have no major effect on 2004 figures.
Pensions (IAS 19)
Since disability pensions under the Employees' Pensions Act (TEL) are treated as
pensions on a defined contribution pension plan basis in IFRS-compliant financial
statements, the company does not include any imputed pension liability in the
IFRS comparatives for 2004. Accordingly, the company holds the view that this
inclusion would not substantially improve the comparability of 2004 vis-à-vis
future years.
Interest on subordinated loans (IAS 23)
Under FAS, interest on subordinated loans was not recognized but treated as
liabilities presented in the Notes to the Financial Statements, whereas interest
on subordinated loans under IFRS is recognized as liabilities in the balance
sheet. The amount of accrued interest for 2004 is not significant.
Subordinated loans (IAS 32)
Subordinated loans, as defined in the Finnish Companies Act, are treated as a
separate item included in shareholders' equity in the FAS-compliant balance
sheet, whereas they are shown under liabilities in the IFRS-compliant balance
sheet, as required by IAS 32. The amount of subordinated loans in the opening
balance sheet is EUR 0.0 million and in the closing balance sheet EUR 0.8
million.
Provisions (IAS 37)
Provisions are measured at discounted present value using a market rate based on
the management's best estimate of the amount required to settle an obligation.
Consequently, this increases shareholders' equity in the opening IFRS balance
sheet by 0.2 million and decreases net results in the IFRS income statement of
December 31, 2004 by EUR 0.1 million.
Development costs (IAS 38)
Product development costs capitalized for previous fiscal years under FAS are
expensed under shareholders' equity in the opening IFRS balance sheet, since the
IAS 38 recognition criteria were not met. Consequently, this reduces
shareholders' equity by EUR 0.3 million in the opening IFRS balance sheet. 2004
amortization on FAS-compliant capitalized product development costs is recognized
as income for IFRS-compliant figures for 2004.
Cash flow statement
Since there seem to be no major differences between IFRS-compliant and FAS-
compliant cash flow statements, cash flow statements are not presented here.
Done Solutions Corporation
Board of Directors
For further information, please contact:
Pekka Pystynen, President and CEO, tel. +358 (0)205 253 427, gsm +358 (0)50 0508
962, pekka.pystynen@donesolutions.com
Mika Söyring, Controller, tel. + 358 (0)205 253425, gsm 040 777 0033,
mika.soyring@donesolutions.com
http://www.donesolutions.com
Distribution:
Helsinki Stock Exchange
Major media
With its shares quoted on the Helsinki Stock Exchange's NM List since 2001, Done
Solutions is organized into the following three business units: Done Logistics
provides comprehensive logistics systems, based on the automation of materials
handling and the supporting information systems; Providor Logistics specializes
in distribution and warehousing services; Done Information provides multilingual
documentation services. The Group's largest customers are based in the Nordic
countries, Central Europe and the United States.
TABLES:
CONSOLIDATED OPENING BALANCE SHEET, Jan. 1, 2004
MEUR FAS IFRS IFRS
Jan. 1, 2004 adjustments Jan. 1, 2004
ASSETS
NON-CURRENT ASSETS
Tangible assets 0.5 0.1 0.6
Intangible assets 0.3 -0.3 0.1
Goodwill 0.1 0.0 0.1
Available-for sale assets 0.3 0.0 0.3
Long-term receivables 1.1 0.0 1.1
TOTAL NON-CURRENT ASSETS 2.3 -0.1 2.2
CURRENT ASSETS
Inventories 0.1 0.0 0.1
Account and other receivables 3.0 0.0 3.0
Cash and cash equivalents 1.1 0.0 1.1
TOTAL CURRENT ASSETS 4.2 0.0 4.2
TOTAL ASSETS 6.5 -0.1 6.4
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital 7.4 0.0 7.4
Issue premium fund 0.4 0.0 0.4
Contingency fund 0.2 0.0 0.2
Retained earnings/loss -6.9 -0.1 -7.0
Subordinated loans 0.0 -0.0 0.0
TOTAL SHAREHOLDERS' EQUITY 1.1 -0.1 1.0
MINORITY INTEREST 0.0 0.0 0.0
LIABILITIES
LONG-TERM LIABILITIES
Provisions 1.2 -0.2 1.1
Interest-bearing liabilities 1.1 0.0 1.1
TOTAL LONG-TERM LIABILITIES 2.3 -0.1 2.1
SHORT-TERM LIABILITIES
Account and other payables 3.1 0.1 3.2
Interest-bearing liabilities 0.1 0.0 0.1
TOTAL SHORT-TERM LIABILITIES 3.2 0.1 3.3
TOTAL LIABILITIES 5.5 -0.1 5.4
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 6.5 -0.1 6.4
RECONCILIATION OF SHAREHOLDERS' EQUITY, Jan. 1, 2004, March 31, 2004, June 30,
2004, Sept. 30, 2004 and Dec. 31, 2004
MEUR Jan.1 March31 June30 Sept.30 Dec.31
FAS shareholders' equity 1.1 0.6 0.8 0.4 0.9
IFRS 3 Goodwill 0.0 0.1 0.1 0.1 0.2
IFRS 5 Discontinuing operations 0.0 0.0 0.0 0.0 0.0
IAS 17 Leases 0.0 0.0 0.0 0.0 0.0
IAS 23 Interest on subord. loans -0.0 -0.0 -0.0 -0.0 -0.0
IAS 32 Subordinated loans -0.0 -0.0 -0.0 -0.0 -0.8
IAS 37 Provisions 0.2 0.1 0.1 0.1 0.1
IAS 38 Development costs -0.3 -0.1 -0.0 -0.0 0.0
IFRS shareholders' equity 1.0 0.7 1.1 0.6 0.4
RECONCILIATION OF RESULTS, Jan. 1-Dec. 31, 2004
Net profit/loss for the period, under FAS -1.0
IFRS 3 Goodwill 0.2
IFRS 5 Discontinuing operations 0.0
IAS 17 Leases 0.0
IAS 23 Interest on subordinated loans -0.0
IAS 37 Provisions -0.1
IAS 38 Development costs 0.3
Net profit/loss for the period, under IFRS -0.6
INTERIM ACCOUNTS FOR Q1/2004
CONSOLIDATED INCOME STATEMENT, January 1 -March 31, 2004
MEUR FAS IFRS IFRS
Q1/2004 adjustments Q1/2004
NET SALES 5.2 -0.3 4.9
Other operating income 0.0 -0.0 0.0
Materials and services -2.7 0.0 -2.7
Personnel costs -1.9 0.3 -1.6
Depreciation -0.2 0.2 -0.1
Other operating expenses -0.9 0.1 -0.7
Results of discont. operations 0.0 -0.2 -0.2
OPERATING PROFIT/LOSS -0.5 0.2 -0.3
Share of associates' results -0.0 0.0 0.0
Financial income 0.0 0.0 0.0
Financial expenses -0.0 -0.0 -0.0
PROFIT/LOSS BEFORE
EXTRAORDINARY ITEMS -0.5 0.2 -0.3
Extraordinary income 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0
PROFIT/LOSS BEFORE
APPROPRIATIONS AND TAXES -0.5 0.2 -0.3
Income tax charge -0.0 0.0 -0.0
Minority interest 0.0 0.0 0.0
NET PROFIT/LOSS -0.5 0.2 -0.3
CONSOLIDATED BALANCE SHEET, March 31, 2004
MEUR FAS IFRS IFRS
March 31, 2004 adjustments March 31, 2004
ASSETS
NON-CURRENT ASSETS
Tangible assets 0.4 0.1 0.5
Intangible assets 0.2 -0.1 0.0
Goodwill 0.1 0.0 0.1
Available-for-sale assets 0.3 0.0 0.3
Long-term receivables 0.7 0.0 0.7
TOTAL NON-CURRENT ASSETS 1.7 0.0 1.8
CURRENT ASSETS
Inventories 0.1 0.0 0.1
Account and other receivables 3.3 0.0 3.3
Cash and cash equivalents 0.6 0.0 0.6
TOTAL CURRENT ASSETS 4.1 0.0 4.1
TOTAL ASSETS 5.8 0.0 5.8
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital 4.0 0.0 4.0
Issue premium fund 0.4 0.0 0.4
Contingency fund 0.2 0.0 0.2
Retained earnings/loss -3.5 -0.1 -3.5
Net profit/loss -0.5 0.2 -0.3
Subordinated loans 0.0 -0.0 0.0
TOTAL SHAREHOLDERS' EQUITY 0.6 0.1 0.7
MINORITY INTEREST 0.0 0.0 0.0
LIABILITIES
LONG-TERM LIABILITIES
Provisions 1.2 -0.1 1.0
Interest-bearing liabilities 0.0 0.0 0.0
TOTAL LONG-TERM LIABILITIES 1.2 -0.1 1.1
SHORT-TERM LIABILITIES
Account and other payables 2.9 0.1 3.0
Interest-bearing liabilities 1.1 0.0 1.1
TOTAL SHORT-TERM LIABILITIES 4.0 0.1 4.1
TOTAL LIABILITIES 5.2 -0.0 5.1
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 5.8 0.0 5.8
INTERIM ACCOUNTS FOR H1/2004
CONSOLIDATED INCOME STATEMENT, January - June 30, 2004
MEUR FAS IFRS IFRS
H1/2004 adjustments H1/2004
NET SALES 9.9 -0.4 9.5
Other operating income 0.8 -0.7 0.0
Materials and services -5.4 0.0 -5.4
Personnel costs -3.4 0.4 -3.0
Depreciation -0.4 0.3 -0.1
Other operating expenses -1.6 0.2 -1.4
Results of disc. operations 0.0 0.4 0.4
OPERATING PROFIT/LOSS -0.2 0.3 0.1
Share of associates' results -0.1 0.1 0.0
Financial income 0.0 0.0 0.0
Financial expenses -0.0 -0.0 -0.1
PROFIT/LOSS BEFORE
EXTRAORDINARY ITEMS -0.3 0.3 0.1
Extraordinary income 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0
PROFIT/LOSS BEFORE
APPROPRIATIONS AND TAXES -0.3 0.3 0.1
Income tax charge -0.0 0.0 -0.0
Minority interest 0.0 0.0 0.0
NET PROFIT/LOSS -0.3 0.3 0.1
CONSOLIDATED BALANCE SHEET, June 30, 2004
MEUR FAS IFRS IFRS
June 30, 2004 adjustments June 30, 2004
ASSETS
NON-CURRENT ASSETS
Tangible assets 0.4 0.2 0.5
Intangible assets 0.0 -0.0 0.0
Goodwill 0.1 0.1 0.1
Available-for-sale assets 0.3 0.1 0.3
Long-term receivables 0.7 0.0 0.7
TOTAL NON-CURRENT ASSETS 1.5 0.2 1.7
CURRENT ASSETS
Inventories 0.1 0.0 0.1
Account and other receivables 2.8 0.0 2.8
Cash and cash equivalents 1.6 0.0 1.6
TOTAL CURRENT ASSETS 4.5 0.0 4.5
TOTAL ASSETS 5.9 0.2 6.2
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital 4.0 0.0 4.0
Issue premium fund 0.4 0.0 0.4
Contingency fund 0.2 0.0 0.2
Retained earnings/loss -3.5 -0.1 -3.5
Net profit/loss -0.3 0.3 0.1
Subordinated loans 0.0 -0.0 0.0
TOTAL SHAREHOLDERS' EQUITY 0.8 0.2 1.1
MINORITY INTEREST 0.0 0.0 0.0
LIABILITIES
LONG-TERM LIABILITIES
Provisions 1.1 -0.1 1.0
Interest-bearing liabilities 0.0 0.0 0.0
TOTAL LONG-TERM LIABILITIES 1.1 -0.1 1.1
SHORT-TERM LIABILITIES
Account and other payables 2.9 0.1 3.0
Interest-bearing liabilities 1.1 0.0 1.1
TOTAL SHORT-TERM LIABILITIES 3.9 0.1 4.0
TOTAL LIABILITIES 5.1 0.0 5.1
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 5.9 0.2 6.2
INTERIM ACCOUNTS FOR Q1-Q3/2004
CONSOLIDATED INCOME STATEMENT, January 1-September 30, 2004
MEUR FAS IFRS IFRS
Q1-Q3/2004 adjustments Q1-Q3/2004
NET SALES 13.9 -0.4 13.6
Other operating income 0.8 -0.7 0.0
Materials and services -7.8 0.0 -7.8
Personnel costs -4.8 0.4 -4.4
Depreciation -0.5 0.3 -0.2
Other operating expenses -2.2 0.2 -2.0
Results of disc. operations 0.0 0.5 0.5
OPERATING PROFIT/LOSS -0.6 0.3 -0.3
Share of associates' results -0.1 0.1 0.0
Financial income 0.0 0.0 0.0
Financial expenses -0.1 -0.1 -0.1
PROFIT/LOSS BEFORE
EXTRAORDINARY ITEMS -0.7 0.4 -0.4
Extraordinary income 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0
PROFIT/LOSS BEFORE
APPROPRIATIONS AND TAXES -0.7 0.4 -0.4
Income tax charge -0.0 0.0 -0.0
Minority interest 0.0 0.0 0.0
NET PROFIT/LOSS -0.7 0.4 -0.4
CONSOLIDATED BALANCE SHEET, September 30, 2004
MEUR FAS IFRS IFRS
Sept. 30, 2004 adjustments Sept. 30, 2004
ASSETS
NON-CURRENT ASSETS
Tangible assets 0.3 0.1 0.4
Intangible assets 0.0 -0.0 0.0
Goodwill 0.0 0.1 0.1
Available-for-sale assets 0.3 0.1 0.4
Long-term receivables 0.7 0.0 0.7
TOTAL NON-CURRENT ASSETS 1.3 0.3 1.6
CURRENT ASSETS
Inventories 0.1 0.0 0.1
Account and other receivables 3.2 0.0 3.2
Cash and cash equivalents 0.4 0.0 0.4
TOTAL CURRENT ASSETS 3.7 0.0 3.7
TOTAL ASSETS 5.0 0.3 5.3
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital 4.0 0.0 4.0
Issue premium fund 0.4 0.0 0.4
Contingency fund 0.2 0.0 0.2
Retained earnings/loss -3.5 -0.1 -3.5
Net profit/loss -0.7 0.4 -0.4
Subordinated loans 0.0 -0.0 0.0
TOTAL SHAREHOLDERS' EQUITY 0.4 0.2 0.6
MINORITY INTEREST 0.0 0.0 0.0
LIABILITIES
LONG-TERM LIABILITIES
Provisions 1.1 -0.1 1.0
Interest-bearing liabilities 0.0 0.0 0.0
TOTAL LONG-TERM LIABILITIES 1.1 -0.1 1.1
SHORT-TERM LIABILITIES
Account and other payables 2.6 0.1 2.7
Interest-bearing liabilities 0.9 0.0 0.9
TOTAL SHORT-TERM LIABILITIES 3.5 0.1 3.6
TOTAL LIABILITIES 4.7 0.0 4.7
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 5.0 0.3 5.3
FINANCIAL STATEMENTS FOR JAN. 1-DEC. 31, 2004
CONSOLIDATED INCOME STATEMENT, 2004
MEUR FAS IFRS IFRS
2004 adjustments 2004
NET SALES 18.4 -0.4 18.1
Other operating income 0.8 -0.7 0.1
Materials and services -10.2 0.0 -10.1
Personnel costs -6.4 0.4 -6.0
Depreciation -0.6 0.3 -0.3
Other operating expenses -3.0 0.3 -2.8
Results of disc. operations 0.0 0.5 0.5
OPERATING PROFIT/LOSS -0.9 0.3 -0.6
Share of associates' results -0.1 0.1 0.0
Financial income 0.1 0.0 0.1
Financial expenses -0.1 -0.1 -0.1
PROFIT/LOSS BEFORE
EXTRAORDINARY ITEMS -1.0 0.4 -0.6
Extraordinary income 0.0 0.0 0.0
Extraordinary expenses 0.0 0.0 0.0
PROFIT/LOSS BEFORE
APPROPRIATIONS AND TAXES -1.0 0.4 -0.6
Income tax charge -0.0 0.0 -0.0
Minority interest 0.0 0.0 0.0
NET PROFIT/LOSS -1.0 0.4 -0.6
CONSOLIDATED BALANCE SHEET, DEC. 31, 2004
MEUR FAS IFRS IFRS
Dec. 31, 2004 adjustments Dec. 31, 2004
ASSETS
NON-CURRENT ASSETS
Tangible assets 0.3 0.1 0.4
Intangible assets 0.0 0.0 0.0
Goodwill 0.0 0.1 0.1
Available-for-sale assets 0.3 0.1 0.4
Long-term receivables 0.7 0.0 0.7
TOTAL NON-CURRENT ASSETS 1.2 0.3 1.5
CURRENT ASSETS
Inventories 0.1 0.0 0.1
Account and other receivables 2.8 0.0 2.8
Cash and cash equivalents 1.6 0.0 1.6
TOTAL CURRENT ASSETS 4.4 0.0 4.4
TOTAL ASSETS 5.6 0.3 6.0
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital 4.0 0.0 4.0
Issue premium fund 0.4 0.0 0.4
Contingency fund 0.2 0.0 0.2
Retained earnings/loss -3.5 -0.1 -3.5
Net profit/loss -1.0 0.4 -0.6
Subordinated loans 0.8 -0.8 0.0
TOTAL SHAREHOLDERS' EQUITY 0.9 -0.5 0.4
MINORITY INTEREST 0.0 0.0 0.0
LIABILITIES
LONG-TERM LIABILITIES
Provisions 1.3 -0.1 1.2
Interest-bearing liabilities 0.0 0.8 0.8
TOTAL LONG-TERM LIABILITIES 1.3 0.7 2.0
SHORT-TERM LIABILITIES
Account and other payables 3.1 0.1 3.2
Interest-bearing liabilities 0.4 0.0 0.4
TOTAL SHORT-TERM LIABILITIES 3.5 0.1 3.6
TOTAL LIABILITIES 4.8 0.8 5.6
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 5.6 0.3 6.0
GROUP KEY FIGURES AND RATIOS FOR 2004
MEUR FAS IFRS FAS IFRS FAS IFRS FAS IFRS
Q1 Q1 Q1-Q2 Q1-Q2 Q1-Q3 Q1-Q3 Q1-Q4 Q1-Q4
2004 2004 2004 2004 2004 2004 2004 2004
Net sales 5.2 4.9 9.9 9.5 13.9 13.6 18.4 18.1
Oper. profit/loss -0.5 -0.3 -0.2 0.1 -0.6 -0.3 -0.9 -0.6
Operating margin, % -8.8 -5.8 -1.8 1.2 -4.4 -2.2 -5.0 -3.2
Pre-tax profit/loss -0.5 -0.3 -0.3 0.1 -0.7 -0.4 -1.0 -0.6
Pre-tax profit/loss, % -9.5 -6.4 -2.6 0.6 -5.2 -2.7 -5.5 -3.5
Net profit/loss -0.5 -0.3 -0.3 0.1 -0.7 -0.4 -1.0 -0.6
Net profit/loss, % -9.5 -6.4 -2.6 0.6 -5.2 -2.7 -5.5 -3.5
Return on equity, % -182.9 -93.4
Return on investment, % -54.8 -26.9
Liabilities (interest) 1.1 1.1 1.1 1.1 1.0 1.0 1.2 1.2
Gearing, % 82.2 69.7 -61.9 -47.5 180.2 99.2-675.8 -90.5
Equity ratio, % 10.0 11.7 14.3 17.8 7.2 12.4 0.9 6.7
Balance sheet total 5.8 5.8 5.9 6.2 5.0 5.3 5.6 6.0
EPS, cent -1.0 -0.6 -0.5 0.1 -1.5 -0.7 -2.1 -1.3
EPS (diluted), cent -1.0 -0.6 -0.5 0.1 -1.5 -0.7 -2.1 -1.3
Equity per share, cent 1.2 1.4 1.6 2.1 0.7 1.3 0.1 0.7
