QPR Software Financial Statements Bulletin 2021


QPR SOFTWARE, STOCK EXCHANGE RELEASE, FEBRUARY 16, 2022 AT 9:30 AM

Net sales at the same level as 2020, operating result decreased, but strategically important SaaS business showed clear growth.

January December 2021

  • SaaS business grew by 19%.
  • Net sales amounted to EUR 9,140 thousand (2020: 8,971) and grew by 2%.
  • EBITDA was EUR 241 thousand (248).
  • Operating result (EBIT) was EUR -1,248 thousand (-936).
  • Result before taxes was EUR -1,356 thousand (-952).
  • Result for the period was EUR -1,356 thousand (-812).
  • Earnings per share was EUR -0.113 (-0.068).
  • Operating result was weakened by write-downs worth EUR 373 thousand made in connection with preparing financial statements.

October December 2021

  • SaaS business grew by 28%.
  • Net sales were EUR 2,054 thousand (2020: 2,341) and decreased by 12%.
  • EBITDA was EUR -430 thousand (27).
  • Operating result (EBIT) was EUR -1,050 thousand (-184).
  • Result before taxes was EUR -1,065 thousand (-191).
  • Result for the quarter was EUR -1,131 thousand (-157).
  • Earnings per share was EUR -0.094 (-0.013).

Business operations

QPR’s purpose is to help customers achieve more with less – to drive process and business transparency, ensure their compliance, and create actionable intelligence for sustainable outcomes. We innovate, develop, and sell software for analyzing, monitoring, and modeling organizations’ operations while adding value to customers’ existing knowledge capital. In addition, we offer our customers a wide range of consulting services.

 

Outlook for 2022

The exceptional circumstances caused by the COVID-19 pandemic continue to affect new customer acquisition in early 2022. However, there are signs of customer decision making normalizing in the procurement of Process Mining software.

Based on the growing number of outstanding offers, recurring customer revenue, and consulting booking levels, QPR expects its net sales to grow in 2022 (2021: EUR 9,140 thousand) supported by strong growth in SaaS revenue.

Due to a one-time software license transaction worth approximately EUR 0.5 million recognized in the first quarter of 2020, we expect the first quarter net sales and results to fall short of the comparison period.

KEY FIGURES            
             
EUR in thousands,
unless otherwise indicated
Oct-Dec,
2021
Oct-Dec,
2020
Change,
%
Jan-Dec,
2021
Jan-Dec,
2020
Change,
%
             
Net sales 2,054 2,341 -12 9,140 8,971 2
EBITDA -430 27 -1 686 241 248 -3
 % of net sales -20.9 1.2   2.6 2.8  
Operating result -1,050 -184 -471 -1,248 -936 -33
 % of net sales -51.1 -7.9   -13.7 -10.4  
Result before tax -1,065 -191 -456 -1,356 -952 -42
Result for the period -1,131 -157 -619 -1,356 -812 -67
 % of net sales -55.0 -6.7   -14.8 -9.0  
             
Earnings per share, EUR
(basic and diluted)
-0.094 -0.013 -619 -0.113 -0.068 -67
Equity per share, EUR 0.035 0.161 -78 0.035 0.161 -78
             
Cash flow from operating
activities
123 120 2 692 334 107
Cash and cash equivalents 441 185 138 441 185 138
Net borrowings 1,682 762 121 1,682 762 121
Gearing, % 288.5 38.0 659 288.5 38.0 659
Equity ratio, % 8.3 34.6 -76 8.3 34.6 -76
Return on equity, % -406.4 -30.3 -1 242 -111.4 -34.1 -227
Return on investment, % -195.9 -24.8 -690 -49.3 -28.0 -76

REPORTING

QPR Software innovates, develops, sells, and delivers software and related services internationally for organizations’ operational development. QPR Software reports one business segment, Organizational Development of organizations. In addition to this, the Company reports revenue from products and services as follows: Software licenses, Renewable software licenses, Software maintenance services, Cloud services, and Consulting.

Recurring revenue reported by the Company consists of Software maintenance services and Cloud services. In addition to these, recurring revenue also includes Renewable software licenses.

Software licenses are sold to customers for perpetual use or for an agreed, limited period. Renewable software licenses are sold to customers as a user right with an indefinite duration. These contracts are automatically renewed at the end of the agreed period, usually one year, unless the agreement is terminated within notice period. Renewable license revenue is recognized at one point in time, in the beginning of the invoicing period.

The geographical areas reported are Finland, the rest of Europe (including Russia and Turkey), and the rest of the world. Net sales are reported according to the location of the customer´s headquarters.

REVIEW BY THE CEO

The Company’s net sales were slightly higher in 2021 when compared to the year before. EBITDA and operating profit fell short of 2020 due to the reassessment of a major project’s revenue recognition in connection with preparing financial statements, as well as write-downs related to the goodwill of Nobultec Oy, acquired in 2011, and the balance sheet value of capitalized product development expenses. As a result, we had to lower our outlook for 2021 on February 14, 2022.

SaaS businesses exhibited clear growth (+19%) in 2021. In the fourth quarter, SaaS revenue grew by 28%. Consulting net sales also developed positively throughout the whole year (+7%). Fourth quarter net sales, EBITDA, and operating profit were lower than in the same quarter the year before due to significant changes in revenue recognition and the write-downs related to goodwill and capitalized product development expenses. The sale of one-time software licenses decreased, which is in line with our new business focus and strategy shifting towards a SaaS subscription model. The preparation for the Company’s growth strategy called for consulting services, which resulted in one-time fees that were higher than the expenses in the fourth quarter of the year before.

Although the negative effects of the COVID-19 pandemic were still felt in software sales, the Company won several SaaS deals, including major process software agreements with an international pharmaceutical company and a European chemical company. In addition, the Company announced during the financial year that Istekki Oy, the Finnish service integrator for health and social services organizations and municipalities, chose QPR as their service provider for the management, modeling, and planning of enterprise architecture and information management. The agreement period is four years and Istekki has estimated the total value of the agreement for the said period to be approximately EUR 1.6 million. The business effects of the agreement are expected to be felt in stages starting from the second quarter of 2022.

In 2021, the Company continued to invest in process mining software development resources, as well as sales resources and sales channels. By developing task mining functionalities and focusing on scalable SaaS solutions, we enable customers to take an activity-based approach to improving and automating their business processes, even in organizations with large amounts of data. Investing in machine learning for predicting process flows opens new business opportunities to generate continuous customer value.

At the end of the financial year on December 28, 2021, the Company announced that it would start company-wide co-operation negotiations in Finland according to the Finnish Co-operation Act. The goal was to change the Company’s organizational structure to be able to execute investment aiming at the Company’s growth and operational scalability more effectively.

The Company announced the end of the negotiations on January 20, 2022. As a result of the negotiations, the organization will start operating based on its new functional structure as of February 1, 2022. The negotiations concerned 81 people and resulted in a decision to terminate the employment of a total of three (3) people and to create eight (8) new positions. The Company estimates that the non-recurring costs related to the restructuring of operations may amount to a maximum of EUR 100,000. The non-recurring costs will be recognized in first quarter results.

In 2021, QPR Software celebrated its 30th anniversary as a pioneer and leader in its industry. The organizational restructuring and the growth strategy aim to significantly strengthen our position in the eyes of our customers both domestically and internationally as a software company that combines scalable SaaS solution with skilled consulting in process modeling and mining.

The Company will announce its new strategy in March 2022. Furthermore, the Company will soon be evaluating opportunities to accelerate its business growth by increasing investments. Digital transformation in both public and private sectors, as well as the internationally growing demand for process mining, provide the Company with a favorable environment for growth.

The Company is aiming for stronger growth and is updating its strategy to reflect new growth targets. The updated strategy and outlook for 2022 will be announced in a separate stock exchange release in March 2022. The Company will apply for authorization at the Annual General Meeting to issue 4.5 million new shares for the implementation of the strategy and for focusing on growth. During the upcoming spring, the Company’s Board of Directors will assess the need for the share issue, which would strengthen the Company’s capital structure for possible growth investments.

Jussi Vasama
Chief Executive Officer

NET SALES DEVELOPMENT     

NET SALES BY PRODUCT GROUP        
             
EUR in thousands Oct-Dec,
2021
Oct-Dec,
2020
Change,
%
Jan-Dec,
2021
Jan-Dec,
2020
Change,
%
             
Software licenses 162 407 -60 1,317 1,344 -2
Renewable software licenses 133 167 -20 797 900 -11
Software maintenance services 507 518 -2 2,034 2,195 -7
Cloud services 334 261 28 1,283 1,081 19
Consulting 919 989 -7 3,709 3,452 7
Total 2,054 2,341 -12 9,140 8,971 2
             
NET SALES BY GEOGRAPHIC AREA        
             
EUR in thousands Oct-Dec,
2021
Oct-Dec,
2020
Change,
%
Jan-Dec,
2021
Jan-Dec,
2020
Change,
%
             
Finland 1,114 1,194 -7 4,614 4,718 -2
Europe incl. Russia and Turkey 693 716 -3 2,689 2,474 9
Rest of the world 247 432 -43 1,837 1,780 3
Total 2,054 2,341 -12 9,140 8,971 2

October December 2021

Fourth quarter net sales decreased by 12% and were EUR 2,054 thousand (2,341).

Net sales from SaaS increased to EUR 334 thousand (261) and grew by 28% year on year. The annual value of SaaS offers to customers increased year on year and is worth almost EUR 3 million.

New software license net sales decreased to EUR 162 thousand (407) and renewable software license net sales to EUR 133 thousand (167).

Consulting net sales, including software deliveries, were EUR 919 thousand (989). The decrease in consulting net sales was caused to a large extent by the reassessment of a major project’s revenue recognition in the fourth quarter, which was performed in connection with preparing financial statements.

Software maintenance net sales were EUR 507 thousand (518).

Net sales in Finland decreased by 7% and international net sales decreased by 4%. 54% (51) of the Group’s net sales derived from Finland, 34% (32) from the rest of Europe (including Russia and Turkey), and 12% (18) from the rest of the world.

January December 2021

Net sales between January and December amounted to EUR 9,140 thousand (8,971) and increased by 2%. Recurring revenue represented 44% of net sales (47).

Net sales in Finland were on the same level as the year before (-2%). International net sales increased by 6%, driven by software sales.

50% (52) of the Group’s net sales derived from Finland, 29% (28) from the rest of Europe (including Russia and Turkey), and 21% (20) from the rest of the world.

FINANCIAL PERFORMANCE

October – December 2021

The Group´s EBITDA was -430 thousand (27) and operating result (EBIT) EUR -1,050 thousand (-184).  The operating result was weaker than the year before due to growth in personnel costs, in 2020 the Company had employees furloughed between October and December. Furthermore, the write-downs made in connection with preparing the financial statements worth EUR 373 thousand weakened the operating result. The Group’s expenses were higher than the year before (20%).

The result for the period was EUR -1,131 thousand (-157). Earnings per share were EUR -0.094 (-0.013).

January – December 2021

The Group´s EBITDA amounted to EUR 241 thousand (248) and operating result (EBIT) to EUR -1,248 thousand (-936). Operating result was weakened by the write-downs related to goodwill and the balanced sheet value of capitalized product development expenses.  The Group’s expenses were higher than the year before (8%).

The Group´s fixed costs for the reporting period were EUR 9,281 thousand (8,585). Credit losses, included in fixed costs, were EUR 129 thousand (100).

The result before taxes was EUR -1,356 thousand (-952) and the result for the period was EUR -1,356 thousand (-812). No tax assets were recognized in the income statement for the financial year. [VT1] Earnings per share were EUR -0.113 (-0.068).

FINANCE AND INVESTMENTS

Between January and December, the cash flow from operating activities amounted to EUR 692 thousand (334). When compared to 2020, the change in the cash flow from operating activities was caused by changes in working capital.

Net financial expenses were EUR 108 thousand (16) and included exchange rate losses of EUR 12 thousand (0). Net financial expenses included a one-off guarantee payment related to a closed project. The payment was made in January 2021.

Investments were EUR 942 thousand (1,210), and mainly related to product development.

The Group´s financial position is fair. Cash and cash equivalents at the end of the reporting period were EUR 441 thousand (185), in addition to which, the Group has access to other short-term financial instruments worth EUR 0.5 million. At the end of the period, the Group had a short-term bank loan of EUR 1,500 thousand, but no long-term interest-bearing bank loans.

The gearing ratio was 288.5% (38). At the end of the reporting period, the equity ratio was 8.3% (35).

PRODUCT DEVELOPMENT

QPR innovates and develops software products that analyze, measure, and model organization’s operations. The Company develops the following software products: QPR ProcessAnalyzer, QPR BusinessPortal, QPR EnterpriseArchitect, QPR ProcessDesigner, and QPR Metrics.

Product development expenses for the financial year 2021 were EUR 2,115 thousand (2,050), which equal 23% (23) of net sales. Product development expenses worth EUR 856 thousand (825) were capitalized, and EUR 731 thousand (733) worth of capitalized product development expenses were amortized. Capitalized product development expenses are amortized over a period of four years.

PERSONNEL

At the end of the financial year, the Group employed a total of 82 persons (88). The average number of personnel during the year 2021 was 79 (86).

The average age of employees was 42.7 (42.3) years. Women account for 25% (20) of employees, and men for 75% (80).  Of all personnel, 19% (18) work in sales and marketing, 42% (44) in consulting and customer care, 31% (29) in product development, and 8% (8) in administration.

For incentive purposes, the Company has a bonus program that covers all employees. Short-term remuneration of the top management consists of salary, fringe benefits, and a possible annual bonus, mainly based on the net sales performance of the Group and business units. Furthermore, in 2019, the Company adopted a key employee stock option plan.

In 2021, the maximum annual bonus for members of the Executive Management Team, including the CEO, was 40% of the annual base salary. A bonus totaling EUR 53 thousand (13) will be paid to the Executive Management Team for 2021.

STRATEGY

We innovate, develop, and sell software and related services for analyzing, monitoring, and modeling organizations’ operations. In addition, we offer customers consulting services for operational improvement and for managing digital transformation and change.

We will further accelerate product development by increasing the number of resources in a controlled manner and by using external partners to enhance the flexibility of our product development capacity. In software development, we place special focus on excellent user experience and the scalability of our product portfolio as part of our SaaS offering. In our product development, we focus on meeting customer challenges, especially in streamlining, improving, and automating key business processes and operations in digitalizing environments. We especially focus on process mining and the related process reporting and automation.

We aim for strong international growth in the next few years, especially in software products offered as SaaS. To achieve this goal, we are investing in international marketing, sales, a scalable product portfolio, and continuous services in selected focus areas of the process mining business.

We are also actively seeking strategic partnerships to strengthen our international software sales as well as product and service development.

The company has prepared a new strategy, which will be announced in a separate release in March. In the same release, the company will present its long-term financial targets.

SHARES AND SHAREHOLDERS      
       
Trading of shares Jan-Dec,
2021
Jan-Dec,
2020
Change,
%
       
Shares traded, pcs 3,323,915 1,403,426 137
Volume, EUR 6,255,379 2,825,365 121
% of shares 27.7 11.7  
Average trading price, EUR 1.88 2.01 -7
       
Shares and market capitalization Dec 31,
2021
Dec 31,
2020
Change,
%
       
Total number of shares, pcs 12,444,863 12,444,863
Treasury shares, pcs 457,009 457,009
Book counter value, EUR 0.11 0.11
Outstanding shares, pcs 11,987,854 11,987,854
Number of shareholders 1,509 1,240 22
Closing price, EUR 1.85 2.24 -17
Market capitalization, EUR 22,177,530 26,852,793 -17
Book counter value of all treasury
shares, EUR
50,271 50,271
Total purchase value of all treasury
shares, EUR
439,307 439,307
Treasury shares, % of all shares 3.7 3.7

GOVERNANCE

In March 2021, QPR’s Board of Directors issued a notice to convene the Annual General Meeting on Thursday March 25, 2021. The Board resolved to organize the meeting with exceptional practices based on the temporary legislation approved by the Finnish Parliament. To prevent the spreading of the COVID-19 pandemic, the Annual General Meeting was held without the shareholders being present. Shareholders were given the possibility to participate and exercise their rights in the meeting by way of proxy representation, and by submitting counterproposals and questions in advance.

The Board’s proposal that no dividend is to be paid for the financial year 2020 was approved at the Annual General Meeting. The Annual General Meeting made an advisory decision on the Remuneration Policy and decided to support the proposed Remuneration Policy.

It was decided at the Annual General Meeting that the Board of Directors will consist of four (4) members and the elected members are Pertti Ervi, Matti Heikkonen, Antti Koskela, and Jukka Tapaninen. The term of office ends at the close of the next Annual General Meeting.  At its organizing meeting, the Board of Directors elected Pertti Ervi as the Chairman of the Board.

Once again, the Authorized Public Accountants, KPMG Oy Ab, were elected at the Annual General Meeting as QPR Software´s auditor with Miika Karkulahti, Authorized Public Accountant, as principal auditor. The auditor’s term of office ends at the close of the next Annual General Meeting.

The Board of Directors were authorized at the Annual General Meeting to decide on the conveyance of the Company’s own shares (share issue) either in one or several occasions. The share issue can be carried out as a share issue against payment or without, as determined by the Board of Directors.

A stock exchange release was issued on March 25, 2021, detailing all authorizations given to the Board of Directors as well as all decisions made at QPR Software Plc’s Annual General Meeting. The release can be found in the investor section of the Company’s website (https://www.qpr.com/investors/stock-exchange-and-press-releases).

Jari Jaakkola announced on May 5, 2021, to the Board of Directors that he will resign as the Company’s Chief Executive Officer. To ensure a smooth transition, the Board and Jaakkola agreed that Jaakkola will continue in office until approximately the beginning of September. On June 24, 2021, the Board of Directors appointed Jussi Vasama as the new Chief Executive Officer of QPR Software Plc. He assumed his position on October 1, 2021. Vasama has a master’s degree in Industrial Engineering and Management with a specialization in the international operations of industrial companies. He has held various global and regional management positions in the software industry since 2012.

 

SHORT-TERM RISKS AND UNCERTAINTIES

QPR’s internal control and risk management aim to ensure that the Company operates efficiently and effectively, distributes reliable information, complies with regulations and operational principles, reaches its strategic goals, reacts to changes in the market and operational environment, and ensures continuity of its business.

The Company has identified the following three groups of risks related to its operations: risks related to business operations (country, customer, personnel, and legal risks), risks related to information and products (QPR products, IPR, and information and security risks) and risks related to financing (currency and short-term cash flow risks). Property, operational, and liability risks are covered by way of insurance.

Financial risks include reasonable credit risk concerning individual business partners, which is characteristic of international business. QPR seeks to limit this risk by continuously monitoring standard payment terms, receivables, and credit limits.

Approximately 75% of the Group’s trade receivables were in euro at the end of the quarter (68). At the end of the quarter, the Company had not hedged its non-euro trade receivables.

Risks and risk management practices related to the Company’s operations are further described in the Annual Report 2020, pages 22-24 (https://www.qpr.com/investors/financialinformation/annualreports).

THE BOARD OF DIRECTORS’ PROPOSAL ON DIVIDEND

At the end of the financial year 2021, the distributable funds of the parent company were EUR -178 thousand. The Board of Directors will propose at the Annual General Meeting that no dividend is to be paid for the financial year 2021.

No material changes have taken place in the Company’s financial position after the end of the financial year.

EVENTS AFTER THE REVIEW PERIOD

At the end of the financial year on December 28, 2021, the Company announced that it would start company-wide co-operation negotiations in Finland according to the Finnish Co-operation Act. The goal was to change the Company’s organizational structure to be able to execute investment aiming at the Company’s growth and operational scalability more effectively.

The Company announced the end of the negotiations on January 20, 2022. As a result of the negotiations, the organization will start operating based on its new functional structure as of February 1, 2022. The negotiations concerned 81 people and resulted in a decision to terminate the employment of a total of three (3) people and to create eight (8) new positions. The Company estimates that the non-recurring costs related to the restructuring of operations may amount to a maximum of EUR 100,000. The non-recurring costs will be recognized in first quarter results.

At the beginning of the year, the Company renegotiated a revolving credit facility (EUR 1.5 million) with Nordea. The agreement was signed in February 2022.

On February 14, 2022, the Company announced a profit warning due to the reassessment of a major project’s revenue recognition in connection with preparing financial statements, as well as write-downs related to the goodwill of Nobultec Oy, acquired in 2011, and the balance sheet value of capitalized product development expenses.

FINANCIAL INFORMATION AND ANNUAL GENERAL MEETING

In 2022, QPR Software Plc will publish its financial information in Finnish and English as follows:

  • Annual Report 2021: Wednesday, March 16, 2022
  • Interim Report January – March 2022: Friday, April 22, 2022
  • Half-year Financial Report January – June 2022: Wednesday, August 3, 2022
  • Interim Report January – September 2022: Friday, October 21, 2022

The Company will publish the invitation to the Annual General Meeting as well as the proposals of the Board of Directors on February 16, 2022. The Annual General Meeting will be held on Wednesday April 6, 2022.  

QPR SOFTWARE PLC

BOARD OF DIRECTORS

Further information:

Jussi Vasama, CEO
Tel. +358 (0) 50 380 9893

Distribution:
NASDAQ OMX Helsinki Ltd
Main Media

Neither this press release nor any copy of it may be taken, transmitted or distributed, directly or indirectly, in or into the United States of America or its territories or possessions.

FINANCIAL STATEMENTS

CONSOLIDATED COMPREHENSIVE INCOME STATEMENT        
               
EUR in thousands, unless
otherwise indicated
Oct-Dec,
2021
Oct-Dec,
2020
Change,
%
Jan-Dec,
2021
Jan-Dec,
2020
Change,
%
 
               
Net sales 2,054 2,341 -12 9,140 8,971 2  
Other operating income 0 0 0 100 -100  
               
Materials and services 224 443 -49 1,106 1,422 -22  
Employee benefit expenses 1,925 1,679 15 6,824 6,649 3  
Other operating expenses 335 193 74 968 753 29  
EBITDA -430 27 -1,686 241 248 -3  
               
Depreciation and amortization 620 211 194 1,489 1,183 26  
Operating result -1,050 -184 -471 -1,248 -936 -33  
               
Financial income and expenses -15 -8 -97 -108 -16 -556  
Result before tax -1,065 -191 -456 -1,356 -952 -42  
               
Income taxes -66 34 -292 0 140 -100  
Result for the period -1,131 -157 -619 -1,356 -812 -67  
               
               
Earnings per share, EUR
(basic and diluted)
-0.094 -0.013 -619 -0.113 -0.068 -67  
               
Consolidated statement of
comprehensive income:
             
 Result for the period -1,131 -157 -619 -1,356 -812 -67  
Other items in comprehensive
income that may be reclassified
subsequently to profit or loss:
             
 Exchange differences on
 translating foreign operations
-1 -1 25 0 -3 109  
Total comprehensive income -1,132 -158 -618 -1,356 -814 -67  

CONDENSED CONSOLIDATED BALANCE SHEET

     
         
EUR in thousands Dec 31,
2021
Dec 31,
2020
Change,
%
 
         
Assets        
         
Non-current assets:        
 Intangible assets 1,711 1,809 -5  
 Goodwill 358 513  
 Tangible assets 319 387 -18  
 Other non-current assets 277 277 0  
Total non-current assets 2,666 3,231 -18  
         
Current assets:        
 Trade and other receivables 2,694 2,901 -7  
 Cash and cash equivalents 441 185 138  
Total current assets 3,135 3,086 2  
         
Total assets 5,800 6,317 -8  
         
Equity and liabilities        
         
Equity:        
 Share capital 1,359 1,359  
 Other funds 21 21  
 Treasury shares -439 -439  
 Translation differences -68 -69 0  
 Invested non-restricted equity fund 5 5  
 Retained earnings -448 881 -151  
Equity attributable to shareholders of
the parent company
430 1,758 -76  
         
Current liabilities:        
 Interest-bearing liabilities 1,682 947 78  
 Advances received 627 527 19  
 Accrued expenses and prepaid income 2,293 2,305 -1  
 Trade and other payables 768 533 44  
Total current liabilities 5,370 4,313 25  
         
Total liabilities 5,370 4,313 25  
         
Total equity and liabilities 5,800 6,317 -8  
 

 

 

 

CONSOLIDATED CONDENCED CASH FLOW STATEMENT

       
             
EUR in thousands Oct-Dec,
2021
Oct-Dec,
2020
Change,
%
Jan-Dec,
2021
Jan-Dec,
2020
Change,
%
             
Cash flow from operating activities:            
 Result for the period -1,131 -157 -619 -1,356 -812 -67
 Adjustments to the result 631 205 207 1,518 1,135 34
 Working capital changes 641 83 677 713 45 1,470
 Interest and other financial
 expenses paid
-14 -6 -113 -164 -40 -307
 Interest and other financial
 income received
1 2 -68 3 27 -90
 Income taxes paid -5 -5 1 -22 -21 -5
Net cash from operating activities 123 120 2 692 334 107
             
Cash flow from investing activities:            
 Purchases of tangible and
 intangible assets
-349 -209 67 -942 -1,098 14
Net cash used in investing activities -349 -209 67 -942 -1,098 14
             
Cash flow from financing activities:            
 Proceeds from short term
 borrowings
500 0 1,500 700 114
 Repayments of short term
 borrowings
-84 -33 151 -991 -761 30
 Dividends paid 0 0 0 0
Net cash used in financing activities 416 -33 1353 509 -61 933
             
Net change in cash and cash
equivalents
190 -121 257 258 -825 131
Cash and cash equivalents
at the beginning of the period
251 317 -21 185 1,035 -82
Effects of exchange rate changes
on cash and cash equivalents
0 -11 0 -2 -25 0
Cash and cash equivalents
at the end of the period
441 185 138 441 185 138
                                   
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY      
               
EUR in thousands Share
capital
Other
funds
Translation
differences
Treasury
shares
Invested non-
restricted
equity fund
Retained
earnings
Total
Equity Jan 1, 2020 1,359 21 -66 -439 5 1,882 2,762
Dividends paid           0 0
Impact of the adoption of new IFRS standards           -245 -245
Stock option scheme           56 56
Comprehensive income     -3     -812 -815
Equity Dec 31, 2020 1,359 21 -69 -439 5 881 1,758
Stock option scheme           26 26
Comprehensive income 0 0 2 0 0 -1,356 -1,354
Equity Dec 31, 2021 1,359 21 -68 -439 5 -449 430

NOTES TO INTERIM FINANCIAL STATEMENTS

ACCOUNTING PRINCIPLES

This report’s tables comply with the requirements of IAS 34 ”Interim Financial Reporting”. Starting from the beginning of 2021, the Group has applied certain new or revised IFRS standards and IFRIC interpretations, as described in the Consolidated Financial Statements 2020. The implementation of these new and revised requirements has not impacted the reported figures. For all other parts, the accounting principles and methods are the same as they were in the 2020 financial statements.

When preparing the consolidated financial statements, management is required to make estimates and assumptions regarding the future and to consider the appropriate application of accounting principles, which means that actual results may differ from estimates.

All amounts presented in this report are consolidated figures, unless otherwise noted. The amounts presented in the report are rounded, therefore, the sum of individual figures may differ from the sum reported. This report is unaudited.

In April 2021, the IFRS Interpretations Committee issued a final agenda decision on the accounting for the costs of configuring or customizing cloud computing arrangements (IAS 38 Intangible Assets). In this agenda decision, the Interpretation Committee considered whether in applying IAS 38, the customer recognizes an intangible asset in relation to configuration or customization of the application software, and if an intangible asset is not recognized, how the customer accounts for the configuration or customization costs. IFRIC agenda decisions do not have an effective date, hence they are expected to be applied as soon as possible. As the Group has cloud computing arrangements in place, it began an analysis of whether this agenda decision has an impact on the accounting policies applied to the costs of implementing cloud arrangements.

INTANGIBLE AND TANGIBLE ASSETS    
     
EUR in thousands Jan-Dec,
2021
Jan-Dec,
2020
     
Increase in intangible assets:    
 Acquisition cost Jan 1 11,987 11,159
 Increase 859 828
     
Increase in tangible assets:    
 Acquisition cost Jan 1 2,622 2,487
 Increase 83 135
     
     
CHANGE IN INTEREST-BEARING LIABILITIES  
     
EUR in thousands Jan-Dec,
2021
Jan-Dec,
2020
     
Interest-bearing liabilities Jan 1 947 784
Proceeds from short term borrowings 1,500 947
Repayments 765 784
Interest-bearing liabilities December 31, 2021 1,682 947
PLEDGES AND COMMITMENTS      
       
EUR in thousands Dec 31,
2021
Dec 31,
2020
Change,
%
       
Business mortgages (held by the Company) 2,386 2,387 0
       
Minimum lease payments based on lease agreements:      
 Maturing in less than one year 23 7 228
 Maturing in 1-5 years 23 7 239
Total 46 14 242
       
Total pledges and commitments 2,432 2,401 1
CONSOLIDATED INCOME STATEMENT BY QUARTER      
             
EUR in thousands Q4
2021
Q3
2021
Q2
2021
Q1
2021
Q4
2020
Q3
2020
             
Net sales 2,054 2,043 2,138 2,904 2,341 1,801
Other operating income 0 0 0 0 0 75
             
Materials and services 224 248 297 337 443 279
Employee benefit expenses 1,925 1,434 1,692 1,772 1,679 1,474
Other operating expenses 335 259 146 228 193 232
EBITDA -430 103 3 566 27 -109
             
Depreciation and amortization 620 311 278 280 211 304
Operating result -1,050 -208 -275 286 -184 -413
             
Financial income and expenses -15 -5 -8 -80 -8 -6
Result before tax -1,065 -213 -283 206 -191 -419
             
Income taxes -66 49 52 -35 34 74
Result for the period -1,131 -165 -231 170 -157 -345
GROUP KEY FIGURES    
     
EUR in thousands, unless
otherwise indicated
Jan-Dec or
Dec 31, 2021
Jan-Dec or
Dec 31, 2020
     
Net sales 9,140 8,971
Net sales growth, % 1.9 -5.7
EBITDA 241 248
 % of net sales 2.6 2.8
Operating result -1,248 -936
 % of net sales -13.7 -10.4
Result before tax -1,356 -952
 % of net sales -14.8 -10.6
Result for the period -1356 -812
 % of net sales -14.8 -9.0
     
Return on equity (per annum), % -111.4 -34.1
Return on investment (per annum), % -49.3 -28.0
Cash and cash equivalents 441 185
Net borrowings 1,682 762
Equity 430 2,004
Gearing, % 288.5 38.0
Equity ratio, % 8.3 34.6
Total balance sheet 5,800 6,317
     
Investments in non-current assets 942 1,210
 % of net sales 10.3 13.5
Product development expenses 2,115 2,050
 % of net sales 23.1 22.9
     
Average number of personnel 80 86
Personnel at the beginning of period 88 83
Personnel at the end of period 80 88
     
Earnings per share, EUR
(basic and diluted)
-0.113 -0.068
Equity per share, EUR 0.035 0.161

QPR Software Oyj



Source link

Comments are closed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy