Release no. 13/2014
In accordance with the regulations for listed companies’ submission of interim statements, Columbus A/S hereby submits the interim management statement for the period 01.01.2014-31.03.2014 (3 months).
Revenues in Q1 amounted to DKK 207.5m (2013: DKK 203.3), corresponding to an increase of 2%. Adjusted for foreign currency translation revenues increased by 6%. EBITDA1 amounted to DKK 12.8m (2013: DKK 7.6m), corresponding to an increase of 69%.
Growth in all industry solutions
Columbus continues the focus on sale of industry solutions. Revenues from Columbus’ key industries increased to 75% of total revenues. There was a solid increase in sale of all three industry solutions. Industry focus strengthens Columbus’ ability to deliver more value to customers, strengthens our competitive advantage and contributes to improved earnings from sale of own software and in our consultancy business.
Development in revenues
Revenues from consultancy increased by 11%, which is mainly caused by an increase in invoiceable work from 55% to 58%. Revenues from external software licenses have declined by 33%. The main reason for this is that our main supplier, Microsoft, is changing their sales model. The most significant change in the sales model is that Columbus is not responsible for invoicing and does not carry the debtor risk. Instead Columbus receives a sales commission. Moreover, the sales commission is earned over three years instead of one. This development is expected. Columbus considers this development a possibility to increase the sale of consultancy services and own software, as the total initial investment in business systems for customers becomes smaller.
| DKK ´000 | Q1 2014 | Q1 2013 | 2013 |
| Columbus Software licenses | 3,708 | 3,707 | 31,052 |
| Columbus Software subscriptions | 6,805 | 5,402 | 29,102 |
| External software licenses | 12,491 | 18,700 | 88,270 |
| External software subscriptions | 22,521 | 29,234 | 140,258 |
| Consultancy | 157,295 | 140,938 | 567,614 |
| Other | 4,645 | 5,335 | 23,509 |
| Net revenues | 207,465 | 203,316 | 879,805 |
| EBITDA before share-based compensation | 12,825 | 7,580 | 72,084 |
| Share-based compensation | -644 | -168 | -1,960 |
| EBITDA | 12,181 | 7,412 | 70,124 |
Columbus Software increased by 15% YTD
In total, revenues from Columbus Software licenses and subscriptions increased by DKK 1.4m in Q1, corresponding to an increase of 15% compared to the same period last year. The increase mainly relates to Columbus subscriptions, which is recurring revenue.
Invoiceable work increased from 55% to 58%
The sale of consultancy services increased by 11% in Q1. At the same time the productivity in the consultancy business increased, and consequently invoiceable hours increased from 55% to 58%. The development is satisfactory and is the primary reason for the considerable increase in EBITDA.
Continued optimization in the Columbus Global Delivery Center
The optimization of Columbus’ Global Delivery Center in India continues. In Q1 the Global Delivery Center has delivered 1,344 days of customer support and implementations, corresponding to an increase of 39% compared to Q1 2013.
Acquisition of consultancy
At the end of January Columbus acquired the consultancy Omnica, a leading retail and e-commerce company based in the UK. The acquisition is a strategic move in line with Columbus’ ambition to further strengthen its global position as an innovative consultancy to the retail industry.
Since Omnica was founded in 2007, the company has consistently increased its market share within e-commerce and multichannel retail business and showed a continuous growth in revenues and profit.
The integrationen of Omnica into the existing UK subsidiary is progressing according to the plan.
Expectations to revenues and EBITDA are being maintained
The announced expectations to 2014 are being maintained, and thus Columbus expects revenues in the level of DKK 900m and an EBITDA* in the level of DKK 80m.
Latest developments
No events or transactions with a material effect on the company’s financial position have occurred since the balance sheet date.
Ib Kunøe Thomas Honoré
Chairman CEO
Columbus A/S Columbus A/S
For further information, please contact:
CEO Thomas Honoré, T: +45 70 20 50 00.
Translation: In the event of any inconsistency between this document and the Danish language version, the Danish language version shall be the governing version.
Income statement
| Group | |||
| DKK ´000 | Q1 2014 | Q1 2013 | 2013 |
| Net revenues | 207,465 | 203,316 | 879,805 |
| External project costs | -41,000 | -47,152 | -216,278 |
| Gross earnings | 166,465 | 156,164 | 663,527 |
| Staff expenses before share-based compensation | -124,754 | -118,947 | -476,207 |
| Other external costs | -28,884 | -29,884 | -116,145 |
| Other operating income | 0 | 248 | 914 |
| Other operating costs | -2 | -1 | -5 |
| EBITDA before share-based payment | 12,825 | 7,580 | 72,084 |
| Share-based compensation | -644 | -168 | -1,960 |
| EBITDA | 12,181 | 7,412 | 70,124 |
| Depreciation | -5,744 | -6,396 | -25,352 |
| Earnings before write down of goodwill (EBITA) | 6,437 | 1,016 | 44,772 |
| Write down of goodwill | 0 | 0 | 0 |
| Operating profit (EBIT) | 6,437 | 1,016 | 44,772 |
| Results in associated companies | 0 | 461 | -4,109 |
| Financial income | 722 | 69 | 190 |
| Financial expense | -337 | -795 | -4,123 |
| Pre-tax earnings, continuing operations | 6,822 | 751 | 36,730 |
Balance sheet
| Group balance sheet | |||
| DKK ´000 | Q1 2014 | Q1 2013 | 2013 |
| ASSETS | |||
| Goodwill | 183,821 | 172,177 | 167,705 |
| Other intangible assets | 3,023 | 2,796 | 1,446 |
| Development projects finalized | 39,236 | 45,041 | 43,288 |
| Development projects in progress | 8,387 | 4,964 | 3,593 |
| Intangible assets | 234,467 | 224,978 | 216,032 |
| Leasehold improvement | 188 | 858 | 781 |
| Plant and operating equipment | 8,951 | 9,856 | 8,873 |
| Tangible assets | 9,139 | 10,714 | 9,654 |
| Deferred tax assets | 19,429 | 21,062 | 19,418 |
| Total long-term assets | 263,035 | 256,754 | 245,104 |
| Inventories | 219 | 303 | 40 |
| Trade receivables | 136,231 | 133,089 | 138,929 |
| Contract work in progress | 10,766 | 32,981 | 9,471 |
| Corporation tax | 40 | 1,160 | 40 |
| Other receivables | 4,624 | 11,867 | 5,232 |
| Prepayments | 13,598 | 14,776 | 9,478 |
| Receivables | 165,259 | 193,873 | 163,150 |
| Cash | 60,168 | 36,162 | 75,410 |
| Total short-term assets | 225,646 | 230,338 | 238,600 |
| TOTAL ASSETS | 488,681 | 487,092 | 483,704 |
Balance sheet
| Group balance sheet | |||
| DKK ´000 | Q1 2014 | Q1 2013 | 2013 |
| LIABILITIES | |||
| Share capital | 132,793 | 132,174 | 132,793 |
| Reserves on foreign currency translation | -10,018 | -6,191 | -10,680 |
| Retained profit | 150,485 | 147,397 | 144,940 |
| Proposed dividends | 13,279 | 0 | 13,279 |
| Group shareholders equity | 286,539 | 273,380 | 280,332 |
| Minority interests | 4,278 | 8,006 | 3,646 |
| Equity | 290,817 | 281,386 | 283,978 |
| Deferred tax | 330 | 91 | 74 |
| Provisions | 6,461 | 507 | 121 |
| Debt to credit institutions | 5 | 21 | 6 |
| Other debt | 1,270 | 1,270 | 1,270 |
| Long-term debt | 8,066 | 1,889 | 1,471 |
| Credit institutions | 6,340 | 15,721 | 2,385 |
| Client prepayments | 22,393 | 18,924 | 14,946 |
| Trade accounts payable | 28,064 | 41,374 | 52,694 |
| Corporation tax | 4,855 | 5,638 | 5,235 |
| Other debt | 106,644 | 106,648 | 103,704 |
| Accruals | 21,502 | 15,512 | 19,291 |
| Short-term debt | 189,798 | 203,817 | 198,255 |
| Total debt | 197,864 | 205,706 | 199,726 |
| TOTAL LIABILITIES | 488,681 | 487,092 | 483,704 |
| Segment data | ||||||
| In order to support decisions about allocation of resources and assessment of performance of the segments, the Group’s internal reporting to the Board of Directors of the Parent Company is based on the following grouping of operating segments: | ||||||
| Strategic business areas | Description | Geographical segment | ||||
| ISV (Independent Software Vendor) | Development and sale of industry specific software within Columbus' three focus industries: Retail, food and manufacturing. | No specific area | ||||
| Consultancy | Sale and implementation of standard business systems. | Western Europe Eastern Europe North America | ||||
| Information about the Group’s segment is stated below. | ||||||
| Consultancy | ||||||
| DKK ´000 | ISV | Western Europe | Eastern Europe | North America | Parent company/ Eliminations | Total |
| Q1 2014 | ||||||
| Columbus Software licenses | 2,759 | 969 | 529 | 466 | -1,015 | 3,708 |
| Columbus Software subscriptions | 5,975 | 1,662 | 210 | 829 | -1,871 | 6,805 |
| External software licenses | 0 | 7,110 | 2,548 | 3,023 | -190 | 12,491 |
| External software subscriptions | 115 | 9,316 | 4,312 | 8,777 | 1 | 22,521 |
| Consultancy | 3,010 | 108,801 | 25,995 | 25,699 | -6,210 | 157,295 |
| Other | 157 | 3,104 | 484 | 839 | 61 | 4,645 |
| Net revenues | 12,016 | 130,962 | 34,078 | 39,633 | -9,224 | 207,465 |
| Gross earnings | 10,823 | 102,719 | 26,679 | 27,579 | -1,335 | 166,465 |
| EBITDA | 4,084 | 12,943 | 1,991 | 1,137 | -7,974 | 12,181 |
| Konsulentforretning | ||||||
| DKK ´000 | ISV | Western Europe | Eastern Europe | North America | Parent company/ Eliminations | Total |
| Q1 2013 | ||||||
| Columbus Software licenses | 2,277 | 988 | 936 | 356 | -850 | 3,707 |
| Columbus Software subscriptions | 4,686 | 1,003 | 216 | 734 | -1,237 | 5,402 |
| External software licenses | 19 | 4,397 | 10,312 | 3,972 | 0 | 18,700 |
| External software subscriptions | 299 | 12,928 | 7,485 | 8,522 | 0 | 29,234 |
| Consultancy | 3,365 | 88,081 | 22,945 | 31,970 | -5,423 | 140,938 |
| Other | 148 | 2,991 | 795 | 1,250 | 151 | 5,335 |
| Net revenues | 10,794 | 110,388 | 42,689 | 46,804 | -7,359 | 203,316 |
| Gross earnings | 9,965 | 85,522 | 27,002 | 34,197 | -522 | 156,164 |
| EBITDA | 3,626 | 5,158 | 2,695 | 5,090 | -9,157 | 7,412 |
* EBITDA before share-based compensation
