24th Oct 2013 07:00
Artilium PLC reports full year results with EUR 1.2m adjusted EBITDA (*)
Artilium PLC ("Artilium" or the "Company") (AIM: ARTA), the AIM quoted telecom software and solutions provider, is pleased to report full year results for the year ended 30 June 2013.
Financial Highlights
· Sales growth from EUR 3.4m to EUR 11.2m
· Adjusted EBITDA (11% of Sales) positive for the 2013 year EUR 1.2m (2012: adjusted EBITDA negative EUR 3.0m)
· Net cash of EUR 2.5m (2012: EUR 0.7m)
Operational Highlights
· Acquisition and integration of United Telecom
· Commercialization of the ARTA Services Delivery Platform ("ARTA Platform")
· Successful contract wins and extensions with tier 1 European Telecoms i.e. Belgacom, BASE and others
Post Period End
· Launch of the cloud services technology
· Continued positive trading
Commenting on the Company's results, Willem van den Brink, CEO:
"It has been a transformational year for Artilium, with a positive outlook based on the successful implementation of its core ARTA Platform among telecom operators and corporations in Europe.
The re-enforcement of customer relations resulting in the KPN commitment for the coming years and the new Belgacom contract for three years have laid the foundation for the current results. Also customer relations were cemented in an improved customer service process yielding improved customer satisfaction. Against the background of the broadening of the general economic crisis, telecom market conditions across Europe have been increasingly difficult. However, Artilium's proven solutions have provided a stable and flexible basis for our customers to grow their businesses. Artilium fills the gap traditional telecom suppliers leave through a fast time-to-market and flexibele services development.
We are confident that we can continue to deliver growth."
The annual report can be viewed on the Artilium website: www.artilium.com
For further information, please contact:
Artilium PLC +32 (0)50230300
Willem Van Den Brink, CEO
NOMAD and broker
finnCap Limited +44 (0)20 7220 0500
Stuart Andrews
Ben Thompson
Joanna Weaving (Broking)
(*) Artilium defines adjusted EBITDA as operating result before depreciation and impairments of property, plant and equipment and client's receivables and amortization and impairments of intangible assets.
The audit opinion on the financial statements for the year ended 30 June 2013 was qualified because the comparative figures included in the financial statements were qualified due to revenue recognition on a long term contract which completed in the year ending 30 June 2012. There is no other reason for the audit report for the year ending 30 June 2013 to be qualified.
Chairman's Statement
The board is very pleased to report the successful turn-around of Artilium. Artilium has effectively focused on its customers by delivering increasingly stable and effective ARTA software platforms.
The board is pleased with the commitment from KPN and the new expansion of the Belgacom services leading to these solid financial results.
Also the integration of United Telecom is well on its way and Artilium has shown to be capable of handling complex operational challenges.
Despite the fact that some customers like Narrowminds discontinued their business and the fact that the location-based services have been delayed due to market conditions, Artilium has produced excellent results.
With the launch of Artilium's Platform-as-a-Service (PaaS) Cloud environment Artilium is well equipped for further growth internationally. This platform opens up new markets and territories for Artilium with a lower barrier to entry and offers its customers new business models like "Pay-As-You-Grow" from the Cloud.
Patrick Morley
Executive Chairman
23 October 2013
Chief Executive's Statement
Artilium PLC, the AIM quoted telecom software and solutions provider, is pleased to report full year results, with a positive outlook based on the successful implementation of its core ARTA Platform among telecom operators and corporations in Europe.
Full year consolidated top line grew from €3.5m to €11.2m with stable gross margins exceeding 70%. Full year adjusted EBITDA grew from a negative €3.0m to a positive €1.2m adjusted EBITDA grew to 11% of sales. Full year free cash-flow turned from a negative €2.2m to a positive €1.9m.
The Company acquired United Telecom NV, a Belgium based wholesaler of telecom solutions in July 2012. United Telecom has a growing customer base in Belgium and full year sales of €5.2m, contributing €300k to the Company's adjusted EBITDA of €1.2m. The outlook of United Telecom's business is positive. Contribution to Group adjusted EBITDA, currently approx. 25%, is expected to increase.
The Company's recurring revenue stream comes from professional services relating to project management and implementation of new services. An increasing proportion (70%) is represented by recurring revenue coming from maintenance and support contracts, including monthly license & subscriber fees.
Artilium reinforced its Belgium customer base with BASE, the high successful and third largest of Belgium's three mobile telecommunications Operators, extending its existing service and maintenance contract by three years. The service and maintenance contract with Belgacom was extended as well by three years in addition to a new licensing agreement for the full functionality of the ARTA Platform.
Artilium also signed a new three year contract with Belgacom.
Technology
The Company successfully developed a Cloud Platform-as-a-Service (which was launched in October 2013) for its ARTA Platform services providing capabilities that can further increase our customers flexibility for their business models. This World-class Solution was jointly developed with Juniper / Infradata NV and supported by Microsoft software. It allows Artilium to offer a premium growth platform to European mobile companies seeking competitive and value added innovations.
Access to the Cloud solution will enable the Company to offer new services to MVNE's and MVNO's end customers in the very fast growth segments such as Platform as a Service (PaaS) along Software as a Service (SaaS) or Infrastructure as a Service (IaaS). The new Cloud service enhances the Company's product mix and puts Artilium in the "high growth" area of the telecom industry.
The reliability of ARTA's software fully meets industry standards. The improvement of the efficiency of the ARTA software gives our customer base access to new business model applications without the necessity of having to put up large initial investments ("Pay-As-You-Grow" model).
The Company employs software engineers in its main Research Centre in Brugge, Belgium. Artilium has been a Microsoft Gold Partner since 2009.
Market Dynamics and outlook
The European mobile industry is maturing. To increase revenues, European network operators have been evolving to target communities/demographics to win market share and to increase revenue per subscriber. Artilium meets these requirements providing modern flexible platforms and content with little capex required. This has been validated by leading mobile networks in the Benelux.
The Company intends to increase its coverage of other European telecom operators and MVNE's and MVNO's. The expansion is expected to be accelerated by the addition of our Cloud services solutions. With the acquisition of United Telecom NV, the Company has expanded its marketing and sales capabilities..
We are confident that we can continue to deliver growth.
Willem Van Den Brink
Chief Executive
23 October 2013
Consolidated Income Statement
Year Ended 30 June 2013
2013 | 2012 | |
Eur'000 | Eur'000 | |
Continuing Operations | ||
Revenue | 11.240 | 3.477 |
Cost of sales | (2.977) | (783) |
Gross profit | 8.263 | 2.694 |
Other operating income | 88 | 16 |
Administrative expenses before exceptionals | (8.371) | (5.971) |
Restructuring costs | (317) | (12) |
Operating loss | (337) | (3.273) |
Finance costs | (69) | (95) |
Loss before tax | (406) | (3.368) |
Tax credit | 171 | 24 |
Loss for the year from continuing operations | (235) | (3.344) |
Basic & diluted loss per share in euro-cents from continuing operations | (0,11) | (2,30) |
Consolidated statement of financial position
As at 30 June 2013
2013 | 2012 | |
Eur'000 | Eur'000 | |
Non-current assets | ||
Goodwill | 13,726 | 13,726 |
Intangible assets | 2,375 | 2,584 |
Property, plant and equipment | 99 | 146 |
Deferred tax assets | 270 | 270 |
16,470 | 16,726 | |
Current assets | ||
Inventories | 27 | 17 |
Trade and other receivables | 2,946 | 2,384 |
Other deposit | 500 | 500 |
Cash and cash equivalents | 2,462 | 683 |
5,935 | 3,584 | |
Total assets | 22,405 | 20,310 |
Non-current liabilities | ||
Deferred tax liabilities | 657 | 828 |
Long term provisions | 16 | 21 |
673 | 849 | |
Current liabilities | ||
Trade and other payables | 7,428 | 6,389 |
Bank loans | 142 | 159 |
Borrowings | - | 1,715 |
Provisions | - | 78 |
7,570 | 8,341 | |
Total liabilities | 8,243 | 9,190 |
Equity attributable to owners of the parent | ||
Share capital | 14,060 | 12,249 |
Share premium account | 46,501 | 45,233 |
Merger relief reserve | 1,488 | 1,488 |
Capital redemption reserve | 6,503 | 6,503 |
Share-based payment reserve | 3,246 | 3,246 |
Translation reserve | (1,819) | (2,017) |
Own shares | (2,336) | (2,336) |
Retained deficit | (53,481) | (53,246) |
Total equity | 14,162 | 11,120 |
Total liabilities and equity | 22,405 | 20,310 |
Consolidated cash flow statement
Year ended 30 June 2013
2013 | 2012 | |
Eur'000 | Eur'000 | |
Net cashflow from operating activities | 2,310 | (2,077) |
Investing activities | ||
Acquisition of subsidiaries of net cash acquired | - | (1,538) |
Purchases of intangible fixed assets | (335) | - |
Purchases of property, plant and equipment | (40) | (17) |
Net cashflow from investing activities | (375) | (1,555) |
Financing activities | ||
Proceeds on issue of shares | 233 | 2,037 |
New borrowings/loans received | 142 | 1,215 |
Interest paid | (72) | (95) |
Borrowings/loans repayment/inflows | (459) | 109 |
Net cashflow from financing activities | (156) | 3,266 |
Net movement in cash and cash equivalents | 1,779 | (366) |
Cash and cash equivalents at beginning of year | 683 | 1,039 |
Effect of foreign exchange rate changes | - | 10 |
Cash and cash equivalents at end of year | 2,462 | 683 |
The annual report can be viewed on the Artilium website: www.artilium.com
Related Shares:
ARTA.L