P&I Personal & Informatik AG

Transcription

1 Quarterly Report

2 FOREWORD FROM THE CHAIRMAN OF THE BOARD Dear Shareholders, Friends and Partners of P&I, Vasilios Triadis CEO/Vorstandsvorsitzender After a successful previous year, this positive development continued in the first quarter of the new business year, with a sales increase of almost 20 % compared to the same period last year. Licensing sales increased from 1.8 to 2.9 million euro. Consulting sales were maintained at the same high level as last year. Costs only increased by 7 % over the same period, so that an EBIT of 1.7 million euro was achieved. The first quarter of any business year is always very difficult. For this reason, we are proud to have reached our quarterly goals and to have prepared the ground for another successful business year. Among our new projects, we would particularly like to mention the projects with Air Berlin, Amway, Deloitte and Systemdata. Systemdata includes the associations for public physicians (Kassenärztlichen Vereinigungen) within the individual federal states. Among these, those in Schleswig-Holstein, Mecklenburg-Vorpommern, Hamburg, Sachsen-Anhalt, Saarland and Hessen are now users of our software. Deloitte is an application service provider (ASP) in the Netherlands, who, after using LOGA for their customers in the free market economy, has now asked P&I to provide our software solution to its customers in the public administration sector. In product development, the focus is clearly on the completion of LOGA Version 6. This version includes a completely new user interface, adhering very strongly to the Microsoft Office 2003 Style Guide. In addition to many interesting new features included in this new user interface, the most important innovation is the integration of human resource capacity planning. This is based on software from ZHS, service provider for human resource capacity planning, which was taken over on 1st April The integration will be complete. This means that the solution will be integrated in LOGA at all levels data model, application and user interface. This provides redundance-free data management, standardized program directories and a new standardized user interface across all modules. All LOGA data, including human resource capacity planning, are now available for analysis in our report generator Scout.

3 FOREWORD FROM THE CHAIRMAN OF THE BOARD Another essential innovation in Version 6 is the human resource planning and allocation module. This functionality has been developed from scratch on the basis of web technology for the pilot customers Burger King and Klinikum in Ludwigshafen. LOGA Version 6 will be released and presented at the leading German exhibition for the human resources industry, Zukunft Personal, in September in Cologne. The new products will also be presented at our User Conference this year in September in Berlin. An additional focus at the event will be the changes in pay rate law for public administration (TVöD) and the metal and electrical industry (ERA). We have been able to acquire competent experts from the industry as speakers. In the course of our User Conference and the trade exhibition Zukunft Personal taking place in parallel in Cologne, we will present our new marketing concept in public. In addition to new colours and a new logo, the product architecture will change, in order to do justice to future market demands. By bringing in these changes, P&I will position itself more clearly than in the past as partner for integrated software for the human resource industry. Yours faithfully Vasilios Triadis CEO/Chairman of the Board

4 CONSOLIDATED BALANCE SHEET Compiled according to IAS 30 June March 2005 accounting principles not verified verified `000 euro `000 euro Assets Short term assets Cash and cash equivalents 29,745 33,788 Short term investments 0 0 Trade receivables 8,482 8,320 Accounts due from affiliated companies 0 0 Inventories Prepaid expenses and other short term assets ,239 42,791 Long term assets Tangible assets Goodwill 0 0 Customer base 12,000 12,017 Intangible assets 1, Financial assets Deferred taxes ,438 13,515 Total assets 53,677 56,306

5 CONSOLIDATED BALANCE SHEET Compiled according to IAS 30 June March 2005 accounting principles not verified verified `000 euro `000 euro Equity and Liabilities Current liabilities Other liabilities 5,475 5,974 Trade payables 1,257 1,178 Advanced payments received/prap Deferred sales 8,231 12,081 Obligations from taxes income 1,198 1,186 Total short term liabilities 16,957 21,122 Long term liabilities Other long term liabilities Deferred taxes 1,453 1,034 Accruals for pensions 2,525 2,492 Total long term liabilities 4,085 3,650 Shareholder's equity Subscribed capital 7,700 7,700 Capital reserve 18,351 18,351 Revenue reserve Balance sheet profit/loss 6,713 5,640 Other equity Total shareholders's equity 32,635 31,534 Total equity and liabilities 53,677 56,306

6 C ONSOLIDATED S TATEMENT OF I NCOME Consolidated Statement of Income Expressed in `000 euro Sales Cost of sales Gross profit from sales Research and development expenses Sales and distribution expenses Administrative expenses Write down of goodwill Other operating income Other operating expenses Result of ordinary activities (=EBIT) Other income from investments Other financing expenses Currency translation gains Currency translation losses Result of ordinary activities before tax Taxes income Net income/loss for the year acc. to DFVA/ Earnings per share (undiluted/diluted) Average number of shares issued (undiluted) Average number of shares issued (diluted)

7 C ONSOLIDATED S TATEMENT OF I NCOME Quarterly Report Quarterly Report 2005/ / not verified not verified not verified not verified 10,960 9,205 10,960 9,205 3,204 2,991 3,204 2,991 7,756 6,214 7,756 6,214 2,397 2,274 2,397 2,274 1,821 1,946 1,821 1, , , , , SG 1, , ,700,000 7,700,000 7,700,000 7,700,000 7,700,000 7,766,000 7,700,000 7,766,000

8 CONSOLIDATED CASH FLOW STATEMENT Consolidated Cash Flow Statement acc. to IAS accounting principles not verified not verified `000 euro `000 euro Operating result before taxes on income and interest 1, Depreciation on fixed assets Additions to accruals for pensions Depreciation/appreciation on short term investments 0 0 Changes in inventories, trade receivables and other assets Changes in liabilities and other equity and liabilities - 4,923-3,339 Changes in other items not affecting payments Funds received from operating activities ,134 Net funds from operating activities - 2,669-2,616 from investing activities - 1, from financing activities Decrease/increase in liquid resources - 4,043-3,622 Liquid resources at the beginning of the reporting period 33,788 19,618 Liquid resources at the end of the reporting period 29,745 15,966 Breakdown of funds at the end of the fiscal year Cash on hand and in bank balances 15,302 4,254 Available-for-sale securities of the current assets 14,442 11,742 Subtotal 29,745 15,966 Securities with an expiry date > 1 year 0 6,500 Liquidity 29,745 22,496 C HANGE IN S HAREHOLDERS` EQUITY Change in shareholders`equity Three monthly Three monthly Anual financial in `000 Euro financial financial as at statement as at statement as at Shareholders`equity at BOP 31,534 28,221 28,221 Subscribed capital Capital reserves Revenue reserves Other Shareholders`equity Balance sheet results 1, ,381 Shareholders`equity at EOP 32,635 28,459 31,534

9 NOTES INCLUDING SEGMENT REPORTING Orders Orders on hand for the next twelve months, amount to 29.5 million euro as at 30 June Of these, 18 million euro attributable to maintenance business. Cost development Operating costs for the first three months of the current fiscal year 2005/2006 amount to 8.8 million euro compared to 8.2 million euro in the same period for the previous year. This means that costs in the P&I Group increased by 7.1 %, which however is set against a 19.1 % increase in sales. Research & Development In Research and Development, 2.4 million euro have been invested for product improvement, updates for changes in legislation and collective bargaining arrangements as well as new technical developments. Main emphasis of product development is the development of employee and management portals, enabling companies to create more efficient business processes for human resource management using Internet technology, the integration of human resource capacity planning into the LOGA product family and the new LOGA user interface. Investments Fixed investments amounting to 150,000 euro have been made. Acquisitions acquired the ZHS group with headquarters in Wiesbaden from 1st April by notarial contract: acquired all limited shares for ZHS Verwaltungs GmbH & Co. KG. ZHS Verwaltungs GmbH & Co. KG holds all limited shares for ZHS Zeitmanagementsysteme Hard- and Software GmbH & Co. KG, which was created by a change of group on 10th March 2005 from ZHS Zeitmanagementsysteme Hard- und Software GmbH. P&I Beteiligungs GmbH, a 100 % percent subsidiary of P&I Personal & Informatik AG is full partner of both companies. The purchase price was paid in cash. The purchase price for the acquisition can be apportioned as follows: Liquid assets 502 Trade receivables 181 Stock and work-in-progress 169 Tangible fixed assets 18 Other assets 51 Deferred expenses and accrued income 6 Liabilities from accounts payable for supplies -132 Other liabilities -373 Deferred income and accrued expenses -321 Additional value of net capital 101 Established customer value 550 Software Purchase price Cash inventory on take-over -502 Outflow of funds for purchase of company 1.203

10 NOTES INCLUDING SEGMENT REPORTING The recoverability of the balance positions was checked. There are no sleeping reserves or debts. There are no contingency debts. The established customer value acquired will be depreciated over ten years, the software purchased over five years. ZHS Zeitmanagementsysteme Hard- und Software GmbH & Co. KG manufactures, sells and maintains human resource capacity planning software, supplies consultancy and training services in association with this offer, and produces terminals for time recording. The ZHS solution AZEA includes time registration, human resource planning, working time (flexi-time) accounts, company data entry and access control. The acquisition enables P&I to expand its LOGA software to an allround solution for human resource activities until now, the solution contained components for payroll and human resource management. Human resource capacity planning now completes the product portfolio as the third pillar of human resource core processes. Here, P&I is drawing on the consequences of the current trend within companies and administration, that the different areas of human resource management are becoming more closely intertwined. Users are increasingly looking for integrated solutions representing the continuous operative processes within human resource management without interruption. Shareholdings by the company and executive bodies As at 30 June 2005, neither nor any other company have a shareholding in P&I s own shares pursuant to 160 Para. 1 No. 2 AktG (German Companies Act). No convertible bonds or similar securities pursuant to 160 Para. 1 No. 5 AktG had been issued as at 30 June As at June 2005, Members of the Board of Directors or of the Supervisory Board are not holding any P&I shares or stock options. Segment reporting The increase in sales compared to the same period for the previous year amounts to 1.8 million euro, representing a growth of 19,1 %. 3.5% of Group sales were achieved with the new product human resource capacity management. Non-acquisition related sales have increased by 14,8 %. The growth catalyst for the first quarter is the licensing business, with 2.9 million euro sales. This is an increase of 1.2 million euro or 65 % compared to the previous year. The Licensing business sector contributed 27 % of total group sales. Sales development for the PI group continues to be characterized by maintenance income: at 4.5 million euro (comparative period in previous year: 3.9 million), P&I achieves 41 % of its sales from the Maintenance business sector and demonstrates growth as planned. The Consulting/SI business sector is the second strongest sales category. P&I achieves 30 % of its sales, 3.2 million euro, from the Consulting business sector. Four fifth or 9.0 million euro of sales were generated in the payroll accounting area. One fifth of sales were gained through HRMS products (Human Resources Management Systems) and other. One fifth of sales were gained through HRMS products (Human Resources Management Systems) and other.

11 NOTES INCLUDING SEGMENT REPORTING The first three months of 2005/2006 are set out as follows. '000 euro Germany Foreign Group Sales 9,686 1,274 10,960 Result 1, ,624 Employees As at 30 June 2005, P&I employed 276 staff, 239 in Germany and 37 abroad. If part-time jobs are taken proportionally into account, this represents an average FTE (employment quotient) of 254 in the reporting period, with 216 employed in Germany and 38 abroad. Selected facts and figures There has been no change made to the balance and valuation methods since the year-end results on March 31st Outlook P&I has closed the first quarter of the new fiscal year 2005/06 with flying colours and created a good basis for the company s further positive development. The P&I group expects a sales increase of more than 5 %. Company focus continues to be concentrated on an increase in the licensing business, where we are aiming for a sales increase in two figures range and the improvement of the EBIT margin, which should be established above the 10 % margin according to our long-term plans. We can see growth potential coming from the product expansion around the human resource capacity planning components: after the successful take-over and integration of the ZHS group, as leading payroll and HR service provider, P&I offers an integrated software solution including payroll, human resource capacity planning and human resource management systems. The requirements resulting from new payment systems for the metal industry (ERA) and in public administration (TVöD) have been incorporated in the integrated human resource software LOGA. P&I expects new sales from intensifying sales activities in the industrial area with the ERA product and for the construction market segment by incorporating specialized elements of the construction salary system. P&I is investing in the further development of its existing products: LOGA now has a re-worked client interface, which is not only adapted to the look and feel of Windows 2003, but also shows considerable improvements in navigational ease-of-use. The data protection concept is also new. Access rights are regulated by an access right concept based on attributed roles. Improved context menus and intelligent reporting tools will lead the future LOGA user through human resource management processes. Wiesbaden, 11th August 2005 The Board of Directors

12 THE P&I GROUP IN FIGURES Key figures acc. to IAS not verifierd `000 euro not verifierd `000 euro Changes `000 euro Changes Group sales 10,980 9,205 1, % Result before depreciation (EBITDA) 2,438 1,300 1, % Result before interest and taxes (EBIT) 1, , % Consolidated result (DVFA/SG) 1, % Number of Employees (average) % Earnings per share (DVFA/SG) % % H IGHLIGHTS High licensing sales lead to good operative results (EBIT): Results as expected Via a sales increase of 19.1 %, P&I improves on the EBIT result of the same period previous year from 0.4 to 1.6 million euro. LOGA - an all-round solution for human resource management: P&I acquires human resource capacity planner service provider ZHS acquired the ZHS group with headquarters in Wiesbaden from 1st April Human resource capacity planning as third pillar in the human resource management core processes completes the product portfolio. LOGA with new design and extended functionality User interface and navigation completely adapted to Office 2003 Look und Feel. F INANCIAL C ALENDAR 6/7 September 2005 Shareholders' Meeting 2005 in Wiesbaden 10 November 2005 Publication of Half-yearly Report 2005/ February 2006 Publication of 9-Monthly Report 2005/2006 C ONTACT Investor Relations Kreuzberger Ring 56 I D Wiesbaden Phone: I Fax: aktie@pi-ag.com I WKN: I ISIN: DE