- Total revenue increased by 7% to €199.3 million (H1 2009: €187.1 million)
- License sales grew 18% to €29.8 million (H1 2009: €25.3 million)
- EBITDA rose by 23% to €35.4 million (H1 2009: €28.8 million)
- Net profit before goodwill increased by 31% to €13.9 million (H1 2009: €10.6 million)
- Strong increase in operating cash flow (+16%) through effective working capital management: + €55.2 million (H1 2009: + €47.7 million)
- Improved cash position by €61.5 million to €76.2 million (H1 2009: + €14.7 million)
- Net debt position reduced to €62.6million (H1 2009: + €146.8 million
Performance exceeded market levels in UNIT4’s five most important markets, namely Benelux, United Kingdom, Norway, Sweden and Spain. Revenue in the Benelux countries rose by 13% of which 32% was license growth. In Sweden, private sector sales were strong and total revenues grew by 15% including a 23% growth in licenses. Norway also increased revenues by 15% including a strong license performance (+12%) in the public sector and a strong SaaS order intake.
In the UK, total revenues were steady, but license sales were strong and saw a 20% increase. Several large public sector orders were signed including one with Save the Children for € 1.6 million. Total revenues in Spain declined (- 6%) due to a significantly reduced consulting team, but license revenue grew considerably by 35%, including two large health care institution orders (>€ 1 million).
The largest European deal in the first half of the year was a €3 million government sector contract signed in Germany in June, but was booked as subscription (>5 year) and therefore does not directly contribute to earnings. In total, revenues in Germany declined by 4%. More new license sales are expected in the second half of the year. Eastern Europe (Hungary and Czech) reported a 10% increase in license growth while France secured few new license sales.
In North America, revenue stabilised primarily due to the fact that in the first half of 2009 some large contracts were secured. Performance in Asia improved significantly, with a sharp increase in revenue from new license sales. Further organic investment is planned in the region. The largest order secured by the Group in H1 was a landmark deal with the Queensland Government Department of Education and Training in Australia (> € 6 m), which will see UNIT4 play a significant role in the transformation of student management across more than 1250 schools in the coming years.
“Due to excellent organic performance, strong new license sales and strategic acquisitions in 2010, the outlook for the year has been revised and is now improved,” said Edwin van Leeuwen, CFO of UNIT4 N.V.
For a full version of the UNIT4 H1 financial results announcement, please visit http://www.unit4.com/investors/financialinformation/halfyearresults
This document contains certain future expectations about the financial state of affairs and results of the activities of UNIT4 as well as certain related plans and objectives. Such expectations for the future are naturally associated with risks and uncertainties because they relate to future events, and as such depend on certain circumstances that may not arise in future. Various factors can cause real results and developments to deviate considerably from explicitly or implicitly made statements about future expectations. Such factors may for instance be changes in expenditure by companies in important economies, statutory changes and changes in financial markets, in pension costs, in the salary levels of employees, in future exchange and interest rates, in future takeovers or divestitures and the pace of technological developments. UNIT4 therefore cannot guarantee that the expectations will be realized. UNIT4 also refuses to accept any obligation to update statements made in this document.
UNIT4 is a global business software and services company aimed at helping dynamic organizations to embrace change simply, quickly and cost effectively in a market sector it calls ‘Businesses Living IN Change’ (BLINC)™. The Group incorporates a number of the world’s leading change embracing software brands including Agresso Business World and CODA financial management software.
Agresso Business World is our flagship ERP suite for mid-sized services intensive organizations. It is widely acknowledged for delivering ongoing, post-implementation changes without the typical external IT costs and services that cost firms huge sums of money each year. This is achieved thanks to its powerful VITA™ architecture which is unmatched in the ERP world.
CODA Financials is our award-winning suite of best-of-class financial management software designed to integrate with your industry- and company-specific applications. CODA’s LINK™ architecture sets it apart from ordinary accounting systems by providing a financial information backbone for companies with fast-changing and mixed application environments. It is a global accounting solution for mid-to large sized organizations, offering a “no compromise” approach to financial modeling, process control and application choice.
UNIT4 is a top six mid-market ERP software player globally and the 2nd largest European ERP supplier. With offices in 15 European countries, as well as 6 countries across North America, Asia Pacific and Africa and sales activities in several other countries, a revenue of €379.4 million was realized in 2009. UNIT4 is headquartered in Sliedrecht, the Netherlands. The company has 3,456 employees (31 December 2009).
UNIT4 is listed on Euronext Amsterdam by NYSE Euronext and is included in the Amsterdam Smallcap Index (AScX). For more information on UNIT4 or any of its operating companies, please visit the website at www.unit4.com.