UK markets closed
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • FTSE 250

    20,910.37
    -287.75 (-1.36%)
     
  • AIM

    1,183.25
    -8.61 (-0.72%)
     
  • GBP/EUR

    1.1532
    +0.0034 (+0.30%)
     
  • GBP/USD

    1.3922
    -0.0091 (-0.65%)
     
  • BTC-GBP

    34,015.99
    -228.01 (-0.67%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • DOW

    30,932.37
    -469.64 (-1.50%)
     
  • CRUDE OIL

    61.66
    -1.87 (-2.94%)
     
  • GOLD FUTURES

    1,733.00
    -42.40 (-2.39%)
     
  • NIKKEI 225

    28,966.01
    -1,202.26 (-3.99%)
     
  • HANG SENG

    28,980.21
    -1,093.96 (-3.64%)
     
  • DAX

    13,786.29
    -93.04 (-0.67%)
     
  • CAC 40

    5,703.22
    -80.67 (-1.39%)
     

QPR Software Financial Statements Bulletin 2020

QPR Software Oyj
·27-min read

QPR SOFTWARE STOCK EXCHANGE RELEASE, FEBRUARY 18, 2021 AT 9:00 AM

Coronavirus had a negative impact on software sales, consulting net sales increased

January – December 2020

  • Net sales amounted to EUR 8,971 thousand (2019: 9,513), down 6%.

  • EBITDA was EUR 248 thousand (1,036).

  • Operating result (EBIT) was EUR -936 thousand (-213).

  • Result before taxes was EUR -952 thousand (-240).

  • Result for the period was EUR -812 thousand (-161).

  • Earnings per share was EUR -0.068 (-0.013).

October – December 2020

  • Net sales amounted to EUR 2,341 thousand (2019: 2,499), down 6%.

  • EBITDA was EUR 27 thousand (199).

  • Operating result (EBIT) was EUR -184 thousand (-123).

  • Result before taxes was EUR -191 thousand (-126).

  • Result for the quarter was EUR -157 thousand (-119).

  • Earnings per share decreased to EUR -0.013 (-0.010).

Business operations

QPR Software´s mission is to make customers agile and efficient in their operations. We innovate, develop, and sell software aimed at analyzing, monitoring, and modeling operations in organizations. Furthermore, we offer customers consulting services.


OUTLOOK

Outlook for 2021

In 2020, the coronavirus pandemic had a negative impact especially on new software sales. Customers postponed new purchases of our software offering due to uncertainties in their own future outlook, as well as due to uncertainties related to operating through remote work and in lock-down circumstances.

The exceptional circumstances caused by the pandemic will continue to have an impact on our business in the first months of this year, but we are already seeing signs of normalization in software purchase decisions. Based on actual sales performance in early 2020 and current sales funnel, QPR expects net sales to grow in 2021 (2020: EUR 8,971 thousand). At the end of 2020, our software sales funnel size increased by well over 20% compared to a time one year ago and before the pandemic. Furthermore, service sales funnel increased even more than software sales funnel.

QPR plans to moderately increase its sales, marketing and product development costs this year. The Company estimates EBITDA and operating result to improve compared to 2020, despite the planned increase in costs.


KEY FIGURES

EUR in thousands,
unless otherwise indicated

Oct-Dec,
2020

Oct-Dec,
2019

Change,
%

Jan-Dec,
2020

Jan-Dec,
2019

Change,
%

Net sales

2,341

2,499

-6

8,971

9,513

-6

EBITDA

27

199

-86

248

1,036

-76

% of net sales

1.2

7.9

2.8

10.9

Operating result

-184

-123

-49

-936

-213

-338

% of net sales

-7.9

-4.9

-10.4

-2.2

Result before tax

-191

-126

-52

-952

-240

-297

Result for the period

-157

-119

-32

-812

-161

-403

% of net sales

-6.7

-4.8

-9.0

-1.7

Earnings per share, EUR
(basic and diluted)

-0.013

-0.010

-32

-0.068

-0.013

-403

Equity per share, EUR

0.161

0.222

-27

0.161

0.222

-27

Cash flow from operating
activities

120

413

-71

334

1,349

-75

Cash and cash equivalents

185

1,035

-82

185

1,035

-82

Net borrowings

762

-251

-404

762

-251

-404

Gearing, %

38.0

-9.1

-519

38.0

-9.1

-519

Equity ratio, %

34.6

44.5

-22

34.6

44.5

-22

Return on equity, %

-30.3

-17.0

-78

-34.1

-5.7

-494

Return on investment, %

-24.8

-13.9

-78

-28.0

-5.9

-376


REPORTING

QPR Software innovates, develops, sells and delivers software and services in international markets aimed at facilitating operational development in organizations. QPR Software reports one operating segment: Operational 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, recurring revenue 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.

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 customer´s headquarter location.


REVIEW BY THE CEO

The coronavirus pandemic created numerous challenges for our business in 2020. Partly we managed these challenges very well, but partly there were negative effects that were reflected in our results. Our personnel, like many other organizations, moved almost fully into remote work in March, and this transition was very smooth. The results of our product development were excellent throughout the year and we have been able to make progress as planned. Moving into remote work was very smooth also in most other parts of our operations. Most of the negative effects arising from the lock-down caused by the pandemic we saw in new sales, which were clearly down from the previous year. Consulting business and agreed software deliveries were, however, much less impacted by the pandemic and consulting net sales actually increased clearly (+13%) from the previous year.

In the autumn we decided to adjust costs to the current challenging market situation and decided to implement temporary part-time lay-offs with most of our personnel in Finland. These measures will reduce our costs during the first months of the year. The top management has taken part into these cost savings, either through temporary salary cuts or part-time lay-offs.

To ensure long term growth, we recruited last year new sales resources to our European key markets United Kingdom and France. We also entered in several new partnerships in process mining software sales. The functionality of the visual reporting tool in QPR ProcessAnalyzer software has been significantly enhanced in recent releases, and we now believe it to be one of the best and most versatile in visual reporting. Also performance in processing large amounts of data has been significantly improved, and the software is now localized in seven languages.

To provide further value to our process modeling customers, we developed a new software tool to support their operations and quality systems. With the help of the new QPR BusinessPortal, our customers can now communicate their processes and quality documentation to their personnel, as well as to get better visibility to their service and application portfolios. QPR BusinessPortal is now on a piloting phase and will be fully launched to the markets this year.

Performance management software QPR Metrics sales increased last year in the Middle East market area, despite the coronavirus pandemic. The excellent sales development in this market was continued in this February, when QPR signed a major agreement with a large central government organization to deliver strategy management solution. The value of the deal is approximately EUR 1.2 million, and we estimate that almost EUR 1 million of the deal value will be booked into net sales over the course of 2021. Based on this major deal, actual sales performance in early 2020 and current sales funnel, we expect net sales to grow in 2021.

I would like to warmly thank all our customers, partners, personnel and shareholders for their valuable contribution and collaboration in 2020.

Jari Jaakkola
CEO


NET SALES DEVELOPMENT

October – December 2020

Net sales in the fourth quarter were EUR 2,341 thousand (2,499) and decreased 6 % compared to the equivalent period in the previous year.

Net sales development was two-folded. Consulting net sales, including software deliveries, increased in Finnish and Middle Eastern markets. However, software net sales decreased when customers postponed new purchases of our software offering due to uncertainties in their own outlook, as well as due to uncertainties related to operating through remote work and in lock-down circumstances.

The longer sales cycles and increased customer requests for proposals in the latter half of 2020 led to a significant increase in sales funnel size. At the end of 2020, our software sales funnel size increased by well over 20% compared to a time one year ago and before the pandemic. Furthermore, service sales funnel increased even more than software sales funnel.

Currency exchange rates had a negative impact on software maintenance net sales, since a significant part maintenance services are invoiced in US dollars. Part of our maintenance customers opted to transfer their services to QPR cloud and are now using our SaaS services.

Net sales decreased 3% in Finland and 10% in international markets, which led Group net sales to decrease by 6%. Of the Group net sales, 51% (49) derived from Finland, 31% (29) from the rest of Europe (including Russia and Turkey) and 18% (22) from the rest of the world.

January – December 2020

Net sales in January – December were EUR 8,971 thousand (9,513), down 6%. Recurring revenue accounted for 47% (52) of net sales.

Consulting net sales, including software deliveries, increased both in Finnish and Middle Eastern markets. However, software net sales decreased when customers postponed new purchases of our software offering due to uncertainties in their own future outlook, as well as due to uncertainties related to operating through remote work and in lock-down circumstances.

In the latter half of 2020 customers started to prepare to post pandemic times by initiating requests for proposals and offers for process development and performance management software. This led to a significant increase in QPR´s software and service sales funnels.

Currency exchange rates had a negative impact on software maintenance net sales, since a significant part maintenance services are invoiced in US dollars. Part of our maintenance customers opted to transfer their services to QPR cloud and are now using our SaaS services. In January – December, our SaaS net sales increased slightly, despite temporary service pauses or discounts that were agreed with some customers that had to cope with the hardest negative impacts from the coronavirus pandemic.

Net sales decreased 3% in Finland and 9% in international markets, which led Group net sales to decrease by 6%. Of the Group net sales, 53% (51) derived from Finland, 28% (31) from the rest of Europe (including Russia and Turkey) and 20% (18) from the rest of the world.


NET SALES BY PRODUCT GROUP

EUR in thousands

Oct-Dec,
2020

Oct-Dec,
2019

Change,
%

Jan-Dec,
2020

Jan-Dec,
2019

Change,
%

Software licenses

407

459

-11

1,344

1,552

-13

Renewable software licenses

167

194

-14

900

1,102

-18

Software maintenance services

518

686

-25

2,195

2,731

-20

Cloud services

261

281

-7

1,081

1,068

1

Consulting

989

879

12

3,452

3,061

13

Total

2,341

2,499

-6

8,971

9,513

-6

NET SALES BY GEOGRAPHIC AREA

EUR in thousands

Oct-Dec,
2020

Oct-Dec,
2019

Change,
%

Jan-Dec,
2020

Jan-Dec,
2019

Change,
%

Finland

1,194

1,225

-3

4,718

4,863

-3

Europe incl. Russia and Turkey

716

716

0

2,474

2,965

-17

Rest of the world

432

557

-23

1,780

1,686

6

Total

2,341

2,499

-6

8,971

9,513

-6


FINANCIAL PERFORMANCE

October – December 2020

The Group´s earnings before interest, tax, depreciation and amortization (EBITDA) were EUR 27 thousand (199) and operating result (EBIT) was EUR -184 thousand (-123). The decrease in operating result was due to a decrease in net sales, as well as outlays in growth business areas.

In the autumn we decided to adjust costs to the current challenging market situation and decided to implement temporary part-time lay-offs with most of our personnel in Finland. The Group´s fixed costs in October-December were EUR 2,083 thousand (2,243) and decreased by 7% from the previous year. Employee benefit expenses were EUR 1,679 thousand (1,743) and 81% (78) of fixed costs.

The Group´s October – December result before tax was EUR -191 thousand (-126) and result for the period was EUR -157 thousand (-119). Earnings per share were EUR -0.013 (-0.010).

January – December 2020

The Group´s EBITDA was EUR 248 thousand (1,036) and operating result (EBIT) amounted to EUR -936 thousand (-213). The decrease in operating result was due to a decrease in net sales, as well as outlays in growth business areas. Strategic investments in growth businesses continued, which increased personnel, sales and marketing costs. To ensure long term growth, QPR recruited last year new sales resources to European key markets United Kingdom and France.

The Group´s fixed costs were EUR 8,585 thousand (8,583) in the reporting period and remained on the same level as in previous year. Employee benefit expenses were EUR 6,649 thousand (6,455) and 77% (75) of fixed costs. Credit losses and credit loss reserves, included in fixed costs, increased slightly and were EUR 100 thousand (76).

Result before taxes was EUR -952 thousand (-240) and result for the period was EUR -812 thousand (-161). Earnings per share (fully diluted) were EUR -0.068 (-0.013).


FINANCE AND INVESTMENTS

Cash flow from operating activities in the reporting period January - December was EUR 334 thousand (1,349). The decrease in cash flow from operating activities was due to lower net sales and increased working capital.

Net financial expenses were EUR 16 thousand (26) and included currency exchange losses of EUR 0 thousand (21).

Investments totaled EUR 1,210 thousand (1,156). Investments were mainly related to product development expenditure. A new subsidiary, QPR Software Limited, was founded in Great Britain.

The Group´s financial position is good. Cash and cash equivalents at the end of the reporting period were EUR 185 thousand (1,035), and in addition the Group has access to EUR 1.3 million other short-term financial instruments. At the end of the period, the Group had a short-term bank loan of EUR 700 thousand and no long-term interest-bearing bank loans.

The gearing ratio was 38% (-9). At the end of the reporting period, the equity ratio was 35% (45).


PRODUCT DEVELOPMENT

QPR innovates and develops software products that analyze, measure and model operations in organizations. The Company develops the following software products: QPR ProcessAnalyzer, QPR Business Portal, QPR EnterpriseArchitect, QPR ProcessDesigner, and QPR Metrics.

QPR decided to start in June a new Digital delivery project that focuses on planning and developing a new digital business model. In this project, we researched new models to fully deliver and deploy on-premise software digitally and remotely. This new digital business model was developed in the Middle Eastern market by creating a strategy monitoring software pilot. The pilot included, among other things, digital workflows and approvals of strategy and performance management measures. Business Finland decided to grant this project EUR 100 thousand direct funding from their Covid-19 related program for business development in disruptive circumstances. The closing report of the project was delivered to Business Finland in December and the funding has been fully paid.

In the reporting period 2020, product development expenses were EUR 2,050 thousand (2,293) and represented 23% of net sales (24). Product development expenses worth EUR 825 thousand (788) were capitalized. The amortization of capitalized product development expenses was EUR 733 thousand (827). The amortization period for capitalized product development expenses is four years.


PERSONNEL

At the end of the reporting period, the Group employed a total of 88 persons (83). The average number of personnel during the reporting period 2020 was 86 (82).

The average age of employees is 42.3 (42.7) years. Women account for 20% (23) of employees, men for 80% (77). 18% (17) work in sales and marketing, 44% (41) in consulting and customer care, 29% (33) in product development, and 8% (10) 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 based mainly on the Group and business unit net sales performance. Furthermore, the Company launched a key employee stock option plan in 2019.

In 2020, 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 13 thousand (5) is paid to the executive management team for 2020.


STRATEGY

Our target is to grow our net sales by an average of 15 – 20% per annum over the next three years. The target is mainly based on growth in international software sales. We foresee significant growth potential especially in the process mining business, where we aim for an annual growth of more than 50%.

We innovate, develop and sell software and related services aimed at analyzing, measuring and modeling operations in organizations. Furthermore, we offer customers consulting services in operational development and digital business optimization.

We will further accelerate product development by increasing our resources in a controlled manner. In software development, we place special focus on excellent user experience. We focus our product development to meet the challenges our client organizations face, especially in leading and developing their operations in a digitalizing world. A special focus area for development is process mining.

In the next few years, we seek growth especially in our international software sales. To reach this target, we will continue to increase our resources and investments in international marketing and sales.

We also actively seek strategic partnerships to strengthen our international software sales and product development.


SHARES AND SHAREHOLDERS

Trading of shares

Jan-Dec,
2020

Jan-Dec,
2019

Change,
%

Shares traded, pcs

1,403,426

1,091,153

29

Volume, EUR

2,825,365

2,229,163

27

% of shares

11.7

9.1

Average trading price, EUR

2.01

2.04

-1

Shares and market capitalization

Dec 31,
2020

Dec 31,
2019

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

1,240

1,146

8

Closing price, EUR

2.24

2.34

-4

Market capitalization, EUR

26,852,793

28,051,578

-4

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

-

In August QPR Software received a notification pursuant to Chapter 9, Section 5 of the Finnish Securities Markets Act (SMA), that Oy Fincorp Ab´s direct holding of the shares and votes in QPR Software has exceeded the threshold of ten (10) percent.

GOVERNANCE

A notice was given in February 2020 to the shareholders of QPR Software Plc that the Annual General Meeting will be held on Tuesday 7 April, 2020 starting at 1:00 p.m. at the Company's headquarters. Due to the coronavirus pandemic, the Board of Directors resolved in March to cancel this meeting and convene the Annual General Meeting at a later stage as soon as it is practically possible to organize the meeting.

In May 2020, the Board of Directors gave a notice to the shareholders of QPR Software Plc that the Annual General Meeting will be held on Monday June 8, 2020. The Board of Directors of the Company resolved on extraordinary measures pursuant to the temporary legislation approved by the Finnish Parliament on April 24, 2020. In order to prevent the spread of the Covid-19 pandemic, the Annual General Meeting was held without shareholders’ presence at the Meeting venue. Participation and exercise of shareholder rights in the Meeting was possible only by way of proxy representation, by submitting counterproposals and asking questions in advance.

The Annual General Meeting held on June 8, 2020 approved the Board's proposal that no dividend be paid for the financial year 2019. The Annual General Meeting made an advisory decision on the Remuneration Policy and decided to support the proposed Remuneration Policy.

The Annual General Meeting resolved that the number of Board Members is four (4) and re-elected Vesa-Pekka Leskinen, Topi Piela, Jarmo Rajala and Salla Vainio as members of the Company´s Board of Directors. The term of office of the members of the Board of Directors expires at the end of the next Annual General Meeting. At its organizing meeting, the Board of Directors elected Vesa-Pekka Leskinen as its Chairman.

The Annual General Meeting elected Authorized Public Accountants KPMG Oy Ab as QPR Software´s auditor with Miika Karkulahti, Authorized Public Accountant, acting as principal auditor. The term of office of the auditor expires at the end of the next Annual General Meeting.

The Annual General Meeting decided to authorize the Board of Directors to decide on an issue of new shares and conveyance of the own shares held by the Company (share issue) either in one or in several occasions. The share issue can be carried out as a share issue against payment or without consideration on terms to be determined by the Board of Directors.

All authorizations of the Board and other decisions made by the Annual General Meeting are available in their entirety on the stock exchange release published by the Company on June 8, 2020 on the investors section of the Company's web site, https://www.qpr.com/investors/stock-exchange-and-press-releases


EVENTS AFTER THE REVIEW PERIOD

In February 2021 QPR signed a major agreement with a large central government organization from the Middle East to deliver strategy management solution. The value of the deal is approximately EUR 1.2 million and it consists of software licenses, software maintenance and implementation services. QPR estimates that almost EUR 1 million of the deal value will be booked into net sales over the course of 2021.

SHORT-TERM RISKS AND UNCERTAINTIES

Internal control and risk management at QPR Software aims 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 the continuity of its business.

QPR has identified the following three groups of risks related to its operations: risks related to business operations (country, customer, personnel, legal), risks related to information and products (QPR products, IPR, data security) and risks related to financing (foreign currency, short-term cash flow). The Company has an insurance policy covering property, operational and liability risks.

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

Approximately 68% of Group’s trade receivables were in euro at the end of the reporting period (56). At the end of the quarter, the Company had not hedged its non-euro trade receivables.

Risks and risk management related to the Company’s business are further described in the Annual Report 2019, pages 24-25 (https://www.qpr.com/investors/financial-information/annual-reports).


THE BOARD OF DIRECTORS’ PROPOSAL ON DIVIDEND

The distributable funds of the parent company were EUR 572 thousand on December 31, 2020. The Board of Directors will propose to the Annual General Meeting that no dividend be paid for the financial year 2020.

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


FINANCIAL INFORMATION AND ANNUAL GENERAL MEETING

In 2021, QPR Software Plc will publish its financial information, in Finnish and English, as follows:

Notice to the Annual General Meeting and proposals of the Board of Directors will be published on March 4, 2021. Annual General Meeting will be held on Thursday March 25, 2021.


QPR SOFTWARE PLC
BOARD OF DIRECTORS

Further information:

Jari Jaakkola, CEO, Tel. +358 (0) 40 5026 397

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,
2020

Oct-Dec,
2019

Change,
%

Jan-Dec,
2020

Jan-Dec,
2019

Change,
%

Net sales

2,341

2,499

-6

8,971

9,513

-6

Other operating income

-

-

100

0

Materials and services

443

379

17

1,422

1,143

24

Employee benefit expenses

1,679

1,743

-4

6,649

6,455

3

Other operating expenses

193

178

8

753

878

-14

EBITDA

27

199

-86

248

1,036

-76

Depreciation and amortization

211

322

-34

1,183

1,250

-5

Operating result

-184

-123

-49

-936

-213

-338

Financial income and expenses

-8

-3

151

-16

-26

37

Result before tax

-191

-126

-52

-952

-240

-297

Income taxes

34

7

383

140

78

80

Result for the period

-157

-119

-32

-812

-161

-403

Earnings per share, EUR
(basic and diluted)

-0.013

-0.010

-32

-0.068

-0.013

-403

Consolidated statement of
comprehensive income:

Result for the period

-157

-119

-32

-812

-161

-403

Other items in comprehensive
income that may be reclassified
subsequently to profit or loss:

Exchange differences on
translating foreign operations

-1

-1

-48

-3

-5

-60

Total comprehensive income

-158

-121

-31

-814

-166

-389


CONDENSED CONSOLIDATED BALANCE SHEET

EUR in thousands

Dec 31,
2020

Dec 31,
2019

Change,
%

Assets

Non-current assets:

Intangible assets

2,054

2,044

1

Goodwill

513

513

0

Tangible assets

387

371

4

Other non-current assets

277

141

97

Total non-current assets

3,231

3,068

5

Current assets:

Trade and other receivables

2,901

2,904

0

Cash and cash equivalents

185

1,035

-82

Total current assets

3,086

3,939

-22

Total assets

6,317

7,007

-10

Equity and liabilities

Equity:

Share capital

1,359

1,359

0

Other funds

21

21

0

Treasury shares

-439

-439

0

Translation differences

-69

-66

4

Invested non-restricted equity fund

5

5

0

Retained earnings

1,126

1,882

-40

Equity attributable to shareholders of
the parent company

2,004

2,762

-27

Current liabilities:

Interest-bearing liabilities

947

784

21

Advances received

527

800

-34

Accrued expenses and prepaid income

2,305

2,083

11

Trade and other payables

533

579

-8

Total current liabilities

4,313

4,245

2

Total liabilities

4,313

4,245

2

Total equity and liabilities

6,317

7,007

-10

CONSOLIDATED CONDENCED CASH FLOW STATEMENT

EUR in thousands

Oct-Dec,
2020

Oct-Dec,
2019

Change,
%

Jan-Dec,
2020

Jan-Dec,
2019

Change,
%

Cash flow from operating activities:

Result for the period

-157

-119

-32

-812

-161

-403

Adjustments to the result

205

372

-45

1,135

1,250

-9

Working capital changes

83

133

-38

45

306

-85

Interest and other financial
expenses paid

-6

-9

28

-40

-51

21

Interest and other financial
income received

2

6

-72

27

25

-7

Income taxes paid

-5

29

-118

-21

-18

-16

Net cash from operating activities

120

413

-71

334

1,349

-75

Cash flow from investing activities:

Purchases of tangible and
intangible assets

-209

-278

-25

-1,098

-1,041

5

Net cash used in investing activities

-209

-278

-25

-1,098

-1,041

5

Cash flow from financing activities:

Proceeds from short term
borrowings

-

500

700

500

40

Repayments of short term
borrowings

-33

-70

-53

-761

-278

174

Dividends paid

-

0

0

0

Net cash used in financing activities

-33

430

-108

-61

222

-128

Net change in cash and cash
equivalents

-121

564

-122

-825

530

-256

Cash and cash equivalents
at the beginning of the period

317

470

-33

1,035

505

105

Effects of exchange rate changes
on cash and cash equivalents

-11

0

-

-25

0

-

Cash and cash equivalents
at the end of the period

185

1,035

-82

185

1,035

-82


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, 2019

1,359

21

-61

-439

5

1,987

2,873

Dividends paid

0

0

Stock option scheme

56

56

Comprehensive income

-5

-161

-166

Equity Dec 31, 2019

1,359

21

-66

-439

5

1,882

2,762

Stock option scheme

56

56

Comprehensive income

-3

-812

-814

Equity Dec 31, 2020

1,359

21

-69

-439

5

1,126

2,004

NOTES TO INTERIM FINANCIAL STATEMENTS

ACCOUNTING PRINCIPLES

This report complies with requirements of IAS 34 ”Interim Financial Reporting”. Starting from the beginning of 2020, the Group has applied certain new or revised IFRS standards and IFRIC interpretations, as described in the Consolidated Financial Statements 2019. 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 2019 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 those estimated.

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

Definitions for key indicators can be found in the end of the latest annual report, on pages 64-65: https://www.qpr.com/investors/financial-information/annual-reports


INTANGIBLE AND TANGIBLE ASSETS

EUR in thousands

Jan-Dec,
2020

Jan-Dec,
2019

Increase in intangible assets:

Acquisition cost Jan 1

11,159

10,057

Increase

828

1,102

Increase in tangible assets:

Acquisition cost Jan 1

2,487

2,433

Increase

135

54


CHANGE IN INTEREST-BEARING LIABILITIES

EUR in thousands

Jan-Dec,
2020

Jan-Dec,
2019

Interest-bearing liabilities Jan 1

784

562

Proceeds from short term borrowings

947

500

Repayments

784

278

Interest-bearing liabilities Sep 30

947

784


PLEDGES AND COMMITMENTS

EUR in thousands

Dec 31,
2020

Dec 31,
2019

Change,
%

Business mortgages (held by the Company)

2,387

1,385

72

Minimum lease payments based on lease agreements:

Maturing in less than one year

7

17

-58

Maturing in 1-5 years

7

0

-

Total

14

17

-20

Total pledges and commitments

2,401

1,402

71


CONSOLIDATED INCOME STATEMENT BY QUARTER

EUR in thousands

Q4
2020

Q3
2020

Q2
2020

Q1
2020

Q4
2019

Q3
2019

Net sales

2,341

1,801

2,041

2,789

2,499

1,981

Other operating income

-

75

25

-

0

-

Materials and services

443

279

260

440

379

243

Employee benefit expenses

1,679

1,474

1,757

1,739

1,743

1,375

Other operating expenses

193

232

109

220

178

175

EBITDA

27

-109

-60

390

199

188

Depreciation and amortization

211

304

324

345

322

307

Operating result

-184

-413

-384

45

-123

-119

Financial income and expenses

-8

-6

6

-9

-3

3

Result before tax

-191

-419

-378

36

-126

-116

Income taxes

34

74

57

-25

7

31

Result for the period

-157

-345

-321

11

-119

-85

GROUP KEY FIGURES

EUR in thousands, unless
otherwise indicated

Jan-Dec or
Dec 31, 2020

Jan-Dec or
Dec 31, 2019

Net sales

8,971

9,513

Net sales growth, %

-5.7

-4.9

EBITDA

248

1,036

% of net sales

2.8

10.9

Operating result

-936

-213

% of net sales

-10.4

-2.2

Result before tax

-952

-240

% of net sales

-10.6

-2.5

Result for the period

-812

-161

% of net sales

-9.0

-1.7

Return on equity (per annum), %

-34.1

-5.7

Return on investment (per annum), %

-28.0

-5.9

Cash and cash equivalents

185

1,035

Net borrowings

762

-251

Equity

2,004

2,762

Gearing, %

38.0

-9.1

Equity ratio, %

34.6

44.5

Total balance sheet

6,317

7,007

Investments in non-current assets

1,210

1,156

% of net sales

13.5

12.2

Product development expenses

2,050

2,293

% of net sales

22.9

24.1

Average number of personnel

86

82

Personnel at the beginning of period

83

84

Personnel at the end of period

88

83

Earnings per share, EUR
(basic and diluted)

-0.068

-0.013

Equity per share, EUR

0.161

0.222