Emakina Group: Slight Sales Growth Despite Difficult Economic Situation
Poster: SySAdmin
Posted on March 19, 2010 at 11:35:01 AM
Emakina Group: Slight Sales Growth Despite Difficult Economic Situation
BRUSSELS, March 19, 2010-- Emakina Group (Alternext Brussels: ALEMK) today communicates
its consolidated results for the year 2009. Sales continued to grow by
1%.Group EBITDA improved significantly during the second semester 2009,
reaching 10.6% of sales compared to 3.6% for the first semester of 2009 and
9.7% for the second semester of 2008.
During 2009, Emakina Group sales totaled 31 782 957 EUR
compared to 31 484 834 EUR during the previous year, representing an increase
of 1%, but at a level lower than expected, due to the economic downturn.
EBITDA amounted to 2 328 409 EUR in 2009 (or 7.3% of sales) compared to 2 686
862 EUR (or 8.5% of sales) in the prior year. As a reminder, EBITDA at June
30 2009 amounted to 530 137 EUR, which means and EBITDA of 1 798 272 EUR for
the second half of the year compared to 1 709 556 EUR for the second half of
2008. This improvement is the result of various measures announced in the
half yearly 2009 report.
The recurring result for 2009 amounted to 225 717 EUR compared
to 854 636 EUR in 2008, mainly due to the evolution of EBIT and due to the
decrease of the financial result by 104 245 EUR.
Net profit before tax fell from 900 554 EUR in 2008 to 31 632
EUR in 2009 due to the evolution of the recurring result combined with
non-recurring charges of 225 061 EUR.
The deferred tax impact (related to the capitalization of tax
losses carried forward) fell from an income of 281 917 EUR to a charge of
-457 EUR in 2009 while tax charges fell from 792 196 EUR to 412 075 EUR
respectively.
Net result (before amortization of goodwill) amounted to 608
117 EUR in 2009 compared to 1 281 275 EUR in 2008.
For the second time in its history, the Board of Directors of
Emakina Group will propose to the Shareholders' Meeting on April 22, 2010, a
total gross dividend of 250 000 EUR, amounting to a gross (net) dividend per
share of 0.07150 EUR (0.06077 EUR).
Several elements influenced the 2009 annual results:
The economic crisis had an indirect effect on Emakina mainly
during the first semester of 2009, in particular due to customers in the
financial, automobile and air transport sectors.
Moreover, the sales process became lengthier and required
increased commercial efforts. -
- The legally required indexation of salaries on January 1,
2009 weighed on margins in Belgium.
- Despite the economic downturn, sales continued to increase
for the 5th consecutive year, in particular due to the synergies
developed between Emakina Group subsidiaries, to attract new
international clients. Emakina Belgium and Emakina.NL thus worked
jointly to create Yunomi, an online women's community developed for the
Benelux area by Unilever. Similarly, Emakina Belgium and Emakina.EU, a
new agency specialized in European and International Institutions,
partnered in October 2009, to obtain an important framework contract
with the European Commission (Directorate General for Health and
Consumers) in the field of audiovisual services and media training.
Emakina Group's management took the following measures to
support growth and reinforce margins:
- Increased use of reporting tools developed from the existing
integrated ERPs to optimize project management and track their
profitability.
- Emakina Group faces numerous opportunities that have arisen
from the technological changes that were speeded up by the current
economic situation. The media and advertising world was particularly
shaken in 2009. In this context, Emakina Group wants to be a major
actor, striving to help its clients to take advantage of these changes.
- At 2009 end, Emakina concluded a commercial partnership with
the German group Pixelpark AG, thus creating the means to respond on a
pan-european scale to the needs of its existing and future
international customers who require a large geographical presence in
these markets.
Prospects for 2010
Emakina foresees a slightly more positive economic environment
in 2010. In this context, Emakina expects moderate sales growth, due to
several key elements: pluri-annual contracts mentioned above, increased
commercial efforts in 2009, commercial partnership with Pixelpark... Margins
should also evolve positively.
External audit
The auditor has confirmed that his review of the consolidated
financial statements has not revealed any significant matters requiring
adjustments to the accounting information included in this press release.
CONSOLIDATED FIGURES 2009
EMAKINA GROUP SA
CONSOLIDATED RESULTS (EUR) * 31/12/2009 31/12/2008 31/12/2007
TOTAL REVENUES 31.782.957 31.484.834 17.371.543
Net revenues 31.053.797 30.919.864 16.467.728
Variation of work in progress 475.485 283.653 757.543
Other operating income 253.676 281.317 146.272
TOTAL OPERATING COSTS
(before depreciation and
amortization) -29.454.548 -28.797.972 -15.794.940
Purchase of equipment and
services related to sales -15.053.129 -15.680.221 -8.228.222
Payroll costs -14.331.711 -13.065.395 -7.533.083
Other operating costs -69.708 -52.356 -33.635
OPERATING PROFIT (before
depreciation and amortization)
= EBITDA 2.328.409 2.686.862 1.576.603
DEPRECIATION AND AMORTIZATION -802.255 -636.033 -414.030
Depreciation and amortization
of (in)tangible assets -741.054 -629.935 -369.583
Write-off on trade receivables -32.641 -6.098 -44.447
Litigation accruals -28.560 0 0
OPERATING PROFIT (EBIT) 1.526.154 2.050.829 1.162.573
NET FINANCIAL RESULT -362.910 -305.193 -32.974
Financial income 3.878 22.449 139.644
Financial charges -366.788 -327.642 -172.618
CURRENT PRE-TAX PROFIT BEFORE
AMORTIZATION ON GOODWILL 1.163.244 1.745.636 1.129.599
Amortization on goodwill -937.527 -891.000 -470.556
CURRENT PRE-TAX PROFIT 225.717 854.636 659.043
NET EXTRAORDINARY RESULT -194.085 45.918 -130.114
PRE-TAX PROFIT 31.632 900.554 528.929
Deferred taxes -457 281.917 494.565
Current income tax -412.075 -792.196 -381.564
SHARE IN RESULTS OF EQUITY-METHOD
ENTITIES (profit) 51.490 0 0
NET PROFIT BEFORE AMORTIZATION
ON GOODWILL 608.117 1.281.275 1.112.486
NET PROFIT -329.410 390.275 641.930
A. Share of third parties 296.460 364.401 156.327
B. Group share -625.870 25.874 485.603
SHARE DATA 31/12/2009 31/12/2008 31/12/2007
NUMBER OF SHARES 3.496.708 3.459.533 3.435.409
NUMBER OF SHARES & SHARE OPTIONS 3.662.338 3.571.733 3.490.539
CURRENT PRE-TAX PROFIT (in EUR) 0,0646 0,2470 0,1918
CURRENT PRE-TAX PROFIT / SHARE
& SHARE OPTION (in EUR) 0,0616 0,2393 0,1888
GROUP SHARE / SHARE (in EUR) -0,1790 0,0075 0,1414
GROUP SHARE / SHARE & SHARE
OPTION (in EUR) -0,1709 0,0072 0,1391
NET PROFIT / SHARE (in EUR) -0,0942 0,1128 0,1869
NET PROFIT / SHARE & SHARE
OPTION (in EUR) -0,090 0,1093 0,1839
* Established according to Belgian GAAP
The consolidated income statement for 2009 includes 12 months
of all group subsidiaries except for Emakina Media which is consolidated by
the equity method since July 1, 2009, following the decrease of Emakina
Group's investment in this entity.
ASSETS (EUR) * 31/12/2009 31/12/2008 31/12/2007
NON CURRENT ASSETS 6.942.276 7.423.437 7.864.347
Formation expenses 504.836 602.771 702.816
Intangible assets 512.061 448.365 572.445
Goodwill 4.823.921 5.415.980 5.829.471
Tangible assets 899.269 886.031 674.721
Financial assets 202.189 70.290 84.894
CURRENT ASSETS 15.809.082 15.042.223 11.474.352
Stocks and contracts in progress 2.164.032 1.688.548 1.404.894
Deferred taxes 897.846 931.842 650.000
Amounts receivable with one year 10.859.372 10.774.837 7.821.791
Investments 299.467 428.811 344.996
Cash at bank and in hand 1.353.283 934.829 1.073.627
Deferred charges and accrued income 235.082 283.356 179.044
TOTAL ASSETS 22.751.358 22.465.660 19.338.699
LIABILITIES (EUR) * 31/12/2009 31/12/2008 31/12/2007
EQUITY 9.238.205 9.729.505 9.382.179
Capital 8.395.670 8.306.412 8.248.515
Share premium 511.890 0 0
Consolidated reserves 330.645 1.423.093 1.133.664
MINORITY INTERESTS 406.833 493.893 347.079
PROVISION FOR LIABILITIES AND CHARGES 146.694 30.134 73.264
DEFERRED TAXES AND LATENT TAXATION
LIABILITIES 170.037 203.576 200.651
CREDITORS 12.789.590 12.008.552 9.335.526
Amounts payable after one year 515.272 877.291 654.785
Amounts payable within one year 12.128.185 10.819.072 8.290.158
Current portion of amounts payable after
one year 1.227.194 1.252.670 765.008
Financial debts 1.016.521 297.724 666.321
Trade debts 2.893.421 3.890.918 3.045.187
Advances received on contracts in
progress 2.650.485 2.138.677 1.350.035
Amounts payable on taxes, remuneration
and social security 2.832.624 3.147.276 2.184.931
Other amounts payable 1.507.940 91.807 278.676
Accrued charges and deferred income 146.133 312.189 390.583
TOTAL LIABILITIES 22.751.358 22.465.660 19.338.699
* Established according to Belgian GAAP
In accordance with the new rules of Alternext Brussels, the
current annual press release has become optional. This press release will be
followed by the publication of the 2009 annual report of Emakina Group which
will include the full information required. This report will be available on
our site, http://www.emakina.com (section "investors") from April 7, 2010 in
accordance with the legal requirements in this matter.
About Emakina Group:
Emakina Group is a European network of interactive agencies
that helps its clients to integrate the Internet into their activities. The
agencies within Emakina Group are Emakina Belgium (Brussels), Emakina.EU
(Brussels), Emakina/Media (Brussels) B. On The Net (Brussels), Design is Dead
(Antwerp), The Reference (Gent), Emakina.NL (Rotterdam) and groupeReflect
(Paris and Limoges). Emakina Group has developed a service portfolio around
the following three poles: interactive marketing, information websites and
transactional applications and e-commerce. With a team of more than 286
people, Emakina is the foremost interactive agency in Belgium. Emakina is
listed on the Alternext market of Euronext Brussels stock exchange (mnemo:
ALEMK) since July 2006.
http://www.emakina.com
Source: Emakina Group
More information: Denis Steisel, CEO Emakina Group, E-mail : dst@emakina.com, Tel. : +32-2-400-40-75; Frederic Desonnay, CFO Emakina Group, Tel. : +32-2-788-78-26, E-mail: fds@emakina.com; Laurent Jadot, PR Manager Emakina Group, E-mail : lja@emakina.com, Tel. : +32-2-400-40-21; Emakina Group S.A., Rue Middelbourg 64A, 1170 Brussels, Belgium, VAT 0464.812.221, ISIN BE 0003843605
BRUSSELS, March 19, 2010-- Emakina Group (Alternext Brussels: ALEMK) today communicates
its consolidated results for the year 2009. Sales continued to grow by
1%.Group EBITDA improved significantly during the second semester 2009,
reaching 10.6% of sales compared to 3.6% for the first semester of 2009 and
9.7% for the second semester of 2008.
During 2009, Emakina Group sales totaled 31 782 957 EUR
compared to 31 484 834 EUR during the previous year, representing an increase
of 1%, but at a level lower than expected, due to the economic downturn.
EBITDA amounted to 2 328 409 EUR in 2009 (or 7.3% of sales) compared to 2 686
862 EUR (or 8.5% of sales) in the prior year. As a reminder, EBITDA at June
30 2009 amounted to 530 137 EUR, which means and EBITDA of 1 798 272 EUR for
the second half of the year compared to 1 709 556 EUR for the second half of
2008. This improvement is the result of various measures announced in the
half yearly 2009 report.
The recurring result for 2009 amounted to 225 717 EUR compared
to 854 636 EUR in 2008, mainly due to the evolution of EBIT and due to the
decrease of the financial result by 104 245 EUR.
Net profit before tax fell from 900 554 EUR in 2008 to 31 632
EUR in 2009 due to the evolution of the recurring result combined with
non-recurring charges of 225 061 EUR.
The deferred tax impact (related to the capitalization of tax
losses carried forward) fell from an income of 281 917 EUR to a charge of
-457 EUR in 2009 while tax charges fell from 792 196 EUR to 412 075 EUR
respectively.
Net result (before amortization of goodwill) amounted to 608
117 EUR in 2009 compared to 1 281 275 EUR in 2008.
For the second time in its history, the Board of Directors of
Emakina Group will propose to the Shareholders' Meeting on April 22, 2010, a
total gross dividend of 250 000 EUR, amounting to a gross (net) dividend per
share of 0.07150 EUR (0.06077 EUR).
Several elements influenced the 2009 annual results:
The economic crisis had an indirect effect on Emakina mainly
during the first semester of 2009, in particular due to customers in the
financial, automobile and air transport sectors.
Moreover, the sales process became lengthier and required
increased commercial efforts. -
- The legally required indexation of salaries on January 1,
2009 weighed on margins in Belgium.
- Despite the economic downturn, sales continued to increase
for the 5th consecutive year, in particular due to the synergies
developed between Emakina Group subsidiaries, to attract new
international clients. Emakina Belgium and Emakina.NL thus worked
jointly to create Yunomi, an online women's community developed for the
Benelux area by Unilever. Similarly, Emakina Belgium and Emakina.EU, a
new agency specialized in European and International Institutions,
partnered in October 2009, to obtain an important framework contract
with the European Commission (Directorate General for Health and
Consumers) in the field of audiovisual services and media training.
Emakina Group's management took the following measures to
support growth and reinforce margins:
- Increased use of reporting tools developed from the existing
integrated ERPs to optimize project management and track their
profitability.
- Emakina Group faces numerous opportunities that have arisen
from the technological changes that were speeded up by the current
economic situation. The media and advertising world was particularly
shaken in 2009. In this context, Emakina Group wants to be a major
actor, striving to help its clients to take advantage of these changes.
- At 2009 end, Emakina concluded a commercial partnership with
the German group Pixelpark AG, thus creating the means to respond on a
pan-european scale to the needs of its existing and future
international customers who require a large geographical presence in
these markets.
Prospects for 2010
Emakina foresees a slightly more positive economic environment
in 2010. In this context, Emakina expects moderate sales growth, due to
several key elements: pluri-annual contracts mentioned above, increased
commercial efforts in 2009, commercial partnership with Pixelpark... Margins
should also evolve positively.
External audit
The auditor has confirmed that his review of the consolidated
financial statements has not revealed any significant matters requiring
adjustments to the accounting information included in this press release.
CONSOLIDATED FIGURES 2009
EMAKINA GROUP SA
CONSOLIDATED RESULTS (EUR) * 31/12/2009 31/12/2008 31/12/2007
TOTAL REVENUES 31.782.957 31.484.834 17.371.543
Net revenues 31.053.797 30.919.864 16.467.728
Variation of work in progress 475.485 283.653 757.543
Other operating income 253.676 281.317 146.272
TOTAL OPERATING COSTS
(before depreciation and
amortization) -29.454.548 -28.797.972 -15.794.940
Purchase of equipment and
services related to sales -15.053.129 -15.680.221 -8.228.222
Payroll costs -14.331.711 -13.065.395 -7.533.083
Other operating costs -69.708 -52.356 -33.635
OPERATING PROFIT (before
depreciation and amortization)
= EBITDA 2.328.409 2.686.862 1.576.603
DEPRECIATION AND AMORTIZATION -802.255 -636.033 -414.030
Depreciation and amortization
of (in)tangible assets -741.054 -629.935 -369.583
Write-off on trade receivables -32.641 -6.098 -44.447
Litigation accruals -28.560 0 0
OPERATING PROFIT (EBIT) 1.526.154 2.050.829 1.162.573
NET FINANCIAL RESULT -362.910 -305.193 -32.974
Financial income 3.878 22.449 139.644
Financial charges -366.788 -327.642 -172.618
CURRENT PRE-TAX PROFIT BEFORE
AMORTIZATION ON GOODWILL 1.163.244 1.745.636 1.129.599
Amortization on goodwill -937.527 -891.000 -470.556
CURRENT PRE-TAX PROFIT 225.717 854.636 659.043
NET EXTRAORDINARY RESULT -194.085 45.918 -130.114
PRE-TAX PROFIT 31.632 900.554 528.929
Deferred taxes -457 281.917 494.565
Current income tax -412.075 -792.196 -381.564
SHARE IN RESULTS OF EQUITY-METHOD
ENTITIES (profit) 51.490 0 0
NET PROFIT BEFORE AMORTIZATION
ON GOODWILL 608.117 1.281.275 1.112.486
NET PROFIT -329.410 390.275 641.930
A. Share of third parties 296.460 364.401 156.327
B. Group share -625.870 25.874 485.603
SHARE DATA 31/12/2009 31/12/2008 31/12/2007
NUMBER OF SHARES 3.496.708 3.459.533 3.435.409
NUMBER OF SHARES & SHARE OPTIONS 3.662.338 3.571.733 3.490.539
CURRENT PRE-TAX PROFIT (in EUR) 0,0646 0,2470 0,1918
CURRENT PRE-TAX PROFIT / SHARE
& SHARE OPTION (in EUR) 0,0616 0,2393 0,1888
GROUP SHARE / SHARE (in EUR) -0,1790 0,0075 0,1414
GROUP SHARE / SHARE & SHARE
OPTION (in EUR) -0,1709 0,0072 0,1391
NET PROFIT / SHARE (in EUR) -0,0942 0,1128 0,1869
NET PROFIT / SHARE & SHARE
OPTION (in EUR) -0,090 0,1093 0,1839
* Established according to Belgian GAAP
The consolidated income statement for 2009 includes 12 months
of all group subsidiaries except for Emakina Media which is consolidated by
the equity method since July 1, 2009, following the decrease of Emakina
Group's investment in this entity.
ASSETS (EUR) * 31/12/2009 31/12/2008 31/12/2007
NON CURRENT ASSETS 6.942.276 7.423.437 7.864.347
Formation expenses 504.836 602.771 702.816
Intangible assets 512.061 448.365 572.445
Goodwill 4.823.921 5.415.980 5.829.471
Tangible assets 899.269 886.031 674.721
Financial assets 202.189 70.290 84.894
CURRENT ASSETS 15.809.082 15.042.223 11.474.352
Stocks and contracts in progress 2.164.032 1.688.548 1.404.894
Deferred taxes 897.846 931.842 650.000
Amounts receivable with one year 10.859.372 10.774.837 7.821.791
Investments 299.467 428.811 344.996
Cash at bank and in hand 1.353.283 934.829 1.073.627
Deferred charges and accrued income 235.082 283.356 179.044
TOTAL ASSETS 22.751.358 22.465.660 19.338.699
LIABILITIES (EUR) * 31/12/2009 31/12/2008 31/12/2007
EQUITY 9.238.205 9.729.505 9.382.179
Capital 8.395.670 8.306.412 8.248.515
Share premium 511.890 0 0
Consolidated reserves 330.645 1.423.093 1.133.664
MINORITY INTERESTS 406.833 493.893 347.079
PROVISION FOR LIABILITIES AND CHARGES 146.694 30.134 73.264
DEFERRED TAXES AND LATENT TAXATION
LIABILITIES 170.037 203.576 200.651
CREDITORS 12.789.590 12.008.552 9.335.526
Amounts payable after one year 515.272 877.291 654.785
Amounts payable within one year 12.128.185 10.819.072 8.290.158
Current portion of amounts payable after
one year 1.227.194 1.252.670 765.008
Financial debts 1.016.521 297.724 666.321
Trade debts 2.893.421 3.890.918 3.045.187
Advances received on contracts in
progress 2.650.485 2.138.677 1.350.035
Amounts payable on taxes, remuneration
and social security 2.832.624 3.147.276 2.184.931
Other amounts payable 1.507.940 91.807 278.676
Accrued charges and deferred income 146.133 312.189 390.583
TOTAL LIABILITIES 22.751.358 22.465.660 19.338.699
* Established according to Belgian GAAP
In accordance with the new rules of Alternext Brussels, the
current annual press release has become optional. This press release will be
followed by the publication of the 2009 annual report of Emakina Group which
will include the full information required. This report will be available on
our site, http://www.emakina.com (section "investors") from April 7, 2010 in
accordance with the legal requirements in this matter.
About Emakina Group:
Emakina Group is a European network of interactive agencies
that helps its clients to integrate the Internet into their activities. The
agencies within Emakina Group are Emakina Belgium (Brussels), Emakina.EU
(Brussels), Emakina/Media (Brussels) B. On The Net (Brussels), Design is Dead
(Antwerp), The Reference (Gent), Emakina.NL (Rotterdam) and groupeReflect
(Paris and Limoges). Emakina Group has developed a service portfolio around
the following three poles: interactive marketing, information websites and
transactional applications and e-commerce. With a team of more than 286
people, Emakina is the foremost interactive agency in Belgium. Emakina is
listed on the Alternext market of Euronext Brussels stock exchange (mnemo:
ALEMK) since July 2006.
http://www.emakina.com
Source: Emakina Group
More information: Denis Steisel, CEO Emakina Group, E-mail : dst@emakina.com, Tel. : +32-2-400-40-75; Frederic Desonnay, CFO Emakina Group, Tel. : +32-2-788-78-26, E-mail: fds@emakina.com; Laurent Jadot, PR Manager Emakina Group, E-mail : lja@emakina.com, Tel. : +32-2-400-40-21; Emakina Group S.A., Rue Middelbourg 64A, 1170 Brussels, Belgium, VAT 0464.812.221, ISIN BE 0003843605