KEYWARE TECHNOLOGIES MAAKT RESULTATEN


Profit doubled in 2015

10 March 2016, 18:00 hours


Brussels, Belgium - 10 March 2016 - Keyware (EURONEXT Brussels: KEYW) a leading supplier of electronic-payment solutions and related transaction management, today announces its financial results for the financial year, which ended on 31 December 2015.


Keyware's financial year 2015 summarized:
  • Net profit increased by 177.02% from 1,910 kEUR to 5,291 kEUR
  • Pre tax result increased by 108.38% from 1,933 kEUR to 4,028 kEUR
  • EBITDA increased by 117.18% from 2,299 kEUR to 4,993 kEUR
  • Revenues grew by 28.53% from 9,718 kEUR to 12,491 kEUR
  • Financial and trade and other debts decreased by respectively 626 kEUR and 1,259 kEUR


  • Keyware ended the financial year 2015 with a net profit and an EBITDA of 5,291 kEUR and 4,993 kEUR, respectively. Net profit increased by 3,381 kEUR or 177.02% compared with the financial year 2014. The net profit margin (net profit / revenues) amounted to 42.36% in 2015 compared with 19.65% in 2014, which represents an increase of 22.71 percentage points.


  • The comparability of the net profit between both financial years was influenced by the recognition of additional deferred taxes in 2015. A comparison of the profitability based on the result before tax is therefore a better base for comparison. This amounted to 4,028 kEUR in 2015, which represents an improvement of 2,095 kEUR or 108.38% compared with 2014. The gross profit margin (profit before tax / revenues) amounted to 32.24% and 19.89% respectively, which represents an improvement of 12.35 percentage points.


  • EBITDA amounted to 4,993 kEUR in 2015, which represents an increase of 2,694 kEUR or 117.18% compared with the financial year 2014. The EBITDA margin (EBITDA/revenues) in 2015 amounted to 39.97% compared with 23.66%, which represents an increase of 16.31 percentage points.


  • In the balance sheet the decrease of financial debts can be identified, decreasing by 626 kEUR from 4,884 kEUR to 4,258 kEUR whilst trade and other debts are decreasing by 1,259 kEUR from 3,833 kEUR to 2,574 kEUR


Keyware realised an increase in revenues of 28.53% as a result of which revenues increased by 2,773 kEUR from 9,718 kEUR to 12,491 kEUR. Both the payment terminals segment and the authorisation segment contributed to the general increase. The increase in revenues can be attributed to two factors. Firstly, a larger number of contracts were signed in 2015 in comparison with 2014. Secondly, the asset deal with GlobalPay delivered a contribution to revenues of 850 kEUR or 30.65% of the total increase.


Higher write-offs were recorded on current assets in 2015. The increase of 783 kEUR can mainly be attributed to higher write-offs of inventories due to the obsolescence of certain terminals and a change in the RMA policy.


The income statement includes a (net) tax revenue of 1,263 kEUR. This includes a deferred tax revenue of 1,373 kEUR in connection with the additional recognition of tax losses. In this manner, the

deferred tax assets with regard to the remaining tax losses of Keyware Smart Card Division NV were expressed at the 2015 year-end. The deferred tax assets of 3,058 kEUR will be released in the following financial years ratably, on the basis of the consumption of tax losses.


The consolidated figures of 2015 include the subsidiary Pay It Easy BVBA which has been fully consolidated whereas this subsidiary was previously accounted for by the equity method during the first three quarters of 2014. This change is mainly reflected as shift from raw materials and consumables (in 2014) to services and various goods (in 2015).


The key figures of the GlobalPay acquisition can be specified as follows:

  • around 75% of the contracts acquired as of 1 January 2015 are still active at year-end 2015;

  • the acquisition price amounted to 445 kEUR, allocated to intangibles and purchased terminals for 250 kEUR and 195 kEUR, respectively;

  • the value allocated to intangibles of 250 kEUR will be amortized over a period of five years, whereby 50 kEUR has already been recognised in 2015;

  • the share in revenues and in raw materials and consumables amounted to 850 kEUR and 316 kEUR, respectively;

  • the share in the operating result (EBIT) and in the EBITDA amounted ot 437 kEUR and 534 kEUR, respectively;

  • the share in the profit before taxes and in the net profit was 450 kEUR


The figures



For the financial year 2015:


Financial year

Key figures for the period

31.12.2015

31.12.2014

ending on December 31

kEUR

kEUR

(audited)

(audited)


Revenues


12,491


9,718

Gross margin

10,178

7,400

Profit/(loss) before taxes

4,028

1,933

Profit/(loss) after taxes

5,291

1,910


EBITDA


4,993


2,299

Net cash flow

7,047

2,863

Gross profit margin (profit before tax / revenues) (%)


32.24


19.89

Profit margin (net profit / revenues) (%)

42.36

19.65

EBITDA margin (EBITDA / turnover) (%)

39.97

23.66



  • after subsequent revenue growths of 5.66% and 11.08% respectively in the financial years 2013 and 2014, revenues rose by 28.53% in 2015;

  • the gross profit margin increased from 76.15% in 2014 to 81.48% in 2015;

  • the net profit for the financial year 2015 amounted to 5,291 kEUR, compared to a net profit of 1,910 kEUR in 2014, which represents an increase of 3,381 kEUR or 177.02%. This is also reflected in the increase of the net profit margin from 19.65% in 2014 to 42.36% in 2015 or an improvement of 22.71 percentage points;

  • the operating cash flow (EBITDA) for the financial year 2015 came to 4,993 kEUR, versus 2,299 kEUR for the financial year 2014, which represents an increase of 2,694 kEUR or 117.18%. As a consequence, the EBITDA margin amounted to 39.97% compared with 23.66%, which represents an increase of 16.31%;

  • the net cash flow amounted to 7,047 kEUR versus 2,863 kEUR for 2014, which represents an increase of 4,184 kEUR or 146.14%


    Management report on the results for 2015



    The key figures for the financial year can be summarised as follows.


  • The revenues and the gross margin can be specified as follows:


Financial year

Gross margin

31.12.2015

31.12.2014

Change

kEUR

(audited)

kEUR

(audited)


Revenues


12,491


9,718


28.53 %

Purchases of goods for resale

(2,313)

(2,318)

- 0.22 %

Gross margin

10,178

7,400

37.54 %

Gross margin in percentages

81.48%

76.15%


  • The consolidated revenues for the financial year 2015 amounted to 12,491 kEUR compared with 9,718 kEUR for 2014, which represents an increase of 28.53%.


    The increase in revenues is mainly reflected within the payment terminals division, also due to the acquisition of GlobalPay, and within the authorisation division. A record number of newly concluded contracts were registered in 2015. Raw materials and consumables remained stable in spite of the increase in revenues. Besides improved purchasing prices, this can also be attributed to the impact of a different presentation of Pay it Easy. The cost price of our own platform over which the transactions flew was classified amongst raw materials and consumables in 2014, whereas in 2015 this is accounted for amongst services and other goods;


  • Other expenses increased by 125 kEUR in comparison with 2014, mainly due to the above- mentioned reason. On the other hand, it should be observed that in 2014 this caption comprised costs in connection with the valuation of the warrants amounting to 260 kEUR.


  • Impairments on current assets increased by 783 kEUR from 1,002 kEUR in 2014 to 1,785 kEUR in 2015. This relates to impairments recorded on receivables from financial leasing

    (1,224 kEUR) and impairments on inventories (561 kEUR). This increase can mainly be attributed to higher write-offs on inventories;


  • Profit before tax amounted to 4,028 kEUR in comparison to 1,933 kEUR in 2014. The improvement of 2,095 kEUR (+108.38%) mainly resulted from the higher gross margin, although reduced by higher write-offs;


  • Net profit for the financial year amounted to 5,291 kEUR, compared with a net profit of 1,910 kEUR in 2014, which represents an increase of 3,381 kEUR (+177.02%). In addition to the reasons provided above, the increase can also be attributed to the deferred tax revenues that were recognised in 2015 to account for the remaining tax losses;


  • Net cash flow amounted to 7,047 kEUR in comparison to 2,863 kEUR in 2014. This increase is explained by that which is mentioned above.


Management report on the balance sheet position at 31 December 2015



The key figures for the financial year can be summarised as follows.


Financial year

Key figures for the period

31.12.2015

31.12.2014

ending on December 31

kEUR

kEUR

(audited)

(audited)


Net equity


23,683


17,981

Non-current and current financial liabilities and loans

4,258

4,884

Equity / total liabilities (%)

76.35

66.38

Non-current and current financial liabilities and loans /

equity (%)


17.98


27.16


  • Net equity capital increased by 5,702 kEUR in comparison with 31 December 2014. The statement of changes in equity provides a detailed overview of the underlying factors (net profit of 5,291 kEUR and the capital increase of 411 kEUR);

  • As a result, the net equity at year-end 2015 represented a share of 76.35% of total liabilities compared with 66.38% on 31 December 2014;

  • Financial liabilities on aggregate decreased by 626 kEUR in comparison with the 2014 year- end. Hence, the financial year 2015 represents a turnaround in the financing of the Group as for the first time the change in financial liabilities indicates a decrease which reflects that the Group no longer needs additional funding to support its growth;

  • Financial liabilities represented 17.98% of the net equity in 2015 compared with 27.16 % at 31 December 2014;

  • Furthermore, the settlement with PARFIP Benelux that took place in 2015 resulted in a payment of 800 kEUR, which is reflected in the decrease of the trade payables and, likewise, in the debt ratio.

Keyware Technologies NV issued this content on 10 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 11 March 2016 22:41:14 UTC

Original Document: http://www.keyware.com/sites/default/files/investor/keyware_2015_ifrs_conso_pb_eng.pdf