04.03.2016 15:30:00 CET
M-Brain Oy, Financial Statement 4.3.2016 04:30 pm
M-Brain Oy Financial Statements from Year 2015
January - December 2015:
July - December 2015:
EXECUTIVE CHAIRMAN KIM NYBERG'S COMMENTS
M-Brain is a global information, technology and consulting services company. We help our clients to navigate the turbulent and ever expanding business environment. We offer crucial external business information, and advise in its efficient management and utilisation. We turn information into actionable insights for daily decision-making and strategic planning. We call it Informed Leadership.
In 2015 the most important development was the completion of the integration of GIA, which involved establishing a new organization and streamlining of overlapping operations. These have now been completed.
The development of net sales in Finland was unsatisfactory, which was mainly a result of the poor development of the Finnish overall economy as well as the impact of the changing media landscape to the traditional media monitoring services.
The operations in Asia were reorganized in the fall and the outlook there is positive. Also the operations in Germany and the UK have been successfully integrated. The development of the Northern American operations has been positive.
REVENUE AND RESULT DEVELOPMENT
The revenue of M-Brain Group in 2015 was EUR 30 341 thousand. The operating profit of the company was EUR 1.283,6 thousand.
The revenue of the company in 2015 increased mainly due to the acquisition of the GIA Group. The GIA Group was acquired in the autumn of 2014, and it had an effect on the Group's financial figures in 2014 for four months. In particular, the Finnish market remained challenging due to the overall economic situation and the diminishing traditional business, caused by the ongoing media revolution. During the financial year, the Group continued the integration of the acquired subsidiaries and the rationalization of the operations. The measures taken allowed the Group to achieve cost savings by removing duplicate operations and enhancing the efficiency of production. The impact of these measures was visible already in 2015 through increased profits, but they will also strengthen the profit for the full year 2016
M-Brain's EBITDA was EUR 2.590,6 thousand (January 1 - December 31, 2014: 922,5) i.e. 8,5% of the net sales (3,9%). EBITDA of the Group includes approximately EUR 752 thousand of non-recurring costs (2014: EUR 1253 thousand). revenue and the result. The depreciations for the financial period were EUR 1.307,0 thousand and operating profit EUR 1.283,6 thousand (January 1 - December 31, 2014: depreciations 948,8 and operating profit -26,3).
The Company's Finnish subsidiary Global Intelligence Alliance Group Oy merged with its sister company M-Brain Insight Oy on June 30, 2015.
FINANCING AND INVESTMENTS
M-Brain's investments, EUR 947,6 thousand, are mainly related to the internal product development. The intangible assets resulting from the internal development activities will be recognized in the balance sheet once the expenses of the development phase can be calculated reliably, once the completion of the product can be implemented technically, once the Group can use or sell the product, once the Group can prove how the product will generate likely future financial benefit, and once the Group has both the intention and the resources to complete the development work and to sell the product. After initial recognition, capitalized development costs are measured at cost less accumulated depreciation/amortization and impairment losses. Depreciation/amortization is recognized from the date the asset is ready for use.
PERSONNEL, MANAGEMENT AND ADMINISTRATION
The average number of personnel in the Group during the review period was 393 full-time employees (in year 2013 the Group had 345 employees, and in year 2012 302 employees).
Kim Nyberg (Chairman of the Board), Marjukka Nyberg, Matti Rusanen, Petri Laine, Robert Ingman and Tage Lindberg were members of the Board of Directors of the mother company during the whole financial year. In addition, Pirjo Ståhle has been a member of the Board starting until June 30, 2015. Kimmo Valtonen was Managing Director of the parent company until March 15, 2015 and since that Sirpa Ojala.
M-Brain Oy's auditor is Deloitte & Touche Oy, principal auditor Authorized Public Accountant Hannu Mattila. The Group's Finnish subsidiaries have the same auditor.
GENERAL MEETINGS
The Annual General Meeting of the Company was held on June 30, 2015. The Annual General Meeting decided on the adoption of the financial statements and the discharge of liability to the members of the Board of Directors and the CEO. The Annual General Meeting decided that the result for the fiscal year January 1 - December 31, 2014 be recorded in the profit and loss account and that no dividends be distributed. The Annual General Meeting decided that no change be made to the fees of the members of the Board of Directors. The fee of the Board members is EUR 1,200 per month.
DIVIDEND PROPOSAL BY THE BOARD OF DIRECTORS
Loss for the period of the mother company of the Group, M-Brain Oy was 898.106,57 euros and distributable funds 12.473.455,71 euros. The Board of Directors proposes to the Annual General Meeting that the distributable funds are uses as follows: dividends are not distributed and the loss for the period is booked to the retained earnings.
SHARES
The company has 23.593 registered shares. During the financial year there were no changes in the number of shares. On December 31, 2015, the Company had a total of nine shareholders. During the financial year the company did not acquire or sell its own shares. On December 31, 2015, the Company has 100 of its own shares. Proportion of voting rights by company's own shares is 0,42%
Significant events after the reporting period
Kim Nyberg was elected as a Managing Director of M-Brain Oy on January 16, 2016.
Major risks and uncertainties
Technological development in the Company's field of business is extremely fast. In accordance with its strategy, the Company has made significant investments in its own product development to improve its competitiveness compared to its competitors.
The core operations of the Group are insured against accidental damages and interruptions.
Accounts receivables is significant balance sheet item. Credit risk related to accounts receivables is managed by consistent credit policy and efficient credit management. Credit risk is also reduced by the large number of clients and by the fact that the receivables are allocated to several businesses.
The Group's loan financing involves special terms agreed with the lender to which the Company is committed.
OUTLOOK FOR THE YEAR 2016
Based on the actions implemented during the second half of 2015 we expect that both net sales and EBITDA will grow in 2016.
The Company's business involves various risks and uncertainties, and the statements in this release, other than statements of historical facts, are forward looking statements. These statements are based on the management's best judgment and belief in light of the information currently available to it. As such statements involve risks and uncertainties, the actual results may differ materially from those we expect at the moment.
FINANCIAL INFORMATION FOR YEAR 2016
Financial statements for the period January 1, 2016 - June 30, 2016 will be published on August 15, 2016.
FINANCIAL INFORMATION
The financial statements of M-Brain Group have been prepared in accordance with IFRS recognition and measurement principles. More information about the principles of the preparation of the Group financial statements can be found in the attachment to the financial statements. The financial statements and the figures for the financial period have been audited. Other information presented in this report is unaudited.
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
| 000 euros | 1.7.-31.12.2015 | 1.7.-31.12.2014 | 1.1.-31.12.2015 | 1.1.-31.12.2014 | |
| Revenue | 14,862.8 | 14,015.9 | 30,341.3 | 23,518.1 | |
| Other operating income | 16.4 | 28.1 | 94.0 | 76.1 | |
| Materials and external services | -2,115.6 | -1,703.6 | -4,106.1 | -2,614.7 | |
| Personnel expenses | -8,245.1 | -8,774.2 | -16,816.0 | -14,710.0 | |
| Depreciation | -647.6 | -569.1 | -1,307.0 | -948.8 | |
| Other operating expenses | -3,364.9 | -3,539.2 | -6,922.7 | -5,347.0 | |
| Operating profit | 506.1 | -542.0 | 1,283.6 | -26.3 | |
| Finance income | -66.6 | 284.7 | 290.0 | 302.1 | |
| Finance costs | -873.6 | -898.6 | -1,842.3 | -1,055.3 | |
| Finance costs (net) | -940.2 | -613.9 | -1,552.4 | -753.2 | |
| Profit (loss) before income tax | -434.2 | -1,155.9 | -268.8 | -779.5 | |
| Income tax expense | -148.9 | 86.7 | -125.8 | 10.8 | |
| PROFIT (LOSS) FOR THE PERIOD | -583.1 | -1,069.2 | -394.6 | -768.7 | |
| Other comprehensive income, net of income tax | |||||
| Items that may be reclassified subsequently to profit or loss: | |||||
| Currency translation differences | 123.5 | 23.6 | 93.7 | 69.4 | |
| Other comprehensive income for the period, net of tax | 123.5 | 23.6 | 93.7 | 69.4 | |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD | -459.6 | -1,045.6 | -300.9 | -699.3 | |
| Profit attributable to: | |||||
| Owners of the company | -583.1 | -1,069.2 | -394.6 | -768.7 | |
| Total comprehensive income attributable to: | |||||
| Owners of the company | -459.6 | -1,045.6 | -300.9 | -699.3 |
| 000 euros | 31.12.2015 | 31.12.2014 | |
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 21,976.5 | 21,976.5 | |
| Development costs | 1,491.2 | 1,339.1 | |
| Other intangible assets | 3,120.4 | 3,530.0 | |
| Tangible assets | 590.8 | 719.9 | |
| Available-for-sale financial assets | 17.0 | 26.9 | |
| Deferred tax asset | 470.2 | 181.5 | |
| Total non-current assets | 27,665.9 | 27,773.9 | |
| Current assets | |||
| Trade and other receivables | 5,426.3 | 5,948.6 | |
| Other shares | 2.4 | 6.5 | |
| Cash and cash equivalents | 1,947.2 | 1,601.0 | |
| Total current assets | 7,375.8 | 7,556.0 | |
| TOTAL ASSETS | 35,041.8 | 35,329.8 | |
| EQUITY AND LIABILITIES | |||
| Equity attributable to owners of the company | |||
| Share capital | 215.5 | 215.5 | |
| Share premium | 247.2 | 247.2 | |
| Reserve for invested non-restricted equity | 12,292.2 | 12,292.2 | |
| Retained earnings | -1,112.3 | -895.4 | |
| Total equity | 11,642.6 | 11,859.5 | |
| Non-current liabilities | |||
| Borrowings | 15,077.6 | 15,072.1 | |
| Deferred tax liability | 596.4 | 684.1 | |
| Other liabilities | 186.0 | 189.2 | |
| Total non-current liabilities | 15,860.0 | 15,945.4 | |
| Current liabilities | |||
| Borrowings | 358.3 | 211.8 | |
| Advance payments | 1,659.7 | 1,572.2 | |
| Trade payables | 1,373.7 | 913.5 | |
| Other current liabilities | 935.8 | 1,128.8 | |
| Accrued liabilities | 3,211.6 | 3,698.6 | |
| Total current liabilities | 7,539.2 | 7,524.9 | |
| Total liabilities | 23,399.2 | 23,470.3 | |
| TOTAL EQUITY AND LIABILITIES | 35,041.8 | 35,329.8 |
| 1.7.-31.12.2015 | 1.7.-31.12.2014 | 1.1.-31.12.2015 | 1.1.-31.12.2014 | |||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Profit (loss) for the period | -583.1 | -1,069.2 | -394.6 | -768.7 | ||||
| Adjustments for: | ||||||||
| Depreciation according to plan (+) | 647.6 | 569.1 | 1,307.0 | 948.8 | ||||
| Other adjustments (income - / expenses +) | -161.6 | 344.6 | -102.4 | 237.1 | ||||
| Financial income and expenses | 940.2 | 613.9 | 1,552.4 | 753.2 | ||||
| 843.2 | 458.4 | 2,362.4 | 1,170.4 | |||||
| Changes in working capital: | ||||||||
| Non-current operative receivables | 25.0 | 0.0 | 0.0 | 0.0 | ||||
| Current operative receivables | 66.9 | -136.4 | 518.4 | 208.8 | ||||
| Current operative payables | 613.3 | 618.5 | -82.7 | 344.1 | ||||
| 705.2 | 482.1 | 435.7 | 552.9 | |||||
| Interes paid (-) | -503.9 | -934.8 | -1,409.7 | -1,087.6 | ||||
| Interes received (+) | 5.0 | 284.7 | 6.9 | 289.8 | ||||
| Income taxes paid | -152.9 | -391.4 | -178.5 | -452.2 | ||||
| -651.8 | -1,041.5 | -1,581.3 | -1,250.0 | |||||
| NET CASH GENERATED BY OPERATING ACTIVITIES | 896.6 | -101.0 | 1,216.8 | 473.3 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Investments on tangible and intangible assets | -522.7 | -789.3 | -905.8 | -1,137.0 | ||||
| Net cash outflow on acquisition of subsidiaries (-) | 0.0 | -15,691.0 | 0.0 | -15,691.0 | ||||
| NET CASH GENERATED BY INVESTING ACTIVITIES | -522.7 | -16,480.3 | -905.8 | -16,828.0 | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from share issue (+) | 0.0 | 0.0 | 0.0 | 4,913.7 | ||||
| Purchase of own shares (-) | 0.0 | -116.9 | 0.0 | -116.9 | ||||
| Repayments of short-term debt (-) | 0.0 | 0.0 | -104.6 | -1,346.4 | ||||
| Repayments of long-term debt (-) | 0.0 | 0.0 | 0.0 | -1,805.5 | ||||
| Withdrawals of long-term debt (+) | 0.0 | 0.0 | 0.0 | 14,737.5 | ||||
| Withdrawals of short-term debt (+) | 139.9 | 0.0 | 139.9 | 0.0 | ||||
| NET CASH USED IN CASH AND CASH EQUIVALENTS | 139.9 | -116.9 | 35.3 | 16,382.4 | ||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 513.9 | -16,698.2 | 346.2 | 27.8 | ||||
| Cash and cash equivalents at the beginning of the period | 1,433.3 | 18,299.1 | 1,601.0 | 1,573.1 | ||||
| Cash and cash equivalents at the end of the period | 1,947.2 | 1,601.0 | 1,947.2 | 1,601.0 | ||||
| STATEMENT OF CHANGES IN EQUITY | ||||||
| Note | Share capital | Share premium | Reserve for invested non-restricted equity | Retained earnings | Total | |
| Balance at July 1, 2014 | 215.5 | 247.2 | 12,409.1 | 125.2 | 12,997.0 | |
| Comprehensive income | ||||||
| Profit for the period | -1,069.2 | -1,069.2 | ||||
| Other comprehensive income, net of income tax | ||||||
| Currency translation differences | 23.6 | 23.6 | ||||
| Total comprehensive income for the year | -1,045.6 | -1,045.6 | ||||
| Share-based payments | 25.0 | 25.0 | ||||
| Acquisition by the company of its own shares | -118.7 | -118.7 | ||||
| Financial costs related to the share issue | 1.8 | 1.8 | ||||
| Total transactions with owners, recognised directly in equity | -116.9 | 25.0 | -91.9 | |||
| Balance at December 31, 2014 | 215.5 | 247.2 | 12,292.2 | -895.4 | 11,859.5 | |
| Balance at July 1, 2015 | 215.5 | 247.2 | 12,292.2 | -698.3 | 12,056.6 | |
| Comprehensive income | ||||||
| Profit for the period | -583.1 | -583.1 | ||||
| Other comprehensive income, net of income tax | ||||||
| Currency translation differences | 123.5 | 123.5 | ||||
| Total comprehensive income for the year | -459.6 | -459.6 | ||||
| Share-based payments | 45.6 | 45.6 | ||||
| Total transactions with owners, recognised directly in equity | 45.6 | 45.6 | ||||
| Balance at December 31, 2015 | 215.5 | 247.2 | 12,292.2 | -1,112.3 | 11,642.6 | |
| STATEMENT OF CHANGES IN EQUITY | ||||||
| Note | Share capital | Share premium | Reserve for invested non-restricted equity | Retained earnings | Total | |
| Balance at January 1, 2014 | 215.5 | 247.2 | 7,495.4 | -290.6 | 7,667.5 | |
| Comprehensive income | ||||||
| Profit for the period | -768.7 | -768.7 | ||||
| Other comprehensive income, net of income tax | ||||||
| Currency translation differences | 69.4 | 69.4 | ||||
| Total comprehensive income for the year | -699.3 | -699.3 | ||||
| Share-based payments | 94.5 | 94.5 | ||||
| Share issue | 5,001.2 | 5,001.2 | ||||
| Acquisition by the company of its own shares | -118.7 | -118.7 | ||||
| Financial costs related to the share issue | -85.7 | -85.7 | ||||
| Total transactions with owners, recognised directly in equity | 4,796.8 | 94.5 | 4,891.3 | |||
| Balance at December 31, 2014 | 215.5 | 247.2 | 12,292.2 | -895.4 | 11,859.5 | |
| Balance at January 1, 2015 | 215.5 | 247.2 | 12,292.2 | -895.4 | 11,859.5 | |
| Comprehensive income | ||||||
| Profit for the period | -394.6 | -394.6 | ||||
| Other comprehensive income, net of income tax | ||||||
| Currency translation differences | 93.7 | 93.7 | ||||
| Total comprehensive income for the year | -300.9 | -300.9 | ||||
| Share-based payments | 84.0 | 84.0 | ||||
| Total transactions with owners, recognised directly in equity | 84.0 | 84.0 | ||||
| Balance at December 31, 2015 | 215.5 | 247.2 | 12,292.2 | -1,112.3 | 11,642.6 | |
FINANCIAL STATEMENT AND AUDITOR'S REPORT
The complete financial statement of the Group and the mother company are attached to this announcement.
Helsinki March 4, 2016
M-BRAIN OY
Further Information
Kim Nyberg, Executive Chairman - Email: kim.nyberg@m-brain.com, Telephone number: +358-400-430538
Joakim Nyberg, Chief Strategy Officer, Email: joakim.nyberg@m-brain.com Telephone number +358-44-5389227
Certified Adviser Evli Bank Plc / Petteri Nurminen: Telephone number +358-40-5095665