The result associates of €2.8 million in H1 2013 included a one off gain of €2.5 million as the result of the remeasurement of the carrying value of our previously held interest in the associate mapIT to its fair value when we acquired the remaining 51% interest.
Income taxes
The net income tax charge in all the jurisdictions in which we operate was €1.4 million in H1 2013, a decrease compared to last year (H1 2012: €2.2 million). The effective tax rate in H1 2013 was 20.0% compared to 22.8% in H1 2012.
Cash flow
The cash flow generated from operations was €55 million versus €35 million in the same period last year. The increase in cash flow was driven by reduced working capital utilisation. Interest paid decreased year on year to €1.5 million in H1 2013 compared to €4.7 million in H1 2012. We received a net corporate income tax refund of €84 million in H1 2013 mainly relating to the refund from a settlement of prior years’ tax discussions as disclosed in our 2012 Annual Report.
The cash flow used in investing activities was €45 million, an increase of €21 million from €24 million in the same period last year mainly due to larger investments in R&D related projects, the acquisition of technology assets in the fitness space, as well as the remaining equity interest in mapIT.
Related party transactions
For related party transactions please refer to note 9 of our interim financial report.
Principal risks and uncertainties H1 2013
A detailed discussion of the group’s principal risks and uncertainties can be found in the 2012 Annual Report.
In the 2012 Annual Report, we described the key business risks which we are aware of, and which could have a material adverse effect on our financial position and results.
Those risk categories and risk factors are deemed incorporated and repeated in this report by reference.
Other risks not known to us, or currently regarded not to be material, could later turn out to have a negative material impact on our business, objectives, revenues, income, assets, liquidity or capital resources.
Responsibility statement
The Board of Management hereby declares that, to the best of their knowledge:
- the interim financial statements prepared in accordance with IAS 34, “Interim Financial Reporting”, give a true and fair view of the assets, liabilities, financial position, profit and loss of the company and the undertakings included in the consolidation taken as a whole; and
- the interim management board report gives a fair review of the information required pursuant to section 5:25d(8)/(9) of the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).
Harold Goddijn, CEO
Marina Wyatt, CFO
Alain De Taeye
25
July 2013
Consolidated condensed statement of income
| (in € thousands) | Q2 ’13 | Q2 ’12 | H1 '13 | H1 '12 | ||||||||||||
| Revenue | 250,246 | 261,662 | 451,833 | 494,563 | ||||||||||||
| Cost of sales | 122,386 | 125,643 | 211,508 | 244,434 | ||||||||||||
| Gross profit | 127,86 | 136,019 | 240,325 | 250,129 | ||||||||||||
| Research and development expenses | 43,627 | 42,593 | 81,808 | 80,903 | ||||||||||||
| Amortisation of technology & databases | 19,392 | 21,096 | 38,3 | 42,333 | ||||||||||||
| Marketing expenses | 11,25 | 15,576 | 21,937 | 28,134 | ||||||||||||
| Selling, general and administrative expenses | 43,635 | 41,04 | 86,805 | 81,294 | ||||||||||||
| Stock compensation expense | 2,308 | 1,78 | 3,78 | 3,676 | ||||||||||||
| Total operating expenses | 120,212 | 122,085 | 232,63 | 236,34 | ||||||||||||
| Operating result | 7,648 | 13,934 | 7,695 | 13,789 | ||||||||||||
| Interest result | -263 | -3,043 | -1,38 | -6,524 | ||||||||||||
| Other finance result | -1,299 | -475 | -2,294 | 2,101 | ||||||||||||
| Result associates | 2,56 | 43 | 2,813 | 234 | ||||||||||||
| Result before tax | 8,646 | 10,459 | 6,834 | 9,6 | ||||||||||||
| Income tax | -977 | -1,544 | -1,364 | -2,189 | ||||||||||||
| Net result | 7,669 | 8,915 | 5,47 | 7,411 | ||||||||||||
| Net result attributable to: | ||||||||||||||||
| Equity holders of the parent | 7,301 | 8,863 | 5,033 | 7,33 | ||||||||||||
| Non-controlling interests | 368 | 52 | 437 | 81 | ||||||||||||
| Net result | 7,669 | 8,915 | 5,47 | 7,411 | ||||||||||||
| Basic number of shares (in thousands) | 221,904 | 221,895 | 221,899 | 221,895 | ||||||||||||
| Diluted number of shares (in thousands) | 224,052 | 221,993 | 222,224 | 221,97 | ||||||||||||
| EPS, € basic | 0.03 | 0.04 | 0.02 | 0.03 | ||||||||||||
| EPS, € diluted | 0.03 | 0.04 | 0.02 | 0.03 | ||||||||||||
| Consolidated condensed statement of comprehensive income | ||||||||||||||||
| (in € thousands) | Q2’13 | Q2’12 | H1 '13 | H1 '12 | ||||||||||||
| Net result | 7,669 | 8,915 | 5,47 | 7,411 | ||||||||||||
| Other comprehensive income: | ||||||||||||||||
|
Items that may be reclassified subsequently to
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| Currency translation differences | -4,123 | 3,239 | -4,391 | 2,03 | ||||||||||||
| Items that will not be reclassified to profit or loss | ||||||||||||||||
| Actuarial gains on defined benefit obligations | 220 | 0 | 220 | 0 | ||||||||||||
| Other comprehensive income for the period | -3,903 | 3,239 | -4,171 | 2,03 | ||||||||||||
| Total comprehensive income for the period | 3,766 | 12,154 | 1,299 | 9,441 | ||||||||||||
| Attributable to: | ||||||||||||||||
| Equity holders of the parent | 3,587 | 11,909 | 1,24 | 9,103 | ||||||||||||
| Non-controlling interests | 179 | 245 | 59 | 338 | ||||||||||||
| Total comprehensive income for the period | 3,766 | 12,154 | 1,299 | 9,441 | ||||||||||||
|
The items in the statement above are presented net of tax. |
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