The Board of Directors of TXT e-solutions, chaired by Mr Alvise Braga Illa, approved the consolidated report on operations as at 31 December 2012.
Revenues grew by 15.8%, from € 40.1 million to € 46.5 million. Net of Maple Lake acquisition, consolidated since Q4 2012, revenues grew by 12.5%. Sales of licences and maintenance totalled € 10.3 million, 22% as a percentage of revenues (€ 9.0 million in 2011).
International revenues rose from € 20.6 to € 24.4 million, up 18.4% and 53% as a percentage of total sales. The TXT Perform Division, which provides innovative Integrated Retail Planning software to large Retailers as well as to the Luxury and Fashion industries, contributed the most to this result. Net of Maple Lake acquisition, international revenues grew by 11.8%.
Both business areas made a positive contribution to the growth in group's revenues, with TXT Perform and TXT Next posting an increase of +19.2% (57% of group's revenues) and +11.5% (43% of group's revenues), respectively.
Gross Margin, net of direct costs, rose by 17.1% and grew to 51.9% as a percentage of revenues, compared to 51.4% in 2011, thanks to higher margins from the TXT Perform Division.
EBITDA rose by 21.0% to € 5.3 million, 11.4% as a percentage of revenues. All research and development costs were expensed in 2012 (in 2011, costs of € 1.3 million were capitalised).
Operating profit (EBIT) has provided a reason for satisfaction: it has surged by € 3.3 million to € 4.2 million (€ 0.9 million in 2011). As a percentage of revenues grew from 2.2% to 9.1%.
Net Income from operations amounted to € 4.2 million (9.0% of revenues), compared to € 0.4 million in 2011.
Net Income, after gains of € 0.9 million arising from the Earn-out on the sale of Polymedia, occurred in 2011, amounted to € 5.1 million. In 2011 Net Income was € 14.2 million, including an extraordinary gain for the sale of Polymedia of € 13.8 million.
After the payment for the acquisition of Maple Lake, Net Available Financial Resources was € 6.0 million (€ 12.5 million as at 31 December 2011). Consistent with the accounting principle IFRS 3, after the provision of the maximum earn-outs payable, subject to the achievement of set growth and profitability goals through the integrations between Maple Lake and TXT in 2013 and 2014 (€ 2.8 million), the Net Financial Position was positive to the tune of € 3.2 million as at 31.12.2012.
Shareholders’ Equity as at 31 December 2012 amounted to € 26.2 million, compared to € 20.3 million at 31 December 2011, mainly due to Net Income.
On 28.9.2012 TXT e-Solutions closed the definitive agreement to acquire 100% of Maple Lake, a specialist in Fashion Retail Planning. Through this acquisition TXT obtains a direct presence in North America, where it already has several important customers, and Australia. It also strengthens itself in Europe, thus becoming the leading global supplier of innovative Integrated Retail Planning solutions for the Fashion, Luxury and Retail markets.
Because the Maple Lake acquisition extends TXT’s geographical presence, the potential target market for TXT Perform will more than triple, to over 1,500 large retailers in North America, Europe and Australia.
Maple Lake brings to TXT approximately 50 new, large retail customers, operating with about 90 international brands, and many well-known names such as Aeropostale, Arcadia Group, Barneys New York, Columbia, Levi’s Strauss & Co and Steve Madden. After the acquisition, TXT, which already serves a large number of top brands, such as Louis Vuitton in Luxury and Auchan in global retailing, will have more than 400 Fashion Retail customers, managing well over 100,000 stores and channels worldwide.
The acquisition of Maple Lake entailed a net outlay of € 8.7 million and issued 238,854 new TXT shares to Sellers, as approved by the TXT Shareholders’ Meeting held on 6.12.2012.
TXT’s strategy is to accelerate the growth in functionality and the geographic reach of the TXT Perform platform, so that it truly becomes the software “brand of brands” for nonfood Integrated Retail Planning worldwide. TXT management expects both revenues and operating margins to increase as a result of this strategy and of the transaction, despite a challenging and recessionary economic backdrop in several markets, most notably in Italy.
