The Board of Directors of TXT e-solutions, chaired by Mr Alvise Braga Illa, approved the first quarter financial results for the period ended 31 March 2013.
Highlights:
- Consolidated Revenues: € 13.2 million (+13.8%), 51% from abroad.
- EBITDA: € 1.5 million (+0.3% compared to Q1 2012).
- Net profit: € 0.9 million (+1,8% compared Q1 2012 Net profit from operations, net of non-recurring capital gain).
- Net Financial Position: € 7.5 million (€ 3.2 million at 31 December 2012).
- Revenues grew by 13.8%, from € 11.6 million to € 13.2 million. Sales of licences and maintenance totalled € 3.2 million, 24% as a percentage of revenues, up +29.1% compared to Q1 2012.
International revenues rose from € 5.7 to € 6.7 million, up 18.1% and 51% 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 and acquisition of Maple Lake, contributed the most to this result.
Gross Margin, net of direct costs, rose by 16.7% and grew to 52.5% as a percentage of revenues, compared to 51.3% in Q1 2012.
In the quarter several new initiatives pushed up both Research and Development costs (+27.0%) and Commercial costs (+23.1%) to support the planned growth. EBITDA was substantially in line with Q1 2012: € 1.5 million, 11.0% as a percentage of revenues. All research and development costs were expensed in 2013 and 2012.
Net Income amounted to € 0.9 million, 7.0% as a percentage of revenues, in line with last year, excluding the extraordinary 2012 capital gain. Lower tax charges balanced higher amortization costs on Maple Lake acquisition. In Q1 2012 non-recurring profit included an extraordinary gain of € 0.7 on the sale of KIT Digital shares, following the divestiture of Polymedia.
Net Financial Position, € 3.2 million positive at 31 December 2012, has risen to € 7.5 million at 31 March 2013, due to good quarterly cash generation and working capital reduction. Consistently with 2012 and according to accounting principle IFRS 3, Net Financial Position includes a provision of € 2.8 million of the maximum earn-outs payable, subject to the achievement of set growth and profitability goals in 2013 and 2014. Net of this provision, Net Available Financial Resources was € 10.3 million.
Shareholders’ Equity as at 31 March 2013 amounted to € 27.0 million, compared to € 26.2 million at 31 December 2012, mainly due to Net Income.
Both business areas made a positive contribution to the growth in group's revenues, with TXT Perform and TXT Next posting an increase of +22.7% (59% of group's revenues) and +3.1% (41% of group's revenues), respectively. Net of Maple Lake acquisition, revenues grew by 2.2%.
Alvise Braga Illa, Chairman of TXT Group, stated: “As Shareholder and Chairman, I confirm once more our objectives of international growth and value generation for the company, our customers, our employees and our investors, also at the light of Q1 2013 financial results”.
