Columbus A/S
First half 2014: Significant improvement in net result

Columbus A/S 

15.08.2014 10:07

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                              Release no. 22/2014
                                        



In the first half of 2014 Columbus realized a significant improvement in net
result of 184% compared to first half 2013, mainly due to completed closure of
loss-making companies and increased earnings. Columbus maintains expectations
to 2014. 



Columbus has today published the Interim Report for first half of 2014, cf.
release no. 21/2014. 



Increased earnings in first half of 2014

In the first half of 2014 earnings before depreciation (EBITDA1) totaled DKK
36.3m, corresponding to an increase of 4.7% compared to the same period last
year. The net result in first half of 2014 increased by DKK 11.1m compared to
the same period last year. 



Revenues from consultancy increased by 7.5%

In the first half of 2014 Columbus continued the strong focus on increasing
earnings in the consultancy business, thus improving risk management, project
management and resource allocation. Consequently, invoicable hours increased
from 55% to 56%, and revenues from consultancy increased by 7.5% in first half. 



Growth in sale of industry solutions

Columbus' focus on sale of industry solutions to the industries food, retail
and manufacturing and on servicing customers even better has resulted in a
significant increase in revenues from Columbus' industry solutions. Revenues
from industry solutions increased to 76% of total revenues in first half of
2014, from DKK 240.4m in first half of 2013 to DKK 331.7m in the same period
this year. 



Increased capacity Global Delivery Center

Columbus continues optimizing the Global Delivery Center in India, and the
Global Delivery Center now has 82 consultants. In first half the Global
Delivery Center delivered 2,738 days of customer work and implementations,
corresponding to an increase of 39.3% compared to first half of 2013. 



US and Norway

In first half of 2014 Columbus experienced declines in both revenues and
earnings in the US due to lack of sales execution. The lack of sales has lead
to low performance in the sale of both external and Columbus licenses. Further,
the lack of product sale has negatively affected the revenues from consultancy. 



In Norway we lost a large number of consultants in Q2 due to heavy headhunting
activities from a competitor. This has lead to temporary extra costs in legal
fees, recruiting costs and free work when introducing new consultants. Columbus
is executing recovery plans for both subsidiaries. 



Improved cash position

In the first half of 2014 Columbus has invested DKK 7.6m in development
projects and tangible assets and we have expanded our business in the UK which
had a cash effect of DKK 9.8m. During the first half of 2014 we have been able
to repay all debt to credit institutions and for the first time in Columbus'
history dividend was paid out to the shareholders amounting to DKK 14.4m.
Despite this Columbus still managed to improve the cash position with DKK 11.2m
during the first half of 2014 due to the operational earnings and due to a
reduction in receivables. 





DKK '000                                H1 2014  H1 2013     2013
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Columbus licenses                        11,416   12,853   31,052
Columbus subscriptions                   15,423   14,490   29,102
External licenses                        32,114   50,599   88,270
External subscriptions                   58,413   76,760  140,258
Consultancy                             309,720  288,249  567,614
Other                                     9,332   10,639   23,509
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Net revenue                             436,418  453,590  879,805
EBITDA before share-based compensation   36,283   34,628   72,084
Share-based compensation                 -1,294     -368   -1,960
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EBITDA                                   34,989   34,260   70,124
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Expectations to 2014

Columbus maintains the announced expectations to 2014, and thus Columbus
expects revenues in the level of DKK 900m and an EBITDA1 in the level of DKK
80m. 








Ib Kunøe                                                   Thomas Honoré

Chairman                                                 CEO

Columbus A/S                                           Columbus A/S





For further information, please contact:

CEO Thomas Honoré, T: +45 70 20 50 00.



Translation: In the event of any inconsistency between this document and the
Danish language version, the Danish language version shall be the governing
version. 





1EBITDA before share-based compensation
News Source: NASDAQ OMX



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Language:     English
Company:      Columbus A/S
              
               
              Denmark
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ISIN:         DK0010268366
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