08 DIRECTORS’ REPORT
ACQUISITIONS Visma acquired the following entities in 2013:
In the Board of Directors opinion, the financial statements for the year present fairly the Group’s financial position and results for 2013.
•• Lavit Oy, Finland February 2013 •• Maventa Oy Finland (remaining shares) February 2013 •• Pdata AB, Sweden, March 2013 •• MainPartner AS, Norway, April 2013 •• InExchange Factorum AB, Sweden, July 2013 •• Duetto Group Oy, Finland, August 2013 •• Duetto-ohjelmat Oy, Finland, August 2013 •• Ordna Ekonomistyrning Sverige AB, Sweden, September 2013 •• Information Factory AB, Sweden, November 2013 •• InStore IT Vest AS, Norway, December 2013
In 2013, the parent company Visma AS had a profit of NOK 701.3 million (213.5). PROPOSED ALLOCATION OF THE PROFIT FOR THE YEAR (NOK 1 000) Transferred to retained earnings Total allocated
CASH FLOW AND BALANCE SHEET Visma generated a strong cash flow of NOK 1 224.5 million from operational activities in 2013 (1 084.5), supported by sound financial management and improvements in working capital.
ASSESSMENT OF FINANCIAL STATEMENTS The financial statements for the year have been presented on the assumption that the company is a going concern, and based on the financial statements and earnings forecasts for 2014 the Board of Directors confirms that this assumption is applicable.
Cash flow from investing activities was NOK -409.4 million (-282.5), of which NOK 326.8 million related to acquisitions (200.8).
Visma reports in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU. The financial statements for the parent company have been prepared in accordance with the Norwegian Accounting Act 1998 and generally accepted accounting principles (NGAAP). The paragraph below describes the full year 2013 figures, with corresponding figures for 2012 in brackets. INCOME STATEMENT The Visma Group achieved revenue growth of 12.2 per cent to NOK 6 452 million in 2013 (5 749). Organic growth was 8.4 per cent. Even the currency adjusted rate of 5.8 per cent indicated solid revenue development across the business. Visma Software SMB remained the largest revenue contributor and accounted for 40.3 per cent of revenue, followed by Visma Software GLA at 32.2 per cent and Visma BPO 27.5 per cent. Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 18.9 per cent to NOK 1 325.1 million (1 114.3), and the EBITDA margin increased to 20.5 per cent (19.4). Visma Software SMB accounted for 57 per cent of total EBITDA, followed by Visma Software GLA 28.9 per cent and Visma BPO at 14.1 per cent. Depreciation and amortization amounted to NOK 373.3 million in 2013 (366.1), with the increase primarily explained by acquisitions adding to the asset base. EBIT increased by 27.2 per cent to NOK 951.9 million (748.2). Net financial items increased as a result of increased interest and financial expenses, and profit before tax increased by 32.9 per cent to NOK 724.2 million (545.1). Taxes amounted to NOK 157.1 million (129.4), generating a profit after tax and non-controlling interests of NOK 564.2 million (414.3).
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Cash flow from financing activities amounted to NOK -270.1 million (-371.9) In 2013 Visma has refinanced and extended its senior debt facilities, and more institutions have become member of the debt syndicate. The financing benefits Visma with increased operational flexibility. Cash and cash equivalents increased to NOK 2 246.4 million (1 559.4), which the Board of Directors considers to be sufficient given the current and expected activity level. Total assets increased to NOK 9 009 million at the end of 2013 (7 820), mostly related to businesses acquired during the year and to variance in currency exchange rates. The majority share of the equity increased to NOK 1 952.3 million at the end of 2013 (1 469.6), mainly reflecting the profit for the year and payment of group contribution to Archangel AS. The equity ratio increased to 22.1 per cent (18.9). Accounts receivable totalled NOK 920.3 million at 31 December, 2013 (789.9). Customers’ average credit period remained at 39 days in 2013. Visma has made provisions of 2.3 per cent of accounts receivable (excluding VAT), to cover potential losses on doubtful receivable. The allocation covers all trade receivables older than 180 days. The company closely monitors accounts receivable, and the provision is considered adequate given that the company’s average credit period is below the IT-industry average. REVIEW OF THE BUSINESS AREAS Visma Software SMB delivers ERP, CRM, HR/payroll, and e-commerce software to small and medium-sized businesses in Norway, Sweden, Finland the Netherlands and Denmark. In addition, Visma Software SMB provides Accounts Receivables Management services, e-Invoicing solutions and hosting services throughout the Nordic region. In 2013, Visma Software SMB further strengthened its position as a leading SaaS supplier with strong growth in both revenue and number of new subscriptions. During 2013, growth in SaaS revenues was 35.7
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