Hubwoo Announces 2011 Annual Results

PARIS, March 29, 2012 /PRNewswire/ -- Hubwoo (Euronext: HBW.NX), a leading global provider of Cloud Procurement solutions powered by SAP® software, today announced financial information for 2011, in accordance with the "European Transparency Obligations Directive" financial disclosure requirements.

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Greg Mark, Hubwoo Chairman & CEO, commented: "We are pleased to report double digit EBITDA growth for the third year in a row.  The company looks forward to leveraging the scalable cost structure we have built as we now shift our focus to top line revenue growth."

1.     2011 Key Results:

Hubwoo Board has approved 2011 audited accounts on March 28, 2012, and will be formally certified in April.  

Revenues

Over the year, revenue declined slightly (-3%) compared to 2010 due to the combined effect of value losses on certain customer contracts re-negotiated in 2010 and first half 2011, and to the reorganisation process of the sales force in Europe. These effects were particularly visible in the evolution of the SaaS(***) component of revenue.  Services revenue continued to grow steadily from a combination of both Hubwoo and SAP technology customers.

We remain cautious on Q1 2012 revenue expectations, as a consequence of the combination of seasonality in supplier revenues and delays in new projects signatures and their implementations.

Profitability

Following continued efforts in cost optimisation, restructuring of specific areas of the business and reallocation of resources in those areas capable to deliver stronger growth and profitability, EBITDA in 2011 showed further improvement from EUR 4 million in 2010 to EUR 4.5 million in 2011. EBIT(**) remained negative at a level of - EUR 0.8 million, after accounting for EUR 2.2 million restructuring and exceptional costs.

Goodwill

In accordance with IFRS, a goodwill impairment test has been conducted by analyzing the market and its growth potential and by evaluating the company's fair market value. Since the fair value is higher than the book value, no goodwill depreciation has been accounted for.

Cashflow

In 2011, the company's operating cash-flow was EUR 1M, after consideration of restructuring and exceptional cash outs of EUR 1.8M. Working capital change was negative (- EUR 1.2 million), mainly as an effect of accelerated customer invoicing at the end of the year. Hubwoo had raised EUR 4.25 million in Q1 2011. This capital raise was mainly designed to accelerate the company's financial transformation and the associated cost reductions. The year-end cash position was EUR 5.5 million, EUR 1.8 million above the end of 2010 cash of EUR 3.7 million.

2.     2011 major events:

New Buyer Customers

Over 2011 Hubwoo signed prestigious new customer contracts including 50Hertz, TUV SUD, LANXESS, Nationwide, Marathon Petroleum Corporation, Bombardier, Wilo, Caterpillar, Pacific Rubiales, Grace, Kerry, RNLI, Rolls Royce, Metropolitan Police Service, Fujitsu.

The Business Network Growth

Supplier community volumes surpassed 200,000 active suppliers at the end of 2011, up over 50% from 2010.  Critical mass in suppliers increases business value for buyer customers, as well as provides a long term vehicle for incremental network revenue streams.

Capital Increase in Q1 2011

In Q1 2011 Hubwoo launched a capital increase, that took place between the 16th of February and the 2nd of March 2011 and resulted in a total demand of around 7.2M EUR which corresponds to a subscription rate of 169%.  This over subscription allowed the operation to be extended to 4.25M EUR.

About Hubwoo (www.hubwoo.com)

Hubwoo is the world's leading provider of on-demand procurement solutions for the SAP community.  The Company manages The Business Network with over 200,000 active suppliers and over 150 major international corporations as buyer customers of which 50+ are in the Global 1000.  Significant customers include Honeywell, Shell, Evonik, EDF, Nokia, Monsanto, Michelin, Henkel, Statoil, The Hershey Company, CONSOL Energy, EcoPetrol, Carl Zeiss, Burton's Foods, and The Dow Chemical Company.  

Hubwoo has major operations in France, multiple U.S. centers, Germany, the U.K., Philippines, Belgium, and Eastern Europe.

Listed in Compartment C on the Euronext Paris Eurolist.
ISIN: FR0004052561, Euronext: HBW.NX, Reuters: HBWO.PA, Bloomberg: HBW:FP

(*)EBITDA: Operating result before depreciation and non-recurring items.

(**) EBIT: Earnings before interest and taxes

(***) SaaS is a model of delivering technology where a software solution is hosted ,on-demand, as a service for its customers.  Clients do not buy the technology but rather pay a subscription fee to use it.

SOURCE Hubwoo