Hubwoo Announces Financial Information 1st Half 2013

PARIS, Aug. 29, 2013 /PRNewswire/ -- Hubwoo (Euronext: HBW.NX), a leading collaborative business network provider, today announced financial information for H1 2013, in accordance with the "European Transparency Obligations Directive" financial disclosure requirements.

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Greg Mark, Hubwoo Chairman and CEO, commented: "We are pleased today to announce our audited profitability indicators for the first half of 2013, following the quarter-over-quarter revenue growth we announced at the end of Q2.  The Company has made significant strides in turning around its financial performance following the impacts of merger and acquisition activity in our industry in 2012 and Hubwoo's subsequent re-launching, re-branding, and re-building of our sales pipeline.  We remain committed to multi-enterprise collaborative business process innovation in the cloud and continue to invest in The Business Network by Hubwoo."

1.    Financial data

(*) EBITDA: Operating result before depreciation and non-recurring items.
(**) EBIT : Operating result after depreciation and non-recurring items.
(***) Percentages are calculated on exact numbers, not the rounded numbers shown.

Accounts for 1st Half 2013 have been reviewed by the auditors and were approved by the Hubwoo Board of Directors on August 27^th 2013.

H1 2013 revenue was EUR 15.5 million, lower (-11%) than H1 2012, as communicated in July.

The EBITDA profitability indicator, at EUR 2 million, was up significantly compared to H1 2012 (+53%) due to both personnel cost reduction and general cost reduction.  As a percentage of revenue, EBITDA this semester represented 13% of revenues and signified a turnaround on profitability following the impact of merger and acquisition activity in our industry in 2012. This achievement stems from structural re-organisation of the company and as such should be repeated in the coming quarters.

In line with expectations, the level of restructuring/exceptional costs was just above EUR 0.3 million.

EBIT was EUR 0.1 million, as compared to negative EUR 0.6 million in H1 2012, positive for the first time since 2007.

Free cash-flow was positive by EUR 1.1 million (compared to negative EUR 1.3 million in H1 2012). In addition to the strong EBITDA factor, this positive shift was due to improved working capital movement of -EUR 0.2 million (compared to –EUR 2.5 M in H1 2012).

Capital investment level was strong, at EUR 1.2 million, similar to H1 2012, as a sign that the general Profit and Loss improvement was not achieved at detriment of investments. These ongoing investments were mainly focused on The Business Network.

The cash position at close of the semester is EUR 6.6 million, stable as compared to the opening level of EUR 6.8 million.

Major H1 2013 events

Microsoft Alliance

On March 19, 2013, Hubwoo announced that it has teamed up with Microsoft Corporation to help tens of thousands of Microsoft Dynamics ERP customers with a step change in spend compliance and accounts payable automation.  Through the global alliance, the two companies will integrate and jointly market The Business Network for Microsoft Dynamics®, enabling businesses using Microsoft Dynamics AX with direct access to The Business Network by Hubwoo.

New Product Releases

New solution releases during the semester included:

• Easy Buy for SAP MM customers – a user interface skin that enables contract compliant requisitioning without implementing a separate eProcurement system.
• Automated supplier enablement – faster supplier nomination and automated matching against the million businesses on The Business Network, together with online management and status control across suppliers of all sizes.  Supplier onboarding "on the fly" enables purchase order transactions to automatically check the network for supplier matches and electronically onboard new suppliers.
• Network community tools – Enhancements to business profiles now include a combination of quantitative, qualitative, and third party data on businesses which enable spot buy and sourcing professionals to make quick and informed decisions and allows suppliers to market themselves where real commerce happens.

About Hubwoo (www.hubwoo.com)

Hubwoo delivers a step change in value to procurement, accounts payable and sales processes, increasing spend compliance and invoice automation. Powered by the worlds' busiest open and collaborative business network, Hubwoo connects companies to enable more productive B2B commerce. Through The Business Network, Hubwoo is equally focused on buyer and seller value, helping companies buy, sell and pay smarter. The Business Network connects companies to over one million businesses around the globe. Significant customers include BASF, Honeywell, Shell, Evonik, EDF, Nokia,  Nationwide, Michelin, Henkel, Statoil, CONSOL Energy, EcoPetrol, Campbell's, Burton's Foods, and The Dow Chemical Company.  Hubwoo's global partnerships include Microsoft, IBM, and Dun & Bradstreet.
Hubwoo has major operations in Paris, Houston, Chicago, Bonn, London, Manila, and Leuven.
Listed in Compartment C on the Euronext Paris Eurolist.
ISIN: FR0004052561, Euronext: HBW, Reuters: HBWO.PA, Bloomberg: HBW:FP

SOURCE Hubwoo