Hubwoo announces financial information for H1 2014
- Revenue down 11% as compared to H1 2013
- EBITDA at 14% of Revenue, stable as compared to H1 2013
- EBIT positive
PARIS, Aug. 28, 2014 /PRNewswire/ -- Hubwoo (Euronext: HBW.NX), a leading provider of comprehensive spend management and business process collaboration solutions, today announced financial information for H1 2014, in accordance with the "European Transparency Obligations Directive" financial disclosure requirements.
Greg Mark, Hubwoo CEO commented: "Although we are disappointed with the decline in SaaS revenue, we are neither surprised nor alarmed as we have been communicating for the past several semesters that this would occur. We are pleased, however, with the management of our costs leading to EBITDA at 14% of Revenue and an EBIT positive result. Net new sales remains our primary focus in 2014 as we work to reverse this recent trend in Revenue decline. Additionally, investment remains strong in our own intellectual property, especially around the automation of Source-to-Settle business processes."
- Financial data
| EUR Million |
2013 |
H1 2013 |
H1 2014 |
Variation in % (***) H1 2014 vs H1 2013 |
| Revenue |
30.8 |
15.5 |
13.8 |
-11% |
| EBITDA (*) |
4.5 |
2.0 |
1.9 |
-9% |
| EBIT (**) |
0.1 |
0.1 |
0.1 |
26% |
| Net Earnings |
0.1 |
-0.3 |
-0.2 |
44% |
| Operating Cashflow |
2.9 |
1.1 |
1.5 |
34% |
| Cash |
6.3 |
6.6 |
5.9 |
-10% |
| (*) EBITDA: Operating result before depreciation and non-recurring items. |
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| (**) EBIT: Operating result after depreciation and non-recurring items. |
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| (***) Percentage are calculated on exact numbers, not the rounded numbers shown. |
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Accounts for 1st Half 2014 have been reviewed by the auditors and approved by the Hubwoo Board of Directors on August 26th 2014.
H1 2014 revenue was EUR 13.8 million, lower (-11%) than H1 2013, as previously communicated in July.
The EBITDA line, at EUR 1.9 million, is stable compared to H1 2013. As a percentage of revenue, EBITDA this semester represented 14% of revenues, and has been marking a significant turnaround on the profitability side for the past two semesters. This achievement stems from continued cost control operated within the company and as such should be replicated in the next quarters.
The company was also able to release provisions on various risks and litigation, due to favourable outcome on these matters. The net restructuring/exceptional line result is positive by EUR 0.2 million.
EBIT was EUR 0.1 million, also continuing this profitability indicator over the last quarters. Free cash-flow was positive by EUR 1.5 million, improving slightly on H1 2013. Beside the strong EBITDA figure, this movement is explained by a dramatically improved working capital movement of -EUR 0.2 million.
Capital investment in Hubwoo intellectual property remained strong at EUR 1 million, similar to H1 2013, as a sign that the general Profit and Loss improvement was not achieved at the detriment of strategic investments. These investments were essentially focused on The Business Network.
The Company has also reduced the level of financial debt, from EUR 2.1 million at end 2013 to EUR 1.2 million in H1 2014.
The cash position at close of the semester is EUR 5.9 million, substantially stable when compared to the opening level of EUR 6.3 million.
Major H1 2014 events
GEP Alliance
On February 27th, Hubwoo and GEP signed an Alliance Agreement to leverage each other's strengths to provide a joint source-to-pay solution native to cloud, mobile, and touch technologies, and already connected to over one million businesses.
The joint solution will combine GEP's game-changing sourcing and procurement solution, SMART by GEP, a comprehensive, unified source-to-pay platform -- including spend analytics, sourcing, contract management, supplier performance management and purchasing – native to cloud, touch and mobile technologies, with The Business Network by Hubwoo, a B2B collaboration and catalog management hub that integrates with any ERP or procurement system and enables mass supplier onboarding. Suppliers on The Business Network by Hubwoo will be able to collaborate on orders, invoices, RFQs, catalogs and other processes directly with buyers on the SMART by GEP platform.
Board of Directors update
The Hubwoo General Assembly, held on June 19th 2014, voted the renewal of Gregory A. Mark's Director mandate, and he was subsequently appointed by the Board as Chairman and General Manager of the company.
The General Assembly also appointed Mrs. Deborah Fay, Hubwoo Senior Vice President of Human Resources and General Counsel, as Director.
About Hubwoo (www.hubwoo.com)
Hubwoo connects companies by providing comprehensive spend management and collaborative business process automation solutions for both goods and services, in the cloud, through The Business Network.
Our solutions integrate with any ERP or procurement system, providing our customers with an easy to use solution which drives adoption, compliance and savings.
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 GEP, 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
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SOURCE Hubwoo
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