The financial statements of secunet Security Networks AG and the secunet Group for the 2009 financial year have been amended due to a correction needed at the Czech subsidiary secunet s.r.o. After the company published the 2009 Annual Report with the Annual and Consolidated Financial Statements as at 31 December 2009 on 19 March 2010, it found that it needed to make corrections in respect of its Czech subsidiary secunet s.r.o., Prague, mainly relating to receivables and assets. The Management Board responded by immediately replacing the management of secunet s.r.o. and launching a full and comprehensive investigation into the circumstances, effects and consequences of the situation.
As a result of this detailed investigation, the company found that the actual asset and earnings position of secunet s.r.o. was significantly worse than described in the audited and certified Separate Financial Statements of secunet s.r.o. as at 31 December 2009. This in turn led to an impairment of around Euro 502,000 in the receivables of secunet Security Networks AG with the Czech subsidiary. In the interests of providing transparent, comprehensive and up-to-date information for all recipients of the Financial Statements, the Supervisory Board and Management Board of secunet Security Networks AG decided immediately to correct the 2009 Annual and Consolidated Financial Statements of secunet Security Networks AG and to produce a corrected and updated version of the 2009 Annual Report. At its meeting of 14 July 2010 the Supervisory Board approved the corrected and updated Annual Financial Statements of secunet Security Networks AG and the secunet Group and adopted the 2009 Annual Financial Statements of secunet Security Networks AG.
The correction to the 2009 Annual Report resulted in the following changes to the secunet Group’s key figures: Group revenue increased by 26% from Euro 50.7m in financial year 2008 (before correction: Euro 52.1m) to Euro 64.0m in 2009 (before correction: Euro 66.2m). Earnings before interest and tax (EBIT) rose by 136% from Euro 1.7m in 2008 (before correction: Euro 1.9m) to Euro 3.9m (before correction: Euro 4.4m). The net income of the secunet Group increased from Euro 1.6m in 2008 (before correction: Euro 2.2m) to Euro 2.4m last year (before correction: Euro 2.9m). Earnings per share rose accordingly from Euro 0.24 in 2008 to Euro 0.37 in 2009 (before correction: Euro 0.27/0.45). The order book at the end of the year remained unchanged at Euro 30.3m.
“As things stand we can rule out any further need for correction in the future,” concluded Dr Rainer Baumgart, Chairman of the Management Board of secunet Security Networks AG. “Moreover, the need for correction at our Czech subsidiary has had no notable negative impact on the group’s revenue and earnings plans for financial year 2010, nor on its longer-term prospects.”
secunet published the interim report as at 31 March 2010 at the same time as the corrected and updated 2009 Annual Report. Group revenue was up 19% year-on-year in the first three months of 2010, rising from Euro 11.2m to Euro 13.3m. The main contributor to the increase in revenue was the High Security business unit, which sells the SINA product line.
With expense items increasing only moderately and at a disproportionately low rate compared to the rise in revenue, earnings before interest and tax (EBIT) for the first three months of the current financial year were significantly better than for the corresponding prior-year period. After posting a figure of Euro -0.2m in the first quarter of 2009, the secunet Group achieved a positive EBIT of Euro 0.1m in the first quarter of this year. The result for the period improved from a loss of Euro 0.2m in the first quarter of 2009 to a profit of Euro 0.2m in the first quarter of 2010, with earnings per share rising accordingly from Euro -0.03 in the previous year to Euro 0.03 in the first three months of 2010.
The company’s cash flow from operating activities improved by Euro 4.2m, increasing from Euro -6.5m in the first quarter of 2009 to Euro -2.3m in the first quarter of the current financial year.
The company’s order book remained very high at 31 March 2010 at Euro 25.9m. The figure for the previous year was Euro 30.3m; the fall of 15% is due to the large projects that are currently in progress.
In view of the good start to 2010 and the high volume of orders, the Management Board has reaffirmed its forecast, originally published in March, for the current year. The positive influences of a growing market continue to be tempered by the uncertainty surrounding the debate over budget consolidation and the long-term consequences of the economic and financial crisis. The company’s Management Board therefore anticipates stable revenue and no change in earnings before interest and tax for 2010 as a whole.