Warsaw, August 13, 2008
Press release
QII 2008 – operational profit of PLN 7 million
In 2 quarter of 2008 the Sygnity Group indicated net revenues amounting to PLN 295.5
million, operational profit of PLN 7 million, as well as net profit of nearly PLN 8.5
million. These results were influenced at the operational and net level of PLN 6.6 million
by transactions of sales of shares in KPG and Geomar companies as well as of organised
part of the company dealing with automated logistics systems. Thanks to the effects of
current restructuring and order portfolio of PLN 790 million, the Management Board
anticipates that, similarly as in Q2 2008, the Group will recognise operational profit in
the next quarters of 2008.
Also rising margins in separate sectors, increase of share of services in income structure, and
further activity cost optimisation influenced results in the Q2 2008.
Data in PLN thousand
Revenues
Operational profit (loss)
Operational
profit
(loss)
without
restructuring deductions/income from
assets’ sales
Net profit (loss)
Q2 2007
360,113
(54,389)
Q2 2008
295,432
7,047
(35,889)
413
(51,317)
8,468
Data in PLN thousand
Revenues
Operational profit (loss)
Operational
profit
(loss)
without
restructuring deductions/income from
assets’ sales
Net profit (loss)
H1 2007
625,415
(72,407)
H1 2008
506,690
(17,797)
(53,907)
(24,431)
(73,553)
(16,709)
Thanks to the above mentioned results, reached in the Q2 2008 the Group decreased its
operational loss for the first half of 2008 to PLN 17.8 million and reached revenues of more
than PLN 500 million. Amount of these revenues in this period of time results from sales
transactions of some assets, that in total decrease sales of the Group in 2008 by more than
PLN 55 million, while in H1 2008 they decreased it by more than PLN 9 million.
In regard to restructuring of activities, the Group continued in Q2 2008 sales of further
activities, which would have not guarantee in the future satisfactory increase, yet are able to
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improve investor’s offer, who concentrates on the given market segment. Sygnity sold its
shares in KPG and Geomar companies for PLN 17 million as well as organised part of the
company dealing with automated logistics systems for PLN 2.1 million. In Q3 2008 the
Company sold also organised part of the company dealing with service of IT systems of the
National Health Fund for nearly PLN 21 million. Totally, the Group sold assets amounting to
more than PLN 72 million (in 2008 for more than PLN 44 million). The Management Board
of Sygnity plans in Q3 2008 at least one transaction of sales of the next activity. Planned sale
of assets till end of 2008 should bring revenues amounting to minimum another PLN 30
million.
Sygnity carried out also further extensive activities towards increase of efficiency. The
Company implements tools supporting project management: an application supporting
management and reporting the status of undertaking implementation has been launched as
well as application allowing for effective work management in projects and project portfolio
management. Unified corporate standards in operational activity, among other in controlling,
HR, wages, etc., were implemented. In regard to sales and production sector, a motivation
system has been launched, bound with efficiency evaluation at given post. The Company
commenced also implementation of unified ERP system.
In Q2 2008 the Management Board of Sygnity carried out activities aiming at decrease of
debts, which finally led to improvement of Group’s financial condition. Compared with end
of Q1 2008 the Group decreased as of the day of publication of financial statements amount
of debt from loans by another PLN 25 million. Sygnity uses currently loans covered with
signed agreements, but at the same time plans its financing structure till end of March 2009
together with banks.
In Q2 2008 the Company signed another contracts, among other with Police Chief for supply
of more than mobile terminals together with supporting software, with Telekomunikacja
Polska SA for service and maintenance of IT Network Systems supporting work of the
greatest Polish telecommunication service provider, with the Ministry of Labour and Social
Policy for updating and maintaining efficiency of POMOST software (OU POMOST) and
Central Statistical Application (SAC), with Lubzel (PGE Group) for CSS and CMS systems,
for CMS, D3S and ELMS systems in Energa Operator, and with PKP Informatyka for supply
of network solutions. Sygnity started also co-operation with Banco Espirito Santo Investment
Poland in reagrd to supply of transaction system and application for obligatory reporting. In
Q2 2008 the Group registered also first revenues from implemented project for Poczta Polska,
related to 3rd stage of implementation of Integrated Data Transmission System.
The Company developed, in accordance with earlier announcements, co-operation with its
partners. Sygnity signed an agreement with Microsoft – three-year Partner Business Plan,
which aims at strengthening of co-operation between two companies in regard to sales of
Microsoft products and related services for large and medium enterprises and institutions in
Poland. Partners anticipate significant increase of sales in three sectors: industry, utilities, and
public. Parties of the agreement assume that thanks to the new form of co-operation Sygnity
will benefit from sales of Microsoft products and services at about USD 60 million till 2011,
which means 7 times more than in 2007. The Group signed also agreement with Ness
Technologies Inc. company, international supplier of IT solutions and services. Its main goal
is to co-operate mutually in Central and Easter Europe in offering and implementation of IT
solutions at selected clients. Partners plan an expansion to Western Europe markets, too.
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Thanks to the restructuring programme the Management Board of the Company plans
achieving in 2008 significant increase of margins in all sectors. This will allow for increase of
efficiency of the Sygnity Group in the forthcoming years.
***
Sygnity was created through combination of competencies of ComputerLand and Emax
companies, bringing new quality into the Polish IT market. The Company offers own
solutions, supplemented by renowned products and technologies. It provides full range of
services: from consulting, through implementation to outsourcing of IT projects for large and
medium enterprises and the most important sectors of economy and public administration
units. Group consists at the moment of more than ten companies in Poland and abroad. THE
biggest are: ARAM – realising IT projects for public administration, Projekty Bankowe
Polsoft – software producer for banking and finance sector and software testing centre,
WINUEL – producer of solutions for energy sector, Max Elektronik SA – producer of
software based on modern IT technologies (including Java Computing).
_____________________________________________
In order to obtain additional information please refer to:
Michał Michalski
Public Relations Director Sygnity SA
Al. Jerozolimskie 180
02-486 Warszawa
phone: (+48 22) 571 11 25, mobile: +48 504 142 034
fax (+48 22) 571 11 01
e-mail: mmichalski@sygnity.pl
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