Hubwoo Announces 2013 Annual Results
- EBITDA at EUR 4.5M, up 104% as compared to 2012
PARIS, March 31, 2014 /PRNewswire/ — Hubwoo (Euronext: HBW.NX), a leading cloud procurement solution provider, today announced financial information for 2013, in accordance with the “European Transparency Obligations Directive” financial disclosure requirements.
Greg Mark, Hubwoo Chairman & CEO commented: “For the first time in the company’s history, we are pleased to report a Net Income positive result for the year 2013. Even in the face of declining top line Revenue, our scalable cost structure and strict financial controls are allowing us to manage through the decline in our Cloud Procurement Powered by SAP Software business. That being said, I am encouraged by the increased interest we are seeing in The Business Network by Hubwoo, eContent for both buy side and sell side applications, Invoice Match and Approve for collaborative AP processing, and Field Services Procurement for both the conventional and unconventional side of the Oil and Gas industry, both within our existing customer base as well as globally within net new customers.”
1. 2013 Key Results:
The Hubwoo Board of Directors approved the 2013 accounts on March 27, 2014, which will be formally certified by the Auditors in April.
EUR Million 2012 2013 change in % ----------- ---- ---- ---------- Revenue 33.4 30.8 -8% ------- ---- ---- --- EBITDA (*) 2.2 4.5 104% --------- --- --- --- Net Earnings -2.7 0.1 102% ------------ ---- --- --- Operating Cashflow -0.5 2.9 636% ------------------ ---- --- --- Cash 6.8 6.3 -8% ---- --- --- ---
(*)EBITDA: Operating result before depreciation and non-recurring items.
(**) 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.
Over the year, revenue declined by 8% compared to 2012, both in Services, due to delayed prospects’ business decisions for new projects, as well as SaaS**. While one time services from implementation projects declined by 19%, recurring SaaS** revenue was only slightly lower, 5% as compared to 2012.
Even in light of the above decline in revenue, the Company recorded a significant improvement in all profitability indicators, with EBITDA at EUR 4.5M, up EUR 2.3M as compared to 2012, and EBIT and Net Income both positive, with Net Income at EUR 0.1M, up EUR 2.8M as compared to 2012.
The Company implemented strict financial controls over its cost structure in the second half of 2012 and throughout the course of 2013. These corrective actions targeted all costs across all departments and geographies. This has delivered a significant improvement in gross margin, predominantly from Services. Additionally, IT operational streamlining has delivered further significant savings in 2013 as a consequence of the complete migration of the AchatPro platform onto the core Hubwoo platform.
In 2013, the company’s operating cash-flow was EUR 2.9M after restructuring and exceptional cash outlays of EUR 0.7M. Capital investment remains strong, at EUR 2.4M, and focused on the Company’s strategic solution suite, The Business Network by Hubwoo. The 2013 year-end cash position was EUR 6.3M, EUR 0.5M below the end of 2012.
2. 2013 major events:
Microsoft alliance agreement
On March 19, 2013, Hubwoo announced that it had teamed up with Microsoft Corporation to help tens of thousands of Microsoft 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.
GEP alliance agreement
On December 18, 2013 a global partnership agreement was reached with GEP. GEP is a leading global provider of procurement services and procurement software to Fortune 500 and Global 2000 enterprises worldwide. GEP and Hubwoo have agreed to leverage each other’s strengths to provide a joint source-to-pay solution native to cloud, mobile, and touch technologies, connected to over one million businesses.
New Product Releases
The Business Network leverages three of the most pervasive technology drivers of the 21st century – community, search, and ratings – on top of a leading platform of enterprise-class B2B commerce. During 2013, Hubwoo released significant functional enhancements to The Business Network.
-- Invoice & Payment Status - Network offering that eliminates invoice & payment status inquiries to Accounts Payable by bringing all of an enterprise's invoice status information to the cloud. -- Supplier Master Synchronization - New functionality in Hubwoo's Master Data Exchange integration framework that reduces data administration and increases accuracy. The new offering synchronizes suppliers' self-administered data between The Business Network by Hubwoo and back-office systems. -- Connections - A self-service supplier enablement solution on The Business Network. Through an invitation and acceptance step, companies can now easily connect to their trading partners for productive B2B commerce. This new function combines the intuitiveness that users know in making social network connections together with the security and transactional enablement required in B2B commerce. Connections is the latest in Hubwoo's best in class supplier onboarding capabilities that include managed supplier onboarding services, automated purchase order on-the-fly onboarding, and master data exchange directly with buyers' ERP systems. -- Catalog & Search - Enhancements to the search and filtering experience in the search engine, catalog update process enhancements, and improved forms for services categories, continue to improve the adoption of the world's largest managed B2B catalog solution. -- The Business Network Marketing Packages - Enhancements included additional granularity in displaying suppliers' regions served, in addition to commodity categories, certifications, and product details that allow companies to be easily discovered for new business opportunities.
About Hubwoo (www.hubwoo.com)
Hubwoo is a Source to Pay cloud solution provider that enables holistic spend management. Through a combination of the worlds’ busiest open and collaborative business network, and innovative procurement applications native to mobile technology, Hubwoo joins Procurement and Accounts Payable processes, connecting buying and supplying companies globally. Hubwoo helps businesses unlock their full savings potential in core and tail spend, from goods to services.
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, Microsoft, IBM, and Dun & Bradstreet.
Hubwoo has major operations in Paris, Houston, Chicago, Bonn, London, Manila, and Leuven. Hubwoo is listed in Compartment C on the Euronext Paris Eurolist.
ISIN: FR0004052561, Euronext: HBW, Reuters: HBWO.PA, Bloomberg: HBW:FP