Catalis SE: Quartely Report Q1/ 2015

Catalis SE Financial Report for the period from 1. January 2015 to 31. March 2015

LA Waalre (pta027/21.05.2015/19:45 UTC+2) Catalis SE Financial Report for the period from 1. January 2015 to 31. March 2015:
Revenue Eur 6.69 m, EBIT Eur 0.07m, profit after tax Eur 0.86m

La Waalre, May 21th, 2015 - Catalis SE hereby publishes the financial figures for the first quarter 2015.

The Catalis Group delivered a performance comparable to that of the previous year. The group delivered revenues of Eur 6.69 m (Q1 2014: Eur 6.70 m) and a profit after tax of Eur 0.86 m (Q1 2014: Eur 0.22 m). The first quarter is often the softest period of trading for the group but we also found that certain areas of our business experienced weaker client demand than expected.

Trading and outlook of Kuju Entertainment and Testronic Laboratories

Kuju Entertainment - our video games development business, in the context of difficult trading conditions, recorded revenues of Eur 1.09 m (Q1 2014: Eur 1.88 m), and recorded a small loss, with an EBIT of -Eur 0.02 m (Q1 2014: profit of Eur 0.13 m). Looking ahead to the full-year, Kuju remains positive on the industry outlook. The market for next-generation consoles has started to mature - an estimated 33 million next-generation consoles have now been sold worldwide - and Kuju remains in position to benefit from the demand for new content.

Testronic Laboratories - our quality assurance business - delivered a steady performance over the first quarter, with revenues of Eur 5.60 m (Q1 2014: Eur 4.74 m) and an EBIT of Eur 0.40 m (Q1 2014: Eur 0.47 m). This revenue growth is a trend the business expects to continue over the course of the year.

Review of Earnings

In the first quarter of 2015, total revenues of Catalis Group amounted to Eur 6.7m (2014: Eur 6.7m). Total expenses amounted to Eur 6.6m, resulting in an EBIT of Eur 0.069m (2014: Eur 0.3m). After accounting for financial income of Eur 0.8m, the company's pre-tax result amounted to Eur 0.9m. Exchange gains of Eur 0.9m were recognised as a result of the retranslation of goodwill denominated in sterling and net income for the period amounted to Eur 0.9m (2014: Eur 0.2m). This equals earnings per share of Eur Cent 13.7 (2014: Eur Cent 3.4)

Testronic Laboratories
Testronic has seen revenues for the first quarter of 2015 grow by 18% to Eur 5.6m. Testronic generated an EBIT after non-recurring costs of Eur 0.4m (2014: Eur 0.5m).

Kuju Entertainment
In the first quarter of 2015, Kuju generated revenues of Eur 1.1m (2014: Eur 1.8m), representing a decrease of 42%. EBIT for the period showed a loss and amounted to Eur 0.017m (2014: profit of Eur 0.1m).

Review of Statement of Financial Position

Our objective is to operate with a strong balance sheet to protect the business and facilitate future growth. As of March 31, 2015, total assets of Catalis Group amounted to Eur 25.3m representing an increase of Eur 0.2m from Eur 24.5m at December 31, 2014.

The company's non-current assets were increased to Eur 18.0m (31.12.2014: Eur 17.1m), attributable to the retranslation of sterling dominated goodwill balances. Current assets decreased slightly from Eur 7.5m at the end of 2014 to Eur 7.3m at the end of March 2015. This is mainly due to reduced trade receivables (Eur 4.2m vs. Eur 4.5m).

Our financing and liquidity position remained strong throughout the period. On the equity and liabilities side, the company's total equity was Eur 9.2m (31.12.2014: Eur 8.4m). This equals Eur Cent 13.4 per share (2014: Eur Cent 3.4), based on the number of shares outstanding of 6,294,141 (2014: 6,242,333).

Long term liabilities increased to Eur 2.6m from Eur 2.5m in 2014, attributable to the movement in interest on the long-term loans. Current liabilities decreased from Eur 13.7 to Eur 13.4m mainly driven by a reduction in the tax and social security balances, off set by an increase in the bank overdraft.

Review of Cash flow

The Group recognised an operating cash outflow of Eur 0.2m (2014: inflow of Eur 0.5m). This is mainly composed of the period's net income (Eur 0.9m) and the depreciation of tangible fixed assets / amortisation of intangible assets (Eur 0.16m) and non cash currency translation gains of Eur 1.1m.

The Cash outflow from investing activities amounted to Eur 0.11m (2014: Eur 0.37m) and is attributable to the purchase of property, plant & equipment. Cash flow from financing activities amounted to an inflow Eur 0.3m (2014: outflow Eur 0.6m) mainly driven by the redemption of long-term loans and an increase in the bank overdraft.

The company´s total cash inflow in the first three months of 2015 amounted to Eur 0.056m (2014: outflow of Eur 0.345m) resulting in a closing cash balance of Eur 1.389m

Corporate developments

At a corporate level, the Group disposed of Testronic Laboratories Belgium NV on 30 April 2015. The decision to sell Testronic Laboratories Belgium NV was borne out of a previously announced strategic review, conducted in late 2014, which concluded that the specialized testing business in Belgium had little interaction or business overlap with the wider Catalis SE Group. Eur 1 m of the gross proceeds will be held for a period in escrow in support of specific representations and warranties; Eur 3 m of the proceeds from the transaction will be used to repay the working capital facility with KBC Bank; and the remaining proceeds from the transaction will be invested in the core operations of the Group. The disposal of Testronic Laboratories Belgium NV will be accounted for in the second quarter of 2015 and reported upon in Interim Report for the six months to 30th June 2015.

From the same strategic review, the board also concluded it should withdraw its listing from the General Standard in Frankfurt in order to realize significant and material cost savings for the Group. On 28th January 2015, the Frankfurt Stock Exchange approved the withdrawal. Catalis SE's shares will continue to be listed on the General Standard until 27th July 2015 according to the Stock Exchange regulations. Thereafter, the shares will be listed on the Open Market.

For further information on Catalis SE and its wholly owned subsidiaries, Testronic Labs and Kuju, please refer to www.catalisgroup.com, www.testroniclabs.com and www.kuju.com.

For further questions please contact our Investor Relations team directly:

Catalis SE
Investor Relations Team
t: +49 89 24 41 18 - 223
f: +49 89 24 41 18 - 228
info@catalisgroup.com

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Emitter:	Catalis SE Laan van Diepenvoorde 3 5582 LA Waalre Netherlands
Contact Person:	Peter Biewald
Phone:	+31 40 2135930
E-Mail:	peter.biewald@catalisgroup.com
Website:	www.catalisgroup.com
ISIN(s):	NL0010447306 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Munich, Stuttgart