2009-11-12 08:00:00 CET
2009-11-12 08:02:14 CET
REGULATED INFORMATION
Aspocomp Group - Interim report (Q1 and Q3)
ASPOCOMP'S INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2009
Aspocomp Group Plc., Interim report November 12, 2009 at 9:00 am
ASPOCOMP'S INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2009
In this financial statements bulletin, the Group's business has been
presented in line with IFRS standards, divided into continuing
operations as well as divested and discontinued operations.
Continuing operations comprise Aspocomp Oulu Oy and the parent
company Aspocomp Group Plc. These operations form one business
segment.
- Net sales: EUR 8.9 million (EUR 16.3 million 1-9/2008).
- Operating profit before depreciation (EBITDA): EUR -1.2 million
(1.7).
- Operating profit (EBIT): EUR -2.1 million (0.5).
- Earnings per share (EPS) from continuing operations: EUR -0.05
(-0.02).
- Earnings per share (EPS) from divested and discontinued operations:
EUR 0.00 (-0.02).
- Cash flow from operations: EUR 0.6 million (-3.5).
SAMI HOLOPAINEN, PRESIDENT AND CEO:"The market still remained challenging. Oulu plant's result stayed on
red, but improved from the second quarter of the year. Group's result
was weakened by one-time, unexpected pension costs and provisions
amounting to EUR 0.3 million.
Cash flow after investments barely remained positive.
The market is estimated to slightly improve and the operating result
of the forth quarter is expected to be positive. However, the full
year 2009 EBITDA will be negative.
The Suzhou, China plant (MAS) of the joint venture Meadville Aspocomp
(BVI) Holdings Ltd. still runs at a low capacity utilization level.
It is expected that there will be gradual improvement of both export
and local sales in the later part of year 2009. The India plant
project remains on hold until further notice."
THE GROUP'S BUSINESS ACTIVITIES
Aspocomp Oulu Oy manufactures and sells PCBs for telecom, industrial,
and automotive electronics applications. Its service portfolio
includes prototype and quick-turn deliveries, fulfillment of urgent
PCB needs in high-volume operations as well as development and
commercialization of new technologies. Aspocomp Oulu's primary
technologies are HDI (High Density Interconnection), multilayer and
special material PCBs.
The figures of Aspocomp Oulu Oy and the parent company Aspocomp Group
Plc. are consolidated in the Group's profit and loss statement.
Aspocomp has a 20% stake in the joint venture Meadville Aspocomp
(BVI) Holdings Limited. The joint venture's production facility in
Suzhou, China is a volume manufacturer of HDI and multilayer PCBs.
Aspocomp's 20% stake in the joint venture is booked into the balance
sheet at its minimum value, which is based on the option agreement
made in connection with the ownership arrangements in 2007. The
minimum value is 16.1 million euro in the end of the period, and it
increases by 2.5 percent annually until the option is exercised.
Details of the option agreement can be found in the press release of
Meadville Holdings Ltd. published on November 16, 2007: "Major
transaction - acquisitions and resumption of trading, pages 8-9"
(www.meadvillegroup.com/announcements.html). Due to the
aforementioned the financial performance of the joint venture does
not impact on the value of Aspocomp's holding.
In addition, Aspocomp holds a 14.1% share in the Thai company PCB
Center Co., Ltd. (former subsidiary Aspocomp (Thailand) Co., Ltd.)
and a 5.3% share in Imbera Electronics Inc.
CONSOLIDATED NET SALES AND OPERATING PROFIT 7-9/2009
(Reference figures are for 7-9/2008, include only continuing
operations)
Net sales and operating profit, EUR million
7-9/2009 Change, 7-9/2008 %
Net sales 2.7 -45.1 5.0
Operating -0.9 0.4
profit
Aspocomp's five largest customers accounted for 80% of net sales
(78%).
Net financial expenses were EUR -0.3 million (-0.4). Profit was EUR
-1.2 million (-0.1) and earnings per share were EUR -0.02 (0.00).
CONSOLIDATED NET SALES AND OPERATING PROFIT 1-9/2009
(Reference figures are for 1-9/2008, include only continuing
operations)
Net sales and operating profit, EUR million
1-9/2009 Change, 1-9/2008
%
Net sales 8.9 -45.4 16.3
Operating -2.1 0.5
profit
Aspocomp's five largest customers accounted for 76% of net sales
(75%).
Net financial expenses were EUR -0.7 million (-1.2). Profit was EUR
-2.6 million (-0.9) and earnings per share were EUR -0.05 (-0.02).
FINANCING, INVESTMENTS AND EQUITY RATIO
(Reference figures are for 9/2008, include continuing as well as
divested and discontinued operations)
Aspocomp's cash flow from operations during the period was EUR 0.6
million (-3.5). Net liquid assets at the end of the period amounted
to EUR 3.0 million (3.7).
Interest-bearing net debt was EUR 19.0 million (35.7). Gearing
increased to 620.7% (563.4%). Non-interest bearing liabilities
amounted to EUR 5.5 million (11.4).
Investments were EUR 0.6 million (1.3).
The equity ratio stood at 10.0% (6.8%) at the end of the period.
SHAREHOLDERS' EQUITY OF THE PARENT COMPANY
In accordance with the requirements of the Companies Act, the Trade
Register has been notified of the loss of share capital on May 14,
2008. The shareholders' equity of Aspocomp Group's parent company,
Aspocomp Group Plc., was EUR 3.2 million negative at the end of the
second quarter. However, the shareholders' equity of Aspocomp Group
was EUR 3.1 million positive.
RESEARCH AND DEVELOPMENT
Aspocomp engages in R&D primarily through cooperation with its
customers and suppliers. In connection with customer projects and
other customer contacts, information on future interconnection
technology applications is exchanged. This information is used to
steer development work and execute investments to improve technical
capability. Correct timing of investments is vital for maintaining
competitiveness, cost efficiency and technological viability.
Research and product development costs are recognized in plant
overhead.
SHARES AND SHARE CAPITAL
The total number of Aspocomp's shares at September 30, 2009 was
49 905 130 and the share capital stood at EUR 20 082 052. Of the
total shares outstanding, the company held 200 000 treasury shares,
representing 0.4% of the aggregate votes conferred by all the shares.
The number of shares adjusted for the treasury shares was 49 705 130.
A total of 32 333 328 Aspocomp Group Plc. shares were traded on
NASDAQ OMX Helsinki during the period from January 1 to September 30,
2009. The aggregate value of the shares exchanged was EUR 4 686 546.
The shares traded at a low of EUR 0.05 and a high of EUR 0.24. The
average share price was EUR 0.14. The closing price at September 30,
2009 was EUR 0.13, which translates into market capitalization of EUR
6 487 667. At the end of the period, nominee-registered shares
accounted for 4.9% of the total shares and 0.2% were directly held by
non-domestic owners.
PERSONNEL
During the period, Aspocomp had an average of 108 employees (147).
The personnel count on September 30, 2009 was 101 (126). Of them, 69
(83) were non-salaried and 32 (43) salaried employees. The reference
numbers are for continuing operations.
DECISIONS OF THE ANNUAL GENERAL MEETING
The Annual General Meeting of Aspocomp Group Plc. held on April 21,
2009 re-elected the current Board and decided that the remunerations
of the members of the Board will remain the same as in 2008. The
General Meeting also decided to amend the company's Articles of
Association. Furthermore, the Meeting decided not to pay dividend for
the period.
The Annual General Meeting decided to set the number of Board members
at three (3) and re-elected the current members of the Board: Johan
Hammarén, Tuomo Lähdesmäki, and Kari Vuorialho. The Meeting
re-elected PricewaterhouseCoopers Oy as the company's auditor for the
2009 financial year.
Annual remuneration of EUR 24 000 will be paid to the chairman of the
Board and EUR 12 000 to the other Board members. 60% of the annual
remuneration will be paid in cash and 40% in company shares, which
will be acquired and distributed to Board members. EUR 1 000 per
meeting will be paid to the chairman and EUR 500 per meeting to the
other members. The members of the Board residing outside of the
Greater Helsinki area are reimbursed for reasonable travel and
lodging expenses. The auditor will be paid according to invoice.
The Annual General Meeting decided to amend the Articles of
Association such that Articles 6 and 12 were deleted as unnecessary
and the new Article 10 was amended to read as follows: "Article 10
The notice of meeting shall be delivered to the shareholders at the
earliest three (3) months and at the latest twenty-one (21) days
prior to the General Meeting by publishing the notice on the
company's website and, should the Board of Directors so decide, in
one widely circulated newspaper specified by the Board."
THE BOARD OF ASPOCOMP GROUP PLC., AUTHORIZATIONS GIVEN TO THE BOARD
In its organization meeting, the Board of Directors of Aspocomp Group
Plc. re-elected Tuomo Lähdesmäki as Chairman of the Board. As the
Board only comprises three (3) members, Board committees were not
established.
The Annual General Meeting 2008 of Aspocomp Group Plc. authorized the
Board to decide on issuing new shares and conveying the Aspocomp
shares held by the company. A maximum of 55 000 000 new shares can be
issued and/or granted on the basis of special rights. Authorization
is valid 5 years from the respective Annual General Meeting.
The Annual General Meeting 2008 also decided about issuing stock
options to the CEO. The Board of Directors has not granted the said
stock options.
Details of the authorizations can be found on pages 10-11 of the
Annual Report 2008 (www.aspocomp.com/linked/investor/ar_2008.pdf).
ASSESSMENT OF BUSINESS RISKS
Significant indebtedness
The Aspocomp Group's interest-bearing liabilities at September 30,
2009 amounted to about EUR 22.0 million under IFRS and had a nominal
value of about EUR 24.4 million.
Liquidity and financial risks
Because of the agreement on debt restructuring, management of
Aspocomp's liquidity risk is based on the cash assets of the parent
company and the cash flow generated by the Oulu plant. If Aspocomp
Group Plc. does not obtain financing from Aspocomp Oulu Oy, or its
associated company Meadville Aspocomp (BVI) Holdings Ltd. in the form
of dividends or other income, or other ways of financing, to cover
its expenses by 2013, the company may ultimately become insolvent.
Litigations
In 2007, the French Supreme Court ordered the company to pay
approximately EUR 11 million, including annual interest of about 7%,
to 388 former employees of Aspocomp S.A.S. In January 2009, the Labor
Court of Evreux, France ruled that the company has to pay
approximately EUR 0.5 million in compensation, with interest, to a
further 13 former employees. Aspocomp has appealed the decision to
the next instance in France. The aforementioned compensations do not
have a profit impact during 2009.
The claims are related to the notice time salaries of the closed,
heavily loss-making Evreux plant. The closure took place in 2002.
There is a risk that the remaining approximately 100 employees may
also institute proceedings. In France, the statute of limitations for
filing a suit is 30 years.
OUTLOOK FOR THE FUTURE
Aspocomp's financial position is satisfactory. The lean cost
structure and the outlook for operations in Oulu enable the
continuity of operations.
Net sales in 2009 will decline due to the difficult market situation
and solutions implemented to reduce risks. The market is estimated to
slightly improve during the last quarter compared to the previous
quarters.
Group's forth quarter operating result is expected to be positive,
but the full year operating profit before depreciation (EBITDA) will
remain negative.
In addition to developing the continuing operations of the company,
the Board of Directors is looking into various structural development
solutions, including carrying out company reorganization in the
future.
ACCOUNTING POLICIES
All figures are unaudited. Aspocomp's financial statements bulletin
has been prepared in accordance with IAS 34, Interim Financial
Reporting. The accounting principles that were applied in the
preparation of the financial statements of December 31, 2008 have
been applied in the preparation of this report. However, as of
January 1, 2009 the company has applied the following new or modified
standards:
- IAS 1 Presentation of Financial Statements - amended
- IFRS 8 Operating Segments
The amendments to IAS 1 change the structure of the Profit & Loss and
Changes in Equity statements. IFRS 8 does not impact on any of the
financial information presented.
PROFIT & LOSS STATEMENT,
JULY-SEPTEMBER 7-9/09 7-9/08
1000 e % 1000 e %
NET SALES 2 747 100.0 5 000 100.0
Other operating income 66 2.4 270 5.4
Materials and services -958 -34.9 -1 911 -38.2
Personnel expenses -1 369 -49.8 -1 220 -24.4
Other operating costs -1 066 -38.8 -1 286 -25.7
Depreciation and -280 -10.2 -416 -8.3
amortization
OPERATING PROFIT -860 -31.3 436 8.7
Financial income and -304 -11.1 -381 -7.6
expenses
Share of loss of 0 0.0 0 0.0
associate
PROFIT ON CONTINUING
OPERATIONS BEFORE TAX -1 164 -42.4 55 1.1
Taxes -1 0.0 -143 -2.9
PROFIT ON CONTINUING
OPERATIONS -1 165 -42.4 -88 -1.8
Profit on discontinued
operations 0 0.0 -365 -7.3
PROFIT FOR THE PERIOD -1 165 -42.4 -453 -9.1
Other comprehensive
income
for the period, net of
tax
Translation differences 13 0.5 1 109 22.2
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD -1 152 -41.9 656 13.1
Profit for the period
attributable to:
Minority interests -17 -0.6 83 1.7
Equity shareholders -1 148 -41.8 -536 -10.7
Total comprehensive
income
attributable to:
Minority interests -17 -0.6 83 1.7
Equity shareholders -1 135 -41.1 573 11.5
JANUARY-SEPTEMBER 1-9/09 1-9/08 1-12/08
1000 e % 1000 e % 1000 e %
NET SALES 8 912 100.0 16 312 100.0 20 682 100.0
Other operating income 177 2.0 1 559 9.6 1 616 7.8
Materials and services -3 034 -34.0 -7 107 -43.6 -8 706 -42.1
Personnel expenses -4 277 -48.0 -5 264 -32.3 -6 218 -30.1
Other operating income -2 985 -33.5 -3 765 -23.1 -5 145 -24.9
Depreciation and -844 -9.5 -1 280 -7.8 -1 686 -8.2
amortization
OPERATING PROFIT -2 052 -23.0 457 2.8 543 2.6
Financial income and -673 -7.6 -1 188 -7.3 -1 876 -9.1
expenses
Share of loss of 0 0.0 0 0.0 -1 020 -4.9
associate
PROFIT ON CONTINUING
OPERATIONS BEFORE TAX -2 725 -30.6 -732 -4.5 -2 353 -11.4
Taxes 141 1.6 -143 -0.9 -145 -0.7
PROFIT ON CONTINUING
OPERATIONS -2 583 -29.0 -875 -5.4 -2 498 -12.1
Profit on discontinued
operations 0 0.0 -1 091 -6.7 2 839 13.7
PROFIT FOR THE PERIOD -2 583 -29.0 -1 966 -12.1 341 1.7
Other comprehensive
income
for the period, net of
tax
Translation differences 10 0.0 331 2.0 176 0.8
TOTAL COMPREHENSIVE
INCOME
FOR THE PERIOD -2 573 -29.0 -1 635 -10.0 517 2.5
Profit for the period
attributable to:
Minority interests -56 -0.6 219 1.3 270 1.3
Equity shareholders -2 528 -28.4 -2 185 -13.4 71 0.3
Total comprehensive
income
attributable to:
Minority interests -56 -0.6 219 1.3 270 1.3
Equity shareholders -2 517 -28.2 -1 854 -11.4 247 1.2
Earnings per share from
continuing operations
Basic EPS -0.05 -0.02 -0.06
Diluted EPS -0.05 -0.02 -0.06
Earnings per share from
discontinued operations
Basic EPS 0.00 -0.02 0.06
Diluted EPS 0.00 -0.02 0.06
CONSOLIDATED BALANCE SHEET 6/09 6/08 Change 12/08
1000 e 1000 e % 1000 e
ASSETS
NON-CURRENT ASSETS
Intangible assets 3 030 3 199 -5.3 3 037
Tangible assets 3 148 2 257 39.5 3 462
Investments in associated companies 16 113 16 723 -3.6 15 831
Investments in properties 0 2 294 -100.0 0
Available for sale investments 44 44 0.0 44
Other non-current receivables 0 2 452 -100.0 0
TOTAL NON-CURRENT ASSETS 22 335 26 968 -17.2 22 374
CURRENT ASSETS
Inventories 1 771 2 451 -27.7 2 089
Short-term receivables 3 491 6 316 -44.7 6 034
Cash and bank deposits 3 034 3 693 -17.8 4 255
Assets held for sale 15 927
TOTAL CURRENT ASSETS 8 296 28 388 -70.8 12 378
TOTAL ASSETS 30 631 55 356 -44.7 34 752
SHAREHOLDERS' EQUITY AND
LIABILITIES
Share capital 20 082 20 082 0.0 20 082
Share premium 27 918 27 918 0.0 27 918
Treasury shares -758 -758 0.0 -758
Special reserve 45 989 45 989 0.0 45 989
Reserve for invested non-restricted 23 885 23 885 0.0 23 885
equity
Retained earnings -114 690 -114 274 0.4 -112 173
Equity attributable to shareholders 2 425 2 842 -14.7 4 943
Minority interest 638 897 -28.9 694
TOTAL EQUITY 3 064 3 739 -18.1 5 637
Long-term loans 21 755 24 415 -10.9 22 480
Provisions 256 694 -63.1 311
Short-term loans 294 362 -18.7 367
Trade and other payables 5 262 6 516 -19.3 5 957
Liabilities held for sale 19 629
TOTAL LIABILITIES 27 567 51 617 -46.6 29 115
TOTAL SHAREHOLDERS' EQUITY AND 30 631 55 356 -44.7 34 752
LIABILITIES
CONSOLIDATED CHANGES IN
EQUITY,
JANUARY-SEPTEMBER Reserve
1000 e for
invested
non- Trans- Mino-
Share Share rest- lation rity
capi- pre- Special ricted Own differ- Retained inte- Total
Balance at tal mium reserve equity shares ences earnings rests equity
27
1.1.09 20 082 918 45 989 23 885 -758 -1 203 -110 970 694 5 636
Comprehensive
income
for the
period 10 -2 527 -56 -2 587
Balance at
27
30.9.09 20 082 918 45 989 23 885 -758 -1 193 -113 497 638 3 064
Reserve
for
invested
non- Trans- Mino-
Share Share rest- lation rity
capi- pre- Special ricted Own differ- Retained inte- Total
Balance at tal mium reserve equity shares ences earnings rests equity
27
1.1.08 20 082 918 45 989 23 885 -758 -884 -111 536 742 5 438
Comprehensive
income
for the
period 331 -2 185 155 -1 699
Balance at
27
30.9.08 20 082 918 45 989 23 885 -758 -553 -113 721 897 3 739
CONSOLIDATED CASH FLOW STATEMENT,
JANUARY-SEPTEMBER
1000 e 1-9/09 1-9/08 1-12/08
Profit for the period -2 583 -1 966 341
Adjustments 1 314 3 292 -533
Change in working capital 1 868 -4 477 -1 522
Received interest income and dividends 17 266 302
Paid interest expenses -34 -661 -761
Paid taxes -2 0 -2
Operational cash flow 580 -3 546 -2 175
Investments -618 -1 246 -1 443
Proceeds from sale of property, plant and
equipment 97 6 793 8 420
Cash flow from investments -522 5 547 6 977
Decrease in financing -1 280 -6 612 -8 919
Increase in financing 0 0 0
Cash flow from financing -1 280 -6 612 -8 919
Change in cash and cash equivalents -1 221 -4 623 -4 118
Cash and cash equivalents
at the beginning of period 4 255 8 373 8 373
Currency exchange differences 0 -12 0
Cash and cash equivalents at the end of
period 3 034 3 750 4 255
Reference figures include divested and discontinued
operations.
KEY FINANCIAL INDICATORS 9/09 9/08
Equity per share, EUR 0.05 0.06
Equity ratio, % 10.0 6.8
Gearing, % 620.7 563.4
Earnings per share (EPS) from
continuing operations
Basic and diluted EPS, EUR -0.05 -0.02
Earnings per share (EPS) from
discontinued operations
Basic and diluted EPS, EUR 0.00 -0.02
CONTINGENT LIABILITIES
1000 e 9/09 9/08 12/08
Mortgages given for
security for liabilities 15 400 25 400 15 400
Operating lease liabilities 100 100 100
Other liabilities 100 400 100
Total 15 600 25 900 15 600
Mortgages as collateral for debt have declined due to the divestment
of the Thai subsidiary. With regards to other commitments, the
customs bonds of the parent company have been discontinued, as they
are no longer necessary.
FORMULAS FOR CALCULATION OF KEY FIGURES
Equity/share, EUR = Equity attributable to shareholders
____________________________________
Number of shares at the end of period
Equity ratio, % = Total equity
_______________________________________ x
100
Balance sheet total - advances received
Gearing, % = Net interest-bearing liabilities
________________________________ x 100
Total equity
Earnings per share
(EPS), EUR = Profit attributable to equity shareholders
__________________________________________
Adjusted weighted average number of shares
outstanding
All figures are unaudited.
Espoo, November 12, 2009
Aspocomp Group Plc.
Board of Directors
For further information, please contact Sami Holopainen, CEO, tel.
+358 400 487 180.
www.aspocomp.com
Some statements in this stock exchange release are forecasts and
actual results may differ materially from those stated. Statements in
this stock exchange release relating to matters that are not
historical facts are forecasts. All forecasts involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performances or achievements of the Aspocomp Group to
be materially different from any future results, performances or
achievements expressed or implied by such forecasts. Such factors
include general economic and business conditions, fluctuations in
currency exchange rates, increases and changes in PCB industry
capacity and competition, and the ability of the company to implement
its investment program.
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