2014-02-06 08:00:00 CET
2014-02-06 08:00:05 CET
REGULATED INFORMATION
Wulff-Yhtiöt Oyj - Financial Statement Release
Wulff Group Plc’s Financial Statements for January 1 – December 31, 2013
Result Impacted by Difficult Market Situation and Impairments
WULFF GROUP PLC
FINANCIAL STATEMENTS RELEASE February 6, 2014 at 9:00 A.M.
WULFF GROUP PLC'S FINANCIAL STATEMENTS FOR JANUARY 1 - DECEMBER 31, 2013
Result Impacted by Difficult Market Situation and Impairments
-- Net sales totalled EUR 83.5 million (EUR 90.2 million) in 2013 and EUR 22.6
million (EUR 25.1 million) in the last quarter. Compared to 2012, net sales
decreased by seven percentages cumulatively and 10 percentages in the last
quarter.
-- In 2013, EBITDA was EUR 0.00 million (EUR 2.3 million) being 0.0
percentages (2.5 %) of net sales. In the last quarter, EBITDA was EUR 0.33
million (EUR 0.96 million) being 1.5 percentages (3.8 %) of net sales.
-- The operating result was also impacted by an impairment of EUR 0.6 million
in the Group's business gifts' goodwill in September and EUR 1.0 million in
the Finnish office supplies business in December. The reported operating
result including the impairments was EUR -2.7 million (EUR 1.1 million) in
2013 and EUR -0.9 million (EUR 0.6 million) in the last quarter.
-- The result was impacted by a total of EUR -2.6 million non-recurring items
of which EUR -1.8 million impacted operating result and EUR -0.8 million
impacted financial items and taxes.
-- Earnings per share (EPS) were EUR -0.59 (EUR 0.11) in 2013 and EUR -0.32
(EUR 0.06) in the last quarter.
-- Equity-to-assets ratio was 38.3 percentages (December 31, 2012: 44.3 %).
-- Equity per share amounted to EUR 1.80 (December 31, 2012: EUR 2.51).
-- The Board of Directors proposes to the Annual General Meeting that no
dividend will be distributed for the financial year 2013.
GROUP'S NET SALES AND RESULT PERFORMANCE
Net sales totalled EUR 83.5 million (EUR 90.2 million) in 2013 and EUR 22.6
million (EUR 25.1 million) in the last quarter. Compared to 2012, net sales
decreased by seven percentages cumulatively and 10 percentages in the last
quarter. In 2013, EBITDA was EUR 0.00 million (EUR 2.3 million) being 0.0
percentages (2.5 %) of net sales. In the last quarter, EBITDA was EUR 0.33
million (EUR 0.96 million) being 1.5 percentages (3.8 %) of net sales.
The general economic situation remained difficult which impacted the demand in
the office supply markets. The operating result was also impacted by an
impairment of EUR 0.6 million in the Group's business gifts' goodwill in
September and EUR 1.0 million in the Finnish office supplies business in
December. Additionally the result was impacted by inventory write-downs and bad
debts of EUR 0.12 million in 2013. The reported operating result including the
impairments was EUR -2.7 million (EUR 1.1 million) in 2013 and EUR -0.9 million
(EUR 0.6 million) in the last quarter. In 2013, operating result (EBIT)
excluding the non-recurring goodwill impairments totalled EUR -1.1 million (EUR
1.1 million) and EUR 0.1 million (EUR 0.6 million) in the last quarter. The
reported operating result including the impairments was EUR -2.7 million (EUR
1.1 million) in 2013 and EUR -0.9 million (EUR 0.6 million) in the last
quarter. In the cost-saving program performed in the year-end 2013, the target
is to gain annual savings of EUR 2.0 million which are estimated to impact the
result mainly in 2014. The Group continues to review its expense structure and
optimise its operations to improve the profitability of its businesses.
Wulff Group's CEO Heikki Vienola: “The difficult economic situation in our
markets impacted strongly our product demand in 2013. Despite our many
achievements Wulff's financial result 2013 was a disappointment. We have
adjusted our operations by many cost-saving actions. In 2014 we search for
growth in the international fair services and new product categories such as
led lighting. In order to ensure our competitiveness and competitive advantage
to be our industry pioneer also in the future, we shall focus on those issues
that are the most important for our customers. Customer focus has been in our
values already for more than 120 years - and we will also continue that way in
the future. Success will be built by developing our operations with long-term
partnerships together with our customers.”
In 2013 the financial income and expenses netted EUR -0.7 million (EUR -0.1
million) including dividend income of EUR 0.01 million (EUR 0.02 million),
interest expenses of EUR 0.2 million (EUR 0.2 million), allowances of EUR 0.2
million (EUR 0.0 million) for given bank guarantee receivables as well as
mainly currency-related other financial items (net) EUR -0.3 million (EUR +0.1
million). In the last quarter the financial income and expenses totalled (net)
EUR -0.3 million (EUR -0.1 million).
The result before taxes was EUR -3.4 million (EUR 1.0 million) in 2013 and EUR
-1.2 million (EUR 0.5 million) in the last quarter. The last quarter's result
was impacted by the decrease in deferred tax assets booked for previous years'
losses due to the Finnish income tax rate change (EUR 0.4 million) together
with an allowance from the parent company's corporate tax credits receivable
(EUR 0.2 million). The effective income tax rate increased due to the goodwill
impairments for which no related deferred tax asset increase is booked. The net
result after taxes was EUR -3.9 million (EUR 0.9 million) in 2013 and EUR -2.1
million (EUR 0.5 million) in the last quarter. Earnings per share (EPS) were
EUR -0.59 (EUR 0.11) in 2013 and EUR -0.32 (EUR 0.06) in the last quarter.
Return on investment (ROI) was -13.9 percentages (4.7 %) in 2013 and -5.2
percentages (2.1 %) in the last quarter. Return on equity (ROE) was -25.6
percentages (5.1 %) in 2013 and -15.1 percentages (2.8 %) in the last quarter.
CONTRACT CUSTOMERS DIVISION
The Contract Customers Division is the customer's comprehensive partner in the
field of office supplies, IT supplies, business and promotional gifts as well
as international fair services. The division's net sales totalled EUR 70.7
million (EUR 76.3 million) in 2013 and EUR 18.9 million (EUR 21.2 million) in
the last quarter. The general economic situation and the decrease in the
products' demand have led to the decrease in net sales. The division's
operating result was also impacted by inventory write-downs.
The Contract Customers division's operating result was also impacted by an
impairment of EUR 0.6 million in the business gifts' goodwill in September and
EUR 1.0 million in the Finnish office supplies business in December. The
division's operating result (EBIT) excluding the non-recurring goodwill
impairments totalled EUR -0.1 million (EUR 2.04 million) in 2013 and EUR 0.11
million (EUR 0.76 million) in the last quarter. The reported operating result
including the impairments was EUR -1.69 million (EUR 2.04 million) in 2013 and
EUR -0.88 million (EUR 0.76 million) in the last quarter.
International fair services with the net sales of EUR 8 million (EUR 7 million)
are an even more significant part of Wulff's business. In spring 2013 Wulff
Entre established its fair service sales in the Swedish markets by opening its
own operations in Sweden. Wulff Entre's investments in sales and its
development have resulted in both stronger customer relationships and an
increase in clientele in Finland, Russia and Germany. In Sweden Wulff Entre has
won new customers who have already given good feedback on Wulff Entre's
services and know-how. In 2013 Wulff Entre exported Finnish companies' know-how
to more than 30 countries. Wulff Entre is the market leader in its field in
Finland and the customers have had a solid trust in Wulff Entre's ability to
find the right international venues for over 90 years already.
The net sales and profitability of Wulff's Scandinavian operator Wulff Supplies
AB decreased in 2013. Today almost half of the Group's net sales come from
Scandinavia. Office supply markets have decreased in Finland and also some in
Scandinavia. Wulff's position in the market is strong. Wulff Supplies serves
the Group's Scandinavian and pan-Nordic customers.
The Group's web store Wulffinkulma.fi has increased its net sales. According to
the strategy, Wulff has developed its sales channels and its whole service
range to be more versatile. Wulff stores serve locally small and mid-sized
corporate customers, entrepreneurs and consumers. In summer 2013 Wulff Helsinki
store moved to new premises in Konala, Helsinki. The new store is located along
excellent traffic routes in a business centre which enables to attract plenty
of new customers. Since 2013 for the first time, the stores exhibit the Group's
entire product range, Wulff's Green products and recycling centres. The stores
exhibit also seasonal business gifts.
Traditionally the Contract Customers Division's result is affected by the
cycles of the business and promotional gift market: the majority of the
products are delivered and the majority of the annual profit is generated in
the second and the last quarter of the year. The markets have not improved as
expected and the demand for Wulff's products has continued to decrease. In
September 2013, Wulff reported an impairment of EUR 0.6 million from its
business gift goodwill which decreased down to EUR 0.7 million.
As the industry pioneer and the most professional partner Wulff believes to
have a good position to serve its customers as broadly and versatile as
possible when the markets start turning up again. In a poor general economic
situation companies search for cost saving solutions and Wulff is the partner
capable of offering such savings.
DIRECT SALES DIVISION
The Direct Sales Division aims to improve its customers' daily operations with
innovative products as well as the industry's most professional personal and
local service. In 2013 the division's net sales totalled EUR 12.9 million (EUR
14.0 million) and operating result was EUR -0.11 (EUR -0.04 million). In the
last quarter the net sales totalled EUR 3.7 million (EUR 4.0 million) and
operating result was EUR 0.1 million (EUR 0.1 million). The division's result
was impacted by inventory write-downs and bad debts.
The Division's profitability is improved by concentrating on profitable product
and service fields and by optimising the operations' efficiency. Wulff investsstrongly in the development of the product and service range and aims to
increase the synergy of the purchasing operations by group-wide competitive
bidding and cooperation. Unifying the sales support systems improve the sales
operations.
Wulff's sales growth is fuelled most importantly by the sales personnel.
Successful recruiting affects especially the performance of Direct Sales. Wulff
is prepared to employ new sales talents also in the times of economic slowdown.
Wulff's own introduction and training programmes ensure that every sales person
gets both a comprehensive starting training and further education on how to
improve one's own know-how.
FINANCING, INVESTMENTS AND FINANCIAL POSITION
The cash flow from operating activities was EUR 0.6 million (EUR 3.3 million)
in 2013 and EUR 3.4 million (EUR 3.9 million) in the last quarter. Typically in
this industry the result and cash flow are generated in the last quarter.
For its fixed asset investments the Group paid a net of EUR 0.7 million (EUR
0.7 million) in 2013 and EUR 0.05 million (EUR 0.12 million) in the last
quarter. In 2013 the Group paid back loans of net EUR 0.03 million (EUR 1.85
million, net) of which EUR 2.9 million (EUR 2.1 million net) during the last
quarter.
In general the Group's cash balance decreased by EUR 1.0 million in 2013 (EUR
+0.3 million). The Group's bank and cash funds totalled EUR 2.7 million in the
beginning of the year and EUR 1.8 million in the end of the reporting period.
In the end of the financial year 2013 the Group's equity-to-assets ratio was
38.3 percentages (December 31, 2012: 44.3 %). Equity attributable to the equity
holders of the parent company amounted to EUR 1.80 per share (December 31,
2012: EUR 2.51).
SHARES AND SHARE CAPITAL
Wulff Group Plc's share is listed on NASDAQ OMX Helsinki in the Small Cap
segment under the Industrials sector. The company's trading code is WUF1V. In
the end of the reporting period the share was valued at EUR 1.57 (EUR 1.77) and
the market capitalization of the outstanding shares totalled EUR 10.2 million
(EUR 11.5 million).
In 2013 no own shares were reacquired. As a part of Wulff Group's key
personnel's share-based incentive plan introduced in February 2011, the Board
of Directors decided in May 2013 to grant 6,000 treasury shares without
compensation to the Group's key person who may not transfer the shares during a
restriction period of two years. In the end of December 2013, the Group held
79,000 (December 31, 2012: 85,000) own shares representing 1.2 percentage (1.3
%) of the total number and voting rights of Wulff shares. According to the
Annual General Meeting's authorisation on April 10, 2013, the Board of
Directors decided in its organizing meeting to continue the acquisition of its
own shares, by acquiring a maximum of 300.000 own shares by April 30, 2014.
PERSONNEL
In 2013 Wulff Group's personnel totalled 311 (343) employees on average. In the
end of the year the Group had 295 (326) employees of which 115 (125) persons
were employed in Sweden, Norway, Denmark or Estonia.
The majority, approximately 60 percentages, of the Group's personnel works in
sales operations and approximately 40 percentages of the employees work in
sales support, logistics and administration. The personnel consists
approximately half-and-half of men and women.
ORGANIZATIONAL CHANGE
Samu Vuorio (Master of Science in Technology, born in 1974) has been nominated
as Wulff's new CFO and Group Executive Board member since February 7, 2014 when
Kati Näätänen will leave Wulff Group to join her new employer. Vuorio reports
to Group CEO Heikki Vienola. Previously Vuorio has worked e.g. as Itella
Logistics Oy's CFO and he has a strong background in finance and logistics.
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand for office supplies is still affected by the organizations'
personnel lay-offs and cost-saving initiatives made during the economic
downturn. The general uncertainty may still continue which will most likely
affect the ordering behaviour of some corporate clients.
Although the business gifts are seen increasingly as a part of the corporate
communications as a whole and they are utilized also in the off-season, some
cost savings may be sought after by decreasing the investments in the brand
promotion. The ongoing economic uncertainties impact especially the demand for
business and promotional gifts. During the uncertain economic periods, the
corporations may also minimize attending fairs.
Half of the Group's net sales come from other than euro-currency countries.
Fluctuation of the currencies affects the Group's net result and financial
position.
In case of long-term economic slowdown and poor financial performance it is
even more important to ensure the adequacy of financing. A part of the Group's
loan agreements include covenants, according to which the equity ratio shall be
35 percentages at minimum and the interest-bearing debt/EBITDA ratio shall be
3.5 at maximum in the end of each financial year. On December 31, 2013 the
equity ratio was 38.3 % (44.3 %). On December 31, 2013 the interest-bearing
debt/EBITDA ratio (requirement max. 3.5) was breached due the loss in 2013.
During the end of 2013 the group management negotiated with the banks which
will require a non-recurring waiver fee from the company.
SUBSEQUENT EVENTS
20% of Wulff Liikelahjat Oy was sold to an external non-controlling shareholder
in January 2014.
BOARD OF DIRECTORS' PROPOSAL FOR THE ANNUAL RESULT
The Group's parent company Wulff Group Plc's distributable funds totalled EUR
1.9 million. The Group's net result attributable to the parent company
shareholders was EUR -3.9 million (EUR 0.7 million) i.e. EUR -0.59 per share
(EUR 0.11 per share). The Board of Directors proposes to the Annual General
Meeting that no dividend will be distributed for the financial year 2013 and
the financial year's loss will be transferred in the retained earnings in the
shareholders' equity.
MARKET SITUATION AND FUTURE OUTLOOK
Wulff is the most significant Nordic player in its industry. Wulff's mission is
to help its corporate customers to succeed in their own business by providing
them with leading-edge products and services in a way best suitable to them.
The markets have been consolidating in the past few years and the Nordic
markets are expected to consolidate in the future as well. Wulff is prepared to
carry out new strategic acquisitions.
Wulff's management believes the demand for office supplies will recover
earliest in late 2014. Operating result is believed to improve in 2014 due to
cost savings. Typically in the industry, the annual profit is made in the last
quarter of the year.
Wulff continues to improve the efficiency of its operations along the
continuous renewal in order to increase the Group's profitability and to reach
its long-term financial targets. In the cost-saving program performed in the
year-end 2013, the target is to gain annual savings of EUR 2.0 million which
are estimated to impact the result mainly in 2014.
The Group focuses strongly on sales activities, the development of its sales
operations and new solutions offered to customers. Examples of new products and
services, which have already received good customer feedback, are LED lights
and lighting solutions as well as acoustic panels improving work environment,
personnel well-being and ecological objectives.
WULFF GROUP PLC'S FINANCIAL REPORTING AND ANNUAL GENERAL MEETING 2014
Wulff Group Plc will release the following financial reports in 2014:
Statutory Financial Statements 2013 Week 12/2014
Interim Report, January-March 2014 Thursday May 8, 2014
Interim Report, January-June 2014 Thursday August 7, 2014
Interim Report, January-September 2014 Thursday November 6, 2014
Wulff Group Plc's Annual General Meeting will be held on Thursday April 10,
2014. A separate notice to the Annual General Meeting will be published prior
to the meeting.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
INCOME STATEMENT IV IV I-IV I-IV
EUR 1000 2013 2012 2013 2012
--------------------------------------------------------------------------------
Net sales 22 585 25 105 83 543 90 238
Other operating income 39 53 110 200
Materials and services -14 948 -16 244 -55 190 -58 260
Employee benefit expenses -4 763 -4 988 -17 811 -18 755
Other operating expenses -2 585 -2 967 -10 649 -11 155
--------------------------------------------------------------------------------
EBITDA 328 959 3 2 269
Depreciation and amortization -268 -322 -1 104 -1 136
Impairment -990 0 -1 620 0
--------------------------------------------------------------------------------
Operating profit/loss -930 637 -2 721 1 132
Financial income 69 19 155 272
Financial expenses -381 -131 -829 -413
--------------------------------------------------------------------------------
Profit/Loss before taxes -1 242 525 -3 395 990
Income taxes -860 -33 -510 -100
================================================================================
Net profit/loss for the period -2 102 492 -3 904 890
Attributable to:
Equity holders of the parent company -2 113 369 -3 874 717
Non-controlling interest 11 124 -31 173
Earnings per share for profit
attributable to the equity holders
of the parent company:
Earnings per share, EUR -0,32 0,06 -0,59 0,11
(diluted = non-diluted)
STATEMENT OF COMPREHENSIVE INCOME IV IV I-IV I-IV
EUR 1000 2013 2012 2013 2012
--------------------------------------------------------------------------------
Net profit/loss for the period -2 102 492 -3 904 890
Other comprehensive income which may be
reclassified to profit or loss subsequently
(net of tax)
Change in translation differences -152 -47 -258 181
Fair value changes on available-for-sale -10 -18 -50 -22
investments
Total other comprehensive income -162 -65 -308 159
--------------------------------------------------------------------------------
Total comprehensive income for the period -2 264 427 -4 212 1 049
Total comprehensive income attributable to:
Equity holders of the parent company -2 262 329 -4 148 839
Non-controlling interest -2 98 -64 210
STATEMENT OF FINANCIAL POSITION Dec 31 Dec 31
EUR 1000 2013 2012
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Goodwill 7 845 9 546
Other intangible assets 1 180 1 308
Property, plant and equipment 1 536 1 890
Non-current financial assets
Interest-bearing financial assets 35 43
Non-interest-bearing financial assets 246 327
Deferred tax assets 1 737 1 972
--------------------------------------------------------------------------------
Total non-current assets 12 578 15 085
Current assets
Inventories 9 053 10 236
Current receivables
Interest-bearing receivables 20 89
Non-interest-bearing receivables 11 728 13 276
Financial assets recognised at fair value through profit/loss 3 78
Cash and cash equivalents 1 774 2 749
--------------------------------------------------------------------------------
Total current assets 22 578 26 429
================================================================================
TOTAL ASSETS 35 156 41 513
EQUITY AND LIABILITIES
Equity
Equity attributable to the equity holders of the parent company:
Share capital 2 650 2 650
Share premium fund 7 662 7 662
Invested unrestricted equity fund 223 223
Retained earnings 1 190 5 849
Non-controlling interest 1 137 1 283
--------------------------------------------------------------------------------
Total equity 12 861 17 667
Non-current liabilities
Interest-bearing liabilities 4 825 6 008
Deferred tax liabilities 39 102
--------------------------------------------------------------------------------
Total non-current liabilities 4 864 6 109
Current liabilities
Interest-bearing liabilities 2 839 1 685
Non-interest-bearing liabilities 14 591 16 052
--------------------------------------------------------------------------------
Total current liabilities 17 431 17 737
================================================================================
TOTAL EQUITY AND LIABILITIES 35 156 41 513
STATEMENT OF CASH FLOW IV IV I-IV I-IV
EUR 1000 2013 2012 2013 2012
--------------------------------------------------------------------------------
Cash flow from operating activities:
Cash received from sales 24 950 27 289 85 210 93 018
Cash received from other operating income 43 27 114 65
Cash paid for operating expenses -21 557 -23 334 -84 131 -89 063
--------------------------------------------------------------------------------
Cash flow from operating activities before 3 436 3 982 1 193 4 020
financial items and income taxes
Interest paid -25 -20 -136 -169
Interest received 6 3 30 39
Income taxes paid -60 -111 -520 -592
--------------------------------------------------------------------------------
Cash flow from operating activities 3 357 3 854 567 3 297
Cash flow from investing activities:
Investments in intangible and tangible -83 -175 -828 -946
assets
Proceeds from sales of intangible and 37 53 123 269
tangible assets
Disposal of other non-current investments 11 12 11 12
Loans granted -14 -7 -65 -13
Repayments of loans receivable 34 8
--------------------------------------------------------------------------------
Cash flow from investing activities -49 -117 -725 -670
Cash flow from financing activities:
Dividends paid -6 -638 -531
Dividends received 7 20
Payments for subsidiary share -33 -129
acquisitions
Payments received for subsidiary share 81
disposals
Cash paid for (received from) short-term 17 95 -32
investments (net)
Withdrawals and repayments of short-term -2 494 -1 726 1 357 -254
loans
Withdrawals of long-term loans 355
Repayments of long-term loans -395 -396 -1 385 -1 952
--------------------------------------------------------------------------------
Cash flow from financing activities -2 877 -2 122 -598 -2 443
================================================================================
Change in cash and cash equivalents 431 1 615 -756 184
Cash and cash equivalents at the beginning 1 407 1 135 2 749 2 464
of the period
Translation difference of cash -64 -1 -219 101
Cash and cash equivalents at the end of the 1 774 2 749 1 774 2 749
period
STATEMENT OF CHANGES IN EQUITY
EUR 1000 Equity attributable to equity holders of the parent company
Fund
for in
vested Non-
non Trans Re cont-
Share re lation tai roll-
* net pre strict diffe ned ing
of Share mium ed Own ren Earn inte
tax capita fund equity shares ces ings Total rest TOTAL
l
--------------------------------------------------------------------------------
Equity on 2 650 7 662 223 -283 -116 5 860 15 996 1 198 17 195
Jan 1,
2012
Net profit 717 717 173 890
/ loss
for the
period
Other
comprehen
s.
income*:
Change in 144 144 37 181
translati
on diff
Fair value -22 -22 -22
changes
on
available
-for-sale
investment
s
--------------------------------------------------------------------------------
Comprehens 144 695 839 210 1 049
ive income
*
Dividends -457 -457 -77 -534
paid
Treasury 11 -11 0 0
share
disposal
Share- 5 5 5
based
payments
Changes in 0 -48 -48
ownership
--------------------------------------------------------------------------------
Equity on 2 650 7 662 223 -272 28 6 093 16 384 1 283 17 667
Dec 31,
2012
Equity on 2 650 7 662 223 -272 28 6 093 16 384 1 283 17 667
Jan 1,
2013
Net profit -3 874 -3 874 -31 -3 904
/ loss
for the
period
Other
comprehen
s.
income*:
Change in -225 -225 -34 -258
translati
on diff
Fair value -50 -50 -50
changes
on
available
-for-sale
investment
s
--------------------------------------------------------------------------------
Comprehens -225 -3 923 -4 148 -64 -4 212
ive income
*
Dividends -522 -522 -117 -638
paid
Treasury 12 -12 0 0
share
disposal
Share- 11 11 11
based
payments
Changes in 0 35 35
ownership
--------------------------------------------------------------------------------
Equity on 2 650 7 662 223 -260 -196 1 647 11 725 1 137 12 862
Dec 31,
2013
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEGMENT INFORMATION IV IV I-IV I-IV
EUR 1000 2013 2012 2013 2012
---------------------------------------------------------------------------
Net sales by operating segments
Contract Customers Division 18 868 21 193 70 669 76 250
Direct Sales Division 3 711 4 005 12 892 14 023
Group Services 146 235 659 1 079
Intersegment eliminations -141 -328 -677 -1 114
===========================================================================
TOTAL NET SALES 22 585 25 105 83 543 90 238
Operating profit/loss by operating segments
Contract Customers business 113 756 -70 2 041
Goodwill Impairment -990 -1 619
---------------------------------------------------------------------------
Contract Customers Division -878 756 -1 689 2 041
Direct Sales Division 148 100 -108 -38
Group Services and non-allocated items -201 -220 -923 -872
===========================================================================
TOTAL OPERATING PROFIT/LOSS -930 637 -2 721 1 132
KEY FIGURES IV IV I-IV I-IV
EUR 1000 2013 2012 2013 2012
--------------------------------------------------------------------------------
Net sales 22 585 25 105 83 543 90 238
Change in net sales, % -10,0 % -8,8 % -7,4 % -9,0 %
EBITDA 328 959 3 2 269
EBITDA margin, % 1,5 % 3,8 % 0,0 % 2,5 %
Operating profit/loss (EBIT) -930 637 -2 721 1 132
Operating profit/loss margin, % -4,1 % 2,5 % -3,3 % 1,3 %
Profit/Loss before taxes -1 242 525 -3 395 990
Profit/Loss before taxes margin, % -5,5 % 2,1 % -4,1 % 1,1 %
Net profit/loss for the period -2 113 369 -3 874 717
attributable to equity holders of the
parent company
Net profit/loss for the period, % -9,4 % 1,5 % -4,6 % 0,8 %
Earnings per share, EUR (diluted = -0,32 0,06 -0,59 0,11
non-diluted)
Return on equity (ROE), % -15,07 % 2,82 % -25,58 % 5,11 %
Return on investment (ROI), % -5,15 % 2,10 % -13,92 % 4,67 %
Equity-to-assets ratio at the end of 38,3 % 44,3 % 38,3 % 44,3 %
period, %
Debt-to-equity ratio at the end of period 45,4 % 27,6 % 45,4 % 27,6 %
Equity per share at the end of period, EUR 1,80 2,51 1,80 2,51
*
Investments in non-current assets 83 220 778 972
Investments in non-current assets, % of 0,4 % 0,9 % 0,9 % 1,1 %
net sales
Treasury shares held by the Group at the 79 000 85 000 79 000 85 000
end of period
Treasury shares, % of total share capital 1,2 % 1,3 % 1,2 % 1,3 %
and votes
Number of total issued shares at the end 6607628 6607628 6607628 6607628
of period
Personnel on average during the period 303 328 311 343
Personnel at the end of period 295 326 295 326
* Equity attributable to the equity holders of the parent company / Number of
shares excluding the acquired own shares
QUARTERLY KEY IV III II I IV III II I
FIGURES
EUR 1000 2013 2013 2013 2013 2012 2012 2012 2012
--------------------------------------------------------------------------------
Net sales 22 585 17 474 20 743 22 742 25 105 19 768 22 039 23 326
EBITDA 328 -246 -486 407 959 470 364 476
Operating -930 -1 141 -769 120 637 174 106 216
profit/loss
Profit/Loss -1 242 -1 212 -1 005 64 525 184 58 223
before taxes
Net profit/loss -2 113 -1 030 -760 29 369 150 25 174
for the period
attributable to
the equity
holders of the
parent company
Earnings per -0,32 -0,16 -0,12 0,00 0,06 0,02 0,00 0,03
share, EUR
(diluted =
non-diluted)
RELATED PARTY TRANSACTIONS IV IV I-IV I-IV
EUR 1000 2013 2012 2013 2012
--------------------------------------------------------------------------------
Sales to related parties 100 66 247 203
Purchases from related parties 1 32 56 80
Current non-interest-bearing receivables from related 49 49
parties
Non-current interest-bearing receivables from related 33 33
parties
COMMITMENTS Dec 31 Dec 31
EUR 1000 2013 2012
--------------------------------------------------------------------------------
Mortgages and guarantees on own behalf
Business mortgage for the Group's loan liabilities 7 550 7 550
Real estate pledge for the Group's loan liabilities 900 900
Subsidiary shares pledged as security for group companies' 6 702 4 018
liabilities
Other listed shares pledged as security for group companies' 125 187
liabilities
Current receivables pledged as security for group companies' 239 272
liabilities
Pledges and guarantees given for the group companies' 183 232
off-balance sheet commitments
Guarantees given on behalf of third parties 0 114
Minimum future operating lease payments 4 648 6 033
Accounting principles applied in the condensed consolidated financial statements
These condensed consolidated financial statements are unaudited. This report
has been prepared in accordance with IAS 34 following the valuation and
accounting methods guided by IFRS principles. The accounting principles used in
the preparation of this report are consistent with those described in the
previous year's Financial Statement taking into account also the possible new,
revised and amended standards and interpretations. Income tax is the amount
corresponding to the actual effective rate based on year-to-date actual tax
calculation.
The IFRS principles require the management to make estimates and assumptions
when preparing financial statements. Although these estimates and assumptions
are based on the management's best knowledge of today, the final outcome may
differ from the estimated values presented in the financial statements.
The business gift markets have not improved as expected and Wulff Liikelahjat
Oy's net sales and profitability have decreased from last year. In September
2013 Wulff reported an impairment of EUR 0.6 million from its business gift
goodwill which decreased down to EUR 0.7 million in the consolidated statement
of financial position. Due to the decreased profitability in the Finnish office
supplies business its goodwill was impaired by EUR 1.0 million in December 2013
after which the Finnish office supplies business' goodwill is EUR 3.5 million
in the consolidated statement of financial position. In goodwill impairment
tests the carrying amount is compared to the unit's discounted present value of
the recoverable cash flows i.e. the value in use, where the previous profit
performance level, the next year's budget as well as the sales and profit
estimates for future years are considered. The testing calculations' five-year
estimate period consists of the budget year and the following four estimate
years where a moderate, approximately two-percent annual growth is estimated in
each business areas. After this five-year estimate period, the so-called
eternity value is based on zero-growth assumption. The budgets and later years'
estimates used in the testing are carefully estimated and the growth
expectations are moderate considering also the impacts of economic slowdown.
The technique used in the impairment tests on December 31, 2013 was the same as
in the financial statements as of December 31, 2012 where the testing methods
have been described in detail in its consolidated notes. The discount interest
rate used on December 31, 2013 was 12.2% (Dec 31, 2012: 10.4%).
A part of the Group's loan agreements include covenants, according to which the
equity ratio shall be 35 percentages at minimum and the interest-bearing
debt/EBITDA ratio shall be 3.5 at maximum in the end of each financial year. On
December 31, 2013 the equity ratio was 38.3 % (44.3 %). On December 31, 2013
the interest-bearing debt/EBITDA ratio (requirement max. 3.5) was breached due
the loss in 2013. During the end of 2013 the group management negotiated with
the banks which will require a non-recurring waiver fee from the company. In
the financial statements as of December 31, 2013 the Group's interest-bearing
liabilities have been presented in non-current and current liabilities based on
the loans' maturities.
The Group has no knowledge of any significant events after the end of the
financial period that would have had a material impact on this report in any
other way that has been already discussed in the review by the Board of
Directors.
In Vantaa on February 5, 2014
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
CEO Heikki Vienola
tel. +358 9 5259 0050 or mobile: +358 50 65 110
e-mail: heikki.vienola@wulff.fi
DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.wulff-group.com
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