Martela Oyj - Half Year financial report

MARTELA CORPORATION HALF YEAR FINANCIAL REPORT 1 JAN – 30 JUNE 2017

The January-June 2017 revenue and operating result declined from the comparison period. Decline in revenue and operating result was caused by a lack of big projects, discontinuation of own sales operations in Poland and Russia and somewhat due to challenges related to the implementation of IT system reforms. Expenses were reduced by earlier completed savings programme. 

January-June 2017

• Revenue was EUR 50.6 million (59.7), change -15.2 % 
• Operating result declined and was EUR -1.5 million (0.4)
• Operating result per revenue was -3.0 % (0.8 %)
• Result for the period declined and was EUR -1.9 million (-0.2)
• Earnings per share amounted to EUR -0.45 (-0.05)

Outlook for 2017 (unchanged, published 16 June 2017)

Martela Group anticipates that its 2017 revenue will decrease and operating result will decrease slightly compared to the previous year. Due to normal seasonal variations, the Group’s operating result accumulates mainly during the second half of the year.

Key figures, EUR million 

	2017	2016	Change	2017	2016	Change	2016
	4-6	4-6	%	1-6	1-6	%	1-12
Revenue	25.8	31.9	-19.0	50.6	59.7	-15.2	129.1
Operating result	-0.9	0.6	-252.8	-1.5	0.4	-443.6	6.2
Operating result %	-3.5	1.9		-3.0	0.8		4.8
Result before taxes	-1.0	0.4	-355.6	-1.7	0.1	-1 511.7	5.6
Result for the period	-1.2	0.1	- 1 173.2	-1.9	-0.2	- 907.4	3.3
Earnings/share, eur	-0.3	0.03		-0.45	-0.05		0.81
Return on investment %	-10.1	7.3		-8.2	2.8		18.2
Return on equity %	-21.0	2.1		-16.0	-1.7		13.9
Equity ratio %				39.5	41.9		45.3
Gearing %				45.4	-0.9		-18.9

  

Matti Rantaniemi, CEO:

”The January-June 2017 revenue and operating result declined from the comparison period. Decline in revenue and operating result was caused by a lack of big projects, discontinuation of own sales operations in Poland and Russia and somewhat due to challenges related to the implementation of IT system reforms especially in Finland. Expenses were reduced by earlier completed savings programme.

Revenue for January - June was EUR 50.6 million and declined 15.2 % from the previous year (59.7). Operating result for January - June was EUR -1.5 million (0.4). Cash flow from operating activities in January – June was EUR -11.2 million (5.7).

Compared to the previous year revenue grew in Norway but declined in all other groups. In the previous year the revenue in Sweden included big projects. In Norway comprehensive Martela Lifecycle model deliveries increased from earlier. The discontinuation of own sales operations in Poland and Russia has as expected decreased revenue. Implementation of the comprehensive Martela Lifecycle – model in Nordics has developed well towards the strategic targets for the year 2018.

The IT system reforms caused somewhat more investments and expenditure than anticipated, but the effects from the earlier completed savings programme resulted in declined personnel and real estate expenditure. 

In the first half we continued implementing and further developing the Martela Lifecycle strategy. We added personnel into sales and trained personnel to new operating models aligned with the strategy.  

In the second half we will focus on improving the sales volumes, profitability and cash flow as well as on effective utilization of the IT system reforms. IT system reform challenges may still cause delays in deliveries and in accumulation of sales cash inflow despite the corrective actions.” 

Market 

No material changes took place in the market during the first half. The demand for Martela’s products and services is fundamentally affected by the general economic situation and by the extent to which companies and the public sector need to use their space more efficiently and make their workplaces more effective management tools

Revenue and operating result 

April-June 2017 revenue and operating result 

Revenue for April - June declined 19.0 % from the previous year and was EUR 25.8 million (31.9). Revenue declined in Finland by 13.3 % in Sweden by 45.4 %, in Norway by 21.8 % and in Other countries revenue declined by 5.2 %.

Operating result for the second quarter was EUR -0.9 million (0.6). Result before taxes for April – June was EUR -1.0 million (0.4) and result for the April – June was EUR -1.2 million (0.1). 

January-June 2017 revenue and operating result  

Revenue for January – June was EUR 50.6 million (59.7) and declined by 15.2 %. Revenue declined in Finland by 8.6 %, and in Sweden by 42.6 %. Revenue in Norway grew by 31.4 %. Revenue in group Other areas declined by 22.1 %.  

Operating result for January – June was EUR -1.5 million (0.4). Result before taxes for January – June was EUR -1.7 million (0.1) and result for the period was EUR -1.9 million (-0.2).

INFORMATION EVENT 

An event for analysts, portfolio managers and media will be held on Wednesday 9 August 2017 from 11:30 to 12:30 at Martela house in address Takkatie 1, Helsinki. The result will be presented by CEO Matti Rantaniemi.

Martela Corporation
Board of Directors 

Matti Rantaniemi CEO 

Further information 

CEO Matti Rantaniemi, tel +358 50 465 8194
CFO Riitta Järnstedt, tel +358 40 508 4993 

Distribution 

NASDAQ OMX Helsinki
Main news media
www.martela.com

Our strategic direction is defined by our mission “Better working” and our vision “People-centric workplaces”. Martela provides people centric workplaces where the users and their wellbeing are in the core. We focus on the Nordic countries, as the Nordic countries are forerunner in hybrid working environments with common open work culture background and needs.

 

 

Attachments:

2017_09082017 half year report.pdf