2007-08-20 10:00:00 CEST
2007-08-20 10:00:00 CEST
REGULATED INFORMATION
Tiimari Oyj Abp - Quarterly report
Tiimari result as expected due to seasonality
TIIMARI OYJ AB STOCK EXCHANGE ANNOUNCEMENT 20/8/07
TIIMARI OYJ ABP INTERIM REPORT JANUARY 1 - JUNE 30, 2007 11.00 a.m.
Tiimari result as expected due to seasonality
KEY FIGURES OF THE CONTINUED OPERATIONS ON REVIEW PERIOD JANUARY 1 - JUNE 30,
2007:
- Turnover MEUR 28.5 (MEUR 1.2)
- EBITDA MEUR -0.3 (MEUR 0.3)
- Result of the review period MEUR -2.7 (MEUR 0.3)
- Earnings per share MEUR -0.28 (MEUR 0.05)
STATEMENT OF THE MANAGING DIRECTOR
The business operations of Tiimari Oyj Abp on the second quarter of 2007 were
significantly marked by the company's concentration on developing its retail
operations. The first new type of pilot outlet was opened in Vuosaari. The
reformation project for the logos as well as the visual look of Tiimari Retail
and Tiimari outlets started off in June.
In order to improve retail operations management, Tiimari Retail produced a
handbook for retail activities. Simultaneously, personnel training was made more
efficient by creating a web-based training and introductory programme, called
“Elämysopisto”.
Furthermore, Tiimari signed a lease for the largest ever Tiimari store. The
chain's 1,542 square meter flagship store opens in Tammisto, in Vantaa in
November 2007. It is approximately three times the size of the currently
operating Tiimari outlets. The store will concentrate on selling interior
decoration products. Moreover, Tiimari opened two other outlet stores in
Helsinki and one in Tampere in the current review period. A so called web-shop
concept is being developed for both Tiimari Retail and Leo Longlife Design.
During the review period, Leo Longlife business operations developed favourably
and the increase in turnover as compared to the previous year was significant.
International expansion activities continued, as a new store was opened in
Gliwice, Poland. The 240 square metre store is Tiimari's third one in Poland. It
is located in the new Gliwice Forum trade centre, which is expected to become
the most attractive shopping mall in the area.
A company was set up in Moscow to prepare market penetration in Russia.
At the end of the review period, Tiimari had a total of 177 retail stores, the
number of the equivalent period in 2006 being 182 stores. 156 stores are located
in Finland (156), 14 in Estonia (17), 4 in Latvia (4), 1 in Norway (2), 0 in
Sweden (1) and 2 in Poland (2). Additionally, Tiimari's partner sellers in
Finland had altogether 6 (6) stores and 0 (2) franchise stores. At the end of
the review period, Tiimari had a total of 10 (9) franchise stores in Sweden. A
central part of Tiimari's strategy is to increase the number of stores and to
optimise their location and size in square metres.
FINANCIAL RESULT
The turnover of the Tiimari concern in the review period was MEUR 28.5 (MEUR
1.2). In the period of comparison January 1 - June 30, 2006 the Company engaged
exclusively in the sale of business gifts and related industrial operations.
Turnover reached MEUR 13.9 (MEUR 0.5) in the second quarter. Earnings before
interest, taxes, depreciation and amortization (EBITDA) reached a total of MEUR
-0.3 (MEUR 0.3) in the review period.
Earnings before interest, taxes, depreciation and amortization (EBITDA) reached
a total of MEUR -0.5 (MEUR -0.09) in the second quarter.
EBITDA of the first half-year includes MEUR 0.9 of inventory write-offs that are
related to the acquisition of Maritii Oy. After tax, the earnings of the review
period were MEUR 2.7 (MEUR 0.3).
The result of the financial period was MEUR -1.5 (MEUR -0.04) in the second
quarter. Earnings per share from continued operations were EUR -0.15 EUR
(-0.01).
DEDUCTIBILITY OF CONSOLIDATED LOSSES
The Company was granted a special exemption in June 2007 by the Uusimaa Regional
Tax Office, to deduct the consolidated losses of Tiimari Retail Oyj and Maritii
Oy from 2003 to 2005, and the possible losses and the undistributed tax credits
from tax years 2003 and 2004, in spite of the change of ownership exceeding 50
percent, which took place in the fiscal year 2006. Due to the special
exemptions, the Company has re-allocated Maritii's write-offs by posting MEUR
2.47 from consolidated losses and undistributed tax credits, reducing the
business value occurring from imputed tax assets.
BALANCE, FINANCIAL SITUATION AND INVESTMENTS
On June 30, 2007 the total balance of Tiimari Oyj Abp was MEUR 82.7 (MEUR 21.2).
The Company has a solid financial situation. Interest-bearing net liabilities
were MEUR 36.8 (MEUR -12.1), the solvency ratio was 38.3 % (87.6 %) and the net
gearing 116.2 % (-65.2 %). Seasonal fluctuations have a considerable impact on
the Company's financial situation.
During the review period, the Company paid a total of MEUR 1.4. in dividends and
settled the agreed additional purchase price of MEUR 1.5 for the acquisition of
Maritii Oy on 9 October 2006.
During the review period, the central investments were made in the retail store
network, totalling at MEUR 0.5.
PERSONNEL
The number of people employed by the group on June 30 2007 was 496 (45) and on
average 592 (45), of whom the most worked for Tiimari Retail Oyj. The parent
Company employed 1 (5) person, and Leo Longlife Design Oy employed 37 (49), and
on average 37 (49) persons.
GROUP STRUCTURE
The Tiimari Oyj Abp group consists of parent Company Tiimari Oyj Abp and
directly
or indirectly entirely owned Maritii Oy (Helsinki), Tiimari Retail Oyj
(Lahti), Tiimari Sweden AB (Stockholm), Tiimari Baltic AS (Tallinn), Tiimari
Latvia SIA (Riga), Tiimari Polska SP Z.O.O (Warsaw), Tiimari Moscow Z.A.O. Leo
Longlife Design Oy (Kokkola) and Tuotesampo Oy (Tuotesampo Oy has no
operations). The group includes also Tiimari Norway AS (Oslo), of which the
group's share of ownership is 67,8 % and the joint-stock property company
Osuuskunnantie 30, which is a 10 % subsidiary of Tiimari Plc and a 90 %
subsidiary of Leo Longlife Design Oy. This joint-stock property company has sold
its real estate holdings and all on-site buildings.
SHARE CAPITAL
At the end of the review period, the registered share capital of Tiimari Oyj Abp
totalled at EUR 7.686.200, representing an aggregate number of 9.847.750 voting
rights. The Company had a total of 2768 shareholders at the end of the review
period. At the end of the review period, the number of own shares held by the
Company was 11,850. The number of shares corresponds to that held at the
beginning of the period. The nominal value of shares held by the Company was
MEUR 0.01 and the proportion of share capital and voting rights was 0.12 %.
ANNUAL GENERAL MEETING 2007
Held on April 17, 2007, the Annual General Meeting of Tiimari Plc decided to pay
a dividend of EUR 0.15 per share totalling at MEUR 1.4. Re-elected members of
the Board were Alexander Ehrnrooth, Arja Hautanen, Kirsti Lindberg-Repo, Curt
Lindbom, Mia Saari and Peter Seligson, with Erik Helin appointed as a new
member.
Under a decision by the Annual General Meeting, the Board of Directors was
authorised to decide on assigning an aggregate maximum of 2,000,000 new shares
in the form of a share issue or special rights (including stock options)
entitling to shares pursuant to Chapter 10, Section 1 of the Finnish Companies
Act in one or more tranches. The Board of Directors may issue either new shares
or the Company's own shares that may be in the Company's possession. The
proposed maximum represents approximately 20.3 % of all the Company shares as on
the date that the invitation to the Annual General Meeting was published. The
authorisation is proposed to be used for financing and implementing potential
corporate acquisitions or other arrangements, for consolidating the Company's
balance and financial situation and for any other corporate purposes determined
by the Board of Directors. The authorisation covers the right of the Board of
Directors to decide on any and all terms and conditions of share issues and the
issuing of special rights pursuant to Chapter 10, Sections 1 of the Finnish
Companies Act, including the right to identify the beneficiaries of shares or of
special rights entitling to shares and to determine the amount of consideration.
DEVELOPMENTS AFTER THE REVIEW PERIOD
Master of Political Science, Veli-Pekka Kahanpää was appointed as the Financial
Director and a member of the Management Group of Tiimari. He takes his post at
Tiimari in September 2007, leaving his previous post as the Finance Manager and
the Chief Risk Officer at Uponor Oyj.
As a result of the employer-employee negotiations at Leo Longlife Oy, a member
company of the group, three persons were dismissed.
Leo LOnglife Design web shop was opened in August 2007. Upon the launch, the Leo
Longlife product selection was renewed and expanded considerably.
Tiimari continued its expansion in Poland by signing a tenancy agreement for a
fourth retail outlet. The store will be opened in the beginning of November in
Bialystok, North-East Poland. The store will be located in a new trade centre,
Galleria Podlaska, which is being constructed around Carrefour.
VISIONS FOR THE FUTURE
The anticipated turnover for the entire year 2007 is approximately MEUR 77.00
the forecasted earnings before interest, taxes, depreciation and amortization
(EBITDA) being approximately MEUR 8.00 and including yet for this year the
depreciation of MEUR 1.4 from the acquisition of Maritii Oy. The result for the
financial period is expected to be noticeably positive. As last year, the
majority of the earnings are entered as income during the last quarter.
RISK AND THREAT ANALYSIS FOR THE NEAR FUTURE
The biggest challenges that Tiimari is faced with are the fluctuations in the
general consumption, demand and the competition environment, as well as
the attainability of advantageous business locations in the international
market. Tiimari is currently concentrating heavily on developing its stores and
marketing activities. The Company is seeking growth in the number of visitors
and the amount of purchases per visitor, as well as developing its international
operations. Managing the potential growth requires investments in
administration, new locations, internationalization and recruiting more staff.
Tiimari strives to prepare for changes in consumer demand and the competition
environment by knowing the consumer, constantly developing the Company concept,
and by implementing new and innovative business solutions.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
EUR 1000 2007 2006 2007 2006 2006
4-6 4-6 1-6 1-6 1-12
Continued operations
TURNOVER 13,854 520 28,474 1,224 32,819
Other operating income -18 0 162 0 346
Change in inventories -380 -35 -861 131 -8,992
Materials and supplies -5,015 -94 -10,011 -143 -7,667
Work benefit and reward expenses -3,646 -320 -7,595 -549 -4,717
Depreciation -517 -34 -1,111 -69 -871
Other operating costs -5,239 -156 -10,454 -319 -4,900
Operating profit / loss -961 -119 -1,396 275 6,018
Financial income and expenses -668 98 -1,340 109 -793
Profit / loss before taxes -1,629 - 21 -2,736 384 5 225
Taxes 120 - 21 0 -112 -396
Profit/loss for the review period
from continued operations -1,509 -42 -2,736 272 4,829
Discontinued operations
Profit
from discontinued operations 0 310 0 1,281 1,460
Profit/loss for the financial year -1,509 268 -2,736 1,553 6,289
Parent company shareholders'
profit earnings
per share
Undiluted earnings per share
Continued operations -0.15 -0.01 -0.28 0.05 0.70
Discontinued operations 0.05 0.19 0.21
The adjusted value with the dilution effect
the earnings per share correspond to those of the
undiluted earnings per share
CONSOLIDATED BALANCE SHEETS
30.06.07 30.06.06 31.12.06
ASSETS
Business value 32,987 0 35,392
Other intangible assets 14,999 29 15,387
Tangible assets 3,428 1,092 9,890
Investment properties 0 639 0
Other financing resources 114 11 114
Receivables 84 30 134
Imputed tax credit 1,450 0 0
Total long-term assets 53,062 1,801 60,917
Current assets 24,479 6,942 25,206
Trade and other receivables 3,929 299 3,852
Liquid assets 1,250 12,142 8,323
Total current assets 29,658 19,383 37,381
Non-current assets
held for sale 0 0 830
TOTAL ASSETS 82,720 21,184 99,128
OWN SHARE CAPITAL AND LIABILITIES
Parent Company's shareholders'
equity
TOTAL SHAREHOLDERS' EQUITY 31,723 18,566 35,891
LIABILITIES
Imputed tax credit 5,524 0 6,552
Interest-bearing liabilities 18,102 30 20,835
Provisions 27 0 45
Total non-current liabilities 23,653 30 27,432
Interest-bearing liabilities 20,004 0 21,080
Provisions 22 0 0
Accounts payable and other payables 7,318 2,218 14,040
Current tax 0 370 165
Total current liabilities 27,344 2,588 35,285
Liabilities related to non-current
assets held for sale 0 0 520
TOTAL LIABILITIES 50,997 2,618 63,237
TOTAL SHAREHOLDERS'
EQUITY AND LIABILITIES 82,720 21,184 99,128
CALCULATION OF CHANGES TO THE GROUP'S SHAREHOLDERS' EQUITY
The parent Company's shareholders' equity
Calculation of changes to shareholders' equity 1.1.-30.6.2007
Invested
free
Own Current
Share equity Own value Transl. Accumulated
Own equity equity fund shares fund diff. profits Tot.
1.1.2007
Own equity 7,686 11,558 -55 0 -27 16,729 35,891
Transl. difference conversion 39 39
Profit/loss for the financial period -2,736 -2,736
Distribution of dividend -1,477 -1,477
Equity-settled
share-based payments 6 6
Own equity 7,686 11,558 -55 0 12 12,522 31,723
30.6.2007
Calculation of changes to shareholders' equity 1.1.-30.60.2006
Invested
free
Own Current
Share equity Own value Transl. Accumulated
Own equity equity fund shares fund diff. profits Tot.
1.1.2006
Own equity 6,600 0 -119 -6 0 13,773 20,248
Profit/loss for the financial period 1,553 1,553
Total recognised profit
and loss for the
period 1 553 1 553
Issue
of own shares 64 64
Distribution of dividend -3,300 -3,300
Other items 1 1
Own equity 6,600 0 -55 -6 0 12,027 18,566
30.6.2006
CASH FLOW STATEMENT
1-6/07 1-6/06 1-12/06
Consolidated statements of cash flows
Cash flows from operations
Profit/loss for financial period -2,736 1,553 6,289
Adjustments:
Depreciation and decrease in value 1,110 69 871
Financial income and expenses 1,339 0 793
Taxes 0 319 435
Other adjustments -144 0 -361
Change in working capital:
Change in short-term receivables -227 -50 -102
Change in inventories 726 -3,390 9,308
Change in short-term liabilities -6,706 -461 -1,180
Interests paid -1,406 0 -3,548
Interest income received 70 6 305
Taxes paid -56 -117 -145
Net cash flow from operations -8,030 -2,071 12,665
Cash flows from investment activities
Investments in tangible and intangible
assets -478 0 -51
Acquisitions of subsidiary companies
net of cash acquired 0 -5 -22,325
Capital gains from
tangible and intangible assets 6,680 0 1,494
Repayment on other receivables 0 0 0
Repayment on loan receivables 50 4 2
Additional purchase price -1,500 0 0
Net cash flow from investments 4,752 -1 -20,880
Cash flows from financing activities
Share issue 0 0 12,644
Long-term loans, increase 6,500 0 13,859
Long-term loans, decrease -2,819 0 -34,836
Purchase and issue of own shares 0 64 64
Long-term loans, increase 2,993 0 32,974
Long-term loans, decrease -5,014 0 -20,617
Short-term loans, decrease -3,980 0 0
Dividends paid -1,475 -1,585 -3,286
Net cash flow from financing -3,795 -1,521 802
Change in financial resources -7,073 -3,593 -7,413
Liquid assets January 1, 2007 8,323 15,736 15,736
Liquid assets June 30, 2007 1,250 12,143 8,323
NOTES TO THE ACCOUNTS
This Interim Report was prepared in accordance with IAS 34 standard on Interim
Financial Reporting pursuant to the same principles applied in the Financial
Statement 2006. The Interim Report figures are unaudited.
All the future estimates and predictions on this announcement are based on the
company's current vision of the market and economical developments. Actual
events and results may differ considerably.
Due to the fact that Tiimari Plc had yet not engaged in Tiimari Retail
operations one year ago, the business operations cannot, as such, be compared to
the equivalent quarter of the previous year.
SEGMENT-SPECIFIC FIGURES
The Company's continued operations form two primary
Business segments: Tiimari Retail Oyj and Leo Longlife Design Oy.
Turnover by segment
EUR 1000 2007 2006 2007 2006 2006
4-6 4-6 1-6 1-6 1-12
Turnover
Tiimari business operations 13,174 0 27,324 0 27,478
Leo Longlife business operations 680 403 1,150 766 1,622
Other operations 0 117 0 458 3,719
Total 13,854 520 28,474 1,224 32,819
Profit / loss
Tiimari business operations -945 0 -1,256 0 6,717
Leo Longlife business operations 5 -155 -56 1 -385
Other operations -21 36 -84 274 -314
Total -961 -119 -1,396 275 6,018
Assets and liabilities by segment 30.06.07 30.06.06 31.12.06
Assets by segment EUR 1 000
Tiimari business operations 79,425 0 88,716
Leo Longlife business operations 4,141 1,333 3,660
Unaligned assets 3,861 19,851 11,584
Elimination -4,707 0 -4,832
Total 82,720 21,184 99,128
Liabilities by segment EUR 1 000
Tiimari business operations 7,062 0 15,101
Leo Longlife business operations 329 177 357
Unaligned liabilities 48,584 2,440 53,224
Elimination -4,978 0 -5,445
Total 50,997 2,617 63,237
CONTINGENT LIABILITIES 30.06.07 30.06.06 31.12.06
Financial institution loans against
the following securities 25,013 0 24,617
Real estate mortgages 2,361 0 8,029
Corporate mortgages 31,137 0 31,137
Pledged shares 1,476 0 1,476
Other own liabilities:
Irrevocable letters of credit 0 0 292
Other liabilities 13 13 13
OTHER TENANCY LIABILITIES
Due within one year 10,782 0 10,577
Due after one year 5,376 0 2,619
GROUP INVESTMENTS AND DEPRECIATIONS EUR 1,000
2007 2006 2006
1-6 1-6 1-12
Gross investments 465 5 150
Depreciations 7,224 2,000 859
CHANGES TO GROUP'S FINANCIAL INSTITUTION LOANS
30.06.07 30.06.06 31.12.06
Increase 9,493 0 46,833
Decrease -7,834 0 -55,451
Loan repayments -3,980 0 0
Total of changes -2,321 0 -8,618
CLOSE CIRCLE EVENTS
Tiimari Oyj Abp paid back a loan in the amout of MEUR 2.4 to Virala Oy Ab owned
by Member of the Board, Alexander Ehrnrooth on May 24, 2007.
Loans have not been granted to the key management persons.
Management's employment benefits 2007 2006 2007 2006 2006
4-6 4-6 1-6 1-6 1-12
Salaries and other short-term
employment benefits 55 35 140 45 271
Share-based benefits 6 2 6 2 7
KEY INDICATORS
1-6/07 1-6/06 1-12/06
Turnover 28,474 1,224 32,819
Operating profit / loss -1,396 275 6,018
Result of the financial period -2,736 272 4,829
Earnings / share, EUR -0.28 0.19 0.91
Earnings / share,
from continued operations EUR -0.28 0.05 0.70
SH equity / share, EUR 3.22 2.81 3.64
SH equity / share (diluted), EUR 3.22 2.81 3.64
Solvency ratio 38.35 % 87.64 % 36.20 %
Gearing (level of indebtedness) 116.18 % -65.24 % 95.05 %
Balance sheet total 82,720 21,184 99,128
Number of shares (average) 9,847,750 6,600,000 6,864,386
Interest-bearing net liabilities 36 856 -12 113 33 593
CALCULATION OF KEY INDICATORS
Earnings/share (EPS), EUR=
(Earnings before extraordinary items - taxes) / Avg. number of shares adjusted
for the share issue.
Shareholders' equity/share, EUR=
Shareholders' equity / Number of shares at the end of the preview period
Solvency ratio-%=
(Shareholders' equity*100)/(Balance sheet total-advance payments received)
Level of indebtedness (gearing)=
(Interest-bearing liabilities-cash at bank) * 100/SH equity
Interest-bearing net liabilities
Interest-bearing liabilities - cash at bank
SHAREHOLDERS
On June 30, 2007, Tiimari Oyj Abp had a total of 2768 shareholders.
Major shareholders, June 30, 2007.
% of shares and
Shares voting rights
Atine Group Oyj 2,081,216 21.1
Assetman Oy 1,000,000 10.2
Baltiska Handels A.B. 455,224 4.6
Cumasa Oy 407,625 4.1
Varma Mutual Pension Insurance Company 375,000 3.8
Ilmarinen Mutual Pension Insurance Company 351,781 3.6
Nordea Pankki Finland Oyj, administrative reg. 336,355 3.4
Pohjola Non-Life Insurance Company 202,092 2.1
Suomen Kauppayhtiöt Oy 125,000 1.3
Tapiola Suomi Mutual Fund 103,602 1.1
Troll Capital Oy 100,000 1.0
Moneda Consulting Oy 87,500 0.9
Syrjänen Jaakko 61,875 0.6
Illi Kristina 60,000 0.6
EQ Pankki Oy 50,000 0.5
Turpeinen Urho 50,000 0.5
Jyväsjärvi Juha 35,000 0.4
Lamy Oy 32,625 0.3
Mezera Oy 31,250 0.3
Mäki Raimo 30,500 0.3
Kallio Mika 29,687 0.3
Brade Jouko 28,750 0.3
Kontinon Yhteiseläkesäätiö Os B/TE 28,100 0.3
Soininmäki Seppo 26,050 0.3
Uusi-Kilponen Pekka 25,500 0.3
NOTIFICATIONS UNDER CHAPTER 2, SECTION 9 OF THE FINNISH SECURITIES MARKETS ACT
Virala Oy Ab announced on June 1, 2007 that its share of ownership and rights to
vote of Tiimari Oyj Abp has gone under 1/20. After the transaction, Virala Oy Ab
owned 0 of Tiimari Oyj Abp's shares.
Kristina Illi
Managing Director
Distribution: Helsinki Stock Exchange
Key media
www.tiimari.com
Further information: Managing Director Kristina Illi, tel. +358 (0)400 408 889
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