2014-04-23 08:00:03 CEST
2014-04-23 08:00:08 CEST
REGULATED INFORMATION
Efore - Interim report (Q1 and Q3)
EFORE GROUP INTERIM REPORT JANUARY 1, 2014 – MARCH 31, 2014
Espoo, Finland, 2014-04-23 08:00 CEST (GLOBE NEWSWIRE) -- EFORE PLC Interim
Report April 23, 2014 9 a.m.
As a result of changing Efore's financial year, FY 2013 figures in brackets
have been changed to match with the periods of the financial year 2014.
Furthermore, when comparing the figures it should be noticed that the last year
acquired Roal has been consolidated into Efore Group from the beginning of July
2013. FY 2013 Income Statements figures are shown at the end of this release in
a separate table.
January - March 2014 in brief:
- Net sales totaled EUR 19.2 million (EUR 15.3 million)
- Results from operating activities amounted to EUR -0.6 million (EUR -1.5
million)
- Results from operating activities without one-time items were EUR -0.6
million (EUR -1.2 million)
- Result before taxes was EUR -0.9 million (EUR -1.7 million)
- Result for the period was EUR -0.9 million (EUR -1.7 million)
- Earnings per share were EUR -0.02 (EUR -0.04)
FY 2013 key figures (figures have been changed to match with the periods of the
financial year 2014)
Q1/201 Q2/201 Q3/201 Q4/201 Q1/201
3 3 3 3 4
EUR million
Net sales 15,3 13,8 22,0 23,3 19,2
Results from operating activities -1,2 -1,4 -0,6 0,2 -0,6
without one-time items
Financial estimate for the financial year 2014
The Company estimates its net sales of financial year 2014 to be EUR 85-95
million and results from operating activities without one-time items to be EUR
1.5-3.5 million.
Outlook
As a result of the acquisition the group has expanded into new markets which
creates new opportunities for the growth. LTE (4G) technology is in a key role
in network expansions and Efore has a strong position in this development.
Several large network roll-outs have been published after two slow years
creating base for demand growth. Power supplies for LED lighting,
instrumentation, medical and infrastructure offer several growth areas for
Efore in industrial sector.
During the last 18 months the group has started several new product development
projects and especially telecom product portfolio is renewing significantly
this year. New products make Efore's product portfolio wider, which is expected
to be visible as sales growth and as a decrease in demand fluctuations.
Getting new products into volume deliveries as forecasted is essential for the
growth and profitability improvement of the company.
In the near future, Efore is focusing on introducing new products into volume
production and on necessary profitability improvement actions. Due to the
renewal of product portfolio and streamlining actions financial year 2014
improves towards the end.
Vesa Vähämöttönen, Efore's President and CEO:
“Efore's first quarter net sales were low but according to forecasts. Sales
margins of the products were on earlier level but decreased volumes reflected
the company's profitability while the relative share of the fixed costs, such
as investment in product development, increased. However, the results of the
cost reduction actions started last year can be seen as a reduction of the cost
base. Due to the renewal of product portfolio financial year 2014 improves
towards the end.
Efore is in the transformation phase. Due to last year made acquisition the
company is serving new markets and has more businesses to stand on. Efore
continues the transformation work according to its strategy targeting to be a
leading power products company in its selected segments in telecommunications
and industrial markets. Cost base reduction work continues and year 2014 is
expected to be the turn into positive in financial performance. Efore is
progressing first towards its target to reach 6% EBIT at latest at the end of
2015 and further to reach its long term target of 10 % EBIT level via
profitable growth. The target announced together with the acquisition to reach
EUR 1,5 million synergy benefits in material purchases by the next July will be
met.
Efore's position with its main telecom customers has remained strong.
Reason for the telecom sector sales decline is a result of faster than
forecasted demand decrease of current volume products. Behind this trend which
started already last year is customers' sales concentration for the products
which don't have Efore's power produts. During the last 18 months the company
has started several new product development projects and especially telecom
product portfolio is renewing significantly this year. New products make
Efore's product portfolio wider, which is expected to be visible as sales
growth and as a decrease in demand fluctuations.
In industrial sector Efore focuses on developing power products for LED,
instrumentation, infrastructure and medical markets. Especially power supply
units for LED lighting offer growth opportunities due to fast growth and
development of this market. Efore continues to invest in regional sales
organizations especially in North America and Europe targeting to find new
customers. Several new products like, upgraded series of
electromagnetic-pulse-proof cabinets and new, higher power Intelligent LED
driver series, have been launched for industrial sector.”
First quarter net sales and financial development
First quarter net sales totaled EUR 19.2 million (EUR 15.3 million) and results
from operating activities amounted to EUR -0.6 million (EUR -1.5 million).
Efore first quarter net sales were low but according to forecasts. Sales
margins of the products maintained but decrease in volume reflected in the
company's profitability while the relative share of the fixed costs, such as
investment in product development, increased. However, the results of the cost
reduction actions started last year can be seen. Due to the renewal of product
portfolio financial year 2014 improves towards the end.
Investment in product and technology development during the period under review
was EUR 1.8 million (EUR 1.8 million) representing 9.5 % (11.8 %) of net sales.
Investments
Group investments in fixed assets during the period under review amounted to
EUR 0.9 million (EUR 0.7 million) of which capitalization of product
development costs were EUR 0.8 million.
At the end the period under review capitalized product development costs
amounted to EUR 4.8 million (EUR 0.6 million).
Financial position
Interest-bearing liabilities exceeded the consolidated interest-bearing cash
reserves by EUR 2.8 million (EUR 3.3 million on Dec. 31, 2013) at the end of
the period under review. The consolidated net financial expenses were EUR 0.3
million (EUR 0.2 million). The cash flow from business operations was EUR 1.6
million (EUR -0.4 million). The cash flow after investments was EUR 0.6 million
(EUR -0.6 million).
The Group's solvency ratio was 40.1 % (41.5 %) and the gearing was 12.6 % (-1.1
%).
Liquid assets excluding undrawn credit facilities totaled EUR 8.4 million (EUR
9.8 million on Dec. 31, 2013) at the end of the period under review. The
balance sheet total was EUR 56.0 million (EUR 58.5 million on Dec. 31, 2013).
Personnel
The number of the Group's own personnel including temporary personnel averaged
885 (803) during the period under review and at the period under review it was
910 (797).
Share, shares and share holders
At the end of the period under review the number of the Group's own shares was
1.143.753. In addition to this Efore Management Oy, a company belonging to
Efore group owned 2.358.242 pcs of Efore shares.
The highest share price during the period under review was EUR 0.72 and the
lowest price was EUR 0.62. The average price during the period under review was
EUR 0.69 and the closing price was EUR 0.69. The market capitalization
calculated at the final trading price during the period under review was EUR
36.1 million.
The total number of Efore shares traded on the Nasdaq OMX Helsinki during the
period under review was 1.6 million pcs and their turnover value was EUR 1.1
million. This accounted for 2.85 % of the total number of shares 55,772,891
pcs. The number of shareholders totaled 3057 (3110) at the end of the period
under review.
Decisions of the Annual General Meeting
A separate stock exchange bulletin has been issued on resolutions of the Annual
General Meeting of Shareholders and and AGM's authorizations granted for the
Board of Directors as well as resolutions related to the Board of Directors'
organizing on April 11, 2014.
Accounting policies
The report has been drawn up in accordance with IAS 34 Standard on Interim
Financial Reporting and the Group's accounting principles presented in the 2013
annual report. In addition, Efore Plc has adopted new and or amended
IFRS-standards that have been presented in the previous Financial Statements.
These changes have no any major effect on the report. The information in this
release is unaudited.
All the figures in the report have been rounded up/down, for which reason the
total of the individual figures when added together may be different from the
total shown.
Short-term risks and factors of uncertainty
The market typical fluctuation in demand can cause rapid changes in Efore's
business. Business risks are related to the success of key customers in their
markets and to Efore's delivery capability for the key customers.
Progress of Efore's product development projects depends on the customers' own
project schedules and the establishment of the whole market.
Expanding the company's product range to standard products in industrial sector
means growth of product liability risk. It has been recognized that global
economic development may have an effect on Efore's business environment
A more comprehensive report on risk management is presented on the company's
web-sites.
TABLES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million Jan/14 Jan/13 Nov/12
March/ March/ Dec/13
14 13
3 3 14
months months months
Net sales 19,2 15,3 82,5
Change in inventories of
finished goods and work in progress 1,0 0,0 -0,9
Work performed for own purposes and
capitalised 0,0 0,0 0,0
Other operating income 0,2 0,0 1,4
Materials and services -13,3 -10,9 -56,9
Employee benefits expenses -4,5 -3,6 -17,7
Depreciation -0,9 -0,6 -3,2
Other operating expenses -2,1 -1,8 -10,9
RESULTS FROM OPERATING ACTIVITIES -0,6 -1,5 -5,8
% net sales -2,9 -9,9 -7,0
Financing income 0,1 0,3 1,7
Financing expenses -0,5 -0,5 -2,0
RESULT BEFORE TAX -0,9 -1,7 -6,1
% net sales -4,7 -11,1 -7,3
Tax on income from operations 0,0 0,0 -0,1
RESULT FOR THE PERIOD -0,9 -1,7 -6,2
OTHER COMPREHENSIVE INCOME:
Items that may be reclassified subsequently to profit or loss
Translation differences -0,3 0,4 -0,6
Total comprehensive income -1,2 -1,3 -6,7
NET PROFITT/lOSS ATTRIBUTABLE
To equity holders of the parent -0,9 -1,7 -6,1
To non-controlling interest 0,0 0,0 -0,1
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
Equity holders of the parent -1,2 -1,3 -6,7
Non-controlling interest 0,0 0,0 -0,1
EARNINGS PER SHARE CALCULATED ON PROFIT ATTRIBUTABLE TO
EQUITY HOLDERS OF THE PARENT:
Earnings per share, basic,eur -0,02 -0,04 -0,15
Earnings per share, diluted, eur -0,02 -0,04 -0,15
INFORMATION ABOUT GEOGRAPHICAL Jan/14 Jan/13 Nov/12
AREAS, EUR million March/ March/ Dec/13
14 13
3 3 14
months months months
Americas 3,4 0,1 7,5
EMEA 7,9 7,9 40,4
FINLAND 2,8 2,6 10,9
APAC 5,1 4,7 23,7
Total 19,2 15,3 82,5
INFORMATION ABOUT CUSTOMER Jan/14 Jan/13 Nov/12
AREAS, EUR million March/ March/ Dec/13
14 13
3 3 14 months months months
Telecom 9,7 11,2 48,6
Industrial 9,5 4,1 33,9
Total 19,2 15,3 82,5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million March 31, Dec, 31 change
2014 2013 %
ASSETS
NON-CURRENT ASSETS
Intangible assets 7,3 6,9
Goodwill 1,1 1,1
Tangible assets 7,3 7,8
Trade receivables and other receivables, non-current 0,0 0,0
Other long-term investments 0,0 0,0
Deferred tax asset 2,3 2,3
NON-CURRENT ASSETS 18,0 18,1 -0,2
CURRENT ASSETS
Inventories 15,7 14,6
Trade receivables and other receivables 13,1 15,2
Tax receivable, income tax 0,8 0,8
Cash and cash equivalents 8,4 9,8
CURRENT ASSETS 37,9 40,4 -6,0
ASSETS 56,0 58,5 -4,2
EQUITY AND LIABILITIES
EQUITY
Share capital 15,0 15,0
Treasury shares -2,4 -2,4
Other reserves 29,0 29,0
Translation differences 1,1 1,4
Retained earnings -20,8 -19,9
Equity attributable to equity holders of the parent 21,9 23,0
Equity attributable to non-controlling interests 0,2 0,2
EQUITY 22,1 23,2 -4,7
NON-CURRENT LIABILITIES
Deferred tax liabilities 0,9 0,9
Interest-bearing liabilities 3,9 3,9
Interest-free liabilities 0,0 0,0
Pension liabilities 1,7 1,6
NON-CURRENT LIABILITIES 6,6 6,4 2,7
CURRENT LIABILITIES
Interest-bearing liabilities 7,2 9,2
Trade payables and other liabilities 19,8 19,1
Tax liabilities 0,2 0,5
Provisions 0,0 0,0
CURRENT LIABILITIES 27,3 28,8
LIABILITIES 33,9 35,3
TOTAL EQUITY AND LIABILITIES 56,0 58,5 -4,2
GROUP KEY FIGURES, EUR million Jan/14 Jan/13 Nov/12
March/14 March/13 Dec/13
3 months 3 months 14 months
Earnings per share, basic,eur -0,02 -0,04 -0,15
Earnings per share, diluted, eur -0,02 -0,04 -0,15
Equity per share, eur 0,42 0,46 0,44
Solvency ratio,% 40,1 41,5 39,7
Return on equity-%(ROE) -16,1 -9,2 -28,1
Return on investment-%(ROI) -8,3 -7,8 -17,5
Gearing, % 12,6 -1,1 14,3
Net interest-bearing liabilities 2,8 -0,2 3,3
Investments (intangible and tangible assets) 0,9 0,7 3,6
as percentage of net sales 4,5 4,5 4,3
Average personnel 885 803 836
CONSOLIDATED STATEMENT OF CASH FLOWS Jan/14- Jan/13 change Nov/12
EUR million March/14 March/1 % Dec/13
3
Cash flows from operating activities
Cash receipts from customers 23,5 8,3 95,3
Cash paid to suppliers and employees -21,4 -8,7 -93,5
Cash generated from operations 2,0 -0,4 1,8
Interest paid -0,1 0,0 -0,3
Interest received 0,0 0,0 0,0
Other financial items -0,1 0,1 0,0
Income taxes paid -0,2 -0,1 -0,2
Net cash from operating activities (A) 1,6 -0,4 -478,5 1,4
Cash flows from investing activities
Purchase of tangible and intangible assets -1,0 -0,2 -2,9
Proceeds from sale of tangible and intangible 0,0 0,0 0,2
assets
Acquisition of subsidiaries, net of cash -4,1
acguired
Purchase of investments 0,0 0,0 0,0
Loans granted 0,0 0,0 0,0
Additon/deduction of cash equivalents 0,0
Income taxes paid 0,0 0,0 0,0
Net cash used in investing activities (B) -1,0 -0,2 338,0 -6,9
Cash flows from financing activities
Proceeds from issue of share capital 5,3
Proceedings from short-term borrowings 0,0 0,6 9,8
Repayment of short-term borrowings -1,9 0,0 -4,9
Proceeds from long-term borrowings 0,0 1,6 3,0
Repayment of long-term borrowings 0,0 -0,3 -2,0
Financial leasing repayment 0,0 0,0 -0,2
Net cash used in financing activities (C) -1,9 2,0 11,0
Net increase/decrease in cash and cash
equivalents (A+B+C) -1,3 1,3 11,0
Cash and cash equivalents at beginning of 9,8 5,2 4,5
period
Net increase/decrease in cash and cash -1,3 1,3 5,5
equivalents
Effects of exchange rate fluctuations on cash -0,1 0,4 -0,2
held
Cash and cash equivalents at end of period 8,4 6,9 9,8
GROUP CONTINGENT LIABILITIES March Dec, 31
31,
EUR million 2014 2013
Security and contingent liabilities
For others
Other contingent liabilities 0,1 0,1
Operating lease commitments
Group as lessee
Non-cancellable minimum operating lease
payments:
Less than 1 year 1,0 1,0
1-5 years 0,4 0,4
Fair values of derivate financial instruments
Currency derivatives, not hedge
Option contract
Nominal amount 1,7 2,0
Negative fair value 0,0 0,0
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A Share capital
B Treasury shares
C Unrestricted equity reserve
D Other reserves
E Translation differences
F Retained earnings
G Equity holders of the parent
H Non-controlling interests
I Total
EUR million A B C D E F G H I
Equity 15,0 -2,5 18,8 1,0 0,7 -13,7 19,3 0,2 19,5
January 1, 2013
Comprehensive income 0,0 0,0 0,0 0,0 0,4 -1,7 -1,3 0,0 -1,3
Equity 15,0 -2,5 18,8 1,0 1,1 -15,4 18,0 0,2 18,2
March 31, 2013
EUR million A B C D E F G H I
Equity 15,0 -2,4 28,0 1,0 1,4 -19,9 23,0 0,2 23,2
January 1, 2014
Comprehensive income 0,0 0,0 0,0 0,0 -0,3 -0,9 -1,2 0,0 -1,2
Share-based incentive 0,0 0,0 0,0 0,0 0,0 0,1 0,1 0,0 0,1
programme
Other changes 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
Equity 15,0 -2,4 28,0 1,0 1,1 -20,8 21,9 0,2 22,1
March 31, 2014
FY 2013 - CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
EUR million Nov/12 Jan/13 April/1 July/13 Oct/13 Nov/12
3
Dec/12 March/1 June/13 Sep/13 Dec/13 Dec/13
3
2 3 3 3 3 14
months months months months months months
Net sales 8,0 15,3 13,8 22,0 23,3 82,5
Change in inventories of
finished goods and work in 1,4 0,0 -2,6 2,1 -1,8 -0,9
progress
Work performed for own
purposes and
capitalised 0,0 0,0 0,0 0,0 0,0 0,0
Other operating income 0,1 0,0 0,1 0,4 0,8 1,4
Materials and services -6,9 -10,9 -7,6 -17,3 -14,2 -56,9
Employee benefits expenses -2,4 -3,6 -3,4 -4,3 -4,0 -17,7
Depreciation -0,4 -0,6 -0,4 -1,0 -0,9 -3,2
Other operating expenses -1,1 -1,8 -1,8 -3,3 -3,0 -10,9
RESULTS FROM OPERATING -1,2 -1,5 -1,9 -1,3 0,2 -5,8
ACTIVITIES
% net sales -15,5 -9,9 -13,5 -5,9 0,8 -7,0
Financing income 0,2 0,3 0,3 0,5 0,3 1,7
Financing expenses -0,2 -0,5 -0,2 -0,5 -0,5 -2,0
RESULT BEFORE TAX -1,3 -1,7 -1,8 -1,3 0,0 -6,1
% net sales -16,0 -11,1 -13,2 -5,7 0,0 -7,3
Tax on income from 0,1 0,0 0,1 0,0 -0,4 -0,1
operations
RESULT FOR THE PERIOD -1,1 -1,7 -1,7 -1,2 -0,4 -6,2
OTHER COMPREHENSIVE
INCOME:
Items that may be reclassified
subsequently to profit or loss
Translation differences -0,2 0,4 -0,2 -0,4 -0,2 -0,6
Total comprehensive income -1,4 -1,3 -1,9 -1,7 -0,6 -6,7
NET PROFITT/lOSS
ATTRIBUTABLE
To equity holders of the -1,1 -1,7 -1,7 -1,2 -0,4 -6,1
parent
To non-controlling 0,0 0,0 0,0 0,0 0,0 -0,1
interest
TOTAL COMPREHENSIVE
INCOME
ATTRIBUTABLE TO:
Equity holders of the -1,4 -1,3 -1,8 -1,7 -0,6 -6,7
parent
Non-controlling interest 0,0 0,0 0,0 0,0 0,0 -0,1
31.3.2014
CALCULATION OF
KEY
FIGURES AND
RATIOS
Return on = Profit before taxes+interest and other financing x 100
investment expenses /
(ROI), % (Equity + interest-bearing liabilities, average )
Return on Equity = Profit/loss for the period / Equity (average ) x 100
(ROE), %
Current ratio = Current assets / Current liabilities
Solvency ratio, % = Equity / (Total assets - advance payments received x 100
- own shares*)
Net = Interest-bearing liabilities - financial assets at
interest-bearing fair value through profit or loss - cash and cash
liabilities equivalents
Gearing, % = Net interest-bearing liabilities / Equity x 100
Earnings per = Profit or loss attributable to ordinary equity
share, diluted holders of the parent entity/ The weighted average
number of ordinary shares outstanding including
dilutive effect
Dividend per = Dividend for the financial year / The weighted average
share number of ordinary shares outstanding
Dividend payout = Dividend per share / Earnings per share x 100
ratio, %
Effective = Dividend per share /Share price at balance sheet x 100
dividend yield, date
%
Equity per share = Equity - own shares* /Number of shares at
balance sheet date
P/E-ratio = Share price at balance sheet date / Earnings per
share
Market = Share price at balance sheet date x outstanding
capitalization = number of shares at balance sheet date
Average personnel = The average number of employees at the end of
each calendar month during the accounting
period
All share-specific figures are based on the issue-adjusted number of
shares.
When calculating per share performance measures equity is the equity
attributable to the shareholders of the parent company, when
calculating other performance measures equity includes equity
attributable to the shareholders of the parent company and
non-controlling interests.
* There were own shares held by company March 31, 2014.
EFORE PLC
Board of Directors
Further information
For further information please contact Mr.Vesa Vähämöttönen, President and CEO,
on April 23, 2014 at 9 - 11 a.m., tel. +358 9 4784 6312.
DISTRIBUTION
Nasdaq OMX Helsinki Oy
Principal media
Efore Group
Efore Group is an international company which develops and produces demanding
power products. Efore's head office is based in Finland and its production
units are located in China and Tunis. Sales and marketing operations are
located in Europe, United States and China. In the fiscal year ending in
December 2013, consolidated net sales totaled EUR 82.5 million and the Group's
personnel averaged 836. The company's share is quoted on the Nasdaq OMX
Helsinki Ltd. www.efore.com
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