2015-04-21 08:00:00 CEST
2015-04-21 08:00:04 CEST
REGULATED INFORMATION
Efore - Interim report (Q1 and Q3)
EFORE PLC’S INTERIM REPORT JANUARY 1, – MARCH 31, 2015
Espoo, Finland, 2015-04-21 08:00 CEST (GLOBE NEWSWIRE) -- EFORE PLC Interim
Report April 21, 2015 at 9.00
This release is a summary of Efore's Interim Report January - March 2015. The
full report is a PDF file attachment to this stock exchange release and is
available on the company's website at the address www.efore.com.
January - March 2015 in brief:
- Net sales totalled EUR 23.5 million (EUR 19.2 million), up 22.8 % compared
with the corresponding period last year
- Results from operating activities EUR 0.7 million (EUR -0.6 million)
- Earnings per share were EUR -0.01 (EUR -0.02)
1-3/15 1-3/14 Change 1-12/1
4
Key indicators, EUR million 3 mo 3 mo % 12 mo
--------------------------------------------------------------------------------
Net Sales 23,5 19,2 22,8 85,3
Telecommunication sector 13,1 9,7 35,1 46,0
Industrial sector 10,4 9,5 9,7 39,3
Results from operating activities without 0,7 0,0 0,1
one-time items
Results from operating activities 0,7 -0,6 -2,0
Result before taxes -0,2 -0,9 -3,1
Net result -0,3 -0,9 -2,6
Earnings per share, EUR -0,01 -0,02 -0,05
Solvency ratio, % 38,1 40,1 -5,0 38,1
Gearing, % 4,4 12,6 65,1 9,0
Cash flow from business operations 1,8 1,6 3,8
Key indicators quaterly, EUR million Q1/201 Q4/201 Q3/201 Q2/201 Q1/201
5 4 4 4 4
--------------------------------------------------------------------------------
Net Sales 23,5 21,4 22,1 22,5 19,2
Telecommunication sector 13,1 11,0 12,2 13,1 9,7
Industrial sector 10,4 10,4 10,0 9,5 9,5
Results from operating activities 0,7 -0,5 1,6 -0,4 -0,6
without one-time items
Results from operating activities 0,7 -1,3 1,6 -1,6 -0,6
Financial estimate for the 2015
The Company estimates its net sales of financial year 2015 to be EUR 86-96
million and results from operating activities without one-time items to be EUR
2-5 million.
Riitta Järnstedt, Efore's Interim President and CEO:
“ From the sales point of view Efore had a good start to the year. The first
quarter net sales increased by 9.8 % compared with the previous quarter.
Furthermore, profitability improvement from the previous quarter shows that
the development actions have been right.
The net sales of telecom sector increased mainly driven by certain network
projects in Asia and volume ramp-up of the new products during the first
quarter.
The net sales of industrial sector ended up to the same level as previous
quarter which was a reasonable achievement when taking into account that there
were no big projects during the period under the review.
Efore's long term financial target is to reach 10% EBIT level and an average
annual net sales growth of 5-10%. In the short term Efore is focusing to
improve its profitability. The target is to reach at least 6% EBIT level at the
end of 2015.”
January - March net sales and financial development
The first quarter net sales totalled EUR 23.5 million (EUR 19.2 million). Net
sales of the telecommunication sector were EUR 13.1 million increasing 19.1 %
compared with the previous quarter. The net sales of industrial sector were EUR
10.4 million remaining at the same level as the previous quarter.
Results from the operating activities were EUR 0.7 million (EUR -0.6 million).
Higher than anticipated manufacturing costs as well as product development
costs higher than a year ago had a negative impact on results from operating
activities.
Business development
The telecommunication sector net sales growth was mainly boosted by roll-out of
certain network projects in Asia. Furthermore, there were volume ramp-ups for
new products during the first quarter.
The previously reported transfer of PCB assembly to EMS partner has progressed
as planned.
The net sales of industrial sector ended up to the same level as previous
quarter which was a reasonable achievement when taking into account that there
were no big projects during the period under the review.
The key target of Efore is still to balance its business areas by creating a
strong industrial sector alongside of the telecommunication sector and
developing the company structure to improve the profitability.
Outlook
During the last years the group has expanded to new markets enabling better
opportunities for growth. The 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 creating a base for the stability of the
demand.
Power supplies for LED lighting, instrumentation, medical equipment and
infrastructure offer several growth areas for Efore in the industrial sector.
Efore has invested in several product development projects and especially in
the telecom product portfolio a significant renewal has started. Network market
in Asia is expected to develop positively and Efore's main customers are
expected to be successful in these markets.
Investments and product development
Group investments in fixed assets during the period under review amounted to
EUR 1.0 million (EUR 0.9 million) which includes EUR 0.8 million capitalization
of product development costs.
During the period under review the total expenditure on R&D activities
including amortizations was EUR 2.6 million (EUR 1.8 million) representing 11.1
% (9,5 %) of net sales.
At the end of the period under review capitalized product development costs
amounted to EUR 6.4 million (EUR 4.8 million).
Financial position
The interest-bearing liabilities exceeded the consolidated interest-bearing
cash reserves by EUR 1.0 million (EUR 2.8) at the end of the period under
review. The consolidated net financial expenses were EUR 0.9 million (EUR 0,3
million). The cash flow from business operations was EUR 1.8 million (EUR 1.6
million). The cash flow after investments was EUR 0.8 million (EUR 0.6
million).
The Group's solvency ratio was 38.1 % (40.1 %) and the gearing was 4.4 % (12.6
%).
Liquid assets excluding undrawn credit facilities totalled EUR 7.6 million (EUR
8.4 million) at the end of the period under review. The balance sheet total
was EUR 60.3 million (EUR 56.0).
Personnel
The number of the Group's own personnel including temporary personnel averaged
929 (885) during the period under review and at the end the period under review
it was 1 069 (910). The increase in personnel amount was mainly due to
increase in temporary personnel in manufacturing.
Heikki Viika will start as the President and CEO of Efore Plc on June 1, 2015.
Efore Plc CFO and member of the Executive Management Team Riitta Järnstedt has
acted as interim President and CEO of the company from March 1, 2015.
Share, share capital and shareholders
At the end of the period under review the number of Efore Plc's own shares was
3 501 995 pcs.
The highest share price during the period under review was EUR 0.89 and the
lowest price was EUR 0.74. The average price during the period under review was
EUR 0.79 and the closing price was EUR 0.78. The market capitalization
calculated at the final trading price during the period under review was EUR
40.8 million.
The total number of Efore shares traded on the Nasdaq OMX Helsinki during the
period under review was 3.1 million pcs and their turnover value was EUR 2.4
million. This accounted for 5.5 % of the total number of shares 55 772 891 pcs.
The number of shareholders totalled 2824 (3057) 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 AGM's authorizations granted for the Board
of Directors as well as resolutions related to the Board of Directors'
organizing on March 31, 2015.
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 2014
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, and the total of the
individual figures when added together may differ from the totals shown.
Short-term risks and factors of uncertainty
The market typical fluctuation in demand can cause rapid changes in Efore's
business. The 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 a negative effect on Efore's business environment
A more comprehensive report on risk management is presented on the company's
web-sites.
Long-term targets
Efore Group's long term financial target is to reach 10% EBIT level and an
average annual net sales growth of 5-10%. Target is to grow especially in
industrial sector. Market driven product platforms and efficient R&D investment
utilization are key factors to support group's target to improve profitability.
In the short term Efore is focusing to improve its profitability. The target is
to reach at least 6% EBIT level at the end of 2015.
Efore does not consider the long term targets as market guidance for any given
year. It will issue separate financial estimate.
EFORE PLC
Board of Directors
Further information
For further information please contact Riitta Järnstedt, CFO & interim
President and CEO, on April 21, 2015 at 10 - 11 a.m., tel. +358 9 4784 6372.
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 Tunisia. Sales and marketing operations are
located in Europe, United States and China. In the fiscal year ending in
December 2014, consolidated net sales totaled EUR 85,3 million and the Group's
personnel averaged 914. The company's share is quoted on the Nasdaq OMX
Helsinki Ltd. www.efore.com
ENCL. Interim Report January - March 2015 including tables (pdf)
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