Restamax Oyj - Financial Statement Release

RESTAMAX PLC'S INTERIM REPORT FOR 1 JANUARY-31 DECEMBER 2014: Turnover increased by 33.2 per cent and profitability improved

Restamax Plc

INTERIM REPORT 20 FEBRUARY 2015 at 10:00AM


RESTAMAX PLC'S INTERIM REPORT FOR 1 JANUARY-31 DECEMBER 2014

Turnover increased by 33.2 per cent and profitability improved


TURNOVER AND RESULT

Group's result for October-December 2014

Entire Group:
The Group's turnover was MEUR 26.4 (MEUR 17.9), growth of 46.9 per cent. EBITDA
was MEUR 4.5 (MEUR 3.3), growth of 35.3 per cent. Operating profit was MEUR 2.3
(MEUR 2.0), growth of 13.1 per cent.

Restaurant business:
The turnover of the restaurant business segment was MEUR 24.6 (MEUR 17.9),
growth of 36.9 per cent. EBITDA was MEUR 4.1 (MEUR 3.3), growth of 23.4 per
cent. Operating profit was MEUR 2.2 (MEUR 2.0), growth of 5.4 per cent.

Labour hiring business:
The turnover of the labour hiring business segment was MEUR 4.2. EBITDA was MEUR
0.5. Operating profit was MEUR 0.2. (New business segment, no comparison
figures.)

Group's result for 2014

Entire Group:
The Group's turnover was MEUR 86.7 (MEUR 65.0), growth of 33.2 per cent. EBITDA
was MEUR 12.0 (MEUR 9.1), growth of 31.3 per cent. Operating profit was MEUR
5.3 (MEUR 4.1), growth of 30.0 per cent.

Restaurant business:
The turnover of the restaurant business segment was MEUR 83.7 (MEUR 65.0),
growth of 28.7 per cent. EBITDA was MEUR 11.4 (MEUR 9.1), growth of 25.1 per
cent. Operating profit was MEUR 5.0 (MEUR 4.1), growth of 22.4 per cent.

Labour hiring business:
The turnover of the labour hiring business segment was MEUR 6.8. EBITDA was MEUR
0.7. Operating profit was MEUR 0.3. (New business segment, no comparison
figures.)

As expected, the income of the review period was clearly better than that of
last year. EBITDA for the entire Group also increased when compared to the same
period last year. The reasons behind the increase in turnover are the
investments made during the financial period. Non-recurring items from business
acquisitions have affected the income for the period under review. The
integration of a new business segment into the Group's business is starting,
which can be seen in the level of profitability of the labour hiring business
for the period under review.


PROSPECTS FOR 2015

Result management (as of 20 February 2015):

Restamax estimates that the Group's turnover will exceed EUR 100 million during
the 2015 financial period, and the EBITDA and operating profit will relatively
improve from the previous financial period.

+----------------------------------------+---------+---------+--------+--------+
|KEY FIGURES                             |         |         |        |        |
+----------------------------------------+---------+---------+--------+--------+
|Restamax Group in total                 |         |         |        |        |
+----------------------------------------+---------+---------+--------+--------+
|(TEUR)                                  | 10-12/14| 10-12/13| 1-12/14| 1-12/13|
+----------------------------------------+---------+---------+--------+--------+
|                                        |         |         |        |        |
+----------------------------------------+---------+---------+--------+--------+
|SIGNIFICANT FIGURES,                    |         |         |        |        |
|entire group                            |         |         |        |        |
+----------------------------------------+---------+---------+--------+--------+
|Turnover                                |   26,358|   17,947|  86,653|  65,033|
+----------------------------------------+---------+---------+--------+--------+
|EBITDA                                  |    4,519|    3,339|  12,008|   9,146|
+----------------------------------------+---------+---------+--------+--------+
|EBITDA, %                               |    17.1%|    18.6%|   13.9%|   14.1%|
+----------------------------------------+---------+---------+--------+--------+
|Operating profit                        |    2,308|    2,041|   5,265|   4,051|
+----------------------------------------+---------+---------+--------+--------+
|Operating profit, %                     |     8.8%|    11.4%|    6.1%|    6.2%|
+----------------------------------------+---------+---------+--------+--------+
|Review period result                    |    1,554|    1,727|   3,334|   2,908|
+----------------------------------------+---------+---------+--------+--------+
|To shareholders of the parent company   |    1,499|    1,556|   3,451|   2,565|
+----------------------------------------+---------+---------+--------+--------+
|To minority shareholders                |       55|      171|    -117|     344|
+----------------------------------------+---------+---------+--------+--------+
|Earnings per share (euros) to the       |         |         |        |        |
|shareholders of the parent company      |     0.09|     0.11|    0.22|    0.24|
+----------------------------------------+---------+---------+--------+--------+
|Interest-bearing net liabilities        |         |         |  18,944|   6,184|
+----------------------------------------+---------+---------+--------+--------+
|Gearing ratio, %                        |         |         |   48.1%|   21.9%|
+----------------------------------------+---------+---------+--------+--------+
|Equity ratio, %                         |         |         |   47.2%|   60.9%|
+----------------------------------------+---------+---------+--------+--------+
|Return on investment, % (p.a.)          |         |         |    8.4%|   10.7%|
+----------------------------------------+---------+---------+--------+--------+
|Dividend per share (euros)*             |         |         |    0.22|    0.09|
+----------------------------------------+---------+---------+--------+--------+
*Board of Directors' proposal

+-------------------+---------+---------+--------+--------+
|Restaurant business|         |         |        |        |
+-------------------+---------+---------+--------+--------+
|(TEUR)             | 10-12/14| 10-12/13| 1-12/14| 1-12/13|
+-------------------+---------+---------+--------+--------+
|                   |         |         |        |        |
+-------------------+---------+---------+--------+--------+
|Turnover           |   24,565|   17,947|  83,666|  65,033|
+-------------------+---------+---------+--------+--------+
|EBITDA             |    4,122|    3,339|  11,444|   9,146|
+-------------------+---------+---------+--------+--------+
|EBITDA, %          |    16.8%|    18.6%|   13.7%|   14.1%|
+-------------------+---------+---------+--------+--------+
|Operating profit   |    2,151|    2,041|   4,957|   4,051|
+-------------------+---------+---------+--------+--------+
|Operating profit, %|     8.8%|    11.4%|    5.9%|    6.2%|
+-------------------+---------+---------+--------+--------+
|                   |         |         |        |        |
+-------------------+---------+---------+--------+--------+
|SIGNIFICANT FIGURES|         |         |        |        |
+-------------------+---------+---------+--------+--------+
|                   |         |         |        |        |
+-------------------+---------+---------+--------+--------+
|Material margin, % |         |         |   74.0%|   73.9%|
+-------------------+---------+---------+--------+--------+
|Staff expenses, %  |         |         |   29.6%|   30.1%|
+-------------------+---------+---------+--------+--------+

+----------------------+---------+---------+---------+--------+
|Labour hiring business|         |         |         |        |
+----------------------+---------+---------+---------+--------+
|(TEUR)                | 10-12/14| 10-12/13| 1-12/14*| 1-12/13|
+----------------------+---------+---------+---------+--------+
|                      |         |         |         |        |
+----------------------+---------+---------+---------+--------+
|Turnover              |    4,199|         |    6,833|        |
+----------------------+---------+---------+---------+--------+
|EBITDA                |      530|         |      696|        |
+----------------------+---------+---------+---------+--------+
|EBITDA, %             |    12.6%|         |    10.2%|        |
+----------------------+---------+---------+---------+--------+
|Operating profit      |      157|         |      308|        |
+----------------------+---------+---------+---------+--------+
|Operating profit, %   |     3.7%|         |     4.5%|        |
+----------------------+---------+---------+---------+--------+
|                      |         |         |         |        |
+----------------------+---------+---------+---------+--------+
|SIGNIFICANT FIGURES   |         |         |         |        |
+----------------------+---------+---------+---------+--------+
|                      |         |         |         |        |
+----------------------+---------+---------+---------+--------+
|Staff expenses, %     |         |         |    84.0%|        |
+----------------------+---------+---------+---------+--------+

* Figures include a non-recurring asset transfer tax of approximately EUR
125,000 from a corporate transaction.
The Staff Invest acquisition was finalised on 1 August 2014 and the Huippu
Henkilöstöpalvelut acquisition was finalised on 15 September 2014.


CEO MARKKU VIRTANEN

The last quarter of 2014 as expected

Restamax's growth speed has been upbeat throughout its history. The listing
supporting our growth strategy and the related share issue that took place at
the end of 2013 have made possible investments that bring significant
competitive advantage; a large number of these were realised during 2014.

The last quarter of 2014 met expectations. Despite the weak overall financial
situation, the decline in the consumers' buying power and loss of demand, we
have managed to retain our long-term profitability at a good level. Even though
we lowered our profit guidance in October due to the poor September result, we
achieved an excellent result this year under rather challenging market
conditions.

The strong growth of our Group resulted in more non-recurring items than
expected during 2014, some EUR 600,000 in total. These included expert fees, the
integration costs of the new labour hiring segment and asset transfer taxes. The
result was also affected by the indirect integration costs of new business and
the opening of new restaurants. The general increase in the cost level also
affected the investments made more than was expected, and this in turn affected
operating income.

The business acquisitions made during 2014 were completed during the past
financial period, which means that the purchased businesses are now fully
available to us.

The downturn of the business continued

In 2014, the restaurant business experienced a downtrend. The sale of alcohol
continued to decline and the growth in the sale of food has slowed down.
Customer behaviour is also undergoing a change. Customers are consuming less
than before and their average purchases are smaller.

A turn for the positive can be seen in the partial reinstitution of deductible
representation expenses that allows companies to deduct 50% of their
representation expenses in their income taxation starting from the beginning of
2015. This decision will support the demand for tourism and restaurant services,
increase employment and bring tax revenues to the State.

Even though the restaurant industry is facing a number of challenges, the future
appears bright in the longer term. I believe that the economic recovery and
urbanisation will continue to increase demand for services in this field. The
tourism and restaurant sector creates a substantial number of jobs and brings
the State in excess of EUR 5 billion in tax revenues each year. I hope that the
decision-makers acknowledge the importance of this sector and make good
decisions concerning the value added tax and alcohol taxation in order to ensure
the prerequisites for growth.

A strong growth platform for labour hiring services

We began operating in the labour hiring segment in August. Smile
Henkilöstöpalvelut Oy will help us ensure the sufficient availability of
personnel in the future and support the growth of our company. During the latter
half of the year, we made a number of changes, investments and corporate
arrangements in order to integrate the new segment into our activities. Labour
hiring will remain a substantial part of our business, and the actions taken now
will form a strong growth platform for the future.

Motivated personnel and comprehensive partner network

I am rather pleased with the level of commitment and operation of our personnel
in 2014. The personnel resources that were released due to the listing are now
fully available to us. During the last quarter we made a number of successful
changes in the Executive Team that will support the implementation of our future
growth plan. On 1 March 2015, Vice CEO Harri Niskanen will join us in developing
our activities. His valuable professional expertise will strengthen the
leadership of our Group.

The significance of our partners has also increased further. We have expanded
our partner network and boosted the cooperation with our contract suppliers.

Supplementing the restaurant portfolio

During the period under review, we expanded our operations towards the growing
northern tourism centres in Ruka and Pyhä by opening five restaurants. We also
added three new nightclubs into our portfolio. The purchase of the Apollo and
Tivoli nightclubs expanded our operations into Oulu, a new market area; in Pori,
we strengthened our current market position by purchasing the Cabaret nightclub.
We also strengthened our cooperation with Hans Välimäki by opening the August
von Trappe Belgian restaurant in Tampere; in early 2015, this restaurant chain
expanded into Helsinki. Today, our Group comprises approximately 100 restaurants
in different parts of Finland.Today, our Group comprises approximately 100
restaurants in different parts of Finland.

Despite the challenging general economic situation, we were able to maintain
good profitability in 2014; it was clearly above the average profitability
within the industry. Our goal is to maintain good profitability and to exceed a
turnover of MEUR 100 during the 2015 financial period. It seems that our
turnover goal will be met clearly.

Markku Virtanen
CEO


DIVIDEND, AND DIVIDEND POLICY

Restamax Plc's distributable profits on 31 December 2014 were EUR
46,804,621.77, of which the share of the financial period is EUR 10,027,067.44.
There have been no significant changes to the company's financial situation
since the end of the financial period.

Restamax Plc's Board of Directors proposes to the Annual General Meeting to be
held on 22 April 2015 that EUR 0.22 per share, a total of EUR 3,603,516.40
(16,379,620 shares), be paid as dividend for the financial period ended on 31
December 2014 based on the adopted balance sheet.

Restamax's goal is to pay a competitive dividend each year. When determining the
dividend level, the amount of distributable unrestricted equity, the company's
profit development and future prospects are considered.


CASH FLOW, INVESTMENTS AND FINANCING

The Group's operating net cash flow in 2014 was MEUR 8.2 (MEUR 2.9).

During the review period ended, Restamax has made significant corporate
acquisitions and growth investments, for example by expanding its operations
into labour hiring services and opening new restaurants.

The Group's interest-bearing net liabilities at the end of December were MEUR
18.9 (MEUR 6.2). The net financial expenses in January-December were EUR
548,400 (EUR 451,200). Equity ratio was 47.2 per cent (60.9 per cent) and
gearing ratio 48.1 per cent (21.9 per cent).


RESTAMAX PLC'S FINANCIAL REPORTING IN 2015

Restamax Plc will publish the 2014 interim report on 20 February 2015. Restamax
Group's 2014 annual report will be published during week 14. The interim reports
for 2015 will be published as follows:

January-March 8 May 2015
January-June 7 August 2015
January-September 6 November 2015

Restamax Oyj's Annual General Meeting will be held in Tampere on Wednesday 22
April 2015. The invitation to the general meeting will be published during week
14.

The full Restamax interim report for January-December 2014 is appended to this
release in PDF format. The interim report is also available on the company's
website at www.restamax.fi.


Tampere, 20 February 2015

RESTAMAX PLC
Board of Directors

APPENDIX: Restamax Plc Interim Report 2014

More information:
Markku Virtanen, Restamax Plc, CEO, tel. +358 400 836 477
Timo Laine, Restamax Plc, Chairman of the Board of Directors, tel.
+358 400 626 064

Distribution:
NASDAQ OMX Helsinki
Major media
www.restamax.fi

Restamax Plc is a Finnish restaurant business group established in 1996 that
also offers labour hire services. The company, which listed at NASDAQ OMX
Helsinki Oy in 2013 and became the first Finnish listed restaurant company, has
continued to grow steadily throughout its history. The Group companies include
approximately 100 restaurants, cafés, pubs and nightclubs all over Finland. The
Group's well-known restaurant concepts include, among others, the von Trappe
restaurants, Bodega Salud, Viihdemaailma Ilona, American Diner, Daddy's Diner,
Stefan's Steakhouse, and the Galaxie and Space Bowling & Billiards entertainment
centres. Restamax Plc employs between 900 and 1,000 people depending on the
season. The turnover for 2014 was MEUR 86.7 and EBITDA MEUR 12.0.

Restamax company website: www.restamax.fi, Restamax consumer website:
www.ravintola.fi

[HUG#1895909]

Attachments:

Restamax Plc Interim Report 2014.pdf