2015-08-18 07:00:00 CEST
2015-08-18 07:00:53 CEST
REGULATED INFORMATION
Pihlajalinna Oyj - Interim report (Q1 and Q3)
Pihlajalinna Oyj: INTERIM REPORT 1 JANUARY - 30 JUNE 2015 (6 months)
PIHLAJALINNA INTERIM REPORT 18 August 2015 at 8:00
PIHLAJALINNA: INTERIM REPORT 1 JANUARY - 30 JUNE 2015 (6 months)
STRONG REVENUE GROWTH CONTINUED, INVESTING IN GROWTH AFFECTED THE RESULT
BRIEF LOOK AT APRIL-JUNE:
* Revenues amounted to EUR 51.9 (32.8) million - an increase of 58 per cent
* EBITDA excluding non-recurring items amounted to EUR 3.0 (3.5) million,
investing in taking over outsourcing contracts and development of the
operations affected the result
* Operating profit excluding non-recurring items amounted to EUR 1.0 (2.0)
million
* Operating profit (EBIT) amounted to EUR 0.1 (1.6) million. The operating
profit of the quarter included EUR 0.9 million non-recurring costs relating
to the Initial Public Offering of the Company
* Net cash flow from operating activities amounted to EUR 2.6 (2.5) million
* The provision of healthcare and social care services in Kihniö started on 1
May, 2015
BRIEF LOOK AT JANUARY-JUNE:
* Revenues amounted to EUR 99.8(64.3) million - an increase of 55 per cent
* EBITDA excluding non-recurring items amounted to EUR 6.1 (6.7) million.
Operating profit excluding non-recurring items amounted to EUR 2.3 (3.9)
million
* Net cash flow from operating activities amounted to EUR 9.5 (4.3) million
* Gross investments in the reporting period amounted to EUR 15.9 (13.0)
million
* Number of personnel at the end of the reporting period 2,525 (1,649)
* Earnings per share EUR -0.02 (0.08) 4-6/ 4-6/ 1-6/ 1-6/
KEY FIGURES AND RATIOS 2015 2014 change% 2015 2014 change% 2014
3 mths 3 mths 6 mths 6 mths 12 mths
INCOME STATEMENT
Revenue, EUR million 51.9 32.8 58 99.8 64.3 55 148.9
EBITDA excluding non-
recurring items,
EUR million 3.0 3.5 -13 6.1 6.7 -9 14.0
EBITDA % excluding non-
recurring items 5.8 % 10.5 % -45 6.1 % 10.4 % -41 9.4 %
EBITDA, EUR million 2.1 3.0 -31 5.1 6.2 -18 11.8
EBITDA % 4.0 % 9.1 % -56 5.1 % 9.7 % -47 7.9 %
Operating profit
excluding non-recurring
items (EBIT), EUR million 1.0 2.0 -50 2.3 3.9 -41 8.2
Operating profit %
excluding non-recurring
items 1.9 % 6.1 % -68 2.3 % 6.1 % -62 5.5 %
Operating profit (EBIT),
EUR million 0.1 1.6 -96 1.3 3.5 -62 6.0
Operating profit % 0.1 % 4.7 % -97 1.3 % 5.4 % -76 4.0 %
Profit before tax, EUR
million -0.7 0.4 -253 -0.1 1.9 -106 2.9
SHARE RELATED INFORMATION
Earnings per share, EUR -0.05 0.00 -2056 -0.02 0.08 -129 0.11
Equity per share, EUR 3.46 0.67 419 0.70
OTHER INFORMATION
Return on capital
employed, %( ROCE) 2.6 8.6 7.1
Return on equity, % (ROE) 0.1 11.9 7.7
Equity ratio, % 39.8 8.8 8.0
Gearing, % 36.6 655.1 691.1
Net debt / adjusted
EBITDA, 12 mths 1.8 5.1 5.1
Interest bearing net
debt, EUR million 24.5 65.0 -62 71.6
Gross investments, EUR
million 15.9 13.0 22 28.3
Cash flow from operating
activities 2.6 2.5 9.5 4.3 123 9.4
Cash flow after
investments -1.8 -2.6 1.0 -3.9 -8.1
Average number of
personnel 2,247 1,524 47 1,619
Personnel at the end of
the period 2,525 1,649 53 1,714
Mikko Wirén, CEO of Pihlajalinna:
Pihlajalinna Group is at the strongest growth stage in its operational history.
During the first six months of 2015 revenue grew by 55 per cent reaching EUR
99.8 million. Majority of this came through organic growth, such as the start of
service provision under the Parkano healthcare and social care outsourcing
contract (since 1 January 2015).
All business areas of the Group are growing, but most of the short-term increase
in revenue is due to complete outsourcings of healthcare and social care in
municipalities and in federations of municipalities. During 1 January 2015 - 1
January 2016 there has begun and will begin new contracts, which will generate
an aggregate revenue exceeding the whole Group's revenue in 2014. Nearly 80 per
cent of the revenue from the new contracts will be generated after 1 September
2015.
The profitability during the period was significantly influenced by
reinforcement of the supporting functions, opening of the new private clinics,
which at launching still had lower capacity utilisation rates, and costs from
taking over the above-mentioned forthcoming large outsourcings. Since the spring
in 2015 Pihlajalinna has been preparing future healthcare and social care
outsourcings in Jämsä, Kuusiokunnat and Soini. Revenue and profit from these
contracts will, however, be generated only after taking over. Healthcare and
social care outsourcings in Parkano (since 1 January 2015) and in Kihniö (since
1 May 2015) have started according to the contracts.
Increases in resources and significant development projects are crucial for
strengthening the Group for strong future growth in accordance with the
strategy. Listing of the company on OMX Helsinki caused considerable non-
recurring costs in the reporting period. I am especially pleased by the
improvement in cash flow from operating activities and by the notable decrease
in financial costs since the listing in June.
Our Initial Public Offering was in all successful and the issue of shares were
oversubscribed multifold. As a result of the Initial Public Offering we
strengthened our balance sheet, raised equity for future growth investments and
increased our awareness in all interest groups. The number of our shareholders
at the end of the reporting period was 2,869 (174).
In 2015 Pihlajalinna will focus in taking over large complete healthcare and
social care outsourcings and developing our operations widely. During the
present financial year we have expanded the ERP-system to complete outsourcings
that will enable much more precise follow up resources, patient care chains and
costs. With the ERP-system we can both make our operations more efficient and
offer better service quality.
During the past ten years, Pihlajalinna has executed dozens of acquisitions.
Since 1 January 2014 the activity in acquisitions has been especially high (21
acquisitions). Regardless of the strong and on-going growth, overlapping
functions have developed due to numerous acquisitions and taking over
outsourcing contracts. Restructuring of the Group will be carried out during the
autumn in 2015. The objective of the restructuring is to simplify the corporate
structure and to reduce the amount of the overlapping functions.
Restructuring of the Group will be carried out during autumn 2015. Its objective
is to simplify the company structure and to reduce the amount of overlapping
functions. In connection to the restructuring, the management and administration
structure as well as a correct level of personnel resources of various branches,
that best serves business operations and segment division, will be implemented.
Possible administrative and operational overlaps will be discussed in
cooperation with the personnel. We will proceed already in August 2015 in Dental
Care and Care -services units and concentrate the private and public operations
under the same management. The objective of the planned adjustment measures is
approximately EUR 3 million in annual cost savings. Savings are expected to
realize during 2016.
The outlook in the market for Pihlajalinna maintain positive, and the company's
market position is strong. In the complete healthcare and social care
outsourcings the company is the market leader, and it is delightful to see, that
the positive results in the outsourcings that have already taken place, have
also stimulated interest in complete outsourcings in medium-sized
municipalities. Numerous smaller municipalities have already become active in
decision making.
GUIDANCE ON GROUP OUTLOOK
Pihlajalinna's consolidated revenue is expected to exceed EUR 200 million in
2015.
PUBLICATION OF FINANCIAL INFORMATION
The interim report for January-September 2015 will be published on Wednesday,
11 November 2015.
Helsinki, 18 August 2015
Pihlajalinna Oyj's Board of Directors
PRESS AND ANALYST MEETING
The press and analyst meeting for the announcement of financial results of the
second quarter 2015 will be held on August 18, 2015 at 10:00 the Kämp hotel
congress center, meeting room Paavo Nurmi, Pohjoisesplanadi 29, 00100, Helsinki.
An audio webcast and teleconference in English will be held on the same day
starting at 13.30 p.m. EET.
UK: 020 3059 8125
International: +44 20 3059 8125
Participant password: Pihlajalinna
The event can be followed live as an audio webcast at investors.pihlajalinna-
konserni.fi. The event will be recorded and can be accessed on the website later
the same day.
FURTHER INFORMATION:
Mikko Wirén, CEO, tel. +358 50 3220 927
Virpi Holmqvist, CFO, tel. +358 40 537 6133 Terhi Kivinen, SVP, Communications,
Marketing and IR, tel. +358 40 848 4001
DISTRIBUTION
NASDAQ OMX Helsinki
Major media
www.pihlajalinna-konserni.fi
Pihlajalinna in brief
Pihlajalinna is one of the leading private social and healthcare services
providers in Finland. The Company provides social and healthcare services for
households, companies, insurance companies and public sector entities in private
clinics, health centres, dental clinics and hospitals around Finland.
Pihlajalinna provides general practitioner and specialised care services,
including emergency and on-call services, a wide range of surgical services as
well as occupational healthcare and dental care services, in private clinics and
hospitals operating under the Dextra brand. Under the Pihlajalinna brand the
Company, in cooperation with the public sector, offers social and healthcare
service provision models to public sector entities with the aim of providing
high quality services for public pay healthcare customers.
[HUG#1946079]
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