2013-10-29 08:45:00 CET
2013-10-29 08:45:02 CET
REGULATED INFORMATION
Scanfil Oyj - Interim report (Q1 and Q3)
SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2013
SCANFIL PLC INTERIM REPORT 29 OCTOBER 2013 9.45 A.M.
SCANFIL GROUP'S INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2013
January - September
- Turnover totalled to EUR 143.1 million (1-9 2012 140.1), up 2.2%
- Operating profit EUR 9.3 (7.4), million 6.5% (5.3%) of turnover, up 26.3%
- Profit for the review period was EUR 6.3 (5.4) million, 15.9%
- Earnings per share were EUR 0.11 (0.09)
July - September
- Turnover totalled EUR 50.4 million (Q3 2012: 48.2), up 4.5%
- Operating profit EUR 4.2 (2.8) million, 8.4% (5.7%) of turnover, up 53.2%
- Profit was EUR 3.0 (1.7) million, up 77.8%
- Earnings per share amounted EUR 0.05 (0.03)
Scanfil plc changed on 12 September 2013 its assessed outlook for 2013 and
estimated that its turnover will increase slightly and operating profit will
grow clearly compared to 2012. Turnover in 2012 was EUR 180.9 million and
operating profit EUR 8.1 million.
Previously, Scanfil plc estimated that its turnover and operating profit will
increase slightly compared to 2012.
In the report, the figures in brackets refer to the corresponding period in
2012, unless otherwise specified.
Petteri Jokitalo, CEO of Scanfil plc:
“Business operations developed favourably during the third quarter. Turnover
increased by approximately four per cent and operating profit multiplied by 1.5
times compared to the previous year. I am satisfied with the development of
profitability, but we are aiming for faster growth in turnover."
DEVELOPMENT OF OPERATIONS
Climate and environmental change and managing them, energy efficiency,
utilisation of renewable energy, increasing automation and intelligent
applications as well as urbanisation and strong economic growth in Asia are
phenomena with strong impacts on the success of most Scanfil customers and are
therefore also underlying the favourable development of Scanfil's business
operations.
Scanfil's turnover in the third quarter was EUR 50.4 million (48.2). Operating
profit amounted to EUR 4.2 million (2.8), up approximately 53%. The positive
development of turnover was mainly influenced by successful cost control and an
increasing share of products with higher profit margins.
Scanfil continued its active sales efforts to expand the professional
electronics customer base, particularly in Central Europe and China.
The transformation of the structure of Scanfil's sales and customer base
continued. Sales to professional electronics customers increased by more than
15% in January-September compared to the corresponding period the previous year
and accounted for 82% of turnover (73%). Sales to telecommunication customers
continued to decline and accounted for 18% (27%) of turnover.
FINANCIAL DEVELOPMENT
The Group's turnover for January - September was EUR 143.1 (140.1) million.
Distribution of turnover based on the location of customers was as follows:
Finland 43% (43%), rest of Europe 22% (18%), Asia 33% (37%), USA 1% (1%) and
the others 1% (1%).
Operating profit for the Group during the review period was EUR 9.3 (7.4)
million, representing 6.5% (5.3%) of turnover. The operating profit includes
EUR 0.3 million of impairment of sales receivables. Last year, operating profit
included a total of EUR +0.5 million of non-recurring items. Operating profit
excluding non-recurring items was EUR 9.6 million (6.9), representing 6.7%
(4.9%) of turnover.
Earnings for the review period amounted to EUR 6.3 (5.4) million, or 4.4%
(3.9%) of turnover. Earnings per share were EUR 0.11 (0.09) and return on
investment was 11.3% (9.8%). The profit includes a write-down of a total of EUR
-1.2 million related to the loans granted to the associated company Greenpoint
Oy, sales receivables from it and goodwill, recognised in the previous quarter.
Excluding the non-recurring items, net profit amounted to EUR 7.5 (5.0)
million, 5.2% (3.5%).
Turnover amounted to EUR 50.4 (48.2) million in July-September and operating
profit for the third quarter was EUR 4.2 (2.8) million, or 8.4% (5.7%) of
turnover. Profit for the quarter was EUR 3.0 (1.7) million.
FINANCING AND CAPITAL EXPENDITURE
The Group enjoys a strong financial position.
The consolidated balance sheet totalled EUR 132.6 (138.2) million. Liabilities
amounted to EUR 53.7 (62.9) million, EUR 30.2 (29.3) million of which were
non-interest-bearing and EUR 23.5 (33.7) million interest-bearing. The equity
ratio was 59.5% (54.5%) and gearing -1.3% (1.5%). The equity per share was EUR
1.37 (1.30).
Liquid cash assets totalled EUR 24.5 (32.5) million.
Cash flow from operating activities in the review period of January - September
came to EUR 4.5 (7.0) million positive. Change of working capital in the review
period was EUR -6.8 (-3.8) million. The increase in working capital is mainly
due to an increase in sales receivables. Cash flow from investment activities
was EUR - 3.4 (-5.4) million and cash flow from financing activities was EUR
-6.8 (-4.4) million. The funding cash flow includes dividend payments and loan
instalments.
Gross investments in January - September in fixed assets totalled EUR 3.8 (5.5)
million, which is 2.6% (3.9%) of turnover. Investments are machine and
equipment investments and the procurement of a new ERP system for the Finnish
operations. Depreciations were EUR 3.3 (3.4) million.
BOARD OF DIRECTORS' AUTHORISATION
The Annual General Meeting authorised the Board of Directors on 18 April 2013
to decide on the acquisition of the Company's own shares with distributable
assets and on the disposal of own shares in accordance with the Board of
Directors' proposal.
The Board of Directors' proposals to the Annual General Meeting are available
on the company website at www.scanfil.com.
The Board of Directors has no existing share issue authorisations or
authorisations to issue convertible bonds with warrants.
OPTION SHEME
Based on the authorisation given by the General Meeting on 18 April 2013, the
Board of Directors decided on 18 September 2013 to grant the CEO of Scanfil Plc
and four key persons at the company's subsidiary Scanfil EMS Oy option rights
in all for 225,000 shares. The option rights shall be marked "2013A". Each
option right entitles its holder to subscribe for one (1) of the company's new
shares or shares in its possession. The subscription period for option right
2013A is 1 May 2016 - 31 April 2018. The subscription period for the option
rights included in the option plan will not begin, unless the production and
financial goals and conditions, set separately by the Board of Directors for
exercising the option rights, are met. The option rights whose goals are not
met will expire as determined by the Board. The subscription price of option
right 2013A is EUR 0,87, which is the trading-volume weighted average share
price in the NASDAQ OMX Helsinki of the period 1 - 31 March 2013.
The complete terms and conditions of the options plan 2013 (A) - (C) are
presented on Scanfil plc's website.
SHARE TRADING AND SHARE PERFORMANCE
The highest trading price during the review period was EUR 1.47 and the lowest
EUR 0.82, the closing price for the period standing at EUR 1.23. A total of
1,902,989 shares were traded during the period, corresponding to 3.3% of the
total number of shares. The market value of the shares on 30 September 2013 was
EUR 71,0 million.
NOTIFICATIONS OF CHANGES IN SHAREHOLDING
On 17 September 2013, Scanfil plc received a notification pursuant to Chapter
9, Section 5 of the Securities Market Act that Jorma J. Takanen's holding of
the total number of shares and votes in Scanfil plc fell below the 15%
threshold on 17 September 2013.
Jorma J. Takanen owns 5,832,305 Scanfil plc shares directly and 1,900,000
shares indirectly (holding of Foundation of Riitta and Jorma J. Takanen). This
equals 13.4% of the total of 57,730,439 shares and votes in Scanfil plc.
On 17 September 2013, Scanfil plc received a notification pursuant to Chapter
9, Section 5 of the Securities Market Act that Harri Takanen's holding of the
total number of shares and votes in Scanfil plc exceeded the 15% threshold on
17 September 2013.
Harri Takanen holds 9,776,664 shares in Scanfil plc. This equals 16.9% of the
total of 57,730,439 shares and votes in Scanfil plc.
On 17 September 2013, Scanfil plc received a notification pursuant to Chapter
9, Section 5 of the Securities Market Act that Jarkko Takanen's holding of the
total number of shares and votes in Scanfil plc exceeded the 10% threshold on
17 September 2013.
Jarkko Takanen holds 8,251,169 shares in Scanfil plc. This equals 14.3% of the
total of 57,730,439 shares and votes in Scanfil plc.
PERSONNEL
Scanfil Group's personnel averaged 1,674 (1,679) employees during the review
period. At the end of the period, the Group employed 1,685 (1,635) people, of
whom 240 (282) worked in the company's Finnish units and 1,445 (1,353) in the
company's units outside Finland. In all, 85.8% of the Group's personnel were
employed by subsidiaries outside Finland on 30 September 2013.
FUTURE PROSPECTS
Due to the uncertain situation in the global economy, the predictability of the
contract manufacturing market is poor.
Scanfil plc changed on 12 September 2013 its assessed outlook for 2013 and
estimated that its turnover will increase slightly and operating profit will
grow clearly compared to 2012. Turnover in 2012 was EUR 180.9 million and
operating profit EUR 8.1 million.
Previously, Scanfil plc estimated that its turnover and operating profit will
increase slightly compared to 2012.
OPERATIONAL RISKS AND UNCERTAINTIES
A weakening of the global economy and the decrease in international demand for
investment commodities might have a negative impact on the development of the
business of Scanfil's customers and impair the demand in the contract
manufacturing market. This would have a negative impact on the development of
Scanfil's sales and profitability.
In other respects, the risks facing Scanfil's business have remained
essentially the same. The company's risks and risk management are described in
greater detail on the company's website under Corporate Governance.
ACCOUNTING PRINCIPLES
The interim report has been prepared in accordance with the IAS 34 Interim
Financial Reporting standard, applying the following accounting policies with
the financial statements for 2012.
Individual figures and grand totals of tables have been rounded to the nearest
million euros, so they will not always add up. The figures are unaudited.
CONSOLIDATED INCOME STATEMENT
EUR million
7 - 9 7 - 9 1 - 9 1 - 9 1 - 12
2013 2012 2013 2012 2012
Turnover 50.4 48.2 143.1 140.1 180.9
Other operating income 0.1 0.0 0.2 1.3 1.3
Changes in inventories of finished goods
and work in progress 0.3 -0.7 1.0 0.0 -0.1
Manufacturing for own use 0.0 0.0 0.0
Expenses -45.4 -43.6 -131.7 -130.7 -169.5
Depreciation -1.1 -1.2 -3.3 -3.4 -4.5
Operating profit 4.2 2.8 9.3 7.4 8.1
Financial income and expenses -0.3 -0.3 -0.7 0.0 -0.1
Share in the associated company´s profit -0.1 -0.6 -0.3 -0.4
Profit before taxes 4.0 2.4 8.0 7.0 7.6
Income taxes -0.9 -0.7 -1.7 -1.6 -1.9
Net profit for the period 3.0 1.7 6.3 5.4 5.7
Attributable to:
Equity holders of the parent 3.0 1.7 6.3 5.4 5.7
Earnings per share for profit attributable
to
shareholders of the parent:
basic earnings per share ( EUR) 0.05 0.03 0.11 0.09 0.10
The company does not have items that might dilute
the earnings per share.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million
7 - 9 7 - 9 1 - 9 1 - 9 1 - 12
2013 2012 2013 2012 2012
Net profit for the period 3.0 1.7 6.3 5.4 5.7
Other comprehensive income:
Translation differences -1.3 -0.8 -0.3 0.3 -0.3
Derivative financial instrument 0.0 0.0 0.2 0.1 0.2
Other comprehensive income, net of tax -1.2 -0.8 -0.1 0.4 -0.1
Total Comprehensive Income 1.8 1.0 6.2 5.9 5.6
Attributable to:
Equity holders of the parent 1.8 1.0 6.2 5.9 5.6
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million
Assets 30.9.2013 30.9.2012 31.12.2012
Non-current assets
Property, plant and equipment 29.5 29.8 29.9
Goodwill 2.2 2.2 2.2
Other intangible assets 3.9 3.7 3.7
Shares in associated companies 0.8 0.6
Available-for-sale investments 0.0 0.0 0.0
Receivables 0.2 0.2
Deferred tax assets 0.6 0.5 0.6
Total non-current assets 36.3 37.2 37.4
Current assets
Inventories 31.4 29.9 29.9
Loan receivables from associated companies 0.1
Trade and other receivables 40.2 38.3 32.0
Advance payments 0.2 0.4
Current tax 0.2 0.0
Available-for-sale investments, liquid assets 9.7 9.7
Available-for-sale investments, cash 3.6 8.3 5.5
equivalents
Cash and cash equivalents 11.2 24.2 15.0
Total current assets 96.3 101.0 92.7
Total assets 132.6 138.2 130.0
Shareholder's equity and liabilities 30.9.2013 30.9.2012 31.12.2012
Equity
Share capital 2.0 2.0 2.0
Translation differences 8.6 9.5 8.9
Other reserves 5.7 5.3 5.3
Reserve for invested unrestricted equity fund 10.7 10.7 10.7
Retained earnings 51.9 47.7 48.0
Total equity 78.9 75.3 75.0
Non-current liabilities
Deferred tax liabilities 0.0 0.0
Provisions 0.5 0.5 0.4
Interest bearing liabilities 14.1 24.0 18.9
Other liabilities 0.1
Total non-current liabilities 14.6 24.6 19.3
Current liabilities
Trade and other liabilities 28.7 27.6 25.4
Current tax 1.0 1.1 0.8
Interest bearing liabilities 9.4 9.6 9.5
Total current liabilities 39.1 38.3 35.7
Total liabilities 53.7 62.9 55.0
Total shareholder's equity and liabilities 132.6 138.2 130.0
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1.1-30.9.2013 1.1-30.9.2012 1.1-31.12.2012
Cash flow from operating
activities
Net profit 6.3 5.4 5.7
Adjustments for the net profit 6.7 5.9 7.4
Change in net working capital -6.8 -3.8 -0.4
Paid interests and other financial -0.4 -0.5 -0.8
expenses
Interest received 0.2 0.3 0.4
Taxes paid -1.5 -0.4 -1.1
Net cash from operating activities 4.5 7.0 11.2
Cash flow from investing
activities
Investments in tangible and -3.6 -5.5 -7.3
intangible assets
Sale of tangible and intangible 0.1 0.0 0.1
assets
Purchase of investments 0.1 -0.0 -9.7
Repayment of loans receivable 0.0
Granted loans -0.0
Net cash from investing activities -3.4 -5.4 -16.9
Cash flow from financing
activities
Repayment of long-term loans -4.4 -4.4 -8.9
Dividends paid -2.3
Net cash from financing activities -6.8 -4.4 -8.9
Net increase/decrease in cash and -5.6 -2.8 -14.6
cash equivalents
Cash and cash equivalents at 20.5 35.2 35.2
beginning of period
Cash transferred at the demerger 0.1 0.1
Changes in exchange rates -0.1 0.1 -0.1
Cash and cash equivalents at end 14.8 32.5 20.5
of period
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY
EUR million
Equity attributable to equity holders of the parent company
Reserve for
invested
Share Translation Other unrestricted Retained Equity
Equity capital differences reserves equity fund earnings total
--------------------------------------------------------------------------------
1.1.2013 2.0 8.9 5.3 10.7 48.0 75.0
Transfer to 0.1 -0.1 0
funds
Dividends paid -2.3 -2.3
Total comprehensive -0.3 0.2 6.3 6.2
income
Equity
--------------------------------------------------------------------------------
30.9.2013 2.0 8.6 5.7 10.7 51.9 78.9
Equity attributable to equity holders of the parent company
Reserve for
invested
Share Translation Other unrestricted Retained Equity
Equity capital differences reserves equity fund earnings total
--------------------------------------------------------------------------------
1.1.2012 2.0 9.2 4.9 10.6 42.6 69.4
Items received in partial demerger 0.1 0.1
Transfer to 0.3 -0.3 0
funds
Total comprehensive -0.3 0.2 5.7 5.6
income
Equity
--------------------------------------------------------------------------------
31.12.2012 2.0 8.9 5.3 10.7 48.0 75.0
KEY INDICATORS
1 - 9 1 - 9 1 - 12
2013 2012 2012
Return on equity, % 10.9 10.0 7.9
Return on investment, % 11.3 9.8 8.1
Interest-bearing liabilities, EUR million 23.5 33.7 28.4
Gearing, % -1.3 1.5 -2.4
Equity ratio, % 59.5 54.5 57.7
Gross investments in fixed assets, EUR million 3.8 5.5 7.2
% of net turnover 2.6 3.9 4.0
Personnel, average 1 674 1 679 1 669
Earnings per share, EUR 0.11 0.10 0.10
Shareholders´ equity per share, EUR 1.37 1.30 1.27
Number of shares at
the end of period, 000´s
- not counting own shares 57 730 57 730 57 730
- weighted average 57 730 57 730 57 730
The company has a EUR 23.5 million loan in connection with which the company has
entered
into interest and currency swap agreements to convert the SEK-denominated
principal
and cash flows of instalments and interest payments into euros. The interest and
currency swap agreement fully hedges the instalments and interest payments
against
fluctuations in exchange and interest rates.
Owing to the nature of the sector, the company´s order book covers only a short
period of time and
does not give an accurate picture of future development.
SEGMENT INFORMATION
EUR million
1 -9 1 - 9 1 - 12
2013 2012 2012
Turnover
Europe 87.6 83.8 108.1
Asia 58.2 58.6 75.8
Turnover between segments -2.7 -2.4 -3.0
Total 143.1 140.1 180.9
Operating profit
Europe 5.0 4.6 5.2
Asia 4.4 2.7 2.9
Total 9.3 7.4 8.1
Assets
Europe 64.4 68.4 64.2
Asia 66.0 66.8 62.9
Goodwill 2.2 2.2 2.2
Shares in associated companies 0.8 0.6
Total 132.6 138.2 130.0
CHANGES IN TANGIBLE NON-CURRENT ASSETS
EUR million
1 - 9 1 - 9 1 - 2
2013 2012 2012
Book value at the beginning of the period 29.9 27.0 27.0
Additions 3.3 5.4 7.0
Deductions -0.5 0.0 -0.1
Depreciations -3.1 -3.2 -4.3
Exchange rate differences -0.1 0.5 0.3
Book value at the end of the period 29.5 29.8 29.9
CONTINGENT LIABILITIES
EUR million
1 - 9 1 - 9 1 - 12
2013 2012 2012
Given business mortgages 40.0 40.0 40.0
Pledged guarantees 1.2 1.3 1.3
Leasing liabilities and other lease liabilities 0.0 0.0 0.1
Scanfil plc has granted Nordea Bank Finland Plc an absolute guarantee for the
payment
of Scanfil EMS Oy's loan of originally EUR 40 million and resulting obligations
to pay.
The capital of the loan on 30 September 2013 is EUR 23.5 million.
TRANSACTIONS WITH RELATED PARTIES
EUR million
1 - 9 1 - 9 1 - 2 2013 2012 2012
Related party transactions:
Associated companies
Sales income 0.0 0.1 0.2
Trade receivables 0.3 0.2 0.3
Interest income 0.0 0.0 0.0
Loan receivables 0.3 0.3 0.3
Interest receivables 0.0 0.0 0.0
Loans of EUR 0.3 million and trade receivables of EUR 0.3 million which have
been granted to
an associate company Greenpoint Oy have been written-off as impairment. Also
remaining goodwill of
EUR 0.6 million has been fully depreciated.
Scanfil EMS Oy has rented an office space from Kiinteistö Oy Pilot 1,
which head owners are Jorma Takanen, Harri Takanen, Jarkko Takanen
and Reijo Pöllä.
Rental costs were EUR 10 thousand by 30 September 2013.
KEY INDICATORS QUATERLY
Q3/13 Q2/13 Q1/13 Q4/12 Q3/12 Q2/12 Q1/12
Turnover, MEUR 50.4 48.7 44.0 40.8 48.2 49.3 42.6Operating profit, MEUR 4.2 3.1 2.0 0.7 2.8 3.2 1.4
Operating profit, % 8.4 6.3 4.6 1.8 5.7 6.4 3.4
Net income, MEUR 3.0 2.1 2.6 0.3 1.7 2.6 1.2
SCANFIL PLC
Petteri Jokitalo
CEO
Additional information:
CEO Petteri Jokitalo
Tel +358 8 4882 111
Distribution NASDAQ OMX, Helsinki
Major Media
www.scanfil.com
Scanfil Group is engaged in contract manufacturing for international
telecommunications technology and professional electronics manufacturers.
Scanfil has 35 years of experience in demanding contract manufacturing. Scanfil
is a systems supplier that offers its products and services to international
telecommunications systems manufacturers and professional electronics
customers. Typical products are equipment systems for mobile and public
switched telephone networks, automation systems, frequency converters, lift
control systems, equipment and systems for electricity production and
transmission, analysers, slot machines and different meteorological
instruments. The company has production facilities in China, Estonia, Hungary
and Finland.
The associated company of Scanfil Group:
Greenpoint Oy (Scanfil EMS Oy's share of ownership 40%) focuses on development
and supply of solutions and equipment, which improve placements, visibility and
sales of customer products in the Point-Of-Sale. The Greenpoint product
portfolio includes a large variety of refrigerated merchandisers, displays and
integrated check-out zone concepts. The company serves both brand owners and
retail chains internationally. Along with the European markets Greenpoint Oy
has entered North and Latin American markets through partnerships.
www.greenpoint.fi
Not for release over US newswire services. Forward looking statements: certain
statements in this stock exchange release may constitute "forward-looking"
statements which involve known and unknown risks, uncertainties and other
factors which may cause actual results, performance or achievements of Scanfil
Oyj to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. When used
in this stock exchange release, such statements use such words as "may,""will,""expect,""anticipate,""project,""believe,""plan" and other similar
terminology. New risk factors may arise from time to time and it is not
possible for management to predict all of those risk factors or the extent to
which any factor or combination of factors may cause actual results,
performance and achievements of Scanfil Oyj to be materially different from
those contained in forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on forward-looking
statements as a prediction of actual results. The forward-looking information
contained in this stock exchange release is current only as of the date of this
stock exchange release. There should not be an expectation that such
information will in all circumstances be updated, supplemented or revised,
except as provided by the law or obligatory regulations, whether as a result of
new information, changing circumstances, future events or otherwise.
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