2014-05-08 12:00:00 CEST
2014-05-08 12:00:06 CEST
REGULATED INFORMATION
Nurminen Logistics Oyj - Interim report (Q1 and Q3)
NURMINEN LOGISTICS PLC’S INTERIM REPORT 1 JANUARY - 31 MARCH 2014
Increase in Finnish operations' market share and a positive Group operating
result
Nurminen Logistics Plc Interim report 8 May 2014 at
1:00 p.m.
Nurminen Logistics key figures 1 January - 31 March 2014
-- Net sales were EUR 14.1 million (2013: EUR 16.7 million).
-- Reported operating result was EUR 0.0 million (EUR -0.2 million).
-- Operating margin was 0.2% (-1.0%).
-- Operating result excluding non-recurring items was EUR 0.2 million (EUR 0.0
million).
-- EBT was EUR -0.7 million (EUR -0.5 million).
-- Net result was EUR -0.8 million (EUR -0.9 million).
-- Earnings per share, undiluted: EUR -0.06 (EUR -0.08).
-- Earnings per share, diluted: EUR -0.06 (EUR -0.08).
As of 1 January 2014, Nurminen Logistics reports on three business units:
Railway Logistics, Special Transports and Projects, and Forwarding and Value
Added Services. In 2013, the company reported on four business units. At the
end of 2013, the Transit Logistics business unit was merged into the Forwarding
and Value Added Services unit.
OLLI POHJANVIRTA, PRESIDENT AND CEO:
“We achieved a positive operating result in the review period thanks to the
improved efficiency of our operations. In the first quarter, our net sales
decreased due to a substantial sudden decline in volumes in railway logistics
between Finland and Russia resulting from lower deliveries by customers, as
well as the temporary interruption in deliveries to Ukraine. In line with our
strategy, we have quickly acquired replacement traffic in the Russian internal
market in 2014, which is securing the growth targets of our railway logistics
operations going forward. We are also prepared to serve our customers, and
access the necessary amount of additional wagon capacity in the rental wagon
market, when traffic between Finland and Russia recovers as the value of the
rouble stabilises.
In Finland, we continued to improve the efficiency of our operations by closing
down the Niirala terminal and consolidating the management of our railway
terminals and other terminals. We also paid the final instalment of the EBRD
loan for our own wagon fleet acquisition in January 2014. In the Finnish
operations of our Forwarding and Value Added Services unit, we have
significantly improved our profitability despite the difficult market
situation. Our net sales and profitability improved in Special Transports and
Projects. Our service concept development and efficiency improvement measures
progressed well during the review period, and the growth of operations in line
with the company's strategy is proceeding according to plan, particularly with
respect to expanding our customer base in the Russian and CIS market,” says
Olli Pohjanvirta, President and CEO.
MARKET SITUATION IN THE REVIEW PERIOD
In Railway Logistics, the market situation in cross-border traffic between
Finland and Russia weakened significantly due to reasons including the
depreciation of the rouble and a decline in customer order volumes as they
awaited upcoming changes to customs duties. The market situation in the Russian
internal market remained stable, and the expected growth did not materialise.
The slowing down of the Ukrainian market had a significant impact on the
decline in net sales of the Railway Logistics unit, but the company was able to
find customers for the wagons formerly used for Ukrainian traffic in the
Russian internal market during the review period. The company currently has
significant ongoing customer negotiations in Russia and Finland, which reflect
its operating capacity in spite of the difficult market situation.
In Special Transports and Projects unit, the uncertainty in the world economy
and the tightening of financial markets were reflected particularly in the
demand, which remained weak. However, demand for transport to Russia and the
CIS area was more active than for other market areas, and fluctuations in the
rouble exchange rate and the Ukrainian crisis did not yet affect the situation.
Competition remained intense and price levels in the market fluctuated
considerably.
In the market for Forwarding and Value Added Services unit, volumes in the
pulp, paper and forest industry increased, while those of the engineering and
metal industries fluctuated substantially. Market demand for transit logistics
to Russia through Finland was weaker than in the comparison period, and price
competition was tight. Demand on routes between the Baltic countries and Russia
remained almost unchanged from the previous year. The demand for transport from
the Baltic countries to Central Asia declined substantially from the high level
seen in the comparison period. The demand for the services of the Kotka and
Hamina terminals was at a higher level than in the first quarter of 2013.
NET SALES AND FINANCIAL PERFORMANCE 1 JANUARY - 31 MARCH 2014
The net sales for the review period amounted to EUR 14.1 million (2013: EUR
16.7 million), which represents a decrease of 15.5% compared to 2013. The
reported operating result was EUR 24 (-168) thousand. The operating result
includes non-recurring items of EUR -174 (-202) thousand. The comparative
operating result was therefore EUR 198 thousand.
The non-recurring items in the review period were related to reductions in
personnel. The cost reduction measures under the profit improvement programmes
announced in autumn 2013 and during the review period progressed as planned.
The depreciation of the Russian rouble during the review period decreased the
company's financial items by EUR 0.3 million. This exchange rate loss had no
cash flow impact.
Railway Logistics
The Railway Logistics business unit's net sales for the review period amounted
to EUR 6,399 (2013: 9,298) thousand and the operating result was EUR 763
(1,005) thousand. The operating result includes non-recurring items of EUR -130
(-144) thousand. The comparative operating result was therefore EUR 893 (1,149)
thousand. The net sales and operating result of Railway Logistics declined
during the first quarter compared to the corresponding period in the previous
year due to a significant decrease in transport volumes in traffic between
Finland and Russia and the temporary interruption in deliveries to Ukraine.
Special Transports and Projects
The Special Transports and Projects business unit's net sales for the review
period amounted to EUR 2,214 (1,748) thousand and the operating result was EUR
23 (-116) thousand. The operating result includes non-recurring items of EUR 0
(-14) thousand. The comparative operating result was therefore EUR 23 (-103)
thousand. The business unit's success in securing orders increased net sales
significantly. The result improved substantially due to higher volume and the
profit improvement programme launched in late 2013.
Forwarding and Value Added Services
The net sales of the Forwarding and Value Added Services business unit for the
review period amounted to EUR 5,623 (5,771) thousand and the operating result
was EUR -762 (-1,056) thousand. The operating result includes non-recurring
items of EUR -44 (-44) thousand. The comparative operating result was therefore
EUR -718 (-1,012) thousand. The business unit was successful in increasing the
efficiency of its operations during the period under review. The business
unit's net sales declined, but the operating result showed a significant
year-on-year improvement. At the Vuosaari terminal, volumes in the pulp, paper
and forest industry increased, while those of the engineering and metal
industries fluctuated substantially during the period. The demand for the
services of the Kotka and Hamina terminals was also at a higher level than in
the comparison period. The operational loss of the Vuosaari logistics centre
was EUR -0.3 (-0.7) million in the period under review. The high rental level
of the Vuosaari logistics centre has a significant negative effect on the
otherwise good operating result.
NET SALES BY UNIT 1-3/2014 1-3/2013 1-12/2013
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EUR 1,000
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Railway Logistics 6,399 9,298 33,131
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Special Transports and Projects 2,214 1,748 8,874
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Forwarding and Value Added Services 5,623 5,771 22,320
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Eliminations -123 -108 -481
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Total 14,114 16,709 63,844
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OPERATING RESULT BY UNIT 1-3/2014 1-3/2013 1-12/2013
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EUR 1,000
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Railway Logistics 763 1,005 5,062
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Special Transports and Projects 23 -116 -221
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Forwarding and Value Added Services -762 -1,056 -4,624
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Total 24 -168 216
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OUTLOOK
Nurminen Logistics expects that its key market of Russia and its neighbouring
countries will grow in 2014 based on already concluded customer agreements and
the stable outlook of the Russian railway market in 2014 - 2015. Demand in the
Finnish market is expected to be better than in 2013.
Nurminen Logistics expects its net sales, operating result and earnings per
share to improve compared to 2013.
The company's long-term goal is to grow at a faster rate than the market, on
average by over 15% per year. Going forward, over 50% of net sales will come
from the growth markets of Russia and its neighbouring countries. The company's
further long-term goals are to improve profitability, achieve an operating
profit level of 10 per cent and return on equity of 20 per cent.
SHORT-TERM RISKS AND UNCERTAINTIES
The prolongation of the Ukrainian crisis and the Russian financial markets
subsequently becoming more difficult would have a negative impact on the goods
flows of the company's Western and Russian customers, which in turn would
significantly affect the company's result outlook.
The company has received a total of 32 subsequent levy decisions from the
National Board of Customs' Eastern District Office in Lappeenranta, which state
that the company and VG Cargo Plc, which has filed for bankruptcy, are liable
to pay import taxes from the year 2009. The company's liability for the import
taxes is, at a maximum, EUR 0.5 million. The company does not consider itself
liable for the aforementioned import taxes and has not recorded provisions for
the associated costs. If there is a case for subsequent levy, the company's
view is that the levy should primarily be directed at the bankruptcy estate of
VG Cargo Plc and be paid from its valid customs guarantee. The company has
filed an appeal with the Helsinki District Court against the subsequent levy
decisions made by the National Board of Customs.
FINANCIAL POSITION AND BALANCE SHEET
The company's cash flow from operations was EUR -1,634 thousand. Cash flow from
investments was EUR -39 thousand. Cash flow from financing activities amounted
to EUR -412 thousand.
At the end of the review period, cash and cash equivalents amounted to EUR
1,434 thousand. Liquidity remained satisfactory, and the company signed a
12-month financing agreement relating to its continuing business operations
with its financing banks.
The Group's interest-bearing debt totalled EUR 23.3 million at the end of the
financial year, while net interest-bearing debt amounted to EUR 21.9 million.
The balance sheet total was EUR 53.3 million and the equity ratio was 34.9%.
CHANGES IN THE TOP MANAGEMENT
Mr. Marko Tuunainen, M.Sc. (Econ), aged 43, has been appointed the Senior Vice
President of Nurminen Logistics Plc's Forwarding and Value Added Services
business unit and member of the Executive Board of Nurminen Logistics. He
reports to Olli Pohjanvirta, President and CEO. Mr. Tuunainen started in his
new position on 14 January 2014. Before joining Nurminen Logistics, Marko
Tuunainen worked as the CEO of iResponse Solutions Oy.
Due to this change the size of Nurminen Logistics' Executive Board increased
from four members to five.
From 14 January 2014, Nurminen Logistics' Executive Board consists of the
following members:
Olli Pohjanvirta, President and CEO
Paula Kupiainen, CFO
Fedor Larionov, Senior Vice President, Railway Logistics
Marko Tuunainen, Senior Vice President, Forwarding and Value Added Services
Hannu Vuorinen, Senior Vice President, Special Transports and Projects.
This information was published in a stock exchange release on 8 January 2014.
CAPITAL EXPENDITURE
The Group's gross capital expenditure during the review period amounted to EUR
70 (127) thousand, accounting for 0.5% of net sales. Depreciation totalled EUR
0.7 (1.0) million, or 4.7% of net sales.
GROUP STRUCTURE
There were no changes in the group structure of Nurminen Logistics Plc. The
Group comprises the parent company, Nurminen Logistics Plc, as well as the
following subsidiaries and associated companies, owned directly or indirectly
by the parent (ownership, %): RW Logistics Oy (100%), Nurminen Logistics
Services Oy (100%), Nurminen Logistics Heavy Oy (100%), Nurminen Logistics
Finland Oy (100%), OOO John Nurminen, St. Petersburg (100%), Nurminen Maritime
Latvia SIA (51%), Pelkolan Terminaali Oy (20%), ZAO Irtrans (100%), OOO
Nurminen Logistics (100%), OOO John Nurminen Terminal (100%), ZAO Terminal
Rubesh (100%), Nurminen Logistics LLC (100%), UAB Nurminen Maritime (51%),
Nurminen Maritime Eesti AS (51%), Team Lines Latvia SIA (23%) and Team Lines
Estonia Oü (20.3%).
PERSONNEL
At the end of the review period the Group's number of personnel stood at 242,
compared to 261 on 31 December 2013. The number of employees working abroad was
63.
The Railway Logistics unit had 81 employees, the Special Transports and
Projects unit had 24 employees and the Forwarding and Value Added Services unit
had 123 employees. Management and administrative personnel comprised 14
employees.
REMUNERATION
The company announced on 14 January 2014 a new key employee stock option plan.
The company has a weighty financial reason for the issue of stock options,
since the stock options are intended to form part of the incentive and
commitment program for the Group key employees. The purpose of the stock
options is to encourage the key employees to work on a long-term basis to
increase shareholder value. The purpose of the stock options is also to commit
the key employees to the employer.
The maximum total number of stock options issued is 1,500,000, and they entitle
their owners to subscribe for a maximum total of 1,500,000 new shares in the
company or existing shares held by the company. The stock options will be
issued gratuitously. Of the stock options, 500,000 are marked with the symbol
2014A, 500,000 are marked with the symbol 2014B and 500,000 are marked with the
symbol 2014C. The Board of Directors will decide upon the distribution of stock
options to the key employees.
The number of shares subscribed by exercising stock options now issued
corresponds to a maximum total of 10.34 per cent of all shares and votes of the
shares in the company after the potential share subscription, if new shares are
issued in the share subscription.
The share subscription price of the stock options 2014 is EUR 1.60 per share.
The share subscription price is based on the prevailing price of the company's
share. The share subscription price will be credited to the reserve for
invested unrestricted equity.
The share subscription period, for stock option 2014A will be 1 April 2015 - 31
March 2018, for stock option 2014B, 1 April 2016 - 31 March 2018, and for stock
option 2014C, 1 April 2017 - 31 March 2018. The share subscription period will
begin only if the Group's net result is positive during the period of time
determined by the Board of Directors.
After the share subscriptions with stock options, the number of the company's
shares may be increased by a maximum total of 1,500,000 shares, if new shares
are issued in the share subscription.
The Board of Directors decided on the new stock option plan on the basis of the
authorization granted by the company's Annual General Meeting held on 15 April
2013. Approximately 10 key employees, including the members of the Group's
Executive Board and other separately named executives, belong to the target
group of the plan. For all key employees, the prerequisite for receiving stock
options is share ownership in the company.
SHARES AND SHAREHOLDERS
The trading volume of Nurminen Logistics Plc's shares was 56,377 during the
period from 1 January to 31 March 2014. This represented 0.43% of the total
number of shares. The value of the turnover was EUR 90,227. The lowest price
during the review period was EUR 1.47 per share and the highest EUR 1.73 per
share. The closing price for the period was EUR 1.55 per share and the market
value of the entire share capital was EUR 20,169,742.35 at the end of the
period.
At the end of the review period the company had 575 shareholders.
In 31 March 2014 the company held 20,275 of its own shares, corresponding to
0.2% of votes.
DECISIONS MADE BY THE ANNUAL GENERAL MEETING OF SHAREHOLDERS
Nurminen Logistics Plc's Annual General Meeting of Shareholders held on 8 April
2014 made the following decisions:
Adoption of the financial statements and resolution on the discharge from
liability
The Annual General Meeting of Shareholders confirmed the company's financial
statements and the Group's financial statements for the financial period 1
January 2013 - 31 December 2013 and released the Board of Directors and the
President and CEO from liability.
Payment of dividend
The Annual General Meeting of Shareholders approved the Board's proposal that
no dividend shall be paid for the financial year 1 January 2013 - 31 December
2013.
Composition and remuneration of the Board of Directors
The Annual General Meeting of Shareholders resolved that the Board of Directors
shall consist of five (5) ordinary members. The Annual General Meeting of
Shareholders re-elected the following ordinary members to the Board of
Directors: Tero Kivisaari, Juha Nurminen, Jukka Nurminen and Alexey Grom. Tommi
Matomäki was elected as a new member of the Board of Directors. In its
organising meeting immediately following the Annual General Meeting of
Shareholders, the Board of Directors elected Tero Kivisaari as the Chairman of
the Board. The Board of Directors also appointed an Audit Committee. The
members of the Audit Committee are Jukka Nurminen and Alexey Grom.
The Annual General Meeting of Shareholders resolved that for the members of the
Board elected at the Annual General Meeting for the term ending at the close of
the Annual General Meeting in 2015 remuneration level will be as follows:
annual remuneration of EUR 80,000 for the Chairman and EUR 20,000 for the other
members. Additionally a meeting fee of EUR 1,000 per meeting for the Board and
Board Committee meetings shall be paid for each member of the Board living in
Finland and EUR 1,500 per meeting for a member of the Board living outside
Finland. 50 per cent of the annual remuneration will be paid in the form of
Nurminen Logistics Plc's shares and the remainder in money. A member of the
Board of Directors may not transfer shares received as annual remuneration
before a period of three years has elapsed from receiving shares.
Authorising the Board of Directors to decide on the acquisition of the
company's own shares
Annual Meeting authorised the Board to decide on the acquisition of a maximum
of 100,000 of the company's own shares. The authorisation will be used for the
paying of remuneration of the members of the Board of Directors. The own shares
may be acquired pursuant to the authorisation only by using unrestricted
equity. The price payable for the shares shall be based on the price of the
company's shares in public trading at the time of the acquisition. The own
shares may be acquired in deviation from the proportional shareholdings of the
shareholders (directed repurchase). The authorisation includes the right
whereby the Board of Directors is authorised to decide on all other matters
related to the acquisition of own shares.
The authorisation remains in force until 30 April 2015.
Authorising the Board of Directors to decide on the issuance of shares as well
as the issuance of options and other special rights entitling to shares
Annual General Meeting authorised the Board to decide on issuance of shares
and/or special rights entitling to shares pursuant to chapter 10 section 1 of
the Finnish Companies Act.
Based on the aforesaid authorisation the Board of Directors is entitled to
release or assign, either by one or several resolutions, shares and/or special
rights up to a maximum equivalent of 20,000,000 new shares so that aforesaid
shares and/or special rights can be used, e.g., for the financing of company
and business acquisitions corporate and business trading or for other business
arrangements and investments, for the expansion of owner structure, paying of
remuneration of the Board members and/or for the creating incentives for, or
encouraging commitment in, personnel.
The authorisation gives the Board the right to decide on share issue with or
without payment. The authorisation for deciding on a share issue without
payment also includes the right to decide on the issue for the company itself,
so that the authorisation may be used in such a way that in total no more than
one tenth (1/10) of all shares in the company may from time to time be in the
possession of the company and its subsidiaries.
The authorisation includes the right whereby the Board of Directors is entitled
to decide of all other issues of shares and special rights. Furthermore, the
Board of Directors is entitled to decide on share issues, option rights and
other special rights, in every way, as the same as General Meeting could
decide. The authorisation also includes right to decide on directed issues of
shares and/or special rights.
The authorisation remains in force until 30 April 2015.
Auditor
KPMG Oy Ab, Authorised Public Accountant audit-firm, was re-elected as Nurminen
Logistics Plc's auditor. Mr Lasse Holopainen acts as the responsible auditor.
The auditor's term ends at the end of the first Annual General Meeting
following the election. Auditor's fee will be paid in accordance with the
auditor´s invoice accepted by the company.
DIVIDEND POLICY
The company's Board of Directors has on 14 May 2008 determined the company's
dividend policy, according to which Nurminen Logistics Plc aims to annually
distribute as dividends approximately one third of its net profit, provided
that the company's financial position allows this.
AUTHORISATIONS GIVEN TO THE BOARD
Authorising the Board of Directors to decide on the acquisition of the
company's own shares
Annual Meeting authorised the Board to decide on the acquisition of a maximum
of 100,000 of the company's own shares. The authorisation will be used for the
paying of remuneration of the members of the Board of Directors. The own shares
may be acquired pursuant to the authorisation only by using unrestricted
equity. The price payable for the shares shall be based on the price of the
company's shares in public trading at the time of the acquisition. The own
shares may be acquired in deviation from the proportional shareholdings of the
shareholders (directed repurchase). The authorisation includes the right
whereby the Board of Directors is authorised to decide on all other matters
related to the acquisition of own shares.
The authorisation remains in force until 30 April 2015.
Authorising the Board of Directors to decide on the issuance of shares as well
as the issuance of options and other special rights entitling to shares
Annual General Meeting authorised the Board to decide on issuance of shares
and/or special rights entitling to shares pursuant to chapter 10 section 1 of
the Finnish Companies Act.
Based on the aforesaid authorisation the Board of Directors is entitled to
release or assign, either by one or several resolutions, shares and/or special
rights up to a maximum equivalent of 20,000,000 new shares so that aforesaid
shares and/or special rights can be used, e.g., for the financing of company
and business acquisitions corporate and business trading or for other business
arrangements and investments, for the expansion of owner structure, paying of
remuneration of the Board members and/or for the creating incentives for, or
encouraging commitment in, personnel.
The authorisation gives the Board the right to decide on share issue with or
without payment. The authorisation for deciding on a share issue without
payment also includes the right to decide on the issue for the company itself,
so that the authorisation may be used in such a way that in total no more than
one tenth (1/10) of all shares in the company may from time to time be in the
possession of the company and its subsidiaries.
The authorisation includes the right whereby the Board of Directors is entitled
to decide of all other issues of shares and special rights. Furthermore, the
Board of Directors is entitled to decide on share issues, option rights and
other special rights, in every way, as the same as General Meeting could
decide. The authorisation also includes right to decide on directed issues of
shares and/or special rights.
The authorisation remains in force until 30 April 2015.
OTHER EVENTS DURING THE REVIEW PERIOD
Nurminen Logistics Plc arranges a share issue to the personnel
Nurminen Logistics announced on 14 January 2014 that the Board of Directors of
Nurminen Logistics Plc has decided on 14 January 2014 to arrange a share issue
directed to the personnel. In the share issue, new shares in the company will
be offered for subscription to all Group employees. In the share issue, a
maximum total of 200,000 new shares in the company will, in deviation from the
shareholders' pre-emptive right, be offered for subscription to the Group
personnel. The company has a weighty financial reason for the deviation from
the shareholders' pre-emptive right, since the purpose of the share issue is to
encourage the personnel to acquire and own the company´s shares. The Group
employs 197 people in Finland and 66 people outside Finland. The share
subscription price is EUR 1.48 per share. The share subscription price is based
on the trade volume weighted average quotation of the company's share on NASDAQ
OMX Helsinki Ltd between 1 December 2013 and 31 December 2013, and on a
discount of 10 per cent calculated from such price. The trade volume weighted
average quotation of the company's share during the above period is EUR 1.64
per share. The share subscription period will be 10 March-20 March 2014, and
approved subscriptions must be paid no later than 11 April 2014. The minimum
subscription is 100 shares. The decision on the share issue is based on the
authorization granted by the Annual General Meeting of Shareholders on 15 April
2013.
Nurminen Logistics announced on 10 March 2014 that the Board of Directors has
decided to update the share subscription price of the new shares to be offered
in the personnel share issue. The new share subscription price is EUR 1.41 per
share. The share subscription price is based on the trade volume weighted
average quotation of the company's share on NASDAQ OMX Helsinki Ltd between 1
February 2014 and 28 February 2014, and on a discount of 10 per cent calculated
from such price. The trade volume weighted average quotation of the company's
share during the above period is EUR 1.57 per share. The share subscription
period will be 10 March - 20 March 2014.
Nurminen Logistics announced on 25 March 2014 that the Board of Directors of
Nurminen Logistics Plc approved subscriptions for 45,005 new shares subscribed
in the personnel share issue, corresponding to a total of EUR 63,457.05. The
share subscription price was EUR 1.41 per share. The share subscription period
ended on 20 March 2014.
Change in Nurminen Logistics' own shares
A total of 10,030 shares granted as share-based incentives have been returned
to Nurminen Logistics on February 6, 2014 in accordance with the terms of the
incentive plan as the employment ended. Nurminen Logistics holds now a total of
20,275 its own shares. The number of own shares corresponds to 0.2% of all
Nurminen Logistics shares. This information was published in a stock exchange
release on 6 February 2014.
Nurminen Logistics will centralise its railway terminal operations to Luumäki
Nurminen Logistics announced on 20 January 2014 its plans to reduce its
terminal capacity and transfer terminal operations from the Niirala terminal to
the Luumäki terminal. Due to the personnel impact of the planned changes,
Nurminen Logistics launched co-determination negotiations concerning the
terminal and forwarding personnel of the Niirala location. The co-determination
negotiations were concluded on 11 February 2014, and the company has decided to
shut down the Niirala terminal and centralise its railway terminal operations
to Luumäki. Project deliveries through the Niirala project field will be
continued. As a result of the negotiations, Nurminen Logistics will permanently
lay off a maximum of nine people in Niirala. The lay-offs will be carried out
without delay. The company will support those being laid off to find new
employment. According to preliminary estimates, Nurminen Logistics will record
approximately EUR 0.2 million of expenses related to the arrangement to the
first quarter of 2014. The arrangement will save EUR 0.4 million annually from
2015 onwards.
By centralising its railway terminal operations to the Luumäki terminal,
Nurminen Logistics will adapt its operations to the market change taking place
in Finland, in which railway wagons are more often loaded directly at the
factory, and geographical routes change. The company's strategy is to
strengthen its position in domestic railway transport in Russia and nearby
countries, railway transport between Finland and Russia, as well as in special
and project transport. These changes will not affect this strategy.
EVENTS AFTER THE REVIEW PERIOD
Disclosure notification under chapter 2, section 9 of the Securities Market Act
The company announced in a stock exchange release on 14 April 2014 that it has
received the following disclosure notifications of changes in portions of
holdings on 14 April 2014, pursuant to the Securities Markets Act:Mr. Olli
Pohjanvirta has announced to Nurminen Logistics Plc that his personal and
controlled companies' portion of Nurminen Logistics Plc's total number of
shares and voting rights has risen above 5 per cent (1/20). A company
controlled by Olli Pohjanvirta, VGK Invest Oy, bought 648,000 of Nurminen
Logistics Plc's shares (4.98% of shares and votes) on 11 April 2014. In
addition, Olli Pohjanvirta controls directly or indirectly Nurminen Logistics
Plc's shares and votes as follows: Olli Pohjanvirta owns directly 141,184
shares (1.08% of shares and votes) and through the companies controlled by him:
Etl Holding Oy 158,000 shares (1.21% of shares and votes), Etl Invest Oy
181,818 shares (1.40% shares and votes), and through Russian Capital Management
Oy 25,000 shares (0.19% of shares and votes). Olli Pohjanvirta's share capital
now comprises 1,154,002 Nurminen Logistics Plc's shares which are equivalent to
8.87% of Nurminen Logistics Plc's share capital and voting rights. Nurminen
Logistics Plc's share capital comprises 13,012,737 shares and votes.
A positive arbitrage for Nurminen Logistics in a tax responsibility matter
The company announced on 14 April 2014 that an arbitral tribunal has given a
positive arbitrage for Nurminen Logistics in the matter related to the taxation
of the old John Nurminen Ltd of year 2007. The arbitration clarified the
division of tax responsibility between the new John Nurminen Ltd and Nurminen
Logistics Plc pertaining to the adjustment decision of the pre-demerger John
Nurminen Ltd for the financial year 2007. According to the arbitrage, the new
John Nurminen Ltd is responsible for the EUR 0.4 million tax responsibility.
The former John Nurminen Ltd was demerged on 1 January 2008 according to a
demerger plan dated 7 September 2007, with the two receiving companies being
the new John Nurminen and Kasola Plc. Kasola Plc subsequently changed its name
to Nurminen Logistics Plc.
New shares in Nurminen Logistics Plc entered into the trade register
A total of 45,005 new shares subscribed in the personnel share issue of
Nurminen Logistic Plc were entered into the Trade Register on 28 April 2014.
The shareholder rights of the new shares arise as from the date of the Trade
Register entry, 28 April 2014. After the Trade Register entry of the new
shares, the total number of shares in Nurminen Logistics Plc is 13,057,742. The
shares entered into the Trade Register will be publicly traded as of 29 April
2014. This information was published in a stock exchange release on 28 April
2014.
Disclaimer
Certain statements in this bulletin are forward-looking and are based on the
management's current views. Due to their nature, they involve risks and
uncertainties and are susceptible to changes in the general economic or
industry conditions.
Nurminen Logistics Plc
Board of Directors
For more information, please contact: Olli Pohjanvirta, President and CEO, tel.
+358 10 545 2431
DISTRIBUTION
NASDAQ OMX Helsinki
Major media
www.nurminenlogistics.com
Nurminen Logistics is a listed company established in 1886 that offers
logistics services. The company provides high-quality railway transports,
project transport services, special transports and forwarding and cargo
handling services to its customers. The main market areas of Nurminen Logistics
are Finland, Russia and its neighbouring countries.
TABLES
Tables concerning business units are presented in the verbal part of the
interim report.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1-3/20 1-3/20 1-12/20
14 13 13
--------------------------------------------------------
EUR 1,000
NET SALES 14 114 16 709 63 844
Other operating income 79 212 1 834
Materials and services -6 926 -7 306 -29 189
Employee benefit expenses -2 881 -3 870 -14 606
Depreciation, amortisation and impairment losses -661 -967 -3 538
Other operating expenses -3 701 -4 945 -18 129
OPERATING RESULT 24 -168 216
Financial income 7 82 55
Financial expenses -699 -453 -3 444
Share of profit in equity-accounted investees -31 19 126
RESULT BEFORE TAX -699 -520 -3 048
Income taxes -93 -355 -899
PROFIT / LOSS FOR THE PERIOD -791 -875 -3 947
Other comprehensive income
Other comprehensive income to be reclassified to profit
or loss in subsequent periods:
Translation differences -1 538 382 -2 287
Other comprehensive income for the period after tax -1 538 382 -2 287
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -2 329 -493 -6 234
Result attributable to
Equity holders of the parent company -831 -1 051 -4 149
Non-controlling interest 39 176 202
Total comprehensive income attributable to
Equity holders of the parent company -2 368 -669 -6 439
Non-controlling interest 39 176 202
EPS undiluted -0,06 -0,08 -0,32
EPS diluted -0,06 -0,08 -0,32
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 31.3.2014 31.3.2013 31.12.2013
---------------------------------------------
EUR 1,000
ASSETS
Non-current assets
Property, plant and equipment 29 762 37 939 31 492
Goodwill 9 516 9 516 9 516
Other intangible assets 470 722 530
Investments in equity-accounted investees 264 368 295
Receivables 35 35 35
Deferred tax assets 868 1 105 926
NON-CURRENT ASSETS 40 915 49 684 42 795
Current assets
Trade and other receivables 10 782 15 046 11 045
Current tax receivables 159 184 93
Cash and cash equivalents 1 434 4 740 3 553
CURRENT ASSETS 12 376 19 970 14 691
ASSETS TOTAL 53 291 69 654 57 486
EQUITY AND LIABILITIES
Share capital 4 215 4 215 4 215
Other reserves 19 593 20 622 19 591
Translation differences -4 860 -3 057 -4 193
Retained earnings -961 4 933 720
Non-controlling interest 597 2 613 558
EQUITY, TOTAL 18 583 29 326 20 891
Non-current liabilities
Deferred tax liability 361 516 350
Other liabilities 525 649 561
Financial liabilities 14 398 17 565 14 849
NON-CURRENT LIABILITIES 15 285 18 730 15 760
Current liabilities
Current tax liabilities 101 214 88
Financial liabilities 8 910 10 640 8 902
Trade payables and other liabilities 10 413 10 743 11 846
CURRENT LIABILITIES 19 423 21 598 20 835
TOTAL LIABILITIES 34 708 40 328 36 595
TOTAL EQUITY AND LIABILITIES 53 291 69 654 57 486
CONDENSED CONSOLIDATED CASH FLOW STATEMENT EUR 1,000 1-3/20 1-3/20 1-12/2
14 13 013
---------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES
Profit/Loss for the period -791 -875 -3 947
Gains and losses on disposals of property, plant and -3 -160 -1 685
equipment and other non-current assets
Depreciation, amortisation and impairment losses 661 967 3 538
Unrealised foreign exchange gains and losses 289 -81 1 071
Other adjustments 440 677 2 629
Paid and received interest -314 -205 -1 400
Taxes paid -148 -543 -1 244
Changes in working capital -1 767 333 4 848
Cash flow from operating activities -1 634 112 3 808
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment and -71 527 3 531
intangible assets
Investments in property, plant and equipment and 31 -127 -446
intangible assets
Proceeds from sale of other investments 0 0 2
Cash flow from investing activities -39 400 3 087
CASH FLOW FROM FINANCING ACTIVITIES
Share issue for cash 2 0 0
Changes in liabilities -413 -697 -5 360
Dividends paid / repayments of equity 0 0 -2 762
Cash flow from financing activities -412 -697 -8 122
CHANGE IN CASH AND CASH EQUIVALENTS -2 118 -161 -1 349
Cash and cash equivalents at beginning of period 3 553 4 901 4 901
Cash and cash equivalents at end of period 1 434 4 740 3 553
A= Share capital
B= Share premium reserve
C= Legal reserve
D= Reserve for invested unrestricted equity
E= Translation differences
F= Retained earnings
G= Non-controlling interest
H= Total
STATEMENT OF CHANGES IN EQUITY A B C D E F G H
1-3/2014 EUR 1,000
---------------------------------
Equity 1.1.2014 4215 86 2378 17127 -4193 720 558 20891
Result for the period 0 0 0 0 0 -831 39 -791
Total comprehensive income for 0 0 0 0 -668 -871 0 -1538
the period / translation
differences
Other changes 0 0 0 2 0 20 0 22
Equity 31.3.2014 4215 86 2378 17128 -4860 -961 597 18583
STATEMENT OF CHANGES IN EQUITY A B C D E F G H
1-3/2013 EUR 1,000
-------------------------------
Equity 1.1.2013 4215 86 2378 18158 -3276 5799 2437 29797
Result for the period 0 0 0 0 0 -1051 176 -875
Total comprehensive income for 0 0 0 0 219 162 0 382
the period / translation
differences
Other changes 0 0 0 0 0 23 0 23
Equity 31.3.2013 4215 86 2378 19131 -2867 4933 2613 29326
MOVEMENTS IN FIXED ASSETS
Movements in fixed assets Tangible Intangible Total
-------------------------------------------------
EUR 1,000
Book value 1.1.2014 31 492 10 046 41 539
Additions 70 0 70
Disposals -27 0 -27
Depreciation, amortisation and impairment losses -600 -61 -661
Exchange rate differences -1 173 0 -1 173
Book value 31.3.2014 29 762 9 986 39 748
Movements in fixed assets Tangible Intangible Total
-------------------------------------------------
EUR 1,000
Book value 1.1.2013 38 737 10 329 49 066
Additions 127 0 127
Disposals -370 0 -370
Depreciation, amortisation and impairment losses -876 -91 -967
Exchange rate differences 321 0 321
Book value 31.3.2013 37 939 10 238 48 177
RELATED PARTY TRANSACTIONS
The related parties comprise the members of the Board of Directors and
Executive Board of Nurminen Logistics and companies in which these members have
control. Related parties are also deemed to include shareholders with direct or
indirect control or substantial influence.
Related party transactions 1-3/2014
---------------------------
EUR 1,000
Sales 2
Purchases 49
Current liabilities 36
KEY FIGURES
KEY FIGURES 1-3/2014 1-3/2013 1-12/2013
-------------------------------------
Gross capital expenditure, EUR 1,000 70 127 429
Personnel 248 336 277
Operating margin % 0,2 % -1,0 % 0,3 %
Share price development
Share price at beginning of period 1,60 1,88 1,88
Share price at end of period 1,55 2,00 1,60
Highest for the period 1,73 2,05 2,20
Lowest for the period 1,47 1,85 1,52
Eguity/share EUR 1,38 2,07 1,56
Earnings/share (EPS) EUR, undiluted -0,06 -0,08 -0,32
Earnings/share (EPS) EUR, diluted -0,06 -0,08 -0,32
Equity ratio % 34,87 42,10 36,42
Gearing % 117,70 80,00 96,70
OTHER LIABILITIES AND COMMITMENTS
Contingencies and commitments, EUR 1,000 31.3.201 31.3.201 31.12.201
4 3 3
--------------------------------------------------
Mortgages given 11 000 11 000 11 000
Book value of pledged subsidiary shares and -loan 52 434 39 662 46 516
receivables
Other contingent liabilities 12 323 16 604 15 568
Rental obligations 65 283 71 950 67 194
ACCOUNTING POLICIES
The interim financial information has been prepared in accordance with IAS 34
'Interim Financial Reporting'. The IFRS recognition and measurement principles
as described in the annual financial statements for 2013 have also been applied
in the preparation of the interim financial information, with the changes
mentioned below. Other adopted new and amended IFRS-standards and
interpretations have not had significant impact on reported figures.
The Group has applied the following revised and amended standards as of 1
January 2014:
IFRS 10 Consolidated Financial Statements
IFRS 12 Disclosures of Interests in Other Entities
Annual Improvements to IFRSs
All figures have been rounded and consequently the sum of individual figures
can deviate from the presented sum figure. Key figures have been calculated
using exact figures. This interim report is unaudited.
Calculation of Key Figures
Equity ratio (%) =
Equity
______________________________________ X 100
Balance sheet total - advances received
Earnings per share (EUR) =
Result attributable to equity holders of the parent company
_________________________________________________________
Weighted average number of ordinary shares outstanding
Equity per share (EUR) =
Equity attributable to equity holders of the parent company
________________________________________
Undiluted number of shares outstanding at the end of the financial year
Gearing (%) =
Interest-bearing liabilities - cash and cash equivalents
____________________________________________ X 100
Equity
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