Panostaja Oyj - Financial Statement Release

Panostaja Oyj´s Financial Statement 1.11.2016-31.10.2017

Panostaja Oyj                Financial Statement Release    14.12.2017    9.00 am.

August 1, 2017–October 31, 2017 (3 months) 

• KotiSun continued its profitable growth during the review period, its net sales increasing by 27% from the corresponding period last year.
• As a result of corporate acquisitions, Grano's net sales for the review period increased by 50% from the reference period. The net sales were encumbered by the costs of the acquisitions and the provision for the employer-employee negotiations.
• Grano continued to implement its corporate acquisition strategy, purchasing the business operations of Lönnberg Painot Oy and Brand Factory Finland Oy during the review period.
• Panostaja acquired an eighth investment by purchasing the majority shareholding in CoreHW Oy, which engineers high-performance electronics.
• Net sales increased in seven of the eight investments. Net sales for the review period increased by 34% to MEUR 58.9 (MEUR 43.8).
• EBIT improved in five of the eight investments, and the entire Group’s EBIT increased slightly from the level of the reference period, standing at MEUR 3.2 (MEUR 2.9). The EBIT for the review period was encumbered by costs related to the preparation and implementation of the corporate restructurings, which amounted to a total of MEUR 1.6.
• MEUR 3.1 was recorded for the losses caused by Takoma during the review period as a tax receivable through profit and loss, and the profit/loss of the business operations discontinued during the review period includes a MEUR 0.8 proportional share from the bankruptcy estates of Takoma Gears Oy and Takoma Oyj.
• Earnings per share (undiluted) were 6.8 cents (3.0 cents)

November 1, 2016–October 31, 2017 (12 months) 

• Net sales increased in seven of the eight investments. Net sales for the Group as a whole increased by 19.0% to MEUR 193.2 (MEUR 162.3).
• EBIT increased in six of the eight investments. EBIT for the entire Group weakened from MEUR 10.1 to MEUR 9.5.
• Takoma’s cash position became critical, and the company filed for bankruptcy. The profit/loss of the financial period is encumbered by Takoma’s loss of MEUR 1.6, which is recorded under discontinued operations.
• Earnings per share (undiluted) were 3.5 cents (6.9 cents) The additional purchase price of Flexim Security Oy is included in the result of the period.

Proposal for the distribution of profits: The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.04 per share be paid for the past financial period.

CEO Juha Sarsama: Busy quarter in corporate acquisitions

”During the last quarter of the review period, the total net sales of the investments increased by 34% from the reference period. As in previous quarters, the most significant factor influencing the growth of net sales was the impact of Grano’s corporate acquisitions, but growth was also wide-ranging in other segments. Net sales increased in seven of the eight investments.

EBIT for the final quarter of the period increased from MEUR 2.9 in the reference period to MEUR 3.2, although the result was significantly weighed down by the unusually large expenses related to the corporate acquisitions. As a result, the profitability of the investment targets developed largely as expected over the course of the review period. However, we will continue measures to improve Megaklinikka’s profitability and ensure an upturn in Grano’s bottom line.

During the review period, Grano acquired the business operations of Brand Factory Finland Oy and Lönnberg Painot Oy. After the corporate acquisitions, Grano initiated efforts to carry out the identified streamlining and integration measures. The operational restructuring and streamlining measures target about MEUR 4 in annual cost savings, slightly less than half of which are estimated to be realized in the 2018 financial year.

During the review period, Panostaja invested in wireless technology by purchasing a majority holding in CoreHW Oy, a company designing high-performance electronics. In addition to a profitable and modern core business, the company has excellent opportunities for productization. We find the opportunities afforded by high-level technological expertise to be extremely interesting as equipment and applications utilizing the Internet of Things are becoming more commonplace.

Activity on the corporate acquisition market has continued on a good level, and the supply of new investments has been active. However, there is a large amount of investment capital on the market and the competition for investments is fierce. When investing through our own balance, our flexible operating model gives us the opportunity to assess our corporate acquisition strategy according to the market situation. We will continue to actively explore interesting investments, but we will also carefully consider and assess every opportunity for a corporate acquisition. Moreover, we feel that the active market situation provides an excellent opportunity to investigate a number of select divestment opportunities.”

MEUR	Q4	Q4	12 months	12 months
	8/17–   10/17	8/16-   10/16	11/16–   10/17	11/15–   10/16
Net sales, MEUR	58.9	43.8	193.2	162.3
EBIT, MEUR	3.2	2.9	9.5	10.1
Profit before taxes, MEUR	2.5	2.5	7.5	8.3
Profit/loss for the financial period, MEUR	5.3	3.1	6.9	9.2
Earnings per share, undiluted (EUR)	0.07	0.03	0.04	0.07
Equity per share (EUR)	0.59	0.77	0.59	0.77
Operating cash flow (MEUR)	7.8	4.6	15.6	9.6

 

 

Division of the net sales by segment MEUR	Q4	Q4	12 months	12 months
Net sales	8/17–   10/17	8/16-   10/16	11/16–  10/17	11/15–   10/16
Grano	33.6	22.8	105.3	88.2
KotiSun	12.5	9.8	42.5	31.9
KL-Varaosat	3.6	3.4	13.5	13.0
Selog	2.8	2.7	10.8	10.3
Helakeskus	2.3	2.4	8.9	9.8
Megaklinikka	1.3	1.3	6.0	4.7
Heatmasters	1.8	1.3	5.3	4.5
CoreHW	1.0	0.0	1.0	0.0
Others	0.0	0.0	0.0	0.0
Eliminations	0.0	0.0	-0.1	-0.1
Group in total	58.9	43.8	193.2	162.3

 

 

Division of EBIT by segment MEUR	Q4	Q4	12 months	12 months
EBIT	8/17–   10/17	8/16-   10/16	11/16–  10/17	11/15–   10/16
Grano	1.9	1.9	6.3	7.8
KotiSun	2.4	1.9	6.6	5.8
KL-Varaosat	0.3	0.4	1.0	1.0
Selog	0.3	0.2	0.8	0.7
Helakeskus	0.2	0.2	0.5	0.3
Megaklinikka	-0.2	-0.6	-1.6	-1.5
Heatmasters	0.0	-0.3	-0.2	-1.0
CoreHW	0.0	0.0	0.0	0.0
Others	-1.7	-0.7	-4.0	-2.9
Group in total	3.2	2.9	9.5	10.1

Panostaja Group’s business operations for the current review period are reported in nine segments: Grano, KotiSun, Selog, Helakeskus, KL-Varaosat, Heatmasters, Megaklinikka, CoreHW and Others (parent company and associated companies).

There were no significant changes in the net sales of the segment Others. In the review period, three associated companies issued reports: Juuri Partners Oy, Ecosir Group Oy and Spectra Yhtiöt Oy. The profit/loss of the reported associated companies in the review period was MEUR 0.3 (MEUR 0.1), which is presented on a separate row in the consolidated income statement.

 

OUTLOOK FOR THE 2018 FINANCIAL PERIOD

Activity on the corporate acquisition market has continued on a good level during the review period, and the supply of new investments has been active. The need to exploit ownership arrangements and growth opportunities in SMEs will continue, and as our own activity complements the supply of possible acquisitions from outside, there are plenty of possibilities for corporate acquisitions on the market. Panostaja aims to implement its growth strategy by means of controlled acquisitions in current investments, and new potential investments are also being actively studied. Divestment possibilities are actively evaluated as well, on a somewhat larger scale than before, as a part of the owner strategies of the investments.

The demand situation for different investments is thought to develop in the short term as follows:

• The demand for KotiSun, Selog, Helakeskus and CoreHW remains good
• The demand for Grano, KL-Varaosat and Heatmaster will remain satisfactory
• Demand for Megaklinikka will remain weak

 

Panostaja Oyj

Board of Directors

For further information, contact CEO Juha Sarsama: tel. +358 (0)40 774 2099.

 

Panostaja Oyj

Juha Sarsama

CEO

Attachments:

Panostaja Oyj Financial Statement 14 12 2017 ID 21595.pdf