2013-08-01 09:00:00 CEST
2013-08-01 09:00:03 CEST
REGULATED INFORMATION
Scanfil Oyj - Interim report (Q1 and Q3)
SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 30 JUNE 2013
SCANFIL PLC INTERIM REPORT 1 AUGUST 2013 10.00 A.M.
SCANFIL GROUP'S INTERIM REPORT 1 JANUARY - 30 JUNE 2013
January - June
- Turnover totalled to EUR 92.8 million (1-6 2012: 91.9)
- Operating profit EUR 5.1 million (4.6), 5.5% (5.0%) of turnover
- Profit for the review period was EUR 3.3 million (3.7)
- Earnings per share were EUR 0.06 (0.06)
April - June
- Turnover totalled EUR 48.7 million (Q2 2012: 49.3)
- Operating profit EUR 3.1 million (3.2), 6.3% (6.4%)of turnover
- Profit was EUR 2.1 million (2.6)
- Earnings per share amounted EUR 0.04 (0.04)
Scanfil plc changes its assessed outlook for 2013 and now estimates that its
turnover and operating profit for 2013 will slightly increase from the year
2012. Turnover in 2012 was EUR 180.9 million and operating profit EUR 8.1
million.
Previously, Scanfil estimated that its turnover for 2013 will increase from the
level of 2012 and that operating profit will be at the level of 2012.
Petteri Jokitalo, CEO of Scanfil plc:
”As expected, the challenging market situation continued during the first half
of the year. Sales of professional electronics increased, whereas sales of
telecommunication products decreased in comparison to the previous year. In the
first half of the year, Scanfil's turnover increased by about 1% in comparison
to the previous year.
In the period under review, Scanfil's reported operating profit increased by
about 10% from the previous year, and stood at EUR 5.1 million. Excluding the
impact of non-recurring items of 2012 and 2013, operating profit would have
increased by about 30% from the comparison period. The positive trend was among
other things caused by successful cost control and product structure changes.
Scanfil's solid financial position allows us to develop the company according
to the needs of our customers."
DEVELOPMENT OF OPERATIONS
The change in Scanfil's sales structure continued, and sales to professional
electronics customers during the period under review increased by more than 11%
in comparison to the corresponding period last year, accounting for 82% of
turnover (72% in the corresponding period in 2012).Sales to telecommunication
customers continued to decline, being 18% (28%) of turnover. Scanfil continued
active sales efforts to get new professional electronics customers, and
especially to expand the client base in Central Europe and China.
The company's new enterprise resource planning system was successfully adopted
by the Finnish organization during the period under review. The Hungarian
subsidiary will be the next organization to adopt the new system this year. The
system will be in use throughout the Group by the end of 2014.
During the period under review, Scanfil invested in mechanics production
manufacturing capacity at the Estonian factory and electronics production
manufacturing capacity at the Estonian and Suzhou factories.
Scanfil's turnover in second quarter was EUR 48.7 million (EUR 49.3 in the same
period in 2012). Turnover decreased by about 1% compared to second quarter of
last year, but increased by more than 10% compared to first quarter of this
year. The development of turnover in second quarter was affected by the further
decrease in demand for telecommunication products. However, the decrease is
expected to slow down in the second half of the year.
FINANCIAL DEVELOPMENT
The Group's turnover for January - June was EUR 92.8 (91.9) million.
Distribution of turnover based on the location of customers was as follows:
Finland 45% (45%), rest of Europe 22% (17%), Asia 31% (37%), USA 1% (1%) and
others 1% (0%).
Operating profit for the Group during the review period was EUR 5.1 (4.6)
million, representing 5.5% (5.0%) of turnover. Operating profit includes a
credit loss reserve of EUR 0.3 million in sales receivables from an associated
company. The 2012 operating profit includes the following non-recurring items:
Scanfil EMS Oy's share of the damages paid by Ojala-Yhtymä Oy, EUR 1.2 million,
Scanfil plc's listing expenses, EUR 0.4 million, and the provision for expenses
due to the restructuring of the Hangzhou subsidiary, EUR 0.4 million, for a
total of EUR +0.5 million. Operating profit excluding non-recurring items was
EUR 5.4 (4.1) million, representing 5.8% (4.5%) of turnover.
Earnings for the review period amounted to EUR 3.3 (3.7) million. Earnings per
share were EUR 0.06 (0.06) and return on investment was 8.6% (9.5%).
Turnover amounted to EUR 48.7 (49.3) million in April-June and operating profit
for the second quarter was EUR 3.1 (3.2) million, or 6.3% (6.4%) of turnover.
Profit for the quarter was EUR 2.1 (2.6) million.
The operations of Greenpoint Oy, an associated company of Scanfil EMS Oy, have
not developed as planned, and Scanfil's evaluation is that the Greenpoint's
existing possibilities to deal with its obligations are poor. Scanfil finds
that resolving Greenpoint's situation in a favourable way requires a funding
solution in which more capital is injected into the company and the amount of
debt is reduced. So far, new financiers have not been found. Therefore, Scanfil
has entered a credit loss reserve for the EUR 0.3 million in loans granted to
Greenpoint and EUR 0.3 million in sales receivables from Greenpoint, and
written down the remaining business value, EUR 0.6 million, a total negative
impact on profit before tax EUR 1.2 million in January-June, of which a
business value depreciation of EUR 0.2 million was entered in the first
quarter. Scanfil EMS Oy owns 40% of Greenpoint Oy.
FINANCING AND CAPITAL EXPENDITURE
The Group enjoys a strong financial position.
The consolidated balance sheet totalled EUR 131.6 (138.9) million. Liabilities
amounted to EUR 54.2 (64.5) million, EUR 30.8 (32.2) million of which were
non-interest-bearing and EUR 23.4 (32.4) million interest-bearing. The equity
ratio was 58.8% (53.5%) and gearing -0.8% (0.2%). The equity per share was EUR
1.34 (1.29).
Liquid cash assets totalled EUR 24.0 (32.3) million.
Cash flow from operating activities in the review period of January - June came
to EUR 2.1 (5.9) million. The change in working capital during the period
amounted to EUR -4.6 (-1.4) million. The amount of capital bound to working
capital is larger due to the higher turnover compared to the turn of the year.
Cash flow from investment activities was EUR -2.3 (-5.0) and cash flow from
financing activities was EUR -6.5 (-4.4) million. The funding cash flow
includes dividend payments and loan instalments.
Gross investments in January - June in fixed assets totalled EUR 2.5 (5.1)
million, which is 2.7% (5.6%) of turnover. Investments are machine and
equipment investments and the procurement of a new ERP system for the Finnish
operations. Depreciations were EUR 2.2 (2.2) million.
Scanfil EMS Oy has strengthened the capital structure of its Estonian
subsidiary Scanfil Oü by converting EUR 7.0 million from the EUR 13.6 million
of Group loans to the reserve for invested non-restricted equity.
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.
SHARE TRADING AND SHARE PERFORMANCE
The highest trading price during the review period was EUR 0.96 and the lowest
EUR 0.82, the closing price for the period standing at EUR 0.87. A total of
951,487 shares were traded during the period, corresponding to 1.6% of the
total number of shares. The market value of the shares on 30 June 2013 was EUR
50.2 million.
PERSONNEL
Scanfil Group's personnel averaged 1,669 (1,701) employees during the review
period. At the end of the period, the Group employed 1,647 (1,625) people, of
whom 259 (285) worked in the company's Finnish units and 1,388 (1,340) in the
company's units outside Finland. In all, 84% (82%) of the Group's personnel
were employed by subsidiaries outside Finland on 30 June 2013.
FUTURE PROSPECTS
Due to the uncertainty in the global economy, it is very difficult to predict
developments in the contract manufacturing market.
Scanfil plc changes its assessed outlook for 2013 and now estimates that its
turnover and operating profit for 2013 will slightly increase from the year
2012. Turnover in 2012 was EUR 180.9 million and operating profit EUR 8.1
million.
Previously, Scanfil estimated that its turnover for 2013 will increase from the
level of 2012 and that operating profit will be at the level of 2012.
OPERATIONAL RISKS AND UNCERTAINTIES
The weakening outlook for growth in the global economy, the slight downturn in
the eurozone and the EU, and a decline in international demand for investment
commodities may have a negative impact on the business development of Scanfil's
customers and may weaken demand in the contract manufacturing market. This may
slow down the sales and profitability development of Scanfil.
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
4 - 6 4 - 6 1 - 6 1 - 6 1 - 12
2013 2012 2013 2012 2012
Turnover 48.7 49.3 92.8 91.9 180.9
Other operating income 0.1 0.1 0.1 1.3 1.3
Changes in inventories of finished goods
and work in progress 0.1 0.7 0.7 0.7 -0.1
Manufacturing for own use 0.0 0.0 0.0 0.0
Expenses -44.7 -45.7 -86.3 -87.1 -169.5
Depreciation -1.1 -1.1 -2.2 -2.2 -4.5
Operating profit 3.1 3.2 5.1 4.6 8.1
Financial income and expenses 0.1 0.2 -0.5 0.2 -0.1
Share in the associated company´s profit -0.4 -0.1 -0.6 -0.2 -0.4
Profit before taxes 2.7 3.2 4.0 4.6 7.6
Income taxes -0.6 -0.6 -0.8 -0.9 -1.9
Net profit for the period 2.1 2.6 3.3 3.7 5.7
Attributable to:
Equity holders of the parent 2.1 2.6 3.3 3.7 5.7
Earnings per share for profit attributable
to
shareholders of the parent:
basic earnings per share ( EUR) 0.04 0.04 0.06 0.06 0.10
The company does not have items that might dilute the earnings
per share.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million
4 - 6 4 - 6 1 - 6 1 - 6 1 - 12
2013 2012 2013 2012 2012
Net profit for the period 2.1 2.6 3.3 3.7 5.7
Other comprehensive income:
Translation differences -2.8 2.6 -1.0 1.1 -0.3
Derivative financial instrument 0.1 -0.2 0.2 0.1 0.2
Other comprehensive income, net of tax -2.7 2.5 -0.8 1.2 -0.1
Total Comprehensive Income -0.5 5.0 2.4 4.9 5.6
Attributable to: -0.5 5.0 2.4 4.9 5.6
Equity holders of the parent
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million
Assets 30.6.2013 30.6.2012 31.12.2012
Non-current assets
Property, plant and equipment 30.1 30.8 29.9
Goodwill 2.2 2.2 2.2
Other intangible assets 4.1 3.8 3.7
Shares in associated companies 0.9 0.6
Available-for-sale investments 0.0 0.0 0.0
Receivables 0.2 0.2 0.2
Deferred tax assets 0.7 0.5 0.6
Total non-current assets 37.4 38.4 37.4
Current assets
Inventories 32.2 30.6 29.9
Loan receivables from associated companies 0.1 0.1
Trade and other receivables 37.7 37.3 32.0
Advance payments 0.2 0.1 0.4
Current tax 0.1 0.1 0.0
Available-for-sale investments, liquid assets 10.0 9.7
Available-for-sale investments, cash 4.7 19.7 5.5
equivalents
Cash and cash equivalents 9.3 12.6 15.0
Total current assets 94.2 100.5 92.7
Total assets 131.6 138.9 130.0
Shareholder's equity and liabilities 30.6.2013 30.6.2012 31.12.2012
Equity
Share capital 2.0 2.0 2.0
Translation differences 7.9 10.3 9.0
Other reserves 5.6 5.2 5.3
Reserve for invested unrestricted equity fund 10.7 10.7 10.7
Retained earnings 51.2 46.0 48.0
Total equity 77.4 74.3 75.0
Non-current liabilities
Deferred tax liabilities 0.0 0.0
Provisions 1.1 0.7 0.4
Interest bearing liabilities 18.5 23.2 18.9
Other liabilities 0.1
Total non-current liabilities 19.6 23.9 19.3
Current liabilities
Trade and other liabilities 28.8 30.5 25.4
Current tax 0.9 0.8 0.8
Interest bearing liabilities 4.9 9.3 9.5
Total current liabilities 34.6 40.6 35.7
Total liabilities 54.2 64.5 55.0
Total shareholder's equity and liabilities 131.6 138.8 130.0
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1.1-30.6.2013 1.1-30.6.2012 1.1-31.12.2012
Cash flow from operating
activities
Net profit 3.3 3.7 5.7
Adjustments for the net profit 4.7 3.8 7.4
Change in net working capital -4.6 -1.4 -0.4
Paid interests and other financial -0.3 -0.4 -0.8
expenses
Interest received 0.2 0.2 0.4
Taxes paid -1.1 -0.0 -1.1
Net cash from operating activities 2.1 5.9 11.2
Cash flow from investing
activities
Investments in tangible and -2.4 -5.0 -7.3
intangible assets
Sale of tangible and intangible 0.0 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 -2.3 -5.0 -16.9
Cash flow from financing
activities
Short-term loans raised 0.3
Repayment of long-term loans -4.4 -4.4 -8.9
Dividends paid -2.3
Net cash from financing activities -6.5 -4.4 -8.9
Net increase/decrease in cash and -6.7 -3.6 -14.6
cash equivalents
Cash and cash equivalents at 20.5 35.2 35.2
beginning of period
Cash transfered at the demerger 0.1 0.1
Changes in exchange rates 0.3 0.6 -0.1
Cash and cash equivalents at end 14.1 32.3 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
Trasfer to funds 0.1 -0.1 0
Dividends paid -2.0 -2.0
Total comprehensive 1.0 0.2 3.3 4.5
income
Equity
--------------------------------------------------------------------------------
30.6.2013 2.0 9.9 5.6 10.7 49.2 77.4
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
Trasfer to funds 0.3 -0.3 0
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 - 6 1 - 6 1 - 12
2013 2012 2012
Return on equity, % 8.6 10.4 7.9
Return on investment, % 8.6 9.5 8.1
Interest-bearing liabilities, EUR million 23.4 32.4 28.4
Gearing, % -0.8 0.2 -2.4
Equity ratio, % 58.8 53.5 57.7
Gross investments in fixed assets, EUR million 2.5 5.1 7.2
% of net turnover 2.7 5.6 4.0
Personnel, average 1 669 1 701 1 669
Earnings per share, EUR 0.06 0.06 0.10
Shareholders´ equity per share, EUR 1.34 1.29 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 23.4 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 - 6 1 - 6 1 - 12
2013 2012 2012
Turnover
Europe 59.4 57.1 108.1
Asia 35.4 36.4 75.8
Turnover between -1.9 -1.6 -3.0
segments
Total 92.8 91.9 180.9
Operating profit
Europe 2.9 3.5 5.2
Asia 2.2 1.2 2.9
Total 5.1 4.6 8.1
Assets
Europe 61.9 66.1 64.2
Asia 67.5 69.7 62.9
Goodwill 2.2 2.2 2.2
Shares in 0.9 0.6
associated
companies
Total 131.6 138.9 130.0
CHANGES IN TANGIBLE NON-CURRENT ASSETS
EUR million
1 - 6 1 - 6 1 - 2
2013 2012 2012
Book value at the 29.9 27.0 27.0
beginning of the
period
Additions 2.0 5.1 7.0
Deductions 0.0 0.0 -0.1
Depreciations -2.1 -2.1 -4.3
Exchange rate 0.3 0.7 0.3
differences
Book value at the 30.1 30.8 29.9
end of the period
CONTINGENT
LIABILITIES
EUR million
1 - 6 1 - 6 1 - 12
2013 2012 2012
Given business 40.0 40.0 40.0
mortgages
Pledged guarantees 1.0 1.0 1.3
Leasing liabilities 0.0 0.0 0.1
and other lease
liabilities
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 June 2013
is EUR 23.4 million.
TRANSACTIONS WITH RELATED PARTIES
EUR million
1 - 6 1 - 6 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 0.0 0.0 0.0
receivables
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 booked as credit loss reserve. 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 6 thousand by 30 June 2013.
KEY INDICATORS QUATERLY
Q2/13 Q1/13 Q4/12 Q3/12 Q2/12 Q1/12
Turnover, MEUR 48.7 44.0 40.8 48.2 49.3 42.6
Operating profit, MEUR 3.1 2.0 0.7 2.8 3.2 1.4
Operating profit, % 6.3 4.6 1.8 5.7 6.4 3.4
Net income, MEUR 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.
© 2024 Nasdaq, Inc. All Rights Reserved |