2014-02-17 08:00:02 CET
2014-02-17 08:00:09 CET
REGULATED INFORMATION
Ramirent - Financial Statement Release
RAMIRENT’S FINANCIAL STATEMENTS BULLETIN FOR 2013: STRONG BALANCE SHEET SUPPORTED BY INCREASED CASH FLOWS
RAMIRENT PLC COMPANY ANNOUNCEMENT 17 FEBRUARY
2014 at 9:00
Vantaa, Finland, 2014-02-17 08:00 CET (GLOBE NEWSWIRE) --
Note! Figures in brackets, unless otherwise indicated, refer to the
corresponding period a year earlier.
JANUARY-DECEMBER 2013 HIGHLIGHTS
-- Ramirent net sales EUR 647.3 (714.1) million, down by 9.4%; adjusted for
transferred or divested operations, net sales decreased by 4.2% at
comparable exchange rates
-- EBITA1) EUR 92.1 (100.6) million or 14.2% (14.1%) of net sales
-- EBITA1) excluding non−recurring items2) EUR 85.3 (100.6) million or 13.2%
(14.1%) of net sales
-- Profit for the period EUR 54.0 (63.7) million and EPS EUR 0.50 (0.59)
-- Gross capital expenditure EUR 125.8 (124.0) million
-- Cash flow after investments EUR 73.4 (54.2) million
-- Net debt to EBITDA ratio 1.1x (1.1x)
-- The Board proposes an ordinary dividend of EUR 0.37 (0.34) per share
representing a 74% (57%) payout ratio and further proposes that the Board
be authorised to decide at its discretion on the payment of additional
dividend up to the amount of EUR 0.63 per share
OCTOBER-DECEMBER 2013 HIGHLIGHTS
-- Ramirent net sales EUR 167.5 (194.1) million, down by 13.7%; adjusted for
transferred or divested operations, net sales decreased by 5.9% at
comparable exchange rates
-- EBITA1) EUR 20.9 (29.7) million or 12.5% (15.3%) of net sales
-- Profit for the period EUR 13.9 (19.9) million and EPS EUR 0.13 (0.18)
RAMIRENT OUTLOOK FOR 2014
The economic growth in 2014 is expected to be modest and construction market
demand remains mixed in our core markets. Ramirent will maintain strict cost
control and, for 2014, capital expenditure is expected to be around the same
level as in 2013. The strong financial position will enable the Group to
continue to address profitable growth opportunities.
KEY FIGURES (MEUR) 10-12/ 10-12/ Change 1-12/1 1-12/1 Change
13 12 3 2*
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Net sales 167.5 194.1 −13.7% 647.3 714.1 −9.4%
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EBITDA 46.2 56.7 −18.4% 195.1 210.5 −7.3%
--------------------------------------------------------------------------------
% of net sales 27.6% 29.2% 30.1% 29.5%
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EBITA 1) 20.9 29.7 −29.6% 92.1 100.6 −8.4%
--------------------------------------------------------------------------------
% of net sales 12.5% 15.3% 14.2% 14.1%
--------------------------------------------------------------------------------
EBIT 19.0 27.7 −31.5% 82.3 92.5 −11.1%
--------------------------------------------------------------------------------
% of net sales 11.3% 14.3% 12.7% 13.0%
--------------------------------------------------------------------------------
EBT 12.8 24.5 −47.6% 63.9 83.0 −23.1%
--------------------------------------------------------------------------------
% of net sales 7.7% 12.6% 9.9% 11.6%
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Earnings per share (EPS), (basic 0.13 0.18 −30.2% 0.50 0.59 −15.2%
and diluted), EUR
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Gross capital expenditure on 33.8 36.8 −8.1% 125.8 124.0 1.4%
non−current assets
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Gross capital expenditure,% of 20.2% 19.0% 19.4% 17.4%
net sales
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Cash flow after investments 25.2 16.8 50.0% 73.4 54.2 35.6%
--------------------------------------------------------------------------------
Invested capital at the end of 579.8 604.3 −4.1%
period
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Return on invested capital 16.5% 18.9%
(ROI),%
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Return on equity (ROE),% 14.7% 18.5%
--------------------------------------------------------------------------------
Net debt 206.9 239.4 −13.6%
--------------------------------------------------------------------------------
Net debt to EBITDA ratio 1.1x 1.1x
--------------------------------------------------------------------------------
Gearing,% 55.8% 65.8%
--------------------------------------------------------------------------------
Equity ratio,% 48.9% 44.2%
--------------------------------------------------------------------------------
Personnel at end of period 2,592 3,005 −13.7%
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1) EBITA is operating profit before amortisation and impairment of intangible
assets.
2) The non-recurring items include a non-taxable capital gain of EUR 10.1
million from the formation of Fortrent, a EUR 1.9 million loss from disposal of
Hungary and a EUR 1.5 million restructuring provision in Denmark.
* Retrospective application of amendment to IAS19 affecting Sweden and Norway
segments.
MAGNUS ROSÉN, RAMIRENT CEO:
“In 2013, against a background of challenging conditions in a number of our key
markets, we continued to develop the operational platform and balanced approach
to risk that we believe are fundamental to our future growth ambitions for the
business. In such conditions a focus on cash is always paramount and we are
pleased to report a substantial increase in cash flow of 35.6% compared to last
year. At the end of 2013, Ramirent held one of the strongest balance sheets in
the equipment rental industry with net debt to EBITDA 1.1x. Net sales decreased
by 4.2% at comparable exchange rates in 2013, adjusted for the transfer of the
operations in Russia and Ukraine to Fortrent as well as the divestment of our
Hungarian business. Our EBITA margin remained on par with the previous year at
14.2% (14.1%). Excluding non−recurring items the EBITA margin was 13.2%.
In the fourth quarter of 2013, the demand for equipment rental weakened in
Finland and Norway due to slower activity especially in the construction sector
and we were unable to reduce costs to match the lower demand. We have
intensified measures to strengthen profitability in these segments. The market
situation in Sweden remained healthy and we continued measures to improve our
operational efficiency. In Denmark, construction activity picked up, although
from low levels, and we continued to restructure operations to increase
profitability. In Europe Central market development was still weak but showed
signs of stabilisation. Our business performed well in the Baltic States, where
our capacity utilisation increased supported by high industrial activity.
Integration of the Fortrent joint venture operations was successfully completed
on 15 January 2014.
Throughout the year, we continued to work on our operational excellence and
there are significant results still to come. Ramirent is pursuing an EBITA
margin of at least 18% for all segments, which will deliver a 300 bps EBITA
margin improvement at Group level, from 14% in 2012 to 17% by the end of 2016.
Specific actions to reach the EBITA margin target will be implemented across
our countries during 2014. Integrated solutions provided to all customer
sectors and improved operational excellence through the common Ramirent
platform are our key measures to reach this goal. We will also continue to
improve pricing management, optimise our customer centre network, improve
capacity utilisation rates and further centralise sourcing.
Entering 2014, economic growth is expected to be modest and construction market
demand remains mixed in our core markets. We will maintain strict cost control
and capital expenditure is expected to be around the same level as in 2013.
Ramirent is well prepared to manage fluctuations in market conditions and
capture growth opportunities.
As our operational fundamentals have come a long way and we have balanced the
risk level, growth strategy returns into focus in 2014. We have set up a clear
growth strategy which includes pursuing outsourcing opportunities and selected
small− to mid−sized acquisitions as well as evaluating entry to new sectors and
geographies. Accelerated growth will be sought from defined growth pockets such
as energy, oil and gas and the public sector.”
MARKET OUTLOOK 2013
According to a forecast published by Euroconstruct in December 2013, the
Finnish construction market is expected to increase by 0.5% in 2014.
Residential construction is estimated to decline during this year as
construction companies have been cautious in new residential start-ups.
Activity in non-residential construction is expected to pick-up slightly
supported by gradually recovering commercial building. Construction of public
sector buildings is forecasted to increase in 2014. Renovation is estimated to
increase modestly. According to the Technical Research Centre of Finland (VTT),
equipment rental market in Finland is estimated to grow by 3.0% in 2014.
According to a forecast published by Euroconstruct in December 2013, the
Swedish construction market is expected to increase by 1.6% in 2014.
Residential construction is estimated to be the main growth driver.
Non-residential construction is expected to remain at the previous year's
level. Due to a continuously expanding and ageing building stock, renovation
will continue to grow also in 2014. Market activity in several industrial
sectors is expected to develop positively. According to European Rental
Association (ERA), equipment rental market in Sweden is estimated to grow by
2.3% in 2014.
Uncertainty in the Norwegian construction market has increased and the market
is levelling out, albeit at a high level. According to a forecast published by
Euroconstruct in December 2013, the Norwegian construction market is forecasted
to grow by 3.6% in 2014. Prognosesenteret expects residential start−ups to
decline in 2014 due to the general uncertainty in the economy. Market activity
in renovation is expected to remain favourable in all construction sectors. The
Norwegian government has introduced plans to improve transport infrastructure
which will support the equipment rental market. According to Statistics Norway,
investments in the oil and gas sector are forecasted to increase, which will
fuel demand for equipment rental. According to European Rental Association
(ERA), the equipment rental market in Norway is estimated to increase by 3.6%
in 2014. However, increased uncertainty in the construction sector may impact
negatively on the rental market in the first half of the year.
The construction market is estimated to recover in 2014. According to a
forecast published by Euroconstruct in December 2013, the Danish construction
market is expected to grow by 3.3% in 2014. Residential construction is
estimated to pick-up considerably, however from low levels. Market activity in
non-residential construction is expected to improve, mainly due to a gradual
upturn in general economic activity. Renovation is expected to increase
supported by demand from the public sector where repair needs remain high.
Infrastructure construction is forecasted to grow fuelled by new transport
infrastructure and energy investments. According to the European Rental
Association (ERA), the equipment rental market in Denmark is estimated to grow
by 1.9% in 2014.
According to a forecast published by Euroconstruct in December 2013, the
construction market in the Baltic States is expected to be slightly below last
year's level. The construction market is estimated to increase in Lithuania and
to decrease in Latvia and in Estonia. Residential construction is estimated to
grow supported by new building start-ups. Market activity in non-residential
construction is expected to improve slightly in 2014. The market in
infrastructure construction will weaken markedly due to a transition period in
EU funding.
According to a forecast published by Euroconstruct in December 2013, the
Russian construction market is estimated to grow by 2% in 2014. The equipment
rental market is estimated to grow more than construction. The market situation
in Ukraine is likely to remain challenging. The market outlook for Russia is
positive over the long term. Construction in Russia continues to be strongly
focused on new construction.
Construction activity is expected to pick up in Poland especially within
residential and infrastructure construction. The market situation in renovation
is also expected to improve. The Polish construction market is estimated to
grow by 3.5% according to a forecast published by Euroconstruct in December
2013. New power plant projects in the energy sector will support the demand in
2014. In the Czech Republic, all construction sectors are expected to decline
in 2014. The Slovakian construction market is supported by an improving outlook
for infrastructure construction. According to the European Rental Association
(ERA), the equipment rental market in Poland is expected to increase by 3.6% in
2014.
PROPOSAL OF THE BOARD ON THE USE OF DISTRIBUTABLE FUNDS
The parent company's distributable equity on 31 December 2013 amounted to EUR
373,000,578.89 of which the net profit from the financial year 2013 is EUR
5,050,916.28.
The Board of Directors proposes to the Annual General Meeting 2014 that an
ordinary dividend of EUR 0.37 (0.34) per share be paid for the financial year
2013. The proposed dividend will be paid to shareholders registered in
Ramirent's shareholder register maintained by Euroclear Finland Ltd on the
record date for dividend payment 31 March 2014. The Board of Directors proposes
that the dividend be paid on 11 April 2014.
The Board of Directors also proposes to the Annual General Meeting 2014 that
the Board of Directors be authorised to decide at its discretion on the payment
of additional dividend up to the amount of EUR 0.63 per share.
ANNUAL GENERAL MEETING 2014
Ramirent Plc's Annual General Meeting will be held in Scandic Marina Congress
Center, Fennia I, at the address of Katajanokanlaituri 6, 00160 Helsinki,
Finland on Wednesday 26 March 2014 at 4:30 p.m.The stock exchange release to
convene the AGM 2014 will be published on the Company's website on 28 February
2014. Ramirent Plc's Annual Report will be published on the Company's website
on 28 February 2014.
CORPORATE GOVERNANCE STATEMENT 2013 AND REMUNERATION STATEMENT 2013
Ramirent complies with the Finnish Corporate Governance Code 2010 approved by
the Board of the Securities Market Association. Ramirent has published a
Corporate Governance Statement based on the recommendation 54 and a
Remuneration Statement based on the recommendation 47 of the Code, which are
attached to this release in pdf format and can be reviewed on the website of
Ramirent at www.ramirent.com.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged on Monday 17
February 2014 at 11:00 a.m. Finnish time at the Opera Terrace, The Royal Opera
House, Karl XII:s torg, 111 86 Stockholm, Sweden.
WEBCAST AND CONFERENCE CALL
You can participate in the analyst briefing on Monday 17 February 2014 at 11:00
a.m. Finnish time (EET) through a live webcast at www.ramirent.com and
conference call. Dial−in numbers are: +358 9 8171 04 69 (FI), +46 8 5055 6487
(SE), +44 20 7660 2078 (UK) and +1 855 7161 592 (US). Recording of the webcast
will be available at www.ramirent.com later the same day.
FINANCIAL CALENDAR UNTIL END OF 2014
Ramirent observes a silent period during 21 days prior to the publication of
annual and interim financial results.
Annual Report 2013
28 February 2014
Annual General Meeting
26 March 2014
Interim report January-March
8 May 2014 at 9:00 a.m.
Interim report January-June
29 July 2014 at 9:00 a.m.
Interim report January-September
6 November 2014 at 9:00 a.m
The financial information in this stock exchange release has not been audited.
Vantaa, 17 February 2014
RAMIRENT PLC
Board of Directors
FURTHER INFORMATION
Group President and CEO Magnus Rosén
tel.+358 20 750 2845, magnus.rosen@ramirent.com
CFO and EVP Corporate Functions Jonas Söderkvist
tel.+358 20 750 3248, jonas.soderkvist@ramirent.com
SVP, Marketing, Communications and IR Franciska Janzon
tel.+358 20 750 2859, franciska.janzon@ramirent.com
DISTRIBUTION
NASDAQ OMX Helsinki
Main news media
www.ramirent.com
Ramirent is a leading equipment rental group delivering Dynamic Rental
Solutions™ that simplify business. We serve a broad range of customers,
including construction and process industries, shipyards, the public sector and
households. In 2013, the Group's net sales totalled EUR 647 million. The Group
has 2,600 employees at 304 customer centres in 10 countries in the Nordic
countries and in Central and Eastern Europe. Ramirent is listed on the NASDAQ
OMX Helsinki Ltd.
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