2014-08-22 09:00:00 CEST
2014-08-22 09:00:03 CEST
REGULATED INFORMATION
Vaahto Group Plc Oyj - Interim report (Q1 and Q3)
VAAHTO GROUP INTERIM REPORT FROM 1 JANUARY TO 30 JUNE 2014
Helsinki, Finland, 2014-08-22 09:00 CEST (GLOBE NEWSWIRE) -- VAAHTO GROUP PLC
OYJ INTERIM REPORT 22.8.2014 AT 10.00
VAAHTO GROUP INTERIM REPORT FROM 1 JANUARY TO 30 JUNE 2014
Turnover from Vaahto Group's continuing operations from 1 January to 30 June
2014 was 8.8 million euros (15.7 M euros) with an operating loss of 0.2 million
euros (profit 0.3 M euros). The order backlog of the continuing operations on
30 June 2014 was 9.7 M euros (16.4 M euros). Turnover and order backlog stayed
behind the reference period due to market situation which remained challenging.
Global economy continued to reflect on customers' investment decisions,
postponing them. However, the order backlog grew during the first half of the
year and the number of offers has remained on a good level.
In the previous Interim Management Statement, the operating profit of the
Vaahto Group's continuing operations was expected to be positive for the fiscal
year 2014. During the first half of the year, however, the profit target was
not entirely met. The company lowered the 2014 operating profit estimate in the
stock exchange release published on 31 July 2014. The latest management
estimation is that the operating profit of the Group's continuing operations
will be negative for the fiscal year 2014.
Business reporting
In February 2014, Vaahto Group announced to divest or discontinue operations of
the unprofitable Paper Technology business in its entirety and to focus on the
Process Technology business, in accordance to the group strategy. In the
financial statements for 2013, the Service Unit of the Vaahto Paper Technology
Ltd. was presented as discontinued operations as were the remaining parts of
the Projects Unit, which was sold during the fiscal period of 2013.
On 30 June 2014, the Board of Directors resolved to present AP-Tela Oy as
discontinued operations in the interim report. Thus, the entire Vaahto Paper
Technology business has been classified as discontinued operations. From now
on, Vaahto Group will report one segment which consists of Vaahto Process
Technology business.
The effect of discontinued operations on profit/loss is shown on its own line,
separately from continuing operations. Earlier, the group's overhead costs have
been allocated also to operations now discontinued. As the costs will no longer
be allocated to discontinued operations, they affect solely continuing
operations. As the volume of the continuing operations reduces, the relative
effect of these costs has increased. The group is currently adjusting its
administrative costs, especially regarding the group's ICT.
Vaahto Process Technology
Vaahto Process Technology business includes all of the company's continuing
operations. Turnover of the business from 1 January to 30 June 2014 was 8.8
million euros (15.7 M euros) with an operating loss of 0.2 million euros
(profit 0.3 M euros).
Vaahto Process Technology business is divided into two business areas: Japrotek
Vessels and Stelzer Mixing Technology. Japrotek Vessels designs and
manufactures demanding vessel structures for process industry as well as
complete vessel and agitator combinations. Stelzer Mixing Technology focuses on
the mixing technology for process industry and related maintenance services.
For Japrotek Vessels business area, the year started in tough market situation
that improved slightly during spring as the customers began making investment
decisions for their projects. In May, Japrotek Vessels received new orders, the
most significant of which was a delivery to Valmet AB in Sweden consisting of
tanks and digester. The number of offers remains on a good level and increased
during the period. Signs of decrease in demand have not been detected although
some customers postponed their investment decisions until the end of the summer
vacation period.
For Stelzer Mixing Technology business area, the year started well but the
market situation worsened in April. The traditional backbone of the business,
food industry, began postponing investments and the markets in China slowed
down. The situation in Ukraine and weakening value of the Russian ruble also
reflected on the business volume. Market situation started improving only by
the end of June. The number of offers, however, remains on a good level and the
market position is unchanged.
As resolved in February, the Group focuses on the Process Technology business.
The deployment of the strategy has begun and continues in the latter half of
the year. Japrotek Vessels will increase its focus on demanding process
industry projects where vessel and agitator combinations are complemented with
know-how of the customers' process model. Stelzer Mixing Technology will focus
on industrial mixing products and seek strong growth in new market areas as
well as industrial segments. Japrotek Vessels will support its business with
the mixing know-how of Stelzer Mixing Technology. Japrotek and Stelzer will
both specialize in their own specific product categories that complement each
other, thus gaining synergy in production. This will both streamline the
production and increase the volume by utilizing the Group's existing resources.
Financing and investments
During the period, the cash flow from the Group's business operations was 0.8
million euros (-0.4 M euros) and the cash flow from investments was -0.2
million euros (1.0 M euros). Interest-bearing liabilities amounted to 12.2
million euros (18.5 M euros). The Group's consolidated balance sheet total was
19.3 million euros (23.6 M euros).
Group's capital expenditure during the period was 0.2 million euros (0.2 M
euros).
After the financing negotiations, finished in December 2013, the Group was
provided with a grace period for loans from financial institutions for 2014.
Additionally, conditions of the financing agreement for 2014 were met during
the first quarter and the Group received a debt relief totaling 3 million
euros; 2.7 million euros for the parent company and 0.3 million euros for
Vaahto Paper Technology Ltd. For financial restructuring, negotiations with the
Group's main financiers are scheduled for fall 2014.
Directed share issue
On 10 March 2014, the board of directors of Vaahto Group Plc resolved to issue
up to 2,000,000 new shares in a directed share issue based on an authorization
by the general meeting of shareholders on 10 April 2013.
In the share issue, the 10 largest shareholders had a subscription right. The
basis for the deviation from the pre-emptive subscription right was, according
to the resolution to issue shares, the strengthening of the company's financial
standing and the securing of the continuance of the company's operations. In
the share issue, Hannu Laakkonen subscribed for 1,000,000 shares and Mikko
Laakkonen subscribed for 1,000,000 shares. The subscription price per share for
all the shares was 0.52 euro. The subscription price was determined on the
basis of bids received by the company.
The issued new shares have been registered with the Trade Register on 31 March
2014. Subsequent to the share issue, the total number of shares in the company
and the number of votes carried by the shares is 5,977,360. The issued new
shares represent 33.5% of the total amount of shares of the company. The issued
new shares carry shareholder rights in the company from the date of
registration with the Trade Register.
The subscribers have given the company an undertaking not to sell, transfer,
donate, or otherwise dispose of the shares issued in the share issue within 180
calendar days from the registering of the shares with the trade register. The
company will apply for the listing of the shares at the latest within one year
from the issuance of the shares. In connection with the application, the
company will publish a listing prospectus in accordance with the Finnish
Securities Market Act and the EU Prospectus Regulation.
Equity
On 30 June 2014, the Group has classified AP-Tela Oy as discontinued
operations. Also the liquidation processes of the discontinued operations
previously classified have progressed. Concerning these, the Group has
specified its estimate on the appreciation of the balance sheet items as well
as cost related to divestments and written off an additional 1.8 million euros.
The cost will be reported in the operating profit of the discontinued
operations.
In the financial statements 2013, the equity of the parent company Vaahto Group
Plc Oyj was negative by 4.3 million euros. The issue of the new shares in the
first quarter of 2014 as well as the waiver of loans had a positive impact on
the equity of the parent company. Along with the classification of AP-Tela Oy
as discontinued operations, the parent company impaired the shares of AP-Tela,
which lowered the equity of the parent company. On 30 June 2014, the equity was
negative by 4,6 million euros.
Authorization to decide on a share issue
On 15 April 2014, the Annual General Meeting authorized the Board to decide on
an issue of new shares as well as option rights and other special rights
entitling to shares referred to in Chapter 10 Section 1 of the Finnish
Companies Act in one or several lots. The number of new shares issued would be
no more than 10,000,000, including shares to be issued based on the special
rights.
The authorization is in effect until 31 May 2015, unless the General Meeting
amends or cancels the authorization prior to that.
Risks
The liquidity of the Group remains tight and includes significant risks.
Sufficiency of the working capital is followed actively with cash flow
forecasts. For the continuity of the operations, it is important that in 2014,
the company reaches the result and profitability objectives set in the
management forecasts. Negotiations with the Group's main financiers on
financial restructuring are scheduled for fall 2014.
Negotiations with the financiers, planned divestments of the Paper Technology
business together with the authorization of the Board of Directors to decide on
a share issue if used, will support the improving of the Group's financial
position and liquidity.
Personnel
During the period, the average number of personnel in the Group was 225 (275).
Vesa Alatalo was appointed as CEO from 16 January 2014 onward. Ari Viinikkala
served as CEO until 15 January 2014.
Outlook for the fiscal year 2014
Global economy and business fluctuation of customer industries have a direct
impact on the demand of the Vaahto Group's products as well as its financial
situation. The order backlog grew during spring and markets are expected to be
recovering, although slower than anticipated in the beginning of the year.
In the tough market situation the Group businesses have focused on their key
segments, where the customer receives added value through the Group's strong
process know-how. Customers' willingness to invest increased towards the end of
the first half, which will have a positive impact on the Vaahto Process
Technology business. The number of offers has increased and particularly
Japrotek Vessels has received new orders. This trend is expected to continue
steadily during the second half.
In accordance with the new strategy, the Group will focus on process industry
and the deployment of the strategy is currently ongoing. Focusing will become
more visible during fall. Streamlining of operations will also continue. During
the period, the Group's cost structure has been under scrutiny. The effects of
the changes in the cost structure are expected to become visible during the
second half. However, the operating profit of the Vaahto Group's continuing
operations is expected to be negative for the fiscal year 2014.
Events after the period
The CEO of Vaahto Group Plc Oyj Vesa Alatalo is leaving the company on 31
August 2014 to become Managing Director of Oy SKF Ab. The Board of Directors
appointed M.Sc. (Tech.) Topi Karppanen as acting CEO starting on 1 September
2014. Karppanen has been a member of the Board of Vaahto Group Plc Oyj since
2010.
Consolidated Statement of
Comprehensive Income, IFRS
1 000 EUR Interim Interim Interim Interim Annual
Report Report Report Report Report
1.1.-30.6. 1.1.-30.6. 1.4.-30.6. 1.4.-30.6. 1.1.-31.12.
2014 2013 2014 2013 2013
6 months 6 months 3 months 3 months 12 months
NET TURNOVER 8 783 15 681 4 407 7 570 32 165
Change in finished 47 -1 031 63 220 -1 524
goods and work in
progress
Other operating 189 3 1 2 22
income
Material and -3 213 -7 667 -1 796 -4 342 -16 617
services
Employee benefit -4 011 -4 039 -2 046 -2 057 -7 911
expenses
Depreciations -128 -273 -41 -72 -393
Other operating -1 909 -2 367 -914 -1 234 -4 313
expenses
OPERATING PROFIT OR -242 307 -326 87 1 428
LOSS
Financial income 3 026 80 341 64 1 107
Financial expenses -815 -503 -559 -279 -1 087
PROFIT OR LOSS 1 969 -116 -545 -128 1 448
BEFORE TAXES
Tax on income from -67 -80 -23 -54 -586
operations
PROFIT OR LOSS FROM 1 902 -195 -567 -182 862
THE CONTINUING
OPERATIONS
DISCONTINUED
OPERATIONS
Profit or loss from -2 076 -1 912 -2 285 -729 -4 952
the discontinued
operations
PROFIT OR LOSS -174 -2 107 -2 852 -911 -4 090
OTHER COMPREHENSIVE
INCOME
Translation -5 -4 0 -3 -10
differences
OTHER COMPREHENSIVE -5 -4 0 -3 -10
INCOME, NET OF TAX
TOTAL COMPREHENSIVE -179 -2 112 -2 852 -914 -4 099
INCOME
Earnings per share calculated on profit attributable to equity holders of the
parent
EPS undiluted, 0,38 -0,05 -0,11 -0,05 0,22
euros/share,
continuing
operations
EPS diluted, 0,38 -0,05 -0,11 -0,05 0,22
euros/share,
continuing
operations
EPS undiluted, -0,42 -0,48 -0,46 -0,18 -1,24
euros/share,
discontinued
operations
EPS diluted, -0,42 -0,48 -0,46 -0,18 -1,24
euros/share,
discontinued
operations
EPS undiluted, -0,04 -0,53 -0,57 -0,23 -1,03
euros/share
EPS diluted, -0,04 -0,53 -0,57 -0,23 -1,03
euros/share
Average number of
shares
-undiluted 4 977 360 3 977 360 4 977 360 3 977 360 3 977 360
-diluted 4 977 360 3 977 360 4 977 360 3 977 360 3 977 360
Consolidated Balance Sheet, IFRS
1 000 EUR Interim Annual
Report Report
30.6.2014 31.12.2013
ASSETS
NON-CURRENT ASSETS
Intangible assets 30 60
Goodwill 1 583 1 692
Tangible assets 2 264 5 241
Shares in affiliated companies 0 74
Available for sale investments 35 35
NON-CURRENT ASSETS 3 912 7 102
CURRENT ASSETS
Inventories 2 640 2 788
Trade receivables and other receivables 4 160 6 992
Current receivables for revenue recognized in part 216 1 727
prior to project completion
Cash and bank 96 129
CURRENT ASSETS 7 113 11 637
NON-CURRENT ASSETS HELD FOR SALE 8 291 4 886
ASSETS 19 316 23 624
EQUITY AND LIABILITIES
SHAREHOLDER'S EQUITY
Share capital 2 872 2 872
Share premium account 6 6
Fair value reserve and other reserves 6 060 5 063
Translation differences 51 48
Retained earnings -14 433 -14 251
SHAREHOLDER'S EQUITY -5 444 -6 262
NON-CURRENT LIABILITIES
Deferred tax liability 632 649
Long-term liabilities, interest-bearing 5 287 11 763
Non-current provisions 262 362
NON-CURRENT LIABILITIES 6 181 12 774
CURRENT LIABILITIES
Short-term liabilities, interest-bearing 6 915 6 758
Trade payables and other liabilities 6 555 7 787
Tax liability, income tax 232 200
CURRENT LIABILITIES 13 702 14 745
LIABILITIES HELD FOR SALE
Interest-bearing liabilities held for sale 90 0
Interest-free liabilities held for sale 4 788 2 367
LIABILITIES HELD FOR SALE 4 878 2 367
EQUITY AND LIABILITIES 19 316 23 624
Key Figures, IFRS
1 000 EUR Interim Report Interim Report Annual Report
1.1.-30.6.2014 1.1.-30.6.2013 1.1.-31.12.2013
6 months 6 months 12 months
The business indicators
Operating profit or loss, -242 307 1 428
continuing operations
% of turnover -2,8 2,0 -93,7
Profit or loss before taxes, 1 969 -116 1 448
continuing operations
% of turnover 22,4 -0,7 101,4
Profit or loss from the -2 076 -1 912 -4 952
discontinued operations
Earnings per share calculated -174 -2 107 -4 090
on profit attributable to
equity holders of the parent
% of turnover -0,7 -4,8 -6,8
Return on equity (ROE), % neg neg neg
Return on investment (ROI), % neg neg neg
Earnings per share EUR -0,04 -0,53 -1,03
Shareholders' equity per share neg neg neg
EUR
Equity ratio, % neg neg neg
Gearing na na na
Gross investments in fixed 181 166 869
assets
Order book, continuing 9 693 16 361 5 793
operations
Total average number of 225 275 256
personnel
Consolidated Flow of Funds
Statement, IFRS
1 000 EUR Interim Report Interim Report Annual Report
1.1.-30.6.2014 1.1.-30.6.2013 1.1.-31.12.2013
6 months 6 months 12 months
Profit or loss before taxes -174 -2 134 -4 090
Adjustments 80 340 1 383
Change in working capital 1 605 1 671 1 418
Financial income and expenses -671 -294 -1 070
and taxes
Flow of funds from operations 840 -417 -2 359
Investments in tangible and -181 -166 -869
intangible assets
Income from sales of tangible 0 1 188 1 188
and intangible assets
Flow of funds from investments -181 1 022 320
Share issue 1 040 0 0
Increase of the 221 27 3 673
interest-bearing liabilities
Decrease of the -1 953 -891 -1 904
interest-bearing liabilities
Flow of funds from financial -692 -865 1 769
items
Change of liquid funds total -33 -260 -271
Change of liquid funds from -488 522 235
discontinued operations
Statement of
Changes in
Shareholders'
Equity, IFRS
1 000 EUR
Changes in Share Share Unrestri Reserv Translati Retaine Total
shareholders' capita premium cted e fund on d
equity l account equity differenc earning
1.1.-30.6.2014 reserve es s
Shareholders' 2 872 6 3 068 1 995 48 -14 251 -6 262
equity in the
beginning of
the period
Comprehensive
income
Profit or loss -174 -174
for the period
Translation 3 -8 -5
differences
Total 0 0 0 0 3 -182 -179
comprehensive
income
Transactions
with owners
Share issue 1 040 1 040
Transaction -32 -32
costs for
equity
Deferred taxes 6 6
due to period
changes
Effect of change -17 -17
in tax rate
Transactions 0 0 997 0 0 0 997
with owners
total
Shareholders' 2 872 6 4 065 1 995 51 -14 433 -5 444
equity at the
end of the
fiscal period
Changes in Share Share Unrestri Reserv Translati Retaine Total
shareholders' capita premium cted e fund on d
equity l account equity differenc earning
1.1.-30.6.2013 reserve es s
Shareholders' 2 872 6 3 068 1 995 56 -10 160 -2 163
equity in the
beginning of
the period
Comprehensive
income
Profit or loss -2 107 -2 107
for the period
Translation -1 -4 -4
differences
Total 0 0 0 0 -1 -2 111 -2 112
comprehensive
income
Shareholders' 2 872 6 3 068 1 995 56 -12 271 -4 275
equity at the
end of the
fiscal period
Securities and Responsibilities
1 000 EUR Interim Annual
Report Report 30.6.2014 31.12.2013
Granted securities
Debt secured by real estate and corporate mortgages
Loans from financial institutions and pension loans 6 051 11 092
Other loans 2 000 3 350
Credit limits in use 3 698 3 872
Total 11 749 18 313
Loans from financial institutions are secured by real estate and
corporate mortgages and share pledges. Other loans are
secured by share pledges and bank deposits. Share pledges
are the share capitals of Vaahto Group Plc Oyj's subsidiaries.
Mortgages granted to secure loans and bank
guarantees
Real estate mortgages 2 543 2 543
Corporate mortgages 4 928 4 928
Total 7 471 7 471
Mortgages granted to secure the bank guarantee limit
Corporate mortgages granted to secure the bank 8 235 8 235
guarantee limit
Total 8 235 8 235
Other granted securities for own behalf
Deposits 1 483 1 483
Total 1 483 1 483
Other granted securities
Vaahto Group Plc Oyj has granted as securities the
share capitals of its subsidiaries Vaahto Paper
Technology Ltd, Japrotek Oy Ab, AP-Tela Oy and
Stelzer Rührtechnik International GmbH.
Contingent liabilities and other liabilities
Bank guarantees
Bank guarantee limits total 4 990 6 163
Bank guarantee limits, used 4 652 4 598
Operating lease agreements
Within a year 185 266
More than one year but no more than 5 years 234 276
Total 418 542
Contracts other than financial leasing contracts consist
mainly of short-term leasing contracts for IT equipment
and software. The terms and conditions are of leasing
agreements correspond to those of normal operational
leasing agreements.
Arrangements according to IFRIC 4
The Group has no arrangements meant in IFRIC 4.
Other rent agreements
The Group has rented production and office buildings for
its use with various types of terminable rental agreements.
Rent liabilities
Within a year 792 792
More than one year but no more than 5 years 3 166 3 166
Later 1 885 1 885
Total 5 843 5 843
Annual rent payments under lease agreements that are in
effect until further notice total 454 thousand euros.
Other contingent liabilities
Granted guarantees to customers and creditors
Guarantees granted to secure bank guarantee limit 4 990 4 110
Guarantees granted to secure bank loans 2 552 3 580
Guarantees granted to secure guarantee insurances 2 175 2 175
Guarantees granted to secure rent guarantees 400 400
Others guarantees 427 427
Total 10 544 10 692
Discontinued Operations
1 000 EUR Interim Report Interim Report Annual Report
1.1. - 30.6.2014 1.1. - 30.6.2013 1.1.-31.12.2013
6 months 6 months 12 months
Profit or loss of the
discontinued operations
Turnover 4 529 6 294 12 115
Other income 119 295 463
Expenses -4 991 -7 918 -15 222
Amortizations, Sales gains -1 593 -171 -1 500
and losses
Depreciations -162 -518 -880
Profit or loss before taxes -2 097 -2 018 -5 023
Taxes 21 106 71
Profit or loss from the -2 076 -1 912 -4 952
discontinued operations
Flow of funds from the
discontinued operations
Flow of funds from -465 -615 -902
operations
Flow of funds from 0 1 188 1 188
investments
Flow of funds from -23 -52 -52
financial items
Flow of funds total -488 522 235
Non-current assets held for 30.6.2014 30.6.2013 31.12.2013
sale of discontinued
operations
Intangible assets 12 1 4
Tangible assets 5 140 0 2 250
Inventories 789 708 434
Receivables 2 350 2 170 2 197
Assets total 8 291 2 878 4 886
Liabilities of disposal 30.6.2014 30.6.2013 31.12.2013
group held for sale of
discontinued operations
Non-current liabilities 43 0 0
held for sale,
interest-bearing
Current liabilities held 47 0 0
for sale, interest-bearing
Current liabilities held 4 788 1 348 2 367
for sale, interest-free
Liabilities total 4 878 1 348 2 367
Figures are in thousand euros unless stated otherwise. Figures are unaudited.
Notes required by IAS 34
Accounting principles
The interim report was drawn up according to the same accounting principles and
calculation methods as the
previous financial statement, for the fiscal period that ended on December 31,
2013.
Dividends paid
During the period under
review, Vaahto Group Plc
Oyj paid no dividends.
In Lahti on 22 August 2014
VAAHTO GROUP PLC OYJ
The Board of Directors
Vaahto Group is a globally operating high technology company serving process
industry.
For additional information:
Vesa Alatalo
CEO, Vaahto Group Plc Oyj
Tel. +358 40 726 8923
© 2024 Nasdaq, Inc. All Rights Reserved |