2013-05-23 08:00:02 CEST
2013-05-23 08:00:06 CEST
BIRTINGARSKYLDAR UPPLÝSNINGAR
Efore - Interim report (Q1 and Q3)
EFORE GROUP INTERIM REPORT NOVEMBER 1, 2012 – APRIL 30, 2013 (6 MONTHS)
Espoo, Finland, 2013-05-23 08:00 CEST (GLOBE NEWSWIRE) -- EFORE PLC Interim
Report May 23, 2013 9 a.m.
Period under the review in brief (November 1, 2012 — April 30, 2013)
- Net sales totaled EUR 28.6 million (EUR 34.1 million)
- Results from operating activities amounted to EUR -3.4 million (EUR -2.2
million)
- Results from operating activities without one-time items were EUR -3.1
million (EUR -2.3 million)
- Profit before taxes was EUR -3.5 million (EUR -2.7 million)
- Profit for the period was EUR -3.4 million (EUR -2.4 million)
- Earnings per share were EUR -0.09 (EUR -0.06)
Second quarter in brief (February 1, 2013 — April 30, 2013)
- Net sales totaled EUR 14.8 million (EUR 19.3 million)
- Results from operating activities amounted to EUR -1.9 million (EUR -1.3
million)
- Results from operating activities without one-time items were EUR -1.6
million (EUR -1.4 million)
- Profit before taxes was EUR -2.1 million (EUR -1.5 million)
- Profit for the period was EUR -2.1 million (EUR -1.3 million)
- Earnings per share were EUR -0.05 (EUR -0.03)
Vesa Vähämöttönen, Efore's President and CEO:
“In March started profitability and efficiency improvement measures are
progressing well and after their full implementation, we estimate to reach
positive results from operating activities with approximately EUR 15 million
net sales level per quarter. We also expect stronger rest of the year than
first two quarters.
Demand of telecom sector continued lower than forecasted also during the second
quarter and due to this net sales and result of operating activities were lower
than anticipated. Industrial sector sales were on expected level.”
NOVEMBER - APRIL NET SALES AND FINANCIAL DEVELOPMENT
Net sales for the period under the review totaled EUR 28.6 million (EUR 34.1
million). Net sales by customer group were as follows: Telecommunication 70.6 %
(77.5 %) and industrial electronics 29.4 % (22.5 %). Geographically Efore's
deliveries were to the following areas: EMEA EUR 15.8 million (EUR 17.0
million), APAC EUR 7.6 million (EUR 12.1 million), Finland EUR 4.9 million (EUR
4.4 million) and the Americas EUR 0.3 million (EUR 0.6 million) which totaled
EUR 28.6 million (EUR 34.1 million). Final geographical distribution of Efore's
products deviates from the before mentioned as Efore's customers distribute
further the products from the logistics centres to other markets.
The results from operating activities amounted to EUR -3.4 million (EUR -2.2
million).
Results from operating activities include one-time items of approximately EUR
0.3 million related to the profitability and efficiency improvement program.
NET SALES AND FINANCIAL DEVELOPMENT FOR THE SECOND QUARTER
Net sales for the second quarter totaled EUR 14.8 million (EUR 19.3 million).
Net sales by customer group were as follows: Telecommunication 72.7 % (80.9 %)
and industrial electronics 27.3 % (19.1 %). Geographically Efore's deliveries
were to the following areas: EMEA EUR 8.1 million (EUR 10.5 million), APAC EUR
4.2 million (EUR 6.6 million), Finland EUR 2.3 million (EUR 2.0 million) and
the Americas EUR 0.2 million (EUR 0.3 million) which totaled EUR 14.8 million
(EUR 19.3 million). Final geographical distribution of Efore's products
deviates from the before mentioned as Efore's customers distribute further the
products from the logistics centres to other markets.
The results from operating activities amounted to EUR -1,9 million (EUR -1.3
million).
Results from operating activities include one-time items of approximately EUR
0.3 million related to the profitability and efficiency improvement program.
BUSINESS DEVELOPMENT
Investment in product and technology development during the period under review
was EUR 3.6 million (EUR 3.9 million) representing 12.7 % (11.3 %) of net
sales. Clearly majority of this amount was spent in telecom and industrial
sectors as EV power product family is mainly ready for the market demand.
Demand of telecom sector continued lower than forecasted also during the second
quarter and due to this net sales and result of operating activities were lower
than anticipated. Industrial sector sales were on expected level.
Efore Plc continues actions according to its strategy targeting to substantial
growth in industrial sector.
Efore started a profitability and efficiency improvement program in March 2013
targeting to annual cost base reduction of at least EUR 1.8 million. When the
profitability and efficiency improvement program and other measures have been
implemented, the company estimates to reach positive results from operating
activities with approximately EUR 15 million net sales level per quarter.
INVESTMENTS
Group investments in fixed assets during the period under review amounted to
EUR 1.2 million (EUR 1.2 million) of which product development costs were EUR
0.1 million.
At the end of the period under review capitalized product development costs
amounted to EUR 0.6 million (EUR 0.9 million).
FINANCIAL POSITION
The Group's financial position during the period under review was good.
Interest-bearing liabilities exceeded the consolidated interest-bearing cash
reserves by EUR 0.7 million (EUR -0.8 million) at the end of the period under
review. The consolidated net financial expenses were EUR 0.1 million (EUR
0.5 million). The cash flow from business operations was EUR -1.8 million (EUR
0.2 million). The cash flow after investments was EUR -2.4 million (EUR -0.9
million).
The Group's solvency ratio was 39.8 % (44.5 %) and the gearing was 3.8 % (-3.9
%).
Liquid assets excluding undrawn credit facilities totaled EUR 7.4 million (EUR
7.6 million) at the end of the period under review. The balance sheet total
was EUR 43.6 million (EUR 46.3 million).
PERSONNEL
The number of the Group's own personnel including temporary personnel averaged
789 (870) during the period under review and at the end of the period under
review it was 787 (939).
Efore's personnel negotiations in Finland initiated in March 2013, have been
concluded on April 22, 2013. As a result of the negotiations, the total
reduction in personnel is globally 37 white-collar employees of which 7 in
Finland.
SHARES, SHARE CAPITAL AND SHAREHOLDERS
The total number of Efore Plc shares at the end of the period under review was
42.529.648 and the registered share capital was EUR 15.000.000.
At the end of the period under review the number of the Group's own shares was
1.218.544. In addition to this Efore Management Oy, a company belonging to
Efore group owned 2.358.242 pcs of Efore shares.
The highest share price during the period under review was EUR 0.80 and the
lowest price was EUR 0.66. The average price during the period under review was
EUR 0.70 and the closing price was EUR 0.70. The market capitalization
calculated at the final trading price during the period under review was EUR
27.3 million.
The total number of Efore shares traded on the Nasdaq OMX Helsinki during the
period under review was 5.1 million and their turnover value was EUR 3.6
million. This accounted for 12.2 % of the total number of shares. The number
of shareholders totaled 3061 (3332) at the end of the period under review.
FLAGGING NOTIFICATIONS
Sievi Capital Oyj's share of the total number of shares and voting rights in
Efore Plc exceeded 10 per cent on April 12, 2013.
ACCOUNTING POLICIES
The report has been drawn up in accordance with IAS 34 Standard on Interim
Financial Reporting and the Group's accounting principles presented in the 2012
annual report. The information in this release is unaudited.
All the figures in the report have been rounded up/down, for which reason the
total of the individual figures when added together may be different from the
total shown. In addition, Efore Plc has adopted new and or amended
IFRS-standards that have been presented in the previous Financial Statements.
These changes have no any major effect on the Interim Report.
SHORT-TERM RISKS AND FACTORS OF UNCERTAINTY
The market typical fluctuation in demand can cause rapid changes in Efore's
business. The most significant business risks are related to the success of
key customers in their markets and to Efore's delivery capability for the key
customers.
Progress of the EV power electronics projects depends on the customers' own
project schedules and the establishment of the whole market.
It has been recognized that global economic development may have an effect on
Efore's business environment
A more comprehensive report on risk management is presented on the company's
web-sites.
OUTLOOK
Long-term demand of wireless network equipment is expected to grow. However,
due to the short-term demand fluctuations and recent financial results Efore
started the profitability and efficiency improvement program in March 2013. The
effects of the profitability and efficiency improvement program can be fully
seen by the end of 2013.
Industrial sector offers several growth areas and Efore continues to expand its
expertise and presence in these markets.
FINANCIAL ESTIMATE FOR THE FISCAL YEAR 2013
The company estimates its net sales for fiscal year 2013 (14 months) to be
nearly on the same level with the fiscal year 2012 (12 months) as announced on
May 14, 2013.
TABLES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million Feb./13- Feb./12- Nov./12- Nov./11- Nov./11-
Apr./13 Apr./ 12 Apr./ 13 Apr./ 12 Oct./12
3 months 3 months 6 months 6 months 12 months
Net sales 14,8 19,3 28,6 34,1 78,1
Change in inventories of
finished goods and work in -0,7 0,7 0,8 1,3 2,3
progress
Other operating income 0,1 0,1 0,1 0,5 0,6
Materials and services -10,0 -14,7 -21,0 -25,2 -55,9
Employee benefits expenses -3,7 -4,0 -7,2 -7,5 -15,9
Depreciation -0,5 -0,8 -1,1 -1,7 -3,0
Other operating expenses -1,8 -2,0 -3,6 -3,8 -8,8
RESULTS FROM OPERATING -1,9 -1,3 -3,4 -2,2 -2,6
ACTIVITIES
% net sales -12,6 -7,0 -12,0 -6,4 -3,3
Financing income 0,1 0,1 0,6 0,5 1,7
Financing expenses -0,3 -0,3 -0,7 -1,0 -2,1
RESULT BEFORE TAX -2,1 -1,5 -3,5 -2,7 -3,0
% net sales -13,9 -7,6 -12,3 -7,9 -3,9
Tax on income from operations 0,0 0,1 0,1 0,3 0,7
RESULT FOR THE PERIOD -2,1 -1,3 -3,4 -2,4 -2,3
OTHER COMPREHENSIVE INCOME:
Items that may be reclassified subsequently to
profit or loss
Translation differences 0,6 0,0 0,0 1,0 1,4
Total comprehensive income -1,5 -1,3 -3,3 -1,3 -0,9
NET PROFITT/lOSS ATTRIBUTABLE
To equity holders of the -2,0 -1,3 -3,3 -2,3 -2,3
parent
To non-controlling interest 0,0 0,0 0,0 0,0 -0,1
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
Equity holders of the parent -1,4 -1,3 -3,3 -1,3 -0,9
Non-controlling interest 0,0 0,0 0,0 0,0 -0,1
EARNINGS PER SHARE CALCULATED
ON PROFIT ATTRIBUTABLE TO
EQUITY HOLDERS OF THE
PARENT:
Earnings per share, basic,eur -0,05 -0,03 -0,09 -0,06 -0,06
Earnings per share, diluted, -0,05 -0,03 -0,09 -0,06 -0,06
eur
INFORMATION ABOUT Feb./13- Feb./12- Nov./12- Nov./11- Nov./11-
GEOGRAPHICAL
AREAS, EUR million Apr./13 Apr./ 12 Apr./ 13 Apr./ 12 Oct./12
3 months 3 months 6 months 6 months 12 months
Americas 0,2 0,3 0,3 0,6 1,3
EMEA 8,1 10,5 15,8 17,0 42,0
FINLAND 2,3 2,0 4,9 4,4 11,1
APAC 4,2 6,6 7,6 12,1 23,8
Total 14,8 19,3 28,6 34,1 78,1
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million Apr. Apr. change Oct.
30, 30, 31,
2013 2012 % 2012
ASSETS
NON-CURRENT ASSETS
Intangible assets 1,2 1,3 0,9
Tangible assets 5,9 6,8 6,1
Trade receivables and other receivables, 0,2 0,0 0,3
non-current
Other long-term investments 0,0 0,0 0,0
Deferred tax asset 1,3 0,0 0,9
NON-CURRENT ASSETS 8,5 8,1 18,0 8,3
CURRENT ASSETS
Inventories 15,4 14,4 14,2
Trade receivables and other receivables 12,3 15,6 16,4
Tax receivable, income tax 0,0 0,6 0,0
Cash and cash equivalents 7,4 7,6 4,5
CURRENT ASSETS 35,1 38,2 1,6 35,0
ASSETS 43,6 46,3 4,1 43,3
EQUITY AND LIABILITIES
EQUITY
Share capital 15,0 15,0 15,0
Treasury shares -2,5 -2,2 -2,5
Other reserves 19,8 19,8 19,8
Translation differences 2,0 1,6 2,0
Retained earnings -17,2 -13,9 -13,9
Equity attributable to equity holders of the 17,1 20,3 20,4
parent
Equity attributable to non-controlling 0,2 0,3 0,2
interests
EQUITY 17,3 20,6 -0,1 20,7
NON-CURRENT LIABILITIES
Deferred tax liabilities 0,0 0,0 0,0
Interest-bearing liabilities 3,3 1,8 1,5
NON-CURRENT LIABILITIES 3,3 1,8 -19,8 1,5
CURRENT LIABILITIES
Interest-bearing liabilities 4,7 5,0 0,6
Trade payables and other liabilities 18,1 18,4 19,7
Tax liabilities 0,0 0,0 0,0
Provisions 0,1 0,4 0,8
CURRENT LIABILITIES 23,0 23,8 21,1
LIABILITIES 26,2 25,7 22,6
TOTAL EQUITY AND LIABILITIES 43,6 46,3 4,1 43,3
GROUP KEY FIGURES, EUR Feb./13- Feb./12- Nov./12- Nov./11- Nov./11-
million
Apr./13 Apr./ 12 Apr./ 13 Apr./ 12 Oct./12
3 months 3 months 6 months 6 months 12 months
Earnings per share, basic,eur -0,05 -0,03 -0,09 -0,06 -0,06
Earnings per share, diluted, -0,05 -0,03 -0,09 -0,06 -0,06
eur
Equity per share, eur 0,44 0,52 0,44 0,52 0,52
Solvency ratio,% 39,8 44,5 39,8 44,5 47,7
Return on equity-%(ROE) -45,6 -23,5 -35,6 -21,2 -10,5
Return on investment-%(ROI) -31,6 -18,8 -26,8 -16,8 -9,9
Gearing, % 3,8 -3,9 3,8 -3,9 -11,3
Net interest-bearing 0,7 -0,8 0,7 -0,8 -2,3
liabilities
Investments (intangible and 0,5 0,5 1,2 1,2 1,8
tangible assets)
as percentage of net sales 3,1 2,8 4,1 3,6 2,4
Average personnel 790 931 789 870 888
CONSOLIDATED STATEMENT OF CASH FLOWS Nov./12 Nov./11 change Nov./11
- - -
EUR million Apr. Apr./12 % Oct./12
/13
Cash flows from operating activities
Cash receipts from customers 29,2 39,0 83,9
Cash paid to suppliers and employees -31,1 -38,2 -81,3
Cash generated from operations -1,9 0,9 2,7
Interest paid -0,1 0,0 -0,3
Interest received 0,0 0,0 0,0
Other financial items 0,1 -0,5 0,5
Income taxes paid 0,0 -0,1 -0,2
Net cash from operating activities (A) -1,8 0,2 -923,0 2,6
Cash flows from investing activities
Purchase of tangible and intangible assets -0,7 -1,2 -1,7
Proceeds from sale of tangible and intangible 0,1 0,1 0,2
assets
Net cash used in investing activities (B) -0,6 -1,1 -50,6 -1,6
Cash flows from financing activities
Capital invest by the minority 0,0 0,0 0,0
Repurchase of own shares 0,0 -0,1 -0,5
Proceedings from short-term borrowings 4,0 0,6 1,8
Repayment of short-term borrowings 0,0 -1,1 -5,5
Proceeds from long-term borrowings 1,6 0,0 0,0
Repayment of long-term borrowings -0,3 -0,3 -1,7
Financial leasing repayment -0,1 -0,1 -0,2
Repayment of capital to shareholders 0,0 -2,1 -2,1
Net cash used in financing activities (C) 5,3 -3,0 -8,1
Net increase/decrease in cash and cash
equivalents (A+B+C) 2,9 -3,9 -7,1
Cash and cash equivalents at beginning of 4,5 11,2 11,2
period on Nov.1
Net increase/decrease in cash and cash 2,9 -3,9 -7,1
equivalents
Effects of exchange rate fluctuations on cash 0,0 0,3 0,4
held
Cash and cash equivalents at end of period on 7,4 7,6 4,5
Jan. 31
GROUP CONTINGENT LIABILITIES Apr. Apr. Oct.
30, 30, 31,
EUR million 2013 2012 2012
Security and contingent liabilities
For others
Other contingent liabilities 0,1 0,1 0,1
Operating lease commitments
Group as lessee
Non-cancellable minimum operating lease
payments:
Less than 1 year 1,1 1,3 0,7
1-5 years 0,4 0,7 0,5
Fair values of derivate financial instruments
Currency derivatives, not hedge
Option contract
Nominal amount 0,6 5,4 0,8
Negative fair value 0,0 0,0 0,0
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
A Share capital
B Treasury shares
C Unrestricted equity reserve
D Other reserves
E Translation differences
F Retained earnings
G Equity holders of the parent
H Non-controlling interests
I Total
EUR million A B C D E F G H I
Equity 15,0 -2,1 20,9 1,0 0,6 -11,6 23,8 0,3 24,1
Nov.1, 2011
Comprehensive income 0,0 0,0 0,0 0,0 1,0 -2,3 -1,3 0,0 -1,3
Repayment of capital to 0,0 0,0 -2,1 0,0 0,0 0,0 -2,1 0,0 -2,1
shareholders
Capital invest by the 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
minority
Repurchase of own shares 0,0 -0,1 0,0 0,0 0,0 0,0 -0,1 0,0 -0,1
Equity 15,0 -2,2 18,8 1,0 1,6 -13,9 20,3 0,3 20,6
April 30, 2012
EUR million A B C D E F G H I
Equity 15,0 -2,5 18,8 1,0 2,0 -13,9 20,4 0,2 20,7
Nov.1, 2012
Comprehensive income 0,0 0,0 0,0 0,0 0,0 -3,3 -3,3 0,0 -3,4
Equity 15,0 -2,5 18,8 1,0 2,0 -17,2 17,1 0,2 17,3
April 30, 2013
30.4.2013
CALCULATION OF
KEY
FIGURES AND
RATIOS
Return on = Profit before taxes+interest and other financing x 100
investment expenses /
(ROI), % (Equity + interest-bearing liabilities, average )
Return on Equity = Profit/loss for the period / Equity (average ) x 100
(ROE), %
Current ratio = Current assets / Current liabilities
Solvency ratio, % = Equity / (Total assets - advance payments received x 100
- own shares*)
Net = Interest-bearing liabilities - financial assets at
interest-bearing fair value through profit or loss - cash and cash
liabilities equivalents
Gearing, % = Net interest-bearing liabilities / Equity x 100
Earnings per = Profit or loss attributable to ordinary equity
share holders of the parent entity/ The weighted average
number of ordinary shares outstanding
Dividend per = Dividend for the financial year / (Number of shares - own
share shares*)
Dividend payout = Dividend per share / Earnings per share x 100
ratio, %
Effective = Dividend per share /Adjusted share price at x 100
dividend yield, balance sheet date
%
Equity per share = Equity - own shares* /Number of shares at
balance sheet date
P/E-ratio = Adjusted share price at balance sheet date /
Earnings per share
Market = Adjusted share price at balance sheet date x
capitalization = outstanding number of shares at balance sheet
date
Average personnel = The average number of employees at the end of
each calendar month during the accounting
period
All share-specific figures are based on the issue-adjusted number of
shares.
When calculating per share performance measures equity is the equity
attributable to the shareholders of the parent company, when
calculating other performance measures equity includes equity
attributable to the shareholders of the parent company and
non-controlling interests.
* There were own shares held by company April 30, 2013.
EFORE PLC
Board of Directors
For further information please contact Mr.Vesa Vähämöttönen, President and CEO,
on May 23, 2013 at 9 - 11 a.m., tel. +358 9 4784 6312
Efore Plc will hold a news conference regarding the financial statement report
for analysts and media on May 23, 2013 at 11 a.m. in Helsinki World Trade
Center, address Aleksanterinkatu 17.
DISTRIBUTION
Nasdaq OMX Helsinki Oy
Principal media
Efore Group
Efore Group is an international company which develops and produces demanding
power products. Efore's head office is based in Finland and its production unit
is located in China. Efore is present also in Sweden. In the fiscal year ending
in October 2012, consolidated net sales totaled EUR 78,1 million and the
Group's personnel averaged 888. The company's share is quoted on the Nasdaq OMX
Helsinki Ltd.
www.efore.com
Vesa Vähämöttönen, President and CEO, tel. +358 9 4784 6312
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