2016-02-12 08:00:01 CET
2016-02-12 08:00:01 CET
REGULATED INFORMATION
Efore - Financial Statement Release
EFORE PLC’S FINANCIAL STATEMENTS RELEASE JANUARY 1, – DECEMBER 31, 2015
Espoo, Finland, 2016-02-12 08:00 CET (GLOBE NEWSWIRE) --
EFORE PLC Financial Statements February 12, 2016 at 9.00
This release is a summary of Efore's Financial Statements 2015. The full
financial Statements 2015 is a PDF file attachment to this stock exchange
release and is available on the company's website at the address www.efore.fi.
October - December 2015 in brief:
- Net sales totalled EUR 19.8 million (EUR 21.4 million), down 7.8 % compared
with the corresponding period last year
- Results from operating activities without one-time items were EUR – 2.3
million (EUR -0.5 million)
- Results from the operating activities were EUR -2.5 million (EUR -1.3 million)
- Earnings per share were EUR -0.05 (EUR -0.02)
Financial year 2015 in brief:
- Net sales totalled EUR 89.9 million (EUR 85.3 million), up 5.4 % compared
with the corresponding period last year
- Results from operating activities without one-time items were EUR -1.6
million (EUR 0.1 million)
- Results from the operating activities were EUR -2.0 million (EUR -2.0
million)
- Earnings per share were EUR -0.07 (EUR -0,05)
- The Board of Directors will propose that no dividend be distributed.
10-12/ 10-12/ Change 1-12/1 1-12/1 Change
15 14 5 4
Key indicators, EUR million 3 mo 3 mo % 12 mo 12 mo %
--------------------------------------------------------------------------------
Net Sales 19,8 21,4 -7,8 89,9 85,3 5,4
Telecommunication sector 7,7 11,0 -30,0 44,8 46,0 -2,6
Industrial sector 12,1 10,4 16,3 45,1 39,3 14,8
Results from operating -2,3 -0,5 -1,6 0,1
activities without one-time
items
Results from operating -2,5 -1,3 -2,0 -2,0
activities
Result before taxes -3,0 -1,6 -3,3 -3,1
Net result -2,8 -0,9 -3,4 -2,6
Earnings per share, EUR -0,05 -0,02 -0,07 -0,05
Solvency ratio, % 34,2 38,1 -10,2 34,2 38,1 -10,2
Gearing, % 24,5 9,0 172,2 24,5 9,0 172,2
Cash flow from business -2,7 -0,8 1,8 3,8
operations
Key indicators quarterly, EUR million Q4/201 Q3/201 Q2/201 Q1/201 Q4/201
5 5 5 5 4
--------------------------------------------------------------------------------
Net Sales 19,8 22,8 23,7 23,5 21,4
Telecommunication sector 7,7 11,9 12,1 13,1 11,0
Industrial sector 12,1 10,9 11,6 10,4 10,4
Results from operating activities -2,3 0,0 0,0 0,7 -0,5
without one-time items
Results from operating activities -2,5 -0,3 0,0 0,7 -1,3
Financial estimate for 2016
The Company estimates its net sales of financial year 2016 to be higher than
2015, and the results from operating activities without one-time items to be
positive.
The estimate of the development of Efore’s net sales and results from operating
activities is based on current business structure as well as partly on
forecasts and delivery plans received from the customers.
Heikki Viika, Efore’s President and CEO:
The latter part of the year was challenging for Efore. The net sales of the
telecommunication sector went down significantly during the 4th quarter of the
year. The decrease resulted from even lower than forecasted demand.
Furthermore, some customers lowered their inventories towards the end of the
year. Due to weak net sales of the telecommunication sector the utilization
rate of the production capacity remained low leading to negative impact on the
results for the period. On the other hand the growth trend of the net sales in
the industrial sector has continued already for eight quarters. However, the
growth in the industrial sector net sales was not sufficient to compensate the
reduction in the telecommunication sector, resulting in low total net sales in
the 4th quarter. Due to low net sales the fourth quarter results from the
operating activities were negative. Furthermore, the results from operating
activities were impacted by the write-offs of capitalized product development
costs related to a product as a result of the customer's decision not to
continue the development of the product.
The net sales of 2015 increased slightly compared with the last year amounting
to EUR 89.9 million (EUR 85.3 million). We successfully achieved our goal to
grow the industrial sector, and the sector made more that a half of the full
year net sales. The clearly negative fourth quarter dragged the full year
results from operating activities into red figures amounting to EUR -2.0
million. The full year results were also lowered by too high personnel and
material costs in manufacturing. The changes in US Dollar and Chinese Juan
exchange rates had a positive impact on net sales and results for the financial
year compared with the exchange rate levels in the previous year.
Major strategic reviews have been conducted during the latter part of 2015 and
implementation of the new strategy has started. Efore's strategic aim remains
to grow in the industrial sector, and there were some adjustments in priorities
of the strategy and its implementation. We are focusing on operations in which
we have a strong market position and good possibilities to grow. The new
strategy was published at Capital Markets Day in November. According to the new
strategy the company is focusing to be "The Trusted Power Partner" based on
reliability of its products and operations. The cornerstones of the strategy
are: Efficient cost base, Empower competent employees, Evolve game changing
technologies and Expand selected markets. The process of updating Efore brand
and harmonizing of company names continued and supports Efore identity renewal.
During the latter part of the year we strengthened our partner network with
several new sales representative firms and distributors in the U.S.A and in
Europe. Furthermore, we started a cooperation with a leading Italian company in
marine equipment in developing electronics for customized LED luminaires used
in marine industry applications.
Our situation remains challenging, and we will continue to implement our cost
savings and profit improvement programme in 2016. Our most important goal in
2016 is to improve our profitability by strengthening our market position in
the selected customer sectors. One of our focal development areas is cost
efficiency in manufacturing and we will enhance our manufacturing model.
Efore's long term financial target is to reach 10% EBIT level and an average
annual net sales growth of 5-10%. In the short term Efore is focusing on
improving the profitability.
October – December net sales and financial development
October-December net sales totalled EUR 19.8 million (EUR 21.4 million).
Results from operating activities without one-time items were EUR -2.3 million
(EUR -0.5 million).
The net sales of the telecommunication sector went down significantly during
the 4th quarter of the year amounting to EUR 7.7 million (EUR 11.0 million).
The decrease resulted from even a lower than forecasted demand in the
telecommunication sector. Furthermore, the customers lowered their inventories
towards the end of the year. Due to weak net sales of the telecommunication
sector the utilization rate of the production capacity remained low which also
affected negatively the results from operating activities.
The net sales of the industrial sector totalled EUR 12.1 million (EUR 10.4
million). The growth of the net sales in the industrial sector was not enough
to compensate the reduction in the telecommunication sector resulting in low
total net sales in the 4th quarter.
Due to low net sales the fourth quarter results from operating activities
totalled EUR -2.5 million.Furthermore, the results from operating activities
was impacted by EUR 0.9 million balance sheet write-offs, largest item being
capitalized product development costs related to a product as a result
of the customer's decision not to continue the development of the product.
Net sales and financial development of the financial year
The full-year net sales totalled EUR 89.9 million (EUR 85.3 million).
The full-year 2015 net sales of telecommunication sector totalled EUR 44.8
million (EUR 46.0 million), with a year-on-year decrease of 2.6 %. Net sales
of the industrial sector totalled EUR 45.1 million (EUR 39.3 million), with a
year-on-year increase of 14.8 %.
Results from operating activities were EUR -2.0 million (EUR -2.0 million) and
results for the period without one-time items were EUR -1.6 million (EUR 0.1
million). The full-year results from operating activities were also lowered by
too high personnel and material costs in manufacturing. Results included EUR
-0.4 million (EUR -2.0 million) one-time items related to the changes in
Efore’s organizational structure. One-time items 2014 were related to
organization changes in Italy and Finland.
Business development
The net sales of 2015 increased compared to the last year despite slight
decline in telecom sector. Efore’s goal to grow the industrial sector was
achieved and this sector made more that a half of the full year net sales. The
positive development in industrial sector was mainly due to increase in systems
sales in EMEA area and due to the contracts made with the new customers. The
changes in US Dollar and Chinese Juan exchange rates had a positive effect on
net sales in Euro compared with the exchange rate levels of the previous year.
Weak and clearly negative fourth quarter turned the full year results from
operating activities negative. Furthermore, too high labour and material costs
had a negative effect on results from operating activities.
Efore has invested in several R&D projects and especially in the telecom
product portfolio a significant renewal has started. The products for the
small base stations will be ready for production in 2016. In addition to the
current customers, Efore is focusing on new marketing channels and new customer
acquisition in order to increase volume mainly in the industrial sector.
The major strategic reviews have been conducted during the latter part of the
year 2015 and strategy implementation started. Efore's strategic aim remains to
grow in the industrial sector, and there were some adjustments in priorities of
the strategy and its implementation. Efore is focusing on operations in which
the company has a strong market position and good possibilities to grow. The
new strategy was published in Capital Markets Day in November. According to the
new strategy the company is focusing to be "The Trusted Power Partner" based on
reliability of its products and operations. The cornerstones of the strategy
are: Efficient cost base, Empower competent employees, Evolve game changing
technologies and Expand selected markets. The process of updating Efore brand
and harmonizing of company names continued and was supported by the Efore
identity renewal.
Efore has strengthened the partner network with several new sales
representative firms and distributors in the USA and in Europe during last
quarter of the year. Furthermore, Efore has started a cooperation with a
leading, Italian company in marine equipment in developing LED luminaires for
marine and industry applications.
Efore will continue to implement the cost savings and profit improvement
programme in 2016. The most important goal in 2016 is to improve Efore’s
profitability by strengthening Efore’s market position in the selected
customer sectors. One of the focal development areas is cost efficiency in
manufacturing and Efore will enhance its manufacturing model.
Outlook
During the last years the group has reached in to new markets enabling better
opportunities for growth. The products based on the LTE (4G) technology are in
a key role in network expansions and Efore has a strong position in this
development. The network market is predicted to remain stable in 2016. There is
a trend towards smaller base stations where Efore also focuses product
development investments.
Power supplies for LED lighting, instrumentation, medical equipment and
infrastructure offer several growth areas for Efore in the industrial sector.
Efore focuses on expanding its product selection and on increasing its customer
base especially in the segments where high reliability is required, where
market fluctuations are lower and product life-cycles are longer.
Factors of uncertainty have been presented in the section “Short-term risks
and factors of uncertainty”.
Long-term targets
Efore Group's long term financial target is to reach 10% EBIT level and an
average annual net sales growth of 5-10%. Target is to grow especially in
industrial sector. Market driven product platforms and efficient R&D investment
utilization are key factors to support group's target to improve profitability.
Efore does not consider the long term targets as market guidance for any given
year. It will issue separate financial estimate.
Board of Directors’ proposal for the Annual General Meeting
The Board of Directors will propose to the Annual General Meeting on March 30,
2016 that no dividend will be distributed.
EFORE PLC
Board of Directors
Further information
For further information please contact Mr. Heikki Viika, President and CEO, on
February 12, 2016 at 10 – 11 a.m., tel. +358 9 4784 6312.
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
units are located in China and Tunisia. Sales and marketing operations are
located in Europe, United States and China. In the fiscal year ending in
December 2015, consolidated net sales totaled EUR 89.9 million and the Group's
personnel averaged 887. The company's share is quoted on the Nasdaq OMX
Helsinki Ltd. www.efore.com
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