2011-11-11 09:00:00 CET
2011-11-11 09:00:09 CET
REGULATED INFORMATION
Vaahto Group Plc Oyj - Financial Statement Release
VAAHTO GROUP'S FINANCIAL STATEMENT RELEASE FOR 1.9.2010 - 31.8.2011
Lahti, Finland, 2011-11-11 09:00 CET (GLOBE NEWSWIRE) -- VAAHTO GROUP PLC OYJ
STOCK EXCHANGE RELEASE 11.11.2011 at 10.00
VAAHTO GROUP'S FINANCIAL STATEMENT RELEASE FOR 1.9.2010 - 31.8.2011
For the financial year ending in August 2011, Vaahto Group's turnover was 55.3
MEUR (comparative from the previous financial year: 35.2 MEUR) and operating
loss 1.3 MEUR (comparative: operating loss of 2.9 MEUR). Turnover increased by
57 per cent from the reference period's level, and the operating result
improved. Loss for the fiscal year was 2.1 MEUR (loss 3.0 MEUR) and earning per
share was -0.75 euros (-1.01 euros). The Group's outstanding orders stood at
22.4 MEUR (15.2 MEUR) at the closing of the financial year.
Vaahto Paper Technology
Vaahto Paper Technology's turnover was 39.7 MEUR (21.5 MEUR) and net result an
operating loss of 0.1 MEUR (operating loss of 4.8 MEUR). The result of the
previous financial year was improved upon through sales profit of approximately
2 MEUR resulting from the Group's sale of real estate in Tampere. Vaahto Paper
Technology's turnover increased by 85 per cent from the reference period's
figure, and the result of the financial year was approximately 6.6 MEUR higher
than that of the previous financial year (with the real-estate transaction
included).
The most important orders received by Vaahto Paper Technology's project
business unit during the financial year under review were an order for four
headboxes received from Dongguan Jianhui Paper Co. Ltd and Dongguan Jinzhou
Paper Co. Ltd in China; an order for five headboxes for two exterior package
board production lines of Vantage Dragon Ltd, also in China; and a paper
machine modernisation project commissioned by Fajar Paper in Indonesia. In
addition, the business unit received substantial domestic orders from Finland,
including the modernisation of a drying machine at the Stora Enso pulp mill in
Imatra and the modernisation of the press section of a cardboard machine at
Stora Enso's mill in Inkeroinen.
The financial year also saw continued efforts toward developing Vaahto Paper
Technology's service business branch. Service and maintenance operations,
however, fell short of the objectives set for the period, especially during the
first half of the financial year. Toward the end of the financial year,
however, the market situation for short-circulation maintenance services
improved and orders started accumulating.
The objective of the Vaahto Paper Technology business unit is to continue
strengthening its position as a leading supplier of technologies and services
for the international paper and cardboard market.
Vaahto Process Technology
Vaahto Process Technology's turnover was 15.7 MEUR (13.8 MEUR) and result an
operating loss of 1.2 MEUR (operating profit of 1.9 MEUR). The result of the
previous financial year was improved upon, thanks to sales profit of
approximately 2.6 MEUR resulting from the sale of real estate in Pietarsaari
and the sale of the HVAC business. Turnover increased from the reference
period's level by 14 per cent, but the result remained negative and was 0.4
MEUR weaker than that of the reference period (including real-estate
transactions and the selling of business operations). The division's negative
operating result was principally caused by the low profitability of the tank
business.
Vaahto Process Technology's market situation in the vessel business was
extremely weak. At the end of the financial year the order book started to
increase, and the outlook for the next financial year is better.
Vaahto Process Technology's market situation in the agitator business was good,
and order book increased significantly in the course of the financial year. The
agitator business objectives have been met, and the outlook for our agitator
operations in the 2011-2012 financial year is good.
Profitability
Vaahto Group's turnover during the financial year was 55.3 MEUR (35.2 MEUR) and
operating loss 1.3 MEUR (operating loss 2.9 MEUR). The operating loss
represented 2.3 per cent (8.1 per cent) of the turnover. The primary reason for
the negative result was weak profitability in the tank business.
We improved on the result of the previous financial year through sales profit
of approximately 4.6 MEUR from the sale of real estate in Tampere and
Pietarsaari and the sale of the Group's HVAC business. Turnover increased by 57
per cent from the reference period's level, and the result for the financial
year showed an increase of approximately 6.2 MEUR from the previous financial
year's figure (including the real-estate transactions and the sale of business
operations).
Financing
The cash flow of the Group's business operations was -3.8 MEUR (-16.0 MEUR).
The Group's net financing costs came to 0.6 MEUR (1.0 MEUR). The cash flow for
investments made during the financial year was 7.1 MEUR (-0.3 MEUR). The
Group's consolidated balance sheet total was 36.5 MEUR (39.0 MEUR), with an
equity ratio of 17.8 per cent (21.8 per cent).
Important changes were made in the Group's financing arrangements during the
financial year under review. The Group sold real estate in Tampere and
Pietarsaari during the previous financial year, but the payment was received
only in September 2010. The purchase price, approximately eight million euros,
was primarily used to pay off bank and pension loans.
The Group is constantly monitoring and tracking the level of financing required
for its operations, to ensure the availability of sufficient liquid assets to
finance the Group's operations and repay its loans. Availability of the
working capital required by the Group's normal operations is aimed to ensure by
means of sufficient financing instruments.
The Group's financing agreement includes covenant condition restrictions that
are specified in more detail in Item 27 of the Notes to the Consolidated
Financial Statements, “Financial Risk Management”.
Investments
The Group's capital expenditure during the financial year was 1.9 MEUR (0.8
MEUR), mostly consisting of small-scale machine and equipment investments.
Information systems
Development of the Group's information administration efforts and information
systems was continued in accordance with the centralised model.
Research and development
The Group's research and development activities focused on expansion of Vaahto
Paper Technology's service business product range and improvement to the
competitive features of the key components of paper and cardboard machines. The
scope of research and development activities remains at the level seen in the
previous financial year.
Human resources
The average number of personnel employed by the Group during the financial year
was 348 (371).
Risks and uncertainty factors
Demand for Vaahto Group's products is highly dependent on trends and other
developments in the global economy and the Group's primary customer industries.
Attempts are made to balance out the risks caused by market fluctuations by
adapting the Group's sales operations in accordance with current trends in the
relevant market areas and customer industries.
Large-scale projects entail the risk of inaccurate assessment of project costs
and other risks inherent to projects in the tender stage, which may cause a
project's financial result to be lower than expected. Attempts are made to
control the risks involved in large-scale projects, by means of several quality
management systems, profitability analyses, operation guidelines, and approval
procedures.
The objective of the efforts to manage the Group's financing risks is to
minimise the negative impact of changes in financing markets on the Group's
result and to ensure the availability of internal and external capital on
competitive terms.
The risk of property losses, consequential losses, and liability losses caused
by business operations is addressed by means of appropriate insurance
arrangements.
Equity capital
Information on Vaahto Group Plc Oyj's shares is presented in Item 24 of the
Notes to the Consolidated Financial Statements, “Notes on the Shareholders'
Equity”.
The Annual General Meeting of 14 December 2010 authorised the Board of
Directors to decide on the issuing of new shares in one or more instalments.
The maximum number of new shares that may be issued is 300,000. The
authorisation is valid until 31 December 2011 unless a general meeting amends
or revokes the authorisation prior to that date.
The Board of Directors has no authorisation to issue convertible bonds or
warrant bonds or for purchasing or transferring the Group's own stock.
Administration
The Annual General Meeting of 14 December 2010 nominated the following members
to the Board of Directors of Vaahto Group Plc Oyj:
Reijo Järvinen, as chairman
Rainer Häggblom, as deputy chairman
Topi Karppanen, as an ordinary member
Antti Vaahto, as an ordinary member
Mikko Vaahto, as an ordinary member
Antti Vaahto resigned from the Board on 28 April 2011.
The Group's managing director throughout the 2010-2011 financial year was Anssi
Klinga.
The Group's accounts have been audited by certified auditing company Ernst &
Young Oy. The head auditor was Certified Public Accountant Panu Juonala.
The company follows the 2010 Corporate Governance Code issued for companies
listed on the NASDAQ OMX Helsinki exchange. A report on the Group's management
and steering system is available on the Group's Web site.
Development prospects
The development of the international economy has shown alarming signals, and
the market situation of Vaahto Group's principal customer industries is
increasingly uncertain. No significant changes, however, had occurred in demand
for Vaahto Group products by the beginning of the new financial year, and the
volume of outstanding orders is higher than that at the start of the 2010-2011
financial year. Vaahto Group's profitability can be expected to increase from
the previous financial year's level. The result for the financial year is
expected to be positive.
Distribution of profit
The parent company's financial resources available for distribution of profit
stood at 3,120,471.55 EUR, with the operating loss for the financial year at
354,920.90 EUR.
The Board will propose to the Annual General Meeting that no dividend be
distributed and that the retained earnings be deposited in the profit account.
The Annual General Meeting
The Annual General Meeting of Vaahto Group Plc Oyj will be held on December 12,
2011 at 1.00 p.m. in the Sibelius Hall, Lahti.
Interim management statement
Instead of the interim report for the first three months of the accounting
period, Vaahto Group Plc Oyj will disclose the interim management statement on
January 13, 2012.
VAAHTO GROUP CONSOLIDATED FIGURES
CONSOLIDATED 2010-2011 % of 2009-2010 % of
STATEMENT OF 12 turn- 12 turn-
COMPREHENSIVE months over months over
INCOME, IFRS
1000 EUR
NET TURNOVER 55 318 35 160
Change in finished
goods and work
in progress 547 1 264
Production
for own use 1 183 500
Other operating
income 390 4 901
Share of results of
affiliated companies -4 17
Material and
services -28 613 -17 548
Employee benefits
expenses -17 586 -16 374
Depreciations -2 115 -2 547
Other operating
expenses -10 424 -8 230
OPERATING PROFIT
OR LOSS -1 304 -2,4 -2 857 -8,1
Financing income 320 91
Financing expenses -963 -1 075
PROFIT BEFORE TAXES -1 946 -3,5 -3 840 -10,9
Tax on income
from operations -172 812
PROFIT OR LOSS
FOR THE PERIOD -2 118 -3,8 -3 028 -8,6
OTHER COMPREHENSIVE
INCOME:
Translation
differences -1 14
OTHER COMPREHENSIVE
INCOME, NET OF TAX -1 14
TOTAL COMPREHENSIVE
INCOME -2 120 -3 014
Net profit or loss
attributable:
Equity holders
of the parent -2 225 -2 910
Non-controlling
interest 107 -118
Total -2 118 -3 028
Total comprehensive
income attributable:
Equity holders
of the parent -2 226 -2 896
Non-controlling
interest 107 -118
Total -2 120 -3 014
Earnings per share calculated on profit attributable
to equity holders of the parent:
EPS undiluted,
euros/share -0,75 -1,01
EPS diluted,
euros/share -0,75 -1,01
Average number of
shares (1000 shares):
undiluted 2 953 2 872
diluted 2 953 2 872
CONSOLIDATED 31.8.2011 31.8.2010
BALANCE SHEET,IFRS
1000 EUR
ASSETS
NON-CURRENT ASSETS:
Intangible assets 1 030 1 642
Goodwill 1 702 1 702
Tangible assets 10 907 10 923
Shares in affiliated
companies 57 62
Available for sale
investments 44 44
Non-current trade
and other
receivables 11 11
Deferred tax asset 2 274 2 172
NON-CURRENT ASSETS 16 026 16 557
CURRENT ASSETS:
Inventories 5 601 5 241
Trade receivables
and other
receivables 7 305 14 732
Current receivables
for revenue recognised
in part prior to
project completion 6 818 1 953
Tax receivable,
income tax 0 2
Cash and bank 775 560
CURRENT ASSETS 20 500 22 488
TOTAL ASSETS 36 525 39 045
CONSOLIDATED 31.8.2011 31.8.2010
BALANCE SHEET, IFRS
1000 EUR
EQUITY AND
LIABILITIES
SHAREHOLDERS'
EQUITY:
Share capital 2 872 2 872
Share premium
account 6 6
Contingency
reserve 1 995 1 995
Translation
differences 29 41
Retained earnings -351 1 864
Equity attributable
to equity holders
of the parent 4 552 6 778
Non-controlling
interest 1 217 1 110
SHAREHOLDERS'
EQUITY 5 768 7 888
NON-CURRENT LIABILITIES:
Deferred
tax liability 624 549
Long-term
liabilities,
interest-bearing 6 831 3 042
Non-current
provisions 273 245
NON-CURRENT
LIABILITIES 7 728 3 836
CURRENT LIABILITIES:
Short-term
liabilities,
interest-bearing 8 269 15 068
Trade payables and
other liabilities 14 573 12 072
Tax liability,
income tax 186 182
CURRENT LIABILITIES 23 028 27 321
TOTAL EQUITY AND
LIABILITIES 36 525 39 045
KEY FIGURES, IFRS 2010-2011 2009-2010
Shareholders'
equity per share,
euros 1,52 2,36
Earnings per
share, euros -0,75 -1,01
Equity ratio % 17,8 21,8
Gross investments 1 876 776
Total average
number of
personnel 348 371
Order backlog at
the end of the fiscal
period 22 401 15 175
The amount of contract revenue recognized as revenue has
been deducted from the order backlog.
OTHER LIABILITIES 31.8.2011 31.8.2010
1000 EUR
Bank guarantees:
Bank guarantee
limits total 18 000 25 000
Bank guarantee
limits used 11 218 5 720
Lease liabilities,
excluded financial
lease liabilities:
Current lease
liabilities 246 220
Lease liabilities
maturing
in 1-5 years 275 287
Total 521 508
Rent liabilities:
Current lease
liabilities 804 804
Lease liabilities
maturing
in 1-5 years 3 216 3 216
Later 3 216 4 020
Total 7 236 8 040
Other liabilities:
Granted guarantees
to customers and
creditors 500 660
Guarantees granted
to secure bank
guarantee limits 17 600 17 600
Guarantees granted
to secure bank
guarantees 290 0
Guarantees granted
to secure bank loans 2 910 2 910
Guarantees granted
to secure rent
guarantees 400 0
Total 21 700 21 170
Derivative contracts:
Currency forward agreements are as a rule used to hedge
against exchange rate risks. The currency forward agreements
have been used to protect receivables and future assets.
Interest rate agreements are used to hedge against the
changes of the interests.
The derivative agreements of the group are booked according
to IAS 39: Financial instruments. Derivative agreements are
initially recognized at their purchase cost which is
equivalent to the fair value and they are subsequently
remeasured at fair value.
Fair values Nominal Fair Fair Fair
of derivative value value, value, value
agreements pos. neg. total
31.8.2011 arvo
1000 EUR
Koronvaihto-
sopimukset 6 666 0 -241 -241
Fair values of derivative agreements are determined by using
the market prices for the equivalent agreements on the day of
the closing of the accounts. Fair values state for the income
or expenses the group would book if the derivative agreements
were closed at the end of the fiscal period.
CONSOLIDATED FLOW 2010-2011 2009-2010
OF FUNDS 12 12
STATEMENT, IFRS months months
1000 EUR
Flow of funds
from operations:
Profit before taxes -1 946 -3 840
Adjustments 2 429 -1 337
Change in working
capital -3 470 -9 815
Financial income and
expenses and taxes -843 -1 055
Flow of funds from
operations -3 831 -16 047
Flow of funds from
investments:
Investments in
tangible and
intangible assets -1 879 -776
Income from sales
of tangible and
intangible assets 8 933 479
Payments of loans 1 1
Flow of funds from
investments 7 055 -295
Flow of funds from
financial items:
Withdrawals of
short-term loans 55 6 172
Payments of
short-term loans -6 793 -869
Withdrawals of
long-term loans 5 274 238
Payments of
long-term loans -1 545 -1 039
Flow of funds from
financial items -3 009 4 502
Change of liquid
funds 215 -11 840
Lahti November 11, 2011
VAAHTO GROUP PLC OYJ
The Board of Directors
Information:
Anssi Klinga
CEO, Vaahto Group Plc Oyj
tel. +358 50 4661470
www.vaahtogroup.fi
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