2017-02-16 08:00:02 CET
2017-02-16 08:00:02 CET
REGULATED INFORMATION
Honkarakenne Oyj - Financial Statement Release
HONKARAKENNE OYJ’S FINANCIAL STATEMENT RELEASE 1 JANUARY – 31 DECEMBER 2016
HONKARAKENNE OYJ FINANCIAL STATEMENT RELEASE 16 February 2017 at 9:00 a.m.
HONKARAKENNE OYJ’S FINANCIAL STATEMENT RELEASE 1 JANUARY – 31 DECEMBER 2016
SUMMARY
Net sales for the last quarter of the year improved by 4 %. Net sales for the
entire year decreased by 8 % on the previous year. The result before taxes for
the last quarter was MEUR 0.4 (MEUR -0.3). The result before taxes for the
entire year remained in the red, but, however, was MEUR 0.6 better than a year
earlier. At the end of the year, the Group’s order book was 9 % higher than at
the end of the previous year.
October - December 2016
-- Honkarakenne Group's consolidated net sales for the last quarter of the
year amounted to MEUR 10.3 (MEUR 9.9 in 2015),
representing an increase over the same period the previous year of 4 %
-- The operating result was MEUR 0.3 (MEUR -0.1). The adjusted operating
result was MEUR 0.4 (MEUR 0.2)
-- The result before taxes was MEUR 0.4 (MEUR -0.3). The adjusted result
before taxes was MEUR 0.6 (MEUR -0.0)
-- Earnings per share amounted to EUR 0.09 (EUR -0.02)
Year 2016
-- Honkarakenne Group’s consolidated net sales for the entire year was MEUR
36.1 (39.1),
representing a decrease over the same period the previous year of 8 %
-- The Operating result was MEUR -0.8 (MEUR -1.1). The adjusted operating
result was MEUR -0.4 (MEUR -0.2)
-- The result before taxes was MEUR -1.2 (MEUR -1.7). The adjusted result
before taxes was MEUR -0.8 (MEUR -0.9).
-- Earnings per share amounted to EUR
-0.30 (EUR -0.23).
The Board of Directors proposes to the Annual General Meeting that no dividend
be paid for the financial year ended 31 December 2016.
In Honkarakenne’s view, net sales in 2017 will be higher and the result before
taxes will be better than in the previous year.
At the end of December, the Group's order book stood at MEUR 16.3, up 9 % on
the corresponding period of the previous year, when it stood at MEUR 15.0. The
order book refers to orders whose delivery date falls within the next 24
months. Some orders may include terms and conditions relating to financing or
building permits.
The company and its financiers negotiated new financing resolutions for year
2017. Some of the new financing resolutions include covenants relating to
EBITDA. Some of those loans already carried a 30 per cent equity ratio covenant
term. If the company's sales do not develop well enough, it is possible that
the terms of the covenants will be broken during the next year.
KEY INDICATORS 10–12/ 10–12/ 1-12/ 1-12/
2016 2015 2016 2015
Net sales, MEUR 10.3 9.9 36.1 39.1
Operating profit/loss, MEUR 0.3 -0.1 -0.8 -1.1
Adjusted operating profit/loss, MEUR 0.4 0.2 -0.4 -0.2
Profit/loss before taxes, MEUR 0.4 -0.3 -1.2 -1.7
Adjusted profit/loss before taxes, MEUR 0.6 -0.0 -0.8 -0.9
Average number of personnel 134 135 136 139
Personnel in person-years, average 97 108 110 115
Earnings/share (EPS), EUR 0.09 -0.02 -0.30 -0.23
Equity ratio, % 41 37
Return on equity, % -20 -13
Shareholders' equity/share, EUR 1.38 1.61
Gearing, % 75 81
Marko Saarelainen, President and CEO of Honkarakenne Oyj, in connection with
the financial statement release:
“In the last quarter, sales in Finland declined, but sales in Russia saw a
year-on-year increase. In addition, the sales trend was positive in Global
Markets in the last months of the year. On the whole, net sales in the fourth
quarter grew compared with the previous year, and at the end of the review
period the order book was also at a higher level than in 2015.
In the last quarter, Honkarakenne continued to make outlays on renewal and
training its dealer network: new dealers came on board and we organised product
and marketing training for dealers in Europe and Russia.
For both the Finnish and export markets, Honkarakenne unveiled healthy care and
school concepts which take the special requirements of public construction into
consideration. Healthy House development continued. At the end of 2016, VTT
granted Honkarakenne the right to give a Healthy House certificate to a larger
delivery package that also includes construction partly done by the customer.
Compared to 2015, the full-year adjusted operating result was negatively
impacted by decline in net sales while efficiency-boosting measures had a
positive effect. The adjusted result before taxes was also positively impacted
by lower financial expenses compared to the previous year.”
NET SALES
Honkarakenne Group’s net sales for the year 2016 decreased by 8 per cent to
MEUR 36.1 (MEUR 39.1). The Group’s last-quarter net sales in 2016 increased by
4 per cent to MEUR 10.3 (MEUR 9.9).
Geographical distribution of net sales:
DEVELOPMENT OF NET SALES
Distribution of 1-12 1-12
net sales, % /2016 /2015
Finland & Baltics 51 % 42 %
Russia & CIS 28 % 31 %
Global Markets 21 % 28 %
Total 100 % 100 %
Net sales, MEUR 10-12 10-12 % change 1-12 1-12 % change
/2016 /2015 /2016 /2015
Finland & Baltics 3.8 3.0 30 % 18.3 16.3 13 %
Russia & CIS 4.6 5.0 -9 % 10.2 12.0 -15 %
Global Markets 1.9 1.9 -2 % 7.6 10.8 -30 %
Total 10.3 9.9 4 % 36.1 39.1 -8 %
Finland & Baltics includes the following countries: Finland, Estonia, Latvia
and Lithuania. It includes also Process waste sales for recycling.
Russia & CIS includes the following countries: Russia, Azerbaijan, Kazakhstan
and other CIS countries excluding Ukraine.
Global Markets includes other countries than above-mentioned and CIS country
Ukraine.
The Group’s order book stood at MEUR 16.3 at the end of December. In the
previous year at the same time period it was MEUR 15.0.
TRENDS IN PROFIT AND PROFITABILITY
The operating loss for the year 2016 was MEUR -0.8 (MEUR -1.1) and the result
before taxes was MEUR -1.2 (MEUR -1,7). The adjusted operating profit for the
year 2016 was MEUR -0.4 (MEUR -0.2) and the adjusted result before taxes was
MEUR -0.8 (MEUR -0.9). The adjustment items were MEUR 0.4 and they included
costs related to the efficiency-boosting programme kicked off in May and costs
related to the Sistema Finance S.A.’s voluntary public tender offer (costs
classified as adjustment items amounted to MEUR 0.8 in the previous year).
Compared to 2015, the full-year adjusted operating result was negatively
impacted by decline in net sales while efficiency-boosting measures had a
positive effect. The adjusted result before taxes was also positively impacted
by lower financial expenses compared to the previous year.”
FINANCING AND INVESTMENTS
The financial position of the Group was satisfactory at the end of the report
period. The equity ratio stood at 41 % (37 %) and net financial liabilities at
MEUR 5.0 (MEUR 6.5). In December 2016 the company and its financiers negotiated
new financing resolutions for year 2017. Some of the new financing resolutions
include covenants relating to EBITDA. MEUR 2.5 of financial liabilities carries
EBITDA covenant terms and MEUR 1.3 (MEUR 1.9) of them carried already before 30
per cent equity ratio covenant term.
As part of Honkarakenne’s financial arrangements Honkarakenne’s main owner
Saarelainen Oy granted in November Honkarakenne an unsecured junior loan
amounting MEUR 0.3. The junior loan is subordinated to bank loans.
Group liquid assets totalled MEUR 0.4 (MEUR 1.1). The Group also has a MEUR 5.4
(MEUR 7.8) bank overdraft facility, MEUR 1.2 of which had been drawn on at the
end of the report period (MEUR 2.5). Gearing stood at 75 % (81 %).
The Group’s capital expenditure on fixed assets totalled MEUR 0.1 (MEUR 0.1) in
year 2016.
PRODUCTS AND MARKETING
In Finland & Baltics, the company made outlays on regional marketing, with more
house exhibitions and events at sales offices, and regional sales campaigns
were carried out. During the last quarter, the company renewed brand strategy.
In the last quarter of the year sales in Finland declined, but detached house
sales figures remained good.
In Russia & CIS, the trend in sales was positive in the last months of the
year. During the fourth quarter, the company organised product training for the
staff of its Russian importer. Although sales in Russia improved towards the
end of 2016, cumulative full-year net sales were down 15% on the previous year.
It is expected that the Russian market situation will remain difficult.
In Global Markets, the company continued to develop its dealer network and the
reorganisation of its sales. For instance, the European functions will be
reorganised. Performance in German-speaking Europe and in international
projects fell significantly short of the previous year in terms of both sales
and net sales.
RESEARCH AND DEVELOPMENT
Research and development focused especially on solutions for healthy public
construction and modern architecture. For both the Finnish and export markets,
Honkarakenne unveiled healthy care and school concepts which take the special
requirements of public construction into consideration. Healthy House
development continued. At the end of 2016, VTT granted Honkarakenne the right
to give a Healthy House certificate to a larger delivery package that also
includes construction partly done by the customer.
In the January–December period, the Group's R&D expenditure totalled MEUR 0.3
(MEUR 0.4), representing 0.8 % of net sales (0.9 %). The Group did not
capitalise any development expenditure during the financial year.
PERSONNEL
In terms of person years, the Group employed a total of 110 (115) people in
average in 2016, representing a year-on-year decrease of 5. In 2016 the Group
employed 136 (139) people on average. At the end of the year, the Group
employed 132 (134) people.
In May-June, the Group conducted negotiations under the act on co-operation
within undertakings and as a result Honkarakenne can lay-off clerical and
managerial employees temporarily maximum 90 days and blue-collar workers will
work under reduced working hours. The lay-off plan is effective until 31 March
2017 for white-collars and until 31 May 2017 for blue-collar workers.
CHANGE IN MANAGEMENT
In June Honkarakenne’s CFO Mikko Jaskari announced that he will transfer into
another company’s employ. Mikko Jaskari’s employment relationship ended on 31
July 2016. Erja Heiskanen, Honkarakenne’s Vice President – Operations, left the
company at the end of June due to the organisational reform carried out as part
of the efficiency-boosting programme.
CHANGES IN GROUP STRUCTURE
Honka Management Oy, a company created in 2010 as an Executive Group bonus
scheme is after the share acquisition carried out in December owned as whole by
Honkarakenne Oyj. Honkarakenne Oyj’s earlier ownership of the shares in Honka
Management Oy was 47 %. Based on the shareholder agreement, Honkarakenne Oyj
already had control of Honka Management Oy before the share purchase, for which
reason the latter was already included in the consolidated financial
statements.
VOLUNTARY PUBLIC TENDER OFFER OF HONKARAKENNE OYJ’S SHARES
Sistema Finance S.A. announced on 3 November 2016 that it will make a voluntary
public tender offer in cash to purchase all of the issued Series A shares and
Series B shares in Honkarakenne Oyj (Series B shares on Nasdaq Helsinki Ltd.
HONBS).
On 4 November 2016, Honkarakenne Oyj’s main shareholder Saarelainen Oy
announced to the Board of Directors of Honkarakenne Oyj that it would not
accept the proposed purchase offer. Sistema Finance S.A. started this voluntary
public tender offer in cash on 11 November 2016. The offer period was scheduled
to end at 16:00 on 16 December 2016.
On 9 December 2016, Honkarakenne Oyj’s Board of Directors published a statement
on the tender offer of Sistema Finance S.A. On 16 December 2016, Sistema
Finance S.A. announced that it would extend the offer period of the voluntary
public tender offer in cash for all shares in Honkarakenne Oyj (“Honka”) to
16:00 on 19 January 2017. In addition, Sistema Finance S.A. announced on that
date that it had received clearance on 12 December 2016 from the antimonopoly
authorities of the Russian Federation in respect of the transaction planned in
the tender offer.
Sistema Finance S.A. announced the preliminary results of the voluntary public
tender offer in cash for all shares in Honkarakenne Oyj on 20 January 2017 and
the final results on 24 January 2017. According to Sistema Finance S.A.’s
announcement, 192,866 Series B shares were tendered in the offer, representing
3.7 per cent of Honka shares. Sistema Finance S.A. announced that it would not
complete the tender offer in accordance with its terms and conditions, as it
was contingent on the acquisition of at least 67 per cent or more of the Series
A and Shares B shares in Honka.
When calculating the adjusted operating result and the adjusted result before
taxes costs related to the Sistema Finance S.A.’s voluntary public tender offer
has been included in adjustment items due to their exceptional character.
LONG-TERM INCENTIVE PLAN
In the second quarter of 2013, the Board of Directors decided on a long-term
share-based incentive plan for members of the Executive Group. The performance
period of the new plan began on 1 January 2013 and will end on 31 December
2016. The potential reward for the performance period is based on the
cumulative earnings per share (EPS) for 2013 - 2016 and on the average return
on capital employed (ROCE) for 2013 - 2016. Any rewards for the performance
period 2013 - 2016 will be paid partly as B shares and partly in cash in 2017.
The rewards to be paid on the basis of the performance period will correspond
to a total maximum of about 340,000 B shares, including the amount to be paid
in cash.
The performance period of the share-based incentive plan concluded at the end
of 2016 and no rewards will be paid under the plan; the payouts had already
been assessed as zero a year ago.
On 31 May 2010, the Board of Directors of Honkarakenne Oyj decided on an
Executive Group bonus scheme, with the aim of enabling significant long-term
management shareholdings in the company. To this end Honka Management Oy
acquired a total of 286,250 B shares in Honkarakenne Oyj in 2010-2011. In
December 2016 Honka Management Oy’s shareholders agreed by consensus to
dissolve the scheme, with Honkarakenne Oyj acquiring all Honka Management Oy’s
shares by purchase from executives involved in the scheme at a unit price of
€1. Honkarakenne Oyj’s earlier ownership of the shares in Honka Management Oy
was 47 %.
HONKARAKENNE OYJ’S 2016 ANNUAL GENERAL MEETING, BOARD OF DIRECTORS, AND AUDITORS
The Annual General Meeting of Honkarakenne Oyj was held at the company’s
headquarters in Tuusula on 15 April 2016. The AGM approved the parent company's
and the consolidated Financial Statements, and discharged the members of the
Board of Directors and the CEO from liability for 2015. The AGM decided not to
pay a dividend for the 2015 financial year.
Kati Rauhaniemi, Anita Saarelainen, Jukka Saarelainen, Mauri Saarelainen and
Arto Tiitinen were re-elected to the company's Board of Directors. Rainer
Häggblom was elected as a new member. At the Board's constituent meeting, Arto
Tiitinen was elected Chairman of the Board and Mauri Saarelainen was elected as
Deputy Chairman. At the same meeting, the Board decided to establish a
Nomination and Remuneration Committee. The following directors were elected as
members of the committee: Arto Tiitinen (as Chairman of the Committee), Anita
Saarelainen and Mauri Saarelainen.
PricewaterhouseCoopers Oy, member of the Finnish Institute of Authorised Public
Accountants, was re-appointed as auditor of the company, with Maria Grönroos,
APA, as chief auditor.
OWN SHARES AND AUTHORISATIONS OF THE BOARD OF DIRECTORS
Honkarakenne has not acquired its own shares during the report period. At the
end of the report period, the Group held 364,385 of its Honkarakenne B shares
with a total purchase price of EUR 1,381,750.23. These shares represent 6.99 %
of the company's all shares and 3.34 % of all votes. The purchase cost has been
deducted from shareholders' equity in the consolidated financial statements.
On 15 April 2016, the AGM decided that the Board of Directors will be
authorised to acquire a maximum of 400,000 of the company’s own B shares with
assets included in the company’s unrestricted equity. In addition, the AGM
authorised the Board to decide on a rights issue or bonus issue and on granting
special rights to shares referred to in Section 1 of Chapter 10 of the Limited
Liability Companies Act in one or more instalments. By virtue of the
authorisation, the Board may issue a maximum total of 1,500,000 new shares
and/or relinquish old B shares held by the company, including those shares that
can be issued by virtue of special rights. Both authorisations will remain in
force until the next Annual General Meeting, however expiring at the latest on
June 30, 2017.
CORPORATE GOVERNANCE
Honkarakenne Oyj follows the Limited Liability Companies Act and the Finnish
Corporate Governance Code 2015 (effective from 1 Jan 2016) for listed companies
issued by the Finnish Securities Market Association. The company’s website,
www.honka.com, provides more information on the corporate governance systems.
FORTHCOMING RISKS AND UNCERTAINTIES
Russia is one of Honkarakenne’s major business territories. The sanctions
connected to the Ukrainian crisis and strong exchange rate fluctuations
currently cause instability in the Russian market. This might have major
impacts on Honkarakenne’s operations.
In December 2016 the company and its financiers negotiated new financing
resolutions for year 2017. Some of the new financing resolutions include
covenants relating to EBITDA. MEUR 2.5 of financial liabilities carries EBITDA
covenant terms and MEUR 1.3 (MEUR 1.9) of them carried already before 30 per
cent equity ratio covenant term. If the company's sales do not develop well
enough, it is possible that the terms of the covenants will be broken during
the next year.
The assessment of amounts in the balance sheet is based on current assessment
by the management. If these assessments are changed, this may result in changes
to the Group's result.
In the financial statements, the deferred tax assets in the balance sheet
include an item of MEUR 1.5 related to unused tax losses, of which MEUR 0.5
will expire in 2019 and MEUR 0.7 in 2021-2025. In Honkarakenne’s opinion, these
deferred tax assets recognised in the balance sheet can be utilised by using
the company’s estimated taxable income, which is based on Honkarakenne’s
business plans, including the current efficiency-boosting programme. If
earnings do not develop as expected in the long term, it is possible that the
tax assets might not be utilised in time and must be impaired. The company did
not recognise new deferred tax assets in the balance sheet in 2016.
REPORTING
This report contains statements that relate to the future, and these statements
are based on hypotheses that the company's management hold currently as well as
on the decisions and plans that are currently in place. Although the management
believes that the hypotheses relating to the future are well-founded, there is
no guarantee that the said hypotheses will prove to be correct.
This financial statement release has been drafted in accordance with IAS 34.
The principles adhered to in preparing the annual financial statements 2015
also apply to this financial statement release but new and amended IFRS
standards and interpretations effective in 2016 have been applied. Amended
standards and interpretations effective from the beginning of year 2016 have no
bearing on the figures presented for the report period.
As from half year financial report, Honkarakenne complies with the Guidelines
on Alternative Performance Measures (APM) issued by the European Securities and
Markets Authority (ESMA). An APM is a financial measure of performance other
than a financial measure defined or specified in IFRS. For this reason, the
term “adjusted” is used instead of previous term “without non-recurring items”.
As adjustment items, the company classifies significant business transactions
that are considered to affect comparisons between different reporting periods.
Such transactions include significant reorganisation expenses, impairment
losses or reversals thereof, and capital gains and losses on assets or other
significant income or costs of unusual business operations. When calculating
the adjusted operating result and the adjusted result before taxes costs
related to the Sistema Finance S.A.’s voluntary public tender offer has been
included in adjustment items due to their exceptional character.
The figures have not been examined by the auditor.
EVENTS AFTER THE REVIEW PERIOD
Sistema Finance S.A. announced the preliminary results of the voluntary public
tender offer in cash for all shares in Honkarakenne Oyj on 20 January 2017 and
the final results on 24 January 2017. According to Sistema Finance S.A.’s
announcement, 192,866 Series B shares were tendered in the offer, representing
3.7 per cent of Honka shares. Sistema Finance S.A. announced that it would not
complete the tender offer in accordance with its terms and conditions, as it
was contingent on the acquisition of at least 67 per cent or more of the Series
A and Shares B shares in Honka.
PROPOSAL OF THE BOARD OF DIRECTORS ON THE USE OF PROFIT FUNDS
The parent company has no distributable funds and no funds can be allocated as
profits. The parent company posted a MEUR -0.1 loss for the financial year.
The Board of Directors proposes to the Annual General Meeting that no dividend
be paid for the financial year ended 31 December 2016.
THE OUTLOOK FOR 2017
In Honkarakenne’s view, net sales in 2017 will be higher and the result before
taxes will be better than in the previous year.
GENERAL MEETING
Honkarakenne Oyj’s Annual General Meeting will be held on Friday, 7 April 2017
from 14:00 onwards in Järvenpää.
HONKARAKENNE OYJ
Board of Directors
Further information:
Marko Saarelainen, President and CEO, tel. +358 40 542 0254,
marko.saarelainen@honka.com
This and previous releases are available for viewing on the company’s website
at www.honka.com.
During week 11, Honkarakenne will publish the Board of Directors’ Report and
the Financial Statements for 2016, as well as a separate Corporate Governance
Statement on the company’s website at www.honka.com. The half year financial
report for 2017 will be published on 10 August 2017.
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
Financial Supervisory Authority
www.honka.com
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
unaudited 10-12 10-12 1-12 1-12
/2016 /2015 /2016 /2015
MEUR
Net sales 10.3 9.9 36.1 39.1
Other operating income 0.2 0.2 0.4 0.3
Change in inventories -0.6 0.0 -0.2 -0.6
Materials and services -5.8 -6.4 -23.0 -24.8
Employee benefit expenses -1.7 -1.7 -6.7 -7.5
Depreciations and amortisation -0.4 -0.5 -1.8 -2.0
Impairment 0.0 -0.2 0.0 -0.3
Other operating expenses -1.7 -1.4 -5.5 -5.3
Operating profit/loss 0.3 -0.1 -0.8 -1.1
Financial income 0.0 0.0 0.2 0.2
Financial expenses 0.1 -0.2 -0.5 -0.8
Share of associated companies' result 0.0 -0.0 0.0 -0.1
Profit/loss before taxes 0.4 -0.3 -1.2 -1.7
Taxes -0.0 0.2 -0.3 0.6
Profit/loss for the period 0.4 -0.1 -1.4 -1.1
Other comprehensive income
Translation differences -0.2 0.0 0.1 0.2
Total comprehensive 0.3 -0.0 -1.3 -0.9
income for the period
Result for the period attributable to
Equity holders of the parent 0.4 -0.1 -1.4 -1.1
Non-controlling interest -0.0 -0.0 -0.0 -0.0
0.4 -0.1 -1.4 -1.1
Comprehensive income attributable to
Equity holders of the parent 0.3 -0.0 -1.3 -0.9
Non-controlling interest -0.0 -0.0 -0.0 -0.0
0.3 -0.0 -1.3 -0.9
Calculated from the result for the period
attributable to equity holders of parent:
Earnings/share (EPS), EUR
Basic 0.09 -0.02 -0.30 -0.23
Diluted 0.09 -0.02 -0.30 -0.23
Honkarakenne Oyj has two series of shares: A shares and B shares, which have
different right to dividend. Profit distribution of 0.20 EUR per share will be
paid first for B shares, then 0.20 EUR per share for A shares, followed by
equal distribution of remaining profit distribution between all shares.
CONSOLIDATED BALANCE SHEET 31.12.2016 31.12.2015
Unaudited
MEUR
Assets
Non-current assets
Property, plant and equipment 9.6 11.4
Goodwill 0.1 0.1
Other intangible assets 0.1 0.2
Investments in associated companies 0.2 0.2
Receivables 0.1 0.2
Deferred tax assets 2.6 2.7
12.7 14.8
Current assets
Inventories 4.0 4.2
Trade and other receivables 2.8 3.7
Tax receivable, income tax 0.4 1.1
7.2 9.1
Non-current assets held for sale 0.0 1.0
Total assets 19.9 24.9
Shareholders’ equity and liabilities 31.12.2016 31.12.2015
Equity attributable to equity holders
of the parent company
Share capital 9.9 9.9
Share premium account 0.5 0.5
Fund for invested unrestricted equity 6.5 6.5
Own shares -1.4 -1.4
Translation differences 0.1 -0.0
Retained earnings -9.0 -7.8
6.7 7.8
Non-controlling interests 0.0 0.2
Total equity 6.7 8.0
Non-current liabilities
Provisions 0.2 0.2
Financial liabilities 4.5 4.5
Other liabilities 0.0 0.1
4.6 4.9
Current liabilities
Trade and other payables 7.5 8.5
Current tax liabilities 0.0 0.1
Provisions 0.2 0.3
Current financial liabilities 0.9 3.1
8.6 12.0
Liabilities of non-current assets held for sale 0.0 0.1
Total liabilities 13.3 16.9
Total equity and liabilities 19.9 24.9
STATEMENT OF CHANGES IN EQUITY
abridged
Unaudited
EUR thousand Equity attributable to equity holders
of the parent
a) b) c) d) e) f) Total g) Total
equity
Total equity 1.1.2015 9898 520 6534 -215 -1382 -6638 8716 204 8920
Profit/loss for the -1095 -1095 0 -1095
period
Translation 189 189 189
difference
Management incentive -23 -23 -23
plan
Total equity 9898 520 6534 -27 -1382 -7757 7786 204 7990
31.12.2015
Equity attributable to equity holders
of the parent
a) b) c) d) e) f) Total g) Total
equity
Total equity 1.1.2016 9898 520 6534 -27 -1382 -7757 7786 204 7990
Profit/loss for the -1433 -1433 -3 -1436
period
Translation 124 124 124
difference
Purchase of 197 197 -197 0
non-controlling
interests
Total equity 9898 520 6534 97 -1382 -8993 6674 4 6678
31.12.2016
a) Share capital
b) Share premium account
c) Fund for invested unrestricted equity
d) Translation difference
e) Own shares
f) Retained earnings
g) Non-controlling interests
CONSOLIDATED STATEMENT OF CASH FLOWS abridged 1.1.- 1.1.-
Unaudited 31.12.2016 31.12.2015
MEUR
Cash flow from operating activities 0.5 1.8
Cash flow from investing activities, net 1.1 -0.1
Total cash flows from financing activities -2.2 -1.6
Proceeds from borrowings 0.3 0.2
Repayment of borrowings -2.5 -1.7
Other financial items -0.0 -0.1
Change in cash and cash equivalents -0.7 0.1
Cash and cash equivalents at the beginning of period 1.1 1.0
Cash and cash equivalents at the close of period 0.4 1.1
NOTES TO THE REPORT
Accounting policies
This financial statement release has been drafted in accordance with IAS 34.
The principles adhered to in preparing the annual financial statements 2015
also apply to this financial statement release but new and amended IFRS
standards and interpretations effective in 2016 have been applied. Amended
standards and interpretations effective from the beginning of year 2016 have no
bearing on the figures presented for the report period.
As from half year financial report, Honkarakenne complies with the Guidelines
on Alternative Performance Measures (APM) issued by the European Securities and
Markets Authority (ESMA). An APM is a financial measure of performance other
than a financial measure defined or specified in IFRS. For this reason, the
term “adjusted” is used instead of previous term “without non-recurring items”.
As adjustment items, the company classifies significant business transactions
that are considered to affect comparisons between different reporting periods.
Such transactions include significant reorganisation expenses, impairment
losses or reversals thereof, and capital gains and losses on assets or other
significant income or costs of unusual business operations.
The figures have not been examined by the auditor.
Honkarakenne has three geographical operating segments that have been combined
into one segment for reporting purposes. Geographically, sales are divided as
follows: Finland & Baltics, Russia & CIS and Global Markets. The internal
reporting of the management is in line with IFRS reporting. For this reason,
separate reconciliations are not presented.
Property, plant and equipment
Unaudited Property, plant and
equipment
MEUR
Cost 1.1.2016 51.0
Increase 0.1
Disposals -1.1
Cost 31.12.2016 50.0
Accumulated depreciation 1.1.2016 -39.6
Accumulated depreciation of disposals and 0.9
reclassifications
Depreciation for the period -1.7
Accumulated depreciation 31.12.2016 -40.4
Carrying amount 1.1.2016 11.4
Carrying amount 31.12.2016 9.6
Adjustment items
The result for the financial year 2016 includes MEUR 0.4 costs related to the
efficiency-boosting programme kicked off in May and costs related to the
Sistema Finance S.A.’s voluntary public tender offer (costs classified as
adjustment items amounted to MEUR 0.8 in the previous year).
Own shares
Honkarakenne has not acquired its own shares during the report period. At the
end of the report period, the Group held 364,385 of its Honkarakenne B shares
with a total purchase price of EUR 1,381,750.23. These shares represent 6.99 %
of the company's all shares and 3.34 % of all votes. The purchase cost has been
deducted from shareholders' equity in the consolidated financial statements.
Contingent liabilities
Unaudited 31.12.2016 31.12.2015
MEUR
For own loans
- Mortgages 17.4 25.7
- Other quarantees 2.3 1.9
Rental liabilities 0.1 0.3
Leasing liabilities 0.1 0.2
Nominal values of forward exchange contracts 2.2 1.8
Derivative contracts 0.1 0.2
Events with related parties
The Group’s related parties consist of subsidiaries and associated companies;
the company's management and any companies in which they exert influence; and
those involved in the Saarelainen shareholder agreement and any companies
controlled by them. The management personnel considered to be related parties
comprise the Board of Directors, President & CEO, and the company's Executive
Group. The pricing of goods and services in transactions with related parties
conforms to market-based pricing.
During the report period, ordinary business transactions with related parties
were made as follows: sales of goods and services to related parties amounted
to EUR 258 thousand and trade receivables from related party amounting EUR 69
thousand and purchases from related parties amounted to EUR 410 thousand and
trade payables to related party amounting EUR 61 thousand.
As part of Honkarakenne’s financial arrangements Honkarakenne’s main owner
Saarelainen Oy has granted Honkarakenne an unsecured junior loan amounting MEUR
0.3. The junior loan is subordinated to bank loans.
In 2010 and 2011, Honkarakenne Oyj granted long-term loans totalling MEUR 0.9
to Honka Management Oy, which was earlier owned by the company’s senior
management. An impairment was recognised in 2014 and in 2015 for this loan in
the parent company, the total amount of these impairments is MEUR 0.4.
KEY INDICATORS
1-12 1-12
Unaudited 2016 2015
Earnings/share (EPS) euro -0.30 -0.23
Return on equity % -20 -13
Equity ratio % 41 37
Shareholders equity/share euro 1.38 1.61
Net financial liabilities MEUR 5.0 6.5
Gearing % 75 81
Gross investments MEUR 0.1 0.1
% of net sales 0.2 0.2
Order book MEUR 16.3 15.0
Average number of personnel Clerical 67 71
Workers 69 68
Total 136 139
Personnel in person-years, average Clerical 62 63
Workers 48 51
Total 110 115
Adjusted number of shares (’000) At period-end 4847 4847
Average during 4847 4847
period
CALCULATION OF KEY INDICATORS
Profit for the period
attributable to equity
holders of parent
Earnings/share (EPS): ------------------------------
------------------
Average number of outstanding
shares
Result before taxes – taxes
Return on equity %: ------------------------------ x 100
------------------
Total equity, average
Total equity
Equity ratio, %: ------------------------------ x 100
------------------
Balance sheet total - advances
received
Net financial liabilities: Financial liabilities – cash
and cash equivalents
Financial liabilities – cash
and cash equivalents
Gearing, %: ------------------------------ x 100
------------------
Total equity
Shareholders’ equity
Shareholders equity/share: ------------------------------
------------------
Number of outstanding shares at the
close of period
© 2024 Nasdaq, Inc. All Rights Reserved |