2012-03-08 08:00:00 CET
2012-03-08 08:00:05 CET
SÄÄNNELTY TIETO
Efore - Interim report (Q1 and Q3)
EFORE GROUP INTERIM REPORT NOVEMBER 1, 2011 – JANUARY 31, 2012 – SLOW START OF THE FISCAL YEAR AS PREVIOUSLY ESTIMATED, GUIDANCE UNCHANGED
Espoo, Finland, 2012-03-08 08:00 CET (GLOBE NEWSWIRE) -- EFORE PLC Interim
Report March 8, 2012 9.00 a.m.
First quarter in brief (November 1, 2011 — January 31, 2012)
- Net sales totaled EUR 14.8 million (EUR 21.9 million)
- Results from operating activities totaled EUR -0.8 million (EUR 1.1 million)
- Result before taxes was EUR -1.2 million (EUR 1.0 million)
- Result for the period was EUR -1.1 million (EUR 0.5 million)
- Earnings per share was EUR -0.03 (EUR 0.01)
Fiscal year 2012 financial estimate remains unchanged. Efore estimates to
reach at least EUR 80 million net sales and result from operating activities
without one-time costs is expected to be positive but staying below the fiscal
year 2011 level.
Vesa Vähämöttönen, Efore's President and CEO:
“As previously estimated new fiscal year started slowly. Efore's main customers
consumed their inventories and also Chinese New Year's holidays in the first
quarter weakened the demand. Inventory levels have now mainly balanced and full
year guidance remains the same.”
NET SALES AND FINANCIAL DEVELOPMENT IN THE FIRST QUARTER
Net sales in the first quarter amounted to EUR 14.8 million (EUR 21.9 million).
Net sales by customer group were as follows: Telecommunication 73.0 %(78.8%)
and industrial electronics 27.0% (21.2%). Geographically Efore's deliveries
were to the following areas: EMEA EUR 6.6 million (EUR 6.9 million), APAC EUR
5.5 million (EUR 11.4 million), Finland EUR 2.5 million (EUR 2.8 million) and
the Americas EUR 0.3 million (EUR 0.8 million) which totaled EUR 14.8 million
(EUR 21.9 million). Final geographical distribution of Efore's products
deviates from the before mentioned as Efore's customers distribute further the
products from the logistics centers to other markets.
The results from operating activities amounted to EUR -0.8 million (EUR 1.1
million).
BUSINESS DEVELOPMENT
Investment on technology and product development during the first quarter was
EUR 1.7 million (EUR 1.7 million) representing 11.8% (7.6%) of net sales.
As previously estimated new fiscal year started slowly. Efore's main customers
consumed their inventories and also Chinese New Year's holidays in the first
quarter weakened the demand.
Demand of Efore's industrial electronics continued stable. Deliveries of EMP
protected power supply system cabinets to government's security network project
(TUVE) ordered by the Finnish Defence Forces continued as planned.
Efore negotiates with Chinese companies in electric vehicles (EV) industry
about cooperation models to reach the access to the market. Development of EV
power electronics product family is progressing as planned.
First quarter results from operating activities include one-time costs and
income of approximately EUR 0.1 million related to discontinued operations of
Estonia factory.
INVESTMENTS
Group investments in fixed assets during the period under the review amounted
to EUR 0.7 million (EUR 1.0 million) of which product development costs were
EUR 0.2 million.
At the end of the period under the review capitalized product development costs
amounted to EUR 0.8 million (EUR 0.9 million).
FINANCIAL POSITION
The Group's financial position during the period under the review was good.
The consolidated interest-bearing cash reserves exceeded interest-bearing
liabilities by EUR 3.1 million (EUR 4.2 million) at the end of the period under
the review. The consolidated net financial costs were EUR 0.4 million (EUR 0.1
million). The cash flow from business operations was EUR -0.1 million (EUR 2.6
million). The cash flow after investment was EUR -0.8 million (EUR 1.6
million).
The Group's solvency ratio was 54% (46.7%) and the gearing was -13.0% (-20.3%).
Liquid assets excluding undrawn credit facilities totaled EUR 9.4 million (EUR
7.1 million) at the end of the period under the review. The balance sheet
total was EUR 44.7 million (EUR 44.8 million).
PERSONNEL
The number of the Group's personnel, including temporary personnel averaged 808
(888) during the period under the review and at the end of the period under the
review it was 794 (904). At the end of January 2012 more than 90% of the
personnel worked outside of Finland.
SHARES, SHARE CAPITAL AND SHAREHOLDERS
The total number of Efore Plc shares at the end of the period under the review
was 42.529.648 and the registered share capital was EUR 15.000.000.
Based on the authorization given by the Annual General Meeting on February 10,
2011 and as a part of Efore Group management shareholding program Efore offered
a maximum of 273,842 treasury shares held by the Company in a directed share
issue against payment to Efore Management Oy, a holding company owned by the
management. The subscription price of the share was EUR 0.82 per share, which
was the trade volume weighted average quotation of the Company's share on
NASDAQ OMX Helsinki Ltd on 9 January 2012. All the shares were subscribed and
paid on January 13, 2012. At the end of the period under the review, after the
share issue, the company held a total of 587,693 Efore shares and Efore
Management Oy, a company belonging to Efore group owned 2 358 242 Efore shares.
The highest share price during the period under the review was EUR 0.94 and the
lowest price was EUR 0.68. The average price during the period under the review
was EUR 0.79 and the closing price was EUR 0.83. The market capitalization
calculated at the final trading price of the period under the review was EUR
32.9 million.
The total number of Efore shares traded on the Nasdaq OMX Helsinki during the
period under the review was 4.2 million and their turnover value was EUR 3.3
million. This accounted for 10.7% of the total number of outstanding shares.
The number of shareholders totaled 3 348 (3 317) at the end of the period under
the review.
DECISIONS OF THE ANNUAL GENERAL MEETING
A separate stock exchange bulletin has been issued on resolutions of the Annual
General Meeting of Shareholders and the authorizations granted for the Board of
Directors on February 10, 2012.
ACCOUNTING POLICIES
The interim report has been drawn up in accordance with IAS 34 Standard on
Interim Financial Reporting and the Group's accounting principles presented in
the 2011 Financial Statements. 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
SHORT-TERM RISKS AND FACTORS OF UNCERTAINTY
The demand fluctuation typical for the market can still 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 capability serve its
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.
EVENTS AFTER THE PERIOD UNDER THE REVIEW
In order to improve Efore's profitability and competitiveness of its industrial
business Efore's Board of Directors has made a decision on March 7 to transfer
its production from Estonia to China and to discontinue the production of
Estonia factory by October 31, 2012. According to the decision the Group's
personnel will be reduced approximately by 120 persons. Efore estimates
one-time costs to be approximately EUR 1.8 million and these will be reported
for the current fiscal year. With this plan Efore aims to improve its annual
profitability by EUR 1.6 million.
OUTLOOK
The fundamentals for long-term positive development of wireless network
equipment industry are expected to remain unchanged and therefore
telecommunications network market is estimated to grow compared to previous
year.
Efore estimates its position in its main market area, power products for
telecommunication, to remain strong.
Inventories at the main customers are now mainly on normal level and fully they
are estimated to balance during the first half of the fiscal year 2012.
FINANCIAL ESTIMATE FOR THE FISCAL YEAR 2012
Slow first months of the fiscal year 2012 will effect to the whole year. Efore
estimates to reach at least EUR 80 million net sales for full fiscal year 2012.
Fiscal year 2012 result from operating activities without one-time costs is
expected to be positive but staying below the fiscal year 2011 level.
TABLES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million Nov./11- Nov./10- Nov./10-
Jan./12 Jan./ 11 Oct./11
3 months 3 months 12 months
Net sales 14,8 21,9 88,1
Change in inventories of
finished goods and work in progress 0,6 1,7 2,5
Other operating income 0,4 0,0 0,2
Materials and services -10,6 -16,6 -61,7
Employee benefits expenses -3,5 -3,5 -15,1
Depreciation -0,8 -0,7 -2,6
Other operating expenses -1,8 -1,7 -6,9
RESULTS FROM OPERATING ACTIVITIES -0,8 1,1 4,4
% net sales -5,7 5,1 5,0
Financing income 0,4 0,0 1,3
Financing expenses -0,8 -0,2 -1,3
Share of profit of associated
companies 0,0 0,0 0,1
RESULT BEFORE TAX -1,2 1,0 4,5
% net sales -8,3 4,6 5,1
Tax on income from operations 0,2 -0,5 -1,0
RESULT FOR THE PERIOD -1,1 0,5 3,4
OTHER COMPREHENSIVE INCOME:
Translation differences 1,0 0,2 0,4
Total comprehensive income 0,0 0,7 3,9
NET PROFIT/LOSS ATTRIBUTABLE
To equity holders of the parent -1,0 0,5 3,5
To non-controlling interest 0,0 0,0 0,0
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
Equity holders of the parent 0,0 0,7 3,9
Non-controlling interest 0,0 0,0 0,0
EARNINGS PER SHARE CALCULATED ON PROFIT
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT:
Earnings per share, basic,eur -0,03 0,01 0,09
Earnings per share, diluted, eur -0,03 0,01 0,09
INFORMATION ABOUT GEOGRAPHICAL Nov./11- Nov./10- Nov./10-
AREAS, EUR million Jan./12 Jan./ 11 Oct./11
3 months 3 months 12 months
Americas 0,3 0,8 2,8
EMEA 6,6 6,9 32,9
FINLAND 2,5 2,8 11,9
APAC 5,5 11,4 40,6
Total 14,8 21,9 88,1
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
EUR million Jan. 31, Jan. 31, change Oct. 31,
2012 2011 % 2011
ASSETS
NON-CURRENT ASSETS
Intangible assets 1,4 1,5 1,4
Tangible assets 7,1 4,9 6,8
Investments in associates 0,0 0,6 0,0
Other long-term investments 0,0 0,0 0,0
NON-CURRENT ASSETS 8,5 7,0 20,4 8,2
CURRENT ASSETS
Inventories 14,2 12,5 13,0
Trade receivables and other receivables 12,3 18,1 17,3
Tax receivable, income tax 0,4 0,0 0,1
Cash and cash equivalents 9,4 7,1 11,2
CURRENT ASSETS 36,2 37,8 -4,1 41,7
ASSETS 44,7 44,8 -0,3 49,9
EQUITY AND LIABILITIES
EQUITY
Share capital 15,0 15,0 15,0
Treasury shares -2,1 -2,1 -2,1
Other reserves 21,9 21,9 21,9
Translation differences 1,6 0,3 0,6
Retained earnings -12,6 -14,5 -11,6
Equity attributable to equity holders of 23,8 20,6 23,8
the parent
Equity attributable to non-controlling 0,3 0,3 0,3
interests
EQUITY 24,1 20,9 15,3 24,1
NON-CURRENT LIABILITIES
Deferred tax liabilities 0,0 0,0 0,0
Interest-bearing liabilities 3,1 2,3 3,3
NON-CURRENT LIABILITIES 3,1 2,3 33,2 3,3
CURRENT LIABILITIES
Interest-bearing liabilities 3,2 0,6 4,1
Trade payables and other liabilities 13,9 20,6 17,9
Tax liabilities 0,0 0,0 0,3
Provisions 0,3 0,4 0,3
CURRENT LIABILITIES 17,5 21,6 22,5
LIABILITIES 20,6 23,9 25,8
TOTAL EQUITY AND LIABILITIES 44,7 44,8 -0,3 49,9
GROUP KEY FIGURES, EUR million Nov./11- Nov./10- Nov./10-
Jan./12 Jan./ 11 Oct./11
3 months 3 months 12 months
Earnings per share, basic,eur -0,03 0,01 0,09
Earnings per share, diluted, eur -0,03 0,01 0,09
Equity per share, eur 0,60 0,52 0,60
Solvency ratio,% 54,0 46,7 48,3
Return on equity-%(ROE) -17,5 10,3 15,5
Return on investment-%(ROI) -14,5 18,3 17,5
Gearing, % -13,0 -20,3 -16,3
Net interest-bearing liabilities -3,1 -4,2 -3,9
Investments (intangible and tangible assets) 0,7 1,0 4,4
as percentage of net sales 4,7 4,5 5,0
Average personnel 808 888 960
CONSOLIDATED STATEMENT OF CASH FLOWS Nov./11 Nov./10 change Nov./10
- - -
EUR million Jan. Jan./11 % Oct./11
/12
Cash flows from operating activities
Cash receipts from customers 21,8 24,2 91,9
Cash paid to suppliers and employees -21,6 -21,4 -86,4
Cash generated from operations 0,3 2,9 5,5
Interest paid 0,0 0,0 -0,1
Interest received 0,0 0,0 0,1
Other financial items -0,4 -0,1 -0,5
Income taxes paid 0,0 -0,2 -0,6
Net cash from operating activities (A) -0,1 2,6 -104,9 4,3
Cash flows from investing activities
Purchase of tangible and intangible assets -0,7 -1,0 -4,3
Proceeds from sale of tangible and intangible 0,0 0,0 0,1
assets
Disposal of associated companies 0,0 0,0 0,5
Dividend received and repayment of capital 0,0 0,0 1,0
Net cash used in investing activities (B) -0,7 -1,0 -31,1 -2,8
Cash flows from financing activities
Capital invest by the minority 0,0 0,0 0,0
Proceedings from short-term borrowings 0,0 0,0 3,3
Repayment of short-term borrowings -1,1 0,0 0,0
Proceeds from long-term borrowings 0,0 0,0 1,1
Repayment of long-term borrowings -0,3 -0,3 -0,5
Financial leasing repayment 0,0 -0,1 -0,2
Net cash used in financing activities (C) -1,3 -0,3 3,7
Net increase/decrease in cash and cash
equivalents (A+B+C) -2,1 1,3 5,3
Cash and cash equivalents at beginning of 11,2 5,9 5,9
period on Nov.1
Net increase/decrease in cash and cash -2,1 1,3 5,3
equivalents
Effects of exchange rate fluctuations on cash 0,3 0,0 0,1
held
Cash and cash equivalents at end of period on 9,4 7,1 11,2
Jan. 31
GROUP CONTINGENT LIABILITIES Jan. Jan. Oct.
31, 31, 31,
EUR million 2012 2011 2011
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 1,6 1,1
1-5 years 0,6 1,6 0,8
Fair values of derivate financial instruments
Currency derivatives, not hedge
Option contract
Nominal amount 5,4 1,5 5,2
Negative fair value 0,0 0,0 0,0
THE FOLLOWING TRANSACTIONS WERE Jan. Jan. Oct.
31, 31, 31,
CARRIED OUT WITH RELATED PARTIES: 2012 2011 2011
EUR million
Associated companies
Purchases 0,0 0,0 0,0
Liabilities 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 0,1 -15,0 19,9 0,3 20,2
Nov.1, 2010
Comprehensive income 0,0 0,0 0,0 0,0 0,2 0,5 0,7 0,0 0,7
Equity 15,0 -2,1 20,9 1,0 0,3 -14,5 20,6 0,3 20,9
January 31, 2011
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 -1,0 0,0 0,0 0,0
Capital invest by the 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
minority
Equity 15,0 -2,1 20,9 1,0 1,6 -12,6 23,8 0,3 24,1
January 31, 2012
31.1.2012
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.
Equity is the equity owned by the holders of the parent company's
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 January 31, 2012.
EFORE PLC
Board of Directors
For further information please contact Mr.Vesa Vähämöttönen, President and CEO,
on March 8, 2012 at 9 - 11 a.m., tel. +358 9 4784 6312
Efore Plc will hold a news conference regarding the report for analysts and
media on March 8, 2012 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
units are located in China and in Estonia. Efore is present also in Sweden. In
the fiscal year ending in October 2011, consolidated net sales totaled EUR 88,1
million and the Group's personnel averaged 960. The company's share is quoted
on the Nasdaq OMX Helsinki Ltd. www.efore.com
Mr.Vesa Vähämöttönen, President and CEO, tel. +358 9 4784 6312
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