2017-02-21 07:30:24 CET
2017-02-21 07:30:24 CET
REGULATED INFORMATION
Incap - Financial Statement Release
Incap Group Financial Statement Release for 2016 (unaudited)
Incap Corporation
Financial Statement Release 21 February 2017 at 8.30 a.m.
(EET)
INCAP GROUP FINANCIAL STATEMENT RELEASE FOR 2016 (UNAUDITED)
Incap Group's revenue in 2016 increased by 26% and the operating profit grew by
19% year-on-year. The construction work of the factory expansion in India was
completed on schedule.
Key figures in January-December 2016
* The Group's revenue amounted to EUR 38.6 million, up 26% year-on-year (2015:
EUR 30.6 million).
* The Group's operating profit (EBIT) amounted to EUR 4.4 million, increasing
by 19% year-on-year (EUR 3.7 million).
* Net profit for the financial period amounted to EUR 2.7 million, i.e. 36%
higher than in 2015 (EUR 2.0 million).
* Following the share capital reduction carried out in 2016, there are
limitations to distribution of dividends. The Board of Directors will
propose to the Annual General Meeting that no dividend be paid.
* The company estimates that the Group's revenue in 2017 will be higher than
in 2016 and that the operating profit (EBIT) will be somewhat higher than in
2016.
Key figures in July-December 2016
* The revenue during the second half of the year amounted to EUR 20.8 million,
showing an increase of 20% compared with the corresponding period last year
(7-12/2015: EUR 17.3 million) and up 16% compared with the first half of the
year (1-6/2016: EUR 17.9 million).
* Operating profit (EBIT) for the second half of the year was EUR 2.2 million,
i.e. approximately at the same level than in the corresponding period last
year (7-12/2015: EUR 2.2 million) and on the first half of the year (1-
6/2016: EUR 2.2 million).
The accounting principles for the financial statements
This financial statement release has been prepared in accordance with
international financial reporting standards (IFRS) - IAS 34 Interim Financial
Reporting standard. When preparing the release, the same principles have been
used as in the 2015 financial statement. Unless otherwise stated, the comparison
figures refer to the same period in the previous year. The information in this
financial statement report is unaudited.
Ville Vuori, President and CEO of Incap Group:
"Business of Incap continued its strong development in 2016 after the change of
strategy and the growth leap seen in the previous year. Our operations model has
now been stabilised offering a solid basis for further expansion of operations.
During the financial period 2016 the company's target was to gain new customers
and new products to production, while at the same time securing the continued
high level of operational efficiency and quality. Here we have succeeded. Our
factories in Estonia and in India have developed their manufacturing capacity
and enhanced their sales operation. The construction work of the factory
expansion in India was completed on schedule and now we are ready to take new
products into production. The increased interest of our customers augurs well
for the continued good development.
Thanks to the new operations model we are able to react fast to the fluctuations
in customers' demand, which enhances our position in continuously changing
market situations.
Our revenue grew by 26% year-on-year and also the profitability in terms of EBIT
improved by 19%. Our equity ratio continued to improve and was close to 40% at
year end. Extremely price-sensitive marketplace and the general moderate
profitability levels in electronics manufacturing business are posing a
challenge for keeping up the EBIT level. We continued with the strict cost
management and did not lose our grip in tailwind either.
India is according to publicly available information currently the fastest
growing economy in the world with over 7% annual growth. The government of India
has set initiatives such as "Make in India" -program to facilitate the rise of
India as a manufacturing location for example in electronics. We have a great
opportunity and established position in this emerging marketplace. Further, we
trust that with our lean and efficient operations model we can win projects also
in highly competed European electronics market.
This been said, we aim at continued organic growth with a good rate while at the
same time keeping the profitability among the highest in the peer group.
Company's business model and strengthened financial position enable
considerations on expansion also by M&As."
Business environment in 2016
The business environment of Incap Group continued challenging, because the
competition in the global market for manufacturing services was fierce.
Financial prospects in Europe and Asia affected the customers' business. General
cost level remained stable in countries where Incap has operations. Prices of
components and raw materials showed a moderate trend.
Incap Group's revenue and earnings in July-December 2016
Revenue for the second half of the year amounted to EUR 20.8 million, showing an
increase of 20% year-on-year (7-12/2015: EUR 17.3 million) and being 16% higher
than in the first half of the year (1-6/2016: EUR 17.9 million). The revenue
increased from previous year both in Estonia and in India. Positive development
in the factory in Estonia was strengthened towards the end of the year both by
revenue and by profitability.
The operating profit (EBIT) for the second half of the year amounted to EUR 2.2
million, i.e. at the same level than in the corresponding period in 2015 (7-
12/2015: EUR 2.2 million) and during the first half of the year (1-6/2016: EUR
2.2 million). The net result for the second half of the year was EUR 1.5
million, compared with EUR 1.2 million on the corresponding period last year and
EUR 1.3 million in the first half of the year 2016.
Incap Group's revenue and earnings in 2016
Revenue for the financial period amounted to EUR 38.6 million, by approx. 26%
more than in 2015 (1-12/2015: EUR 30.6 million). The increase in revenue was a
result of growing demand of present customers and the production for new
customers. The weakening of Indian Rupee in relation to Euro decreased the
revenue by EUR 1.2 million year-on-year.
The profitability of Incap Group remained at good level. The full-year operating
profit (EBIT) amounted to EUR 4.4 million (EUR 3.7 million), being 11% out of
revenue which in the company's business, Electronics Manufacturing Services, is
in general terms considered to be on high level. The net result for the year
2016 was weakened by EUR 0.2 million due to the weakening of Indian Rupee in
relation to Euro.
Thanks to the lean operational model of the company, the overhead costs remained
low ensuring profitable operations and continued competitive edge.
Personnel expenses in the reporting period amounted to EUR 3.5 million (EUR 3.2
million). The growth was caused by increased manufacturing volumes and was
clearly more moderate than the growth rate of revenue. Other business costs
increased slightly year-on-year. As a result of the increasing business volume
the value of inventories increased from EUR 5.2 million to EUR 6.3 at the end of
the reporting period.
Net financial expenses amounted to EUR 0.6 million (EUR 0.5 million).
Depreciation amounted to a total of EUR 0.4 million (EUR 0.3 million).
Net profit for the period was EUR 2.7 million (EUR 2.0 million). Earnings per
share were EUR 0.63 (EUR 0.52).
1-12/2016 1-12/2015
COMPARISON BY REPORT PERIOD (1,000 euros)
Revenue 38,626 30,566
Operating profit/loss (EBIT) 4,386 3,692
Profit/loss for the period 2,742 2,012
Earnings per share, EUR *) 0.63 0.52
*) The number of shares was reduced during the report period based on the
resolution of the Annual General Meeting so that each 50 pieces of previous
share of the company now corresponds to one share. In practice, the number of
shares in the report period has been divided by 50. The corresponding periods
have been adjusted in the same way.
COMPARISON 1-6/2016 7-12/2016 1-6/2015 7-12/2015
BY 6-MONTH PERIOD
(1,000 euros)
Revenue 17,872 20,754 13,254 17,312
Operating profit/loss (EBIT) 2,202 2,184 1,478 2,213
Profit/loss for the period 1,265 1,476 845 1,167
Earnings per share, EUR 0.29 0.34 0.39 0.32
Investments
Investments in 2016 totalled EUR 1.0 million (EUR 0.9 million) and they were
mainly connected with the construction of the factory expansion in India.
Quality assurance and environmental issues
Incap Group's both factories have environmental management and quality assurance
systems certified by Bureau Veritas. The systems are used as tools for
continuous improvement. Incap is implementing the year 2015 versions of the
quality standards. Incap's environmental management system in India complies
with ISO 14001:2004, and its quality assurance system complies with ISO
9001:2008. These will be updated to the 2015 versions during the year 2017. The
environmental management system in the Estonian factory complies with ISO
14001:2015, and its quality assurance system complies with ISO 9001:2015. In
addition, the Kuressaare factory has ISO 13485:2003 quality certification for
the manufacture of medical devices, which will be updated to the 2015 version in
spring 2017.
Balance sheet, financing and cash flow
The balance sheet total on 31 December 20165 stood at EUR 21.7 million (EUR
18.1 million). The Group's equity at the close of the financial period was EUR
8.5 million (EUR 5.6 million). The parent company's equity totalled EUR 9.8
million, representing 983% of the share capital (EUR 9.4 million, 46%). The
Group's equity ratio improved by over 8 percentage points to 39.4% (31.2%).
Reducing the share capital of the parent company and transferring funds to the
unrestricted equity reserve was resolved in the Annual General Meeting on 6
April 2016, when it was resolved to reduce the share capital of the company from
EUR 20,486,769.50 by EUR 19,486,769.50 to cover the losses and to transfer funds
to the unrestricted equity reserve. The losses accumulated during previous
financial periods were covered by decreasing the unrestricted equity reserve by
EUR 16,804,218.62, the share premium account by EUR 44,316.59 and the share
capital by EUR 11,118,952.29. After covering the losses the remaining share
capital was further decreased by EUR 8,367,817.21 by transferring the funds to
the unrestricted equity reserve. After the reduction the new share capital of
the company is EUR 1,000,000 and the unrestricted equity reserve EUR
8,367,817.21. The reduced share capital was recorded into Trade Register on 31
August 2016.
Liabilities increased slightly to EUR 13.1 million compared with previous year
(EUR 12.5 million), of which EUR 8.0 million (EUR 7.9 million) were interest-
bearing liabilities.
Net debt remained at the same level than in previous year, amounting to EUR 5.6
million (EUR 5.6 million). Net gearing improved and was 66% (98%).
The Group rearranged in April 2016 its interest-bearing debt with the Finnish
bank. Following the arrangement the Group's costs for debt decreased and the
management was streamlined. The covenants of the new loans are among others
equity ratio and the Group's interest-bearing debt in relation to EBITDA, and
their status is reviewed every six months. In the review on 31 December 2016 the
target level of interest-bearing debt in relation to EBITDA was below 2.5 and
the equity ratio 25%. The company met these covenants and the actual figure
interest-bearing debt/EBITDA on the review date was 1.7 and the equity ratio
39.4%.
The Group's non-current interest-bearing liabilities amounted to EUR 3.8 million
(EUR 4.6 million) while the current interest-bearing liabilities were EUR 4.2
million (EUR 3.3 million). Out of the interest-bearing liabilities EUR 2.4
million are related to the Indian subsidiary (EUR 2.7 million). Other
liabilities include EUR 3.4 million of bank loans and limits granted by the
company's Finnish bank and EUR 2.2 million of factoring financing used in
Estonia.
As to the loans granted by the Indian bank the company has committed to follow
ordinary covenants and the bank's general loan conditions.
INSTALMENTS AND INTERESTS OF LOANS *)
(1,000 euros)
31 Dec 2016 Total 31 Dec 2015 Total
Less than 6 months 3,895 4,197
6-12 months 479 383
1-5 years 3,792 3,402
In total 8,165 7,981
*) The table does not include the pension liability of the Indian subsidiary,
which is EUR 0.3 million (EUR 0.3 million).
The Group's cash position during the report period was good. The Group's quick
ratio was 1.1 (1.1), and the current ratio was 1.8 (1.8).
Cash flow from operations was EUR 1.1 million (EUR 1.0 million). On 31 December
2016, the Group's cash and cash equivalents totalled EUR 2.3 million (EUR 2.1
million). The change in cash and cash equivalents showed an increase of EUR 0.2
million (increase of EUR 0.2 million).
Aspects related to the Group's financing and liquidity are also described in the
section "Short-term risks and factors of uncertainty concerning operations".
Personnel
At the end of 2016, Incap Group had a payroll of 514 employees (468). 85% (87%)
of the personnel worked in India, 14% (13%) in Estonia and 0.4% (0.4%) in
Finland. At the end of the year, 106 of Incap's employees were women (96) and
408 were men (372). Permanently employed staff totalled 205 (192) and the number
of fixed-term employment contracts was 309 (275). The company had one part-time
employment contract at the end of the period (1). The average age of the
personnel was 31 years (29).
Management and organisation
The duties of CEO of Incap were carried out by Ville Vuori (B.Sc. Eng., eMBA,
born 1973). At the end of the report period the Group's Management Team included
besides the CEO Ville Vuori also the local Managing Directors: Murthy Munipalli
in India and Otto Pukk in Estonia.
The company's organisation structure is lean. Along with the expansion of its
operations the company gave up the outsourced services in the management of
finance and administration and appointed Elina Liippola as CFO and member of
Management Team as from 1 January 2017. Tilistar Oy continues acting as Incap's
outsourced financial department. The Group's factories in Estonia and in India
operate as independent cost centres, which are responsible besides for the
actual order-delivery process also for the quotations and pricing.
Annual General Meeting 2016
The Annual General Meeting of Incap Corporation was held in Helsinki on 6 April
2016. A total of 20 shareholders participated in the meeting, representing
approximately 52.9% of all shares and votes in the company. The Annual General
Meeting adopted the financial statements for the financial period ended 31
December 2015 and decided, in accordance with the proposal of the Board of
Directors, that no dividend be distributed for the financial period and that the
loss for the financial period (EUR 772,720.93) be recognised in equity.
The Annual General Meeting resolved to reduce the share capital of the company
from EUR 20,486,769.50 by EUR 19,486,769.50 to cover the losses and to transfer
funds to the unrestricted equity reserve. The losses accumulated during previous
financial periods were covered by decreasing the unrestricted equity reserve by
EUR 16,804,218.62, the share premium account by EUR 44,316.59 and the share
capital by EUR 11,118,952.29. After covering the losses the remaining share
capital will further be decreased by EUR 8,367,817.21 transferring the funds to
the unrestricted equity reserve.
After the measures the new share capital of the company is EUR 1,000,000 and the
unrestricted equity reserve EUR 8,367,817.21. The parent company's equity
thereby exceeded the level set in the Companies Act, chapter 20, section 23.
Covering the losses clarified the balance sheet structure of the parent company
and improved the ratio between the company's equity and share capital. The
creditor protection procedure was required in the Companies Act. The reduction
of share capital was recorded in the Trade Register on 31 August 2016.
The Annual General Meeting further resolved on the reduction of the quantity of
company's shares by way of issuing new shares and by redemption of company's own
shares, in such a way that after the procedure each current 50 shares of the
company shall correspond to one share of the company. The arrangement took place
soon after the Annual General Meeting on 8 April 2016. The purpose of the
reduction of the quantity of company's shares was to improve the trade
conditions and the reliability of the price formation of the shares. The key
ratios per share for the report period as well as other periods presented in
this report have been adjusted accordingly.
Authorisation of the Board of Directors
The Annual General Meeting held on 6 April 2016 authorized the Board of
Directors to decide to issue a maximum of 440,000 new shares either against
payment or without payment. The new shares may be issued to the company's
shareholders in proportion to their current shareholdings in the company or
deviating from the shareholders' pre-emptive right through one or more directed
share issue, if the company has a weighty financial reason to do so, such as
developing the company's equity structure, implementing mergers and acquisitions
or other restructuring measures aimed at developing the company's business,
financing of investments and operations or using the shares as a part of the
company's remuneration and compensation system, to the terms and scope decided
by the Board of Directors. If the authorization is used to the maximum number of
new shares, new shares would represent 9.5% of all shares and votes in the
company.
The Board has not exercised the authorisation, which is valid until 6 April
2017.
Board of Directors and Auditor
Olle Hulteberg acted as the Chairman of the Board of Directors of Incap
Corporation. The Annual General Meeting held on 6 April 2016 re-elected Fredrik
Berghel, Olle Hulteberg, Susanna Miekk-oja, Rainer Toiminen and Carl-Gustaf von
Troil to the Board of Directors.
The Board convened 15 times in 2016 and the average attendance rate of Board
members was 90.7%.
The firm of independent accountants Ernst & Young Oy continued to act as the
company's auditor, with Bengt Nyholm, Authorised Public Accountant, appointed as
the principal auditor.
Report on Corporate Governance
Incap Corporation is complying with the Corporate Governance Code of Securities
Market Association, which is valid as from 1 January 2016 and is publicly
available at the website of Securities Market Association at www.cgfinland.fi.
The company will release a report on the company's corporate governance in
compliance with the Securities Market Act as a separate document in connection
with the publication of the Report of the Board of Directors and the Annual
Report in week 12/2017. The report is available at the company's website.
Shares and shareholders
Incap Corporation has one series of shares, and the number of shares at the end
of the period was 4 365 168 (31 December 2015: 218,228,070).
The number of shares was reduced as decided by the Annual General Meeting by way
of issuing new shares and by redemption of company's own shares, in such a way
that after the procedure each current 50 shares of the company shall correspond
to one share of the company. As a result of the measures the number of the
company's shares was decreased from 218,228,070 shares to 4,365,168 shares. The
new total number of shares was recorded in Trade Register on 9 April 2016 and
the trade with the new number of shares started in Nasdaq Helsinki on 11 April
2016.
During the financial period, the share price varied between EUR 8.65 and 4.95
(EUR 0.03 and 0.20). The closing price for the period was EUR 5.46 (EUR 0.16).
The market capitalisation on 31 December 2016 was EUR 23.8 million (EUR 34.3
million). At the end of financial period, the company had 2,861 shareholders
(2,806). Nominee-registered or foreign owners held 38.2% (41.9%) of all shares.
The company does not hold any of its own shares.
LARGEST SHAREHOLDERS Shares, Holding, %
on 31 December 2016 pcs
Nordea Bank AB (publ) Finland (nominee-registered) 1,306,545 29.9
Oy Etra Invest Ab 538,000 12.3
Ilmarinen Mutual Pension Insurance Company 332,308 7.6
Danske Bank Oyj 326,192 7.5
Laurila Kalevi Henrik 89,419 2.0
Penan Raudoitus Oy 76,762 1.8
Wiik Kenneth Matias 70,843 1.6
Onvest Oy 66,047 1.5
Suonpää Altti Allan 58,100 1.3
Oy Kontino Invest Ab 56,440 1.3
10 largest in total 2,920,656 66.9
At the end of the financial period 2016, the members of Incap Corporation's
Board of Directors and the President and CEO and their interest parties owned a
total of 1,289,737 shares or approximately 29.5% of the company's shares
outstanding.
Announcements in accordance with Section 10 of Chapter 9 of the Securities
Market Act on a change in holdings
The company had no announcements in accordance with Section 10 of Chapter 9 of
the Securities Market Act during the financial period.
Risk management
The Risk Management Policy approved by the Board of Incap Corporation classifies
risks as risks connected to the operating environment, operational risks and
damage and funding risks. The company's risk management is mainly focused on
risks that threaten the company's business objectives and continuity of
operations. In order to improve its business opportunities, the company is
willing to take on managed risks within the scope of the Group's risk management
capabilities. The company regularly reviews its insurance policies as part of
its risk management system.
Short-term risks and factors of uncertainty concerning operations
General risks related to the company's business operations and sector include
the development of customer demand, price competition in contract manufacturing,
successful acquisition of new customers, availability and price development of
raw material and components, sufficiency of funding, liquidity and exchange rate
fluctuations.
As a result of the improved profitability the company's financing position is
good and the sufficiency of financing and working capital are at the moment
posing no remarkable risk.
Based on the cash flow estimate prepared in connection with the financial
statement, the company estimates that the company's working capital will cover
the company's requirement for the next 12 months.
In the definition of the volumes of internal transactions the actual value added
and the so-called "arm's length" principle are considered. After the cumulative
losses in India were covered during the latter half of 2015, it is possible to
repatriate profits also through dividends.
The value of the shares in subsidiaries in the parent group has a significant
impact on the parent company's equity and therefore on, for example, equity
ratio. Based on the value calculations in connection with the financial
statements for 2016 there is no need for any decrease of the value of the shares
in subsidiaries. However, based on the company's estimate there is a risk
connected with the valuation of the shares of the Estonian subsidiary because of
the previous unprofitable operations of the subsidiary. There is no such risk in
the valuation of the subsidiary in India.
Demand for Incap's services and the company's financial position are affected by
global economic trends and the fluctuation among customer industries. Even
though the business environment in 2017 is estimated to continue challenging,
the general financial development is considered to have no remarkable negative
effect on the demand or the solvency of the customers. The customer relationship
management is of utmost importance in a challenging market situation and the
management is paying special attention to this.
The company's sales are spread over several customer sectors balancing out the
impact of the economic fluctuation in different industrial sectors. In 2016,
there were three customers in the Group with a revenue exceeding 10% of the
total revenue of the Group. The combined revenue of these three customers was
approximately 73% of the Group's revenue.
The company's operating segment, electronics manufacturing services, is highly
competitive and there are major pressures on cost level management. The company
has succeeded in increasing the efficiency of its operations and in lowering the
costs. Furthermore, the company's production is located in countries with
competitive levels of wage and general costs.
The most significant exchange rate risk of the company is related to the Indian
subsidiary. A remarkable part of the Group's operations is located in India. The
fluctuation in the exchange rates between Indian Rupee and Euro may have a
remarkable effect on revenue and result.
The Indian subsidiary of the company had a tax audit in the report period. As a
result, the tax authorities do not approve the depreciations made on the
capitalized customer contracts during accounting periods 2008/2009-2012/2013 and
the transfer costs during the accounting period 2011/2012. The estimated tax
effect with eventual increases is amounting to a total of EUR 0.4 million. The
company has raised a complaint on these tax issues and is presenting the tax
debt in the off balance sheet liabilities in the balance sheet.
Events after the end of the period
There are no remarkable events after the end of the period.
Strategy and targets
The positive trend in profitability has enabled the strong development of the
company ensuring the future growth. The operational model of the company has
been tuned up to be efficient, allowing fast decision-making and operational
flexibility. In 2017 the company is targeting at increasing the business volumes
further and creating prerequisites to expand the operations also by M&As.
Outlook for 2017
Incap's estimates for future business development are based both on its
customers' forecasts and on the company's own assessments.
Due to the continued uncertainty in world economy it is very difficult to
predict the development of customer demand. Most of the company's customers are
indicating that their own demand will grow in 2017.
The electronics manufacturing volumes in Incap's factory in Kuressaare have
grown steadily and the positive development is expected to continue.
Inauguration of the new factory extension in India improves the possibilities to
increase the revenue further.
The Group's revenue in 2017 is estimated to be higher than in 2016 and the
operating profit (EBIT) is estimated to be somewhat higher than in 2016,
provided that there are no major changes in exchange rates.
Board of Directors' proposal on measures related to the result
The parent company's profit for the financial period totalled EUR 464,201.93.
The Board of Directors will propose to the Annual General Meeting on 18 April
2017 that no dividend be paid and the result for the financial period be
recognised in equity.
Because of the share capital reduction carried out by the decision of the Annual
General Meeting, there are limitations for distribution of dividends until the
year 2019.
Annual General Meeting 2017
The Annual General Meeting will be held on Tuesday, 18 April 2017 at 3 p.m. at
BANK/Wall street, Unioninkatu 20, 00130 Helsinki. Notice to the Annual General
Meeting will be given on 21 March 2017.
Publication of the annual report 2016
The annual report of Incap Group including the Report of the Board of Directors
and the Auditor's report for 2016 will be published during week 12/2017 at the
company's website www.incapcorp.com.
Financial reporting of Incap in 2017
Incap will publish the Half-year Report in compliance with IAS 34 for January-
June 2017 on Wednesday, 23 August 2017 as well as financial business reports for
January-March on Tuesday, 16 May 2017 and for January-September on Tuesday, 14
November 2017.
In Helsinki, 20 February 2017
INCAP CORPORATION
Board of Directors
For additional information, please contact:
Ville Vuori, President and CEO, tel. +358 400 369 438
Distribution:
Nasdaq Helsinki Ltd
Principal media
The company's home page www.incapcorp.com
ANNEXES
1 Consolidated Statement of Comprehensive Income
2 Consolidated Balance Sheet
3 Consolidated Cash Flow Statement
4 Consolidated Statement of Changes in Equity
5 Group Key Figures and Contingent Liabilities
6 Quarterly Key Figures
7 Calculations of Key Figures
INCAP IN BRIEF
Incap Corporation is an international contract manufacturer. Incap's customers
are leading suppliers of high-technology equipment in their own business
segments, and Incap increases their competitiveness as a strategic partner.
Incap has operations in Finland, Estonia, India and China, and the company
currently employs approximately 520 people. Incap's share is listed on the
Nasdaq Helsinki Ltd. as from 1997. Additional information: www.incapcorp.com.
Annex 1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS), CONTINUING OPERATIONS
-------------------------------------------------------------------------------
(1,000 euros, unaudited)
1-12/2016 Change, % 1-12/2015 7-12/2016 7-12/2015
-------------------------------------------------------------------------------
REVENUE 38,626 26% 30,566 20,754 17,312
Change in inventories of
finished goods 575 249% 165 266 -30
Other operating income 246 582% 36 219 8
Raw materials and
consumables used 28,519 35% 21,147 15,564 11,973
Personnel expenses 3,531 12% 3,154 1,782 1,550
Depreciation, amortisation
and impairment losses 369 10% 337 199 182
Other operating expenses 2,643 8% 2,437 1,509 1,371
OPERATING PROFIT/LOSS 4,386 19% 3,692 2,184 2,213
Financing income and
expenses -553 18% -470 -294 -276
PROFIT/LOSS BEFORE TAX 3,833 19% 3,222 1,890 1,938
Income tax expenses -1,091 -10% -1,210 -414 -771
PROFIT/LOSS FOR THE PERIOD 2,742 36% 2,012 1,476 1,167
Earnnings per share, euro *) 0.63 21% 0.52 0.34 0.32
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OTHER COMPREHENSIVE INCOME 1-12/ Change, % 1-12/ 7-12/ 7.-12/
2016 2015 2016 2015
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Items that may be recognised in profit or
loss at a later date:
Translation differences from foreign units 158 -26% 215 407 -153
Other comprehensive income, net 158 215 407 -153
TOTAL COMPREHENSIVE INCOME 2,900 30% 2,227 1,883 1,014
Attributable to:
Shareholders of the parent company 2,900 30% 2,227 1,883 1,014
Non-controlling interest 0 0 0 0
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*) The number of shares was reduced during the report period based on the
resolution of the Annual General Meeting so that each 50 pieces of previous
share of the company now corresponds to one share. In practice, the number of
shares in the report period has been divided by 50. The corresponding periods
have been adjusted in the same way.
Annex 2
CONSOLIDATED BALANCE SHEET (IFRS), CONTINUING OPERATIONS
-------------------------------------------------------------------------------
(EUR thousands, unaudited) 31 December 2016 Change, % 31 December 2015
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ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 2,883 29% 2,230
Goodwill 944 1% 938
Other intangible assets 40 -34% 61
Other financial assets 6 -6% 6
Other receivables 863 -2% 878
TOTAL NON-CURRENT ASSETS 4,736 15% 4,113
CURRENT ASSETS
Inventories 6,280 21% 5,172
Trade and other receivables 8,320 23% 6,771
Cash and cash equivalents 2,347 14% 2,068
TOTAL CURRENT ASSETS 16,947 21% 14,011
TOTAL ASSETS 21,683 20% 18,124
TOTAL EQUITY AND LIABILITIES
Equity attributable to equity
holders of the parent company
Share capital 1,000 -95% 20,487
Share premium account 0 -100% 44
Reserve for invested unrestricted
equity 11,028 -43% 19,464
Exchange differences -515 -24% -673
Retained earnings -2,966 -91% -33,675
TOTAL EQUITY 8,547 51% 5,647
NON-CURRENT LIABILITIES
Interest-bearing loans and
borrowings 3,752 -18% 4,567
NON-CURRENT LIABILITIES 3,752 -18% 4,567
CURRENT LIABILITIES
Trade and other payables 5,161 12% 4,607
Current interest-bearing loans and
borrowings 4,223 28% 3,303
CURRENT LIABILITIES 9,383 19% 7,910
TOTAL EQUITY AND LIABILITIES 21,683 20% 18,124
-------------------------------------------------------------------------------
Annex 3
CONSOLIDATED CASH FLOW STATEMENT (IFRS), CONTINUING OPERATIONS
--------------------------------------------------------------------------
(EUR thousands, unaudited) 1-12/2016 1-12/2015
--------------------------------------------------------------------------
Cash flow from operating activities
Operating profit 4,386 3,692
Adjustments to operating profit 508 316
Change in working capital -1,775 -1,419
Interest paid and payments made -512 -918
Interest received 6 85
Paid tax and tax refund -1,486 -763
Cash flow from operating activities 1,126 992
Cash flow from investing activities
Capital expenditure on tangible and intangible assets -982 -940
Capital gain on shares 0 268
Cash flow from investing activities -982 -672
Cash flow from financing activities
Proceeds from share issue 0 1,993
Drawdown of loans 4,712 2,996
Repayments of borrowings -4,612 -5,159
Cash flow from financing activities 100 -169
Change in cash and cash equivalents 245 151
Cash and cash equivalents at beginning of period 2,068 1,873
Effect of changes in exchange rates 35 43
Cash and cash equivalents at end of period 2,347 2,068
--------------------------------------------------------------------------
Annex 4
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS), CONTINUING OPERATIONS
-------------------------------------------------------------------------------
(EUR thousands, Share Share Reserve for Exchange Retained Total
unaudited) capital premium invested differences earnings
account unrestricted
equity
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Equity at 1 20,487 44 19,464 -673 -33,675 5,647
January 2016
-------------------------------------------------------------------------------
Total
comprehensive 2,742 2,742
income
-------------------------------------------------------------------------------
Currency
translation 158 158
differences
-------------------------------------------------------------------------------
Transactions
with
shareholders
-------------------------------------------------------------------------------
Other changes -19,487 -44 -8,436 27,967 0
*)
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Equity at 31 1,000 0 11,028 -515 -2,966 8,547
December 2016
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Equity at 1 20,487 44 17,471 -888 -35,687 1,427
January 2015
-------------------------------------------------------------------------------
Total
comprehensive 2,012 2,012
income
-------------------------------------------------------------------------------
Currency
translation 215 215
differences
-------------------------------------------------------------------------------
Transactions
with 2,182 2,182
shareholders
-------------------------------------------------------------------------------
Other changes -189 -189
-------------------------------------------------------------------------------
Equity at 31 20,487 44 19,464 -673 -33,675 5,647
December 2015
-------------------------------------------------------------------------------
*) The Annual General Meeting held on 6 April 2016 decided that the losses
accumulated during the financial period ending on 31 December 2015 and during
previous financial periods will be covered by decreasing the unrestricted equity
reserve by EUR 16,804,218.62, the share premium account by EUR 44,316.59 and the
share capital by EUR 11,118,952.29. After covering the losses the remaining
share capital was further decreased by EUR 8,367,817.21 by transferring the
funds to the unrestricted equity reserve.
Annex 5
GROUP KEY FIGURES AND CONTINGENT LIABILITIES (IFRS), CONTINUING OPERATIONS
------------------------------------------------------------------------
(unaudited) 31 Dec 2016 31 Dec 2015
------------------------------------------------------------------------
Revenue, EUR million 38.6 30.6
Operating profit/loss, EUR million 4.4 3.7
% of revenue 11.0 12.1
Profit/loss before taxes, EUR million 3.8 3.2
% of revenue 10.0 10.5
Return on investment (ROI), % 29.6 26.0
Return on equity (ROE), % 38.6 56.9
Equity ratio, % 39.4 31.2
Net Gearing, % 65.8 98.3
Net debt, EUR million 5.6 5.6
Quick ratio 1.1 1.1
Current ratio 1.8 1.8
Average number of shares during the review 4,365,168 3,835,433
period, adjusted for share issues
Earnings per share (EPS), EUR 0.63 0.52
Equity per share, EUR 1.96 1.29
Dividend per share, EUR 0 0
Dividend out of profit, % 0 0
P/E ratio 8.7 15.3
Trend in share price
Minimum price during the period, EUR 4.95 0.03
Maximum price during the period, EUR 8.65 0.20
Mean price during the period, EUR 6.43 0.12
Closing price at the end of the period, EUR 5.46 0.16
Total market capitalisation, EUR million 23.8 34.3
Trade volume, no. of shares 40,565,856 123,997,394
Trade volume, % 929 57
Investments, EUR million 1.0 0.9
% of revenue 2.5 3.0
Average number of employees 511 425
CONTINGENT LIABILITIES, EUR million
FOR OWN LIABILITIES
Mortgages and pledges 14.6 14.6
Off-balance sheet liabilities 3.0 1.4
------------------------------------------------------------------------
Annex 6
KEY FIGURES BY REPORT PERIOD (IFRS), CONTINUING OPERATIONS
-------------------------------------------------------------------------------
1-12/ 1-12/ 7-12/ 7-12/ 1-6/ 1-6/
2016 2015 2016 2015 2016 2015
-------------------------------------------------------------------------------
Revenue, EUR 38.6 30.6 20.8 17.3 17.9 13.3
million
Operating profit, 4.4 3.7 2.2 2.2 2.2 1.5
EUR million
% of revenue 11.0 12.0 10.5 13.0 12.3 11.0
Profit before 3.8 3.2 1.9 1.9 1.9 1.3
taxes, EUR million
% of revenue 10.0 11.0 9.1 11.0 10.9 10.0
Return on
investment (ROI), 29.6 26.0 24.0 22.8 32.9 19.2
%
Return on equity 38.6 56.9 38.8 45.4 41.1 55.8
(ROE), %
Equity ratio, % 39.4 31.2 39.4 31.2 35.0 26.3
Net Gearing, % 65.8 98.3 65.8 98.3 87.0 100.4
Net debt, EUR 5.6 5.6 5.7 5.6 5.8 4.7
million
Average number of
shares during the
review period, 4,365,168 3,835,433 4,365,168 3,657,119 4,365,168 2,194,338
adjusted for share
issues
Earnings per share 0.63 0.52 0.34 0.32 0.29 0.39
(EPS), EUR
Equity per share, 1.96 1.29 1.96 0.03 1.53 1.06
EUR
Investments, EUR 1.0 0.9 0.4 0.2 0.6 0.7
million
% of revenue 2.5 3.0 1.8 1.1 3.4 5.5
Average number of 511 425 525 456 498 393
employees
-------------------------------------------------------------------------------
Annex 7
CALCULATION OF KEY FIGURES
100 x (profit/loss for the period + financial
Return on investment, % expenses)
---------------------------------------------------
equity + interest-bearing financing loans
Return on equity, % 100 x profit/loss for the period
---------------------------------------------------
average equity during the financial period
Equity ratio, % 100 x equity
---------------------------------------------------
balance sheet total - advances received
Net gearing, % 100 x net debt
---------------------------------------------------
equity
Net debt Interest-bearing debt - cash and bank accounts
Quick ratio current assets
---------------------------------------------------
short-term liabilities - short-term advances
received
Current ratio current assets + inventories
---------------------------------------------------
short-term liabilities
Earnings per share net profit/loss for the period
---------------------------------------------------
average number of shares during the period,
adjusted for share issues
Equity per share equity
---------------------------------------------------
number of shares at the end of the period,
adjusted for share issues
VAT-exclusive working capital acquisitions,
Capital expenditure without deduction of investment subsidies
average of personnel numbers calculated at the end
Average number of employees of each month
closing price for the period x number of shares
Total market capitalisation available for public trading
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