2011-03-03 08:00:00 CET
2011-03-03 08:00:03 CET
REGULATED INFORMATION
Efore - Interim report (Q1 and Q3)
EFORE GROUP INTERIM REPORT NOVEMBER 1, 2010 - JANUARY 31, 2011 (3 months)
Espoo, Finland, 2011-03-03 08:00 CET (GLOBE NEWSWIRE) -- EFORE PLC Interim
Report March 3, 2011 9.00 a.m.
EFORE GROUP INTERIM REPORT NOVEMBER 1, 2010 - JANUARY 31, 2011 (3 months)
First quarter in brief (November 1, 2010 — January 31, 2011)
- Net sales totaled EUR 21.9 million (EUR 14.3 million)
- The result of operating activities was EUR 1.1 million (EUR -0.5 million)
- The result before taxes was EUR 1.0 million (EUR -0.3 million)
- The net result was EUR 0.5 million (EUR -0.2 million)
- Earnings per share was EUR 0.01 (EUR -0.01)
Vesa Vähämöttönen, Efore's President and CEO:
“I am pleased with the performance of the first quarter. Our net sales
increased over 50 % compared with the corresponding quarter previous fiscal
year. Our revised strategy has brought clarification and helped us when
allocating resources. Strong increase in mobile data transfer creates a
positive outlook for Efore's main target market. Efore is well positioned to
meet the growth.”
NET SALES AND FINANCIAL DEVELOPMENT FOR THE FIRST QUARTER
Net sales for the first quarter of the fiscal year totaled EUR 21.9 million
(EUR 14.3 million). Net sales by customer group was as follows:
Telecommunication 78.8 % (70.3 %) and industrial electronics 21.2 % (29.7 %).
Geographically Efore's deliveries were to the following areas: EMEA EUR 9.7
million (EUR 7.1 million), APAC EUR 11.4 million (EUR 6.8 million) and the
Americas EUR 0.8 million (EUR 0.3 million) which totaled EUR 21.9 million (EUR
14.3 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 result of operating activities was EUR 1.1 million (EUR -0.5 million).
Sales growth and cost contol contributed to an improvement in the positive
result development. Spot buys due to component shortages led to approximately
EUR 0.3 million additional material costs.
BUSINESS DEVELOPMENT
Investment on product and technology development during the period under review
was EUR 1.5 million (EUR 1.4 million) representing 6.8 % (10.1 %) of net sales.
Efore's product development is mainly customer specific productionizing.
Efore's product development is guided by the customers' demands on better
efficiency, power density and cost effectiveness. In technology development the
focus is on the solutions for the new product platforms which serve Efore's
product development.
Efore's business has been directed towards strategic target markets as
previously announced. Focus in telecommunication market was to secure the
increased deliveries. Deliveries to industrial market continued on the same
level than during the previous quarter, however leading to some year-on-year
growth. Industrial customer base and products have been streamlined to improve
the profitability.
Efore announced on 12th of January 2011 that it will establish a new company
for electric vehicle (EV) power electronic products in China. This
establishment process is ongoing. Product development of DC/DC converters and
chargers for electric vehicles has proceeded as planned. Efore's goal is to get
the products approved for the customers' pilot use by the end of the year 2011.
INVESTMENTS
Group investments in fixed assets during the period under review amounted to
EUR 1.0 million (EUR 0.3 million). At the end of the period under review
capitalized product development costs amounted to EUR 0.9 million (EUR 1.3
million).
FINANCIAL POSITION
The Group's financial position during the period under review was good. The
consolidated interest-bearing cash reserves exceed interest-bearing liabilities
by EUR 4.2 million (EUR 6.4 million). The consolidated net financial income was
EUR -0.1 million (EUR 0.2 million). The cash flow from business operations was
EUR 2.6 million (EUR 1.7 million. The cash flow after investment was EUR 1.6
million (EUR 1.4 million).
The Group's solvency ratio was 46.7 % (57.2 %) and the gearing was -20.3 %
(-32.6 %).
Liquid assets excluding undrawn credit facilities totaled EUR 7.1 million (EUR
6.7 million) at the end of the period under review. The balance sheet total was
EUR 44.8 million (EUR 34.3 million).
PERSONNEL
The number of the Group's own personnel including temporary personnel averaged
888 (762) during the period under review and at the end of the period under
review it was 904 (750). At the end of January 2011 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 review was
42.529.648 and the registered share capital was EUR 15.000.000.
At the end of the fiscal year the number of the Group's own shares was 922.149.
In addition to this Efore Management Oy, a company belonging to Efore group
owned 2.084.400 pcs of Efore shares.
The highest share price during the period under review was EUR 1.07 and the
lowest price was EUR 0.69. The average price during the period under review was
EUR 0.86 and the closing price was EUR 1.04. The market capitalization
calculated at the final trading price during the period under review was EUR
41.1 million.
The total number of Efore shares traded on the Nasdaq OMX Helsinki during the
period under review was 6.3 million and their turnover value was EUR 5.4
million. This accounted for 14,82 % of the total number of shares. The number
of shareholders totaled 3317 at the end of the period under 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 11, 2011.
ACCOUNTING POLICIES
The financial statement has been drawn up in accordance with IAS 34 Standard on
Interim Financial Reporting and the Group's accounting principles presented in
the 2010 annual report. 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.
The comparable information for year 2010 have been changed for net sales and
other operating income. Product development income, totalling EUR 0.4 million
has been transferred from other operating income to net sales.
SHORT-TERM RISKS AND FACTORS OF UNCERTAINTY
A total demand has improved but the demand fluctuation typical in the business
can still create rapid changes.
The most significant business risks are connected with the success of key
customers on the market and the company's capability to serve its key
customers. The availability and price changes of the components during the
current fiscal year can further affect negatively to the company's net sales
and result development.
Progress of the EV power electronics projects depends on the customers' project
schedules and the establisment of the whole market. This business risk has been
added to the risks announced in the stock exchange release on 10th of December,
2010.
By developing operational processes Efore is improving its internal flexibility
and ability to react on changing demand at short notice, if necessary.
A more comprehensive report on risk management is presented on the company's
web-sites.
OUTLOOK
Due to increased demand the production capacity utilisation has clearly
improved compared to the situation year ago. Deliveries can be further
increased without substantial additional investments.
Product development resources are well utilized in new customer projects and in
technology projects targeting to new product platforms. Therefore Efore will
increase product development resources.
Strong increase in mobile data transfer creates a positive outlook for Efore's
main target market.
ESTIMATE OF THE FINANCIAL OUTLOOK FOR THE FISCAL YEAR 2011
The company estimates that both net sales and result of operating activities of
the current fiscal year will show an improvement compared to the previous
fiscal year.
TABLES
CONSOLIDATED STATMENT OF COMPREHENSIVE INCOME
EUR million Nov./10- Nov./09- Nov./09-
Jan./11 Jan./10 Oct./10
3 months 3 months 12 months
Net sales 21,9 14,3 69,7
Change in inventories of
finished goods and work in progress 1,7 0,4 0,9
Other operating income 0,0 0,0 0,2
Materials and services -16,6 -9,9 -48,1
Employee benefits expenses -3,5 -2,9 -12,6
Depreciation -0,7 -0,8 -3,1
Impairments 0,0 0,0 0,0
Other operating expenses -1,7 -1,6 -6,9
OPERATING PROFIT (-LOSS) 1,1 -0,5 0,0
% net sales 5,2 -3,6 0,0
Financing income 0,0 0,3 0,5
Financing expenses -0,2 -0,1 -0,5
Share of profit of associated
companies 0,0 0,0 0,0
PROFIT (-LOSS) BEFORE TAX 1,0 -0,3 0,1
% net sales 4,6 -2,1 0,1
Tax on income from operations -0,5 0,1 0,1
PROFIT (-LOSS) FOR THE PERIOD 0,5 -0,2 0,1
OTHER COMPREHENSIVE INCOME:
Translation differences 0,2 0,3 0,3
Total comprehensive income 0,7 0,1 0,5
NET PROFIT/LOSS ATTRIBUTABLE
To equity holders of the parent 0,5 -0,2 0,1
Non-controlling interests 0,0 0,0 0,0
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
To equity holders of the parent 0,7 0,1 0,5
Non-controlling interests 0,0 0,0 0,0
EARNINGS PER SHARE CALCULATED ON PROFIT
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT:
Earnings per share, basic,eur 0,01 -0,01 0,00
Earnings per share, diluted, eur 0,01 -0,01 0,00
INFORMATION ABOUT GEOGRAPHICAL Nov./10- Nov./09- Nov./09-
AREAS, EUR million Jan./11 Jan./10 Oct./10
3 months 3 months 12 months
Americas 0,8 0,3 2,2
EMEA 9,7 7,1 32,5
APAC 11,4 6,8 35,1
Total 21,9 14,3 69,7
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
EUR million Jan. 31, Jan. 31, change Oct. 31,
2011 2010 % 2010
ASSETS
NON-CURRENT ASSETS
Intangible assets 1,5 1,9 1,5
Tangible assets 4,9 5,3 4,6
Investments in associates 0,6 0,6 0,6
Other long-term investments 0,0 0,0 0,0
NON-CURRENT ASSETS 7,0 7,8 -9,6 6,7
CURRENT ASSETS
Inventories 12,5 8,0 10,5
Trade receivables and other receivables 18,1 11,8 17,5
Tax receivable, income tax 0,0 0,0 0,1
Cash and cash equivalents 7,1 6,7 5,9
CURRENT ASSETS 37,8 26,5 42,4 34,0
ASSETS 44,8 34,3 30,6 40,6
EQUITY AND LIABILITIES
EQUITY
Share capital 15,0 34,5 15,0
Treasury shares -2,1 -0,6 -2,1
Other reserves 21,9 1,0 21,9
Translation differences 0,3 0,1 0,1
Retained earnigs -14,5 -15,4 -15,0
Equity attributable to equity holders of 20,6 19,6 19,9
the parent
Minority interests 0,3 0,0 0,3
TOTAL EQUITY 20,9 19,6 6,8 20,2
NON-CURRENT LIABILITIES
Interest-bearing liabilities 2,3 0,1 2,6
NON-CURRENT LIABILITIES 2,3 0,1 1857,9 2,6
CURRENT LIABILITIES
Interest-bearing liabilities 0,6 0,3 0,6
Trade payables and other liabilities 20,6 13,8 16,7
Tax liabilities 0,0 0,1 0,2
Provisions 0,4 0,5 0,3
CURRENT LIABILITIES 21,6 14,6 17,9
LIABILITIES 23,9 14,7 20,5
TOTAL EQUITY AND LIABILITIES 44,8 34,3 30,6 40,6
GROUP KEY FIGURES, EUR million Nov./10- Nov./09- Nov./09-
Jan./11 Jan./10 Oct./10
3 months 3 months 12 months
Earnings per share, basic,eur 0,01 -0,01 0,00
Earnings per share, diluted, eur 0,01 -0,01 0,00
Equity per share, eur 0,52 0,49 0,50
Solvency ratio,% 46,7 57,2 49,7
Return on equity-%(ROE) 10,3 -4,8 0,6
Return on investment-%(ROI) 18,3 -5,7 1,1
Gearing, % -20,3 -32,6 -13,3
Net interest-bearing liabilities -4,2 -6,4 -2,7
Investments (intangible and tangible assets) 1,0 0,3 1,6
as percentage of net sales 4,5 2,4 2,3
Average personnel 888 762 821
CONSOLIDATED STATEMENT OF CASH FLOWS Nov./10 Nov./09 change Nov./09
- - -
EUR million Jan./11 Jan./10 % Oct./10
Cash flows from operating activities
Cash receipts from customers 24,2 15,1 64,0
Cash paid to suppliers and employees -21,4 -13,7 -65,4
Cash generated from operations 2,9 1,5 -1,4
Interest paid 0,0 0,0 0,0
Interest received 0,0 0,0 0,0
Other financial items -0,1 0,0 0,1
Income taxes paid -0,2 0,2 0,3
Net cash from operating activities (A) 2,6 1,7 52,4 -1,0
Cash flows from investing activities
Purchase of tangible and intangible assets -1,0 -0,3 -1,6
Proceeds from sale of tangible and intangible 0,0 0,0 0,1
assets
Disposal of subsidiary shares 0,0 0,0 0,0
Proceeds from repayments of loans 0,0 0,0 0,0
Proceeds from sales of investments 0,0 0,0 0,0
Dividend received 0,0 0,0 0,0
Net cash used in investing activities (B) -1,0 -0,3 202,3 -1,5
Cash flows from financing activities
Capital investment by the minority 0,0 0,0 0,3
Purchase of treasury shares 0,0 0,0 -0,1
Proceeds from short-term borrowings 0,0 0,0 0,5
Repayment of short-term borrowings 0,0 0,0 0,0
Proceeds from long-term borrowings 0,0 0,0 2,5
Repayment of long-term borrowings -0,3 0,0 0,0
Financial leasing repayment -0,1 -0,1 -0,3
Dividends paid 0,0 0,0 0,0
Net cash used in financing activities (C) -0,3 -0,1 3,0
Net increase/decrease in cash and cash
equivalents (A+B+C) 1,3 1,3 -1,4 0,4
GROUP CONTINGENT LIABILITIES Jan. Jan. Oct.
31, 31, 31,
EUR million 2011 2010 2010
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 1,6 1,4 1,5
1-5 years 1,6 2,5 1,7
Fair values of derivate financial instruments
Currency derivatives, not hedge
Option contract
Nominal amount 1,5 9,5 2,9
Positive fair value 0,0 0,0 0,0
Negative fair value 0,0 0,0 0,0
THE FOLLOWING TRANSACTIONS WERE Jan. Jan. Oct.
31, 31, 31,
CARRIED OUT WITH RELATED PARTIES: 2011 2010 2010
EUR million
Associated companies
Purchases 0,0 0,0 0,1
Liabilities 0,0 0,0 0,0
CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY
EUR Share Treasury Unrestric Other Trans- Retain Non- Total
million capital shares ted reserv lation ed controll
equity es diffe- earnin ing reserve rences gs interest
s
Equity 34,5 -0,6 0,0 1,0 -0,2 -15,2 0,0 19,5
Nov.1,
2009
Comprehen 0,0 0,0 0,0 0,0 0,3 -0,2 0,0 0,1
sive
income
Equity 34,5 -0,6 0,0 1,0 0,1 -15,4 0,0 19,6
Jan. 31,
2010
EUR Share Treasury Unrestric Other Trans- Retain Non-cont Total
million capital shares ted reserv lation ed rolling
equity es diffe- earnin interest
reserve rences gs s
Equity
Nov.1, 15,0 -2,1 20,9 1,0 0,1 -15,0 0,3 20,2
2010
Comprehen 0,0 0,0 0,0 0,0 0,2 0,5 0,0 0,7
sive
income
Equity 15,0 -2,1 20,9 1,0 0,3 -14,5 0,3 20,9
Jan. 31,
2011
31.1.2011
CALCULATION OF KEY
FIGURES AND RATIOS
Return on = Profit before taxes+interest and other financing
investment (ROI), expenses / x 100
% (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 - own
shares*) x 100
Net = Interest-bearing liabilities - financial assets at fair
interest-bearing value through profit or loss - cash and cash
liabilities equivalents
Gearing, % = Net interest-bearing liabilities / Equity x 100
Earnings per share = Profit or loss for the period / (Average number of
shares - own shares*)
Dividend per share = Dividend for the financial year / (Number of shares -
own shares*)
Dividend payout = Dividend per share / Earnings per share x 100
ratio, %
Effective dividend = Dividend per share /Adjusted share price at balance
yield, % sheet date x 100
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 outstanding
capitalization = 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.
Profit for the period is the fiscal period profit attributable to equity holders
of the parent.
* There were own shares held by company January 31, 2011.
EFORE PLC
Board of Directors
For further information please contact Mr.Vesa Vähämöttönen, President and CEO,
on March 3, 2011 at 9 - 11 a.m., tel. +358 9 4784 6312
Efore Plc will hold a news conference regarding the financial statement report
for analysts and media on March 3, 2011 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 headoffice is based in Finland and its production units
are located in China and in Estonia. Efore is present also in the USA and
Sweden. In the fiscal year ending in October 2010, consolidated net sales
totaled EUR 69,7 million and the Group's personnel averaged 821. 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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