2011-10-21 08:00:00 CEST
2011-10-21 08:00:10 CEST
REGULATED INFORMATION
Aspocomp Group - Interim report (Q1 and Q3)
ASPOCOMP'S INTERIM REPORT JANUARY 1 - SEPTEMBER 30, 2011
Espoo, Finland, 2011-10-21 08:00 CEST (GLOBE NEWSWIRE) --
Aspocomp Group Plc., Interim Report, October 21, 2011 at 9:00 AM
Key figures in brief
- Net sales: EUR 17.8 million (EUR 14.3 million 1-9/2010)
- Operating result before depreciation (EBITDA): EUR 3.9 million (3.1)
- Operating result (EBIT): EUR 2.9 million (2.1)
- Result for the period: EUR 6.1 million (1.2)
- Earnings per share (EPS): EUR 0.10 (0.02)
- Cash flow from operations: EUR 2.4 million (3.1)
The company expects to see clear net sales growth in 2011. The operating result
is anticipated to be significantly higher than in 2010.
CEO'S REVIEW
“Demand continued to be brisk in the third quarter of 2011 in spite of the
holiday season. Net sales remained almost on a par with the second quarter, as
a result of which year-on-year growth amounted to close to 40 percent. The
operating result improved slightly on the second quarter, amounting to EUR 1.3
million, or 20 percent of net sales. A recession did not materialize - at least
not yet.
However, demand is set to soften toward the end of the year. The company's
fourth-quarter net sales and operating result will thus probably fall short of
the previous two quarters. That said, in full-year terms, both figures will see
higher-than-expected growth.
Cash flow from operations rose into the black in the third quarter, as
expected. This trend is expected to continue in the fourth quarter.
Aspocomp completed its restructuring in June, and its balance sheet is now as
solid as that of any other healthy company. Thanks to strong cash flow in
July-September, the company no longer has any net debt.”
NET SALES AND EARNINGS IN JULY-SEPTEMBER
Third-quarter net sales amounted to EUR 6.3 million, up 39 percent on 7-9/2010.
The five largest customers accounted for 84 percent of net sales (83%). In
geographical terms, 95 percent of net sales were generated in Europe (96%) and
5 percent in Asia (4%).
The operating result was EUR 1.3 million (0.6).
Net financial expenses amounted to EUR 0.0 million (-0.3) in the third quarter
and the result was EUR 1.3 million (0.3). Earnings per share were EUR 0.02
(0.00).
NET SALES AND EARNINGS IN JANUARY-SEPTEMBER
Net sales for January-September amounted to EUR 17.8 million, up 24 percent on
1-9/2010. The five largest customers accounted for 82 percent of net sales (78%
1-9/2010). In geographical terms, 93 percent of net sales were generated in
Europe (95%) and 7 percent in Asia (5%).
The operating result was EUR 2.9 million (2.1).
Net financial income for January-September amounted to EUR 3.2 million (-0.9)
and the result was EUR 6.1 million (1.2). Earnings per share were EUR 0.10
(0.02).
INVESTMENTS AND R&D
Investments amounted to EUR 0.7 million (EUR 1.5 million 1-9/2010).
The majority of the investments were related to the implementation of a new
image transfer process in the outer-layer process of PCB manufacturing and
laser drilling.
R&D costs are recognized in overheads.
FINANCING
Thanks to the restructuring carried out in the second quarter and strong cash
flow, the Group's financial position is now good.
Cash flow from operations during the period was EUR 2.4 million (EUR 3.1
million 1-9/2010). Cash assets amounted to EUR 2.2 million at the end of the
period (EUR 3.9 million 9/2010).
The nominal value of interest-bearing liabilities was EUR 1.6 million (EUR 23.6
million 9/2010). Gearing decreased to -6.7 percent (409.3%).
Non-interest-bearing liabilities amounted to EUR 5.3 million (7.2). Based on
the existing financing agreement the Group may draw a EUR 1.0 million long-term
loan. In addition, the company can draw on a EUR 0.5 million working capital
credit facility.
The Group's equity ratio at the end of the period stood at 56.1 percent (13.1%).
GROUP STRUCTURE
Aspocomp Oulu Oy - in which Aspocomp has a 100 percent holding - manufactures
and sells PCBs for telecom, industrial, and automotive electronics
applications. Its service portfolio includes prototype and quick-turn
deliveries, fulfillment of urgent PCB needs in high-volume operations as well
as development and commercialization of new technologies. Aspocomp Oulu Oy's
primary technologies are HDI (High Density Interconnection), multilayer and
special material PCBs.
In addition, Aspocomp holds a 13.2 percent share in PCB Center, a Thai company.
PCB Center's production is currently stopped due to a fire at the plant in June
2010. PCB Center went into liquidation in April 2011. It is highly likely that
the operations of the company will be wound up. However, this has no financial
impact on Aspocomp, as the related holding has no value in Aspocomp's balance
sheet and Aspocomp has no outstanding receivables from PCB Center.
Aspocomp also has a 5.3 percent shareholding in Imbera Electronics Inc., which
provides state-of-the-art embedding solutions for the electronics industry.
SHAREHOLDERS' EQUITY OF THE PARENT COMPANY
In accordance with the requirements of the Companies Act, the Trade Register
has been notified of the loss of share capital on May 14, 2008. As a result of
the restructuring completed in June, the shareholders' equity of Aspocomp
Group's parent company, Aspocomp Group Plc., is once again positive, amounting
to EUR 3.7 million at the end of the review period. The shareholders' equity of
Aspocomp Group was EUR 8.9 million positive.
SHARES AND SHARE CAPITAL
The total number of Aspocomp's shares at September 30, 2011 was 62,179,485 and
the share capital stood at EUR 20,082,052. The company held 134,600 treasury
shares, representing 0.2 percent of the aggregate votes conferred by all the
shares.
A total of 89,708,848 Aspocomp Group Plc. shares were traded on NASDAQ OMX
Helsinki during the period from January 1 to September 30, 2011. The aggregate
value of the shares exchanged was EUR 23,197,239. The shares traded at a low of
EUR 0.17 and a high of EUR 0.37. The average share price was EUR 0.26. The
closing price at September 30, 2011 was EUR 0.26, which translates into market
capitalization of EUR 16,166,666.
Nominee-registered shares accounted for 21.7 percent of the total shares.
PERSONNEL
During the period, Aspocomp had an average of 103 employees (96). The personnel
count on September 30, 2011 was 105 (99). Of them, 73 (68) were non-salaried
and 32 (31) salaried employees.
DECISIONS OF THE ANNUAL GENERAL MEETING
The Annual General Meeting of Aspocomp Group Plc. held on April 20, 2011
re-elected the current Board and decided that the remunerations of the members
of the Board will remain the same as in 2010. The Meeting decided not to pay
dividends for the 2010 financial year.
The Annual General Meeting decided to set the number of Board members at three
(3) and re-elected the current members of the Board: Johan Hammarén, Tuomo
Lähdesmäki, and Kari Vuorialho. The Meeting re-elected PricewaterhouseCoopers
Oy as the company's auditor for the 2011 financial year.
The Annual General Meeting resolved that annual remuneration of EUR 24,000 will
be paid to the chairman of the Board and EUR 12,000 to the other Board members.
60% of the annual remuneration will be paid in cash and the other 40% will be
paid in shares of the company. The Annual General Meeting decided that shares
corresponding to 40% of the annual remuneration of the members of the Board of
Directors can be conveyed from the 200,000 shares currently in the possession
of the company on the basis of the share issue authorization of the Annual
General Meeting of 2008. The shares will be issued to the members of the Board
of Directors within two weeks following the publication of the result for the
second quarter of the year 2011. The number of the remuneration shares is to be
determined based on the weighted average market quotation of the company's
share on the date of the publication of the result for the second quarter of
the year 2011 and the following four days to the effect that any trades prior
to the publication date shall not be taken into consideration. EUR 1,000 per
meeting will be paid to the chairman and EUR 500 per meeting to the other
members. The Board of Directors shall be reimbursed for reasonable travel and
lodging costs. However, travel and lodging costs shall not be compensated to
those members of the Board of Directors who reside in the greater Helsinki area
when the meetings are held in the greater Helsinki area. The auditor will be
paid according to invoice.
The Annual General Meeting decided to terminate the stock option programs
2006A, 2006B and 2006C issued by the 2006 Annual General Meeting. These options
have not been exercised and they have all been returned to the possession of
the company.
THE BOARD OF ASPOCOMP GROUP PLC., AUTHORIZATIONS GIVEN TO THE BOARD
In its organization meeting, the Board of Directors of Aspocomp Group Plc.
re-elected Tuomo Lähdesmäki as chairman of the Board. As the Board only
comprises three (3) members, Board committees were not established.
The Annual General Meeting 2008 of Aspocomp Group Plc. authorized the Board to
decide on issuing new shares and conveying the Aspocomp shares held by the
company. A maximum of 55,000,000 new shares can be issued and/or granted on the
basis of special rights. The authorization is valid five years from the
respective Annual General Meeting. During the restructuring completed in June,
the Board of Directors exercised part of its share issue authorization.
The Annual General Meeting 2008 also decided about issuing stock options to the
CEO. The Board of Directors has not granted the said stock options.
Details of the authorizations can be found on pages 10-11 of the Annual Report
2008 (www.aspocomp.com/linked/investor/ar_2008.pdf).
ASSESSMENT OF BUSINESS RISKS
Liquidity and financial risks
Aspocomp's liquidity is based on the Group's cash assets, the cash flow
generated by the Oulu plant, and external financing. Due to its financial
difficulties in recent years, the company might face problems in securing
external financing in the scope and under the terms and conditions that its
financial position would allow. In addition, due to the financing agreement
signed on May 20, 2011, the company may not acquire more than a total of EUR
0.2 million in external financing without the prior consent of the financing
bank. Furthermore, the company is liable to pay damages, which might also have
a negative impact on its liquidity (see “Litigations” below).
If Aspocomp Group Plc. does not obtain financing from its operations, external
providers of finance, or other sources of financing, the company may ultimately
become insolvent. This could have a materially negative impact on the company's
business operations, financial position and result of operations.
Litigations
In 2007, the French Supreme Court ordered the company to pay approximately EUR
11 million to 388 former employees of Aspocomp S.A.S. The company made the
payment in 2007.
In January 2009, the Labor Court of Evreux, France ruled that the company has
to pay approximately EUR 0.5 million in compensation, with interest, to a
further 13 former employees. Aspocomp appealed, but the Court of Appeal of
Rouen confirmed the decision in May 2010. The payment has not been made, but
Aspocomp made a related provision in its 2007 financial statements.
In October 2010, Aspocomp was informed that six former employees reasserted
their suspended claims in a French Court. In addition, one new claim has been
made. These hearings were held in May 2011. The total amount of the claims is
EUR 0.3 million. Aspocomp has not yet been informed about the court decision.
The aforementioned compensations and claims do not have a profit impact during
the financial year, because Aspocomp has made a reservation in its 2007
financial statements.
There is a risk that the remaining approximately 90 employees may also
institute proceedings. Under legislation that came into effect in June 2008,
the statute of limitations for filing a suit is five years after the law came
into effect.
Lack of capacity
Increasingly complicated PCB designs add load to certain parts of the PCB
production process. If the company fails to add capacity to these
sub-processes, the total production volume will suffer, and the potential
demand will not materialize as net sales growth.
OUTLOOK FOR THE FUTURE
The outlook for operations in Oulu and the Group's lean cost structure enable
the continuity of Aspocomp's operations. The Group's financial position is
good.
The company expects to see clear net sales growth in 2011. The operating result
is anticipated to be significantly higher than in 2010.
TABLES AND ACCOUNTING POLICIES
The reported operations include Aspocomp Oulu Oy and the Group's parent
company, Aspocomp Group Plc. These operations comprise a single business
segment.
All figures are unaudited. The interim report has been prepared in accordance
with IAS 34, Interim Financial Reporting. The accounting principles that were
applied in the preparation of the financial statements of December 31, 2010
have been applied in the preparation of this report, with the exception of the
following new or modified standards that the company has applied as from
January 1, 2011:
- IAS 1 (amendment), Presentation of Financial Statements - Statement of
Changes in Equity
- IAS 24 (revised), Related Party Disclosures
- IAS 27 (amendment), Consolidated and Separate Financial Statements
- IAS 32 (amendment), Financial Instruments: Presentation - Classification of
Rights Issues
- IAS 34 (amendment), Interim Financial Reporting
- IFRS 3 (amendments), Measurement of Non-controlling Interests
- IFRS 7 (amendment), Financial Instruments: Financial Statement Disclosures
- IFRIC 14 (amendment), Prepayments of a Minimum Funding Requirement
- IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments
The application of the aforementioned standards did not have a significant
impact on the reported figures.
PROFIT & LOSS STATEMENT, 7-9/11 7-9/10
JULY-SEPTEMBER 1000 e % 1000 e %
NET SALES 6 304 100.0 4 525 100.0
Other operating income 6 0.1 99 2.2
Materials and services -2 150 -34.1 -1 411 -31.2
Personnel expenses -1 548 -24.6 -1 404 -31.0
Other operating costs -1 053 -16.7 -950 -21.0
Depreciation and -308 -4.9 -303 -6.7
Amortization
--------------------------------------------------------
OPERATING PROFIT/LOSS 1 251 19.9 556 12.3
Financial income and -8 -0.1 -302 -6.7
Expenses
--------------------------------------------------------
PROFIT/LOSS BEFORE TAX 1 243 19.7 254 5.6
Income taxes 2 0.0 -2 -0.1
--------------------------------------------------------
PROFIT/LOSS FOR 1 246 19.8 252 5.6
THE PERIOD
Other comprehensive income for the period, net of tax
Redemption of 0 0.0 0 0.0
convertible bond
Translation differences 0 0.0 2 0.0
--------------------------------------------------------
TOTAL COMPREHENSIVE 1 246 19.8 253 5.6
INCOME FOR THE PERIOD
Profit/loss for the period attributable to:
Non-controlling 0 0.0 78 1.7
Interests
Equity shareholders 1 246 19.8 173 3.8
Total comprehensive income attributable to:
Non-controlling 0 0.0 78 1.7
Interests
Equity shareholders 1 246 19.8 175 3.9
JANUARY-SEPTEMBER 1-9/11 1-9/10 1-12/10
1000 e % 1000 e % 1000 e %
NET SALES 17 783 100.0 14 307 100.0 18 785 100.0
Other operating income 24 0.1 229 1.6 231 1.2
Materials and services -5 721 -32.2 -4 249 -29.7 -5 912 -31.5
Personnel expenses -4 828 -27.1 -4 288 -30.0 -5 750 -30.6
Other operating costs -3 403 -19.1 -2 926 -20.4 -4 250 -22.6
Depreciation and -959 -5.4 -940 -6.6 -1 265 -6.7
Amortization
------------------------------------------------------------------------
OPERATING PROFIT/LOSS 2 897 16.3 2 134 14.9 1 841 9.8
Financial income and 3 171 17.8 -892 -6.2 -1 167 -6.2
Expenses
------------------------------------------------------------------------
PROFIT/LOSS BEFORE TAX 6 068 34.1 1 242 8.7 673 3.6
Income taxes -3 0.0 -3 0.0 2 0,0
------------------------------------------------------------------------
PROFIT/LOSS FOR 6 065 34.1 1 239 8.7 675 3.6
THE PERIOD
Other comprehensive income for the period, net of tax
Redemption of -680 3.8 0 0.0 0 0.0
convertible bond
Translation -2 0.0 13 0.1 15 0.1
Differences
TOTAL COMPREHENSIVE 5 383 30.3 1 252 8.8 690 3.7
------------------------------------------------------------------------
INCOME FOR THE PERIOD
Profit/loss for the period attributable to:
Non-controlling 0 0.0 295 2.1 293 1.6
Interests
Equity shareholders 6 065 34.1 944 6.6 382 2.0
Total comprehensive income attributable to:
Non-controlling 0 0.0 295 2.1 293 1.6
Interests
Equity shareholders 5 383 30.3 957 6.7 397 2.1
Earnings per share
Basic EPS 0.10 0.02 0.01
Diluted EPS 0.10 0.02 0.01
CONSOLIDATED BALANCE SHEET 9/11 9/10 Change 12/10
1000 e 1000 e % 1000 e
ASSETS
NON-CURRENT ASSETS
Intangible assets 3 000 3 000 0.0 3 000
Tangible assets 3 248 3 544 -8.3 3 669
Available for sale investments 16 44 -63.8 16
Other non-current receivables 0 16 505 -100.0 16 601
--------------------------------------------------------------------
TOTAL NON-CURRENT ASSETS 6 264 23 093 -72.9 23 287
CURRENT ASSETS
Inventories 2 128 2 264 -6.0 2 114
Short-term receivables 5 257 4 182 25.7 3 763
Cash and bank deposits 2 206 3 918 -43.7 4 712
--------------------------------------------------------------------
TOTAL CURRENT ASSETS 9 592 10 364 -7.5 10 589
TOTAL ASSETS 15 856 33 457 -52.6 33 876
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital 20 082 20 082 0.0 20 082
Share premium 27 918 27 918 0.0 27 918
Treasury shares -510 -758 -32.7 -758
Special reserve 45 989 45 989 0.0 45 989
Reserve for invested 25 544 23 885 6.9 23 885
non-restricted equity
Retained earnings -110 126 -113 721 -3.2 -114 281
Equity attributable to 8 897 3 394 162.1 2 835
Shareholders
Non-controlling interests 0 1 001 -100.0 758
--------------------------------------------------------------------
TOTAL EQUITY 8 897 4 395 102.4 3 593
Long-term financing loans 771 21 734 -96.5 20 522
Provisions 215 264 -18.3 215
Short-term financing loans 838 172 386.5 1 503
Trade and other payables 5 134 6 892 -25.5 8 042
--------------------------------------------------------------------
TOTAL LIABILITIES 6 959 29 062 -76.1 30 283
TOTAL SHAREHOLDERS' EQUITY 15 856 33 457 -52.6 33 876
AND LIABILITIES
CONSOLIDATED CHANGES IN EQUITY,
JANUARY-SEPTEMBER
1000 e
Equity attributable to the shareholders of the parent company
Trans Non
la Re cont
tion tai rol
Share Share Other Own diffe ned ling
capi pre re sha ren earn inte Total
tal mium serve res ces ings Total rests equity
----------------------------------------------------------------------------
Balance 20 082 27 918 69 874 -758 6 -114 287 2 835 758 3 593
at 1.1.11
Comprehensive income
Comprehensive income 6 065 6 065 6 065
for the period
Other comprehensive income for the period, net of tax
Translation differences -2 -2 -2
Redemption of -1 945 1 265 -680 -680
convertible bond
----------------------------------------------------------------------------
Compre- 0 0 -1 945 0 -2 7 329 5 382 0 5 382
hensive income for the period, total
Business transactions with owners
Directed issue 3 682 -2 924 758 -758 0
and redemption of non controlling interests
Reissuance of 248 -248 0 0
treasury shares
Direct cost of issuing -78 -78 -78
issuing new shares
----------------------------------------------------------------------------
Business transactions 3 604 248 -3 172 680 -758 -78
with owners, total
----------------------------------------------------------------------------
Balance 20 082 27 918 71 533 -510 3 -110 129 8 897 0 8 897
at 30.9.11
Equity attributable to the shareholders of the parent company
Trans Non
la Re cont
tion tai rol
Share Share Other Own diffe ned ling
capi pre re sha ren earn inte Total
tal mium serve res ces ings Total rests equity
----------------------------------------------------------------------------
Balance 20 082 27 918 69 874 -758 -9 -114 669 2 438 706 3 143
at 1.1.10
Comprehensive income 944 944 295 1 239
for the period
Other comprehensive income for the period, net of tax
Translation differences 13 13 13
----------------------------------------------------------------------------
Balance 20 082 27 918 69 874 -758 4 -113 725 3 394 1 001 4 395
at 30.9.10
CONSOLIDATED CASH FLOW STATEMENT,
JANUARY-SEPTEMBER
1000 e 1-9/11 1-9/10 1-12/10
Profit for the period 6 065 1 239 675
Adjustments -2 212 1 802 2 286
Change in working capital -1 461 10 1 096
Received interest income and dividends 35 24 43
Paid interest expenses -68 -4 -6
Paid taxes -3 1 1
------------------------------------------------------------------------------
Operational cash flow 2 355 3 072 4 095
Investments -691 -1 501 -1 754
Proceeds from sale of property, plant and equipment 14 539 9 75
------------------------------------------------------------------------------
Cash flow from investments 13 848 -1 492 -1 679
Decrease in financing -19 631 -699 -742
Increase in financing 1 000 0 0
Issue -78 0 0
------------------------------------------------------------------------------
Cash flow from financing -18 709 -699 -742
Change in cash and cash equivalents -2 505 880 1 674
Cash and cash equivalents at the beginning of period 4 712 3 038 3 038
Currency exchange differences 0 0 0
------------------------------------------------------------------------------
Cash and cash equivalents at the end of period 2 206 3 918 4 712
KEY FINANCIAL INDICATORS 9/11 9/10
Equity per share, EUR 0.14 0.07
Equity ratio, % 56.1 13.1
Gearing, % -6.7 409.3
Earnings per share (EPS)
Basic and diluted EPS, EUR 0.10 0.02
CONTINGENT LIABILITIES
1000 e 9/11 9/10 12/10
Mortgages given as security for bank loans
shares of a subsidiary 0 0 5 514
other receivables 0 15 400 16 601
Business mortgage 4 000 0 0
Operating lease liabilities 670 666 670
Other liabilities 30 100 100
----------------------------------------------------------
Total 4 700 16 166 22 885
FORMULAS FOR KEY INDICATORS
Equity attributable
Equity/share, EUR = to shareholders
----------------------------------
Number of shares
at the end of period
Equity ratio, % = Equity x 100
----------------------------------
Total assets - advances received
Gearing, % = Net interest-bearing liabilities x 100
----------------------------------
Total equity
Profit attributable
Earnings/share (EPS), EUR = to equity shareholders
----------------------------------
Adjusted weighted average
number of shares outstanding
All figures are unaudited.
Espoo, October 21, 2011
Aspocomp Group Plc.
Board of Directors
For further information, please contact Sami Holopainen, CEO,
tel. +358 9 59 181, sami.holopainen(at)aspocomp.com.
www.aspocomp.com
Some statements in this stock exchange release are forecasts and actual results
may differ materially from those stated. Statements in this stock exchange
release relating to matters that are not historical facts are forecasts. All
forecasts involve known and unknown risks, uncertainties and other factors,
which may cause the actual results, performances or achievements of the
Aspocomp Group to be materially different from any future results, performances
or achievements expressed or implied by such forecasts. Such factors include
general economic and business conditions, fluctuations in currency exchange
rates, increases and changes in PCB industry capacity and competition, and the
ability of the company to implement its investment program.
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