2012-10-10 10:00:00 CEST
2012-10-10 10:00:05 CEST
REGULATED INFORMATION
Vaahto Group Plc Oyj - Interim report (Q1 and Q3)
VAAHTO GROUP INTERIM REPORT FOR 1 SEPTEMBER 2011 – 31 AUGUST 2012
Lahti, Finland, 2012-10-10 10:00 CEST (GLOBE NEWSWIRE) -- VAAHTO GROUP PLC OYJ
INTERIM REPORT 10.10.2012 at 11.00
VAAHTO GROUP INTERIM REPORT FOR 1 SEPTEMBER 2011 - 31 AUGUST 2012
Vaahto Group's turnover for 1 September 2011 - 31 August 2012 was 48.3 MEUR
(compared with 55.3 MEUR for the corresponding period in the previous financial
year), with an operating loss of 4.8 MEUR (compared with an operating loss of
1.3 MEUR). Turnover fell by 13% from the reference period level, causing the
operating result to remain weaker than in the reference period. The Group's
order book grew by 15% during the period under review and amounted to 25.7 MEUR
on 31 August 2012.
On 19 June 2012, Vaahto Group Plc Oyj's extraordinary general meeting approved
an amendment to the statutes, based on which the company's normal financial
year was changed to 1 January-31 December. Consequently, the duration of the
current financial year will be sixteen (16) months (1 September 2011-31
December 2012).
Vaahto Paper Technology
During the period under review, the turnover was 29.0 MEUR (39.7 MEUR) and the
operating loss 4.4 MEUR (operating loss 0.1 MEUR). The turnover fell
significantly (27%) from the reference period, and combined with the weak
profitability of the project business, it caused the result to remain clearly
weaker than that of the reference period.
In the period under review, the most significant new order in the project
business was the modernisation of the pulp dryer at the Södra Cell Mönsterås
pulp mill. There have been clear signs that the market situation of the project
business is intensifying. The market situation of the service business has
continued to be fairly good for the time being.
In the period under review, the organisation and business structure of the
Vaahto Paper Technology division was clarified. Measures were taken to
strengthen the sales and product development operations in particular, while
cost-effectiveness was improved by combining overlapping operations.
As part of the strategy work at Vaahto Group, the possibilities for
clarification of the structure and organisation of the project business unit,
as well as potential options for business acquisitions or sales, are being
analysed.
The company has made a strategic decision to focus on the service business in
the Vaahto Paper Technology division, where possibilities for utilising
Vaahto's paper technology expertise have made themselves evident. A new
intensification programme has been started in the service business, the effects
of which are expected to be seen in the final months of the extended financial
year.
Vaahto Process Technology
The turnover of the Vaahto Process Technology division for the period under
review was 19.4 MEUR (15.7 MEUR), and its operating loss was 0.5 MEUR
(operating loss 1.2 MEUR). The turnover increased by 24% compared to the
reference period. The operating result improved but still remained negative.
The result was impacted by the low profitability of the vessel business during
the first six months of the financial year.
In terms of pricing, the market situation remained difficult for the division's
vessel business, but the number of confirmed orders and of projects in the
tender stage is rapidly growing. In August 2012, Japrotek Oy Ab received a
substantial order from Sasol Technology (Pty) Limited in South Africa for the
design, fabrication and site-assembly of eight large tank structures.
Vaahto Process Technology's market situation in the agitator business has
remained good, and the size of the order book is unchanged. Profitability
objectives for the agitator business have almost been met in the period under
review. The agitator business is considered part of the Group's strategic area
of focus.
Research and development
During the period under review, the Group's research and development activities
have focused on expanding the product range of the Vaahto Paper Technology
division's service business. The scope of research and development activities
remains at the level seen in the previous financial year.
Investments
The Group's capital expenditure during the period under review was 1.1 MEUR
(1.9 MEUR). It consisted mainly of machine and equipment investments for the
Vaahto Paper Technology division's service business.
Financing and taxes
The cash flow of the Group's business operations was -2.9 MEUR (-3.8 MEUR) and
the cash flow from investments -0.7 MEUR (7.1 MEUR) during the period under
review. At the end of the period under review, the interest-bearing liabilities
amounted to 17.2 MEUR. The Group's consolidated balance sheet total was 28.8
MEUR (36.5 MEUR), with an equity ratio of 0.3% (17.8%). Measures have been
taken in the Group to improve the financial position and the equity ratio. The
repayment covenant conditions related to the equity ratio of the Group involved
in the loans from the from credit institutions were violated on the Interim
Report date, 31 August 2012, and because of that, those long-term loans has
been recorded as current liabilities. The financial negotiations with the
financier are currently pending.
During the fiscal period 2011-2012 the Group has booked total 1.4 MEUR
impairment losses related to deferred tax assets recognized for tax losses.
Human resources
The average number of personnel employed by the Group during the period under
review was 336 (349).
Ari Viinikkala, M.Sc. (Econ.), has been appointed the acting CEO of Vaahto
Group Plc Oyj as of 4 April 2012.
Directed share issue and share exchange agreement
The company's Board of Directors decided on 19 April 2012 to issue 600,000 new
shares and to deviate from the shareholders' subscription privilege, issuing
the shares to a group of selected investors instead. Based on the discussions
with the investors, the subscription price was agreed at 3.50 EUR per share,
thus the total subscription price amounted to 2,100,000 EUR.
The company's Board also decided to approve a share exchange agreement, which
was signed on 19 April 2012, concerning the company's subsidiary AP-Tela Oy, as
well as a directed share issue based on the agreement in order to carry out a
share exchange for the minority shareholders of AP-Tela Oy. Following the share
exchange, the Group's share in AP-Tela Oy is 100%.
Extraordinary general meeting on 19 June 2012
Vaahto Group Plc Oyj's extraordinary general meeting on 19 June 2012 appointed
Sami Alatalo as a new Board member. The general meeting also approved an
amendment to the statutes, based on which the company's normal financial year
was changed to 1 January-31 December. Consequently, the duration of the current
financial year will be sixteen (16) months (1 September 2011-31 December 2012).
International Financial Reporting Standards
The interim report has been prepared in accordance with International Financial
Reporting Standards (IFRS) IAS 34, Interim Financial Reporting.
Estimate for the financial year 1 September 2011-31 December 2012
There have been worrying trends in the development of the international
financial situation and the market situation of Vaahto Group's main branches of
industry has continued on its difficult course. Vaahto Group's operating result
is estimated to improve during the remaining months of the extended financial
year, but still remain loss-making. Consequently, it is estimated the result
for the entire financial year will be weaker than the 12-month result achieved
this far. Due to a market situation that is difficult to predict, there remains
significant uncertainty over the estimation of the result for the financial
year.
In order to secure the company's financial position, discussions are underway
to arrange long-term financing and the possibility of organising a share issue
is being investigated. In order to revive the Group, the Board is also
reviewing opportunities to make structural arrangements.
Interim report for 1 September 2011-30 November 2012
The extraordinary general meeting of Vaahto Group Plc Oyj on 19 June 2012
decided that the company's normal financial year would be changed to 1
January-31 December. The company's current financial year 1 September 2011-31
August 2012 is therefore extended to sixteen (16) months, ending on 31 December
2012. Vaahto Group will release its next interim report for fifteen months on
10 January 2013.
CONSOLIDATED STATEMENT OF Interim Interim Interim Annual
COMPREHENSIVE INCOME, IFRS Report Report Report Report
1000 EUR 1.3.201 1.3.201 1.9.2011- 1.9.201
2- 1- 31.8.2012 0-
31.8.20 31.8.20 12 months 31.8.20
12 11 11
6 6 12
months months months
Net sales 21 765 30 404 48 259 55 318
Change in finished goods -260 365 -545 547
and work in progress
Production for own use 333 432 677 1 183
Other operating income 0 222 56 390
Share of profits of affiliated 2 -5 16 -4
companies
Material and services -10 187 -16 561 -23 476 -28 614
Employee benefit expenses -7 974 -8 675 -17 928 -17 586
Depreciations -1 051 -1 059 -2 053 -2 115
Other operating expenses -4 544 -5 101 -9 845 -10 424
Operating profit or loss -1 915 22 -4 839 -1 304
Financing income 22 33 31 320
Financing expenses -534 -561 -954 -963
Profit or loss before taxes -2 428 -506 -5 762 -1 946
Tax on income from operations -1 659 -672 -1 816 -172
Profit or loss for the period -4 087 -1 178 -7 578 -2 118
Other comprehensive income:
Translation differences 30 5 38 -1
Other comprehensive income, 30 5 38 -1
net of tax
Total comprehensive income -4 057 -1 173 -7 540 -2 120
Net profit or loss attributable:
Equity holders of the parent -4 103 -1 226 -7 578 -2 225
Non-controlling interest 16 48 0 107
Total -4 087 -1 178 -7 578 -2 118
Total comprehensive income
attributable:
Equity holders of the parent -4 072 -1 221 -7 540 -2 226
Non-controlling interest 16 48 0 107
Total -4 057 -1 173 -7 540 -2 120
Earnings per share calculated
on profit attributable to
equity holders of the parent:
EPS undiluted, euros/share -1,13 -0,41 -2,29 -0,75
EPS diluted, euros/share -1,13 -0,41 -2,29 -0,75
Average number of shares (1000 shares) 3 639 2 986 3 313 2 953
CONSOLIDATED Interim Annual
BALANCE SHEET, IFRS Report Report
1000 EUR 31.8.2012 31.8.20
11
Assets
Intangible assets 532 1 030
Goodwill 1 720 1 702
Tangible assets 10 462 10 907
Shares in affiliated companies 74 57
Non-current trade and other 43 44
receivables
Other long-term investments 10 11
Deferred tax asset 773 2 274
Non-current assets 13 614 16 026
Inventories 4 632 5 601
Trade receivables 9 550 14 124
and other receivables
Tax receivable, income tax 15 0
Cash and bank 954 775
Current assets 15 151 20 500
Total assets 28 765 36 525
Equity and liabilities
Share capital 2 872 2 872
Share premium account 6 6
Other reserves 4 925 1 995
Translation differences 56 29
Retained earnings -7 813 -351
Equity attributable to 47 4 552
equity holders of the parent
Non-controlling interests 0 1 217
Shareholders' equity 47 5 768
Deferred tax liability 675 624
Long-term liabilities, 4 235 6 831
interest-bearing
Non-current provisions 322 273
Non-current liabilities 5 232 7 728
Short-term liabilities, 12 930 8 269
interest-bearing
Trade payables and other liabilities 10 210 14 573
Tax liability 347 186
Current liabilities 23 486 23 028
Liabilities 28 718 30 757
Total equity and liabilities 28 765 36 525
KEY FIGURES, IFRS Interim Annual
Report Report
1.9.2011- 1.9.201
31.8.2012 0-
12 months 31.8.20
11
12 months
Operating profit or loss 1000 EUR -4 839 -1 304
Operating profit or loss % of turnover -10,0 -2,4
Return on equity % -260,6 -31,0
Return on investment % -25,3 -4,2
Earnings per share EUR -2,29 -0,75
Shareholders' equity per share EUR 0,01 1,52
Solidity % 0,3 17,8
Gearing 34 406,6 248,3
Order backlog 1000 EUR 25 663 22 401
Gross investments 1000 EUR 1 105 1 879
Total average number of personnel 336 348
CONSOLIDATED FLOW OF Interim Annual
FUNDS STATEMENT, IFRS Report Report
1000 EUR 1.9.2011- 1.9.201
31.8.2012 0-
12 months 31.8.20
11
12
months
Profit or loss before taxes -5 762 -1 946
Adjustments 3 048 2 429
Change in working capital 919 -3 470
Financial income and expenses and -1 096 -843
taxes
Flow of funds from operations -2 891 -3 831
Investments in tangible and -1 105 -1 879
intangible assets
Increase caused by the change in Group -18 0
structure
Income from sales of tangible 399 8 934
and intangible assets
Repayments of loans 1 1
Flow of funds from investments -723 7 055
Share issue 1 728 0
Increase of the interest-bearing 4 166 5 329
liabilities
Decrease of the interest-bearing -2 101 -8 338
liabilities
Flow of funds from financial items 3 793 -3 009
Change of liquid funds 179 215
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY,
IFRS 1000 EUR
1000
EUR
Change Share Share Reserve Reserve Transla Re- Total Non-co
Total
s in capita premiu for fund tion tained ntroll
share l m investe differe earn- ing
holder accoun d nces ings intere
s' t unrestr sts
equit icted
y equity
1.9.20
11 -
31.8.
2012
Shareh 2 872 6 0 1 995 29 -351 4 552 1 217 5
768
olders
'
equit
y in
the
begin
ning
of
the
fisca
l
perio
d
Total 0 0 0 0 27 -7 567 -7 540 0 -7
540
compr
ehensi
ve
incom
e
Transa
ctions
with
owner
s:
Share 0 0 2 100 0 0 0 2 100 0 2
100
issue
Transa 0 0 -372 0 0 0 -372 0
-372
ction
costs
for
equit
y
Increa 0 0 1 112 0 0 105 1 217 0 1
217
se in
inter
est in
subsi
diary
Decrea 0 0 0 0 0 0 0 -1 217 -1
217
se in
inter
est in
subsi
diary
Deferr 0 0 91 0 0 0 91 0
91
ed
taxes
'
share
of
perio
ds
movem
ents
Shareh 2 872 6 2 931 1 995 56 -7 813 47 0
47
olders
'
equit
y at
the
end
of
the
perio
d
Change Share Share Reserve Reserve Transla Re- Total Non-co
Total
s in capita premiu for fund tion tained ntroll
share l m investe differe earn- ing
holder accoun d nces ings intere
s' t unrestr sts
equit icted
y equity
1.9.20
10 -
31.8.
2011
Shareh 2 872 6 0 1 995 41 1 864 6 778 1 110 7
888
olders
'
equit
y in
the
begin
ning
of
the
fisca
l
perio
d
Total 0 0 0 0 -12 -2 214 -2 226 107 -2
120
compr
ehensi
ve
incom
e
Shareh 2 872 6 0 1 995 29 -351 4 552 1 217 5
768
olders
'
equit
y at
the
end
of
the
perio
d
SEGMENT INFORMATION, IFRS
NET SALES BY OPERATING Interim Interim Interim Annual
SEGMENTS, IFRS Report Report Report Report
1000 EUR 1.3.201 1.3.201 1.9.201 1.9.2010-
2- 1- 1- 31.8.2011
31.8.20 31.8.20 31.8.20 12 months
12 11 12
6 6 12
months months months
Vaahto Paper Technology 11 461 22 214 28 966 39 653
Vaahto Process Technology 10 361 8 196 19 399 15 707
Net sales -56 -6 -106 -42
between segments
Group total 21 765 30 404 48 259 55 318
NET SALES BY MARKET AREAS, Interim Interim Interim Annual
IFRS Report Report Report Report
1000 EUR 1.3.201 1.3.201 1.9.201 1.9.2010-
2- 1- 1- 31.8.2011
31.8.20 31.8.20 31.8.20 12 months
12 11 12
6 6 12 months months months
Finland 7 352 7 497 20 614 14 176
Other Europe 11 674 8 346 21 346 16 828
Asia 2 512 13 737 5 620 23 096
Africa -221 363 147 425
North America 55 137 138 436
Other 393 324 393 356
Group total 21 765 30 404 48 259 55 318
OPERATING PROFIT OR Interim Interim Interim Annual
LOSS BY OPERATING Report Report Report Report
SEGMENTS, IFRS 1.3.201 1.3.201 1.9.201 1.9.2010-
1000 EUR 2- 1- 1- 31.8.2011
31.8.20 31.8.20 31.8.20 12 months
12 11 12
6 6 12
months months months
Vaahto Paper Technology -2 263 476 -4 352 -102
Vaahto Process Technology 363 -461 -486 -1 202
Operating profit or -15 7 -2 0
loss between segments
Group total -1 915 22 -4 839 -1 304
TOTAL AVERAGE NUMBER OF Interim Interim Interim Annual
PERSONNEL BY OPERATING Report Report Report Report
SEGMENTS 1.3.201 1.3.201 1.9.201 1.9.2010-
2- 1- 1- 31.8.2011
31.8.20 31.8.20 31.8.20 12 months
12 11 12
6 6 12
months months months
Vaahto Paper Technology 210 220 215 223
Vaahto Process Technology 121 134 121 125
Group total 331 354 336 348
Figures are in thousand euros unless stated
otherwise. Figures are unaudited.
NOTES REQUIRED BY IAS 34
Accounting principles
The Interim Report was drawn up according to the same accounting
principles and calculation methods as the previous financial statements
for the fiscal period that ended on 31 August 2011.
Dividends paid
During the period under the review, Vaahto Group Plc
Oyj paid no dividends.
Lahti, 10 October 2012
VAAHTO GROUP PLC OYJ
Board of Directors
Vaahto Group is a globally operating high technology company serving process
industry in the fields of pulp and paper machinery and process machinery.
Information:
Ari Viinikkala
Vaahto Group Plc Oyj
acting CEO
tel. +358 400 127664
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