2011-02-18 10:20:00 CET
2011-02-18 10:20:03 CET
REGULATED INFORMATION
Aspocomp Group - Financial Statement Release
CORRECTION: Aspocomp's Financial Statements 2010
Espoo, Finland, 2011-02-18 10:20 CET (GLOBE NEWSWIRE) -- Aspocomp Group Plc.,
Financial statements release, February 18, 2011 at 11:20 AM
CORRECTION: Aspocomp's Financial Statements 2010
Financial Statements 2010 published today by Aspocomp Group Plc shall be
corrected in the following way:
BOARD OF DIRECTORS' DIVIDEND PROPOSAL
The Board of Directors will propose to the Annual General Meeting to be held on
April 20, 2011, that no dividend be paid for the financial year January 1, 2010
- December 31, 2010.
Corrected notice as a whole:
Aspocomp Group Plc., Financial statements release, February 18, 2011 at 9:00 AM
ASPOCOMP'S FINANCIAL STATEMENTS 2010
Key figures in brief
- Net sales: EUR 18.8 million (EUR 13.2 million 1-12/2009)
- Operating result before depreciation (EBITDA): EUR 3.1 million (-0.5)
- Operating result (EBIT): EUR 1.8 million (-1.7)
- Earnings per share (EPS): EUR 0.01 (-0.05)
- Cash flow from operations: EUR 4.1 million (0.9)
Key figures for 10-12/2010 in brief
- Net sales: EUR 4.5 million (EUR 4.2 million 10-12/2009)
- Operating profit before depreciation (EBITDA): EUR 0.0 million (0.7)
- Operating profit (EBIT): EUR -0.3 million (0.4)
- Earnings per share (EPS) from continuing operations: EUR -0.01 (EUR 0.00)
CEO'S REVIEW
A good year finished with a weak fourth quarter. Demand stayed at a reasonable
level, but a lower share of high margin quick-turn deliveries and a rise in
material costs weakened profitability. Capacity overload caused by strong
demand during the first half of the year resulted in higher than expected
maintenance and service expenses in the last quarter. In addition, one-time
ramp-up costs related to a new client weakened profit.
However, 2010 was satisfactory overall. Net sales improved by over 40 percent
to nearly EUR 19 million and operating profit was clearly in the black.
Impressively, cash flow stayed over EUR 2 million positive even though
investments were greater than in an average year.
After a minor dip, demand seems to be recovering again. Our short-term
challenges include passing the increased raw material costs to the end product
prices and the optimization of the production capacity for increasingly
complicated products. We are going forward into 2011 with confidence.
NET SALES AND EARNINGS 2010
Net sales for the financial year amounted to EUR 18.8 million, up 43 percent on
1-12/2009. During the second and the third quarters of the year - especially
the second - demand for quick-turn and emergency deliveries was very strong.
This was caused by the fast recovery of global PCB demand at the beginning of
2010, which took the volume manufacturers and their raw material suppliers by
surprise.
The five largest customers accounted for 77 percent of net sales (72%). In
geographical terms, 95 percent of net sales were generated in Europe (81%) and
5 percent in Asia (14%).
The operating result was EUR 1.8 million (-1.7 Me 1-12/2009). Earnings saw
strong improvement thanks to better demand and the cost structure adjustments
implemented in 2009.
The Group's net financial expenses amounted to EUR -1.2 million (-1.0).
The result for the financial year was EUR 0.7 million (-2.5) and earnings per
share were EUR 0.01 (-0.05).
NET SALES AND EARNINGS IN OCTOBER-DECEMBER
Fourth-quarter net sales amounted to EUR 4.5 million, up 5 percent on
10-12/2009. The five largest customers accounted for 80 percent of net sales
(71% 10-12/2009). In geographical terms, 96 percent of net sales were generated
in Europe (88%) and 4 percent in Asia (12%).
The operating result was EUR -0.3 million (0.4 Me 10-12/2009). The result was
weakened by one-time ramp-up costs related to a new client. In addition, the
strong demand during the first half of the year was reflected in increased
maintenance and service expenses in the fourth quarter. Increased raw-material
prices impacted negative on profitability. Consequently, the company has taken
actions to transfer the increased raw material prices, especially gold prices,
to the end products. Fixed expenses include one-time advisory costs.
The Group's net financial expenses amounted to EUR -0.3 million (-0.3).
The result for the review period was EUR -0.6 million (0.1) and earnings per
share were EUR -0.01 (0.00).
INVESTMENTS AND R&D
Investments amounted to EUR 1.8 million (EUR 0.8 million 1-12/2009).
Majority of the investments were related to the implementation of a new image
transfer process on the outer-layer process of PCB manufacturing. Other
investments were related to the outer-layer plating, high precision routing and
deposition of solder mask. All the investments improve Oulu plant's technical
capability.
R&D costs consist of general production development costs. These costs do not
fulfill the IAS 38 definition of either development or research and are
therefore booked into overhead costs.
FINANCING
The Group's financial position remained challenging, but stable. Cash assets
amounted to EUR 4.7 million at the end of the period (EUR 3.0 million 12/2009).
Cash flow from operations during the financial year was EUR 4.1 million (EUR
0.9 million 1-12/2009). In August the company made EUR 0.5 million repayment of
interest bearing debts under the voluntary debt restructuring.
The nominal value of interest-bearing liabilities was EUR 23.5 million (EUR
24.3 million 12/2009). Gearing decrease to 481.9 percent (607.1%).
Non-interest-bearing liabilities amounted to EUR 8.2 million (6.1).
The Group's equity ratio at the end of the period stood at 10.6 percent (10.0%).
RECEIVABLE FROM TTM TECHNOLOGIES INC.
Aspocomp has booked a receivable from TTM Technologies Inc. (TTM) in its
balance sheet. The receivable is related to Aspocomp's ownership arrangements
in 2007, where Aspocomp's production facilities in China and India were
transferred to Meadville Aspocomp (BVI) Holdings Ltd. (MAH), a company
established together with Meadville Holdings Limited. Meadville originally
bought an 80 percent stake in MAH, and a put and call option deed was signed
for the remaining 20 percent. According to IFRS this arrangement is considered
a hundred-percent sale and therefore Aspocomp's 20 percent holding under the
option agreement is presented in other receivables.
In 2010, the PCB operations of Meadville Holdings Ltd. were acquired by TTM.
The rights and responsibilities of MAH were transferred by agreements to TTM
and Aspocomp.
The receivable is booked under non-current receivables at the minimum value
specified in the put and call option deed. The minimum value was EUR 16.6
million at the end of the period. The other two valuation scenarios presented
in the option deed are considered non-substantive due to the challenging
current and expected future operations of MAH. See also TTM's report (page 9):
http://www.ttmtechnologies.com/investors/documents/quarterly/q3_2010.pdf.
Aspocomp did not receive any dividend or other income from MAH in 2010.
GROUP STRUCTURE
Aspocomp Oulu Oy - in which Aspocomp has a 90 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. It is likely that the operations of the company are ceased. 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. The
holding does not have any value in Aspocomp Group's balance sheet.
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. The
shareholders' equity of Aspocomp Group's parent company, Aspocomp Group Plc.,
was EUR 3.4 million negative at the end of the fourth period. However, the
shareholders' equity of Aspocomp Group was EUR 3.6 million positive.
SHARES AND SHARE CAPITAL
The total number of Aspocomp's shares at December 31, 2010 was 49 905 130 and
the share capital stood at EUR 20 082 052. The parent company held 200 000
treasury shares, which have a nominal value of approximately EUR 758 thousand.
This represents 0.4 percent of the number of and the aggregate votes conferred
by all the shares. Aspocomp's subsidiaries do not hold any shares in the parent
company.
A total of 50 199 199 Aspocomp Group Plc. shares were traded on NASDAQ OMX
Helsinki during the period from January 1 to December 31, 2010. The aggregate
value of the shares exchanged was EUR 8 115 860. The shares traded at a low of
EUR 0.12 and a high of EUR 0.21. The average share price was EUR 0.16. Theclosing price at December 30, 2010 was EUR 0.18, which translates into market
capitalization of EUR 8 982 923.
Nominee-registered shares accounted for 3.3 percent of the total shares.
PERSONNEL
During the period, Aspocomp had an average of 98 employees (101). The personnel
count on December 31, 2010 was 98 (96). Of them, 67 (67) were non-salaried and
31 (29) salaried employees.
DECISIONS OF THE ANNUAL GENERAL MEETING
The Annual General Meeting of Aspocomp Group Plc. held on April 13, 2010
re-elected the current Board and decided that the remunerations of the members
of the Board will remain the same as in 2009. The General Meeting also decided
to amend the company's Articles of Association. Furthermore, the Meeting
decided not to pay dividend for the period.
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 2010 financial year.
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 percent of the annual remuneration
will be paid in cash and 40 percent in company shares, which will be acquired
and distributed to Board members. EUR 1 000 per meeting will be paid to the
chairman and EUR 500 per meeting to the other members. The members of the Board
residing outside of the Greater Helsinki Area are reimbursed for reasonable
travel and lodging expenses. The auditor will be paid according to invoice.
The Annual General Meeting decided to amend the Articles of Association so that
a following sentence was added at the end of the Article 10 (notice of
meeting): “However, the notice to the Annual General Meeting must be conveyed
no later than nine (9) days before the record date of the Annual General
Meeting.” The amendment is based on the recent amendment of Companies Act.
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.
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 SHORT-TERM BUSINESS RISKS
Significant indebtedness
The Aspocomp Group's interest-bearing liabilities at December 31, 2010 had a
nominal value of about EUR 23.5 million and amounted to about EUR 22.0 million
under IFRS.
Liquidity and financial risks
Because of the agreement on debt restructuring, management of the Group's
liquidity risk is based on the cash assets of the parent company and the cash
flow generated by the Oulu plant. If Aspocomp Group Plc. does not obtain
financing from Aspocomp Oulu Oy or other ways of financing, the company may
ultimately become insolvent.
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 will be held in May 2011. The total amount of the claims
is EUR 0.3 million.
The aforementioned compensations and claims do not have a profit impact during
the financial year, because Aspocomp has made a reservation in its financial
statements 2007. The claims are related to the notice time salaries of the
closed, heavily loss-making Evreux plant. The closure took place in 2002.
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.
Increased material cost and lack of capacity
Strong global PCB demand and higher raw material prices have raised the prices
of laminates and chemicals used in PCB production. If Aspocomp fails to
transfer the increased raw material cost to its products, profitability will
weaken.
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
As Aspocomp's operations focus on prototypes and quick-turn deliveries, it is
difficult to forecast full-year net sales. In 2011 net sales is expected to
grow, and operating results will be positive but lower than in 2010.
In addition to developing the continuing operations of the company, the Board
of Directors is looking into various structural development solutions,
including carrying out company reorganization in the future.
PUBLICATION OF THE FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS
Aspocomp's financial statements and the Report of the Board of Directors for
2010 will be released in full with the Annual Report on Friday, March 11, 2011.
BOARD OF DIRECTORS' DIVIDEND PROPOSAL
The Board of Directors will propose to the Annual General Meeting to be held on
April 20, 2011, that no dividend be paid for the financial year January 1, 2010
- December 31, 2010.
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 financial statements bulletin 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, 2009 have been applied in the preparation of this report. However,
as of January 1, 2010 the company has applied the following new or modified
standards:
- IFRS 3 (revised), Business Combinations
- IAS 27 (revised), Consolidated and Separate Financial Statements
The application of the aforementioned standards did not have significant impact
on the reported figures.
SUMMARY OF FINANCIAL STATEMENTS AND NOTES
PROFIT & LOSS STATEMENT, OCTOBER-DECEMBER 10-12/10 10-12/09
1000 e % 1000 e %
NET SALES 4 478 100,0 4 249 100,0
Other operating income 2 0,0 62 1,5
Materials and services -1 663 -37,1 -1 289 -30,3
Personnel expenses -1 462 -32,7 -1 297 -30,5
Other operating costs -1 324 -29,6 -1 041 -24,5
Depreciation and amortization -325 -7,3 -301 -7,1
-----------------------------------------------------------------------------
OPERATING PROFIT/LOSS -294 -6,6 382 9,0
Financial income and expenses -275 -6,1 -296 -7,0
-----------------------------------------------------------------------------
PROFIT/LOSS BEFORE TAX -569 -12,7 86 2,0
Income taxes 5 0,1 -5 -0,1
-----------------------------------------------------------------------------
PROFIT/LOSS FOR THE PERIOD -564 -12,6 80 1,9
Other comprehensive income for the period, net of tax
Translation differences 2 0,0 0 0,0
-----------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD -562 -12,6 80 1,9
Profit/loss for the period attributable to:
Non-controlling interests -3 -0,1 67 1,6
Equity shareholders -561 -12,5 13 0,3
Total comprehensive income attributable to:
Non-controlling interests -3 -0,1 67 1,6
Equity shareholders -559 -12,5 13 0,3
JANUARY-DECEMBER 1-12/10 1-12/09
1000 e % 1000 e %
NET SALES 18 785 100,0 13 161 100,0
Other operating income 231 1,2 238 1,8
Materials and services -5 912 -31,5 -4 323 -32,8
Personnel expenses -5 750 -30,6 -5 575 -42,4
Other operating costs -4 250 -22,6 -4 026 -30,6
Depreciation and amortization -1 265 -6,7 -1 145 -8,7
-----------------------------------------------------------------------------
OPERATING PROFIT/LOSS 1 841 9,8 -1 670 -12,7
Financial income and expenses -1 167 -6,2 -969 -7,4
-----------------------------------------------------------------------------
PROFIT/LOSS BEFORE TAX 673 3,6 -2 639 -20,1
Income taxes 2 0,0 136 1,0
-----------------------------------------------------------------------------
PROFIT/LOSS FOR THE PERIOD 675 3,6 -2 503 -19,0
Other comprehensive income for the period, net of tax
Translation differences 15 0,1 10 0,1
-----------------------------------------------------------------------------
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 690 3,7 -2 493 -18,9
Profit/loss for the period attributable to:
Non-controlling interests 293 1,6 12 0,1
Equity shareholders 382 2,0 -2 515 -19,1
Total comprehensive income attributable to:
Non-controlling interests 293 1,6 12 0,1
Equity shareholders 397 2,1 -2 505 -19,0
Earnings per share
Basic EPS 0,01 -0,05
Diluted EPS 0,01 -0,05
CONSOLIDATED BALANCE SHEET 12/10 12/09 Change
1000 e 1000 e %
ASSETS
NON-CURRENT ASSETS
Intangible assets 3 000 3 000 0,0
Tangible assets 3 669 3 066 19,7
Available for sale investments 16 44 -62,9
Other non-current receivables 16 601 16 217 2,4
----------------------------------------------------------------------
TOTAL NON-CURRENT ASSETS 23 287 22 327 4,3
CURRENT ASSETS
Inventories 2 114 1 963 7,7
Short-term receivables 3 763 4 058 -7,3
Cash and bank deposits 4 712 3 038 55,1
----------------------------------------------------------------------
TOTAL CURRENT ASSETS 10 589 9 059 16,9
TOTAL ASSETS 33 876 31 386 7,9
SHAREHOLDERS' EQUITY AND LIABILITIES
Share capital 20 082 20 082 0,0
Share premium 27 918 27 918 0,0
Treasury shares -758 -758 0,0
Special reserve 45 989 45 989 0,0
Reserve for invested non-restricted equity 23 885 23 885 0,0
Retained earnings -114 281 -114 678 -0,3
Equity attributable to shareholders 2 835 2 438 16,3
Non-controlling interests 758 706 7,4
----------------------------------------------------------------------
TOTAL EQUITY 3 593 3 143 14,3
Long-term financing loans 21 852 21 878 -0,1
Provisions 215 319 -32,6
Short-term financing loans 173 242 -28,6
Trade and other payables 8 042 5 804 38,6
----------------------------------------------------------------------
TOTAL LIABILITIES 30 283 28 243 7,2
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 33 876 31 386 7,9
CONSOLIDATED CHANGES IN EQUITY, JANUARY-DECEMBER
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 at 20 082 27 918 69 874 -758 -9 -114 669 2 438 706 3 143
1.1.10
Comprehensive income for the 382 382 53 435
period
Translation differences 15 15 15
--------------------------------------------------------------------------------
Balance at 20 082 27 918 69 874 -758 6 -114 287 2 835 758 3 593
31.12.10
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 at 20 082 27 918 69 874 -758 -19 -112 154 4 943 694 5 637
1.1.09
Comprehensive income for the -2 515 -2 515 12 -2 503
period
Translation differences 10 10 10
--------------------------------------------------------------------------------
Balance at 20 082 27 918 69 874 -758 -9 -114 669 2 438 706 3 143
31.12.09
CONSOLIDATED CASH FLOW STATEMENT, JANUARY-DECEMBER
1000 e 1-12/10 1-12/09
Profit for the period 675 -2 503
Adjustments 2 286 1 999
Change in working capital 1 096 1 404
Received interest income and dividends 43 17
Paid interest expenses -6 -37
Paid taxes 1 -3
----------------------------------------------------------------------
Operational cash flow 4 095 877
Investments -1 754 -819
Proceeds from sale of property, plant and equipment 75 99
----------------------------------------------------------------------
Cash flow from investments -1 679 -720
Decrease in financing -742 -1 375
Increase in financing 0 0
----------------------------------------------------------------------
Cash flow from financing -742 -1 375
Change in cash and cash equivalents 1 674 -1 217
Cash and cash equivalents at the beginning of period 3 038 4 255
Currency exchange differences 0 0
----------------------------------------------------------------------
Cash and cash equivalents at the end of period 4 712 3 038
KEY FINANCIAL INDICATORS 12/10 12/09
Equity per share, EUR 0,06 0,05
Equity ratio, % 10,6 10,0
Gearing, % 481,9 607,1
Earnings per share (EPS)
Basic and diluted EPS, EUR 0,01 -0,05
CONTINGENT LIABILITIES
1000 e 12/10 12/09
Mortgages given for security for liabilities 15 400 15 400
Operating lease liabilities 670 666
Other liabilities 100 100
------------------------------------------------------------
Total 16 170 16 166
FORMULAS FOR KEY INDICATORS
Equity/share, EUR = Equity attributable to
shareholders
--------------------------
Number of shares at the
end of period
Equity ratio, % = Equity x 100
--------------------------
Total assets - advances
received
Gearing, % = Net interest-bearing x 100
liabilities
--------------------------
Total equity
Earnings/share (EPS), EUR = Profit attributable to
equity shareholders
-------------------------------------------------
Adjusted weighted average number of shares outstanding
All figures are unaudited.
Espoo, February 18, 2011
Aspocomp Group Plc.
Board of Directors
For further information, please contact Sami Holopainen, CEO, tel. +358 9 591
81.
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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