2013-04-25 08:30:03 CEST
2013-04-25 08:30:10 CEST
REGULATED INFORMATION
Scanfil Oyj - Interim report (Q1 and Q3)
SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 31 MARCH 2013
SCANFIL PLC INTERIM REPORT 25 APRIL 2013 9.30 A.M.
SCANFIL GROUP'S INTERIM REPORT 1 JANUARY - 31 MARCH 2013
January - March
- Turnover totalled to EUR 44.0 million (Q1 2012: 42.6) up 3.3%
- Operating profit EUR 2.0 million (Q1 2012: 1.4),
4.6% of turnover (Q1 2012: 3.4%)
- Profit for the review period was EUR 1.1 million (Q1 2012: 1,2)
- Earnings per share were EUR 0.02 (Q1 2012: 0.02)
Petteri Jokitalo, CEO of Scanfil plc:
“The market situation in the first quarter continued to be challenging as
expected. Turnover increased by approximately 3% compared to the previous year.
The growth was due to the positive development in the demand for professional
electronics products and a broader customer base. Sales to telecommunication
customers decreased from the previous year.
Operating profit for the period was EUR 2.0 million, for an increase of
approximately 40% year on year. This was due to successful cost control and an
increase in sales to professional electronics customers.
Scanfil's solid financial position allows us to develop the company according
to the customers' needs."
BUSINESS TRENDS
Sales to professional electronics customers were up more than 10% from the
previous year, representing 81% (76% in the corresponding period in 2012) of
the turnover. Sales to telecommunication customers decreased from the previous
year, representing 19% (24%) of the turnover.
The new enterprise resource planning system was first adopted by the Finnish
organization at the end of March. The project will be continued in stages with
a view to introducing the integrated new system throughout the Group in 2014.
In order to respond to the growing demand for professional electronics products
in Europe, the company increased the mechanics production capacity of the
Estonian plant and invested in new test equipment for electronics production.
An investment was also made in state-of-the-art test equipment at the Suzhou
plant. The equipment will shorten the prototype production stage, and products
can be more speedily introduced to volume production.
FINANCIAL DEVELOPMENT
The Group's turnover for January - March was EUR 44.0 (42.6) million.
Distribution of turnover based on the location of customers was as follows:
Finland 47% (47%), rest of Europe 23% (19%), Asia 28% (33%), USA 2% (1%).
Operating profit for the Group during the review period was EUR 2.0 (1.4)
million, representing 4.6% (3.4%) of turnover. The 2012 operating profit
includes the following non-recurring items: Scanfil EMS Oy's share of the
damages paid by Ojala-Yhtymä Oy, EUR 1.2 million, Scanfil plc's listing
expenses, EUR 0.4 million, and the provision for expenses due to the
restructuring of the Hangzhou subsidiary, EUR 0.4 million, for a total of EUR
+0.5 million. Operating profit in 2012 excluding non-recurring items was EUR
1.0 million, representing 2.3% of turnover. Earnings for the review period
amounted to EUR 1.1 (1.2) million. Earnings per share were EUR 0.02 (0.02) and
return on investment was 6.3% (6.7%).
FINANCING AND CAPITAL EXPENDITURE
The Group enjoys a strong financial position.
The consolidated balance sheet totalled EUR 135.6 (133.1) million. Liabilities
amounted to EUR 57.7 (63.8) million, EUR 28.5 (27.2) million of which were
non-interest-bearing and EUR 29.2 (36.6) million interest-bearing. The equity
ratio was 57.5% (52.0%) and gearing 3.0% (-1.1%). The equity per share was EUR
1.35 (1.20).
Liquid cash assets totalled EUR 26.8 (37.4) million and include EUR 10.1
million over a three-month deposits.
Cash flows from operating activities in the review period of January - March
came to EUR -2.1 (3.2) million. The change in working capital during the period
amounted to EUR -5.1 (0.1) million mainly due to the increase in trade
receivables. Cash flow from investment activities was EUR -1.9 (-0.5).
Gross investments in fixed assets totalled EUR 2.4 (0.5) million, which is 5.4%
(1.2%) of turnover. The investments mainly consist of the Estonian subsidiary's
investments in machinery and equipment. Depreciations were EUR 1.1 (1.1)
million.
DECISIONS BY THE ANNUAL GENERAL MEETING AND BOARD OF DIRECTORS' AUTHORISATION
Scanfil plc's Annual General Meeting was held at company's main office in Sievi
on 18 April 2013.
According to Board of Directors' proposal The Annual General Meeting decided to
distribute a dividend total of EUR 0.04 per share. The record date for the
payment of dividend is 23 April 2013 and the date of payment of the dividend is
30 April 2013.
The Meeting decided that the Board of Directors shall consist of five members.
Jorma J. Takanen, Jarkko Takanen and Tuomo Lähdesmäki were re-elected as
members of the Board of Directors and Harri Takanen and Riitta Kotilainen were
elected as new members of Board of Directors. The meeting decided that the
remuneration of Chairman of the Board of Directors is EUR 2,000/month and
remuneration of a member of the Board of Directors is EUR 1,500/month.
In its meeting, held after the General Meeting, the Board of Directors elected
Harri Takanen as the Chairman of the Board of Directors.
The Meeting decided according to the Board of Directors' proposal to authorize
the Board of Directors to decide on the acquisition of the Company's own shares
with distributable assets.
The Meeting decided to authorize the Board of Directors to decide on granting
option rights to specific key people of the company and its subsidiaries.
The Board of Directors' proposals to the Annual General Meeting are available
on the company website at www.scanfil.com.
The minutes of the Annual General Meeting will be available on the company's
website, www.scanfil.com, as of 2 May 2013.
SHARE TRADING AND SHARE PERFORMANCE
The highest trading price during the review period was EUR 0.96 and the lowest
EUR 0.82, the closing price for the period standing at EUR 0.87. A total of
482,033 shares were traded during the period, corresponding to 0.8% of the
total number of shares. The market value of the shares on 31 March 2013 was EUR
50.2 million.
PERSONNEL
Scanfil Group's personnel averaged 1,685 (1,744) employees during the review
period. At the end of the period, the Group employed 1,675 (1,746) people, of
whom 266 (297) worked in the company's Finnish units and 1,409 (1,449) in the
company's units outside Finland. In all, 84% (83%) of the Group's personnel
were employed by subsidiaries outside Finland on 31 March 2013.
FUTURE PROSPECTS
Due to the continued uncertain situation in the global economy, the
predictability of the contract manufacturing market is very poor.
Scanfil estimates that its turnover for 2013 compared to 2012 will increase and
that the operating profit will be on par with 2012.
OPERATIONAL RISKS AND UNCERTAINTIES
Scanfil Group's most significant short-term risks and uncertainty factors are
related to general economic development continuing to be weak in 2013. The slow
growth in global economy and trade weaken the predictability of Scanfil's
operating environment. The weakening of international demand on the contract
manufacturing market and for investment commodities due to sluggish economic
growth may hamper or negatively affect the demand for Scanfil's
telecommunications and professional electronics products. The fall in demand
may hamper the growth of Scanfil's business and negatively affect the company's
turnover and profitability.
In other respects, the risks facing Scanfil's business have remained
essentially the same. The company's risks and risk management are described in
greater detail on the company's website under Corporate Governance and in the
notes to the consolidated financial statements.
ACCOUNTING PRINCIPLES
The interim report has been prepared in accordance with the IAS 34 Interim
Financial Reporting standard, applying the following accounting policies with
the financial statements for 2012.
Individual figures and grand totals of tables have been rounded to the nearest
million euros, so they will not always add up. The figures are unaudited.
CONSOLIDATED INCOME STATEMENT
EUR million
1 - 3 1 - 3 1 - 12
2013 2012 2012
Turnover 44.0 42.6 180.9
Other operating income 0.1 1.2 1.3
Changes in inventories of finished goods
and work in progress 0.6 0.0 -0.1
Manufacturing for own use 0.0 0.0
Expenses -41.6 -41.4 -169.5
Depreciation -1.1 -1.1 -4.5
Operating profit 2.0 1.4 8.1
Financial income and expenses -0.5 0.1 -0.1
Share in the associated company´s profit -0.2 -0.1 -0.4
Profit before taxes 1.3 1.4 7.6
Income taxes -0.2 -0.2 -1.9
Net profit for the period 1.1 1.2 5.7
Attributable to:
Equity holders of the parent 1.1 1.2 5.7
Earnings per share for profit attributable to
shareholders of the parent:
basic earnings per share ( EUR) 0.02 0.02 0.10
The company does not have items that might dilute the earnings per
share.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million
1 - 3 1 - 3 1 - 12
2013 2012 2012
Net profit for the period 1.1 1.2 5.7
Other comprehensive income:
Translation differences 1.7 -1.5 -0.3
Derivative financial instrument 0.1 0.3 0.2
Other comprehensive income, net of tax 1.8 -1.3 -0.1
Total Comprehensive Income 2.9 -0.1 5.6
Attributable to: 2.9 -0.1 5.6
Equity holders of the parent
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million
Assets 31.3.2013 31.3.2012 31.12.2012
Non-current assets
Property, plant and equipment 31.0 26.4 29.9
Goodwill 2.2 2.2 2.2
Other intangible assets 4.1 3.7 3.7
Shares in associated companies 0.5 1.0 0.6
Available-for-sale investments 0.0 0.0 0.0
Receivables 0.2 0.3 0.2
Deferred tax assets 0.6 0.5 0.6
Total non-current assets 38.7 34.1 37.4
Current assets
Inventories 31.4 29.2 29.9
Loan receivables from associated companies 0.1 0.1
Trade and other receivables 38.2 31.8 32.0
Advance payments 0.2 0.1 0.4
Current tax 0.2 0.5 0.0
Available-for-sale investments, liquid assets 10.1 9.7
Available-for-sale investments, cash 5.9 26.3 5.5
equivalents
Cash and cash equivalents 10.9 11.0 15.0
Total current assets 96.9 98.9 92.7
Total assets 135.6 133.1 130.0
Shareholder's equity and liabilities 31.3.2013 31.3.2012 31.12.2012
Equity
Share capital 2,0 2,0 2,0
Translation differences 10,7 7,7 9,0
Other reserves 5,4 5,2 5,3
Reserve for invested unrestricted equity fund 10,7 10,7 10,7
Retained earnings 49,1 43,7 48,0
Total equity 77,9 69,3 75,0
Non-current liabilities
Deferred tax liabilities 0,0 0,0 0,0
Provisions 0.4 0.6 0.4
Interest bearing liabilities 19.4 27.4 18.9
Other liabilities 0.1
Total non-current liabilities 19.8 28.2 19.3
Current liabilities
Trade and other liabilities 27.1 26.1 25.4
Current tax 1.0 0.4 0.8
Interest bearing liabilities 9.7 9.1 9.5
Total current liabilities 37.9 35.7 35.7
Total liabilities 57.7 63.8 55.0
Total shareholder's equity and liabilities 135.6 133.1 130.0
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1.1-31.3.2013 1.1-31.3.2012 1.1-31.12.2012
Cash flow from operating
activities
Net profit 1.1 1.2 5.7
Adjustments for the net profit 2.0 1.9 7.4
Change in net working capital -5.1 0.1 -0.4
Paid interests and other financial 0.0 0.0 -0.8
expenses
Interest received 0.0 0.1 0.4
Taxes paid -0.1 -0.1 -1.1
Net cash from operating activities -2.1 3.2 11.2
Cash flow from investing
activities
Investments in tangible and -1.9 -0.5 -7.3
intangible assets
Sale of tangible and intangible 0.0 0.0 0.1
assets
Purchase of investments -9.7
Granted loans -0.0
Net cash from investing activities -1.9 -0.5 -16.9
Cash flow from financing
activities
Repayment of short-term loans
Repayment of long-term loans -8.9
Net cash from financing activities -8.9
Net increase/decrease in cash and -4.0 2.6 -14.6
cash equivalents
Cash and cash equivalents at 20.5 35.2 35.2
beginning of period
Cash transferred at the demerger 0.1 0.1
Changes in exchange rates 0.4 -0.6 -0.1
Cash and cash equivalents at end 16.8 37.4 20.5
of period
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY
EUR million
Equity attributable to equity holders of the parent company
Reserve for
invested
Share Translation Other unrestricted Retained Equity
Equity capital differences reserves equity fund earnings total
--------------------------------------------------------------------------------
1.1.2013 2.0 8.9 5.3 10.7 48.0 75.0
Total comprehensive 1.7 0.1 1.1 2.9
income
Equity
--------------------------------------------------------------------------------
31.3.2013 2.0 10.7 5.4 10.7 49.1 77.9
Equity attributable to equity holders of the parent company
Reserve for
invested
Share Translation Other unrestricted Retained Equity
Equity capital differences reserves equity fund earnings total
--------------------------------------------------------------------------------
1.1.2012 2.0 9.2 4.9 10.6 42.6 69.4
Items received in partial demerger 0.1 0.1
Transfer to 0.3 -0.3 0
funds
Total comprehensive -0.3 0.2 5.7 5.6
income
Equity
--------------------------------------------------------------------------------
31.12.2012 2.0 8.9 5.3 10.7 48.0 75.0
KEY INDICATORS
1 - 3 1 - 3 1 - 12
2013 2012 2012
Return on equity, % 5.9 6.7 7.9
Return on investment, % 6.3 6.7 8.1
Interest-bearing liabilities, EUR million 29.2 36.6 28.4
Gearing, % 3.0 -1.1 -2.4
Equity ratio, % 57.5 52.0 57.7
Gross investments in fixed assets, EUR million 2.4 0.5 7.2
% of net turnover 5.4 1.2 4.0
Personnel, average 1 685 1 744 1 669
Earnings per share, EUR 0.02 0.02 0.10
Shareholders´ equity per share, EUR 1.35 1.20 1.27
Number of shares at
the end of period, 000´s
- not counting own shares 57 730 57 730 57 730
- weighted average 57 730 57 730 57 730
The company has a EUR 29.2 million loan in connection with which the company has
entered
into interest and currency swap agreements to convert the SEK-denominated
principal
and cash flows of instalments and interest payments into euros. The interest and
currency swap agreement fully hedges the instalments and interest payments
against
fluctuations in exchange and interest rates.
Owing to the nature of the sector, the company´s order book covers only a short
period of time and
does not give an accurate picture of future development.
SEGMENT INFORMATION
EUR million
1 - 3 1 - 3 1 - 12
2013 2012 2012
Turnover
Europe 29.3 27.9 108.1
Asia 15.6 15.5 75.8
Turnover between segments -0.9 -0.7 -3.0
Total 44.0 42.6 180.9
Operating profit
Europe 1.6 1.9 5.2
Asia 0.5 -0.4 2.9
Total 2.0 1.4 8.1
Assets
Europe 67.9 67.8 64.2
Asia 65.0 62.0 62.9
Goodwill 2.2 2.2 2.2
Shares in associated companies 0.5 1.0 0.6
Total 135.6 133.1 130.0
CHANGES IN TANGIBLE NON-CURRENT ASSETS
EUR million
1 - 3 1 - 3 1 - 2
2013 2012 2012
Book value at the beginning of the period 29.9 27.0 27.0
Additions 2.0 0.5 7.0
Deductions 0.0 0.0 -0.1
Depreciations -1.1 -1.0 -4.3
Exchange rate differences 0.2 -0.1 0.3
Book value at the end of the period 31.0 26.4 29.9
CONTINGENT LIABILITIES
EUR million
1 - 3 1 - 3 1 - 12
2013 2012 2012
Given business mortgages 40.0 40.0 40.0
Pledged guarantees 1.0 0.9 1.3
Rental liabilities 0.1 0.0 0.1
Scanfil plc has granted Nordea Bank Finland Plc an absolute guarantee for the
payment
of Scanfil EMS Oy's loan of originally EUR 40 million and resulting obligations
to pay.
The capital of the loan on 31 March 2013 is EUR 29.2 million.
TRANSACTIONS WITH RELATED PARTIES
EUR million
1 - 3 1 - 3 1 - 2
2013 2012 2012
Associated companies
Sales income 0.0 0.0 0.2
Trade receivables 0.3 0.1 0.3
Interest income 0.0 0.0 0.0
Loan receivables 0.3 0.3 0.3
Interest receivables 0.0 0.0 0.0
Loan of EUR 300 thousand has been granted to an associate company Greenpoint Oy
on 2010, of
which EUR 210 thousand has been changed in to a capital loan on 1 January 2012
according to
Companies Act chapter 12.
Additionally a short-term loan of EUR 33,5 thousand has been granted to an
associated company.
Remaining goodwill of the associated company, which was EUR 632 thousand on 31
December 2012,
has been decided to depreciate with accelerated schedule by the end of
2013.
Scanfil EMS Oy has rented an office space from Kiinteistö Oy Pilot 1, which head
owners are
Jorma Takanen, Harri Takanen, Jarkko Takanen and Reijo Pöllä.
Rental costs were EUR 3 thousand by 31 March 2013.
KEY INDICATORS QUATERLY
Q1/13 Q4/12 Q3/12 Q2/12 Q1/12
Turnover, MEUR 44.0 40.8 48.2 49.3 42.6
Operating profit, MEUR 2.0 0.7 2.8 3.2 1.4
Operating profit, % 4.6 1.8 5.7 6.4 3.4
Net income, MEUR 2.6 0.3 1.7 2.6 1.2
SCANFIL PLC
Petteri Jokitalo
CEO
Additional information:
CEO Petteri Jokitalo
Tel +358 8 4882 111
Distribution NASDAQ OMX, Helsinki
Major Media
www.scanfil.com
Scanfil Group is engaged in contract manufacturing for international
telecommunications technology and professional electronics manufacturers.
Scanfil has over 35 years of experience in demanding contract manufacturing.
Scanfil is a systems supplier that offers its products and services to
international telecommunications systems manufacturers and professional
electronics customers. Typical products are equipment systems for mobile and
public switched telephone networks, automation systems, frequency converters,
lift control systems, equipment and systems for electricity production and
transmission, analysers, slot machines and different meteorological
instruments. The company has production facilities in China, Estonia, Hungary
and Finland.
The associated company of Scanfil Group:
Greenpoint Oy (Scanfil EMS Oy's share of ownership 40%) focuses on development
and supply of solutions and equipment, which improve placements, visibility and
sales of customer products in the Point-Of-Sale. The Greenpoint product
portfolio includes a large variety of refrigerated merchandisers, displays and
integrated check-out zone concepts. The company serves both brand owners and
retail chains internationally. Along with the European markets Greenpoint Oy
has entered North and Latin American markets through partnerships.
www.greenpoint.fi
Not for release over US newswire services. Forward looking statements: certain
statements in this stock exchange release may constitute "forward-looking"
statements which involve known and unknown risks, uncertainties and other
factors which may cause actual results, performance or achievements of Scanfil
Oyj to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. When used
in this stock exchange release, such statements use such words as "may,""will,""expect,""anticipate,""project,""believe,""plan" and other similar
terminology. New risk factors may arise from time to time and it is not
possible for management to predict all of those risk factors or the extent to
which any factor or combination of factors may cause actual results,
performance and achievements of Scanfil Oyj to be materially different from
those contained in forward-looking statements. Given these risks and
uncertainties, investors should not place undue reliance on forward-looking
statements as a prediction of actual results. The forward-looking information
contained in this stock exchange release is current only as of the date of this
stock exchange release. There should not be an expectation that such
information will in all circumstances be updated, supplemented or revised,
except as provided by the law or obligatory regulations, whether as a result of
new information, changing circumstances, future events or otherwise.
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