2012-08-07 07:15:00 CEST
2012-08-07 07:15:03 CEST
REGULATED INFORMATION
Scanfil Oyj - Interim report (Q1 and Q3)
SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 30 JUNE 2012
SCANFIL PLC INTERIM REPORT 7 AUGUST 2012 8.15 A.M.
SCANFIL GROUP'S INTERIM REPORT 1 JANUARY - 30 JUNE 2012
January - June
- Turnover totalled to EUR 91.9 million
- Operating profit EUR 4.6 million, 5.0% of turnover
- Operating profit excluding non-recurring items EUR 4.1 million,
representing 4.5% of turnover
- Profit for the review period was EUR 3.7 million
- Earnings per share were EUR 0.06
April - June
- Turnover totalled EUR 49.3 million
- Operating profit EUR 3.2 million, 6.4% of turnover
- Profit was EUR 2.6 million
- Earnings per share amounted EUR 0.04
The new Scanfil plc was established in the demerger of Sievi Capital plc on 1
January 2012. In the demerger, Scanfil EMS Oy, engaged in contract
manufacturing, transferred to Scanfil plc. Since year 2012 is the first
operating year of the new company, Scanfil plc does not have comparison figures
for previous financial periods. The company has published the figures for the
Scanfil EMS Oy Group for 2011 as comparison data.
Scanfil plc raises its estimate of the development of its operating profit and
now expects the operating profit to fall slightly short of the level for 2011.
With regard to turnover, Scanfil still estimates that its full-year turnover
will decrease clearly compared to 2011 (Scanfil EMS Oy's turnover for 2011 was
EUR 210.8 million and operating profit EUR 9.1 million).
Scanfil previously estimated that its full-year turnover and operating profit
would clearly decrease compared to 2011. The full-year operating profit was,
however, expected to be clearly positive.
Harri Takanen, CEO of Scanfil plc:
”As the result of the cost management measures carried out early in the year,
we adjusted to the decrease in sales, and our operating profit level was
considerably better during the second quarter than the first quarter. In spite
of the decreased turnover, Scanfil's financial position is good. The commitment
of our personnel to developing the company's operations has been a crucial
factor in order to reach these results.
Our sales to professional electronics customers have continuously developed
positively in spite of weak general economic growth. Confidence of both old and
new customers in a solvent partner has played a key role in the positive
development. In the telecommunications products market, the development of
sales has gone in a different direction, and no major changes compared to the
current level of sales can be seen in the near future.”
DEVELOPMENT OF OPERATIONS
The demand for both telecommunications and professional electronics products
developed positively during the second quarter. The company's turnover for the
second quarter was EUR 49.3 million, a growth of nearly 16% compared to the
first quarter. The demand for professional electronics products continued to be
good, increasing by approximately 10% compared to the first quarter. The growth
in the demand for telecommunications products was good during the second
quarter, +32% compared to the first quarter, but the demand continues to be
low.
Turnover for the first two quarters totalled EUR 91.9 million, of which
professional electronics customers accounted for 72% (76% in the first quarter)
and telecommunications customers for 28% (24% in the first quarter).
The company's profitability developed favourably, and operating profit for the
second quarter was 6.4% of turnover (2.3% excluding non-recurring items in the
first quarter). The favourable development of the profitability is mainly the
result of increasing turnover and the company's efficiency in monitoring and
cutting its costs to a level corresponding with the uncertain market situation.
Scanfil plc's subsidiary Scanfil EMS Oy purchased in May production and office
facilities with a total floor area of 26,000 square metres and a 19.3 hectare
plot in Sievi from Sievi Capital plc. Scanfil EMS Oy was previously a tenant in
the facilities. The purchase price was EUR 4.2 million, and Scanfil EMS Oy paid
it using its liquid assets.
FINANCIAL DEVELOPMENT
The Group's turnover for January - June was EUR 91.9 million. Distribution of
turnover based on the location of customers was as follows: Finland 45%, rest
of Europe 17%, Asia 37%, USA 1%.
Operating profit for the Group during the review period was EUR 4.6 million,
representing 5.0% of turnover. The operating profit includes the following
non-recurring items recognised in the first quarter: 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, consisting mainly of
expenses related to the termination of personnel. Operating profit excluding
non-recurring items was EUR 4.1 million, representing 4.5% of turnover.
Earnings for the review period amounted to EUR 3.7 million. Earnings per share
were EUR 0.06 and return on investment was 9.5%.
Turnover amounted to EUR 49.3 million in April-June and operating profit for
the second quarter was EUR 3.2 million, or 6.4% of turnover. Profit for the
quarter was EUR 2.6 million.
FINANCING AND CAPITAL EXPENDITURE
The Group enjoys a strong financial position.
The consolidated balance sheet totalled EUR 138.9 million. Liabilities amounted
to EUR 64.6 million, EUR 32.2 million of which were non-interest-bearing and
EUR 32.4 million interest-bearing. The equity ratio was 53.5% and gearing 0.2%.
The equity per share was EUR 1.29.
Liquid cash assets totalled EUR 32.3 million.
Cash flow from operating activities in the review period of January - June came
to EUR 5.9 million. The change in working capital during the period amounted to
EUR -1.4 million. Cash flow from investment activities was EUR -5.0 and cash
flow from financing activities was EUR -4.4 million. The cash flow from
investment activities is mainly comprised of the purchase of the Sievi property
and the cash flow from financing activities consists of bank loan repayments.
Gross investments in January - June in fixed assets totalled EUR 5.1 million,
which is 5.6% of turnover. The purchase of the Sievi property makes up the
majority of the investments, EUR 4.2 million. Depreciations were EUR 2.2
million.
SCANFIL EMS OY'S COMPARISON FIGURES FOR 2011
The new company Scanfil plc was formed in the partial demerger of Sievi Capital
plc executed on 1 January 2012, in which the contract manufacturing business
(Scanfil EMS Oy group) was demerged into a new publicly listed company. Scanfil
plc's business operations consist of contract manufacturing operations, and
since Scanfil plc has no comparison figures for 2011, the company published
Scanfil EMS Oy Group's figures for 2011 as comparison data on 2 May 2012.
Scanfil EMS Oy Group's indicators for the year 2011 are presented below:
4 - 6 1 - 6 1 - 12
2011 2011 2011
Turnover, MEUR 62.0 120.8 210.8
Operating profit, MEUR 4.2 7.7 9.1
Operating profit, % 6.7 6.4 4.3
Net income, MEUR 3.0 5.6 6.3
Return on equity, % 18.5 9.7
Return on investment, % 15.5 9.5
Interest-bearing liabilities, EUR million 40.0 36.5
Gearing, % 31.9 1.9
Equity ratio, % 43.3 53.6
Personnel, average 2 102 2 024
BOARD OF DIRECTORS' AUTHORISATION
The Extraordinary General Meeting authorised the Board of Directors on 19 April
2012 to decide on the acquisition of the Company's own shares with
distributable assets and on the disposal of own shares in accordance with the
Board of Directors' proposal.
The Board of Directors' proposals to the Extraordinary General Meeting are
available on the company website at www.scanfil.com.
The Board of Directors has no existing share issue authorisations or
authorisations to issue convertible bonds with warrants.
SHARE TRADING AND SHARE PERFORMANCE
The highest trading price during the review period was EUR 1.10 and the lowest
EUR 0.60, the closing price for the period standing at EUR 0.68. A total of
8,435,594 shares were traded during the period, corresponding to 14.6% of the
total number of shares. The market value of the shares on 30 June 2012 was EUR
39,3 million.
NOTIFICATIONS OF CHANGES IN SHAREHOLDING
Scanfil plc was informed on 18 April 2012 in accordance with Chapter 2, section
9 of the Securities Market Act that the Scanfil plc shares transferred to heirs
and beneficiaries as the result of the distribution of matrimonial assets and
estate of Eero Alvari Kotilainen's estate on 9 April 2012, had been transferred
to Varikot Oy (new company) through transactions implemented on 17 April 2012.
Following the arrangement, Varikot Oy holds 7,273,109 Scanfil plc shares, or
12.60% of all shares, and it is the second-largest individual shareholder in
Scanfil plc. Based on an agreement between the shareholders, the voting right
in Varikot Oy is used together by Riitta-Liisa Kotilainen (50%) and Sirpa
Kotilainen (50%).
In a notification received by Scanfil plc after the end of the review period on
18 July 2012 pursuant to Chapter 2, section 9 of the Securities Market Act,
Varikot Oy announced that a change had taken place in Varikot Oy's voting
rights, effective 18 July 2012. Based on an agreement between the shareholders,
the voting right in Varikot Oy is used together by Sirpa Kotilainen (50%),
Riitta-Liisa Kotilainen (25%) and Aleksi Kotilainen (25%).
PERSONNEL
Scanfil Group's personnel averaged 1,701 employees during the review period. At
the end of the period, the Group employed 1,625 people, of whom 285 worked in
the company's Finnish units and 1,340 in the company's units outside Finland.
In all, 82% of the Group's personnel were employed by subsidiaries outside
Finland on 30 June 2012.
FUTURE PROSPECTS
Due to the continued uncertain situation in the global and European economy,
the predictability of the contract manufacturing market is very poor, and it is
not possible to provide a reliable outlook for the year. Based on the current
outlook, the demand for telecommunications products is expected to fall clearly
short of the previous year. The demand for professional electronics customers
is expected to be on a par with 2011.
Scanfil plc raises its estimate of the development of its operating profit and
now expects the operating profit to fall slightly short of the level of
2011.With regard to turnover, Scanfil still estimates that its full-year
turnover will decrease clearly compared to 2011 (Scanfil EMS Oy's turnover for
2011 was EUR 210.8 million and operating profit EUR 9.1 million).
Scanfil previously estimated that its full-year turnover and operating profit
would clearly decrease compared to 2011.Full-year operating profit was,
however, expected to be clearly positive.
OPERATIONAL RISKS AND UNCERTAINTIES
The uncertainty of the global economy and threatening new recession and the
decrease in international demand for investment commodities, especially in the
eurozone, may have a negative impact on the development of the business of
Scanfil's customers and impair the demand in the contract manufacturing
market.This may slow down the development of Scanfil's sales and profitability.
In other respects, the risks facing Scanfil's business have remained
essentially the same. The company's risksand risk management are described in
greater detail on the company's website under Corporate Governance.
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 2011.
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
4 - 6 1 - 6
2012 2012
Turnover 49.3 91.9
Other operating income 0.1 1.3
Changes in inventories of finished goods
and work in progress 0.7 0.7
Manufacturing for own use 0.0 0.0
Expenses -45.7 -87.1
Depreciation -1.1 -2.2
Operating profit 3.2 4.6
Financial income and expenses 0.2 0.2
Share in the associated company´s profit -0.1 -0.2
Profit before taxes 3.2 4.6
Income taxes -0.6 -0.9
Net profit for the period 2.6 3.7
Attributable to:
Equity holders of the parent 2.6 3.7
Earnings per share for profit attributable to
shareholders of the parent:
basic earnings per share ( EUR) 0.04 0.06
The company does not have items that might dilute the earnings per share.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million
4 - 6 1 - 6
2012 2012
Net profit for the period 2.6 3.7
Other comprehensive income:
Translation differences 2.6 1.1
Derivative financial instrument -0.2 0.1
Other comprehensive income, net of tax 2.5 1.2
Total Comprehensive Income 5.0 4.9
Attributable to:
Equity holders of the parent 5.0 4.9
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
EUR million
Assets 30.6.2012
Non-current assets
Property, plant and equipment 30.8
Goodwill 2.2
Other intangible assets 3.8
Shares in associated companies 0.9
Available-for-sale investments 0.0
Receivables 0.2
Deferred tax assets 0.5
Total non-current assets 38.4
Current assets
Inventories 30.6
Trade and other receivables 37.3
Advance payments 0.1
Current tax 0.1
Available-for-sale investments, cash equivalents 19.7
Cash and cash equivalents 12.6
Total current assets 100.5
Total assets 138.9
Shareholder's equity and liabilities 30.6.2012
Equity
Share capital 2.0
Translation differences 10.3
Other reserves 5.2
Reserve for invested unrestricted equity fund 10.7
Retained earnings 46.0
Total equity 74.3
Non-current liabilities
Deferred tax liabilities 0.0
Provisions 0.7
Interest bearing liabilities 23.2
Other liabilities 0.1
Total non-current liabilities 23.9
Current liabilities
Trade and other liabilities 30.5
Current tax 0.8
Interest bearing liabilities 9.3
Total current liabilities 40.6
Total liabilities 64.6
Total shareholder's equity and liabilities 138.9
CONSOLIDATED CASH FLOW STATEMENT
EUR million
1.1-30.6.2012
Cash flow from operating activities
Net profit 3.7
Adjustments for the net profit 3.8
Change in net working capital -1.4
Paid interests and other financial expenses -0.4
Interest received 0.2
Taxes paid -0.0
Net cash from operating activities 5.9
Cash flow from investing activities
Investments in tangible and intangible assets -5.0
Sale of tangible and intangible assets 0.0
Purchase of investments -0.0
Net cash from investing activities -5.0
Cash flow from financing activities -4.4
Net cash from financing activities -4.4
Net increase/decrease in cash and cash equivalents -3.6
Cash and cash equivalents at beginning of period 35.2
Cash transferred at the demerger 0.1
Changes in exchange rates 0.6
Cash and cash equivalents at end of period 32.3
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
capital differences reserves equity fund earnings total
Equity
--------------------------------------------------------------------------------
1.1.2012 2.0 9.2 4.9 10.7 42.6 69.4
----------------- -----------------
----------------- -----------------
Transfer to 0.3 -0.3 0
funds
----------------- -----------------
----------------- -----------------Total comprehensive 1.1 0.1 3.7 4.9
income
-------------------------- -----------------
----------------- -----------------
----------------- -----------------
Equity
--------------------------------------------------------------------------------
30.6.2012 2.0 10.3 5.2 10.7 46.0 74.3
KEY INDICATORS
1 - 6
2012
Return on equity, % 10.4
Return on investment, % 9.5
Interest-bearing liabilities, EUR million 32.4
Gearing, % 0.2
Equity ratio, % 53.5
Gross investments in fixed assets, EUR million 5.1
% of net turnover 5.6
Personnel, average 1 701
Earnings per share, EUR 0.06
Shareholders´ equity per share, EUR 1.3
Number of shares at
the end of period, 000´s
- not counting own shares 57 730
- weighted average 57 730
The company has a EUR 32.4 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 - 6
2012
Turnover
Europe 57.1
Asia 36.4
Turnover between segments -1.6
Total 91.9
Operating profit
Europe 3.5
Asia 1.2
Total 4.6
Assets
Europe 66.1
Asia 69.7
Goodwill 2.2
Shares in associated companies 0.9
Total 138.9
CHANGES IN TANGIBLE NON-CURRENT ASSETS
EUR million
1 - 6
2012
Book value at the beginning of the period 27.0
Additions 5.1
Deductions 0.0
Depreciations -2.1
Exchange rate differences 0.7
Book value at the end of the period 30.8
CONTINGENT LIABILITIES
EUR million
30.6.2012
Given property mortgages 0.9
Given business mortgages 40.0
Pledged guarantees 1.0
Rental liabilities 0.0
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.
TRANSACTIONS WITH RELATED PARTIES
EUR million
1 - 6
2012
Associated companies
Sales income 0.1
Trade receivables 0.2
Interest income 0.0
Loan receivables 0.3
Interest receivables 0.0
Loan of EUR 300,000 has been granted to an associate company Greenpoint Oy, of
which
EUR 210,000 has been changed in to a capital loan on 1 January 2012 according
to
Companies Act chapter 12.
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 1,055 by 30 June 2012.
KEY INDICATORS QUATERLY
Q2/12 Q1/12
Turnover, MEUR 49,3 42,6
Operating profit, MEUR 3,2 1,4
Operating profit, % 6,4 3,4
Net income, MEUR 2,6 1,2
SCANFIL PLC
Harri Takanen
CEO
Additional information:
CEO Harri Takanen
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 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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