2013-08-23 10:00:01 CEST
2013-08-23 10:00:04 CEST
BIRTINGARSKYLDAR UPPLÝSNINGAR
Vaahto Group Plc Oyj - Interim report (Q1 and Q3)
Vaahto Group Interim Report for 1 January - 30 June 2013
Helsinki, Finland, 2013-08-23 10:00 CEST (GLOBE NEWSWIRE) -- VAAHTO GROUP PLC
OYJ INTERIM REPORT 23.8.2013 at 11:00
VAAHTO GROUP INTERIM REPORT for 1 January - 30 June 2013
Vaahto Group's turnover from continuing operations during the period 1 January
to 30 June 2013 was 20.6 M euros (comparative 16.1 M euros) and operating loss
0.2 M euros (2.3 M euros). Turnover was 28 % higher than in the reference
period, and the operating result was significantly better. The order book of
the continuing operations remained at a good level, totaled 18.6 M euros (9.2 M
euros).
The Vaahto Group Plc Oyj Extraordinary Meeting of Shareholders of 19 June 2012
approved an amendment to the statutes, based on which the company's normal
financial year was changed to 1 January - 31 December from the beginning of the
year 2013. The reference data presented in this report has been changed to
correspond the actual period.
In accordance with the preliminary contract signed on 16 January 2013, the sale
of Vaahto Paper Technology's project-business unit and the spare-parts and
small-project operations belonging to the company's service unit to the German
firm Gebr. Bellmer GmbH Maschinenfabrik was completed on 15 April 2013. The
assets and liabilities related to the sale are included on the balance sheet as
non-current assets held for sale and related liabilities. In the profit and
loss statement, the project business is presented in one line as a discontinued
operation. The profit and loss statement's reference data have been adjusted
correspondingly.
Vaahto Paper Technology
Vaahto Paper Technology division's turnover from continuing operations was 5.0
M euros (6.1 M euros) and the operating loss of 1.5 M euros (operating loss 1.9
M euros). Turnover fell 18 % from the reference period while the operating
result improved slightly but still remained negative. The main reason for the
operating loss is the division's weak order intake.
The sale of Vaahto Paper Technology's project-business unit and the spare-parts
and small-project operations belonging to the company's service unit to Gebr.
Bellmer GmbH Maschinenfabrik was completed on 15 April 2013. All projects that
were in progress on 15 April 2013 were transferred to Bellmer in connection
with the sale. Completed projects that are within their warranty period remain
with Vaahto Paper Technology Ltd. The liabilities and debts related to the
completion of these projects are presented in the profit and loss statement as
discontinuing operations and in the balance sheet as assets and debts. The
operating loss of the discontinuing operations was 1.4 M euros (1.1 M euros);
this includes the sale of the project-business and the costs of the
discontinuing operations. The sale price is not final, as it contains items to
be realized in the future.
Vaahto Process Technology
Vaahto Process Technology division's turnover for the period under review was
15.7 M euros (10.1 M euros) and operating profit 1.3 M euros (operating loss
0.5 M euros). Turnover increased by 55 % from the reference period's level. The
operating result improved and was 8.2 % of the turnover. The main reasons for
the positive development were constant order income and the expected
realization of the delivered projects.
The market situation of Vaahto Process Technology division has been remained
stable and the demand has continued to be moderate.
Research and development
Vaahto Group's research and development activities have focused on expanding
the product range of the Vaahto Paper Technology division. The scope of
research and development activities remains at the level seen in the previous
financial year.
Investments
Vaahto Group's capital expenditure during the period under review was 0.2 M
euros (0.6 M euros). 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 business operations was -0.7 M euros during the period,
and the cash flow of investments was 1.0 M euros. Interest-bearing liabilities
amounted to 16.5 M euros at the end of the period under review. The
consolidated balance-sheet total was 24.0 M euros, and the equity ratio -20.9
%. The 30 June 3013 interim report indicated violation of repayment covenants
related to Vaahto Group's equity ratio that were involved in its
credit-institution loans. Vaahto Group has received a commitment from the
relevant credit institution that the breach of the covenants will not result in
any penalties. Measures have been taken in Vaahto Group to improve its
financial position and equity ratio.
Human resources
The average number of personnel during the period under review was 275.
In connection with the sale of Vaahto Paper Technology's Project -business on
15 April 2013, 72 employees belonging to the Project-business, were transferred
to Bellmer.
Authorization for a share issue
The General Meeting of 10 April 2013 authorized the Board of Directors to
decide on the issuing of new shares in one or several lots. The maximum number
of new shares that may be issued is 2,000,000. The proposed authorization
corresponded to 50 % of all shares in the company.
This authorization entitled the Board to decide on all terms of the share
issue, including the right to deviate from the shareholders' subscription
privilege.
Disputes
Vaahto Paper Technology Ltd is currently engaged in a dispute over patent
rights with another equipment-supplier. The District Court decided in favor of
Vaahto Paper Technology Ltd, but the Court of Appeal overturned the District
Court ruling in June 2013. Vaahto Paper Technology Ltd will apply for leave to
appeal to the Supreme Court. Apart from the legal expenses, the dispute is not
expected to cause any additional costs to Vaahto Paper Technology Ltd, thus no
reservations related to this dispute have been made in the Vaahto Group's
interim report.
Vaahto Paper Technology Ltd is currently party to a dispute over an equipment
delivery with a customer. Per the agreement between the two parties, the matter
has been initiated by an arbitration court in Singapore. Apart from the legal
expenses, the dispute is not expected to cause any additional costs to Vaahto
Paper Technology Ltd, thus no reservations have been made for such costs in the
Vaahto Group's interim report.
Risks
Vaahto Group's financing situation remains tight and involves significant
risks. Positive development requires that the plans made by the management will
actualize and that the plans for the rearrangement of short-term payments and
for obtaining additional funding be successful. The Board of Directors is
currently in negotiations with the credit institutions to improve liquidity and
equity ratio.
International Financial Reporting Standards
The interim report has been prepared in accordance with the International
Financial Reporting Standards (IFRS) and IAS 34, Interim Financial Reporting.
Forecast for the 1 January - 31 December 2013 financial year
The development of the international economy shows no signs of improvement, and
the market situation of Vaahto Group's main customer industries remains
difficult. However, Vaahto Group's result is expected to increase substantially
from that of the previous financial period and to be positive for continuing
operations.
CONSOLIDATED STATEMENT OF COMPREHENSIVE Interim Interim Annual
INCOME, IFRS Report Report Report
1000 EUR 1.1. - 1.1. - 1.9.2011-
30.6.2013 30.6.2012 31.12.201
6 months 6 months 2
16 months
Net sales 20 630 16 075 40 908
Change in finished goods -1 196 -288 1 385
and work in progress
Production for own use 82 268 788
Other operating income 66 3 96
Share of profits of affiliated companies 0 14 25
Material and services -9 278 -6 888 -19 459
Employee benefit expenses -6 352 -7 124 -17 194
Depreciations -635 -797 -2 188
Impairment losses of goodwill 0 0 -28
Other operating expenses -3 499 -3 597 -9 229
Operating profit or loss -183 -2 335 -4 895
Financing income 80 7 62
Financing expenses -523 -476 -1270
Profit or loss before taxes -625 -2 804 -6 103
Tax on income from operations -69 -266 -2 226
Profit or loss for the period -694 -3 070 -8 329
Discontinuing operations
Profit or loss for the fiscal year from the -1 413 -1 104 -1 597
discontinuing operations
Profit or loss -2 107 -4 174 -9 926
Other comprehensive Income:
Translation differences -4 8 38
Other comprehensive income, net of tax -4 8 38
Total comprehensive income -2 112 -4 166 -9 888
Earnings per share calculated
on profit attributable to
equity holders of the parent:
EPS undiluted, euros/share, continuing -0,17 -0,89 -2,40
operations
EPS diluted, euros/share, continuing -0,17 -0,89 -2,40
operations
EPS undiluted, euros/share, discontinuing -0,36 -0,322 -0,46
operations
EPS diluted, euros/share, discontinuing -0,36 -0,32 -0,46
operations
EPS undiluted, euros/share -0,53 -1,21 -2,86
EPS diluted, euros/share, continuing -0,53 -1,21 -2,86
operations
Average number of shares 3 977 360 3 444 667 3 463 206
CONSOLIDATED Interim Annual
BALANCE SHEET, IFRS Report Report
1000 EUR 30.6.2013 31.12.201
2
Assets
Intangible assets 82 233
Goodwill 1 692 1 692
Tangible assets 7 277 7 596
Shares in affiliated companies 79 83
Available in sale investments 43 43
Non-current trade receivables and other 3 3
receivables
Deferred tax asset 270 271
Non-current assets 9 445 9 921
Inventories 4 758 5 783
Trade receivables 6 047 6 776
and other receivables
Cash and bank 1) 890 1 449
Current assets 11 695 14 007
Non current assets held for sale 2 878 6 557
Total assets 24 018 30 484
Equity and liabilities
Share capital 2 872 2 872
Share premium account 6 6
Fair value reserve and other reserves 5 063 5 063
Translation differences 56 56
Retained earnings -12 271 -10 160
Shareholders' equity -4 275 -2 163
Deferred tax liability 641 699
Long-term liabilities, interest-bearing 3 060 3 608
Non-current provisions 445 395
Non-current liabilities 4 146 4 701
Short-term liabilities, interest-bearing 13 471 14 045
Trade payables and other liabilities 9 327 10 662
Tax liability 0 264
Current liabilities 22 798 24 971
Interest-bearing liabilities held for sale 0 573
Interest-free liabilities held for sale 1 348 2 402
Total equity and liabilities 24 018 30 484
1) Cash and bank includes deposit for loan guarantee 0.8 thousand euros.
KEY FIGURES, IFRS Interim Interim Annual
Report Report Report
1.1. - 1.1. - 1.9.2011-
30.6.2013 30.6.2012 31.12.201
6 months 6 months 2
16 months
Operating profit or loss, continuing -183 -2335 -4 895
operations 1000 EUR
% of turnover -0,9 -14,5 -12,0
Profit or loss before taxes, continuing -625 -2 804 -6103,0
operations 100 EUR
% of turnover -3,0 -17,4 -14,9
Profit or loss, discontinuing operations -1 413 -1 104 -1 597
1000 EUR
Earnings per share calculated on profit -2 107 -4 174 -9 926
attributable to equity holders of the
parent
% of turnover -10,2 -26,0 -24,3
Return on equity (ROE), % 1) -131,0 -276,4 -413,0
Return on investment (ROI), % 1) -22,6 -37,6 -26,0
Earnings per share EUR 2) -0,53 -1,21 -2,15
Shareholders' equity per share EUR -1,07 0,47 -0,50
Equity ratio, % 3) -20,9 6,5 -7,9
Gearing 3) -365,9 827,4 -749,1
Gross investments in fixed assets 1000 EUR 166 558 1 289
Order backlog, continuing operations 1000 18608 9156 20 547
EUR
Total average number of personnel 275 335 333
1) Return on equity % and return on investment % have been calculated by
converting the profit or loss for the reporting period to corresond the profit
or loss for 12 months. Figures include also profit or loss from discontinuing
operations. The reference period has been converted accordingly.
2) Earnings per share includes also the profit or loss from discontinuing
operatins. Earnings per share from the period 1.9.2011 - 31.12.2012 has been
calculated by converting the profit or loss for the period to correspond the
profit or loss for 12 months.
3) The Equity ratio and Gearing from the period 1.1.-30.6.2013 includes also
items from discontinuing operations. The gearing is negative because of the
negative equity.
CONSOLIDATED FLOW OF Interim Interim Annual
FUNDS STATEMENT, IFRS Report Report Report
1000 EUR 1.1. - 1.1. - 1.9.2011-
30.6.2013 30.6.2012 31.12.201
2
Profit or loss before taxes -2 134 -3 851 -9 926
Adjustments 340 1 500 6 344
Change in working capital 1 372 -632 1 636
Financial income and expenses and taxes -294 -585 -1 388
Flow of funds from operations -716 -3 568 -3 333
Investments in tangible and -166 -558 -1 289
intangible assets
Increase caused by the change in Group 0 -18 -18
structure
Income from sales of tangible 1 188 0 319
and intangible assets
Repayments of loans 0 0 8
Flow of funds from investments 1 022 -576 -980
Share issue 0 1 728 1 861
Increase of the interest-bearing 27 -3 968 5 946
liabilities
Decrease of the interest-bearing -891 -1 054 -2 821
liabilities
Flow of funds from financial items -865 4 642 4 987
Change of liquid funds -558 499 674
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY,
IFRS 1000 EUR
Changes Share Share Unrest Reserv Transl Re- Total Non-co Total
in capita premiu ricted e fund ation tained ntroll
shareho l m equity differ earn- ing
lders' accoun reserv ences ings intere
equity t e sts
1.1. -
30.6.20
13
Sharehol 2 872 6 3 068 1 995 56 -10 160 -2163 0 -2 163
ders'
equity
in the
beginni
ng of
the
period
Total 0 0 0 0 -1 -2 111 -2112 0 -2 112
compreh
ensive
income
Sharehol 2 872 6 3 068 1 995 56 -12 271 -4275 0 -4 275
ders'
equity
at the
end of
the
period
Changes Share Share Unrest Reserv Transl Re- Total Non-co Total
in capita premiu ricted e fund ation tained ntroll
shareho l m equity differ earn- ing
lders' accoun reserv ences ings intere
equity t e sts
1.1. -
30.6.20
12
Sharehol 2 872 6 0 1 995 36 -1 848 3 060 0 3 060
ders'
equity
in the
beginni
ng of
the
period
Total 0 0 0 0 0 -4 148 -4148 0 -4 148
compreh
ensive
income
Share 0 0 2100 0 0 0 2 100 0
issue
Transact 0 0 -372 0 0 0 -372 0 -372
ion
costs
for
equity
Aqusitio 0 0 1 112 0 0 0 1 112 0 1 112
n of
subsidi
ary
Deferred 0 0 91 0 0 0 91 0 91
taxes
due to
period
changes
Transact 0 0 2 931 0 0 0 2 931 0 2 931
ion with
owners
Sharehol 2872 6 2931 1995 36 -5996 1843 0 1843
der's
equity
at the
end of
the
period
Changes Share Share Unrest Reserv Transl Re- Total Non-co Total
in capita premiu ricted e fund ation tained ntroll
shareho l m equity differ earn- ing
lders' accoun reserv ences ings intere
equity t e sts
1.9.2011
-
30.6.20
12
Sharehol 2 872 6 0 1 995 29 -351 4 552 1 217 5 768
ders'
equity
in the
beginni
ng of
the
period
Total 0 0 0 0 27 -9 915 -9888 0 -9 888
compreh
ensive
income
Share 0 0 2 250 0 0 0 2 250 0 2 250
issue
Transact 0 0 -389 0 0 0 -389 0 -389
ion
costs
for
equity
Aqusitio 0 0 1 112 0 0 105 1 217 0 1 217
n of
subsidi
ary
Disposal 0 0 0 0 0 0 0 -1 217 -1 217
of
subsidi
ary
Deferred 0 0 95 0 0 0 95 0 95
taxes
due to
period
changes
Transact 0 0 3 068 0 0 105 3 174 -1 217 1 956
ion with
owners
Sharehol 2 872 6 3 068 1 995 56 -10 160 -2163 0 -2 163
der's
equity
at the
end of
the
period
SEGMENT INFORMATION, IFRS
BY OPERATING SEGMENTS Interim Interim Annual
Report Report Report
1.1. - 1.1. - 1.9.2011-
30.6.2013 30.6.2012 31.12.201
6 months 6 months 2
16 months
Net sales
Vaahto Paper Technology 5 015 6 081 16 939
Vaahto Process Technology 15 681 10 051 24 079
Net sales between the segments -67 -57 -110
Group total 20 630 16 075 40 908
Shares of profits of affiliated companies
Vaahto Paper Technology 0 14 25
Vaahto Process Technology 0 0 0
Group total 0 14 25
Operating profit or loss
Vaahto Paper Technology -1 469 -1 865 -4 320
Vaahto Process Technology 1 286 -483 -690
Operating profit or loss between the 0 14 0
segments
Group total -183 -2 335 -4 920
Profit or loss of the segment
Vaahto Paper Technology -1 469 -1 851 -4 205
Vaahto Process Technology 1 286 -483 -690
Group total -183 -2 335 -4 895
Financing income and expenses -443 -470 -1 208
Taxes -69 -266 -2 226
Profit or loss from continuing operations -694 -3 070 -8 329
Profit or loss from discontinuing -1 413 -1 140 -1 597
operations
Profit or loss for the fiscal period -2 107 -4 174 -9 926
NET SALES BY MARKET AREAS Interim Annual
OPERATING SEGMENTS, IFRS Report Report
1000 EUR 1.1. - 1.9.2011-
30.6.2013 31.12.201
6 months 2
16 months
Finland 6 141 17 879
Other Europe 6 181 18 618
Asia 50 3 146
Africa 1 265 147
Notrh America 6 944 225
Other Europe 48 893
Group total 20 630 40 908
AVERAGE NUMBER OF PERSONNEL BY OPERATING Interim Interim Annual
SEGMENTS Report Report Report
1.1. - 1.1. - 1.9.2011-
30.6.2013 30.6.2012 31.12.201
6 months 6 months 2
16 months
Vaahto Paper Technology, continuing 148 123 142
operations
Vaahto Process Technology, continuing 128 121 122
operations
Discontinuing operations 91 69
Group total 276 335 333
DISCONTINUING OPERATIONS
1000 EUR Interim Interim Annual
Report Report Report
1.1. - 1.1. - 1.9.201
30.6.2013 30.6.2012 1-
6 months 6 months 31.12.2
012
16
months
Profit or loss of the Project business unit
Income 2 931 8 991 19 786
Expenses -4 440 -10 037 -21 342
Profit of loss before taxes -1 509 -1 046 -1 556
Taxes 95 -58 -41
Profit or loss after taxes -1 414 -1 104 -1 597
Profit of loss from the discontinuing -1 414 -1 104 -1 597
operations
Flow of funds from the Project business unit
Flow of funds from operations -615 -1 203
Flow of funds from investments 1 188 -169
Flow of funds from financial items -52 -265
Flow of funds total 521 -1 637
Non-current assets fo discontinuing operations
Intangible assets 0 93
Tangible assets 0 2 549
Inventories 708 1 548
Receivables 2 170 2 367
Assets total 2 878 6 557
Non-current assets of discontinuing operations include total 590 thousand euros
receivables of Vaahto Paper Technology Ltd related to the additional project
work that the customer has challenged. The case is ongoing arbitration. The
receivables contain uncertainty.
Liabilities of Project business held for
sale/discontinuing operations
Finance lease liabilities 574
Current liabilities of discontinuing operations 1 348 2 401
Liabilities total 1 348 2 975
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 statement, for the fiscal period
that ended on December 31, 2012.
Dividens paid
During the period under review, Vaahto Group Plc Oyj paid no dividends.
Lahti, 23 August 2013
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
CEO
tel. +358 400 127664
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