INTERIM REPORT 1 JANUARY – 30 JUNE 2004
Stock exchange release – Published: 11.08.2004 8:00:41
INTERIM REPORT 1 JANUARY - 30 JUNE 2004
ETTEPLANS TURNOVER UP BY 24 % AND OPERATING PROFIT BY 35 %
- Consolidated turnover: EUR 29.4 million (23.8 million)
- Operating profit: EUR 2.1 million (1.5 million)
- Earnings per share: EUR 0.22 (0.17)
- Personnel: 934 employees (824)
(Figures in brackets are those for the same period in 2003 unless
otherwise stated.)
The Etteplan Groups turnover increased during January - June in
consequence of both expanded business operations as well as improved
market situation. Operating profit percent of turnover improved
compared to both previous quarter and the fiscal year 2003 as a
result of both higher workload and improved efficiency of internal
functions. Profitability has improved further in all major market
areas, but especially in the international operations.
Turnover and result
Etteplans turnover grew to EUR 29.4 million (23.8 million).
Operating profit was EUR 2.1 million (1.5 million), or 7.0 % of
turnover (6.4 %). Relative profitability has improved especially
at the end of the second quarter. Profit for the financial period
before extraordinary items and taxes was EUR 2.1 million
(1.5 million).
Net profit was EUR 0.9 million (0.7 million). Earnings per share
were EUR 0.22 (0.17). Equity per share reduced slightly and was
EUR 2.56 (2.79).
Return on investment improved clearly, being 28.6 % (20.4 %).
Business Operations
Etteplan acts as a partner of large and medium-sized internationally
operating industrial companies, carrying out entire design projects
or continuous product development and equipment design. The Groups
design services consist of 1) machine technology and mechatronics
design, 2) automation and electrical design as well as 3) electronics
and software design. The customers are equipment manufacturers and
end-users in the wood-processing industry as well as processing,
automotive, lifting and hoisting and electronics industry.
Major events in the second quarter
In June Etteplan acquired a 70 % majority stake in Swedish Timatec
AB. The company employs 15 persons and operates in Karlstad, Sweden
providing mechanical and automation design services especially for
the machinery and device manufacturers in the wood processing
industry.
In June Etteplan increased its share of ownership in Konette Design
Center Oy. Etteplans share of ownership grew consequently from 60 %
to 81 %. The acquisition follows the ownership strategy, which was
agreed in 1999 when Konette Design Center Oy was established.
In June Di&Esse Etteplan Srl and Metso Paper Como S.p.A, member
of Metso Corporation, signed a co-operation agreement. As a part
of the agreement 18 designers from Metso Paper Como will join
Di&Esse Etteplan. At the same time with the signing of co-operation
agreement Etteplan Oyj has increased its share of ownership in
Di&Esse Etteplan to 70 %.
In June Etteplan Oyj and Shanghai Nextrom Machinery Manufacturing
Co., Ltd. have signed a Letter of Intent, according to which the
companies will establish a joint venture to Shanghai, China.
According to the agreement the ownership in the joint venture is
divided between the companies so that the Etteplan Group possesses
87,5 % and Shanghai Nextrom Machinery Manufacturing Co., Ltd 12,5 %.
Further in June Etteplan and Sulzer Pumps Finland Oy signed a
co-operation agreement. According to the agreement Etteplan
provides design services such as agitator related design to
Sulzer Pumps Finland Oy. As part of the agreement 6 designers
from the Sulzer Pumps Finlands Salo office will transfer to
Etteplan on 1 September 2004.
During the report period the company has received new significant
assignments. Among others Etteplan has signed contracts with
Nokian Tyres plc and Lemcon Ltd, a subsidiary of Lemminkäinen Group,
concerning the design services for a tyre plant in Vsevolozhsk,
near St. Petersburg. The total value of the contracts exceeds
EUR 1 million.
Personnel
The operations and number of personnel of the Etteplan Group have
grown steadily. During the report period the Group employed an
average of 934 persons (824) and at the end of the period the
payroll numbered 964 employees (838). Increases in the number of
staff were due to transferred business activities and were nearly
entirely directed to the carrying out of customer projects. The
Groups personnel at units abroad numbered 229 employees.
Capital expenditures and financing
The Groups total capital expenditures increased by 71.9 % compared
with the same period a year earlier and totalled EUR 1.6 million
(0.9 million). Largest individual capital expenditures were the
purchases of additional share in Konette Design Center Oy and
Di&Esse Etteplan Srl as well as Metso Paper Como S.p.A and Sulzer
Pumps Finland Oy outsourcings. Other investments went for the
purchase of computer software and hardware as well as for the
development of information networks.
Etteplans financial position remained strong. Total assets at
30 June 2004 stood at EUR 24.7 million (25.0 million), of which
cash and cash equivalents as well as securities held as financial
fixed assets totalled EUR 3.5 million (5.1 million). The Groups
interest-bearing liabilities at the end of the period totalled
EUR 1.0 million (0.9 million). The equity ratio was 51.4 % (56.2 %).
Good liquidity was maintained throughout the report period and
operating cash flow was EUR 1.0 million.
Share capital and treasury shares
At 30 June 2004 the company held 100 treasury shares, corresponding
to 0.002 % of the entire shares outstanding. The consideration paid
for the shares amounted to EUR 481.00. During the report period the
company has not bought back its shares. The companys treasury
shares do not have an effect on the proportional distribution of
shareholdings.
Major events after the report period
According to the agreement made in June the share majority of
Timatec AB was transferred on 1 July 2004 and the company became
a part of the Etteplan Group.
In July Etteplan increased its share capital as a consequence of
the agreement to acquire a majority stake in the Timatec AB. The new
shares were entered into Trade Register on 20 July 2004. The amount
of share capital increase is 6.784,20 euros and the total amount of
the new share capital after the increase is 434.245,00 euros. In the
direct share issue the total number 67.842 of new shares were
tradable from 21 July 2004 onwards. The shares are available for
trading together with the former shares. After the share issue the
total number of shares is 4.342.450.
Near-term outlook
Demand for capital goods is expected to remain good in companys
main marketing area in North and Central Europe in all industrial
sectors. Result for the financial year is expected to be better
than in the previous year. The company is further strongly investing
to international growth. The most important project in the near
future is the implementation and the expansion of the Shanghai unit.
Companys main objective is continuation of profitable growth.
The growth is achieved organically when customers transfer their
design activities to Etteplan and by acquisitions. The company
works persistently and systematically to ensure the realization
of growth objectives.
Hollola, 11 August 2004
Etteplan Oyj
Board of Directors
For additional information, contact: CEO Heikki Hornborg,
tel. +358 3 872 9011, GSM +358 400 873 063.
The figures are unaudited.
DISTRIBUTION: Helsinki Exchanges
Principal media
www.etteplan.com
CONSOLIDATED PROFIT AND LOSS ACCOUNT (EUR 1000)
1.1.-30.6.04 1.1.-30.6.03 1.1.-31.12.03
TURNOVER 29 387 23 805 50 662
Variation in work in progress 397 437 110
Other operating income 32 39 134
Materials and services -775 -276 -1 087
Staff expenses -21 744 -17 842 -38 312
Depreciation and amortisation
according to plan -980 -741 -1 791
Other operating expenses -4 254 -3 813 -7 193
Share of losses from
participating interests 0 -86 -128
OPERATING PROFIT 2 062 1 523 2 395
" % 7,0 6,4 4,7
Financial income and expenses -2 -7 49
PROFIT BEFORE
EXTRAORDINARY ITEMS 2 059 1 516 2 444
Extraordinary items 0 0 0
PROFIT BEFORE APPROPRIATIONS
AND TAXES 2 059 1 516 2 444
Income taxes -740 -568 -1 054
Change in deferred tax liability 0 0 -11
Minority interest -378 -209 -416
NET PROFIT FOR THE PERIOD 942 739 964
" % 3,2 3,1 1,9
CONSOLIDATED BALANCE SHEET (EUR 1000)
30.6.2004 30.6.2003 31.12.2003
ASSETS
NON-CURRENT ASSETS
Intangible assets 4 449 2 382 4 308
Tangible assets 3 191 3 218 3 361
Own shares 0 536 0
Other investments 414 2 300 443
NON-CURRENT ASSETS, TOTAL 8 054 8 436 8 112
CURRENT ASSETS
Stocks 1 251 946 843
Current receivables 11 940 10 524 10 518
Marketable securities 0 989 796
Cash and cash equivalent 3 450 4 084 5 810
CURRENT ASSETS, TOTAL 16 641 16 543 17 968
ASSETS, TOTAL 24 695 24 979 26 080
SHAREHOLDERS EQUITY AND LIABILITIES
SHAREHOLDERS EQUITY
Share capital 427 427 427
Share premium account 5 058 5 058 5 058
Reserve for own shares 0 536 0
Retained earnings 4 528 5 380 5 923
Net profit for the period 942 739 964
SHAREHOLDERS EQUITY, TOTAL 10 956 12 139 12 372
MINORITY INTERESTS 1 376 1 914 2 194
LIABILITIES
Deferred tax liabilities 198 188 198
Long-term liabilities 926 769 1 065
Current liabilities 11 239 9 969 10 249
LIABILITIES, TOTAL 12 363 10 926 11 513
SHAREHOLDERS EQUITY AND
LIABILITIES, TOTAL 24 695 24 979 26 080
KEY FIGURES FOR ETTEPLAN GROUP (EUR 1000)
Changes
1.1.-30.6.04 1.1.-30.6.03 1.1.-31.12.03 for prev.
year
Turnover 29 387 23 805 50 662 23,5 %
Operating profit 2 062 1 523 2 395 35,4 %
% of turnover 7,0 6,4 4,7
Profit before extra-
ordinary items 2 059 1 516 2 444 35,8 %
Net profit for
the period 942 739 964 27,5 %
Return on investment, % 28,6 20,4 16,1
Return on equity, % 19,6 13,7 9,6
Equity ratio % 51,4 56,2 57,2
Gross interest-bearing
loans 1 019 933 1 197 9,2 %
Dept-equity ratio, % -19,7 -30,6 -37,1
Total balance 24 695 24 979 26 080 -1,1 %
Gross investments 1 623 944 2 772 71,9 %
Earnings per share 0,22 0,17 0,23 29,4 %
Equity per share 2,56 2,79 2,89 -8,2 %
Personnel at the end
of the period 964 838 936 15,0 %
Personnel, average 934 824 876 13,3 %
CONSOLIDATED CASH FLOW STATEMENT (EUR 1000)
1.1.-30.6.04 1.1.-30.6.03 1.1.-31.12.03
OPERATING CASH FLOW
Cash receipts from customers 28 421 21 838 48 063
Other operating income 32 39 109
Operating expenses paid 26 753 20 699 44 117
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES 1 700 1 179 4 055
Interest and payment paid for
financial expenses 26 27 59
Interest received 23 20 98
Dividend received 0 0 11
Income taxes paid 740 568 1 054
OPERATING CASH FLOW (A) 958 604 3 051
INVESTMENT CASH FLOW
Investment in tangible and
intangible assets 1 623 945 2 759
Sales of tangible and
intangible assets 0 0 203
Investments to other investments 0 5 13
INVESTMENT CASH FLOW (B) -1 623 -950 -2 569
FINANCING CASH FLOW
Purchase of own shares 0 396 0
Short-term loans, increase 0 47 0
Short-term loans, decrease 0 0 78
Long-term loans, increase 0 0 269
Long-term loans, decrease 140 26 0
Dividends paid and other
profit distribution 2 351 1 365 1 227
FINANCING CASH FLOW (C) -2 491 -1 741 -1 036
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/ DECREASE (-) -3 155 -2 087 -554
ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD 6 606 7 160 7 160
ASSETS AT THE END
OF THE FINANCIAL PERIOD 3 451 5 073 6 606
