ETTEPLAN OYJ: INTERIM REPORT 1 JANUARY – 30 JUNE 2005
Stock exchange release – Published: 09.08.2005 9:00:00
INTERIM REPORT 1 JANUARY - 30 JUNE 2005
ETTEPLAN'S REVENUE GROWS BY 36%; OPERATING PROFIT EUR 2.5 MILLION
- Consolidated revenue: EUR 40.5 million (29.9 million)
- Operating profit: EUR 2.5 million (2.3 million)
- Net profit: EUR 1.5 million (1.2 million)
- Earnings per share: EUR 0.17 (0.14)
- Personnel at the
end of the period: 1,235 employees (964)
(Figures in parenthesis refer to the corresponding period of
the previous year, unless otherwise indicated.)
Etteplan's revenue and operating profit grew substantially,
especially in its main market area, the Nordic countries.
Almost half of the growth was organic, which was due to the
robust demand for design services and stepped-up marketing
effectiveness. Revenue grew in both of the company's segments;
revenue growth was especially buoyant in the Delivery Design
segment. The result is still burdened by the structural changes
in the automotive industry in Italy and the operational
realignment of a major customer in Germany.
Revenue and result
Etteplan's revenue rose to EUR 40.5 million (EUR 29.9 million).
Second-quarter revenue amounted to EUR 21.1 million (EUR 15.3
million) and first-quarter revenue to EUR 19.4 million
(EUR 14.6 million).
Operating profit during the review period totalled EUR 2.5
million (EUR 2.3 million), representing 6.1% of revenue (7.8%).
Second-quarter operating profit amounted to EUR 1.5 million
(EUR 1.3 million), representing 7.2% of revenue (8.6%). Profit
for the period before taxes and minority interest was EUR 2.4
million (EUR 2.3 million). Taxes amounted to EUR 0.8 million
(EUR 0.8 million). Taxes have been periodized in line with the
result for the review period.
Net profit for the period amounted to EUR 1.5 million (EUR 1.2
million). Earnings per share came in at EUR 0.17 (EUR 0.14).
Equity per share grew by 27.3% to EUR 1.68 (EUR 1.32). Return
on investment fell compared to the previous year and was 28.2%
(32.1%).
Business operations
Etteplan operates as a partner of large and medium-sized
internationally operating industrial companies, providing
industrial engineering design services. The Group's design
services are divided into two segments: Delivery Design and
Product Development.
The Delivery Design segment provides services for the design
of machinery and devices, as well as production facilities.
Mechanical, electrical, automation and plant design and
commissioning services are provided for project and equipment
suppliers as well as for plant owners and operators. The Product
Development segment provides design services for product
development. The services are based on long-term partnerships
with customers and are aimed to ensure the customer's
competitiveness in the future. In addition the company has
an accredited laboratory which is specialized in electromagnetic
disturbance measurements.
Etteplan's customer base comprises equipment manufacturers and
end-users in the wood-processing industry as well as the process,
automotive, lifting and hoisting equipment and electronics
industries.
Major events in the second quarter
The company landed numerous major commissions during the review
period, particularly in Sweden and Finland. To name but one, the
company received a further order for the design of the extension
to Nokian Tyres Plc's factory in St Petersburg. The order is
valued at just under one million euros.
The company's share was transferred to the Main List of the
Helsinki Stock Exchange in May.
Personnel
The Etteplan Group's operations and number of personnel have
grown steadily. During the review period, the Group employed
an average of 1,203 people (934). At the end of the period,
the payroll numbered 1,235 employees (964). The number of
employees rose due to the business operations transferred to
the Group; these employees are almost solely allocated to the
implementation of customer projects. 455 people worked for
the Group abroad.
Capital expenditures and financing
The Group's total capital expenditures amounted to EUR 4.1
million (EUR 1.6 million). The capital expenditures were
primarily earmarked for the expansion of business operations.
Etteplan's financial position remained strong. Total assets at
30 June 2005 stood at EUR 33.6 million (EUR 24.5 million), of
which cash and cash equivalents as well as securities held as
financial fixed assets totalled EUR 4.8 million (EUR 3.7 million).
The Group's interest-bearing liabilities at the end of the period
totalled EUR 2.6 million (EUR 1.1 million). The equity ratio was
48.9% (51.5%). Liquidity was good throughout the report period.
Shares
Etteplan Oyj's shares were transferred to the Main List of the
Helsinki Stock Exchange as from 24 May 2005. Etteplan Oyj is
quoted under the Other Services business sector of the Main List.
The company's shares were previously quoted on the NM List of
the Helsinki Stock Exchange.
Etteplan Oyj's share capital amounts to EUR 2,274,011.50 and
the number of its shares to 9,096,046. During the report period,
the share capital was first increased on the basis of warrant
subscriptions in January 2005 as part of the company's stock
option programme I 2000 - 2005 (EUR 9,065) and then in connection
with the acquisition of a majority stake in ProTang AB on
7 February 2005 (EUR 90,721.50). The new shares were entered in
the Trade Register on 4 April 2005. The increases in the share
capital were announced in a stock exchange release on the same
day. Public trading in the subscribed shares (a total of 399,146
new shares) on the Helsinki Stock Exchange began on 5 April 2005.
On 30 June 2005, the company held 200 of its own shares
(treasury shares). The consideration paid for the shares is
EUR 481.00. The company did not buy back any of its own shares
during the review period. The shares owned by the company have
no effect on the distribution of shareholdings.
The authorizations to increase the share capital by means of
a rights issue, to buy back and transfer own shares, and to
increase the company's share capital through a bonus issue which
the Annual General Meeting granted to the Board of Directors
remain valid. The authorizations were not exercised during the
review period. The authorizations are presented in detail in a
stock exchange release dated 23 March 2005.
Adoption of IFRS
Etteplan Oyj changed over to accounting and financial statement
principles that are in line with IFRS (International Financial
Reporting Standards) in its financial reporting as from
1 January 2005. The company will draft its first full IFRS
financial statements for 2005. On 22 April 2005, Etteplan
published a stock exchange release including the IFRS comparative
information for 2004. The interim report has been drafted in
accordance with IFRS recognition and measurement policies.
Outlook for the future
Demand for industrial design services is expected to remain
good in the main market area, the Nordic countries.
The company has started up assessments concerning the
reorganization of its functions in Central Europe with a view
to improving the profitability of its operations and bolstering
its market position. The assessment of the realignment measures
and their cost impact will be completed by the end of the year.
The company continuously and systematically works towards its
most important objective - profitable growth - organically,
through acquisitions and by implementing outsourcing projects.
The information presented herein has not been audited.
Hollola, 9 August 2005
Etteplan Oyj
Board of Directors
For additional information, contact: CEO Heikki Hornborg,
tel. +358 3 872 9011, GSM +358 400 873 063 or CFO, Corporate
Planning Pia Björk, tel. +358 3 872 9012, GSM +358 400 241 815.
DISTRIBUTION: Helsinki Stock Exchange
Principal media
www.etteplan.com
CONSOLIDATED PROFIT AND LOSS ACCOUNT
(EUR 1 000) 1-6/2005 1-6/2004 1-12/2004
Revenue 40 515 29 876 61 967
Other operating income 68 32 121
Materials and services -905 -786 -1 926
Staff costs -29 911 -21 744 -44 036
Other operating expenses -6 373 -4 247 -9 053
Depreciation and amortization
expenses -912 -794 -1 630
Operating profit 2 482 2 337 5 443
Net financial expenses -40 -3 42
Profit before taxes and
minority interest 2 442 2 334 5 485
Income taxes -794 -763 -1 686
Minority interest -117 -378 -588
Net profit for the financial
period 1 531 1 193 3 211
CONSOLIDATED BALANCE SHEET
(EUR 1 000) 30.6.2005 30.6.2004 31.12.2004
ASSETS
Non-current assets
Goodwill 483 0 8
Intangible assets 7 607 4 384 5 052
Property, plant and equipment 4 044 3 871 3 904
Investments available for sales 52 45 95
Other non-current receivables 40 0 0
Non-current assets, total 12 227 8 300 9 059
Current assets
Trade receivables and other
receivables 16 561 12 538 12 201
Investments available for sales 234 253 234
Cash and cash equivalents 4 548 3 450 6 601
Current assets, total 21 343 16 241 19 035
ASSETS TOTAL 33 570 24 541 28 095
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Share capital 2 274 427 434
Share premium account 5 262 5 058 5 434
Translation difference -233 18 -19
Retained earnings 6 437 4 547 4 532
Net profit or loss for the period 1 531 1 193 3 211
Minority interest 1 067 1 376 1 208
Shareholders' equity, total 16 337 12 619 14 800
Non-current liabilities
Non-current interest-bearing
liabilities 1 657 950 1 342
Non-current liabilities, total 1 657 950 1 342
Current liabilities
Deferred tax liability 157 205 166
Pension liability 13 134 13
Instalment of non-current
liabilities 772 93 28
Current interest-bearing
liabilities 185 13 28
Trade and other payables 14 450 10 527 11 718
Current liabilities, total 15 576 10 972 11 952
Liabilities, total 17 233 11 922 13 295
SHAREHOLDERS' EQUITY AND
LIABILITIES, TOTAL 33 570 24 541 28 095
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1 000) 1-6/2005 1-6/2004 1-12/2004
OPERATING CASH FLOW
Cash receipts from customers 39 244 48 063 60 675
Other operating income 68 109 121
Operating expenses paid 37 454 44 117 54 944
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES 1 858 4 055 5 852
Interest and payment paid for
financial expenses 62 59 53
Interest received 22 98 90
Dividend received 6 11 6
Income taxes paid 368 1 054 1 662
OPERATING CASH FLOW (A) 1 456 3 051 4 234
INVESTMENT CASH FLOW
Investment in tangible and
intangible assets 2 031 2 759 2 363
Sales of tangible and
intangible assets 252 203 371
Proceeds from sale of investments 43 13 21
INVESTMENT CASH FLOW (B) -1 737 -2 569 -2 013
FINANCING CASH FLOW
Rights issue 188 0 0
Short-term loans, decrease 28 78 105
Long-term loans, increase 0 269 230
Long-term loans, decrease 627 78 0
Dividend paid and other
profit distribution 1 305 1 227 2 351
FINANCING CASH FLOW (C) -1 772 -1 035 -2 225
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/DECREASE (-) -2 053 -553 -5
ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD 6 601 7 160 6 606
ASSETS AT THE END
OF THE FINANCIAL PERIOD 4 548 6 606 6 601
The comparison figures 2004 in the consolidated cash flow
statement are according to FAS.
Evaluation of the changes in shareholders' equity, EUR 1 000
Share Share Trans- Retained Minority Total
capital premium lation earnings interest
account differ.
Shareholders'
equity on
1.1.2004 427 5 058 0 6 885 2 194 14 564
Dividends paid -2 351 -345 -2 696
Acquisitions/
changes in share
of ownership -852 -852
Net profit for
the financial
period 1 193 378 1 571
Translation
difference 31 1 32
Shareholders'
equity on
30.6.2004 427 5 058 31 5 727 1 376 12 619
Shareholders'
equity on
1.1.2005 434 5 434 -19 7 743 1 208 14 800
Dividends paid -1 305 -213 -1 518
Share issue 1 739 -1 739 0
Increase in
share capital 91 1 388 0 1 479
Options 10 179 0 189
Acquisitions/
changes in share
ownership -42 -42
Net profit for
the financial
period 1 531 117 1 648
Translation
difference -214 -5 -219
Shareholders'
equity on
30.6.2005 2 274 5 262 -233 7 969 1 065 16 337
KEY FIGURES
1-6/2005 1-6/2004 1-12/2004 Changes
for prev.
year
Revenue 40 515 29 876 61 967 35,6 %
Operating profit 2 482 2 337 5 443 6,2 %
Operating profit, % 6,1 7,8 8,8
Profit before taxes and
minority interest 2 442 2 334 5 485 4,6 %
Net profit for the period 1 531 1 193 3 211 28,3 %
Return on investment, % 28,2 32,1 34,7
Return on equity, % 21,2 23,8 25,9
Equity ratio, % 48,9 51,5 52,9
Gross interest-bearing loans 2 614 1 056 1 398 147,5 %
Net gearing, % -13,0 -21 -37
Balance sheet total 33 570 24 541 28 095 36,8 %
Gross investments 4 104 1 622 2 384 145,5 %
Earnings per share 0,17 0,14 0,37 21,4 %
Equity per share 1,68 1,32 1,57 27,3 %
Personnel at the end of
the period 1 235 964 1 049 27,5 %
Personnel, average 1 203 934 965 28,7 %
