ETTEPLAN OYJ: INTERIM REPORT 1 JANUARY – 31 MARCH 2006
Stock exchange release – Published: 28.04.2006 10:00:00
INTERIM REPORT 1 JANUARY - 31 MARCH 2006
ETTEPLAN'S REVENUE GROWS BY 15%; OPERATING PROFIT EUR 1.5 MILLION
- Consolidated revenue: EUR 22.4 million (19.4 million)
- Operating profit: EUR 1.5 million (1.0 million)
- Net profit: EUR 0.9 million (0.5 million)
- Earnings per share: EUR 0.09 (0.06)
- Personnel at the
end of the period: 1,329 employees (1,229)
(Figures in parenthesis refer to the corresponding period of the
previous year, unless otherwise indicated.)
Etteplan remained on a robust, profitable growth track. Revenue
was up 15%, with organic growth amounting to 8%. The company's
profit improved significantly compared with both the previous
quarter and the corresponding period of last year. Demand for
industrial technology design services and information technology
was solid in the Nordic countries and improved in Central Europe.
The profitability improvement measures deployed by the company
have significantly turned around the earnings trends of the units
that were facing the worst profitability problems, while the
operational efficiency of the entire Group has been upgraded.
Following the improvements that have been implemented, the company
has strengthened its position as a key supplier to the major
customers and expanded its clientele in all market areas.
Revenue and result
Etteplan's revenue rose to EUR 22.4 million (EUR 19.4 million).
Operating profit during the review period totalled EUR 1.5 million
(EUR 1.0 million), representing 6.7% of revenue (5.0%). Profit for
the period before taxes and minority interest was EUR 1.5 million
(EUR 1.0 million). Taxes amounted to EUR 0.4 million (EUR 0.4
million). Taxes have been periodized in line with the result for
the review period.
Net profit for the period amounted to EUR 0.9 million (EUR 0.5
million). Earnings per share came in at EUR 0.09 (EUR 0.06).
Equity per share grew by 18.8% to EUR 1.89 (EUR 1.59). Return on
investment improved compared to the previous year and was 27.4%
(22.4%).
Business operations
Etteplan operates as a partner of large and medium-sized inter-
nationally 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 and a unit that specializes
in information technology products and services.
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 first quarter
In March, Etteplan Oyj strengthened its operations in software
design services for the electronics and telecommunications sector.
The company entered into an agreement with Integrated e-Solutions
Finland Oy under the terms of which the business operations of the
company will be integrated into Etteplan. Integrated e-Solutions
Finland's revenue in 2005 was EUR 0.8 million.
At Etteplan Oyj's Annual General Meeting in March, the Board of
Directors was authorized:
- to decide, within one year from the date of the Annual General
Meeting, to take one or more convertible bonds and/or issue option
rights and/or decide to increase the share capital in one or more
lots by means of a rights issue so that when issuing convertible
bonds or option rights or rights issues together, the Board of
Directors' unexercised, valid authorizations shall, however, with
regard to the total amount of the increase and the total number of
voting rights attached to the shares to be issued, correspond to
no more than one-fifth of the registered share capital and the
aggregate number of voting rights attached to the shares at the
date of the resolution of the General Meeting of Shareholders
concerning the authorization and the decision of the Board of
Directors to increase the share capital. Pursuant to the
authorization the company's share capital may be increased by a
maximum of EUR 480,656.50.
- to acquire the company's own shares in one or more lots to the
effect that the company may use funds distributable as profit
otherwise than in proportion to the holdings of the shareholders.
The authorization includes the right to acquire the company's shares
in public trade at the applicable quoted price to the effect that
the total accounting par value and the voting rights attached to
the acquired shares shall be no more than ten (10) per cent of the
company's share capital and the aggregate number of voting rights
after the acquisition of the shares.
- to convey, in one or more lots, the company's own shares acquired
pursuant to the authorization set forth. The authorization granted
to the Board of Directors shall include the right to convey to the
effect that the aggregate accounting par value and the voting rights
attached to the shares shall be no more than ten (10) per cent of
the company's share capital and the aggregate number of voting
rights attached to the shares at the time of the conveyance.
Personnel
The Etteplan Group's operations and number of personnel have grown
steadily. During the review period, the Group employed an average
of 1,327 people (1,167). At the end of the period, the payroll
numbered 1,329 employees (1,229). 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. 460 people worked for the Group abroad.
Capital expenditures and financing
The Group's total capital expenditures amounted to EUR 0.4 million
(EUR 3.8 million). The capital expenditures were primarily earmarked
for the implementation and development of business operations.
Etteplan's financial position was satisfactory. Total assets at
31 March 2006 stood at EUR 39.6 million (EUR 33.7 million), of
which cash and cash equivalents as well as marketable securities
totalled EUR 5.3 million (EUR 6.7 million). The Group's interest-
bearing liabilities at the end of the period totalled EUR 2.2
million (EUR 3.1 million). The equity ratio was 49.5% (46.8%).
Shares
Etteplan Oyj's shares have been quoted under the Other Services
business sector on the Main List of the Helsinki Stock Exchange
as from 24 May 2005. The company's shares were previously quoted
on the NM List of the Helsinki Stock Exchange.
At the end of the report period, Etteplan Oyj's share capital
amounted to EUR 2,403,282.50 and the number of its shares to
9,613,130.
On 31 March 2006, 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, to take
convertible loans and/or issue option rights, and buy back and
transfer own shares granted to the Board of Directors at the
Annual General Meeting held on 29 March 2006 remain valid.
The authorizations were not exercised during the review period.
The authorizations are presented in detail in a stock exchange
release dated 29 March 2006.
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 has drafted its first full IFRS
financial statements for 2005. The interim report has been drafted
in accordance with IFRS recognition and measurement policies.
The report does not fully comply with all the requirements of
IAS 34, Interim Financial Reporting.
Outlook for the future
No significant changes are expected to occur in the market
situation for industrial and information technology, the company's
core fields. The demand situation is anticipated to remain good in
both the Product Development and Delivery Design segments in the
Nordic countries, and to improve slightly in Central Europe.
It is expected that organic growth will continue while the company
also seeks profitable, strong growth in line with its strategy
through M&A and other corporate arrangements.
The information presented herein has not been audited.
Hollola, 28 April 2006
Etteplan Oyj
Board of Directors
For additional information, please contact Heikki Hornborg, CEO,
tel. + 358 400 873 063 or Pia Björk, CFO, Vice President Corporate
Planning, tel. + 358 400 241 815
APPENDICES
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Key figures
Etteplan Oyj's second interim report for 2006 will be published
on 8 August 2006. Releases and other corporate information are
available on Etteplan's website at www.etteplan.fi.
DISTRIBUTION
Helsinki Stock Exchange
Principal media
CONSOLIDATED INCOME STATEMENT
(EUR 1 000) 1-3/2006 1-3/2005 1-12/2005
Revenue 22 416 19 446 79 365
Other operating income 46 34 98
Materials and services -1 040 -484 -2 920
Staff costs -16 015 -14 798 -58 072
Other operating expenses -3 393 -2 767 -13 129
Depreciation and amortisation
expenses -502 -464 -1 930
Operating profit 1 512 968 3 411
Financial income 8 11 120
Financial expenses -30 -33 -103
Profit before taxes and
minority interest 1 490 945 3 429
Income taxes -446 -360 -1 167
Profit for the financial period 1 044 586 2 262
Minority interest -158 -65 -17
Net profit for the financial
period attributable to equity
holders of the Company 887 521 2 244
Basic earnings per share, EUR 0.09 0.06 0.25
CONSOLIDATED BALANCE SHEET
(EUR 1 000) 31.3.2006 31.3.2005 31.12.2005
ASSETS
Non-current assets
Goodwill 8 997 6 433 8 921
Intangible assets 2 008 1 834 1 953
Property, plant and equipment 3 239 3 967 3 491
Investments available for sales 415 52 465
Deferred tax assets 115 0 96
Non-current assets, total 14 773 12 287 14 926
Current assets
Stocks 25 0 25
Trade and other receivables 19 458 14 733 17 712
Financial assets at fair value
through income statement 475 234 475
Cash and cash equivalents 4 821 6 442 4 445
Current assets, total 24 779 21 409 22 657
TOTAL ASSETS 39 552 33 695 37 582
EQUITY AND LIABILITIES
Capital attributable to equity holders
Share capital 2 403 2 274 2 403
Share premium account 8 269 5 262 8 269
Cumulative translation adjustment -162 -1 -252
Retained earnings 6 759 6 400 6 439
Net profit for the financial period 887 521 2 244
Capital attributable to
equity holders 18 156 14 456 19 104
Minority interest 1 291 1 230 1 360
Equity, total 19 448 15 686 20 463
Non-current liabilities
Deferred tax liability 178 158 193
Non-current interest-bearing
liabilities 1 455 1 954 1 414
Non-current liabilities, total 1 632 2 112 1 606
Current liabilities
Pension obligation 0 13 0
Current interest-bearing
liabilities 779 1 096 766
Trade and other payables 17 692 14 789 14 746
Current liabilities, total 18 471 15 898 15 512
Liabilities, total 20 104 18 009 17 119
TOTAL EQUITY AND LIABILITIES 39 552 33 695 37 582
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1 000) 1-3/2006 1-3/2005 1-12/2005
OPERATING CASH FLOW
Cash receipts from customers 21 819 17 183 73 864
Cash receipts from other
operating income 37 34 78
Operating expenses paid 20 682 15 047 72 836
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES 1 175 2 170 1 106
Interest and payment paid
for financial expenses 18 33 103
Interest received 8 10 120
Dividends received 0 1 0
Income taxes paid 255 434 980
OPERATING CASH FLOW (A) 909 1 713 144
INVESTMENT CASH FLOW
Purchase of tangible and
intangible assets 270 3 918 1 614
Acquisition of subsidiaries 22 0 672
Proceeds from sale of tangible
and intangible assets 82 154 295
Purchase of other investment -10 0 845
INVESTMENT CASH FLOW (B) -200 -3 764 -2 836
FINANCING CASH FLOW
Proceeds from issuance of
share capital 0 1 668 317
Short-term loans, decrease 221 -301 28
Long-term loans, decrease 112 0 0
Long-term loans, increase 0 526 1 423
Dividend paid and other
profit distribution 0 0 1 305
FINANCING CASH FLOW (C) -333 1 892 409
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/DECREASE (-) 377 -159 -2 284
ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD 4 445 6 601 6 601
EXCHANGE GAINS OR LOSSES ON
CASH AND BANK EQUIVALENTS 1 0 -128
ASSETS AT THE END OF
OF THE FINANCIAL PERIOD 4 821 6 442 4 445
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(EUR 1 000)
Share Share Trans- Retained Minority Total
capital premium lation earnings interest
account differ.
Equity
1.1.2005 434 5 434 -19 7 743 1 208 14 800
Dividends -1 305 -213 -1 518
Share issue 1 969 2 835 4 804
Changes in
ownership 348 348
Net profit for
the financial
period 2 244 17 2 261
Translation
adjustment -232 -232
Equity
31.12.2005 2 403 8 269 -251 8 682 1 360 20 463
Equity
1.1.2006 2 403 8 269 -251 8 682 1 360 20 463
Dividends -1 923 -191 -2 114
Changes in
ownership -36 -36
Net profit for
the financial
period 887 158 1 045
Translation
adjustment 89 89
Equity
31.3.2006 2 403 8 269 -162 7 646 1 291 19 447
KEY FIGURES
1-3/2006 1-3/2005 1-12/2005 Changes
for prev.
year
Revenue 22 416 19 446 79 365 15.3 %
Operating profit 1 512 968 3 411 56.2 %
Operating profit, % 6.7 5.0 4.3
Profit before taxes and
minority interest 1 490 945 3 429 57.7 %
Net profit for the period 887 521 2 244 70.2 %
Return on equity, % 20.9 15.4 12.8
Return on investment, % 27.4 22.4 18.2
Equity ratio, % 49.5 46.8 54.7
Gross interest-bearing loans 2 234 3 050 2 180 -26.8 %
Net gearing, % -15.7 -23.1 -13.4
Balance sheet total 39 552 33 695 37 582 17.4 %
Gross investments 433 3 764 8 311 -88.5 %
Earnings per share, EUR 0.09 0.06 0.25 59.3 %
Equity per share, EUR 1.89 1.59 1.99 18.8 %
Personnel, average 1 327 1 167 1 230 13.7 %
Personnel at the end of
the period 1 329 1 229 1 294 8.1 %
