ETTEPLAN OYJ: INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2006
Stock exchange release – Published: 27.10.2006 10:00:00
INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2006
ETTEPLAN'S REVENUE GROWS BY 28% AND NET PROFIT DOUBLES
Favourable market situation continues.
- Consolidated revenue: EUR 72.3 million (56.6 million)
- Operating profit: EUR 4.7 million (2.3 million)
- Net profit: EUR 2.9 million (1.5 million)
- Earnings per share: EUR 0.30 (0.16)
- Personnel at the end
of the report period: 1,530 employees (1,237)
(Figures in parenthesis refer to the corresponding period of the
previous year, unless otherwise indicated.)
Good demand for industrial technology design services in Etteplan's
main market area led to a significant increase in revenue. Demand for
the company's services rose noticeably not only in the Nordic countries,
but also in other market areas. On top of organic growth, this increase
resulted primarily from the acquisition of TeknikPartner AB in the
spring. Operating profit was up thanks to a good workload level and
internal efficiency measures. Profitability improved notably in both
of the company's segments (Product Development and Delivery Design).
Revenue and result
Etteplan's revenue rose to EUR 72.3 million (EUR 56.6 million).
Third-quarter revenue amounted to EUR 23.5 million (EUR 16.1 million),
second-quarter revenue to EUR 26.4 million (EUR 21.1 million) and
first-quarter revenue to EUR 22.4 million (EUR 19.4 million).
Operating profit during the review period totalled EUR 4.7 million
(EUR 2.3 million), representing 6.5% of revenue (4.1%). Third-quarter
operating profit amounted to EUR 1.7 million (EUR -0.2 million),
representing 7.2% of revenue (-1.2%). Profit for the period before
taxes and minority interest was EUR 4.6 million (EUR 2.3 million).
Taxes amounted to EUR 1.4 million (EUR 0.6 million). Taxes have been
periodized in line with the result for the review period.
Net profit for the period amounted to EUR 2.9 million (EUR 1.5 million).
Earnings per share were EUR 0.30 (EUR 0.16). Equity per share grew by
28.6% and was EUR 2.16 (EUR 1.68). Return on investment was up on the
comparison period at 22.1% (17.6%).
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 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 third quarter
In September, Etteplan completed the planned acquisition of the entire
share capital of Etteplan Design Center Oy by buying a 19% holding from
KONE Corporation.
Etteplan made numerous major agreements during the report period.
Among others the company signed an agreement for traffic telematic design
of the truck terminal at Vaalimaa on the Russian border. Etteplan also
supplies Ericsson AB with design and manufacturing of test systems for
the factory in Katrineholm and participates with a significant part in
the development of an electronic system for an existing car model for
Saab Automobile AB in Trollhättan. In addition the company has received
several large assignments from machinery and equipment manufacturers in
the paper industry.
Personnel
The Etteplan Group's operations and number of personnel have grown steadily.
The Group's average payroll during the report period was 1,470 employees
(1,211) and the number of staff at the end of the period was 1,530 employees
(1,237). 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. 660 people worked for the Group abroad.
Capital expenditures and financing
The Group's total capital expenditures amounted to EUR 12.3 million
(EUR 4.8 million). The largest single investment of the report period was
the acquisition of the entire share capital of ABA TeknikPartner AB. Other
capital expenditures were primarily earmarked for the implementation and
development of business operations.
Etteplan's financial position was good. Total assets at 30 September 2006
amounted to EUR 52.6 million (EUR 31.4 million), representing a growth of
67.7%. Balance sheet goodwill rose to EUR 16.2 million (EUR 6.9 million).
The Group's cash and cash equivalents as well as marketable securities
increased to EUR 4.4 million (EUR 2.7 million). The Group's interest-bearing
liabilities at the end of the report period totalled EUR 12.9 million
(EUR 2.9 million). The equity ratio was 42.0% (52.0%).
Shares
The Etteplan Oyj share has been quoted in the Nordic Exchange's Small Cap
market capitalisation group in the Industrials sector as of 2 October 2006.
Previously, the company's share was listed on the Main List of the Helsinki
Stock Exchange.
At the end of the report period, Etteplan Oyj's share capital amounted to
EUR 2,443,232.50 and the number of its shares to 9,772,930. There was no
increase in the company's share capital during the report period.
In accordance with the Securities Market Act, Chapter 2, Article 9,
the company issued a notification of two changes in shareholding on
6 September 2006. Leimark Invest Oy Ab and Ingman Finance Oy Ab's
combined stake in Etteplan Oyj's share capital and voting rights
exceeded 5% as a result of transactions made on 6 September 2006.
On that date, Fincorp Oy signed an agreement whose implementation
will lead the company's holding in Etteplan Oyj's share capital and
voting rights to exceed 5%.
On 30 September 2006, the company did not hold any of its own shares.
The company did not transfer or buy back any of its own shares during
the review period.
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) that were not exercised during the report period
remain valid. The authorizations granted to the Board of Directors are
presented in detail in a stock exchange release dated 29 March 2006.
No authorizations were exercised during the review period.
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. Etteplan drafted its
first full IFRS financial statements for 2005. This Interim Report has
been prepared in accordance with IFRS recognition and measurement policies.
The report has not been prepared in compliance with all the requirements
of IAS 34 Interim Financial Reporting.
Major events after the close of the financial period
In October, Etteplan and Larox Corporation signed a letter of intent to
broaden their two decades of design cooperation. As part of the agreement,
10 employees working on delivery project and product maintenance design
and documentation tasks at Larox's Finnish locations will transfer to
Etteplan as existing employees as of 1 January 2007.
On 18 October 2006, Etteplan issued a stock exchange announcement on
the Board of Directors' decision to acquire a maximum of 80,000 of
the company's own shares on the basis of the authorization granted by
the Annual General Meeting on 29 March 2006. The authorization allows
shares to be obtained for use as consideration in possible acquisitions
or for use in carrying out other structural arrangements. Any shares
acquired can also be invalidated.
Outlook for the future
The demand situation for industrial technology design services is
forecast to remain unchanged in all market areas.
The company's full-year revenue and result are expected to increase
notably compared to the previous year.
The information presented herein has not been audited.
Hollola, 27 October 2006
Etteplan Oyj
Board of Directors
For additional information, contact:
CEO Heikki Hornborg, 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
Releases and other corporate information are available on Etteplan's
website at www.etteplan.com.
DISTRIBUTION
Helsinki Stock Exchange
Principal media
CONSOLIDATED INCOME STATEMENT
(EUR 1 000) 1-9/2006 1-9/2005 1-12/2005
Revenue 72 338 56 603 79 365
Other operating income 169 164 98
Materials and services -4 860 -1 578 -2 920
Staff costs -50 935 -42 440 -58 072
Other operating expenses -10 503 -9 005 -13 129
Depreciation and amortisation
expenses -1 527 -1 442 -1 930
Operating profit 4 682 2 301 3 411
Financial income 75 38 120
Financial expenses -160 -82 -103
Profit before taxes and
minority interest 4 597 2 257 3 429
Income taxes -1 371 -647 -1 167
Profit for the financial period 3 226 1 610 2 262
Minority interest -307 -157 -17
Net profit for the financial
period attributable to equity
holders of the Company 2 918 1 454 2 244
Basic earnings per share, EUR 0.30 0.09 0.25
CONSOLIDATED BALANCE SHEET
(EUR 1 000) 30.9.2006 30.9.2005 31.12.2005
ASSETS
Non-current assets
Goodwill 16 156 6 865 8 921
Intangible assets 4 119 1 595 1 953
Property, plant and equipment 3 013 3 961 3 491
Investments available for sales 465 52 465
Deferred tax assets 13 40 96
Non-current assets, total 23 767 12 513 14 926
Current assets
Stocks 0 0 25
Trade and other receivables 24 448 16 167 17 712
Financial assets at fair value
through income statement 0 226 475
Cash and cash equivalents 4 426 2 480 4 445
Current assets, total 28 874 18 872 22 657
TOTAL ASSETS 52 641 31 385 37 582
EQUITY AND LIABILITIES
Capital attributable to equity holders
Share capital 2 443 2 274 2 403
Share premium account 9 179 5 262 8 269
Cumulative translation adjustment -191 -185 -252
Retained earnings 6 759 6 445 6 439
Net profit for the financial period 2 918 1 454 2 244
Capital attributable to
equity holders 21 109 15 250 19 104
Minority interest 783 1 029 1 360
Equity, total 21 892 16 279 20 463
Non-current liabilities
Deferred tax liability 874 161 193
Non-current interest-bearing
liabilities 9 194 1 718 1 414
Non-current liabilities, total 10 068 1 718 1 606
Current liabilities
Current interest-bearing
liabilities 3 673 1 204 766
Trade and other payables 17 008 12 025 14 746
Current liabilities, total 20 681 13 389 15 512
Liabilities, total 30 749 15 107 17 119
TOTAL EQUITY AND LIABILITIES 52 641 31 385 37 582
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1 000) 1-9/2006 1-9/2005 1-12/2005
OPERATING CASH FLOW
Cash receipts from customers 70 774 53 761 73 864
Cash receipts from other
operating income 153 154 78
Operating expenses paid 67 492 54 325 72 836
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES 3 436 -410 1 106
Interest and payment paid
for financial expenses 142 83 103
Interest received 75 46 120
Income taxes paid 1 344 846 980
OPERATING CASH FLOW (A) 2 024 -1 292 144
INVESTMENT CASH FLOW
Purchase of tangible and
intangible assets 1 653 2 509 1 614
Acquisition of subsidiaries 9 405 0 672
Proceeds from sale of tangible
and intangible assets 155 262 295
Purchase of other investment 0 0 845
Proceeds from sale of investment 464 42 0
INVESTMENT CASH FLOW (B) -10 439 -2 205 -2 836
FINANCING CASH FLOW
Proceeds from issuance of
share capital 0 188 317
Short-term loans, increase 1 332 0 0
Short-term loans, decrease 0 28 28
Long-term loans, increase 9 897 519 1 423
Long-term loans, decrease 914 0 0
Dividend paid and other
profit distribution 1 923 1 305 1 305
FINANCING CASH FLOW (C) 8 392 -625 409
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/DECREASE (-) -23 -4 122 -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 -4 0 -128
ASSETS AT THE END OF
OF THE FINANCIAL PERIOD 4 426 2 480 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 -184 -2 107
Share issue 40 910 950
Changes in
ownership -700 -700
Net profit for
the financial
period 2 918 307 3 225
Translation
adjustment 61 61
Equity
30.9.2006 2 443 9 179 -190 9 677 783 21 892
KEY FIGURES
1-9/2006 1-9/2005 1-12/2005 Changes
for prev.
year
Revenue 72 338 56 603 79 365 27.8 %
Operating profit 4 682 2 301 3 411 103.5 %
Operating profit, % 6.5 4.1 4.3
Profit before taxes and
minority interest 4 597 2 257 3 429 103.7 %
Net profit for the period 2 918 1 454 2 244 100.7 %
Return on equity, % 20.3 13.8 12.8
Return on investment, % 22.1 17.6 18.2
Equity ratio, % 42,0 52.0 54.7
Gross interest-bearing loans 12 867 2 908 2 180 342,5 %
Net gearing, % 38,6 1.2 -13.4
Balance sheet total 52 641 31 385 37 582 67.7 %
Gross investments 12 281 4 756 8 311 158,2 %
Earnings per share, EUR 0.30 0.16 0.25 88,5 %
Equity per share, EUR 2.16 1.68 1.99 28,6 %
Personnel, average 1 470 1 211 1 230 21,4 %
Personnel at the end of
the period 1 530 1 237 1 294 23,7 %
