Exel Composites Plc Interim Report for January 1 - June 30, 2009
EXEL COMPOSITES PLC STOCK EXCHANGE RELEASE 23 July 2009 at 11.00 a.m. 1 (14)
EXEL COMPOSITES PLC INTERIM REPORT FOR JANUARY 1 - JUNE 30, 2009
January - June 2009 highlights and outlook
- Net sales of continuing operations decreased to EUR 37.8 (43.4) million
compared to 2008 and were 12.8 per cent lower than for the corresponding period
in 2008
- Operating profit was EUR 4.4 million compared to EUR 4.6 million last year
(including EUR 0.7 million of non-recurring items), representing 11.6 (10.7) per
cent of net sales
- Fully diluted earnings per share were EUR 0.30 (-0.31)
- Net operative cash flow was positive at EUR +6.2 (+0.4) million
- Net gearing continued to improve from 123.9 per cent (year end 2008) to 63.5
per cent
- Exel Sports Oy will be merged into Exel Composites Plc in December 2009
- Due to the market uncertainty and poor visibility, Exel will not give any
profit guidance
April - June 2009 highlights
- Net sales of continuing operations were EUR 19.3 (22.4) million, 14.1 per cent
below previous year
- Operating profit of continuing operations improved 22.8 per cent to EUR 2.4
(1.9 including EUR -0.7 million non-recurring items) million, representing 12.4
(8.7) per cent of net sales
- Net operative cash flow was positive at EUR +3.2 (+0.5) million
- Fully diluted earnings per share EUR 0.16 (-0.30)
Vesa Korpimies, President and CEO:
“During the second quarter 2009, the impact of the financial crisis has
continued, affecting also market demand in the pultrusion business negatively.
Our sales in the second quarter of 2009 were 14.1 per cent lower than last year.
Especially the machine industry, sports and leisure, paper industry and
telecommunication markets were affected. Our sales were relatively good in
Europe compared to the situation on the Asian markets, which suffered from tough
competition particularly in China. Sales to transportation and general
industries, especially defense, improved due to new applications.
To address lower sales, we continued actions to adjust Exel Composites' cost
base. We maintained a strong emphasis on profitability and operative working
capital reduction, safeguarded good cash flow and improved our financial
position. The operating profit margin increased to 12.4 (8.7) per cent of net
sales.
Composites product market demand is uncertain and we have prepared for the
weakening trend to continue. We have initiated further actions to control costs
to adapt to lower sales volume, to streamline the operating working capital and
to amortize debt. We will also continue to have a strong focus on sales to
current and new customers.”
CONSOLIDATED KEY FIGURES, EUR million
(unaudited)
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| | 1.4. - | 1.4. | Change | 1.1. - | 1.1. - | Change, | 1.1. - |
| | 30.6. | - | % | 30.6. | 30.6. | % | 31.12. |
| | 2009 | 30.6. | | 2009 | 2008 | | 2008 |
| | | 2008 | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales, | 19.3 | 22.4 | -14.1 | 37.8 | 43.4 | -12.8 | 84.9 |
| continuing | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| Operating | 2.4 | 1.9 | 22.8 | 4.4 | 4.6 | -5.4 | 8.6 |
| profit, | | | | | | | |
| continuing | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
| % of net | 12.4 | 8.7 | | 11.6 | 10.7 | | 10.1 |
| sales | | | | | | | |
--------------------------------------------------------------------------------
| Profit for | 1.9 | 1.9 | -0.8 | 3.4 | 3.0 | 11.8 | -3.0 |
| the | | | | | | | |
| period, | | | | | | | |
| continuing | | | | | | | |
| operations | | | | | | | |
--------------------------------------------------------------------------------
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| Shareholde | 22.0 | 17.2 | 27.8 | 22.0 | 17.2 | 27.8 | 16.7 |
| rs' equity | | | | | | | |
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| Net | 13.9 | 30.7 | -54.5 | 13.9 | 30.7 | -54.5 | 20.7 |
| interest-b | | | | | | | |
| earing | | | | | | | |
| liabilitie | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| Capital | 45.5 | 53.3 | -14.6 | 45.5 | 53.3 | -14.6 | 45.4 |
| employed | | | | | | | |
--------------------------------------------------------------------------------
| Return on | 38.6 | -71.2 | | 37.5 | -36.1 | | -14.7 |
| equity, % | | | | | | | |
--------------------------------------------------------------------------------
| Return on | 22.5 | -34.3 | | 20.7 | -15.7 | | 0.0 |
| capital | | | | | | | |
| employed, | | | | | | | |
| % | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 35.9 | 24.5 | | 35.9 | 24.5 | | 28.2 |
| ratio, % | | | | | | | |
--------------------------------------------------------------------------------
| Net | 63.5 | 178.4 | | 63.5 | 178.4 | | 123.9 |
| gearing, % | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings | 0.16 | -0.30 | | 0.30 | -0.31 | | 0.34 |
| per share, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Earnings | 0.16 | -0.30 | | 0.30 | -0.31 | | -0.25 |
| per share, | | | | | | | |
| diluted, | | | | | | | |
| EUR | | | | | | | |
--------------------------------------------------------------------------------
| Equity per | 1.85 | 1.44 | 28.5 | 1.85 | 1.44 | 28.5 | 1.40 |
| share, EUR | | | | | | | |
--------------------------------------------------------------------------------
IFRS REPORTING
This interim report has been prepared in accordance with the recognition and
measurement principles of IFRS, which are the same as in the 2008 financial
statements. The Company has adopted the following mandatory IAS and IFRS
standards that entered into force on 1 January 2009:
- IFRS 8 Operating segments. The standard replaces IAS 14 Segment Reporting.
From this interim onwards, Exel Composites will be reporting only with one
segment, Exel Composites. Exel Sports Brands segment will be reported as
discontinued operations.
- IAS 1 Presentation of Financial Statements. The standard separates owner and
non-owner changes in equity. The Group applies this standard as of this interim
report.
-IAS 23 Borrowing costs. The revised standard requires capitalization of
borrowing costs that are directly attributable to the acquisition, construction
or production of a qualifying asset. The Group applies the standard as of this
interim report.
- IAS 32 Financial Instruments: Presentation and IAS 1 Presentation of Financial
Statements - Puttable Financial Instruments and Obligations Arising on
Liquidation. According to the revised standard requires entities to classify
puttable financial instruments and instruments, or components of instruments
that impose on the entity an obligation to deliver to another party a pro rata
share of net assets of the entity only on liquidation as equity, provided the
financial instruments have particular features and meet specific conditions. The
Group applies the standard as of this interim report.
FINANCIAL PERFORMANCE
Net sales of continued operations in April-June 2009 were EUR 19.3 (22.4)
million. Sales in almost all geographical markets and market segments decreased
in the second quarter. However, sales to general industries, especially defense,
improved due to new applications. Also, sales within the transportation segment
to train and tram customers were on a good level in the second quarter. On the
other hand, the truck and trailer business has been hit hard due to the
recession. Sales within the building and construction segment have shown some
resilience in Australia due to governmental financial packages.
Exel's operating profit of continued operations for April-June 2009 increased to
EUR 2.4 million, compared to EUR 1.9 million (including EUR 0.7 million of
non-recurring items) the corresponding period last year.
Several new products were developed during the second quarter e.g. in energy
industry and general industry applications.
Net sales of continued operations in January-June 2009 decreased by 12.8 per
cent to EUR 37.8 (43.4) million compared to the corresponding period in 2008.
Especially the machine industry, sports and leisure, paper industry and
telecommunication markets were affected. Our sales were relatively good in
Europe compared to the situation on the Asian market, which suffered from tough
competition especially in China.
Exel's operating profit of continued operations for the first six months of 2009
decreased to EUR 4.4 (4.6 including EUR 0.7 million of non-recurring items)
million, compared to the corresponding period last year. Operating profit as a
percentage of net sales was 11.6 (10.7) per cent.
The comprehensive rationalization program of the Exel Group has restored
profitability to satisfactory levels by reducing operational costs and
streamlining the capital employed.
The Group's net financial expenses in January-June were EUR +0.2 (-0.5) million.
The main reasons for the improvement were lower interest rates, lower debt and
favorable currency exchange rates, especially the Australian dollar. The Group's
profit before taxes from continuing operations was EUR 4.6 (4.1) million and
profit after taxes EUR 3.4 (3.0) million.
Earnings per share were totally EUR 0.30, EUR 0.29 from continuing operations
and EUR 0.02 from discontinued operations. Return on investment was 21.1 (-15.7)
per cent.
BALANCE SHEET AND FINANCIAL POSITION
Exel maintained a strong emphasis on cash flow and improved the financial
position. Reinforced measures were taken to reduce operative working capital and
cash flow from business operations for the first half year 2009 was positive at
EUR +6.2 (+0.4) million. Cash flow before financing, but after capital
expenditure, was EUR +6.8 (-0.2) million.
Net interest-bearing liabilities were reduced to EUR 13.9 million compared to
30,7 million June 30, 2008, and the net gearing ratio was improved to 63.5
(178.4) per cent.
Capital expenditure was financed with cash flow from business operations. At the
end of the second quarter the Group's liquid assets stood at EUR 9.6 (5.4)
million.
The Group's consolidated total assets at the end of the financial year were EUR
61.1 (70.3) million.
Equity at the end of the period under review was EUR 22.0 (17.2) million and
equity ratio 35.9 (24.5) per cent. Interest-bearing liabilities amounted to EUR
23.5 (36.1) million, of which short-term liabilities accounted for EUR 4.1
(10.8) million.
CAPITAL EXPENDITURE AND DEPRECIATION
The capital expenditure on fixed assets during the review period amounted to EUR
0.8 (0.7) million.
During the second quarter we sold tangible assets with EUR 0.4 million. The
capital gain was EUR 0.2 million, which is recorded in the other operating
income.
Total depreciation of non-current assets during the period under review amounted
to EUR 1.6 (2.3) million.
PERSONNEL
The number of Exel Group employees on 30 June 2009 was 442 (537), of whom 205
(235) worked in Finland and 237 (302) in other countries. The average number of
personnel during the reporting period was 452 (563). The decrease both in
Finland and abroad is due to the rationalization of personnel in the Finnish,
British and Chinese units and divestments of Exel Sports Brands' Outdoor and
Floorball businesses.
Co-determination negotiations were started in the Finnish units of the Exel
Group due to declining demand and to improve efficiency. The negotiations
concern all the persons working in the Finnish units. The aim is to conclude the
negotiations during week 31.
SHARES AND SHARE CAPITAL
At the end of June 2009, Exel's share capital was EUR 2,141,431.74 and the
number of shares was 11,896,843. There were no changes in the share capital
during the review period.
Based on the closing price on 30 June 2009, the market capitalization totaled
EUR 62.5 (86.8) million. During the reporting period 1,559,432 (719,190) shares
were traded, accounting for 13.1 (6.0) per cent of the average number of shares
outstanding.
The highest share quotation was EUR 6.20 (12.20) and the lowest EUR 2.37 (6.87).
The share price closed at EUR 5.25 (7.30). The average share price during the
review period was EUR 2.90 (9.37).
Exel Composites did not hold any own shares at the end of the period under
review.
ANNUAL GENERAL MEETING
The Annual General Meeting of Exel Plc was held on 16 April 2009. The financial
accounts of the Group were approved and the members of the Board of Directors
and the President were discharged from their liabilities for the financial year
2008. The AGM approved the Board's proposal not to distribute a dividend for the
financial period that ended on 31 December 2008. The AGM decided to amend
Section 1 of the Articles of Association regarding the Company Name and Domicile
and changed the Company name to Exel Composites Oyj in Finnish and Exel
Composites Plc in English. The AGM also decided to amend Section 10 of the
Articles of Association regarding Invitations to Meetings to comply with the
Finnish Corporate Governance Code for Listed Companies.
The AGM also authorized Exel's Board of Directors to acquire the Company's own
shares by using unrestricted equity. The maximum amount to be acquired is
600,000 shares. The AGM also resolved to issue a maximum of 2,400,000 new shares
and convey a maximum of 600,000 own shares. By virtue of the authorization, the
Board of Directors also has the right to grant option rights, convertible bonds
and/or special rights referred to in Chapter 10, Section 1 of the Companies Act.
The authorizations are valid until 16 April 2010.
The AGM confirmed the number of members of the Board of Directors as five and
elected a new Board. Peter Hofvenstam, Göran Jönsson, Vesa Kainu and Heikki
Mairinoja were re-elected and Reima Kerttula was elected as new member to the
Board. At the organizational meeting of the Board of Directors held after the
AGM, the Board of Directors elected Peter Hofvenstam as Chairman.
SHAREHOLDERS
Exel had a total of 1,715 shareholders on 30 June 2009. For the current
shareholder structure, please see www.exelcomposites.com.
Exel Composites received no flagging notifications during the second quarter of
2009.
CHANGES IN GROUP STRUCTURE
Exel Composites and its wholly-owned subsidiary Exel Sports Oy signed draft
terms of merger on 17 June 2009 according to which Exel Sports Oy will merge
into its parent company Exel Composites Plc. The draft terms of merger were
entered in the Finnish Trade Register on 23 June 2009.
According to the draft terms of merger, Exel Sports Oy's assets and liabilities
will be transferred to the parent company Exel Composites Plc without
liquidation. No merger consideration will be paid for the merger, as the parent
company owns all of the shares of the merging company. The merger will not cause
any amendments to Exel Composite Plc's Articles of Association. The reason for
the merger is the clarification of the company structure. The intended date of
registration of the implementation of the merger is 31 December 2009.
NAME CHANGE
Based on the decision of Exel's Annual General Meeting on 16 April 2009, the
change of Exel Plc's business name was entered into the Trade Register on 23
April 2009. The Company's new name is Exel Composites Plc in English and Exel
Composites Oyj in Finnish. Exel will remain the Company's secondary company
name.
CHANGES IN MANAGEMENT
Pertti Kainu was appointed General Manager of Exel Composites China on 15 June
2009.
MAJOR NEAR-TERM RISKS AND UNCERTAINTIES
The most significant near-term business risks are related to market demand. Raw
material price, energy cost and other cost increases may put pressure on
profitability. Currency rate changes, and further intensified price competition
may also have a negative effect on the result. The cost and poor availability of
bank financing may weaken the demand in Exel Composites' market and may increase
the credit loss risks and have an effect on the Exel Group.
OUTLOOK
The pultrusion market is affected by the worldwide business slow-down. A
weakened demand has been observed in several geographical markets and market
segments. Composites product market demand is uncertain and we have prepared for
the weakening trend to continue. This is expected to have a negative impact also
on the margin development.
Due to the volatile situation and poor visibility of the market development, the
Group has implemented comprehensive cost and capital reduction programs to
protect profitability, to manage cash flow and to reduce net debt. Furthermore,
Exel has developed contingency plans to respond promptly to further market
decline.
Due to the market uncertainty and poor visibility, Exel Composites will not give
any profit guidance.
Vantaa, 23 July 2009
EXEL COMPOSITES PLC Vesa Korpimies
Board of Directors President and CEO
It should be noted that certain statements herein which are not historical
facts, including, without limitation, those regarding expectations for general
economic development and the market situation, expectations for company growth,
development and profitability, and statements preceded by “expects” or
“estimates” or similar expressions, are forward-looking statements. These
statements are based on current decisions and plans and currently known facts.
They involve risks and uncertainties which may cause the actual results to
materially differ from the results currently expected by the company.
Further information:
Vesa Korpimies, President and CEO, Exel Composites Plc, tel. +358 50 590 6754,
or email vesa.korpimies@exel.net
Ilkka Silvanto, CFO, Exel Composites Plc, tel. +358 50 598 9553, or email
ilkka.silvanto@exel.fi
DISTRIBUTION
NASDAQ OMX Helsinki Ltd.
Main news media
www.exelcomposites.com
EXEL COMPOSITES IN BRIEF
Exel Composites (www.exelcomposites.com) is a technology company which designs,
manufactures and markets composite profiles and tubes for industrial
applications. The Group is the leading composite profile manufacturer in the
world and concentrates on growing niche segments.
The core of the operations is based on own, internally developed composite
technology, product range based on it and a strong market position in selected
segments with a strong quality and brand image. Profitable growth is pursued by
a relentless search for new applications and development in co-operation with
customers. The personnel's expertise and high level of technology play a major
role in Exel Composites' operations.
Exel Composites Plc share is listed in the Small Cap segment of NASDAQ OMX
Helsinki Ltd.
CONDENSED CONSOLIDATED INCOME STATEMENT
(unaudited)
--------------------------------------------------------------------------------
| EUR | 1.4. - | 1.4.- | Change | 1.1. - | 1.1. - | Change | 1.1. - |
| thousand | 30.6. | 30.6. | , % | 30.6. | 30.6. | , % | 31.12. |
| | 2009 | 2008 | | 2009 | 2008 | | 2008 |
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| Continuin | | | | | | | |
| g | | | | | | | |
| operation | | | | | | | |
| s | | | | | | | |
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| Net sales | 19285 | 22449 | -14.1 | 37814 | 43356 | -12.8 | 84921 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Materials | -7988 | -8559 | 6.7 | -15355 | -16745 | 8.4 | -34576 |
| and | | | | | | | |
| services | | | | | | | |
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| Employee | -4763 | -5393 | 11.7 | -9590 | -11116 | 13.7 | -20650 |
| benefit | | | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Depreciat | -748 | -1362 | 45.1 | -1567 | -2263 | 30.8 | -3967 |
| ion and | | | | | | | |
| impairmen | | | | | | | |
| t | | | | | | | |
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| Other | -3843 | -5220 | 26.4 | -7679 | -8633 | 11.1 | -17417 |
| operating | | | | | | | |
| expenses | | | | | | | |
--------------------------------------------------------------------------------
| Other | 448 | 32 | 1300.0 | 748 | 42 | 1681.0 | 281 |
| operating | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating | 2390 | 1947 | 22.8 | 4391 | 4641 | -5.4 | 8593 |
| profit | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net | 185 | 606 | 69.5 | 238 | -530 | 144.9 | -3003 |
| financial | | | | | | | |
| items | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit | 2575 | 2553 | 0.9 | 4629 | 4111 | 12.6 | 5590 |
| before | | | | | | | |
| tax | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income | -693 | -655 | -5.8 | -1223 | -1065 | -14.8 | -1554 |
| taxes | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/lo | 1882 | 1898 | -0.8 | 3406 | 3046 | 11.8 | 4036 |
| ss for | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
| from | | | | | | | |
| continuin | | | | | | | |
| g | | | | | | | |
| operation | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontin | | | | | | | |
| ued | | | | | | | |
| operation | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| Profit/lo | 80 | -5478 | 101.5 | 213 | -6719 | 103.2 | -6992 |
| ss for | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
| from | | | | | | | |
| discontin | | | | | | | |
| uing | | | | | | | |
| operation | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/lo | 1962 | -3580 | 154.8 | 3619 | -3673 | 198.5 | -2956 |
| ss for | | | | | | | |
| the | | | | | | | |
| period | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | | | | | | | |
| comprehen | | | | | | | |
| sive | | | | | | | |
| income: | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Exchange | 1331 | 76 | 1651.3 | 1663 | -295 | 663.7 | -1513 |
| differenc | | | | | | | |
| es on | | | | | | | |
| translati | | | | | | | |
| ng | | | | | | | |
| foreign | | | | | | | |
| operation | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| Income | 0 | 0 | | 0 | 0 | | 0 |
| tax | | | | | | | |
| relating | | | | | | | |
| to | | | | | | | |
| component | | | | | | | |
| s of | | | | | | | |
| other | | | | | | | |
| comprehen | | | | | | | |
| sive | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other | 1331 | 76 | 1651.3 | 1663 | -295 | 663.7 | -1513 |
| comprehen | | | | | | | |
| sive | | | | | | | |
| income, | | | | | | | |
| net of | | | | | | | |
| tax | | | | | | | |
--------------------------------------------------------------------------------
| Total | 3293 | -3504 | 194.0 | 5283 | -3968 | 233.1 | -4469 |
| comprehen | | | | | | | |
| sive | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/lo | | | | | | | |
| ss | | | | | | | |
| attributa | | | | | | | |
| ble to: | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 1962 | -3580 | 154.8 | 3619 | -3673 | 198.5 | -2956 |
| holders | | | | | | | |
| of the | | | | | | | |
| parent | | | | | | | |
| company | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 0 | | 0 | 0 | | 0 |
| interest | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehen | | | | | | | |
| sive | | | | | | | |
| income | | | | | | | |
--------------------------------------------------------------------------------
| attributa | | | | | | | |
| ble to: | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 3293 | -3504 | 194.0 | 5283 | -3968 | 233.1 | -4469 |
| holders | | | | | | | |
| of the | | | | | | | |
| parent | | | | | | | |
| company | | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 0 | | 0 | 0 | | 0 |
| interest | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings | | | | | | | |
| per | | | | | | | |
| share, | | | | | | | |
| diluted | | | | | | | |
| and | | | | | | | |
| undiluted | | | | | | | |
| , EUR | | | | | | | |
--------------------------------------------------------------------------------
| From | 0.16 | 0.16 | | 0.29 | 0.26 | | 0.34 |
| continuin | | | | | | | |
| g | | | | | | | |
| operation | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| From | 0.01 | -0.46 | | 0.02 | -0.56 | | -0.59 |
| discontin | | | | | | | |
| ued | | | | | | | |
| operation | | | | | | | |
| s | | | | | | | |
--------------------------------------------------------------------------------
| Total | 0.16 | -0.30 | | 0.30 | -0.31 | | -0.25 |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| EUR thousand | 30.6.2009 | 30.6.2008 | Change | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Goodwill | 9,374 | 9,799 | -425 | 8,362 |
--------------------------------------------------------------------------------
| Other intangible assets | 2,539 | 3,085 | -546 | 2,514 |
--------------------------------------------------------------------------------
| Tangible assets | 11,494 | 12,707 | -1,213 | 11,823 |
--------------------------------------------------------------------------------
| Deferred tax assets | 3,186 | 4,628 | -1,442 | 3,207 |
--------------------------------------------------------------------------------
| Other non-current | 60 | 69 | -9 | 68 |
| assets | | | | |
--------------------------------------------------------------------------------
| Non-current assets | 26,653 | 30,289 | -3,635 | 25,975 |
| total | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Inventories | 10,666 | 17,095 | -6,429 | 12,408 |
--------------------------------------------------------------------------------
| Trade and other | 14,223 | 17,450 | -3,227 | 12,856 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Other liquid assets | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Cash at bank and in | 9,571 | 5,431 | 4,140 | 8,035 |
| hand | | | | |
--------------------------------------------------------------------------------
| Current assets total | 34,461 | 39,976 | -5,515 | 33,300 |
--------------------------------------------------------------------------------
| Non-current assets held | 0 | 0 | 0 | 0 |
| for sale | | | | |
--------------------------------------------------------------------------------
| Total assets | 61,114 | 70,265 | -9,151 | 59,275 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Shareholders´ equity | | | | |
--------------------------------------------------------------------------------
| Share capital | 2,141 | 2,141 | 0 | 2,141 |
--------------------------------------------------------------------------------
| Share premium reserve | 0 | 8,488 | -8,488 | 0 |
--------------------------------------------------------------------------------
| Other reserves | 5 | 5 | 0 | 5 |
--------------------------------------------------------------------------------
| Invested unrestricted | 8,488 | 0 | 8,488 | 8,488 |
| equity fund | | | | |
--------------------------------------------------------------------------------
| Translation differences | -730 | -817 | 87 | -2,393 |
--------------------------------------------------------------------------------
| Retained earnings | 8,440 | 11,042 | -2,602 | 11,395 |
--------------------------------------------------------------------------------
| Profit for the period | 3,619 | -3,673 | 7,292 | -2,956 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity | 21,963 | 17,186 | 4,777 | 16,680 |
| attributable to equity | | | | |
| holders of the parent | | | | |
| company | | | | |
--------------------------------------------------------------------------------
| Minority share | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Total equity | 21,963 | 17,186 | 4,777 | 16,680 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 19,319 | 25,331 | -6,012 | 22,057 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-free | 366 | 0 | 366 | 348 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 329 | 1,092 | -763 | 353 |
| liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing | 4,195 | 10,758 | -6,563 | 6,648 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Trade and other | 14,940 | 15,898 | -958 | 13,188 |
| non-current liabilities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total liabilities | 39,151 | 53,079 | -13,928 | 42,594 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total equity and | 61,114 | 70,265 | -9,151 | 59,275 |
| liabilities | | | | |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
--------------------------------------------------------------------------------
| EUR | Share | Share | Othe | Invest | Transl | Retain | Minori | Total |
| thousand | Capit | Premi | r | ed | ation | ed | ty | |
| | al | um | Rese | Unrest | Differ | Earnin | Intere | |
| | | Reser | rves | ricted | ences | gs | st | |
| | | ve | | Equity | | | | |
| | | | | Fund | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2,141 | 8,488 | 5 | 0 | -880 | 13,780 | 0 | 23,533 |
| at 1 | | | | | | | | |
| January | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehe | 0 | 0 | 0 | 0 | -295 | -3,673 | 0 | -3,968 |
| n-sive | | | | | | | | |
| result | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | 0 | -2,379 | | -2,379 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2,141 | 8,488 | 5 | 0 | -1,175 | 7,728 | 0 | 17,186 |
| at 30 | | | | | | | | |
| June | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2,141 | 0 | 5 | 8,488 | -2,393 | 8,440 | 0 | 16,680 |
| at 1st | | | | | | | | |
| January | | | | | | | | |
| 2009 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Comprehe | 0 | 0 | 0 | 0 | 1,663 | 3,619 | 0 | 5,283 |
| n-sive | | | | | | | | |
| result | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | 0 | | | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Balance | 2,141 | 0 | 5 | 8,488 | -730 | 12,059 | 0 | 21,963 |
| at 30 | | | | | | | | |
| June | | | | | | | | |
| 2009 | | | | | | | | |
--------------------------------------------------------------------------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change | 1.1. - |
| | 30.6. | 30.6. | | 31.12. |
| | 2009 | 2008 | | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Operating Activities | | | |
--------------------------------------------------------------------------------
| Profit for the period | 3,619 | -3,673 | 7,292 | -2,956 |
--------------------------------------------------------------------------------
| Adjustments | 907 | 1,234 | -327 | 6,182 |
--------------------------------------------------------------------------------
| Change in working capital | 1,421 | 4,682 | -3,261 | 11,815 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow Generated by | 5,947 | 2,243 | 3,704 | 15,041 |
| Operations | | | | |
--------------------------------------------------------------------------------
| Interest paid | -650 | -953 | 303 | -1,876 |
--------------------------------------------------------------------------------
| Interest received | 126 | 47 | 79 | 259 |
--------------------------------------------------------------------------------
| Other financial items | 825 | 55 | 770 | -763 |
--------------------------------------------------------------------------------
| Income taxes paid | -88 | -1,013 | 925 | -1,572 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net Cash Flow from Operating | 6,160 | 379 | 5,781 | 11,089 |
| Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing Activities | | | |
--------------------------------------------------------------------------------
| Acquisitions | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Disposal of business | 1,000 | 0 | 1000 | 25 |
--------------------------------------------------------------------------------
| Capital expenditure | -819 | -679 | -140 | -1,765 |
--------------------------------------------------------------------------------
| Proceeds from sale of fixed | 410 | 60 | 350 | 90 |
| assets | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Investing | 591 | -619 | 1,210 | -1,650 |
| Activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash Flow from Financing | | | | |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Proceeds from long-term | 0 | 10,000 | -10,000 | 10,000 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Instalments of long-term | -4,752 | -6,297 | 1,545 | -8,973 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Change in short-term loans | -264 | -360 | 96 | -4,563 |
--------------------------------------------------------------------------------
| Instalments of finance lease | -199 | -194 | -5 | -390 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Dividends paid | 0 | -2,379 | 2,379 | -2,379 |
--------------------------------------------------------------------------------
| Net Cash Flow from Financing | -5,215 | 770 | -5,985 | -6,305 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in Liquid Funds | 1,536 | 530 | 1,006 | 3,134 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Liquid funds in the | 8,035 | 4,901 | 3,134 | 4,901 |
| beginning of period | | | | |
--------------------------------------------------------------------------------
| Change in liquid funds | 1,536 | 530 | 1,006 | 3,134 |
--------------------------------------------------------------------------------
| Liquid funds at the end of | 9,571 | 5,431 | 4,140 | 8,035 |
| period | | | | |
--------------------------------------------------------------------------------
QUARTERLY KEY FIGURES
--------------------------------------------------------------------------------
| EUR thousand | II/ | I/ | IV/ | III/ | II/ | I/ |
| | 2009 | 2009 | 2008 | 2008 | 2008 | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Net sales | 19,285 | 18,530 | 20,454 | 21,111 | 22,449 | 20,907 |
--------------------------------------------------------------------------------
| Materials and | -7,988 | -7,347 | -8,822 | -9,008 | -8,559 | -8,186 |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee benefit | -4,763 | -4,827 | -4,282 | -5,252 | -5,393 | -5,723 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -748 | -820 | -819 | -884 | -1,362 | -901 |
| impairment | | | | | | |
--------------------------------------------------------------------------------
| Operating | -3,843 | -3,836 | -4,591 | -4,193 | -5,220 | -3,413 |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| Other operating | 448 | 300 | 229 | 11 | 32 | 10 |
| income | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit | 2,390 | 2,001 | 2,168 | 1,785 | 1,947 | 2,694 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net financial | 185 | 53 | -1,145 | -1,328 | 606 | -1,137 |
| items | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit before | 2,575 | 2,054 | 1,023 | 456 | 2,553 | 1,558 |
| taxes | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -693 | -530 | -401 | -88 | -655 | -410 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for | 1,882 | 1,524 | 622 | 368 | 1,898 | 1,148 |
| the period from | | | | | | |
| continuing | | | | | | |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Profit/loss for | 80 | 133 | -755 | 482 | -5,478 | -1,241 |
| the period from | | | | | | |
| discontinuing | | | | | | |
| activities | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Profit/loss for | 1,962 | 1,658 | -133 | 850 | -3,580 | -92 |
| the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per | 0.16 | 0.14 | -0.01 | 0.07 | -0.30 | -0.01 |
| share, EUR | | | | | | |
--------------------------------------------------------------------------------
| Earnings per | 0.16 | 0.14 | -0.01 | 0.07 | -0.30 | -0.01 |
| share, EUR, | | | | | | |
| diluted | | | | | | |
--------------------------------------------------------------------------------
| Average number | | | | | | |
| of shares, | | | | | | |
| undiluted, | | | | | | |
--------------------------------------------------------------------------------
| 1,000 shares | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 |
--------------------------------------------------------------------------------
| Average number | | | | | | |
| of shares, | | | | | | |
| diluted, | | | | | | |
--------------------------------------------------------------------------------
| 1,000 shares | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 | 11,897 |
--------------------------------------------------------------------------------
| Average number | 452 | 461 | 480 | 499 | 556 | 570 |
| of personnel | | | | | | |
--------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------
| EUR thousand | 30.6.2009 | 30.6.2008 | 31.12.2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| On own behalf | | | |
--------------------------------------------------------------------------------
| Mortgages | 2,783 | 2,783 | 2,783 |
--------------------------------------------------------------------------------
| Corporate mortgages | 12,500 | 12,500 | 12,500 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Lease liabilities | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| - in next 12 months | 573 | 478 | 492 |
--------------------------------------------------------------------------------
| - in next 1-5 years | 1,453 | 2,078 | 1,756 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other commitments | 178 | 480 | 92 |
--------------------------------------------------------------------------------
DERIVATIVE FINANCIAL INSTRUMENTS
--------------------------------------------------------------------------------
| Nominal values | 30.6.2009 | 30.6.2008 | 31.12.2008 |
| EUR thousand | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Foreign exchange derivatives | | | |
--------------------------------------------------------------------------------
| Forward contracts | 716 | 1,091 | 1,770 |
--------------------------------------------------------------------------------
| Purchased currency options | 0 | 3,568 | 0 |
--------------------------------------------------------------------------------
| Sold currency options | 0 | 2,149 | 0 |
--------------------------------------------------------------------------------
| Currency swaps | 0 | 0 | 0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate derivatives | | | |
--------------------------------------------------------------------------------
| Interest rate swaps | 9,369 | 250 | 9,810 |
--------------------------------------------------------------------------------
| Purchased interest rate options | 5,000 | 3,889 | 3,500 |
--------------------------------------------------------------------------------
CONSOLIDATED KEY FIGURES
--------------------------------------------------------------------------------
| EUR thousand | 1.1. - | 1.1. - | Change, % | 1.1. - |
| | 30.6. | 30.6. | | 31.12. |
| | 2009 | 2008 | | 2008 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Continuing operations | | | | |
--------------------------------------------------------------------------------
| Net sales | 37,814 | 43,356 | -12.8 | 84,921 |
--------------------------------------------------------------------------------
| Operating profit | 4,391 | 4,641 | -5.4 | 8,593 |
--------------------------------------------------------------------------------
| % of net sales | 11.6 | 10.7 | | 10.1 |
--------------------------------------------------------------------------------
| Profit before tax | 4,629 | 4,111 | 12.6 | 5,590 |
--------------------------------------------------------------------------------
| % of net sales | 12.2 | 9.5 | | 6.6 |
--------------------------------------------------------------------------------
| Profit for the period | 3,406 | 3,046 | 11.8 | 4,036 |
--------------------------------------------------------------------------------
| % of net sales | 9.0 | 7.0 | | 4.8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shareholders´ equity | 21,963 | 17,186 | 27.8 | 16,680 |
--------------------------------------------------------------------------------
| Interest-bearing liabilities | 23,514 | 36,089 | -34.8 | 28,706 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 9,571 | 5,431 | 76.2 | 8,035 |
--------------------------------------------------------------------------------
| Net interest-bearing | 13,943 | 30,658 | -54.5 | 20,671 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Capital employed | 45,477 | 53,275 | --14.6 | 45,386 |
--------------------------------------------------------------------------------
| Return on equity, % | 37.5 | -36.1 | | -14.7 |
--------------------------------------------------------------------------------
| Return on capital employed, | 20.8 | -15.7 | | 0.0 |
| % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 35.9 | 24.5 | | 28.2 |
--------------------------------------------------------------------------------
| Net gearing, % | 63.5 | 178.4 | | 123.9 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital expenditure | 819 | 679 | 20.6 | 1,765 |
--------------------------------------------------------------------------------
| % of sales | 2,2 | 1.6 | | 2.1 |
--------------------------------------------------------------------------------
| Research and development | 781 | 1,471 | -46.9 | 1,918 |
| costs | | | | |
--------------------------------------------------------------------------------
| % of net sales | 2.1 | 3.4 | | 2.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Order stock | 12,241 | 14,793 | -17.3 | 11,650 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share, EUR | 0.30 | -0.31 | | -0.25 |
--------------------------------------------------------------------------------
| Earnings per share, EUR, | 0.30 | -0.31 | | -0.25 |
| diluted | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 1.85 | 1.44 | 28.5 | 1.40 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of shares | | | | |
--------------------------------------------------------------------------------
| - cumulative | 11,897 | 11,897 | 0.0 | 11,897 |
--------------------------------------------------------------------------------
| - cumulative, diluted | 11,897 | 11,897 | 0.0 | 11,897 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average number of employees | 453 | 563 | -19.7 | 527 |
--------------------------------------------------------------------------------
