ETTEPLAN OYJ: INTERIM REPORT 1 JANUARY - 31 MARCH 2005
ETTEPLAN OYJ STOCK EXCHANGE RELEASE 3 MAY 2005 AT 10.00 A.M. 1(8)
INTERIM REPORT 1 JANUARY - 31 MARCH 2005
ETTEPLAN'S REVENUE GROWS BY 33 %; OPERATING PROFIT EUR 1,0 MILLION
- Consolidated revenue: EUR 19,4 million (14,6 million)
- Operating profit: EUR 1,0 million (1,0 million)
- Earnings per share: EUR 0,04 (0,06)
- Personnel: 1 229 employees (942)
(Figures in parenthesis refer to the corresponding period of
the previous year, unless otherwise indicated. The impact of
share split has been taken into account.)
The Etteplan Group's revenue grew significantly, both organically
and due to the expansion of business operations. The company's
international presence continued to strengthen and it has
bolstered its position particularly in Sweden.
As a consequence of structural changes in automotive industry
in Italy as well as rearrangements in key customers' operations
in Germany the assignments of these customers were not started
as expected due to which the operating profit fell behind set
targets. In these units the company has carried out corrective
actions. The impacts of these actions to the result will be
seen in the second quarter. In the main market area in Finland
and in Sweden the demand for industrial design has remained strong.
Revenue and result
Etteplan's revenue rose to EUR 19.4 million (EUR 14.6 million).
Operating profit amounted to EUR 1.0 million (EUR 1.0 million),
representing 5.0% of revenue (7.0%). Profit for the period before
extraordinary items and taxes was EUR 1.0 million (EUR 1.0 million).
The net profit amounted to EUR 0.5 million (EUR 0.5 million).
Earnings per share came in at EUR 0.06 (EUR 0.06). Equity per
share grew by 31.4% to EUR 1.59 (EUR 1.21).
Return on investment was weaker than in the comparative period
being 22,4% (28.1%).
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 in two segments: Delivery Design and
Product Development.
The Delivery Design segment provides services for the design
of machinery, 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
electro-magnetic 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 first quarter
Etteplan Oyj changed over to IFRS in its financial statements
as from the beginning of 2005. The company released its
opening balance sheet dated 1 January 2004 in a separate
ulletin on 23 February 2005. The IFRS profit and loss account
and balance sheet for 2004 were published on 22 April 2005.
In February, Etteplan Oyj acquired a majority stake in the
Swedish company ProTang AB. This company, which was established
in 1995, offers mechanical and equipment design for the
mechanical engineering industry, plant design as well as
maintenance and rationalization design for nuclear power plants.
The company has revenue of over EUR 12 million and 160 employees.
It has four business locations in Sweden. Etteplan Oyj increased
its share capital in accordance with the decision made by
Etteplan Oyj's Board of Directors and the authorization granted
by the Annual General Meeting to the Board of Directors on
30 March 2004 for the purpose of acquiring a 70% stake in
ProTang AB. The share capital was increased by 362,886 shares
through a targeted share issue.
In March, Etteplan Oyj increased its share capital on the basis
of warrant subscriptions in 2004 in connection with the company's
stock option programme I 2000 - 2005. The increase in the share
capital amounted to 12,000 shares. Etteplan Oyj increased its
share capital further in April on the basis of warrant
subscriptions in January 2005 in connection with the company's
stock option programme I 2000 - 2005. The increase in the share
capital amounted to 36,260 shares.
At Etteplan Oyj's Annual General Meeting in March, the Board of
Directors was authorized:
- to decide, within one year of the Annual General Meeting, on
the floating of one or more issues of convertible bonds and/or
the granting of stock options and/or to decide on increasing
the share capital through a rights issue in one or more
instalments such that, in the rights issue or the issue of
convertible bonds or stock options, the Board of Directors'
total unexercised, valid authorizations - in terms of both
total increases and aggregate voting rights conferred by the
shares - shall not exceed one-fifth of the registered share
capital and total number of voting rights conferred by the
shares on the date on which the Annual General Meeting granted
authorization and the Board of Directors resolved to increase
the share capital. Pursuant to the authorization, the company's
share capital may be increased by a maximum of EUR 86,969.
- to decide on buying back own shares in one or more
instalments with distributable funds in disproportion to
shareholders' existing holdings. The authorization includes
the right to decide on the buyback of the company's shares
in public trading at the applicable quoted price to the
effect that, after the share buyback, the total accounting
countervalue of the purchased shares and the voting rights
conferred by them shall not exceed five (5) per cent of the
company's share capital and the total number of voting rights
conferred by all the shares.
- to decide on transferring the company's own shares thus
bought back in one or several instalments. The authorization
granted to the Board of Directors comprises the right to transfer
shares such that the total accounting countervalue of the shares
to be transferred and the votes conferred by them shall not exceed
five (5) per cent of the company's share capital and the total
voting rights conferred by the shares.
In addition, the Annual General Meeting made the following
decisions:
- a resolution to increase the company's share capital by
EUR 1,739,380.00 through a bonus issue.
- a resolution to decrease the accounting countervalue
of the shares without decreasing the share capital of
the company (split).
- a resolution to amend Articles 3 and 4 of the Articles
of Association.
Etteplan Oyj's share split was registered on March 31, 2005.
The split came into effect in the Helsinki Stock Exchange's
SAXESS trading system on 1 April 2005. The shares have been
split in trading as from that date.
Personnel
The operations and number of personnel of the Etteplan Group
have grown steadily. During the review period, the Group
employed an average of 1,167 people (926). At the end of
the period, the payroll numbered 1,229 employees (942).
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.
463 people worked for the Group abroad.
Capital expenditures and financing
The Group's total capital expenditures amounted to EUR 3.8
million (EUR 0.5 million). The capital expenditures were
primarily earmarked for the expansion of business operations.
Etteplan's financial position remained strong. Total assets at
31 March 2005 stood at EUR 33.7 million (EUR 27.0 million),
of which cash and cash equivalents as well as securities held
as financial fixed assets totalled EUR 6.7 million
(EUR 7.3 million). The Group's interest-bearing liabilities
at the end of the period totalled EUR 3.1 million
(EUR 0.9 million). The equity ratio was 46.8% (46.5%).
Liquidity was good throughout the report period and the
operating cash flow was EUR 1,7 million.
Own shares owned by the company
On 31 March 2005, the company held 200 of its own shares
(treasury shares), representing 0.002% of the shares outstanding.
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.
Outlook for the future
The company's revenue is expected to increase also in the present
quarter thanks to the expansion of business operations and organic
growth. Demand for investment and product development projects is
expected to remain good in the main market areas also during the
present quarter. Good preconditions for improved profitability in
the Central Europe exist due to secured new customerships and
other taken actions.
The company has initiated steps for transferring trading in the
company's shares to the Main List of the Helsinki Stock Exchange.
It is expected that the transfer will take place in May.
The information presented herein has not been audited.
Hollola, 3 May, 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 Pia Björk,
tel. +358 3 872 9012, GSM +358 400 241 815.
DISTRIBUTION: Helsinki Exchanges
Principal media
www.etteplan.com
CONSOLIDATED BALANCE SHEET
(EUR 1 000) 31.3.2005 31.3.2004 31.12.2004
ASSETS
Non-current assets
Goodwill 503 0 8
Intangible assets 7 764 3 990 5 052
Property, plant and equipment 3 967 3 998 3 904
Investments available for sales 52 45 95
Non-current assets, total 12 287 8 033 9 059
Current assets
Trade receivables and other
receivables 14 733 11 643 12 201
Investments available for sales 234 253 234
Cash and cash equivalents 6 442 7 068 6 601
Current assets, total 21 409 18 964 19 035
ASSETS TOTAL 33 695 26 997 28 095
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Share capital 2 274 427 434
Share premium account 5 262 5 058 5 434
Own shares 0 0 0
Translation difference -1 48 -19
Retained earnings 6 400 4 538 4 532
Net profit or loss for the period 521 519 3 211
Shareholders' equity, total 14 456 10 590 13 592
Minority interest 1 230 1 879 1 208
Non-current liabilities
Non-current interest-bearing
liabilities 1 954 763 1 342
Non-current liabilities, total 1 954 763 1 342
Current liabilities
Deferred tax liability 158 205 166
Pension liability 13 134 13
Instalment of non-current
liabilities 1 028 154 28
Current interest-bearing
liabilities 68 13 28
Trade and other payables 14 789 13 260 11 718
Current liabilities, total 16 055 13 766 11 952
Liabilities, total 18 009 14 529 13 295
SHAREHOLDERS' EQUITY AND
LIABILITIES, TOTAL 33 695 26 997 28 095
CONSOLIDATED PROFIT AND LOSS ACCOUNT
(EUR 1 000) 1-3/2005 1-3/2004 1-12/2004
Revenue 19 446 14 573 61 967
Other operating income 276 8 121
Materials and services -725 -263 -1 926
Staff costs -14 798 -10 771 -44 036
Other operating expenses -2 767 -2 135 -9 053
Depreciation and amortization
expenses -464 -398 -1 630
Operating profit 968 1 015 5 443
Net financial expenses -23 -2 42
Profit before taxes and
minority interest 945 1 012 5 485
Income taxes -360 -348 -1 686
Minority interest -65 -146 -588
Net profit for the financial
period 521 519 3 211
KEY FIGURES
1-3/2005 1-3/2004 1-12/2004 Changes
for prev.
year
Revenue 19 446 14 573 61 967 33.4%
Operating profit 968 1 015 5 443 -4.6%
Operating profit, % 5.0 7.0 8.8
Profit before taxes and
minority interest 945 1 012 5 485 -6.6%
Net profit for the period 521 519 3 211 0.4%
Return on investment, % 22.4 28.1 34.7
Return on equity, % 15.4 19.8 25.9
Equity ratio, % 46.8 46.5 52.9
Gross interest-bearing
loans 3 050 930 1 398 228.0%
Net gearing, % -23.1 -52 -37
Balance sheet total 33 695 26 997 28 095 24.8%
Gross investments 3 764 483 2 384 678.9%
Earnings per share 0.06 0.06 0.75 -4.6%
Equity per share 1.59 1.21 3.13 31.4%
Personnel at the end
of the period 1 229 942 1 049 30.5%
Personnel, average 1 167 926 965 26.0%
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1 000) 1-3/2005 1-3/2004 1-12/2004
OPERATING CASH FLOW
Cash receipts from customers 17 183 13 737 60 675
Other operating income 34 8 121
Operating expenses paid 15 047 12 158 54 944
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES 2 170 1 587 5 852
Interest and payment paid for
financial expenses 33 13 53
Interest received 10 10 90
Dividend received 1 0 6
Income taxes paid 434 331 1 662
OPERATING CASH FLOW (A) 1 713 1 254 4 234
INVESTMENT CASH FLOW
Investment in tangible and
intangible assets 3 918 483 2 363
Sales of tangible and
intangible assets 154 0 371
Investments to other investments 0 0 21
INVESTMENT CASH FLOW (B) -3 764 -483 -2 013
FINANCING CASH FLOW
Rights issue 1 668 0 0
Short-term loans, decrease -301 0 105
Long-term loans, increase 526 0 230
Long-term loans, decrease 0 309 0
Dividend paid and other
profit distribution 0 0 2 351
FINANCING CASH FLOW (C) 1 892 -309 -2 225
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/ DECREASE (-) -159 462 -5
ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD 6 601 6 606 6 606
ASSETS AT THE END
OF THE FINANCIAL PERIOD 6 442 7 068 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 Total
capital premium lation earnings
account differ.
Shareholders' equity
on 1.1.2005 434 5 434 -19 7 743 13 592
Dividends paid -1 303 -1 303
Share issue 100 100
Increase in share
capital 1 740 -354 0 1 386
Options 182 0 182
Net profit for the
financial period 521 521
Translation difference -22 -22
Shareholders' equity
on 31.3.2005 2 274 5 262 -41 6 961 14 456
