Exel Composites Plc’s Financial Statements Release 2017: “Revenue and operating profit increased significantly”
EXEL COMPOSITES PLC FINANCIAL STATEMENTS RELEASE 16 FEBRUARY 2018 at 09:00 EET
Q4 2017 in brief
- Order intake increased by 16.9% to EUR 21.4 million (Q4 2016: 18.3).
- Revenue increased by 17.9% to EUR 22.4 million (19.0).
- Adjusted operating profit improved to EUR 1.3 million (0.7), which is 5.9% of revenue (3.7%).
- Net cash flow from operating activities was EUR 2.7 million (1.2).
- Earnings per share amounted to EUR 0.08 (-0.09).
Q1-Q4 2017 in brief
- Order intake increased by 15.7% to EUR 86.5 million (74.8).
- Revenue increased by 18.0% to EUR 86.3 million (73.1).
- Adjusted operating profit amounted to EUR 6.3 million (2.6), which is 7.3% of revenue (3.6%).
- Net cash flow from operating activities was EUR 4.9 million (3.1).
- Earnings per share amounted to EUR 0.36 (0.02).
Dividend proposal
The Board of Directors proposes that a dividend of EUR 0.30 (0.10) per share be paid for the financial year 2017.
Outlook for the full year 2018
Exel Composites expects revenue as well as adjusted operating profit to increase in 2018 compared to 2017.
President and CEO, Riku Kytömäki
The year 2017 was in many ways a very good year for Exel Composites. I am delighted to say that both revenue and adjusted operating profit increased significantly compared to 2016. This is first and foremost a result of our strategic efforts, improved operational efficiency and continued tight cost control, but also reflects signs towards a general market recovery.
All our markets and customer segments performed well in the fourth quarter as well as in the twelve month review period. From the customer segment point of view, Industrial Applications continued to drive revenue growth. Construction & Infrastructure also delivered significant growth, supported by an increasing number of industrial investments and projects. In terms of regions and markets, China and the Asia-Pacific (APAC) region contributed most to revenue growth. In addition to significant organic growth, the Nanjing Jianhui business, which was acquired in April 2017, had a substantial positive impact on APAC revenue. The acquired business has performed according to expectations and has clearly strengthened Exel Composites’ position in China and APAC in 2017. Our main market area, Europe, also continued to deliver stable revenue growth.
In 2017 we were able to improve our adjusted operating profit significantly after two years of decline. The main factors were increased revenue from key customers in Europe in combination with further operational efficiency improvements. In addition, our focused efforts on new customer acquisition and new business especially in China were important contributors to the operating profit improvement. In the APAC region the acquisition of Nanjing Jianhui had a positive impact on both revenue and profitability. The downsizing of the Australian unit was completed in 2017 and manufacturing operations were stopped. This improved the overall profitability of the region and of the Group.
At the end of 2017 we also confirmed our overall strategic direction for the next three years. We will have an increased focus on high growth segments. We believe high growth can be found especially in construction, transportation, energy and telecommunications segments over the next few years. Within these segments global megatrends such as urbanization and sustainability increase demand for advanced composites. Our ambition is to leverage on these trends with attractive products that fit the demand.
Consolidated key figures
| EUR thousand | 1.10.–31.12. 2017 | 1.10.–31.12. 2016 | Change, % | 1.1–31.12. 2017 | 1.1.–31.12. 2016 | Change, % |
| Order intake | 21,433 | 18,334 | 16.9 | 86,531 | 74,778 | 15.7 |
| Order backlog ¹ | 17,126 | 16,702 | 2.5 | 17,126 | 16,702 | 2.5 |
| Revenue | 22,414 | 19,009 | 17.9 | 86,255 | 73,079 | 18.0 |
| Operating profit | 1,389 | -1,209 | 214.8 | 6,081 | 649 | 837.5 |
| % of revenue | 6.2 | -6.4 | 7.1 | 0.9 | ||
| Adjusted operating profit ² | 1,327 | 708 | 87.5 | 6,319 | 2,621 | 141.1 |
| % of revenue | 5.9 | 3.7 | 7.3 | 3.6 | ||
| Profit for the period | 956 | -1,065 | 189.8 | 4,212 | 198 | 2,025.4 |
| Net cash flow from operating activities | 2,708 | 1,157 | 134.1 | 4,856 | 3,129 | 55.2 |
| Return on capital employed, % | 12.3 | -12.5 | 14.8 | 1.7 | ||
| Net gearing, % | 30.3 | 12.2 | 30.3 | 12.2 | ||
| Earnings per share | 0.08 | -0.09 | 0.36 | 0.02 | ||
| Equity per share, EUR | 2.44 | 2.27 | 7.4 | 2.43 | 2.27 | 7.0 |
| Employees on average | 562 | 457 | 22.9 | 532 | 479 | 11.0 |
| Employees at end of period | 568 | 455 | 24.8 | 568 | 455 | 24.8 |
¹ As per the end of the period.
² Excluding material items affecting comparability, such as restructuring costs, impairment losses and reversals, and costs related to planned or realized business acquisitions or disposals. For more information, please refer to the paragraph “Change in Exel Composites’ financial reporting terminology” of the Half-year Financial Report published on 21 July 2016.
Financial reporting and Annual General Meeting 2018
Exel Composites publishes the following reports in 2018:
- Financial Statements Release 2017: 16 February 2018
- Business Review January - March: 9 May 2018
- Half Year Financial Report January - June: 24 July 2018
- Business Review January - September: 31 October 2018
Annual Financial Report, Corporate Governance Statement and Remuneration Statement for 2017 will be published on Thursday 1 March 2018 in electronic format at the company’s website www.exelcomposites.com.
The Annual General Meeting will be held on Thursday 22 March 2018 at 10:00 at Radisson Blu Royal Hotel at the address Runeberginkatu 2, Helsinki, Finland.
Financial results briefing
Exel Composites will hold a financial results briefing regarding the financial statements on Friday 16 February 2018 at 12:30 at Scandic Hotel Simonkenttä’s Roba meeting room (address Simonkatu 9, Helsinki, Finland).
Exel Composites’ Financial Statements Release January – December 2017 is available in full in pdf format as an attachment to this release. The report and the related presentation shall also be available at the company’s website under the Investor section.
Vantaa, 16 February 2018
Exel Composites Plc
Board of Directors
For further information, please contact:
Riku Kytömäki, President and CEO
tel. +358 50 511 8288
riku.kytomaki@exelcomposites.com
Mikko Kettunen, CFO
tel. +358 50 347 7462
mikko.kettunen@exelcomposites.com
Distribution
Nasdaq Helsinki Ltd
Main news media
www.exelcomposites.com
Exel Composites in brief
Exel Composites (www.exelcomposites.com) is a leading composite technology company that designs, manufactures and markets composite products and solutions for demanding applications. Exel Composites provides superior customer experience through continuous innovation, world-class operations and long-term partnerships.
The core of the operations is based on own, internally developed composite technology, product range based on it and 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 employees' expertise and high level of technology play a major role in Exel Composites’ operations. Exel Composites Plc share is listed in Nasdaq Helsinki Ltd.