Exel Composites Plc's interim report for 1 January - 30 June 2011
EXEL COMPOSITES PLC STOCK EXCHANGE RELEASE 22.7.2011 at 10.00 1 (13)
EXEL COMPOSITES PLC’S INTERIM REPORT FOR 1 JANUARY – 30 JUNE 2011
April – June 2011 highlights
- Net sales increased to EUR 23.4 (19.2) million, up by 21.9 per cent on the previous year
- Operating profit was EUR 3.6 (2.7) million, representing 15.5 (13.8) per cent of net sales
- Net operative cash flow was positive at EUR +2.3 (+3.3) million
- Fully diluted earnings per share were EUR 0.22 (0.16)
January - June 2011 highlights
- Net sales increased to EUR 44.9 (34.8) million in the first six months of 2011, up by 28.9 per cent on the corresponding period in 2010
- Operating profit was EUR 6.8 (3.6) million representing 15.1 (10.4) per cent of net sales
- Net operative cash flow was positive at EUR +4.0(+4.1) million
- Fully diluted earnings per share were EUR 0.41 (0.22)
Outlook for 2011
Demand in the pultrusion industry has improved gradually. We believe that Exel Composites is well positioned to take advantage of the growth opportunities as the markets recover. As a result of improved profitability, good cash flow generation and reduced debt level we believe in Exel Composites’ long-term performance. Exel Composites recorded a strong first half of 2011, but maintains its cautious stance for the full year 2011, since market uncertainties persist.
Vesa Korpimies, President and CEO:
“Strong growth continued in the second quarter of 2011. The Group’s net sales for the second quarter of 2011 increased by 21.9 per cent to EUR 23.4 (19.2) million compared to the corresponding period in 2010. Strong market demand continued in the telecommunications and machine industry also during the second quarter of 2011. Building and infrastructure sales were supported by a recovery in airport products from the previous year's low levels as well as a positive trend in windows and doors driven by consistent sales efforts. Further support to quarterly sales was provided by the electrical industry following recovered demand most notably in the electrical machine industry and other electrical applications.
We made a decision to invest in five new production lines using advanced pultrusion technology to secure future growth. Exel also invested more resources in sales and customer-oriented product development and will continue to strengthen the organization to ensure future growth.
The operating profit increased also in the second quarter of 2011 to EUR 3.6 (2.7) million. The measures taken in the Chinese and British units to improve efficiency continued to show positive results. The turnaround projects will continue throughout 2011. Raw material costs have continued to increase. Exel Composites has taken action to mitigate the effects.
Return on capital employed improved to 32.5 per cent compared to 17.5 per cent in the corresponding period last year.
We are well-positioned to capitalize on growth opportunities as the markets gradually recover. Exel Composites will continue its strategy of profitable growth in 2011.”
CONSOLIDATED KEY FIGURES, EUR million
(unaudited)
| 1.4.– 30.6. 2011 | 1.4.–30.6. 2010 | Change % | 1.1.-30.6. 2011 | 1.1.-30.6. 2010 | Change % | 1.1.– 31.12. 2010 | |
| Net sales | 23.4 | 19.2 | 21.9 | 44.9 | 34.8 | 28.9 | 72.9 |
| Operating profit | 3.6 | 2.7 | 36.8 | 6.8 | 3.6 | 86.1 | 9.4 |
| % of net sales | 15.5 | 13.8 | 15.1 | 10.4 | 12.9 | ||
| Profit for the period | 2.6 | 1.9 | 33.1 | 4.9 | 2.6 | 87.8 | 6.8 |
| Shareholders’ equity | 30.8 | 27.5 | 12.0 | 30.8 | 27.5 | 12.0 | 32.5 |
| Net interest-bearing liabilities | 2.1 | 5.6 | -62.9 | 2.1 | 5.6 | -62.9 | -1.4 |
| Capital employed | 41.0 | 43.2 | -5.0 | 41.0 | 43.2 | -5.0 | 42.7 |
| Return on equity, % | 31.8 | 29.7 | | 31.0 | 19.7 | 23.3 | |
| Return on capital employed, % | 34.2 | 26.3 | 32.5 | 17.5 | 21.8 | ||
| Equity ratio, % | 54.0 | 47.2 | 54.0 | 47.2 | 57.4 | ||
| Net gearing, % | 6.8 | 20.4 | 6.8 | 20.4 | -4.3 | ||
| Earnings per share, EUR | 0.22 | 0.16 | 0.41 | 0.22 | 0.57 | ||
| Earnings per share, diluted, EUR | 0.22 | 0.16 | 0.41 | 0.22 | 0.57 | ||
| Equity per share, EUR | 2.59 | 2.31 | 2.59 | 2.31 | 2.73 |
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 2010 financial statements.
FINANCIAL PERFORMANCE
1 April – 30 June 2011
The Group’s net sales in April - June 2011 increased on the corresponding period last year and were EUR 23.4 (19.2) million.
Market conditions have continued to improve. Strong market demand continued in the telecommunications and machine industry also during the second quarter of 2011. Building and infrastructure sales were supported by a recovery in airport products from the previous year's low levels as well as a positive trend in windows and doors driven by consistent sales efforts. Further support to quarterly sales was provided by the electrical industry following recovered demand most notably in the electrical machine industry and other electrical applications.
We made a decision to invest in five new production lines using advanced pultrusion technology to secure future growth. Exel also invested more resources in sales and customer-oriented product development and will continue to strengthen the organization to ensure future growth.
Exel Composites’ operating profit for the second quarter of 2011 was EUR 3.6 (2.7) million, or 15.5 (13.8) per cent of net sales. The measures taken in the Chinese and British units to improve efficiency initiated in the last quarter of 2010 continued to show positive results. The turnaround projects will continue throughout 2011.
1 January – 30 June 2011
The Group’s net sales in January - June 2011 increased by 28.9 per cent to EUR 44.9 (34.8) million compared to the corresponding period in 2010.
Market conditions have continued to improve. In the first half of 2011 demand has increased especially in the machine industry and the telecommunication market segment.
Raw material costs have continued to increase. Exel Composites has taken action to mitigate the effects and part of the increase has been transferred into product prices.
The European Commission’s anti-dumping tariff on imported Chinese glass fiber was lowered from the original 43.6 per cent to 13.8 per cent in mid-March 2011. Exel Composites has increased product prices, employed alternative sourcing opportunities and increased production in its Chinese operations in Nanjing to reduce the impact of the tariff.
Exel Composites’ operating profit in January – June 2011 increased by 86.1 per cent to EUR 6.8 (3.6) million compared to the corresponding period last year. Operating profit as a percentage of net sales was 15.1 (10.4) per cent. In 2010 other operating expenses included one-off restructuring costs of Floorball business amounting to EUR 1.2 million. Other operating income included one-off licensing income of EUR 1.2 million. During the first half of 2011 other operating income included EUR 0.2 million of one-off items.
The Group’s net financial expenses in January – June 2011 were EUR -0.1 (-0.1) million. The Group’s profit before taxes was EUR 6.6 (3.5) million and profit after taxes EUR 4.9 (2.6) million.
Earnings per share improved to EUR 0.41 (0.22). Return on capital employed was 32.5 (17.5) per cent and return on equity 31.0 (19.7) per cent.
BALANCE SHEET AND FINANCIAL POSITION
Cash flow from business operations was positive at EUR 4.0 (4.1) million. Cash flow before financing, but after capital expenditure, amounted to EUR 2.5 (3.4) million.
Capital expenditure was financed with cash flow from business operations. At the end of the period under review, the Group’s liquid assets stood at EUR 8.1 (10.0) million.
The dividend for 2010 resolved by the Annual General Meeting on 6 April 2011 totaling EUR 5.9 (3.0) million was paid during the period under review.
The Group’s consolidated total assets at the end of the review period were EUR 57.1 (58.3) million.
Interest-bearing liabilities amounted to EUR 10.2 (15.7) million, of which short-term liabilities accounted for EUR 0.0 (7.5) million. Net interest-bearing liabilities amounted to EUR 2.1 (5.6) million.
Equity at the end of the period under review was EUR 30.8 (27.5) million and equity ratio 54.0 (47.2) per cent. The net gearing ratio was 6.8 (20.4) per cent.
CAPITAL EXPENDITURE AND DEPRECIATION
The capital expenditure on fixed assets amounted to EUR 1.5 (0.7) million.
Total depreciation of non-current assets during the period under review amounted to EUR 1.3 (1.4) million.
PERSONNEL
The number of Exel Composites Group employees on 30 June 2011 was 438 (396), of whom 205 (179) worked in Finland and 233 (217) in other countries. The average number of personnel during the reporting period was 424 (403). The increase both in Finland and abroad is due to the increased sales volumes.
SHARES AND SHARE CAPITAL
At the end of June 2011, Exel Composites’ 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 2011, the market capitalization totaled EUR 96.6 (61.3) million. During the reporting period 649,317 (1,381,356) shares were traded, accounting for 5.5 (11.6) per cent of the average number of shares outstanding.
The highest share quotation was EUR 9.40 (6.79) and the lowest EUR 6.85 (5.00). The share price closed at EUR 8.12 (5.15). The average share price during the review period was EUR 8.29 (5.93).
Exel Composites did not hold any of its own shares during the period under review.
SHAREHOLDERS AND DISCLOSURES
Exel Composites had a total of 2,566 shareholders on 30 June 2011. Information on Exel Composites’ shareholders is available on the Company website at www.exelcomposites.com.
Exel Composites received a flagging notification on 20 May 2011 according to which the holdings of Veikko Laine Oy had fallen under 5 per cent of the voting rights and share capital in Exel Composites Plc on 20 May 2011. Before the transaction the holdings of Veikko Laine Oy were 595,796 shares or 5.95 per cent of Exel Composites’ share capital and votes. After the transaction Veikko Laine Oy’s ownership was 395,796 shares or 3.33 per cent.
ANNUAL GENERAL MEETING
The Annual General Meeting of Exel Composites Plc was held on 6 April 2011. 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 2010. The AGM approved the Board of Directors’ proposal to distribute a dividend of EUR 0.50 per share for the financial period that ended on 31 December 2010.
The Annual General Meeting authorized the 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 authorization is valid until the next Annual General Meeting.
The AGM confirmed the number of the members of the Board of Directors as five and elected a new Board. The following members of the Board of Directors were re-elected: Peter Hofvenstam, Göran Jönsson, Reima Kerttula and Heikki Mairinoja. Heikki Hiltunen was elected as a new member of the Board of Directors. At the formative meeting of the Board of Directors held after the AGM, the Board of Directors elected from among its members Peter Hofvenstam as its Chairman.
EVENTS AFTER THE PERIOD UNDER REVIEW
Exel Composites ensured in July 2011 a new committed 3-year revolving credit facility of EUR 20 million to refinance current credit facilities and to ensure the financing of growth.
Exel Composites has entered into trademark license agreement with E-Sports Group in relation to Exel’s pole products. The agreement will be in effect from 1 August 2011.
MAJOR NEAR-TERM RISKS AND UNCERTAINTIES
The most significant near-term business risks are related to the general economic development, government regulations and a possible new financial crisis in the Euro area as well as to market demand in certain market segments. Raw material prices, energy cost and other cost increases may continue and put pressure on profitability. The European Commission’s anti-dumping tariffs imposed on Chinese glass fiber will have a negative effect on the profitability in case the rising costs of raw materials cannot be transferred in full to product prices. If the measures taken in the Chinese and British units to improve efficiency prove to be unsuccessful, this may have an effect on the result of the company. Currency rate changes, price competition and alternative competing materials may also have a negative effect on the result. The availability and cost of financing may continue to have an effect on the demand and increase the risk of credit losses.
OUTLOOK FOR 2011
Demand in the pultrusion industry has improved gradually. We believe that Exel Composites is well positioned to take advantage of the growth opportunities as the markets recover. As a result of improved profitability, good cash flow generation and reduced debt level we believe in Exel Composites’ long-term performance. Exel Composites recorded a strong first half of 2011, but maintains its cautious stance for the full year 2011, since market uncertainties persist.
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT
(unaudited)
| EUR thousand | 1.4.–30.6. 2011 | 1.4.-30.6. 2010 | Change % | 1.1.-30.6. 2011 | 1.1.-30.6. 2010 | Change % | 1.1.–31.12. 2010 |
| Net sales | 23,367 | 19,173 | 21.9 | 44,915 | 34,843 | 28.9 | 72,872 |
| Materials and services | -9,295 | -7,189 | -29.3 | -17,673 | -13,252 | -33.4 | -28,403 |
| Employee benefit expenses | -5,672 | -4,892 | -15.9 | -10,894 | -9,274 | -17.5 | -18,833 |
| Deprecia-tion and impairment | -663 | -763 | 13.1 | -1,347 | -1,438 | 6.3 | -2,880 |
| Other operating expenses | -4,424 | -4,229 | -4.6 | -8,686 | -9,052 | 4.0 | -16,808 |
| Other operating income | 317 | 553 | -42.7 | 452 | 1,809 | -75.0 | 3,481 |
| Operating profit | 3,630 | 2,653 | 36.8 | 6,768 | 3,636 | 86.1 | 9,430 |
| Net financial items | -104 | -10 | -940.0 | -127 | -96 | -32.3 | -493 |
| Profit before tax | 3,527 | 2,643 | 33.4 | 6,641 | 3,540 | 87.6 | 8,936 |
| Income taxes | -948 | -706 | -34.3 | -1,729 | -925 | -86.9 | -2,165 |
| Profit/ loss for the period | 2,579 | 1,937 | 33.1 | 4,912 | 2,615 | 87.8 | 6,772 |
| Other comprehensive income: | | ||||||
| Exchange differences on translating foreign operations | 172 | 1,008 | -82.9 | -696 | 2,303 | -130.2 | 3,411 |
| Other comprehensive income, net of tax | 172 | 1,008 | -82.9 | -696 | 2,303 | -130.2 | 3,411 |
| Total comprehen-sive income | 2,751 | 2,946 | -6.6 | 4,216 | 4,918 | -14.3 | 10,183 |
| Profit/ loss attribu-table to: | |||||||
| Equity holders of the parent company | 2,579 | 1,937 | 33.1 | 4,912 | 2,615 | 87.8 | 6,772 |
| Comprehen-sive income | |||||||
| attribu-table to: | |||||||
| Equity holders of the parent company | 2,751 | 2,946 | -6.6 | 4,216 | 4,918 | -14.3 | 10,183 |
| Earnings per share, diluted and undiluted, EUR | 0.22 | 0.16 | 37.5 | 0.41 | 0.22 | 87.8 | 0.57 |
CONDENSED CONSOLIDATED BALANCE SHEET
| EUR thousand | 30.6. 2011 | 30.6. 2010 | Change | 31.12. 2010 |
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 11,396 | 10,294 | 1,102 | 11,637 |
| Other intangible assets | 2,109 | 2,975 | -866 | 2,426 |
| Tangible assets | 10,576 | 10,904 | -328 | 10,427 |
| Deferred tax assets | 642 | 1,737 | -1,095 | 1,585 |
| Other non-current assets | 63 | 62 | 1 | 64 |
| Non-current assets total | 24,786 | 25,972 | -1,186 | 26,139 |
| Current assets | | |||
| Inventories | 10,097 | 9,671 | 426 | 9,600 |
| Trade and other receivables | 14,109 | 12,617 | 1,492 | 9,540 |
| Cash at bank and in hand | 8,131 | 10,044 | -1,913 | 11,606 |
| Current assets total | 32,336 | 32,331 | 5 | 30,746 |
| Total assets | 57,122 | 58,303 | -1,181 | 56,885 |
| EQUITY AND LIABILITIES | ||||
| Shareholders´ equity | ||||
| Share capital | 2,141 | 2,141 | 0 | 2,141 |
| Other reserves | 30 | 37 | -7 | 37 |
| Invested unrestricted equity fund | 8,488 | 8,488 | 0 | 8,488 |
| Translation differences | 2,616 | 2,204 | 412 | 3,311 |
| Retained earnings | 12,631 | 12,039 | 592 | 11,757 |
| Profit for the period | 4,912 | 2,615 | 2,297 | 6,772 |
| Total equity attributable to equity holders of the parent company | 30,818 | 27,524 | 3,294 | 32,507 |
| Total equity | 30,818 | 27,524 | 3,294 | 32,507 |
| Non-current liabilities | | |||
| Interest-bearing liabilities | 10,207 | 8,162 | 2,045 | 10,204 |
| Interest-free liabilities | 367 | 321 | 46 | 362 |
| Deferred tax liabilities | 559 | 206 | 353 | 549 |
| Current liabilities | ||||
| Interest-bearing liabilities | 10 | 7,510 | -7,500 | 15 |
| Trade and other non-current liabilities | 15,160 | 14,580 | 580 | 13,250 |
| | ||||
| Total liabilities | 26,304 | 30,779 | -4,475 | 24,378 |
| Total equity and liabilities | 57,122 | 58,303 | -1,181 | 56,885 |
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
| EUR thousand | Share Capital | Other reserves | Invested Unrestricted Equity Fund | Translation Differences | Retained Earnings | Total |
| Balance at 1 January 2010 | 2,141 | 37 | 8,488 | -100 | 15,013 | 25,580 |
| Comprehensive result | 0 | 0 | 0 | 2,303 | 2,615 | 4,918 |
| Dividend | 0 | 0 | 0 | 0 | -2,974 | -2,974 |
| Balance at 30 June 2010 | 2,141 | 37 | 8,488 | 2,204 | 14,654 | 27,524 |
| Balance at 1st January 2011 | 2,141 | 37 | 8,488 | 3,311 | 18,529 | 32,507 |
| Comprehensive result | 0 | 0 | 0 | -696 | 4,912 | 4,216 |
| Other items | 0 | -7 | 0 | 0 | 50 | 43 |
| Dividend | -5,948 | -5,948 | ||||
| Balance at 30 June 2011 | 2,141 | 30 | 8,488 | 2,616 | 17,543 | 30,818 |
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
| EUR thousand | 1.1.–30.6. 2011 | 1.1.–30.6. 2010 | Change | 31.12. 2010 |
| Cash Flow from Operating Activities | ||||
| Profit for the period | 4,912 | 2,615 | 2,297 | 6,772 |
| Adjustments | 2,562 | 3,125 | -563 | 6,276 |
| Change in working capital | -2,468 | -515 | -1,953 | 1,729 |
| Cash Flow Generated by Operations | 5,006 | 5,225 | -219 | 14,777 |
| Interest paid | -173 | -273 | 100 | -515 |
| Interest received | 47 | 154 | -107 | 114 |
| Other financial items | 146 | 64 | 82 | -88 |
| Income taxes paid | -1,070 | -1,071 | 1 | -2,296 |
| Net Cash Flow from Operating Activities | 3,956 | 4,099 | -143 | 11,992 |
| Acquisitions | 0 | 0 | 0 | 0 |
| Disposal of business | 0 | 0 | 0 | 0 |
| Capital expenditure | -1,478 | -695 | -783 | -1,570 |
| Proceeds from sale of fixed assets | 0 | 0 | 0 | 0 |
| Cash Flow from Investing Activities | -1,478 | -695 | -783 | -1,570 |
| Cash Flow from Financing | ||||
| Share issue | 0 | 0 | 0 | 0 |
| Proceeds from long-term borrowings | 0 | 0 | 0 0 | 0 0 |
| Instalments of long-term borrowings | 0 | -2,157 | 2,157 | -6,857 |
| Change in short-term loans | 0 | 0 | 0 | -106 |
| Instalments of finance lease liabilities | -5 | -826 | 821 | -1,477 |
| Dividends paid | -5,948 | -2,974 | -2,974 | -2,974 |
| Net Cash Flow from Financing | -5,953 | -5,957 | 4 | -11,414 |
| Change in Liquid Funds | -3,475 | -2,553 | -922 | -992 |
| Liquid funds in the beginning of period | 11,606 | 12,597 | -991 | 12,597 |
| Change in liquid funds | -3,475 | -2,553 | -922 | -992 |
| Liquid funds at the end of period | 8,131 | 10,044 | -1,913 | 11,606 |
QUARTERLY KEY FIGURES
| EUR thousand | II/ 2011 | I/ 2011 | IV/ 2010 | III/ 2010 | II/ 2010 | 1/ 2010 |
| Net sales | 23,367 | 21,548 | 19,338 | 18,692 | 19,173 | 15,671 |
| Materials and services | -9,295 | -8,378 | -7,700 | -7,451 | -7,189 | -6,062 |
| Employee benefit expenses | -5,672 | -5,221 | -4,982 | -4,577 | -4,892 | -4,381 |
| Depreciation and impairment | -663 | -684 | -719 | -724 | -763 | -675 |
| Operating expenses | -4,424 | -4,262 | -3,901 | -3,856 | -4,229 | -4,824 |
| Other operating income | 317 | 135 | 1,078 | 595 | 553 | 1,255 |
| Operating profit | 3,630 | 3,137 | 3,115 | 2,679 | 2,653 | 983 |
| Net financial items | -104 | -23 | -246 | -152 | -10 | -86 |
| Profit before taxes | 3,527 | 3,115 | 2,869 | 2,527 | 2,643 | 897 |
| Income taxes | -948 | -782 | -578 | -662 | -706 | -219 |
| Profit/loss for the period from continuing operations | 2,579 | 2,333 | 2,291 | 1,865 | 1,937 | 678 |
| Profit/loss for the period | 2,579 | 2,333 | 2,291 | 1,865 | 1,937 | 678 |
| Earnings per share, EUR | 0.22 | 0.20 | 0.19 | 0.16 | 0.16 | 0.06 |
| Earnings per share, EUR, diluted | 0.22 | 0.20 | 0.19 | 0.16 | 0.16 | 0.06 |
| 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 of personnel | 432 | 416 | 408 | 402 | 397 | 408 |
COMMITMENTS AND CONTINGENCIES
| EUR thousand | 30.6.2011 | 30.6.2010 | 31.12.2010 |
| On own behalf | |||
| Mortgages | 2,783 | 2,783 | 2,783 |
| Corporate mortgages | 12,500 | 12,500 | 12,500 |
| Lease liabilities | |||
| - in next 12 months | 927 | 384 | 886 |
| - in next 1-5 years | 2,481 | 1,411 | 2,770 |
| Other commitments | 6 | 182 | 10 |
DERIVATIVE FINANCIAL INSTRUMENTS
| Nominal values EUR thousand | 30.6.2011 | 30.6.2010 | 31.12.2010 |
| Interest rate derivatives | |||
| Interest rate swaps | 10,000 | 10,000 | 10,000 |
| Purchased interest rate options | 0 | 0 | 0 |
CONSOLIDATED KEY FIGURES
| EUR thousand | 1.1.-30.6. 2011 | 1.1.–30.6. 2010 | Change % | 31.12. 2010 |
| Net sales | 44,915 | 34,843 | 28.9 | 72,872 |
| Operating profit | 6,768 | 3,636 | 86.1 | 9,430 |
| % of net sales | 15.1 | 10.4 | 12.9 | |
| Profit before tax | 6,641 | 3,540 | 87.6 | 8,936 |
| % of net sales | 14.8 | 10.2 | 12.3 | |
| Profit for the period | 4,912 | 2,615 | 87.8 | 6,772 |
| % of net sales | 10.9 | 7.5 | 9.3 | |
| Shareholders´ equity | 30,818 | 27,524 | 12.0 | 32,507 |
| Interest-bearing liabilities | 10,217 | 15,672 | -34.8 | 10,219 |
| Cash and cash equivalents | 8,131 | 10,044 | -19.0 | 11,606 |
| Net interest-bearing liabilities | 2,086 | 5,628 | -62.9 | -1,387 |
| Capital employed | 41,035 | 43,196 | -5.0 | 42,725 |
| Return on equity, % | 31.0 | 19.7 | 23.3 | |
| Return on capital employed, % | 32.5 | 17.5 | 21.8 | |
| Equity ratio, % | 54.0 | 47.2 | 57.4 | |
| Net gearing, % | 6.8 | 20.4 | -4.3 | |
| Capital expenditure | 1,478 | 695 | 112.7 | 1,570 |
| % of net sales | 3.3 | 2.0 | 2.2 | |
| Research and development costs | 795 | 702 | 13.2 | 1.312 |
| % of net sales | 1.8 | 2.0 | 1.8 | |
| Order stock | 15,946 | 12,353 | 29.1 | 13,316 |
| Earnings per share, EUR | 0.41 | 0.22 | 87.8 | 0.57 |
| Earnings per share, EUR, diluted | 0.41 | 0.22 | 87.8 | 0.57 |
| Equity per share, EUR | 2.59 | 2.31 | 12.1 | 2.73 |
| 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 | 424 | 403 | 5.2 | 404 |
FORWARD-LOOKING STATEMENTS
Certain statements in this report, which are not historical facts, including, without limitation, those regarding expectations for general economic development and market situation; regarding customer industry profitability and investment willingness; regarding Company growth, development and profitability; regarding cost savings; regarding fluctuations in exchange rates and interest levels; regarding the success of pending and future acquisitions and restructurings; and statements preceded by "believes," "expects," "anticipates," "foresees" or similar expressions are forward-looking statements.
These statements are based on current expectations and currently known facts. Therefore, they involve risks and uncertainties that may cause actual results to differ materially from results currently expected by the Company.
Vantaa, 22 July 2011
EXEL COMPOSITES PLC Vesa Korpimies
Board of Directors President and CEO
FURTHER INFORMATION:
Vesa Korpimies, President and CEO, tel. +358 50 590 6754, or email vesa.korpimies@exelcomposites.com
Ilkka Silvanto, CFO and Administrative Director, tel. +358 50 598 9553, or email ilkka.silvanto@exelcomposites.com
DISTRIBUTION
DASDAQ OMX Helsinki Ltd.
Main news media
www.exelcomposites.com
EXEL COMPOSITES IN BRIEF
Exel Composites 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.