WULFF GROUP PLC’S FINANCIAL STATEMENTS RELEASE JANUARY 1–DECEMBER 31, 2018
FINANCIAL STATEMENTS RELEASE FEBRUARY 22, 2019 at 9.00 A.M.
This is a summary of Wulff Group Plc’s Financial Statements Release January 1–December 2019. The complete report is attached to this stock exchange release as a pdf-file. The report is also available at the website www.wulff-group.com.
EBITDA and operating profit grew in the final quarter of the financial year
- Net sales totalled EUR 14.8 million (15.8), decreased by 6.3%
- EBITDA and comparable EBITDA were EUR 0.8 million (0.4), growth of 87.1%
- Operating profit (EBIT) and comparable operating profit (EBIT) were EUR 0.6 million (0.3), growth of 111.9%
- Earnings per share (EPS) were EUR 0.07 (0.04)
- Net sales totalled EUR 55.9 million (56.9), decreased by 1.8%
- EBITDA and comparable EBITDA were EUR 1.9 million (0.5)
- Operating profit (EBIT) and comparable operating profit (EBIT) were EUR 1.5 million (0.1)
- Earnings per share (EPS) were EUR 0.15 (-0.03)
- Equity-to-assets ratio was 49.1 % (47.0)
- The Board proposes to the Annual General Meeting to be held on April 4, 2019 that a dividend of EUR 0.10 per share be paid
- Wulff estimates that the comparable operating profit of 2019 will increase from 2018.
WULFF GROUP PLC’S CEO HEIKKI VIENOLA
“2018 ended with good results. It is great to be able to thank our customers, personnel and business partners of good work and significant choises. During 2018 we have invested in our new strategy and to strategic projects such as Wulff Lab, Wulff Better Products, Wulff Academy and Wulff Digital. We make this world better one workplace at a time by offering our customers the possibility to have impact with every choise. Projects such as Wulff Lab and Wulff Better Products continuously bring new sustainable, environmentally friendly and local products to our product range. In 2018, we increased our range of services with acquisition of Canon Business Center Vantaa specialised in quality printing, monitoring, maintenance services and modern data management. These services had been highly requested by our clients. We have good possibilities to make year 2019 positive by increasing the sales as well as the result.”
GROUP’S NET SALES AND RESULT PERFORMANCE
In January-December 2018 net sales totalled EUR 55.9 million (56.9), and EUR 14.8 (15.8) million in the final quarter. Net sales decreased by -1.8% in January-December. The decline in net sales was a result of a smaller amount of a biennial trade shows, arranged every other year, than the previous year.
In January-December 2018 the gross margin amounted to EUR 19.7 million (19.2) being 35.2% (33.8), and EUR 5.6 million (5.3) in the final quarter being 37.5% (33.6). The gross margin developed positively due to successful additional sales in trade show projects and sales of printing equipment and solutions. Additionally, the sales channels have focused on measures that have improved the gross margin.
In January-December 2018 employee benefit expenses amounted to EUR 11.5 million (12.2), 20.7% (21.5) of net sales and EUR 3.1 million (3.2), 20.9% (20.2) of net sales in the fourth quarter. Other operating expenses amounted to EUR 6.3 million (6.7) in January-December 2018 being 11.4% (11.7) of net sales, and EUR 1.8 million (1.7), 11.8% (11.0), of net sales in the final quarter. Employee benefit and other operating expenses were still affected by the implemented cost-saving measures.
In January-December 2018 EBITDA and the comparable EBITDA were EUR 1.9 million (0.5) being 3.4% (0.8) of net sales, and EUR 0.8 million (0.4) in the final quarter.
In January-December 2018 the comparable operating profit (EBIT) amounted to EUR 1.5 million (0.1), being 2.7% (0.1) of net sales, and EUR 0.6 million (0.3) in the final quarter.
In January-December 2018 the financial income and expenses totalled (net) EUR -0.3 million (-0.3) including interest expenses of EUR -0.1 million (-0.1) and mainly currency-related other financial items (net) EUR -0.2 million (-0.3). In the final quarter, the financial income and expenses (net) totalled EUR -0.1 million (-0.1).
In January-December 2018 the result before taxes was EUR 1.2 million (-0.2), and EUR 0.5 million (0.2) in the final quarter.
In January-December 2018 the net profit was EUR 1.1 million (-0.2), and 0.4 million (0.3) in the final quarter. Earnings per share (EPS) were EUR 0.15 (-0.03) in January-December 2018, and EUR 0.07 (0.04) in the final quarter.
|Net sales||14 831||15 829||55 889||56 931|
|Change in net sales, %||-6.3%||0.1%||-1.8%||-4.0%|
|Gross profit||5 557||5 317||19 670||19 239|
|Gross profit, %||37.5%||33.6%||35.2%||33.8%|
|EBITDA margin, %*||5.1%||2.5%||3.4%||0.8%|
|Operating profit/loss *||643||304||1 508||74|
|Operating profit/loss margin, %*||4.3%||1.9%||2.7%||0.1%|
|Profit/Loss before taxes||548||170||1 243||-247|
|Profit/Loss before taxes margin, %||3.7%||1.1%||2.2%||-0.4%|
|Net profit/loss for the period attributable to equityholders of the parent company||424||274||1 025||-193|
|Net profit/loss for the period, %||2.9%||1.7%||1.8%||-0.3%|
|Earnings per share, EUR (diluted = non-diluted)||0.07||0.04||0.15||-0.03|
|Return on equity (ROE), %||3.6%||2.4%||9.3%||-2.0%|
|Return on investment (ROI), %||4.4%||1.1%||9.5%||-1.1%|
|Equity-to-assets ratio at the end of period, %||49.1%||47.0%||49.1%||47.0%|
|Debt-to-equity ratio at the end of period||15.8%||19.8%||15.8%||19.8%|
|Equity per share at the end of period, EUR **||1.72||1.64||1.72||1.64|
|Investments in non-current assets||59||16||446||429|
|Investments in non-current assets, % of net sales||0.4%||0.1%||0.8%||0.8%|
|Treasury shares held by the Group at the end ofperiod||79 000||79 000||79 000||79 000|
|Treasury shares, % of total share capital and votes||1.1%||1.2%||1.1%||1.2%|
|Average number of outstanding shares||6 828 628||6 528 628||6 643 696||6 528 628|
|Number of total issued shares at the end of period||6 907 628||6 607 628||6 907 628||6 607 628|
|Personnel on average during the period||193||198||191||198|
|Personnel at the end of period||191||195||191||195|
* The presentation of the Consolidated Statement of Income has been changed in the first quarter of 2018 in such a way that all
bank expenses have been classified as financial expenses. The comparison period 2017 has been adjusted according to the
new reporting principle: bank expenses have been reclassified from other operating expenses to financial expenses impacting
the EBITDA and operating profit by EUR 0.0 million in Q4 and, EUR 0.1 million for January-December 2017.
The impact on the EBITDA margin-% and operating profit/loss margin-% was +0.2% in the whole financial year 2017.
** Equity attributable to the equity holders of the parent company / Number of shares excluding the acquired own shares
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand for workplace products and office supplies is strongly affected by the general economic development and competition in the market. Business operations are also affected by normal business risks such as the success of the Group’s strategy and operative risks stemming from the personnel, logistics and IT environments. Approximately half of the Group’s net sales come from other than euro-currency countries. Fluctuation of the currencies affects the Group’s net result and balance sheet.
The Group invested 9.1.2019 in the development of its logistics services by acquiring its logistics property in Ljungby, Sweden. The 5,500 m2 logistics property and office space have been used by Wulff Supplies since their completion in 2010. The debt free purchase price of the real estate company, approximately EUR 3.1 million, is financed mainly with borrowed capital. Owning a modern logistics center and having the opportunity to expand operations will enable Wulff to grow and develop its logistics services. The investment is expected to improve the cost-efficiency of Wulff Supplies, especially in the long-term.
The Group has not had any other significant subsequent events after the reporting period.
BOARD OF DIRECTORS’ PROPOSAL FOR THE ANNUAL RESULT
The Group’s parent company Wulff Group Plc’s distributable funds totalled EUR 1.7 million. The Group’s net result attributable to the parent company shareholders was EUR 1.0 million (-0.2), i.e. EUR 0.15 per share (EUR -0.03 per share). The Board of Directors proposes to the Annual General Meeting to be held on April 4th, 2019 that a dividend of EUR 0.10 per share, i.e. EUR 0.7 million, be paid for the financial year 2018, and the remaining distributable funds be left in retained earnings in the shareholders’ equity.
MARKET SITUATION AND FUTURE OUTLOOK
Wulff is the most significant Nordic player in its field. Its aim is to lead the way, renew the field and be at the forefront of change. Wulff believes that the role of values and sustainability will come to have an increasingly important part in sourcing decisions and companies’ business partner selections in the future. With its new strategy, Wulff will build its competitiveness and make sure that it can offer customers what they want: solutions for making the everyday work life smoother and the world better one workplace at a time. The market traditionally understood as the office environment changes and develops rapidly. Competition is tough in the traditional market and the new market has a lot of opportunities. Wulff believes that the future is bright due to the strong, constantly developing new strategy, its active customer and partner networks, and its professional, committed personnel. The Group has an ongoing readiness to carry out new strategic acquisitions and as a listed company, Wulff is in a good position to be a more active player than its competitors.
The developing economic situation will enable Wulff’s business to develop positively. Wulff estimates that the comparable operating profit of 2019 will increase from 2018. In the industry, it is typical that the result and cash flow are generated in the last quarter.
WULFF GROUP PLC’S FINANCIAL REPORTING AND ANNUAL GENERAL MEETING 2019
Wulff Group Plc will release the following financial reports in 2019:
|Statutory Financial Statements 2018||week 11/2019|
|Interim Report, January-March 2019||Friday May 3, 2019|
|Interim Report, January-June 2019||Thursday August 1, 2019|
|Interim Report, January-September 2019||Thursday October 31, 2019|
Wulff Group Plc’s Annual General Meeting will be held on Thursday April 4, 2019. A separate notice to the Annual General Meeting will be published prior to the meeting in 2019.
In Vantaa on February 21, 2019
WULFF GROUP PLC
BOARD OF DIRECTORS
CEO Heikki Vienola
tel. +358 300 870 414 or +358 50 65 110
NASDAQ OMX Helsinki Oy
A BETTER WORLD – ONE WORKPLACE AT A TIME. Wulff enables working in environments where companies and entrepreneurs operate. We offer the industry’s most comprehensive product and service range that can help you create an office wherever you want it. What would you like? We offer our customers office supplies, facility management products, catering solutions, IT supplies, ergonomics, first aid, and innovative products for worksites. Customers can also acquire international exhibition services from Wulff. In addition to Finland, Wulff operates in Sweden, Norway, and Denmark. Check out our products and services at wulff.fi.