ETTEPLAN OYJ: INTERIM REPORT 1 JANUARY – 30 JUNE 2006
Stock exchange release – Published: 08.08.2006 10:00:00
INTERIM REPORT 1 JANUARY - 30 JUNE 2006
ETTEPLAN'S REVENUE GROWS BY 21%; OPERATING PROFIT EUR 3.0 MILLION
- Consolidated revenue: EUR 48.8 million (40.5 million)
- Operating profit: EUR 3.0 million (2.5 million)
- Net profit: EUR 2.0 million (1.5 million)
- Earnings per share: EUR 0.21 (0.17)
- Personnel at the
end of the period: 1,552 employees (1,235)
(Figures in parenthesis refer to the corresponding period of
the previous year, unless otherwise indicated.)
Etteplan's revenue grew vigorously through both the acquisition
of ABA TeknikPartner AB and organic growth. The acquisition is
a breakthrough for Etteplan to become a significant supplier in
both automotive and truck industry in the Nordic Countries.
TeknikPartner's business has been consolidated in the Etteplan Group
since 1 April 2006. Organic growth during the report period accounted
for 6 percentage points.
Demand for industrial technology design services was solid during
the period. The company's operating profit grew notably and the
profitability of line operations was up on the corresponding period
of the previous year. The company incurred some non-recurring expenses
during the period, such as due to the integration of ABA TeknikPartner AB.
Revenue and result
Etteplan's revenue rose to EUR 48.8 million (EUR 40.5 million).
Second-quarter revenue amounted to EUR 26.4 million (EUR 21.1 million)
and first-quarter revenue to EUR 22.4 million (EUR 19.4 million).
Operating profit during the report period totalled EUR 3.0 million
(EUR 2.5 million), representing 6.2% of revenue (6.1%). Second-quarter
operating profit amounted to EUR 1.5 million (EUR 1.5 million),
representing 5.7% of revenue (7.2%). Profit for the period before
taxes and minority interest was EUR 3.0 million (EUR 2.4 million).
Taxes amounted to EUR 0.8 million (EUR 0.8 million). Taxes have been
periodized in line with the result for the report period.
Net profit for the period amounted to EUR 2.0 million (EUR 1.5 million).
Earnings per share came in at EUR 0.21 (EUR 0.17). Equity per share grew
by 23.3% to EUR 2.07 (EUR 1.68). Capital employed grew by EUR 10.7 million,
or 47.5%. Return on investment was down on the comparison period at 22.2%
(28.2%).
Business operations
Etteplan operates as a partner to large and medium-sized internationally
operating industrial companies, providing industrial engineering design
services. The Group's design services are divided into two segments:
Delivery Design and Product Development.
The Delivery Design segment provides services for the design of machinery
and 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 that is specialized
in electromagnetic disturbance measurements and a unit that specializes in
information technology products and services.
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 second quarter
In May, Etteplan acquired the entire share capital of the Swedish company
ABA TeknikPartner AB. The company was established in 1995 and offers
product development services, mainly to the Swedish automotive industry.
ABA TeknikPartner AB employs over 200 people and the company's revenue
in 2005 was slightly over EUR 14 million. The acquisition strengthened
Etteplan's position as a notable player in the industrial technology design
sector in Sweden. The number of people working for the Etteplan Group in
Sweden rose to almost 600 as a result of the transaction.
In June, Etteplan increased its 75% holding in Etteplan Technical Systems AB
to 100%. The 100% holding is expected to bolster synergies between the
Swedish companies.
In order to clarify the company's corporate image, the business and
personnel of the Group's subsidiary EPE Design Oy have been transferred
to Etteplan Oyj, and EPE Design Oy's operations as a separate company
have been discontinued. EPE Design Oy's customers will be served under
the Etteplan Oyj name.
Etteplan made numerous major agreements during the report period.
The company's Production Lines and Process Plants service area signed
a notable further agreement for the provision of design services for
Nokian Tyres' Vsevolozhsk plant located near St Petersburg. The company
has received a significant order from NammoLIAB for automated assembly
line of illumination signals. The turn-key delivery includes design,
installation and commissioning. The company has also landed several notable
product development projects from clients in the Lifting and Hoisting
service area both in Finland and in Germany.
Personnel
The Etteplan Group's operations and number of personnel have grown steadily.
The Group's average payroll during the report period was 1,436 employees
(1,203) and the number of personnel at the end of the period was 1,552
employees (1,235). 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. 660 people worked
for the Group abroad.
Capital expenditures and financing
The Group's total capital expenditures grew significantly and amounted
to EUR 11.0 million (EUR 4.1 million). The largest single investment was
the acquisition of the entire share capital of ABA TeknikPartner AB.
Other capital expenditures were earmarked for the implementation and
development of business operations.
As a result of acquisitions and their financing arrangements, the company's
financial structure has changed. Total assets at 30 June 2006 amounted to
EUR 54.3 million (EUR 33.6 million), representing a growth of 61.7%.
The goodwill in the balance sheet grew to EUR 15.6 million (EUR 6.7 million).
The Group's cash and cash equivalents as well as marketable securities
increased to EUR 6.2 million (EUR 4.8 million). The Group's interest-bearing
liabilities rose as a result of the acquisitions and totalled EUR 12.1 million
(EUR 2.6 million) at the end of the period. The equity ratio was 39.5% (48.9%).
Shares
Etteplan Oyj's shares have been quoted under the Other Services business
sector on the Main List of the Helsinki Stock Exchange as from 24 May 2005.
The company's shares were previously quoted on the NM List of the Helsinki
Stock Exchange.
At the end of the report period, Etteplan Oyj's share capital amounted to
EUR 2,443,232.50 and the number of its shares to 9,772,930. During the
report period, the company's share capital was increased by 159,800 shares
and EUR 39,950 by means of a directed share issue. The new shares were used
as payment in a share swap. The increase in share capital was reported in a
stock exchange release dated 19 June 2006. The new shares became subject to
public trading on the Helsinki Stock Exchange on 20 June 2006.
As a consequence of new shares issued in the directed share issue Tapani
Mönkkönen's share of ownership in Etteplan Oyj's number of votes and share
capital has on 19 June, 2006 declined under 25 %. The announcement of change
in ownership has been published on the same day.
On 30 June 2006, the company did not hold any of its own shares. In June the
company transferred 200 of its own shares as payment in a share swap, which
was reported in a stock exchange release dated 19 June 2006. The company did
not buy back any of its own shares during the report period.
The authorizations to increase the share capital, to take convertible
loans and/or issue option rights, and buy back and transfer own shares
granted to the Board of Directors at the Annual General Meeting held on
29 March 2006 that were not exercised during the report period remain
valid. The authorizations exercised during the report period are detailed
above. The authorizations granted to the Board of Directors are presented
in detail in a stock exchange release dated 29 March 2006.
Adoption of IFRS
Etteplan Oyj changed over to accounting and financial statement principles
that are in line with IFRS (International Financial Reporting Standards)
in its financial reporting as from 1 January 2005. Etteplan drafted its
first full IFRS financial statements for 2005. The interim report has been
drafted in accordance with IFRS recognition and measurement principles.
The report does not fully comply with all the requirements of IAS 34,
Interim Financial Reporting.
Outlook for the future
No significant changes are expected to occur in the market for industrial
technology. The demand situation is anticipated to remain good in both the
Product Development and Delivery Design segments.
The company's full-year revenue and result are expected to increase notably
compared to the previous year.
The information presented herein has not been audited.
Hollola, 8 August 2006
Etteplan Oyj
Board of Directors
For additional information, please contact: Heikki Hornborg, CEO,
tel. +358 400 873 063 or Pia Björk, CFO, Vice President, Corporate Planning,
tel.+358 400 241 815
APPENDICES
Consolidated Income Statement
Consolidated Balance Sheet
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity
Key figures
Etteplan Oyj's third interim report for 2006 will be published on 27 October
2006. Releases and other corporate information are available on Etteplan's
website at www.etteplan.com.
DISTRIBUTION
Helsinki Stock Exchange
Principal media
CONSOLIDATED INCOME STATEMENT
(EUR 1 000) 1-6/2006 1-6/2005 1-12/2005
Revenue 48 838 40 515 79 365
Other operating income 68 68 98
Materials and services -3 181 -905 -2 920
Staff costs -34 853 -29 911 -58 072
Other operating expenses -6 847 -6 373 -13 129
Depreciation and amortisation
expenses -998 -912 -1 930
Operating profit 3 029 2 482 3 411
Financial income 77 0 120
Financial expenses -96 -40 -103
Profit before taxes and
minority interest 3 009 2 442 3 429
Income taxes -817 -794 -1 167
Profit for the financial period 2 192 1 648 2 262
Minority interest -194 -117 -17
Net profit for the financial
period attributable to equity
holders of the Company 1 998 1 531 2 244
Basic earnings per share, EUR 0.21 0.17 0.25
CONSOLIDATED BALANCE SHEET
(EUR 1 000) 30.6.2006 30.6.2005 31.12.2005
ASSETS
Non-current assets
Goodwill 15 588 6 742 8 921
Intangible assets 5 013 1 349 1 953
Property, plant and equipment 3 152 4 044 3 491
Investments available for sales 465 92 465
Deferred tax assets 96 0 96
Non-current assets, total 24 314 12 227 14 926
Current assets
Stocks 0 0 25
Trade and other receivables 23 809 16 561 17 712
Financial assets at fair value
through income statement 0 234 475
Cash and cash equivalents 6 152 4 548 4 445
Current assets, total 29 961 21 343 22 657
TOTAL ASSETS 54 275 33 570 37 582
EQUITY AND LIABILITIES
Capital attributable to equity holders
Share capital 2 443 2 274 2 403
Share premium account 9 179 5 262 8 269
Cumulative translation adjustment -138 -233 -252
Retained earnings 6 759 6 437 6 439
Net profit for the financial period 1 998 1 531 2 244
Capital attributable to
equity holders 20 241 15 270 19 104
Minority interest 1 086 1 067 1 360
Equity, total 21 327 16 337 20 463
Non-current liabilities
Deferred tax liability 893 157 193
Non-current interest-bearing
liabilities 9 166 1 657 1 414
Non-current liabilities, total 10 059 1 814 1 606
Current liabilities
Pension obligation 0 13 0
Current interest-bearing
liabilities 2 897 185 766
Trade and other payables 19 992 14 450 14 746
Current liabilities, total 22 889 15 576 15 512
Liabilities, total 32 947 17 233 17 119
TOTAL EQUITY AND LIABILITIES 54 275 33 570 37 582
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1 000) 1-6/2006 1-6/2005 1-12/2005
OPERATING CASH FLOW
Cash receipts from customers 48 431 39 244 73 864
Cash receipts from other
operating income 56 68 78
Operating expenses paid 44 190 37 454 72 836
OPERATING CASH FLOW BEFORE
FINANCIAL ITEMS AND TAXES 4 297 1 858 1 106
Interest and payment paid
for financial expenses 55 62 103
Interest received 77 22 120
Dividends received 0 6 0
Income taxes paid 1 127 368 980
OPERATING CASH FLOW (A) 3 192 1 456 144
INVESTMENT CASH FLOW
Purchase of tangible and
intangible assets 1 495 2 031 1 614
Acquisition of subsidiaries 8 236 0 672
Proceeds from sale of tangible
and intangible assets 140 252 295
Purchase of other investment 0 43 845
Proceeds from sale of investment 475 0 0
INVESTMENT CASH FLOW (B) -9 117 -1 737 -2 836
FINANCING CASH FLOW
Proceeds from issuance of
share capital 0 188 317
Short-term loans, decrease 0 28 28
Long-term loans, decrease 0 627 0
Long-term loans, increase 9 549 0 1 423
Dividend paid and other
profit distribution 1 923 1 305 1 305
FINANCING CASH FLOW (C) 7 626 -1 772 409
VARIATION IN WORKING CAPITAL (A + B + C)
INCREASE (+)/DECREASE (-) 1 701 -2 053 -2 284
ASSETS IN THE BEGINNING
OF THE FINANCIAL PERIOD 4 445 6 601 6 601
EXCHANGE GAINS OR LOSSES ON
CASH AND BANK EQUIVALENTS -5 0 -128
ASSETS AT THE END OF
OF THE FINANCIAL PERIOD 6 152 4 548 4 445
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(EUR 1 000)
Share Share Trans- Retained Minority Total
capital premium lation earnings interest
account differ.
Equity
1.1.2005 434 5 434 -19 7 743 1 208 14 800
Dividends -1 305 -213 -1 518
Share issue 1 969 2 835 4 804
Changes in
ownership 348 348
Net profit for
the financial
period 2 244 17 2 261
Translation
adjustment -232 -232
Equity
31.12.2005 2 403 8 269 -251 8 682 1 360 20 463
Equity
1.1.2006 2 403 8 269 -251 8 682 1 360 20 463
Dividends -1 923 -184 -2 107
Share issue 40 910 950
Changes in
ownership -284 -284
Net profit for
the financial
period 1 998 194 2 192
Translation
adjustment 113 113
Equity
30.6.2006 2 443 9 179 -138 8 757 1 086 21 327
KEY FIGURES
1-6/2006 1-6/2005 1-12/2005 Changes
for prev.
year
Revenue 48 838 40 515 79 365 20.5 %
Operating profit 3 029 2 482 3 411 22.0 %
Operating profit, % 6.2 6.1 4.3
Profit before taxes and
minority interest 3 009 2 442 3 429 23.2 %
Net profit for the period 1 998 1 531 2 244 30.5 %
Return on equity, % 21.0 21.2 12.8
Return on investment, % 22.2 28.2 18.2
Equity ratio, % 39.5 48.9 54.7
Gross interest-bearing loans 12 062 2 614 2 180 361.4 %
Net gearing, % 27.7 -13.0 -13.4
Balance sheet total 54 275 33 570 37 582 61.7 %
Gross investments 10 954 4 104 8 311 166.9 %
Earnings per share, EUR 0.21 0.17 0.25 22.1 %
Equity per share, EUR 2.07 1.68 1.99 23.3 %
Personnel, average 1 436 1 203 1 230 19.4 %
Personnel at the end of
the period 1 552 1 235 1 294 25.7 %
