Nurminen Logistics Plc Stock Exchange release 29 February 2008
This is a correction for release sent at. 9.00 on 29 February 2008.
The Outlook of the tables has been corrected. Please find, the whole English
language version below.
NURMINEN LOGISTICS PLC'S FINANCIAL STATEMENTS BULLETIN 1 January - 31 December
2007
Until 31 December 2007, Nurminen Logistics Plc (the “Company”) was called Kasola
Plc. The Company sold its old operations (the “Kasola operations”) in a
transaction executed on 23 November 2007. Correspondingly, the Company received
its current operations (the “Nurminen Logistics operations”) on 1 January 2008,
when the old John Nurminen LLC was demerged. These arrangements were described
in more detail in earlier stock exchange releases and the registration document
and securities note published by Kasola Plc on 7 December 2007.
The information presented in this financial statements bulletin conforms to the
Company's official Financial Statements for 2007. This information thus relates
to a period during which the Company was engaged in the Kasola operations sold
on 30 November 2007. In order to provide a clearer picture of the Company's
current operations, this bulletin also presents the financials of the Nurminen
Logistics operations for 2007, separated from the old John Nurminen LLC's
Financial Statements. Furthermore, a consolidated pro forma balance sheet of the
Company and the Nurminen Logistics operations as at 31 December 2007 is provided
for information purposes.
It should also be noted that the views presented in this bulletin regarding the
market situation and the Company's outlook apply to the Company's current
Nurminen Logistics operations.
This bulletin is divided into four sections:
1) The first section presents the financial information for 2007.
2) The second section deals with events after the balance sheet date and
estimates the Company's future development.
3) The third section presents carve out financials for 2007 of the Company's
current Nurminen Logistics operations.
4) The fourth section presents the consolidated pro forma balance sheet.
1. FINANCIAL INFORMATION 2007 (KASOLA PLC)
OPERATIONS AND FINANCIAL RESULTS
Kasola operations were divided into two business segments: safety products and
plastic products. The Company has divested all of its operations by agreements
signed at 23 November 2007.
Group Net Sales were 10 298 thousand euros (2006: 11 079 thousand euros).
Decline in net sales was due to the divestment of business operations during the
financial year as well as the fire that took place in April 2007, which
disturbed the operations.
Group operating profit was 128 thousand euros (597). Decline in operating profit
was due to the divestment of business operations during the financial year as
well as the fire that took place in April 2007, which disturbed the operations.
Furthermore operating profit was burdened by transaction costs amounting to 1
348 thousand euros. These transaction costs were related to the transaction
described in the above mentioned registration document. The above described
divestment of Company's business operations in November 2007 produced a sale
profit in the amount of 1 604 thousand euros, which improved Company's operating
profit.
FINANCIAL POSITION
The financial position of the Group was sound, the equity ratio standing at 91%
(2006: 71%).
CAPITAL EXPENDITURE
The Group's capital expenditure totalled EUR 286,000 (280,000).
PERSONNEL
At the end of the reporting period, the Group employed a staff of 1 (88).
Reduction in personnel is a result of divestment of Company's operations in
November 2007.
CONTINGENT LIABILITIES
The Group had no contingent liabilities or mortgages at 31 December 2007. A year
earlier, the contingent liabilities and mortgages were EUR 5,511,000.
SEGMENT REPORTING
Since all the operations carried on in 2007 have been discontinued, segment
information is not presented.
--------------------------------------------------------------------------------
| INCOME | 2007 | 2007 | 2007 | 2006 | 2006 | 2006 |
| STATEMEN | | | | | | |
| T | | | | | | |
--------------------------------------------------------------------------------
| EUR | continu | discontinue | Total | continui | discontin | Total |
| 1,000 | ing | d | | ng | ued | |
| | operati | operations | | operatio | operation | |
| | ons | | | ns | s | |
--------------------------------------------------------------------------------
| TURNOVER | 0 | 10298 | 10298 | 0 | 11079 | 11079 |
--------------------------------------------------------------------------------
| Other | 190 | 1604 | 1794 | 0 | 181 | 181 |
| operatin | | | | | | |
| g income | | | | | | |
--------------------------------------------------------------------------------
| Change | 0 | 0 | 0 | 0 | 149 | 149 |
| in | | | | | | |
| invetori | | | | | | |
| es of | | | | | | |
| finished | | | | | | |
| goods | | | | | | |
| and work | | | | | | |
| in | | | | | | |
| progress | | | | | | |
--------------------------------------------------------------------------------
| Producti | 0 | 0 | 0 | 0 | 64 | 64 |
| on for | | | | | | |
| own use | | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| Material | 0 | -3956 | -3956 | 0 | -3838 | -3838 |
| s and | | | | | | |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee | -123 | -4078 | -4201 | 0 | -4028 | -4028 |
| benefits | | | | | | |
| expenses | | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| Deprecia | 0 | -644 | -644 | 0 | -697 | -697 |
| tion | | | | | | |
--------------------------------------------------------------------------------
| Other | -1443 | -1720 | -3163 | -60 | -2253 | -2313 |
| operatin | | | | | | |
| g costs | | | | | | |
--------------------------------------------------------------------------------
| OPERATIN | -1376 | 1504 | 128 | -60 | 657 | 597 |
| G PROFIT | | | | | | |
--------------------------------------------------------------------------------
| Financia | 115 | 0 | 115 | 0 | 70 | 70 |
| l income | | | | | | |
--------------------------------------------------------------------------------
| Financia | -79 | -127 | -206 | 0 | -89 | -89 |
| l | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| PROFIT | -1340 | 1377 | 37 | -60 | 638 | 578 |
| BEFORE | | | | | | |
| TAX | | | | | | |
--------------------------------------------------------------------------------
| Income | 360 | -386 | -26 | 16 | -167 | -151 |
| taxes | | | | | | |
--------------------------------------------------------------------------------
| PROFIT | -980 | 991 | 11 | -44 | 471 | 427 |
| FOR THE | | | | | | |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
| Attribut | 0 | 0 | 0 | 0 | 0 | 0 |
| able to | | | | | | |
--------------------------------------------------------------------------------
| Equity | -980 | 991 | 11 | -44 | 471 | 427 |
| holders | | | | | | |
| of the | | | | | | |
| parent | | | | | | |
--------------------------------------------------------------------------------
| Minority | 0 | 0 | 0 | 0 | 0 | 0 |
| interest | | | | | | |
| s | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| INCOME | 10-12 | 10-12 /2007 | 10-12 | 10-12 | 10-12 | 10-12 |
| STATEMEN | /2007 | | /2007 | /2006 | /2006 | /2006 |
| T | | | | | | |
--------------------------------------------------------------------------------
| EUR | continu | discontinue | Total | continui | disconti | Total |
| 1,000 | ing | d | | ng | nued | |
| | operati | operations | | operatio | operatio | |
| | ons | | | ns | ns | |
--------------------------------------------------------------------------------
| TURNOVER | 0 | 2487 | 2487 | 0 | 3090 | 3090 |
--------------------------------------------------------------------------------
| Other | 190 | 1218 | 1408 | 0 | 44 | 44 |
| operatin | | | | | | |
| g income | | | | | | |
--------------------------------------------------------------------------------
| Change | 0 | -26 | -26 | 0 | -55 | -55 |
| in | | | | | | |
| invetori | | | | | | |
| es of | | | | | | |
| finished | | | | | | |
| goods | | | | | | |
| and work | | | | | | |
| in | | | | | | |
| progress | | | | | | |
--------------------------------------------------------------------------------
| Producti | 0 | -18 | -18 | 0 | 19,5 | 19,5 |
| on for | | | | | | |
| own use | | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| Material | 0 | -1129 | -1129 | 0 | -1009,5 | -1009,5 |
| s and | | | | | | |
| services | | | | | | |
--------------------------------------------------------------------------------
| Employee | -123 | -1046 | -1169 | 0 | -1122,75 | -1122,75 |
| benefits | | | | | | |
| expenses | | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| Deprecia | 0 | -116 | -116 | 0 | -175,5 | -175,5 |
| tion | | | | | | |
--------------------------------------------------------------------------------
| Other | -1170 | -62 | -1232 | -16 | -578 | -594 |
| operatin | | | | | | |
| g costs | | | | | | |
--------------------------------------------------------------------------------
| OPERATIN | -1103 | 1308 | 205 | -16 | 223,75 | 207,75 |
| G PROFIT | | | | | | |
--------------------------------------------------------------------------------
| Financia | 32 | 0 | 32 | 0 | 20,25 | 20,25 |
| l income | | | | | | |
--------------------------------------------------------------------------------
| Financia | -79 | -54 | -133 | 0 | -21 | -21 |
| l | | | | | | |
| expenses | | | | | | |
--------------------------------------------------------------------------------
| PROFIT | -1150 | 1254 | 104 | -16 | 223 | 207 |
| BEFORE | | | | | | |
| TAX | | | | | | |
--------------------------------------------------------------------------------
| Income | 277 | -321 | -44 | 4 | -55 | -51 |
| taxes | | | | | | |
--------------------------------------------------------------------------------
| PROFIT | -873 | 933 | 60 | -12 | 168 | 156 |
| FOR THE | | | | | | |
| PERIOD | | | | | | |
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET (EUR k) | 31.12.2007 | 31.12.2006
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | |
|
--------------------------------------------------------------------------------
| Non-current assets: | |
|
--------------------------------------------------------------------------------
| Tangible and intangible assets
| | 0 | 6 307
--------------------------------------------------------------------------------
| Other financial assets
| | 0 | 44
--------------------------------------------------------------------------------
| Deferred tax assets
| | 0 | 327
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Current assets
| | 0 |
--------------------------------------------------------------------------------
| Inventories | 0 | 2 022
|
--------------------------------------------------------------------------------
| Trade and other receivables
| | 2 931 | 1 489
--------------------------------------------------------------------------------
| Cash at bank and in hand | 7 071 | 2 976
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total | 10 002 | 13 165
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| LIABILITIES
| | |
--------------------------------------------------------------------------------
| Share capital
| | 4 215 | 4 215
--------------------------------------------------------------------------------
| Share premium account | 86 | 86
--------------------------------------------------------------------------------
| Reserve fund | 2 374 | 2 374
--------------------------------------------------------------------------------
| Fair value reserve
| | | 27
--------------------------------------------------------------------------------
| Retained earnings
| | 2 429 | 2 686
|
--------------------------------------------------------------------------------
| Minority interest
| | 0| 0
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities
| | |
--------------------------------------------------------------------------------
| Interest-bearing liabilities
| | 0| 336
|
--------------------------------------------------------------------------------
| Deferred tax liabilities
| | 0| 291
|
--------------------------------------------------------------------------------
| Pension obligations 0 | 179
|
--------------------------------------------------------------------------------
| Current liabilities
| |
|
--------------------------------------------------------------------------------
| Interest-bearing liabilities
| 0 | 1 427
|
--------------------------------------------------------------------------------
| Trade and other payables
| 899 | 1 544
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total 10 002 | 13 165
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 2007 | 2006 |
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT |01.01.-31.12.|
01.01.-31.12. |
| | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATING ACTIVITIES | | |
--------------------------------------------------------------------------------
| Operating profit | 129 | 597 |
--------------------------------------------------------------------------------
| Adjustments to reconcile profit | -1 604 | |
--------------------------------------------------------------------------------
| Depreciation and amortisation |
| 644 | 697 |
--------------------------------------------------------------------------------
| Financial income and expenses
| | 76 | -22
|
--------------------------------------------------------------------------------
| Taxes paid
| | -230 | -102 |
--------------------------------------------------------------------------------
| Changes in working capital
| | -800 | 717 |
--------------------------------------------------------------------------------
| Cash flow from operating activities
| -1 785 | 1 887 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTING ACTIVITIES | |
|
--------------------------------------------------------------------------------
| Proceeds from divested operations, net of cash 4 930 | 0
|
|
--------------------------------------------------------------------------------
| Proceeds from sales of fixed assets| 3 204 | 0 |
--------------------------------------------------------------------------------
| Investments in tangible
and intangible assets | -286 | -387 |
--------------------------------------------------------------------------------
| Cash flow from investing activities 6 244 | -387 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING ACTIVITIES |
| |
--------------------------------------------------------------------------------
| Changes in liabilities
| -1 672 | -1 427
|
--------------------------------------------------------------------------------
| Dividends paid
| -297 | -297 |
--------------------------------------------------------------------------------
| Other investments
| 0 | -38 |
--------------------------------------------------------------------------------
| Cash flow from financing activities
| -1 969 | -1 762 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN CASH AND CASH EQUIVALENTS | 4 094 | -262 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents
at beginning of period | 2 976 | 3 238 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of period
| 7 070 | 2 976 |
--------------------------------------------------------------------------------
| CASH FLOW FROM DISCONTINUED OPERATIONS | |
|
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATING ACTIVITIES | -2 053 | 1 947
|
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTING ACTIVITIES | 7 848 | -387
|
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING ACTIVITIES | -1 672 | -1 762
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CHANGES IN EQUITY 1-12/06 | | |
|
--------------------------------------------------------------------------------
| EUR 1,000 | | | | | | |
--------------------------------------------------------------------------------
| | Share | Share | Reserve | Fair | Prior | Total
| capital premium fund Value year's
| | | account | | reserve | year's | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 4237 | 64 | 2374 | 19 | 2597 | 9 291
|
| EQUITY | | | | | |
| AT BEGINNING | | | | | | |
| ------------------------------------------------------------------------------
| Purchase of treasury
shares | | | | -38 | -38 |
--------------------------------------------------------------------------------
| Recognised | | | | | | |
| in share
holders' | | | | | | |
| equity | | | | 8 | | 8 |
--------------------------------------------------------------------------------
| Profit for | | | | | 427 | 427 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -297 | -297 |
--------------------------------------------------------------------------------
| Redemption of
minority | | | | | | |
| interest | | | | | -4 | -4 |
--------------------------------------------------------------------------------
| Cancellation
of | -22 | 22 | | | | |
| treasury
shares | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 4215 | 86 | 2374 | 27 | 2685 | 9387 |
| EQUITY | | | | | | |
| 31.12.2006 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CHANGES IN EQUITY 1-12/07 | | | |
--------------------------------------------------------------------------------
| EUR 1,000 | | | | | | |
--------------------------------------------------------------------------------
| | Share | Share | Reserve | Fair | Prior |
| capital premium fund Value year's
| | | account | reserve | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 4215 | 86 | 2374 | 27 | 2685 | 9 387|
| EQUITY | | | | | |
AT BEGINNING | | | | | | |
--------------------------------------------------------------------------------
| Purchase of
treasury shares | | | | -2 | -2 |
--------------------------------------------------------------------------------
| Recognised | | | | | | |
| in share
holders| | | | | | |
| equity | | | | -27 | 31 | 4 |
--------------------------------------------------------------------------------
| Profit for | | | | | 11 | 11 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | -297 | -297 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 4215 | 86 | 2374 | 0 | 2 428 | 9 103
|
| EQUITY | | | | | |
|
| 31.12.2007 | | | | | |
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| GROSS CAPITAL EXPENDITURE (EUR k) | 286 | 418 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PERSONNEL | 80 | 86 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ORDER BACKLOG (EUR k) | 0 | 1 291 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES (EUR k) | | |
--------------------------------------------------------------------------------
| Mortgages given | 0 | 5 177 |
--------------------------------------------------------------------------------
| Other contingent liabilities | 0 | 195 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHARE PRICE DEVELOPMENT | | |
--------------------------------------------------------------------------------
| Share price at beginning of period 4,00 | 2,50 |
--------------------------------------------------------------------------------
| Share price at end of period 5,10 | 4,00 |
--------------------------------------------------------------------------------
| Highest for the period 5,75 | 4,33 |
--------------------------------------------------------------------------------
| Lowest for the period 3,43 | 2,60 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY/SHARE EUR 3,67 | 3,79 |
--------------------------------------------------------------------------------
| EARNINGS/SHARE (EPS) EUR | 0,005 | 0,17 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CHANGES IN EQUITY (EUR k -----------------------------------
| | |
--------------------------------------------------------------------------------
| Shareholders' equity at beginning of period
| 9 387 | 9 330 |
--------------------------------------------------------------------------------
| Dividends distributed
| -297 | -297 |
--------------------------------------------------------------------------------
| Net income recognised directly
in shareholders' equity 4 | 8 |
--------------------------------------------------------------------------------
| Profit for the period
| 9 | 389 |
--------------------------------------------------------------------------------
| Redemption of minority interest
| 0 | -43 |
--------------------------------------------------------------------------------
| Shareholders' equity at end of period
| 9 103 | 9 387 |
--------------------------------------------------------------------------------
ACCOUNTING POLICIES
In the comparative periods of the income statement, the profit/loss for the
operations sold has not been presented in one row, since the operations sold
cover the entire operations.
This Financial Statements Bulletin has been prepared in accordance with the
recognition and measurement principles of IFRS standards. However it has not
been prepared in accordance with all requirements of IAS 34 standard (interim
reports). This financial report should be read with Kasola Oyj's annual report
2006. The presented financials are unaudited
2. EVENTS AFTER THE BALANCE SHEET DATE AND BUSINESS ENVIRONMENT (NURMINEN
LOGISTICS OPERATIONS)
EVENTS AFTER THE BALANCE SHEET DATE
On 1 January 2008, the Company's name changed to Nurminen Logistics Plc. On the
same day, the old John Nurminen LLC demerged and the Company received the
Nurminen Logistics operations, which it is currently running.
SHORT-TERM RISKS AND UNCERTAINTIES
The most significant business risks are associated with the potential slowdown
of global economic growth, the economic trends in Finland as well as the pace of
economic growth in Russia and the development of foreign trade of Russia.
The Company is involved in the Finnish import logistics of Russian wood as part
of Nurminen Cargo's operations. If realised, the continuous increases of Russian
export tariffs will reduce or bring to an end the import of wood from Russia and
have a negative impact on the Company's financial performance. The effect will
not, however, be material to the Company.
OUTLOOK
Organic growth is expected to exceed 10% of turnover, and the company's
operating margin is expected to improve compared to below presented 2007
carve-out financial information of Nurminen Logistics.
On the long-term Company's goal is to increase its turnover annually by
approximately 20% on average, including acquisitions, and reach a operating
profit level of over 7%.
The economies of Russia and other CIS countries seem to continue their strong
growth in 2008, creating a good basis for the development of Nurminen Cargo's
operations, in particular. Russian imports will continue to grow vigorously, as
will Russia's internal logistics transport market.
Nurminen Heavy is looking for growth particularly in the traffic of Russia and
other CIS countries. The unit will acquire additional transport equipment in
2008 to respond to demand.
Due to completed acquisitions and tendering processes, Nurminen Care's sales
will increase clearly from 2007.
BOARD OF DIRECTORS AND MANAGEMENT GROUP
The Board of Directors elected at Kasola Plc's Extraordinary General Meeting
(EGM) on 8 October 2007, which comprised Pekka Kainulainen, Teemu Malmi, Jari
Bachmann, Markku Uotinen and Olli Pohjanvirta, continued as Nurminen Logistics
Plc's Board of Directors until the EGM held on 14 January 2008. In the said EGM,
the following persons were elected to serve on the Nurminen Logistics Plc Board
of Directors: Olli Pohjanvirta, Juha Nurminen, Matti Lainema, Matti Packalén and
Rolf Saxberg. On 14 January 2008, the Board elected Juha Nurminen as its
Chairman. On 15 January 2008, the Board appointed Juha Nurminen to the
Nomination and Compensation Committee. Matti Lainema was elected as the Chairman
and Olli Pohjanvirta as a member of the Audit Committee.
The Management Group of Nurminen Logistics for 2008 was announced in a stock
exchange release on 22 November 2007. It comprises President and CEO Lasse
Paitsola, SVP Kaj Kulp (M&A and investments), CFO Antti Sallila, SVP Petteri
Pelkonen (Nurminen Heavy and Nurminen Care) and SVP Harri Vainikka (Nurminen
Cargo).
AUTHORISATIONS GIVEN TO THE BOARD
The authorisation to grant share offering and special privileges
On 8 October 2007, the extraordinary general meeting authorised the Company
board to decide on a share offering of 10,000,000 shares, and on the basis of
this authorisation the board may issue a maximum of 10,000,000 new shares as
demerger consideration to John Nurminen shareholders, as a part of concluding
the Transaction. The authorisation is effective for 18 months from the
extraordinary general meeting's decision on the authorisation. The authorisation
in question may be used solely to execute the aforementioned demerger
consideration. A total of 9,999,989 shares of the authorisation will be used
with the registration of the John Nurminen demerger.
In addition to the previous, the Company's extraordinary general meeting held on
8 October 2007 authorised the Company board to decide on the issue of shares and
special rights, so that authorisation was given for the board to release
20,000,000 new shares. The authorisation included the right to deviate from the
shareholders' registration privilege, should a weighty financial reason exist
for doing so. The authorisation may be used, e.g., for the financing of
corporate and business trading or for other business arrangements and
investments, for the expansion of the ownership structure, and/or for the
creating incentives for, or encouraging commitment in, personnel. The
authorisation is effective for 18 months from the extraordinary general
meeting's decision on the authorisation. The authorisation gives the board the
right to decide on share issue with or without payment which includes the
granting of new shares and the distribution of shareholders' shares possibly in
the possession of the Company. The authorisation for deciding on a share issue
without consideration also includes the right to decide on the issue for the
Company itself, so that the number of shares granted to the Company is no more
than one tenth of all shares held by the Company. The board has not decided on
using the authorisation.
Authorisation to decide on acquiring treasury shares
On 20 April 2007, the annual general meeting authorised the board to decide on
the acquisition of treasury shares. The acquisition authorisation of treasury
shares is in force until 30 April 2008, and the maximum of 200,000 shares may be
acquired on this basis.
AUDITORS
The company's auditors are Idman & Vilén LLC, Authorised Public Accountants,
with Matti Pettersson, Authorised Public Accountant, as its principal auditor,
and LLC KPMG Ab, Authorised Public Accountants, with Lasse Holopainen,
Authorised Public Accountant, as its principal auditor.
SHARES AND SHAREHOLDERS
The trading volume of Kasola LLCj's shares was 660,507 in 2007, which
represented 30.3% of the total number of shares. The value of the turnover was
EUR 3,324,000. The lowest price for the year was EUR 3.43/share and the highest
EUR 5.70/share. The closing price for the year was EUR 5.10/share and the market
value of the entire share capital (A share) EUR 11,114,000. At the year-end,
there were 293 shareholders.
One K share was entitled to 20 votes and one A share, listed on the OMX Nordic
Exchange Helsinki, to one (1) vote. K shares were converted to A shares at the
end of the year 2007.
BOARD OF DIRECTORS' PROPOSAL FOR PROFIT DISTRIBUTION
Based to the Financial Statements as at 31 December 2007, the parent company's
distributable equity is EUR 4 888 735.25. The Board of Directors proposes that a
dividend of EUR 0.12 per share be distributed, i.e. a total of EUR 1 526 294.28.
After this, the parent company will have EUR 3 362 440.97 of retained earnings.
The record date for the payment of the proposed dividend is 16 April 2008. The
dividend payment date is 28 April 2008. All shares outstanding on the dividend
payment record date, excluding treasury shares in the parent company's
possession, are entitled to dividends for the year 2007.
ANNUAL GENERAL MEETING 2008
The Company's Annual General Meeting for 2008 will be held on 11 April 2008 from
10 am at Pasilankatu 2, FI-00240 Helsinki.
3. NURMINEN LOGISTICS - SEPARATE FINANCIAL INFORMATION FOR BUSINESSES
--------------------------------------------------------------------------------
| SEPARATE FINANCIAL INFORMATION FOR THE LOGISTICS BUSINESS TO BE
|
| TRANSFERRED TO NURMINEN LOGISTICS
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | |
| IFRS | | | | |
| 1 000 EUR | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | 1.1.-31.12.2007| | 1.1.-31.12.2006| |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TURNOVER | 81 693 | | 72 205 | |
--------------------------------------------------------------------------------
| Other operating | 1 885 | | 657 | |
| income | | | | |
--------------------------------------------------------------------------------
| Materials and services | -41 471 | | -38 464 | |
--------------------------------------------------------------------------------
| Employee benefits | -18 120 | | -16 475 | |
| expenses | | | | |
--------------------------------------------------------------------------------
| Depreciation and
amortisation | -4 448 | | -2 853 | |
--------------------------------------------------------------------------------
| Other operating costs | -15 012 | | -13 182 | |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 4 527 | | 1 888 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and
expenses | -2 491 | | -846 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of companies consolidated |
|
| using the equity method | 29 | | -170 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES | 2 065 | | 872 |
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income taxes | -384 | | -129 |
|
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 1 681 | | 743 |
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to | | | |
|
--------------------------------------------------------------------------------
| Equity holders of | 1 373 | | 470 |
|
| the parent | | | |
|
--------------------------------------------------------------------------------
| Minority interests | 308 | | 273 |
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SEPARATE FINANCIAL INFORMATION FOR THE LOGISTICS BUSINESS TO BE
|
| TRANSFERRED TO NURMINEN LOGISTICS |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET, IFRS | | |
--------------------------------------------------------------------------------
| 1 000 EUR | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | | | |
| | | | | |
--------------------------------------------------------------------------------
| | | 31.12.2007| | 31.12.2006|
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant | 48 041 | | 33 376 |
| and equipment | | | |
--------------------------------------------------------------------------------
| Goodwill | 10 744 | | 9 131 |
--------------------------------------------------------------------------------
| Other intangible assets | 1 802 | | 2 625 |
--------------------------------------------------------------------------------
| Companies consolidated | 717 | | 116 |
| using the equity method | | | |
--------------------------------------------------------------------------------
| Receivables | 0 | | 5
|
--------------------------------------------------------------------------------
| Deferred | 337 | | 161
| tax assets | | |
|
--------------------------------------------------------------------------------
| | | 61 641 | | 45 414
|
--------------------------------------------------------------------------------
| Current assets | | |
|
--------------------------------------------------------------------------------
| Trade and other
receivables | 14 606 | | 15 493 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 3 085 | | 55
|
--------------------------------------------------------------------------------
| | | 17 691 | | 15 548
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | 79 332 | | 60 962 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET ASSETS AND LIABILITIES | | |
|
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets | 21 195 | | 13 077
|
--------------------------------------------------------------------------------
| Minority interest | 1 010 | | 742
|
--------------------------------------------------------------------------------
| | | 22 205 | | 13 819
|
--------------------------------------------------------------------------------
| LIABILITIES | | |
|
--------------------------------------------------------------------------------
| Non-current liabilities | | |
|
--------------------------------------------------------------------------------
| Deferred tax liabilities | 761 | | 840
|
--------------------------------------------------------------------------------
| Non-interest-bearing
liabilities | 9 480 | | 1 389
|
--------------------------------------------------------------------------------
|
Interest-bearing
liabilities | 12 792 | | 27 136 |
--------------------------------------------------------------------------------
| | | 23 033 | | 29 365 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 31 241 | | 13 870 |
--------------------------------------------------------------------------------
| Interest-bearing
liabilities | 2 853 | | 3 908 |
--------------------------------------------------------------------------------
| | | 34 094 | | 17 778 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 57 127 | | 47 143 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| TOTAL NET ASSETS AND | 79 332 | | 60 962 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Turnover | | 1.1.-31.12.2007 | 1.1.-31.12.2006 |
| by segment | | IFRS | IFRS
|
| (1 000 EUR) | | |
|
--------------------------------------------------------------------------------
| Cargo | | 70 182 | 64 129 |
--------------------------------------------------------------------------------
| Heavy | | 9 455 | 8 070 |
--------------------------------------------------------------------------------
| Care | | 6 678 | 2 026 |
--------------------------------------------------------------------------------
| Eliminations | | -4 622 | -2 020 |
--------------------------------------------------------------------------------
| Total | | 81 693 | 72 205 |
--------------------------------------------------------------------------------
| Turnover | | 1.1.-31.12.2007 | 1.1.-31.12.2006 |
| by segment | | | |
| (1 000 EUR) | | | |
--------------------------------------------------------------------------------
| Cargo | | 2 819 | 809 |
--------------------------------------------------------------------------------
| Heavy | | 927 | 678 |
--------------------------------------------------------------------------------
| Care | | 781 | 402 |
--------------------------------------------------------------------------------
| Other | | 0 | 0 |
--------------------------------------------------------------------------------
| Total | | 4 527 | 1 889 |
--------------------------------------------------------------------------------
The 2007 carve-out financial information of Nurminen Logistics operations have
been prepared in accordance with the accounting principles described in the
pages of F16-F24 (F18-F26 of the English translation) of the above mentioned
registration document. The carve-out financial information presented has been
prepared in accordance with the recognition and measurement principles of IFRS
standards.
MARKET REVIEW/BUSINESS ENVIRONMENT
Nurminen Cargo enjoyed favourable market conditions for most of the year. Strong
economic development continued, which was reflected in the improvement of
Finnish foreign trade. Trade between Finland and Russia, in particular, grew
vigorously, resulting in larger volumes in railway transports and cargo handling
alike. The import of wood from Russia declined compared to 2006.
Nurminen Heavy benefited from the boom in the mechanical engineering industry.
Demand was robust in all main markets.
For Nurminen Care, the most important market factor was the continuing
consolidation of the ambulance operator market. The basic structure of the
industry nevertheless remained fragmented. In other respects, no significant
changes took place in the marketplace.
TURNOVER AND FINANCIAL PERFORMANCE FOR 2007
The Nurminen Logistics operations continued on a steady growth path in 2007.
Turnover was EUR 81.7 (2006: 72.2) million. Operating profit for 2007 totalled
EUR 4.5 (1.9) million and net profit EUR 1.7 (0.7) million. The volume of
operations grew in all segments, and Nurminen Cargo and Nurminen Heavy also
improved their profitability.
Nurminen Cargo's turnover for the period came to EUR 70.2 (64.1) million. The
turnover of the segment's railway logistics business grew significantly as a
result of strong growth in imports to Russia and the expansion of the Company's
rolling stock. In 2006, problems in the wood imports affected negatively the
segment's financial performance. The unit's reduced dependence on wood
transportation improved its turnover considerably in 2007 to EUR 2.8 (0.8)
million.
Due to good demand, Nurminen Heavy increased its turnover to EUR 9.5 (8.1)
million. Its operating profit was EUR 0.9 (0.7) million.
Nurminen Care's turnover amounted to EUR 6.7 (2.0) million, and its operating
profit was EUR 0.8 (0.4) million. The increase in Nurminen Care's turnover was
mainly the result of successful acquisitions.
TURNOVER AND FINANCIAL PERFORMANCE FOR Q4/2007
In the fourth quarter of 2007, the Nurminen Logistics operations continued on a
steady growth path. Turnover rose by 4.1 % to EUR 20.2 (2006: 19.4) million.
Operating profit for 2007 totalled EUR 1.6 (0.9) million.
Nurminen Cargo's turnover for the period came to EUR 18.5 (17) million. The
turnover of the segment's railway logistics business grew significantly as a
result of strong growth in imports to Russia and the expansion of the Company's
rolling stock. In 2006, problems in the wood imports affected negatively the
segment's financial performance. The unit's reduced dependence on wood
transportation improved its turnover considerably in 2007 to EUR 1.2 (0.35)
million.
Nurminen Heavy's turnover amounted to EUR 2.1 (2.4) million, while the segment's
operating profit came to EUR 0.1 (0.4) million. The decrease in profit was due
to the timing of the deliveries of transported machinery and equipment. The
fourth quarter of 2006 was exceptionally good.
Nurminen Care's turnover amounted to EUR 2.1 (0.4) million, and its operating
profit stood at EUR 0.2 (0.06) million. The increase in turnover was mainly
result of successful acquisitions.
CAPITAL EXPENDITURE
The Group's gross capital expenditure for 2007 amounted to EUR 20.6 (13.2)
million, accounting for 25.3% of turnover. Depreciation totaled EUR 4.5 (2.9)
million, or 5.5% of turnover. Investments were mainly made in railway wagons and
terminal buildings. In the last quarter of the year, capital expenditure totaled
EUR 6.3 (3.1) million.
THE STRUCTURE OF NURMINEN LOGISTICS OPERATIONS
Nurminen Logistics Plc was created on 1 January 2008 when John Nurminen LLC
demerged. Nurminen Logistics Plc's listing took place by transferring the main
part of the logistics business operations of John Nurminen LLC to Kasola Plc.
The transaction was executed on 1 January 2008 and the name of Kasola Plc was
changed to Nurminen Logistics Plc.
The Group comprises the parent company, Nurminen Logistics LLCj, as well as the
following subsidiaries and associated companies, owned directly or indirectly by
the parent: RW Logistics LLC, JN Ferrovia LLC, Nurminen Heavy Oü, OOO John
Nurminen, Pietari, OOO John Nurminen, Moscow, Helsingin Ensihoito ja
Sairaankuljetus LLC, LLC Turku Stevedoring Ab, Nurminen Maritime Latvia SIA,
Pelkolan Terminaali LLC, ZAO Irtrans, OOO Huolintakeskus, OOO John Nurminen
Terminal, ZAO Terminal Rubezh, Varsinais-Suomen Sairaankuljetus LLC, LLC Porvoon
Ambulanssipalvelu - Borgå Ambulanstjänst Ab, Päijät-Hämeen Ensihoito ja
Sairaankuljetus LLC, Jyväskylän Sairaankuljetus LLC, Hollolan Sairaankuljetus
LLC, Orimattilan Sairaankuljetus LLC, John Nurminen Eesti AS, Nurminen Maritime
UAB, Lithuania, CMA CGM Latvia SIA, CMA CGM Estonia Oü, Team Lines Latvia SIA
and Team Lines Estonia Oü.
PERSONNEL
At the end of the financial period, the Group staff total 578, compared to 509
the year before. Nurminen Cargo had 353 employees at the year-end, Nurminen
Heavy 29 and Nurminen Care 159. Management and administrative staff numbered to
37.
Personnel expenses (EUR k)
Salaries and fees 15,589
Other personnel expenses 3,347
Total 25,979
RESTRUCTURINGS IN 2007
Nurminen Logistics Plc was created on 1 January 2008 when John Nurminen LLC was
demerged. Nurminen Logistics Plc's listing took place by transferring a part of
the business operations of the divided John Nurminen LLC to Kasola Plc. The
transaction was executed on 1 January 2008 when the name of Kasola Plc was
changed to Nurminen Logistics Plc.
The details of the demerger and the transaction were announced in a stock
exchange release on 10 December 2007.
4. PRO FORMA BALANCE SHEET
Accounting policies
The below presented pro forma balance sheet has been prepared for illustrative
purposes to describe what Company's Balance Sheet would have been in case the
Nurminen Logistics operations had been acquired at the date of the balance
sheet.
In the pro forma balance sheet the acquisition of Nurminen Logistics operations
has been treated as a reverse acquisition on the basis of IFRS 3 Business
Combinations. This means that in the pro forma balance the acquirer is Nurminen
Logistics operations and the acquisition target is the Company. The pro forma
balance sheet presumes that the acquisition date is the date of the pro forma
balance sheet.
Based on the Main Agreement (as described in the above mentioned registration
document)
Nurminen Logistics is indebted to the new John Nurminen LLC. In this pro forma
balance sheet this internal financing, totaling 15.1 million euros, is presented
under long-term interest-bearing debt. In connection with the demerger of the
old John Nurminen LLC, a loan agreement has been executed between Nurminen
Logistics Plc and new John Nurminen LLC.
The net assets of the carve-out financial information of Nurminen Logistics is
the difference of the assets and liabilities transferred to Nurminen Logistics
in the demerger of old John Nurminen LLC. The continuity of equity does not in
these carve-out financials materialize in the same way as it does on the group
financial statements to which these carve out financials are based on.
--------------------------------------------------------------------------------
| NURMINEN LOGISTICS PRO FORMA BALANCE SHEET |
| |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET, IFRS | | |
--------------------------------------------------------------------------------
| 1 000 EUR | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 31.12.2007 |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current assets | | |
|
--------------------------------------------------------------------------------
| Property, plant | | | 48 041 |
| and equipment | | | |
--------------------------------------------------------------------------------
| Goodwill | | | 15 489 |
--------------------------------------------------------------------------------
| Other intangible assets | | | 2 317 |
--------------------------------------------------------------------------------
| Companies consolidated | | | 210 |
| using the equity method | | | |
--------------------------------------------------------------------------------
| Receivables | | | 262 |
--------------------------------------------------------------------------------
| Deferred tax assets | | | 337 |
--------------------------------------------------------------------------------
| | | | | 66 656 |
--------------------------------------------------------------------------------
| Current assets | | | |
--------------------------------------------------------------------------------
| Trade and other
receivables | | | 17 783 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | | | 10 156 |
--------------------------------------------------------------------------------
| | | | | 27 939 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL ASSETS | | | 94 595 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NET ASSETS AND LIABILITIES| | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net assets | | | 35 556 |
--------------------------------------------------------------------------------
| Minority interest | | | 1 010 |
--------------------------------------------------------------------------------
| | | | | 36 566 |
--------------------------------------------------------------------------------
| LIABILITIES | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | | | 760 |
--------------------------------------------------------------------------------
| Non-interest-bearing
liabilities | | | 1 480 |
--------------------------------------------------------------------------------
| Interest-bearing
liabilities | | | 35 726 |
--------------------------------------------------------------------------------
| | | | | 37 966 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Trade and other payables | | | 17 210 |
--------------------------------------------------------------------------------
| Interest-bearing
liabilities | | | 2 853 |
--------------------------------------------------------------------------------
| | | | | 20 063 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | | | 58 029 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| TOTAL NET ASSETS AND | | | 94 595 |
| LIABILITIES | | | |
--------------------------------------------------------------------------------
Disclaimer
Certain statements in this bulletin are forward-looking and are based on the
management's current views. Due to their nature, they involve risks and
uncertainties and are susceptible to changes in the general economic or industry
conditions.
NURMINEN LOGISTICS PLC
Board of Directors
For more information, please contact Lasse Paitsola, President and CEO (tel.
+358 400 405 801) or Antti Sallila, CFO (tel. +358 40 513 2981).
DISTRIBUTION
OMX Nordic Exchange Helsinki
Major media
www.nurminenlogistics.com
Nurminen Logistics provides high-quality logistics services, such as railway
transports, terminal services, forwarding, special and heavy transports and
medical transports.
The company has collected logistics know-how from three centuries, starting in
1886. Nurminen Logistics' main market areas are Finland, the Baltic Sea region,
Russia and other CIS countries. The company's share is listed on the Helsinki
Stock Exchange.
Correction: NURMINEN LOGISTICS PLC'S FINANCIAL STATEMENTS BULLETIN 1 January - 31 December
| Source: Nurminen Logistics Oyj