Cramo Plc Interim Report 13 May 2008, at 9.00 am Finnish time (GMT+2)
Cramo's strong growth continued - Interim Report for Q1/2008
- Consolidated sales EUR 126.8 (107.3) million, up 18.2%, continuing operations
up 21.5%
- EBITA EUR 17.4 (16.7) million, up 4.6%
- EBIT EUR 16.2 (15.6) million, up 4.1%
- Undiluted earnings per share EUR 0.26 (0.29) and diluted earnings per share
EUR 0.26 (0.28)
- Growth through acquisitions in the Czech Republic, Latvia and Sweden
- The Group reconfirms its sales growth guidance at above 18% and an EBITA above
18% of sales in 2008, in line with the Group's financial targets. However,
macroeconomic developments may change this picture.
--------------------------------------------------------------------------------
| KEY FIGURES AND RATIOS | 31.3.08 | 31.3.07 | Change % | 31.12.07 |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| Sales, EUR 1,000 | 126,774 | 107,297 | 18.2* | 496,428 |
--------------------------------------------------------------------------------
| Operating profit before | 17,416 | 16,657 | 4.6 | 95,963 |
| amortisation on intangible | | | | |
| assets resulting from | | | | |
| acquisitions (EBITA) | | | | |
--------------------------------------------------------------------------------
| Operating profit (EBIT) | 16,232 | 15,590 | 4.1 | 91,844 |
--------------------------------------------------------------------------------
| Profit before tax (EBT) | 11,321 | 11,627 | -2.6 | 75,808 |
--------------------------------------------------------------------------------
| Profit for the period | 8,006 | 8,721 | -8.2 | 57,485 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share (EPS) | 0.30 | 0.32 | -6.3 | 2.00 |
| before amortisation on | | | | |
| intangible assets resulting | | | | |
| from acquisitions, diluted, | | | | |
| EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share (EPS), | 0.26 | 0.29 | -10.3 | 1.88 |
| undiluted, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share (EPS), | 0.26 | 0.28 | -7.1 | 1.87 |
| diluted, EUR | | | | |
--------------------------------------------------------------------------------
| Equity per share, EUR | 11.16 | 9.75 | 14.5 | 10.88 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on equity, rolling | 17.7 | 16.7 | | 18.4 |
| 12-month ROE, % | | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 35.9 | 39.1 | | 37.3 |
--------------------------------------------------------------------------------
| Gearing, % | 126.5 | 106.9 | | 109.4 |
--------------------------------------------------------------------------------
| Net interest-bearing | 433,068 | 318,867 | 35.8 | 364,985 |
| liabilities, EUR 1,000 | | | | |
--------------------------------------------------------------------------------
| Gross capital expenditure, | 58,391 | 40,834 | 43.0 | 175,494 |
| EUR 1,000 | | | | |
--------------------------------------------------------------------------------
| % of sales | 46.1 | 38.1 | | 35.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Average personnel | 2,303 | 2,000 | 15.1 | 2,070 |
--------------------------------------------------------------------------------
* Growth from continuing operations 21.5 per cent
SUMMARY OF FINANCIAL PERFORMANCE IN JANUARY-MARCH 2008
Cramo Group's consolidated sales continued to develop favourably in the first
quarter of 2008, amounting to EUR 126.8 million. Sales increased in all market
areas. Compared to the corresponding period last year (EUR 107.3 million),
consolidated sales increased by 18.2 per cent. Sales growth from continuing
operations was 21.5 per cent. Organic growth was 19.3 per cent. Sales continued
to grow according to plan in the equipment rental business in the Nordic
countries and in the modular space business. Sales growth in Central and Eastern
Europe was 32.2 per cent. Excluding Estonia, sales grew by an impressive 59.8
per cent in this area. Investments and acquisitions completed during the first
quarter are expected to boost the Group's growth in the latter part of the year.
Improving rental penetration and equipment outsourcing will secure a sustained
growth in rental services.
EBITA for the first quarter amounted to EUR 17.4 (16.7) million, representing
13.7 (15.5) per cent of sales. EBITA increased by 4.6 per cent year on year, but
the Group's relative profitability decreased to a certain extent. EBITA
increased in the equipment rental business in Finland and Sweden and, in
particular, in the modular space business. Significant growth investments
continued to affect the profitability of the equipment rental business in
Western Europe. In Central and Eastern Europe, profitability weakened markedly
from the previous year. This was due to decelerating growth in the Baltic
countries and the start-up of Cramo Rentakran's operations in Russia. Cramo has
initiated measures to adjust its equipment investments in the Baltic countries
and to improve its profitability in Western Europe. When comparing Cramo's
performance with the previous year's figures, the timing of Easter in March 2008
should also be taken into account, which has caused a shift of three building
days between March and April.
Cramo continued to invest in all of its markets areas. In the Baltic countries
the Group aligned its investments with the current market conditions. In
addition, Cramo completed a number of important acquisitions. The acquisition of
Techniline was a significant step as Cramo now became market leader in the Czech
Republic. At the same time Cramo made an entry into the Slovak market. With the
acquisition of Tapeks Noma Cramo strengthened its market position in Latvia. The
acquisition of Kranab took Cramo to a lead position in access equipment rental
in Sweden.
outlook for the next 12 months
In spite of the instability of the financial markets and economic developments
in the US, a good demand for rental services is expected to continue in Cramo's
main markets. Growth in construction coupled with major infrastructure projects
in industry and the public sector will continue to fuel growth in the equipment
rental business. Nordic construction is expected to continue its growth, but at
a lower rate than in previous years. Although overall growth in construction is
affected by a decline in residential construction, industrial and commercial
construction together with civil engineering projects will continue to grow.
Central and Eastern Europe are expected to see sustained strong growth in
construction. In the Baltic countries, in spite of good long-term growth
prospects, the market is temporarily down. Equipment rental services are
expected to expand at a faster rate compared to general growth in construction,
due to increasing penetration rates, increased equipment outsourcing and growth
in the demand for rental-related services. Continued growth is also anticipated
in the demand for modular space. This demand is supported by relocations,
demographic changes and the industry's needs for increasingly flexible building
solutions.
Growing demand and the geographic expansion of operations will require
substantial capital expenditure also in 2008.
In line with its strategy, the Group intends to further enhance its position in
all of its market areas. The Group will continue to map out its growth potential
both in the Nordic countries and in Central and Eastern Europe. The supply of
modular space in Central and Eastern Europe is seen as a new growth opportunity.
The Group reconfirms its sales growth guidance at above 18% and an EBITA above
18% of sales in 2008, in line with the Group's financial targets. However,
macroeconomic developments may change this picture.
SALES AND PROFIT
Cramo is a service company specialising in equipment rental services, as well as
the rental and sale of modular space. Its equipment rental services comprise
construction machinery and equipment rentals and rental-related services. These
rental-related services include construction site and installation services. As
one of the industry's leading service, providers in the Nordic countries and
Central and Eastern Europe, Cramo Plc operates in Finland, Sweden, Norway,
Denmark, Estonia, Latvia, Lithuania, Poland, the Czech Republic and Russia.
Cramo's consolidated sales continued to develop favourably. Consolidated sales
amounted to EUR 126.8 million. Compared to the corresponding period last year
(EUR 107.3 million), consolidated sales increased by 18.2 per cent. Sales were
boosted by the continuing favourable demand in Finland and in Sweden, the
acquisitions completed in the second half of 2007, and the expansion of the
depot network.
The equipment rental business reported sales of EUR 110.3 (91.3) million, up
20.9 per cent. Excluding the Netherlands (sold in 2007), sales growth was 24.9
per cent.
The modular space business recorded sales of EUR 18.5 (17.8) million, up 3.6 per
cent. Modular space rental grew by over 20 per cent year on year, in accordance
with Cramo's strategy.
Inter-segment sales (equipment rental and modular space) came to EUR 1.9 (1.8)
million.
Consolidated operating profit before amortisation on intangible assets from
acquisitions (EBITA) was 17.4 (16.7) million, 13.7 (15.5) per cent of
consolidated sales. EBITA increased by 4.6 per cent year on year, but the
Group's relative profitability decreased to a certain extent. Strong growth
investments in Western Europe and Russia, and decelerating growth in the Baltic
counties, weakened profitability. When comparing Cramo's performance with the
previous year's figures, the timing of Easter in March 2008 should also be taken
into account, which has caused a shift of three building days between March and
April.
Consolidated operating profit (EBIT) was EUR 16.2 (15.6) million, representing
12.8 per cent of sales.
EBITA for the equipment rental business amounted to EUR 13.3 (15.4) million,
down 13.8 per cent year on year, representing 12.0 (16.9) per cent of sales. For
the modular space business, EBITA totalled EUR 5.7 (4.8) million, up 19.9 per
cent year on year, and was 30.9 (26.7) per cent of sales.
Profit before tax was EUR 11.3 (11.6) million, while profit for the period
totalled EUR 8.0 (8.7) million. Undiluted earnings per share were EUR 0.26
(0.29) and diluted earnings per share EUR 0.26 (0.28).
Return on investment (rolling 12-month ROI) stood at 13.2 per cent and return on
equity (rolling 12-month ROE) at 17.7 per cent.
CAPITAL EXPENDITURE AND DEPRECIATION/AMORTISATION
Gross capital expenditure of EUR 58.4 (40.8) million was mainly allocated to the
purchase of rental equipment. Company acquisitions carried out during the period
under review are not included in gross capital expenditure. In 2008, Cramo
Group's investments will increase from the previous year and be more strongly
focused towards Central Europe and Russia.
Reported depreciation on property, plant and equipment and software totalled EUR
18.7 (14.3) million. Amortisation on intangible assets resulting from
acquisitions totalled EUR 1.2 million. At the end of the period, goodwill
totalled EUR 152.8 million.
FINANCIAL POSITION AND BALANCE SHEET
The Group showed a positive net cash flow of EUR 16.4 (27.4) million from
operating activities. The cash flow from operating activities was affected by a
change in working capital of EUR -9.7 (2,4) million, which is normal fluctuation
in working capital. Net cash flow used in investing activities was EUR -84.5
(-40.6) million, of which EUR -28.5 million related to acquisitions. Net cash
flow used in financing activities amounted to EUR 64.5 (-13.3) million. At the
end of the period, cash and cash equivalents amounted to EUR 14.9 (14.4)
million, with the net change coming to EUR -3.6 (-26.5) million.
At the end of the period, Cramo Group's gross interest-bearing liabilities
totalled EUR 447.9 (333.3) million. The Group has used interest-rate swaps of
approximately EUR 138.8 million to hedge its non-current loans, and applied
hedge accounting to approximately EUR 134.1 million.
On 31 March 2008, Cramo Group's net interest-bearing liabilities totalled EUR
433.1 (318.9) million with gearing at 126.5 (106.9) per cent. The growth in
gearing occurred as expected, being the result of the Group's investments and
acquisitions in early 2008.
Consolidated balance sheet total on 31 March 2008 stood at EUR 961.4 (769.9)
million and the equity ratio was 35.9 (39.1) per cent.
Property, plant and equipment amounted to EUR 526.7 (391.8) million, with
equipment rental representing EUR 397.8 million, or 75.5 per cent, and modular
space representing EUR 128.9 million, or 24.5 per cent. Receivables in
non-current assets include prepayments for acquisitions made in the end of March
totalling EUR 28.5 million. The acquisitions will be consolidated into the Group
as of April 1, 2008.
Net working capital on 31 March 2008 amounted to EUR 37.9 million, with
equipment rental representing EUR 35.1 million, or 92.5 per cent, and modular
space representing EUR 2.8 million, or 7.5 per cent. Inventories amounted to EUR
18.3 million, with modular space representing EUR 11.6 million, or 63.7 per
cent.
GROUP STRUCTURE
At the end of the period under review, the operating companies of Cramo Group
consisted of the parent company and its subsidiaries in Finland, Sweden, Norway,
Denmark, Estonia, Latvia, Lithuania and Poland, as well as Cramo Instant Oy's
subsidiaries in Finland and Suomen Tähtivuokraus Oy's subsidiaries in Poland,
the Czech Republic and St. Petersburg, Russia. Cramo Plc also has a 75-per cent
holding in Cramo JV Oy, which has a subsidiary, ZAO Cramo Rentakran, in Russia.
Equipment rental services are provided through a network of 272 depots. Cramo
Instant Oy in Finland and Cramo Instant AB in Sweden, Norway and Denmark are
engaged in the modular space business.
BUSINESS DEVELOPMENT
During the period under review, Cramo expanded its business operations in the
Czech Republic, Latvia and Sweden through acquisitions.
On 7 March 2008, Cramo signed a letter of intent with Techniline s.r.o
(Techniline) to acquire the entire share capital of the company, and the
acquisition was confirmed on 26 March 2008. Established in 1990, Techniline is
the leading equipment rental services company in the Czech Republic, with
operations also in Slovakia. The company has depots in Prague, Pardubice and
Ostrava as well as in Bratislava and Kosice in Slovakia. The company's customers
include leading national and international construction companies and industrial
organisations. Techniline has over 70 employees, and its sales in 2007 exceeded
EUR 8 million.
Techniline will be integrated into the Group as of 1 April 2008. Following the
acquisition, Cramo will become the market leader in the rapidly growing,
well-developed equipment rental market in the Czech Republic. The acquisition
also provides Cramo with an entry to the Slovakian market, where rental
penetration is still rather low. The existing operations of Cramo s.r.o in the
Czech Republic will be integrated into Techniline during 2008. Cramo will make
considerable investments into the development of the company and its rental
equipment in 2008.
In March, Cramo also signed an agreement to acquire the entire share capital of
SIA Tapeks Noma in Latvia, and the acquisition was completed on 17 April 2008.
The Tapeks Group is the leading Latvian wholesale supplier of general
construction equipment and building machinery. Its subsidiary Tapeks Noma,
established in 2003, has provided equipment rental services in 16 depots. Tapeks
Noma has 70 employees, and its sales in 2007 amounted to approximately EUR 4
million. Tapeks Noma will be integrated into the Cramo Group as of 1 May 2008.
Following the acquisition, Cramo becomes the second-largest rental services
provider in the Latvian market.
In March, Cramo Sverige AB, the Swedish wholly-owned subsidiary of Cramo Plc,
acquired the entire share capital of Kranab, an access equipment rental company
operating in the Stockholm area. Kranab has a rental fleet of approximately 650
units and an excellent track record in major rental projects. Kranab has a staff
of 15 employees and recorded sales of EUR 7.2 million in the financial year,
ending on 30 April 2007. Kranab will be integrated into the Group as of 1 April
2008.
The personnel and management of all of the acquired companies will continue
their employment with Cramo.
Cramo's vision is to be the preferred rental solutions provider in the eyes of
customers. Cramo aims to rank among the two largest industry players in every
market it operates in, and to be one of the most profitable companies in the
industry. Cramo aims at growth both organically and through acquisitions.
HUMAN RESOURCES AND CHANGES IN MANAGEMENT
During the period under review, Group staff averaged 2,303 (2,000). The
equipment rental business had an average of 2,068 (1,767) employees and the
modular space business 235 (233) employees. The number of employees at the end
of the period was 2,335.
The geographical distribution of personnel at the end of the period was as
follows: Finland 35.0%, Sweden 28.4%, Western Europe 14.5% and Central and
Eastern Europe 22.1%.
Sales and customer service skills training remained a focus area in human
resources development, and the deployment of the Cramo concept based on total
solutions continued throughout the depot network. An extensive management
leadership training programme was also initiated for business performance
management in Central and Eastern Europe.
Mr Magnus Rosén, Senior Vice President responsible for the Swedish and Western
European operations, announced his resignation in January.
PERFORMANCE BY BUSINESS SEGMENT
Cramo Plc's business consists of the following two business segments: equipment
rental and modular space. The equipment rental business segment is also reported
by geographic segment as follows: Finland, Sweden, Western Europe (Norway and
Denmark) and Central and Eastern Europe (Estonia, Latvia, Lithuania, Poland, the
Czech Republic and Russia and, as of 1 April 2008, Slovakia). The Central and
Eastern Europe segment was previously called Other Europe.
EQUIPMENT RENTAL
The equipment rental business reported sales of EUR 110.3 (91.3) million, up
20.9 per cent. Sales by geographical segment were as follows: Finland 16.3
(16.2) per cent, Sweden 49.9 (51.1) per cent, Western Europe 20.8 (20.8) per
cent and Central and Eastern Europe 13.0 (11.8) per cent.
EBITA for the equipment rental business amounted to EUR 13.3 (15.4) million,
representing 12.0 (16.9) per cent of sales.
The business segment's major customers operate in the construction sector and
manufacturing industry. In addition, the segment provides services to the public
sector and private customers.
Finland
The equipment rental business in Finland reported sales of EUR 18.0 (14.8)
million, showing an increase of 21.6 per cent. EBITA totalled EUR 1.3 (1.2)
million, up 12.6 per cent, and was 7.4 (8.0) per cent of sales.
The sales and performance of the equipment rental business in Finland developed
as planned in the first quarter. Demand for rental services and related services
in particular continued to grow throughout the country. The investments in
organisational development made in 2007 have also boosted the efficiency of
operations in Finland.
According to the Federation of Finnish Construction Industries (RT),
construction grew by 7.5 per cent in Finland in 2007. Based on the forecast
published by RT in April, construction will grow by 4.0 per cent in 2008 and by
1.5 per cent in 2009. The most significant growth is expected in commercial
construction. The growth in civil engineering will also continue strongly, and
renovation projects will increase steadily. RT predicts a decrease in housing
construction, particularly in single-family home construction.
Sweden
In Sweden, the equipment rental business recorded sales of EUR 55.0 (46.6)
million, showing an increase of 17.9 per cent. EBITA totalled EUR 10.0 (9.9)
million, up 1.6 per cent, and was 18.2 (21.1) per cent of sales.
Demand continued strong in Sweden during the period under review. While Cramo's
sales developed as anticipated, its financial performance remained somewhat
below the set targets. An increase in subrental expenses and the increased share
of lower-margin services affected profitability.
The most significant new customer agreement was signed with Skanska Sverige in
January, whereby Cramo was appointed as the preferred supplier of access
equipment. At this date the agreement concerns Sweden, but it may also be
extended to other Skanska companies in Nordic countries. The annual volume of
the agreement is approximately EUR 6.5 million. The initial agreement period is
valid until the end of 2009.
In accordance with the forecast published by the Swedish Construction Federation
(Sveriges Byggindustrier) in March 2008, the construction growth rate in Sweden
in 2007 was approximately seven per cent. Growth is expected to stabilise at
four per cent in 2008 and at two per cent in 2009. Growth will be slowed by a
decline in the growth of housing construction, although commercial construction
will continue to grow strongly. The non-availability of labour and equipment may
continue to hold back growth.
Western Europe
Cramo's equipment rental business in Western Europe consists of its Norwegian
and Danish operations. The comparison figures for the first quarter in 2007 also
include the Dutch business that Cramo divested on 1 April 2007.
In Western Europe, the equipment rental business recorded sales of EUR 23.0
(19.0) million, showing an increase of 21.0 per cent. Compared with the
comparison sales for 2007 excluding the Netherlands, the year on year growth
rate was 43.3 per cent.
EBITA totalled EUR 0.4 (1.6) million, or 1.9 (8.6) per cent of sales. Comparable
EBITA for 2007, or EBITA for 2007 excluding the Netherlands, was EUR 1.4
million. Comparable EBITA for the period under review was down 69.4 per cent.
While sales growth was in line with the targets in both Norway and Denmark, the
opening of new depots at the end of 2007 and in the beginning of 2008, and the
implementation of the outsourcing agreement with Skanska had a negative impact
on profitability. New depots will also be opened during the first half of 2008.
Cramo has initiated measures aimed at improving profitability, anticipating
results to become visible in the second half of the year.
Euroconstruct has estimated that construction growth will decelerate to 0.6 per
cent, while forecasting an upturn of 0.5 per cent in Denmark in 2008.
Central and Eastern Europe
Cramo Group's equipment rental business sales in Central and Eastern Europe
(previously Other Europe) come from Estonia, Latvia, Lithuania, Poland, the
Czech Republic, Russia and, as of 1 April 2008, Slovakia.
Sales in the rental business in Central and Eastern Europe amounted to EUR 14.3
(10.8) million, showing an increase of 32.2 per cent. Sales growth in Central
and Eastern Europe, Estonia excluded, was 59.8 per cent. EBITA totalled EUR 1.5
(2.7) million, or 10.3 (25.1) per cent of sales.
The decrease in the EBITA percentage was due to weakening demand in Estonia,
Latvia and Lithuania, as well as a slowdown in construction, and the expansion
investments made by the joint venture Cramo Rentakran in Russia. Cramo has
initiated measures to adapt its equipment investments and equipment utilisation
in the Baltic countries.
During the period under review, Cramo expanded its operations through
acquisitions in the Czech Republic and Latvia, and also entered the market in
Slovakia. Following the acquisition of Techniline, Cramo became the leading
provider of equipment rental services in the Czech Republic. The acquisition of
the Latvian company SIA Tapeks Noma made Cramo the second largest equipment
rental services provider in the Latvian market. Following this acquisition,
Cramo Group's network in the Baltic countries now consists of 54 depots. The
Moscow-based Cramo Rentakran expanded its operations to the Yekaterinburg area.
The company is also investigating expansion opportunities to other growth areas
in Russia.
The Russian market has developed strongly and there are a large number of major
construction projects being launched in this area. Construction is also active
in Poland. In the Baltic countries, particularly in Estonia, the number of new
residential construction projects decreased markedly in the first quarter.
Cramo continues to aim at consolidating its position in the growing Central and
Eastern European market, in both new and existing market areas. While the growth
rate for the period remained below the targeted level in Central and Eastern
Europe, due to decelerating growth in the Baltic countries, the investments and
acquisitions completed during the first quarter are expected to boost growth
during the year. While strong expansion will affect the overall profitability
for 2008, Cramo expects its profitability to remain at a good level.
In Central and Eastern Europe, booming construction and a rising rental
penetration rate fuel the demand for rental services. Euroconstruct has
estimated that construction will grow by 9.5 per cent in Russia in 2008. Growth
will be seen in civil engineering projects, residential construction and
commercial construction. According to the estimate of VTT Technical Research
Centre of Finland, the growth rate in the Baltic countries will slow down to 2-8
per cent in 2008, primarily due to slower residential construction. VTT's growth
estimate for Poland in 2008 is 15.2 per cent. This growth rate is driven by
major infrastructure projects in particular. The growth estimate for the Czech
construction market is 3.7 per cent.
MODULAR SPACE
The modular space business recorded sales of EUR 18.5 (17.8) million. Sales were
up 3.6 per cent compared with the first quarter in 2007. Modular space rental
grew by over 20 per cent year on year, whereas the sales of modular space was
clearly less than a year earlier. EBITA totalled EUR 5.7 (4.8) million, or 30.9
(26.7) per cent of sales. EBITA showed an increase of 19.9 per cent, and also
the relative profitability improved clearly.
Sales and performance developed favourably in all of the Nordic countries. Both
utilisation rates and the order book value remained high. The share of the
rental business increased and prices remained high, which also boosted
profitability. Cramo aims to increase the share of long-term rental agreements
in proportion to sales operations.
The vast majority of sales in the modular space business are generated in the
Finnish and Swedish markets. The modular space business also involves operations
in Norway and Denmark, where there is increasing interest in this business
segment. While the Finnish operations involve the rental, sale and manufacture
of modular space, the Swedish, Norwegian and Danish operations only cover their
rental and sale. Rental operations account for more than 70 per cent of sales.
Modular space refers to highly prefabricated and pre-equipped building modules
that can be moved as space requirements change. The most important applications
include schools, day-care centres and offices, as well as expansion investments
in the industry. The need for modular space is increasing in the public sector
in particular.
SALES BY GEOGRAPHIC SEGMENT
Cramo Group's secondary segment reporting format is based on geographic
segments. Finland generated EUR 26.8 (25.2) million or 20.5 (22.9) per cent of
the total consolidated sales, Sweden EUR 62.9 (54.8) million or 48.1 (49.9) per
cent, Western Europe EUR 26.1 (19.0) million or 20.0 (17.3) per cent and Central
and Eastern Europe EUR 15.0 (10.8) million or 11.5 (9.8) per cent. These figures
include both the equipment rental business and the modular space business.
SHARES AND SHARE CAPITAL
On 31 March 2008, Cramo Plc had a share capital of EUR 24,834,753.09 and the
total number of shares was 30,660.189.
CHANGES IN SHAREHOLDINGS
UBS AG notified Cramo that shares held by UBS AG (Switzerland) and UBS AG London
Branch in Cramo Plc had exceeded the five per cent limit on 28 January 2008. At
this date the company held a total of 1,677,610 Cramo Plc shares, representing
5.47 per cent of shares and votes.
VALID BOARD AUTHORISATIONS
During the period under review, the Board did not have any valid authorisations
to issue convertible bonds, increase the share capital or buy back its own
shares.
EVENTS AFTER THE BALANCE SHEET DATE
On 1 April 2008, Cramo Sverige AB, the Swedish wholly-owned subsidiary of Cramo
Plc, acquired the entire share capital of Hyrmaskiner i Bollnäs AB. Operating
under the Tidermans trade mark, Hyrmaskiner i Bollnäs AB focuses primarily on
the rental of building machinery in Bollnäs, in central Sweden. The company's
customers consist mainly of small and medium-sized local construction companies.
Its annual sales total approximately EUR 1.1 million.
On 7 April 2008, Cramo Finland Oy, the Finnish wholly-owned subsidiary of Cramo
Plc, signed an agreement concerning the acquisition of the entire share capital
of Pohjolan Teline Oy, which operates in the Kemi-Tornio area. Pohjolan Teline
began its business operations in 1989. The company has 10 employees, and its
annual sales total approximately EUR 1.0 million. The acquisition strengthens
Cramo's market position in northern Finland, particularly among industrial
enterprises.
Ms Pirjo Saarni, M.Sc. (Psych.), was appointed Vice President, Human Resource
Development at Cramo Plc as of 7 April 2008. She reports to Vesa Koivula,
President and CEO. Saarni transfers to Cramo from Vahanen Oy where she worked as
Human Resource Manager.
On 18 April 2008, Cramo Plc announced it has signed an agreement on the sale of
nine of its real estate properties in Finland to Aberdeen Property Fund Finland
I Ky and one or several companies owned by Aberdeen Property Fund Finland I Ky.
The agreement includes a leaseback of the properties with 10-year contracts. The
sold properties include the Cramo headquarters in Vantaa. The agreement entered
into force on 30 April 2008. The resulting capital gain is estimated at roughly
EUR 3.9 million, to be booked in other operating income of Cramo Group during
the second quarter in 2008. Cramo is also in the process of selling six of its
other properties in Finland, which are not included in the above-mentioned
agreement. Some of the properties were sold during the first quarter of 2008,
and Cramo expects to sell the remaining properties by the end of June. Cramo
anticipates booking a capital gain of approximately EUR 1.0-1.3 million in total
for the individually sold properties.
On 23 April 2008, the Annual General Meeting of Shareholders of Cramo Plc
reviewed the matters falling within its scope under the Articles of Association,
the Board of Directors' proposals concerning the authorisation to acquire its
own shares and transfer treasury shares, and the Board's proposals concerning
the authorisation to decide on share issue and issuing special rights entitling
to shares.
The Annual General Meeting adopted the consolidated financial statements and the
parent company's financial statements for the financial year 2007, and
discharged the members of the Board of Directors and the CEO from liability. The
dividend was confirmed at EUR 0.65 per share.
The number of the members of the Board of Directors was confirmed as seven (7).
The following Board members were re-elected: Mr Stig Gustavson, Mr Gunnar
Glifberg, Mr Eino Halonen, Mr Hannu Krogerus, Mr Esko Mäkelä and Mr Juhani
Nurminen. Mr Fredrik Cappelen was elected as the new member to the Board of
Directors.
The Annual General meeting confirmed the remuneration payable to the Chairman of
the Board of Directors as EUR 60,000, to the Deputy Chairman as EUR 40,000 and
the other members of the Board as EUR 30,000 annually. Forty per cent of the
remuneration will be paid as Cramo Plc shares and the remaining 60 per cent in
cash. The remuneration for the non-Finnish Board members may be paid fully in
cash. An attendance fee of EUR 1,000 per each Board Committee meeting was also
confirmed.
APA Tomi Englund and Ernst & Young Oy, firm of authorised public accountants
with APA Erkka Talvinko as the auditor with principal responsibility, were
appointed as the company's auditors.
The Annual General Meeting authorised the Board of Directors to decide on the
acquisition of a maximum of 3,066,000 of the company's own shares in one or
several tranches. The company, together with its subsidiaries, cannot at any
time hold more than 10 per cent of all of its registered shares. The shares will
be acquired as a directed acquisition through the OMX Nordic Exchange
(Helsinki). The minimum consideration paid for the shares will correspond to the
lowest price quoted for the share in public trading and the maximum
consideration the highest price similarly quoted within the validity period of
the authorisation. The Board of Directors shall decide on the means of
acquisition and other terms for the acquisition. Derivatives may also be used in
the acquisition. Under the authorisation, own shares may only be acquired using
the company's unrestricted equity; thus, the acquisition of own shares will
reduce the company's distributable equity.
The Annual General Meeting authorised the Board of Directors to decide on the
transfer of treasury shares in one or several tranches. The maximum number of
shares that may be transferred is 3,066,000. The Board of Directors shall decide
on the terms for the transfer of treasury shares. The transfer may be carried
out as a directed share issue, provided that a weighty financial reason exists
for the company to do so. The Board of Directors can act on this authorisation
in order to grant option rights and other special rights entitling to shares,
pursuant to Chapter 10 of the Finnish Limited Liability Companies Act, yet not
to resolve upon the personnel option plan.
The Annual General Meeting authorised the Board of Directors to decide on a
share issue and issuing option rights, convertible bonds and other special
rights entitling to shares as referred to in Chapter 10, section 1, of the
Finnish Limited Liability Companies Act. Under the authorisation, the company
may issue a maximum total of 6,132,000 new shares in one or several tranches.
The Board of Directors may also resolve upon issuing new shares to the company
itself; however, the combined holdings of the company and its subsidiaries
cannot at any time exceed 10 per cent of the company's registered shares. Thus
the shares issued can be transferred further under the authorisation of the
Board of Directors to decide on the transfer of treasury shares, for example.
The Annual General Meeting authorized the Board of Directors to resolve upon all
of the terms for the share issue and granting of the special rights entitling to
shares. The authorisation does not allow the Board of Directors to resolve upon
the personnel option plan. The share issue and granting of special rights
entitling to shares may be carried out as a directed share issue, provided that
a weighty financial reason exists for the company to do so.
All of the authorisations granted by the Annual General Meeting shall remain in
force until the next Annual General Meeting of Shareholders, or no later than 23
September 2009.
At its constitutive meeting, the Board of Directors elected Mr Stig Gustavson as
its Chairman and Mr Eino Halonen as its Deputy Chairman. Mr Eino Halonen was
elected Chairman of the Audit Committee, with Mr Esko Mäkelä and Mr Juhani
Nurminen as members. Mr Stig Gustavson was elected Chairman of the Nomination
and Compensation Committee, with Mr Gunnar Glifberg and Mr Hannu Krogerus as
members.
On 25 April 2008, Cramo Plc received a notification from UBS AG, according to
which the holding of shares by UBS AG (Switzerland) and UBS AG London Branch in
Cramo Plc have crossed below the 5% threshold on 24 April 2008. The exact
proportion of voting rights and share capital of Cramo Plc: 100,299 shares and
0.33 percent of the shares and voting rights in total.
On 28 April 2008, Cramo Plc received the notification from Morgan Stanley,
according to which the holding of shares by Morgan Stanley & Co International
plc, Morgan Stanley & Co. Incorporated and MSDW Equity Financing Services in
Cramo Plc have crossed above the 5% threshold on 25 April 2008. The exact
proportion of voting rights and share capital of Cramo Plc: 2,629,852 shares and
8.57 percent of the shares and voting rights in total.
On 30 April 2008, Cramo Plc received a notification from Morgan Stanley,
according to which the holding of shares by Morgan Stanley & Co. International
plc and Morgan Stanley & Co. Incorporated in Cramo Plc have crossed below the 5%
threshold on 29 April 2008. The exact proportion of voting rights and share
capital of Cramo Plc: 1,194,006 shares and 3.89 percent of the shares and voting
rights in total.
On 30 April 2008, Cramo signed an agreement for additional long-term financing
of EUR 75 million in order to finance its growth strategy. The agreement is part
of Cramo's long-term syndicated loan facility.
On 5 May 2008, Cramo Plc received the notification from UBS AG, according to
which the holding of shares by UBS AG (Switzerland), UBS AG London Branch and
UBS O'Connor LLC in Cramo Plc have crossed above the 5% threshold on 2 May 2008.
The exact proportion of voting rights and share capital of Cramo Plc: 1,968,793
shares and 6.42 percent of the shares and voting rights in total.
On 6 May 2008, Cramo Plc received the notification from Morgan Stanley,
according to which the holding of shares by Morgan Stanley & Co. International
plc and Morgan Stanley & Co. Incorporated in Cramo Plc have crossed above the 5%
threshold on 2 May 2008. The exact proportion of voting rights and share capital
of Cramo Plc: 2,542,769 shares and 8.29 percent of the shares and voting rights
in total.
On 7 May 2008, Cramo Plc received the notification from Morgan Stanley,
according to which the holding of shares by Morgan Stanley & Co. International
plc and Morgan Stanley & Co. Incorporated in Cramo Plc have crossed below the 5%
threshold on 6 May 2008. The exact proportion of voting rights and share capital
of Cramo Plc: 1,172,239 shares and 3.82 percent of the shares and voting rights
in total.
outlook for the next 12 months
In spite of the instability of the financial markets and economic developments
in the US, a good demand for rental services is expected to continue in Cramo's
main markets. Growth in construction with major infrastructure projects in
industry and the public sector will continue to fuel growth in the equipment
rental business. Nordic construction is expected to continue its growth, but at
a lower rate than in previous years. Although overall growth in construction is
affected by a decline in residential construction, industrial and commercial
constructiontogether with civil engineering projects will continue to grow.
Central and Eastern Europe are expected to see sustained strong growth in
construction. In the Baltic countries, in spite of good long-term growth
prospects, the market is temporarily down. Equipment rental services are
expected to expand at a faster rate compared to general growth in construction,
due to increasing penetration rates, increased equipment outsourcing and growth
in the demand for rental-related services. Continued growth is also anticipated
in the demand for modular space. This demand is supported by relocations,
demographic changes and the industry's needs for increasingly flexible building
solutions.
Growing demand and the geographic expansion of operations will require
substantial capital expenditure also in 2008.
In line with its strategy, the Group intends to further enhance its position in
all of its market areas. The Group will continue to map out its growth potential
both in the Nordic countries and in Central and Eastern Europe. The supply of
modular space in Central and Eastern Europe is seen as a new growth opportunity.
The Group reconfirms its sales growth guidance at above 18% and an EBITA above
18% of sales in 2008, in line with the Group's financial targets. However,
macroeconomic developments may change this picture.
The data in this Interim Report is based on unaudited figures.
TABLES
This Financial Report has been prepared in accordance with IAS 34: Interim
Financial Reporting. The same accounting policies and definitions of key
financial figures have been adopted as in Cramo Plc's annual financial report
2007.
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | 31.3.08 | 31.3.07 | Change % | 31.12.07 |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | | |
--------------------------------------------------------------------------------
| Property, plant and | 526,737 | 391,833 | 34.4 | 487,038 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Goodwill | 152,806 | 150,731 | 1.4 | 152,367 |
--------------------------------------------------------------------------------
| Other intangible assets | 93,999 | 93,588 | 0.4 | 95,359 |
--------------------------------------------------------------------------------
| Available-for-sale | 318 | 318 | | 332 |
| investments | | | | |
--------------------------------------------------------------------------------
| Receivables | 32,889 | 1,606 | 1,947.9 | 3,954 |
--------------------------------------------------------------------------------
| Deferred income tax assets | 6,748 | 3,039 | 122.0 | 2,974 |
--------------------------------------------------------------------------------
| TOTAL NON-CURRENT ASSETS | 813,497 | 641,115 | 26.9 | 742,024 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | | |
--------------------------------------------------------------------------------
| Inventories | 18,259 | 16,669 | 9.5 | 16,903 |
--------------------------------------------------------------------------------
| Trade and other receivables | 114,775 | 97,736 | 17.4 | 117,548 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 14,854 | 14,387 | 3.2 | 18,489 |
--------------------------------------------------------------------------------
| TOTAL CURRENT ASSETS | 147,888 | 128,792 | 14.8 | 152,940 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 961,385 | 769,907 | 24.9 | 894,964 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | | |
--------------------------------------------------------------------------------
| EQUITY | | | | |
--------------------------------------------------------------------------------
| Share capital | 24,835 | 24,774 | 0.2 | 24,835 |
--------------------------------------------------------------------------------
| Share issue | | 258 | | |
--------------------------------------------------------------------------------
| Share premium fund | 186,910 | 186,712 | 0.1 | 186,910 |
--------------------------------------------------------------------------------
| Fair value reserve | 117 | 117 | | 117 |
--------------------------------------------------------------------------------
| Hedging fund | 4,132 | 3,718 | 11.1 | 6,334 |
--------------------------------------------------------------------------------
| Translation differences | -941 | -1,873 | -49.7 | -1,867 |
--------------------------------------------------------------------------------
| Retained earnings | 127,199 | 84,640 | 50.3 | 117,351 |
--------------------------------------------------------------------------------
| TOTAL EQUITY | 342,252 | 298,346 | 14.7 | 333,680 |
--------------------------------------------------------------------------------
| RESERVES | | | | |
--------------------------------------------------------------------------------
| Reserves | 292 | 323 | -9.6 | 363 |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Deferred income tax | 65,263 | 54,193 | 20.4 | 62,200 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Interest bearing | 281,361 | 300,212 | -6.3 | 274,087 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 105,657 | 83,791 | 26.1 | 115,247 |
--------------------------------------------------------------------------------
| Interest bearing | 166,560 | 33,042 | 404.1 | 109,387 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 618,841 | 471,238 | 31.3 | 560,921 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND | 961,385 | 769,907 | 24.9 | 894,964 |
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME | 1-3/08 | 1-3/07 | Change % | 1-12/07 |
| STATEMENT | | | | |
| 1 January - 31 March 2008 | | | | |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| SALES | 126,774 | 107,297 | 18.2 | 496,428 |
--------------------------------------------------------------------------------
| Other operating income | 1,675 | 994 | 68.5 | 7,798 |
--------------------------------------------------------------------------------
| Change in inventories in | 591 | 774 | -23.6 | 966 |
| finished goods and in work | | | | |
| in progress | | | | |
--------------------------------------------------------------------------------
| Production for own use | 4,710 | 3,124 | 50.8 | 15,379 |
--------------------------------------------------------------------------------
| Materials and services | -27,868 | -23,483 | 18.7 | -106,396 |
--------------------------------------------------------------------------------
| Employee benefits | -28,436 | -23,697 | 20.0 | -101,608 |
--------------------------------------------------------------------------------
| Depreciation | -18,700 | -14,291 | 30.9 | -62,356 |
--------------------------------------------------------------------------------
| Amortisation on intangible | -1,184 | -1,067 | 11.0 | -4,119 |
| assets resulting from | | | | |
| acquisitions | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -41,330 | -34,061 | 21.3 | -154,248 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 16,232 | 15,590 | 4.1 | 91,844 |
--------------------------------------------------------------------------------
| % of sales | 12.8 | 14.5 | | 18.5 |
--------------------------------------------------------------------------------
| Finance costs (net) | -4,911 | -3,963 | 23.9 | -16,036 |
--------------------------------------------------------------------------------
| PROFIT BEFORE TAXES | 11,321 | 11,627 | -2.6 | 75,808 |
--------------------------------------------------------------------------------
| % of sales | 8.9 | 10.8 | | 15.3 |
--------------------------------------------------------------------------------
| Income taxes | -3,315 | -2,906 | 14.1 | -18,323 |
--------------------------------------------------------------------------------
| PROFIT FOR THE PERIOD | 8,006 | 8,721 | -8.2 | 57,485 |
--------------------------------------------------------------------------------
| % of sales | 6.3 | 8.1 | | 11.6 |
--------------------------------------------------------------------------------
| Earnings per share, | 0.26 | 0.29 | -10.3 | 1.88 |
| undiluted, EUR | | | | |
--------------------------------------------------------------------------------
| Earnings per share, | 0.26 | 0.28 | -7.1 | 1.87 |
| diluted, EUR | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHAN | Sha- | Sha- | Share | Fair | Hed- | Trans- | Re- | Total |
| GES | re | re | pre- | va- | ging | lation | tained | |
| IN | ca- | is- | mium | lue | fund | diffe- | ear- | |
| GROU | pi- | sue | | re- | | rence | nings | |
| P'S | tal | | | ser- | | | | |
| EQUI | | | | ve | | | | |
| TY | | | | | | | | |
| (EUR | | | | | | | | |
| 1,00 | | | | | | | | |
| 0) | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | 24,508 | 143 | 185,836 | 117 | 3,301 | 2,818 | 75,521 | 292,244 |
| e | | | | | | | | |
| capi | | | | | | | | |
| tal | | | | | | | | |
| 1.1. | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
| Tran | | | | | | -4,691 | | -4,691 |
| slat | | | | | | | | |
| ion | | | | | | | | |
| diff | | | | | | | | |
| eren | | | | | | | | |
| ce | | | | | | | | |
--------------------------------------------------------------------------------
| Hedg | | | | | 417 | | | 417 |
| ing | | | | | | | | |
| fund | | | | | | | | |
--------------------------------------------------------------------------------
| Prof | | | | | | | 8,721 | 8,721 |
| it | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| peri | | | | | | | | |
| od | | | | | | | | |
--------------------------------------------------------------------------------
| Exer | 266 | -888 | 876 | | | | | 254 |
| cise | | | | | | | | |
| of | | | | | | | | |
| opti | | | | | | | | |
| ons, | | | | | | | | |
| regi | | | | | | | | |
| ster | | | | | | | | |
| ed | | | | | | | | |
--------------------------------------------------------------------------------
| Exer | | 1,003 | | | | | | 1,003 |
| cise | | | | | | | | |
| of | | | | | | | | |
| opti | | | | | | | | |
| ons, | | | | | | | | |
| unre | | | | | | | | |
| gist | | | | | | | | |
| ered | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | | | | | | | 398 | 398 |
| e | | | | | | | | |
| base | | | | | | | | |
| d | | | | | | | | |
| paym | | | | | | | | |
| ents | | | | | | | | |
--------------------------------------------------------------------------------
| Tota | 24,774 | 258 | 186,712 | 117 | 3,718 | -1,873 | 84,640 | 298,346 |
| l | | | | | | | | |
| equi | | | | | | | | |
| ty | | | | | | | | |
| at | | | | | | | | |
| 31.3 | | | | | | | | |
| . | | | | | | | | |
| 2007 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Shar | 24,835 | 0 | 186,910 | 117 | 6,334 | -1,867 | 117,351 | 333,680 |
| e | | | | | | | | |
| capi | | | | | | | | |
| tal | | | | | | | | |
| 1.1. | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
| Tran | | | | | | 925 | 1,091 | 2,016 |
| slat | | | | | | | | |
| ion | | | | | | | | |
| diff | | | | | | | | |
| eren | | | | | | | | |
| ce | | | | | | | | |
--------------------------------------------------------------------------------
| Hedg | | | | | -2,202 | | | -2,202 |
| ing | | | | | | | | |
| fund | | | | | | | | |
--------------------------------------------------------------------------------
| Prof | | | | | | | 8,006 | 8,006 |
| it | | | | | | | | |
| for | | | | | | | | |
| the | | | | | | | | |
| peri | | | | | | | | |
| od | | | | | | | | |
--------------------------------------------------------------------------------
| Exer | | | | | | | | 0 |
| cise | | | | | | | | |
| of | | | | | | | | |
| opti | | | | | | | | |
| ons, | | | | | | | | |
| regi | | | | | | | | |
| ster | | | | | | | | |
| ed | | | | | | | | |
--------------------------------------------------------------------------------
| Shar | | | | | | | 751 | 751 |
| e | | | | | | | | |
| base | | | | | | | | |
| d | | | | | | | | |
| paym | | | | | | | | |
| ents | | | | | | | | |
--------------------------------------------------------------------------------
| Divi | | | | | | | | 0 |
| dend | | | | | | | | |
| dist | | | | | | | | |
| ribu | | | | | | | | |
| tion | | | | | | | | |
--------------------------------------------------------------------------------
| Tota | 24,835 | 0 | 186,910 | 117 | 4,132 | -942 | 127,199 | 342,252 |
| l | | | | | | | | |
| equi | | | | | | | | |
| ty | | | | | | | | |
| at | | | | | | | | |
| 31.3 | | | | | | | | |
| . | | | | | | | | |
| 2008 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | 1-3/08 | 1-3/07 | 1-12/07 |
| (EUR 1,000) | | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATING | 16,422 | 27,412 | 138,653 |
| ACTIVITIES | | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTING | -84,473 | -40,599 | -175,234 |
| ACTIVITIES | | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING | | | |
| ACTIVITIES | | | |
--------------------------------------------------------------------------------
| Proceeds from issue of share | | 1,258 | 1,258 |
| capital | | | |
--------------------------------------------------------------------------------
| Dividends paid | | | -15,326 |
--------------------------------------------------------------------------------
| Increase(+)/decrease(-) in | 63,508 | -14,212 | 34,393 |
| liabilities | | | |
--------------------------------------------------------------------------------
| Increase(+)/decrease(-) in lease | 946 | -384 | -6,590 |
| liabilities | | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING | 64,454 | -13,338 | 13,735 |
| ACTIVITIES, TOTAL | | | |
--------------------------------------------------------------------------------
| NET CHANGE IN CASH AND CASH | -3,597 | -26,525 | -22,846 |
| EQUIVALENTS | | | |
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS AT | 18,489 | 41,283 | 41,823 |
| PERIOD-START | | | |
--------------------------------------------------------------------------------
| Translation difference | -38 | -514 | -488 |
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS FROM | | 143 | |
| ACQUISITIONS | | | |
--------------------------------------------------------------------------------
| CASH AND CASH EQUIVALENTS AT | 14,854 | 14,387 | 18,489 |
| PERIOD-END | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES | 31.3.08 | 31.3.07 | 31.12.07 |
| (EUR 1,000) | | | |
--------------------------------------------------------------------------------
| On own behalf | | | |
--------------------------------------------------------------------------------
| Mortgages on real estates | 5,663 | 5,663 | 5,663 |
--------------------------------------------------------------------------------
| Mortgages on companies | 83,317 | 77,487 | 77,489 |
--------------------------------------------------------------------------------
| Pledges | 80,156 | 107,212 | 159,759 |
--------------------------------------------------------------------------------
| Other contingent liabilities | 9,096 | 7,065 | 9,541 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| DERIVATIVE | 31.3.08 | 31.3.08 | 31.3.07 | 31.3.07 | 31.12.07 | 31.12.07 |
| FINANCIAL | | | | | | |
| INSTRUMENTS | | | | | | |
| (EUR 1,000) | | | | | | |
--------------------------------------------------------------------------------
| NV = nominal | NV | FV | NV | FV | NV | FV |
| value | | | | | | |
--------------------------------------------------------------------------------
| FV = fair | | | | | | |
| value | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Interest rate | | | | | | |
| derivatives | | | | | | |
--------------------------------------------------------------------------------
| Swaps | 138,809 | +4,386 | 149,636 | +5,024 | 138,395 | +5,492 |
--------------------------------------------------------------------------------
| Options | | | | | | |
--------------------------------------------------------------------------------
| Bought | | | | | | |
--------------------------------------------------------------------------------
| Written | | | | | | |
--------------------------------------------------------------------------------
| Foreign | 113,320 | +458 | | | 87,150 | -194 |
| exchange | | | | | | |
| contracts | | | | | | |
--------------------------------------------------------------------------------
| Forwards | | | 53,224 | -8 | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| KEY FIGURES | 31.3.08 | 31.3.07 | 31.12.07 |
--------------------------------------------------------------------------------
| Value of outstanding orders for | 99,241 | 97,598 | 94,559 |
| modular space, EUR 1,000 | | | |
--------------------------------------------------------------------------------
| Value of orders for modular space | 91,400 | 87,218 | 89,250 |
| rental, EUR 1,000 | | | |
--------------------------------------------------------------------------------
| Value of orders for sale of | 7,841 | 10,380 | 5,309 |
| modular space, EUR 1,000 | | | |
--------------------------------------------------------------------------------
| Gross capital expenditure, EUR | 58,391 | 40,834 | 175,494 |
| 1,000 | | | |
--------------------------------------------------------------------------------
| % sales | 46.1 | 38.1 | 35.4 |
--------------------------------------------------------------------------------
| Average personnel | 2,303 | 2,000 | 2,070 |
--------------------------------------------------------------------------------
| Earnings per share, undiluted, | 0.26 | 0.29 | 1.88 |
| EUR | | | |
--------------------------------------------------------------------------------
| Earnings per share, diluted 1), | 0.26 | 0.28 | 1.87 |
| EUR | | | |
--------------------------------------------------------------------------------
| Shareholders' equity per share | 11.16 | 9.75 | 10.88 |
| 2), EUR | | | |
--------------------------------------------------------------------------------
| Equity ratio, % | 35.9 | 39.1 | 37.3 |
--------------------------------------------------------------------------------
| Net interest-bearing liabilities, | 433,068 | 318,867 | 364,985 |
| EUR 1,000 | | | |
--------------------------------------------------------------------------------
| Gearing, % | 126.5 | 106.9 | 109.4 |
--------------------------------------------------------------------------------
| Issue-adjusted average number of | 30,660,189 | 30,440,609 | 30,586,040 |
| shares | | | |
--------------------------------------------------------------------------------
| Issue-adjusted number of shares | 30,660,189 | 30,660,189 | 30,660,189 |
| at the period-end | | | |
--------------------------------------------------------------------------------
| Number of shares adjusted by the | 30,771,826 | 31,007,541 | 30,815,560 |
| dilution effect of share options | | | |
--------------------------------------------------------------------------------
1) Adjusted by the dilution effect of shares entitled by warrants
2) Number of shares registered at the end of the period
INFORMATION BY BUSINESS SEGMENT (EUR 1,000)
The Group's primary segments comprise the equipment rental business and the
modular space business. The secondary, geographic segments consist of Finland,
Sweden, Western Europe and Central and Eastern Europe. The equipment rental
business' sales are also stated by geographic segment.
--------------------------------------------------------------------------------
| Sales by business segment, | 1-3/08 | 1-3/07 | Change % | 1-12/07 |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| Equipment rental | | | | |
--------------------------------------------------------------------------------
| - Finland | 18,011 | 14,814 | 21.6 | 75,761 |
--------------------------------------------------------------------------------
| - Sweden | 54,994 | 46,636 | 17.9 | 214,515 |
--------------------------------------------------------------------------------
| - Western Europe | 22,990 | 19,000 | 21.0 | 77,462 |
--------------------------------------------------------------------------------
| - Other Europe | 14,300 | 10,814 | 32.2 | 58,202 |
--------------------------------------------------------------------------------
| Equipment rental, total | 110,295 | 91,264 | 20.9 | 425,940 |
--------------------------------------------------------------------------------
| - between the segments | -48 | -43 | 11.6 | -227 |
--------------------------------------------------------------------------------
| Modular space | 18,451 | 17,807 | 3.6 | 76,733 |
--------------------------------------------------------------------------------
| - between the segments | -1,924 | -1,730 | 11.2 | -6,017 |
--------------------------------------------------------------------------------
| Eliminations | -1,972 | -1,773 | 11.2 | -6,244 |
--------------------------------------------------------------------------------
| Sales, total | 126,774 | 107,297 | 18.2 | 496,428 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Netherlands' share of Western | 0 | 2,954 | | 2,954 |
| Europe | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating profit (EBITA) | 1-3/08 | 1-3/07 | Change % | 1-12/07 |
| before amortisation on | | | | |
| intangible assets resulting | | | | |
| from acquisitions by business | | | | |
| segment, | | | | |
| (EUR 1,000) | | | | |
--------------------------------------------------------------------------------
| Equipment rental | | | | |
--------------------------------------------------------------------------------
| - Finland | 1,339 | 1,189 | 12.6 | 14,493 |
--------------------------------------------------------------------------------
| - Sweden | 10,018 | 9,857 | 1.6 | 47,952 |
--------------------------------------------------------------------------------
| - Western Europe | 442 | 1,638 | -73.0 | 10,513 |
--------------------------------------------------------------------------------
| - Other Europe | 1,475 | 2,717 | -45.7 | 17,082 |
--------------------------------------------------------------------------------
| Equipment rental, total | 13,272 | 15,401 | -13.8 | 90,040 |
--------------------------------------------------------------------------------
| Modular space | 5,701 | 4,755 | 19.9 | 19,358 |
--------------------------------------------------------------------------------
| Non-allocated Group activities | -1,185 | -3,229 | -63.3 | -12,859 |
--------------------------------------------------------------------------------
| Eliminations | -372 | -270 | 37.8 | -576 |
--------------------------------------------------------------------------------
| Operating profit, total | 17,416 | 16,657 | 4.6 | 95,963 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Netherlands' share of Western | 0 | 193 | | 193 |
| Europe | | | | |
--------------------------------------------------------------------------------
Non-allocated Group activities include expenses resulting from Group management,
Group financial management and financing, as well as other Group-level expenses
related to projects.
--------------------------------------------------------------------------------
| EBITA-% by business segment | 1-3/08 | 1-3/07 | 1-12/07 |
--------------------------------------------------------------------------------
| Equipment rental | | | |
--------------------------------------------------------------------------------
| - Finland | 7.4 | 8.0 | 19.1 |
--------------------------------------------------------------------------------
| - Sweden | 18.2 | 21.1 | 22.4 |
--------------------------------------------------------------------------------
| - Western Europe | 1.9 | 8.6 | 13.6 |
--------------------------------------------------------------------------------
| - Other Europe | 10.3 | 25.1 | 29.3 |
--------------------------------------------------------------------------------
| Equipment rental, total | 12.0 | 16.9 | 21.1 |
--------------------------------------------------------------------------------
| Modular space | 30.9 | 26.7 | 25.2 |
--------------------------------------------------------------------------------
| Non-allocated Group activities | | | |
--------------------------------------------------------------------------------
| EBITA-%, total | 13.7 | 15.5 | 19.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Western Europe without | 1.9 | 9.0 | 13.9 |
| Netherlands | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales by geographical segment | 1-3/08 | 1-3/07 | Change % | 1-12/07 |
| (EUR 1,000); sales generated by | | | | |
| both the equipment rental | | | | |
| business and the modular space | | | | |
| business are included in the | | | | |
| geographical segments. | | | | |
--------------------------------------------------------------------------------
| Finland | 26,818 | 25,163 | 6.6 | 113,416 |
--------------------------------------------------------------------------------
| Sweden | 62,855 | 54,812 | 14.7 | 248,456 |
--------------------------------------------------------------------------------
| Western Europe | 26,087 | 19,000 | 37.3 | 85,177 |
--------------------------------------------------------------------------------
| Other Europe | 14,991 | 10,814 | 38.6 | 58,278 |
--------------------------------------------------------------------------------
| Eliminations | -3,976 | -2,490 | 59.7 | -8,897 |
--------------------------------------------------------------------------------
| Sales, total | 126,774 | 107,297 | 18.2 | 496,428 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Netherlands' share of Western | 0 | 2,954 | | 2,954 |
| Europe | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| FINANCIAL | 1-3/08 | 10-12/07 | 7-9/07 | 4-6/07 | 4/07- | 1-12/07 |
| PER- | | | | | 3/08 | |
| FORMANCE | | | | | | |
| BY | | | | | | |
| QUARTERS | | | | | | |
--------------------------------------------------------------------------------
| Sales | 126,774 | 143,773 | 128,962 | 116,396 | 515,905 | 496,428 |
--------------------------------------------------------------------------------
| EBITA | 17,416 | 26,144 | 30,736 | 22,426 | 96,722 | 95,963 |
--------------------------------------------------------------------------------
| EBITA-% | 13.7 | 18.2 | 23.8 | 19.3 | 18.7 | 19.3 |
--------------------------------------------------------------------------------
RELATED PARTY TRANSACTIONS
During the period under review, there were no material transactions with related
parties.
BRIEFING
Cramo will hold a briefing and a live webcast at the conference room of the
Palace Gourmet restaurant, Eteläranta 10, Helsinki, on Tuesday 13 May 2008 at 11
a.m. The briefing will be in English.
To watch the briefing live on the Internet, go to www.cramo.com. A replay of the
webcast will be available at www.cramo.com as of 13 May 2008 in the afternoon.
The January-June Interim Report will be published on Tuesday, 12 August 2008,
and the January-September Interim Report on Tuesday, 11 November 2008.
The data in this Interim Report is based on unaudited figures.
CRAMO PLC
Vesa Koivula
President and CEO
tel. 358 10 66110, +358 40 510 5710
Martti Ala-Härkönen
CFO
tel. +358 10 66110, +358 40 737 6633
DISCLAIMER
This report includes certain forward-looking statements based on the
management's expectations at the time they are made. These involve risks and
uncertainties and are subject to change due to changes in general economic and
industry conditions.
DISTRIBUTION
OMX Nordic Exchange Helsinki
Principal media
www.cramo.com
