TRAINERS' HOUSE GROUP'S INTERIM REPORT 7 AUGUST 2008 AT 08:30AM
Trainers' House still performing well
In January-June:
-Net sales for the quarter, amounting to EUR 24.3 million, were up 53.2% on the
equivalent figure for the previous year (EUR 15.9 million).
-Operating profit before depreciation resulting from the allocation of the
purchase price of Trainers' House Oy amounted to EUR 4.5 million, or 18.3% of
net sales.
-Operating profit grew by 157.1%, totalling EUR 2.8 million or 11.7% of net
sales(EUR 1.1 million, 7.0% of net sales).
-Earnings per share were EUR 0.02 (EUR 0.02).
In the second quarter:
-Net sales for the quarter, amounting to EUR 12.3 million, were up 57.7% on the
equivalent figure for the previous year (EUR 7.8 million).
-Operating profit before depreciation resulting from the allocation of the
purchase price of Trainers' House Oy amounted to EUR 2.2 million, or 17.8% of
net sales.
-Operating profit grew by 97.3%, totalling EUR 1.4 million or 11.3% of net
sales(EUR 0.7 million, 9.0%).
Key figures
-At the end of the period, interest-bearing liabilities totalled EUR 25.1
million(EUR 0.7 million), cash and cash equivalents EUR 8.4 million (EUR 0.5
million),and net liabilities EUR 16.7 million (EUR 0.1 million). During the
period under review, long-term interest-bearing debt was paid off in the amount
of EUR 9.1 million.
-Net gearing was 27.0% (0.6%). At the end of 2007, net gearing was 27.6%.
-At the end of the period under review, the equity ratio was 61.6% (74.7%). At
the end of 2007, the equity ratio was 56.0%.
OUTLOOK FOR THE FUTURE
The company renews the financial forecast presented in the financial statements,
according to which the like-for-like operating profit for 2008 is expected to
exceed that of the previous year.
The like-for-like pro forma operating profit (= EBITDA - operative
depreciations, before depreciation resulting from the allocation of acquisition
cost) was EUR 7.3 million, or 15.6% of net sales.
The estimate is based on the actual results, current order book as well as the
historical profit-making ability of the merged companies.
Due to the summer holidays, the bulk of the net sales and profit for the second
half year will be generated in the last quarter of 2008.
CEO JARI SARASVUO ON THE FINANCIAL REPORT
“As a cash flow fanatic, I feel grateful about the result of the first half and
particularly the second quarter. Even though the result met our expectations, we
had to stay focused and work even harder than usual to secure a good holiday
feeling.
Expenses totalling almost one million euro related to the development of SaaS
services burdens the first half's profitability. More of this will follow.
While our H1 like-for-like net sales decreased slightly (-2.7 %), I am happy
about the fact that the entire Group closed more sales in Q2 than in last year's
Q2 (+ 3 %). Despite the modest growth figures, I consider the result a defensive
victory and a cause of happiness. Even though H2 is always challenging due to
holidays, I'm confident that we will fulfil our promises.
It is about time to accept that in 2007 our customers' euros answered our call
more easily than this year. We have faced up to the challenge by meeting more
customers and by offering them better services. During our 9,300 customer
visits, we have received signals indicating that the economic upswing is coming
to an end for many companies. The stalling of the economy allows Trainers' House
to accelerate the implementation of its growth strategy. In difficult times,
customers raise their requirements, which is something that supports our vision.
Leading companies with modern methods of sales and marketing will become even
more important during the economic downturn.
When the euro gets shy, customers prefer to buy value rather than just hard
work. The benefits of the growth system services offered by Trainers' House are
easy to measure in euros. We believe that this change in economic conditions
serves the strategy, through which we aim to accomplish the next step of our
story."
For more information, please contact:
Jari Sarasvuo, CEO, tel. 0500 665 666
Mirkka Vikström, CFO, tel. 050 376 1115
Press conference:
Trainers' House will hold a press and analyst conference regarding the financial
statements bulletin on 7 August, at noon-1 pm, at the company's office located
at Porkkalankatu 11, Helsinki. Those wishing to participate should contact Mia
Luostarinen, tel. 040 755 6146 or e-mail mia.luostarinen@trainershouse.fi.
A live videocast from the conference will be available at www.trainershouse.fi -
Investors starting at noon on 7 August 2008.
TRAINERS' HOUSE GROUP'S INTERIM REPORT 1 JANUARY - 30 JUNE 2008
REVIEW OF OPERATIONS
Business operations
Trainers' House Plc is a business growth company formed when Satama Interactive
Plc acquired the entire share capital of Trainers' House Oy in 2007 and the
companies merged on 31 December 2007. In connection with the merger, the
combined company adopted the name Trainers' House Plc.
The Group has offices in Ruoholahti and Hernesaari, Helsinki, and in Tampere and
Turku. The Group's international operations are based in Düsseldorf, Stockholm
and St. Petersburg.
Trainers' House aims to integrate the company's business operations into a
single entity that helps customers to grow. The company's areas of expertise:
marketing and communications, training and management systems are developed into
a growth system in which each component serves the whole. The growth system is
comprised of an operating model and a BLARP management system based on the
Software as a Service (SaaS) model.
The company's strategic goals are to increase cash flow in Finland, develop SaaS
services that support the Growth System concept, and expand the company's
international operations based on these services. In the short term, traditional
training and project work will continue to have a major role in the company's
net sales. Trainers' House is an established operator in Finland, but the
company aims to grow also internationally through organic growth and
acquisitions.
In the first half of 2008, the company has been integrating its business
operations, developing its corporate structure to better suit the company's new
strategy, and investing strongly in SaaS product development. The company has
launched a customer acquisition programme based on a new mode of operation at
its international offices in Sweden, Germany and Russia. While these investments
will temporarily slow down growth in net sales, they are necessary for achieving
the growth and profitability targets set for the future.
SaaS services
SaaS services (Software as a Service) are software products sold to customers as
continuous services as part of the Growth System. The development of SaaS
services plays a key role in the company's strategy. In the short term,
investments in SaaS service development will weaken profitability, because the
services have little impact on net sales. During the first half year, these
expenses totalled almost EUR 1 million. However, in the long term we expect the
share of SaaS services in our net sales to increase rapidly.
In the second quarter, the company established a separate unit for SaaS sales,
marketing and service development in order to emphasize the key role of SaaS
product development. The product development expertise of the unit was
strengthened by increasing the number of personnel and by utilizing our offshore
partners. The unit currently employs more than 20 people.
The company's first continuous service product, the growth management system
BLARP (Business Live Action Role Play), has so far been sold to eight customers.
Three deliveries have proceeded to production use. Product development continues
under close customer guidance.
The company has started the development of two new SaaS services. The Polku
(path) service aims to support personal growth, while the latter, still unnamed
service supports the growth of the entire organization. The Polku is a target
programme for personal growth. The other new service combines the best practices
of the digital working environment with goal-oriented leadership, improved work
efficiency and a sense of community at the workplace.
Divestments
In the first quarter, Trainers' House sold its mobile technology unit to
Nice-business Solutions Finland Oy. In connection with the divestment, 19
employees were transferred to Nice-business Solutions. The divestment has not
had any significant impact on the company's net sales or result in the period
under review.
FINANCIAL PERFORMANCE
Corporate structure and comparative figures
The comparative figures for the first half of the year are Satama Interactive
Plc's actual figures for the first six months of 2007. Satama divested its Dutch
operations in autumn 2007, and the comparative figures have been adjusted to
correspond to the structure of the continuing and discontinued operations.
The comparative figures used for reporting operating profit include the reported
operating profit as well as operating profit before depreciation of allocated
acquisition cost related to the acquisition of Trainers' House Oy. According to
the company's management, these figures provide a more accurate view of the
company's productivity. The company uses the adjusted operating profit as
comparative data in presenting forecasts on future development.
After the merger, the volume and profitability of operations improved
significantly year on year. Net sales increased by 53.2% from the previous year,
amounting to EUR 24.3 million (15.9 million). Operating profit before
depreciation resulting from the allocation of acquisition cost amounted to EUR
4.5 million, or 18.3% of net sales (EUR 1.1 million, or 7.0% of net sales). The
efficiency of operations has also clearly improved year on year. Turnover per
person increased by 28.8 % compared to last year.
A total of EUR 10.2 million of the purchase price of Trainers' House Oy was
allocated in intangible assets with a limited useful life. This item is
depreciated over a period of five years. Depreciation resulting from the
allocation totalled EUR 1.6 million in the period under review. The total
portion of depreciation for 2008 is EUR 3.0 million. Operating profit after this
depreciation was EUR 2.8 million, or 11.7% of net sales.
The following table itemizes the Group's key figures (in thousands of euros):
1-6/2008 1-6/2007
Net sales 24,327 15,882
Expenses
Personnel-related
expenses -12,301 -9,994
Other expenses -7,034 -4,445
EBITDA 4,992 1,444
Depreciation of
non-current assets -541 -336
Operating profit before
depreciation of
allocation of acquisition cost 4,451
% of net sales 18.3
Depreciation of allocation
of acquisition cost -1,603
EBIT 2,848 1,108
% of net sales 11.7 7.0
Financial income and expenses -941 10
Profit/loss before tax 1,907 1,118
Tax -678 -389
Profit for the period from
continuing operations 1,229 729
Discontinued operations 358
Profit for the period 1,229 1,088
% of net sales 5.1 6.8
The result for the period includes deferred taxes for the period. Recognized
taxes have no impact on cash flow, because the company's balance sheet contains
deferred tax assets from losses carried forward. On 30 June 2008, deferred tax
assets on the balance sheet totalled EUR 8.0 million.
The following table itemizes the distribution of net sales for continuing
operations and shows the quarterly profits or losses from the beginning of 2007
(in thousands of euros). In the table, the figures for 2007 are adjusted to
reflect the company's continuing operations.
Q107 Q207 Q307 Q407 2007 Q108 Q208
Net sales 8,070 7,812 5,945 8,161 29,989 12,009 12,318
Operating profit
before depreciation
of acquisition cost 403 705 287 724 2,119 2,259 2,192
Operating profit 403 705 287 724 2,119 1,458 1,390
Pro forma comparison
In the pro forma comparison, the company's actual net sales and profit for the
first half of 2008 are compared with the pro forma figures for the same period
in 2007. The pro forma figures describe the net sales and profit of the merged
company, had the merger of Satama and Trainer's House Oy taken place on 1
January 2007. The pro forma result is theoretical.
Satama divested its Dutch operations in autumn 2007, and the comparative figures
have been adjusted to correspond to the structure of the continuing and
discontinued operations.
The pro forma figures are as follows:
1-6/2008 1-6/2007
Net sales 24,327 24,997
Operating profit before
depreciation of
allocation of acquisition cost 4,451 4,774
% of net sales 18.3 19,1
Depreciation of allocation
of acquisition cost -1,603 - 1,603
EBIT 2,848 3,171
% of net sales 11.7 12.7
Average number of personnel 389 427
Pro forma net sales and operating profit were slightly lower than last year. The
efficiency of operations, measured by turnover per person and operating profit
per person, improved year on year.
LONG-TERM OBJECTIVES
Trainers' House Plc's Board of Directors has set the following long-term
financial objectives for the company:
The company will target 15% annual organic growth and 15% operating profit, and
will aim to pay 30-50% of its annual profit as a dividend.
We expect to achieve these goals once our Growth System concepts have been
completed and along with the internationalization of Trainers' House Plc.
FINANCING, INVESTMENTS AND SOLVENCY
Cash flow from operating activities was good in the period under review. Cash
flow before financial items totalled EUR 3.4 million (EUR 0.2 million) and cash
flow after financial items was EUR 2.6 million (EUR 0.2 million). Cash flow from
investments totalled EUR 0.0 million (EUR -0.7 million) and cash flow from
financing was EUR -11.4 million (EUR 0.5 million).
Cash flow from financing was affected most significantly by the repayment of a
loan related to the acquisition of Trainers' House Oy totalling EUR 9.1 million
and a dividend paid out in the amount of EUR 2.7 million. Cash flow from
financing was affected positively in the amount of EUR 0.5 million by
subscriptions made under warrant 2003C, for which the subscription period ended
on 1 February 2008.
On 30 June 2008, the Group's liquid assets totalled EUR 8.4 million (0.5
million). The equity ratio was 61.6% (74.7%) and net gearing 27.0% (0.6%). At
the end of the period under review, the company had EUR 25.1 million of
interest-bearing debt (EUR 0.7 million). The balance sheet ratios have improved
since the merger completed at the end of 2007. On 31 December 2007, the equity
ratio was 56.0% and net gearing 27.6%.
Financial risks
Currency risks are insignificant, because Trainers' House operates principally
in the euro zone. Interest rate risk is managed by covering part of the risk
with hedging agreements. A bad debt provision, which is booked on the basis of
ageing and case-specific risk analyses, covers risks to accounts receivable.
SHORT-TERM BUSINESS RISKS AND FACTORS OF UNCERTAINTY
The general outlook in the company's operating environment remains uncertain,
which may influence the purchase decisions made by the company's customers and
thereby affect the financial position of Trainers' House Plc. Other than this
factor, Trainers' House Plc is not aware of any extraordinary risks that could
have a significant negative impact on the company's operations.
About risks
Trainers' House is an expert organization. Market and business risks are part of
regular business operations, and their extent is difficult to define. Typical
risks in this field are associated with, for example, general economic
development, distribution of the clientele, technology choices and development
of the competitive situation and personnel expenses. Risks are managed through
the efficient planning and regular monitoring of sales, human resources and
business costs, enabling a quick response to changes in the operating
environment.
The success of Trainers' House as an expert organization also depends on its
ability to attract and retain skilled employees. Personnel risks are managed
with competitive salaries and incentive schemes as well as investments in
employee training, career opportunities and general job satisfaction.
Risks are discussed in more detail in the annual report and on the company's
website at: www.trainershouse.fi > Investors.
AUTHORIZATIONS BY THE BOARD OF DIRECTORS
The Annual General Meeting authorized the Board of Directors to decide on the
repurchase of the company's own shares. Under the authorization, whether on one
or on several occasions, a maximum of 6,500,000 shares, which corresponds to
approximately 9.62% of the company's shares, may be acquired. The authorization
shall remain in force until 30 June 2009. At the same time the AGM countermanded
the earlier comparable authorization.
The Board of Directors is otherwise authorized to decide on all conditions
related to the acquisition of own shares, including the manner of acquisition of
shares. The authorization does not exclude the right of the Board of Directors
to decide on a directed acquisition of own shares as well, if there is
significant financial reason for the company to do so.
The authorization had not been exercised on 30 June 2008.
The AGM authorized the Board to decide on a share issue including the conveyance
of own shares, and the issue of special rights. With these authorizations
related to share issue and/or issue of special rights, whether on one or on
several occasions, a maximum of 13,000,000 new shares may be issued and/or
treasury shares may be transferred, which corresponds to approximately 19.24% of
the company's shares. The authorization shall remain in force until 30 June
2009. At the same time the AGM countermanded the earlier comparable
authorization.
The Board of Directors is otherwise authorized to decide on all terms regarding
the share issue and issue of special rights, including the right to also decide
on a directed share issue and a directed issue of special rights. Shareholders'
pre-emptive subscription rights can be deviated from, provided that there is
significant financial reason for the company to do so.
The authorizations had not been exercised on 30 June 2008.
PERSONNEL
At the end of the period under review, the Group employed 391 (379) people, of
whom 382 (318) were located in Finland.
SHARES AND SHARE CAPITAL
The company's shares have been listed on the OMX Nordic Exchange since 2000.
Until 28 December 2007, the company's shares were listed under the name Satama
Interactive Plc (SAI1V) and as of 31 December 2007 under the name Trainers'
House Plc (TRH1V).
At the beginning of the period under review, Trainers' House Plc had issued
74,577,375 shares and the company's registered share capital amounted to EUR
866,941.67.
The company's share capital was increased by a total of EUR 13,801.92 during the
period under review, as a result of subscriptions made on account of the 2003C
warrants issued under the personnel's option programme. The total number of new
shares subscribed for was 656,500.
A total of 7,217,171 treasury shares acquired by Trainers' House Plc in the
merger of Satama Interactive Plc and Trainers' House Oy were invalidated during
the period under review. The invalidation did not affect the company's share
capital. The change in the number of shares was registered in the trade register
on 7 March 2008. At the end of the period under review, the company did not
possess any treasury shares.
At the end of the period, the share capital of Trainer's House Plc totalled
EUR 880,743.59. The number of shares totalled 68,016,704. The undiluted and
diluted average number of shares totalled 69,210,766 and 69,472,670 respectively
during the period under review.
In accordance with the decision of the Annual General Meeting, Trainers' House
paid a dividend of EUR 0.04 per share on 11 April 2008. The dividend paid
totalled EUR 2.7 million, or 31.4% of the profit for 2007.
Share performance
A total of 18.3 million shares, 26,5 % of the average number of shares, were
traded on the Helsinki Exchanges during the review period for a value of EUR
22.7 million (18.6 million shares, 45,3 % and EUR 21.0 million, respectively).
The period's highest share quotation was EUR 1.44 (EUR 1.24), the lowest
EUR 0.99 (EUR 1.00) and the closing price EUR 1.00 (EUR 1.16). The weighted
average price was EUR 1.26 (EUR 1.13). At the closing price on 30 June 2008, the
company's market capitalization was EUR 68.0 million (EUR 47.8 million).
PERSONNEL OPTION PROGRAMMES
Trainers' House Plc has one option programme for its personnel, included in the
personnel's commitment and incentive scheme.
The Annual General Meeting held on 29 March 2006 decided to commence an employee
option programme involving 2,000,000 warrants. Due to the resulting
subscriptions, the share capital of Trainers' House Plc may increase by a
maximum of EUR 42,046.98 and the number of shares by a maximum of 2,000,000.
Half of the warrants are titled 2006A and the other half 2006B.
The subscription period for shares converted under the 2006A warrant is to begin
on 1 September 2008 and to end on 28 February 2009. The subscription period for
the shares converted under the 2006B warrant is to begin on a date determined by
the Board of Directors after publication of the interim report for the second
quarter of 2009, but not later than on 1 September 2009, and end on
28 February 2010. The dividend-adjusted subscription price after dividend
payment is EUR 0.98 for shares converted under the 2006A warrant, and EUR 1.14
for shares converted under the 2006B warrant.
CHANGES IN OWNERSHIP
During 2007, the company became aware of 8 notices of change in ownership
passing the disclosure threshold. Information on notices of change in ownership
is available on the company's website at www.trainershouse.fi > Investors.
The merger of Trainers' House Oy affected the company's shareholder base
significantly. More than half of the company's shares are currently owned by its
employees.
The company's CEO Jari Sarasvuo and his controlled company Isildur Oy currently
hold a total of 35.5% of the share capital of Trainers' House Plc. The Finnish
Financial Supervision Authority has granted an exemption to Jari Sarasvuo and
Isildur Oy regarding the obligation to present a mandatory redemption offer
concerning the company. The terms and conditions of the exemption require that
the combined shareholding of Mr. Sarasvuo and Isildur Oy in Trainers' House will
decline to 30% or under within one (1) year from the date that the new shares
have been registered.
Information on the company's ownership structure and major shareholders is
available on the company's website at www.trainershouse.fi > Investors.
CONDENSED FINANCIAL STATEMENTS AND NOTES
The interim report was compiled in accordance with the IAS 34 standard.
The Group divested its Dutch operations in 2007, and the comparative figures for
2007 have been adjusted to correspond to the structure of the continuing and
divested operations.
In accordance with the risk management principles described in the company's
financial statements, the company has hedged to manage part of the interest rate
risk of financial liabilities and has also adopted hedge accounting.
Amendments to and interpretations of published standards, as well as the new
standards effective as of 1 January 2007 are presented in detail in the
Financial Statements for 2007. Adoption of the standards did not cause any such
impact on the accounting principles applied to the financial statements that
would have called for retroactive changes to previous years' figures.
The Group will adopt all the new and amended standards and interpretations that
entered into force on 1 January 2008. The Group estimates that these new
interpretations will not affect the consolidated financial statements.
In producing this interim report, Trainers' House has applied the same
accounting principles for key figures as in its Financial Statements for 2007.
The calculation of key figures is described on page 45 of the Financial
Statements included in the Annual Report 2007.
The figures given in the interim report are unaudited.
INCOME STATEMENT, IFRS (kEUR)
Group Group Group Group Group
01/04/- 01/04/- 01/01/- 01/01/- 01/01/-
30/06/08 30/06/07 30/06/08 30/06/07 31/12/07
CONTINUING OPERATIONS
Net sales 12,318 7,812 24,327 15,882 29,989
Other income from operations 5 5 170 8 61
Costs:
Materials and services 1,573 984 2,842 1,933 3,437
Personnel-related
expenses 6,234 4,727 12,301 9,994 18,663
Depreciation 1,084 174 2,144 336 713
Other operating expenses 2,042 1,227 4,362 2,520 5,116
Operating profit 1,390 705 2,848 1,108 2,119
Financial income and expenses -404 15 -941 10 -259
Share from profit/loss of
associated companies -103
Profit/loss before tax 987 720 1,907 1,118 1,758
Tax -178*) -262*) -678*) -389*) 3,082*)
Profit for the period
Continuing operations 808 458 1,229 729 4,839
Discontinued operations 226 358 3,822
Profit/loss for the period 808 684 1,229 1,088 8,661
Attributable to equity holders
of the parent company 808 684 1,229 1,088 8,661
Earnings per share as calculated from the profit attributable to shareholders of
the parent company:
Undiluted earnings/share (EUR),
Continuing operations 0.01 0.01 0.02 0.02 0.12
Discontinued operations 0.01 0.01 0.09
Diluted earnings/share (EUR),
Continuing operations 0.01 0.01 0.02 0.02 0.12
Discontinued operations 0.01 0.01 0.09
*) The tax included in the income statement is deferred.
BALANCE SHEET, IFRS (kEUR)
Group Group Group
30/06/08 30/06/07 31/12/07
ASSETS
Non-current assets
Property, plant and equipment 1,158 1,540 1,706
Goodwill 51,772 10,020 52,467
Other intangible assets 18,614 433 20,162
Other financial assets 4 54 230
Other receivables 24 101 24
Deferred tax receivables 7,992 5,306 9,149
Total non-current assets 79,563 17,454 83,738
Current assets
Inventories 15 15
Accounts receivable and
other receivables 13,144 12,691 11,690
Cash and cash equivalents 8,364 534 17,120
Total current assets 21,523 13,225 28,824
Total assets 101,086 30,680 112,562
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent company
Share capital 881 867 867
Share issue 256
Premium fund 13,943 13,228 13,228
Hedging reserve 70
Distributable non-restricted
equity fund 31,872 31,348
Translation differences -2 -1 -2
Retained earnings 15,174 8,832 16,551
Total shareholders' equity 61,937 22,925 62,247
Long-term liabilities
Deferred tax liabilities 4,727 5,739
Other long-term liabilities 24,870 658 34,012
Accounts payable and other liabilities 9,553 7,096 10,563
Total liabilities 39,149 7,755 50,314
Total shareholders' equity and
liabilities 101,086 30,680 112,562
CASH FLOW STATEMENT, IFRS (kEUR)
Group Group Group
01/01- 01/01- 01/01-
30/06/08 30/06/07 31/12/07
Profit/loss for the period 1,229 1,088 8,661
Adjustments to profit for the period 4,678 904 -5,854
Change in working capital -2,482 -1,749 -366
Financial items -810 -7 -315
Cash flow from operations 2,615 236 2,127
Acquisition of subsidiaries -26,858
Divestment of subsidiaries 7,857
Investments in tangible and
intangible assets -180 -661 -751
Capital gains on tangible and
intangible assets 326
Capital gains on other investments -187
Change in the additional trade price -98 -67
Cash flow from investments 48 -728 -19,939
Share issue subject to charges 491 135 391
Dividend distribution -2,721
Increase/decrease in long-term loans -9,143 33,639
Increase/decrease in short-term loans -46 285 219
Increase/decrease in long-term receivables 59 136
Cash flow from financing -11,418 479 34,385
Change in cash and cash equivalents -8,756 -12 16,573
Opening balance of cash and
cash equivalents 17,120 547 547
Closing balance of cash and
cash equivalents 8,364 534 17,120
CHANGE IN SHAREHOLDERS' EQUITY (kEUR)
Equity attributable to equity holders of the parent company
Dis-
tribu-
table Trans-
Hed- non-re- lation
ging stric- dif-
Share Share Premium re- ted fe- Retained
capital issue fund serve equity rence earnings Total
Equity 01/01/2007 859 13,101 -1 7,704 21,663
Translation differences -1 -1
Stock options used 8 127 135
Share-based payments 40 40
Profit/loss for the period 1,088 1,088
Equity 30/06/2007 867 13,228 -1 8,832 22,925
Equity 01/01/2008 867 256 13,228 31,348 -2 16,551 62,247
Cashflow hedging 70 70
Stock options used 14 -256 715 473
Share-based payments 115 115
Taxes related to bookings
to shareholders' equity 524 524
Profit/loss for the period 1,229 1,229
Dividend distribution -2,721 -2,721
Equity 30/06/2008 881 13,943 70 31,872 -2 15,174 61,937
INVESTMENTS (kEUR) Group Group Group
01/01- 01/01- 01/01-
30/06/08 30/06/07 31/12/07
Gross investments in tangible
and intangible assets
and shares 277 739 64,440
Gross investments
% of net sales 1.1 4.7 214.9
RELATED-PARTY TRANSACTIONS (kEUR) Group Group Group
01/01- 01/01- 01/01-
30/06/08 30/06/07 31/12/07
Management's emoluments
Salaries and other short-term
employee benefits 309 452 726
Share-based payments 31
PROVISIONS FOR LIABILITIES AND CHARGES (kEUR)
Trainers' House implemented a major restructuring programme in the second
quarter of 2006. A provision of EUR 1.3 million was made in the financial
statements of the second quarter of 2006 to cover the expenses arising from the
restructuring programme. On 31 December 2007, EUR 64 thousand of the provision
remained unused. In 2008, the remaining provision has been used to cover actual
expenses.
Restructuring provision (kEUR) Group Group Group
01/01- 01/01- 01/01-
30/06/08 30/06/07 31/12/07
Provisions 1 January 64 160 160
Provisions used -64 -60 -96
Provisions 30 June/31 December 0 100 64
PERSONNEL Group Group Group
01/01- 01/01- 01/01-
30/06/08 30/06/07 31/12/07
Average number of personnel 389 373 369
Personnel at the end of the period 391 379 400
COMMITMENTS AND CONTINGENT LIABILITIES Group Group Group
30/06/08 30/06/07 31/12/07
Collaterals and contingent liabilities
given for own commitments 3,827 5,255 4,144
Interest rate swaps
Fair value 122
Nominal value 14,000
OTHER KEY FIGURES Group Group Group
30/06/08 30/06/07 31/12/07
Equity-to-assets ratio (%) 61.6 74.7 56.0
Net gearing (%) 27.0 0.6 27.6
Shareholders' equity/share (EUR) 0.91 0.56 0.92
Return on equity (%) 8.6 5.9 11.5
Return on investment (%) 4.3 9.2 3.5
Return on equity and return on investment are based on the previous 12 months.
Helsinki, 7 August 2008
TRAINERS' HOUSE PLC
BOARD OF DIRECTORS
Further information:
Jari Sarasvuo, CEO, tel. +358 (0)500 665 666
Mirkka Vikström, CFO, tel. +358 (0)50 376 1115
DISTRIBUTION
OMX Nordic Exchange, Helsinki
Prominent media sources
www.trainershouse.fi - Investors