MARTELA CORPORATION INTERIM REPORT 4.8.2011 at 8.30 a.m.
MARTELA CORPORATION’S INTERIM REPORT, 1 JANUARY – 30 JUNE 2011
Consolidated revenue increased, operating result at previous year’s level
Key figures:
| 4-6 | 4-6 | 1-6 | 1-6 | 1-12 | |
| EUR mill. | 2011 | 2010 | 2011 | 2010 | 2010 |
| - Revenue | 30.5 | 25.7 | 57.9 | 48.3 | 108.4 |
| - Change in revenue, % | 18.6 | 21.0 | 19.9 | 6.6 | 13.7 |
| - Operating result | -0.9 | -0.5 | -1.6 | -1.6 | 1.3 |
| - Operating result % | -2.8 | -2.0 | -2.8 | -3.3 | 1.2 |
| - Earnings / share, EUR | -0.21 | -0.13 | -0.43 | -0.38 | 0.16 |
| - Return on investment, % | -12.0 | -5.2 | -10.4 | -8.1 | 3.7 |
| - Return on equity, % | -11.9 | -7.0 | -11.9 | -10.0 | 2.0 |
| - Equity-to-assets ratio, % | 54.2 | 54.4 | 55.6 | ||
| - Gearing, % | -4.2 | -19.7 | -14.1 |
Outlook for 2011
Martela Corporation’s revenue is estimated to grow and operating profit to be at previous year’s level or to improve in 2011.
Market
Demand for office furniture increased in Finland and Sweden during the first half of the year. No significant change was noticed yet on the other main markets.
There have been signs of office construction recovering – especially the number of building permits granted. However, the number of completed and commenced office buildings remains significantly lower than in the comparison year. Statistics on office construction are available for the first quarter of 2011, and according to these, 48 per cent less office space was built in Finland in terms of square metres in the first quarter of 2011 than in the previous year. However, significantly more (+51%) building permits were granted in this period than in the previous year. Considerably fewer office building construction projects were commenced compared with the previous year (-49%).
Consolidated revenue and profit
Consolidated revenue for the second quarter was EUR 30.5 million (25.7), an increase of 18.6 per cent on the previous year. Revenue for January-June increased to EUR 57.9 million (48.3), representing growth of 19.9 per cent. The positive performance of the traditional sales channels in Finland, Sweden and Poland increased revenue. Factors increasing revenue also included the Martela Outlet sales channel that was acquired and launched in June 2010 and the Danish importer acquired in November. The comparable revenue growth without acquisitions was 15.0 per cent in the second quarter and 15.6 per cent in the first half of the year.
Operating result for the second quarter declined and was EUR -0.9 million (-0.5). Operating result for January-June remained at the previous year’s level and was EUR -1.6 million (-1.6). The group has invested significantly in the development and growth of its operations by hiring new personnel and opening new sales offices. The investments focused in particular on strengthening the Group’s service business and sales channels. The investments have not yet generated enough revenue to correspond to the rise in costs. Result was also reduced by poor business performance in Denmark.
Profit before taxes for January-June was EUR -2.0 million (-1.7), and profit after taxes was EUR -1.7 million
(-1.5).
Martela’s full interim report for January-June 2011 is included in PDF format as an attachment to this release. The interim report is also available on the company’s website at www.martela.fi.
Martela Corporation
Board of Directors
Heikki Martela
CEO
ATTACHMENT: Martela’s interim report January-June 2011
Additional information
Heikki Martela, CEO, tel. +358 50 502 4711
Markku Pirskanen, CFO, tel. +358 40 517 4606
