Cencorp Corporation Interim Report 7 November 2011 at 19.15 Finnish time
SUMMARY
- The figures in brackets are comparison figures for the corresponding period in 2010. Due to the corporate transaction, only the figures for the Laser and Automation Applications segment are mutually comparable.
- The result and balance sheet of the Face (Telecom) business, i.e. the current Special Components segment, have been consolidated in all of Cencorp’s consolidated figures starting on 1 December 2010, which means that there are no comparison figures for this segment for January–September 2010.
July–September 2011
- Cencorp Group’s net sales increased 136 percent to EUR 6.4 million (EUR 2.7 million) during the third quarter of the year.
- Operating result was EUR -1.2 million (EUR -0.2 million).
- The Laser and Automation Applications segment’s net sales increased 34 percent to EUR 3.6 million (EUR 2.7 million) and its operating result was EUR -0.2 million (EUR -0.2 million).
- The Special Components segment’s net sales were EUR 2.8 million and its operating result was EUR -1.0 million.
- The Group’s result before taxes amounted to EUR -0.8 million (EUR -0.5 million).
- Earnings per share were EUR -0.002 (EUR -0.003).
January–September 2011
- Cencorp Group’s net sales increased 174 percent to EUR 19.9 million (EUR 7.3 million).
- The order book at the end of September stood at EUR 2.5 million (EUR 3.0 million).
- Operating result was EUR -4.9 million (EUR -2.2 million).
- Result before taxes amounted to EUR -5.6 million (EUR -2.3 million).
- Earnings per share were EUR -0.02 (EUR -0.02).
- The equity ratio at the end of September was 54.2 percent (3.0%).
Outlook for 2011
- The outlook was revised on 7 September 2011 due to a sharp weakening in the market situation.
- Net sales for 2011 are estimated to be some EUR 25 million and the operating profit to remain lower than in 2010, provided that the operating environment and the current economic landscape will not substantially change.
PRESIDENT AND CEO MATS ERIKSSON
“Our net sales continued to increase substantially during the third quarter of the year. Most of the increase came from the integration of the Face business, i.e. the special components manufacturing operations in China, into Cencorp. However, we also managed to increase sales of laser and automation applications, despite the fact that investment decisions have been deferred due to the uncertainty in the global economy, making it more difficult to conclude these sales. In addition, we succeeded in increasing sales of special components compared to the previous quarters; a positive development in a difficult market situation.
The operating result of the Special Components segment continued to be negative, even though we were able to improve the segment’s profitability compared to the previous quarters of the year. As a result, the Group’s overall profitability declined markedly in July–September, despite the growth in net sales. The operating result of the Laser and Automation Applications segment reached last year’s level, remaining negative. The operating result was weighed down by costs arising from the peak in demand during the spring and problems with deliveries resulting from the poor availability of components. In addition, adjustment measures were necessary to adapt operations to a steep decline in demand during fall. The Special Components segment continued to face problems resulting from the drop in the market share of one of our major customers and the changes that are currently taking place in the competitive landscape and the supply chain for mobile phones.
Operations are being streamlined and fixed costs are being cut to improve the overall profitability of the Group. We have concentrated our production operations and shortened working hours in China, among other measures. The efficiency of our project management has been improved, which is expected to bring substantial cost savings. In addition, temporary layoffs affecting Cencorp’s personnel in Finland were started in the beginning of October. We have also discovered promising end uses for innovative flexible circuits in new electronics and renewable energy applications. Especially in the renewable energy applications, we have proceeded with customer negotiations and manufacturing prototypes of products. In the Special Components segment, the first order concerning this growing business is still possible during 2011.”
GENERAL
The comparison period is the corresponding period of the previous year, unless otherwise stated. When comparing the figures, it should be noted that the Face (Telecom) business is included in the year 2011 figures, but in the 2010 figures only as of December 2010.
The interim report has been drawn up in compliance with the IAS 34 Interim Financial Reporting standard and in compliance with the same accounting principles as in the financial statements. The interim report has not been audited.
More information on events that have taken place during the reporting period can be found in the stock exchange releases published on Cencorp’s website at www.cencorp.com. At the same address, you can also find the flagging notifications concerning changes in ownership according to the Securities Markets Act.
Cencorp is part of the Finnish Savcor Group. Savcor Group Oy owns 34.8 percent and Savcor Group Limited 39.0 percent of Cencorp.
SEGMENT-BASED REPORTING
The Face (Telecom) corporate transaction was completed on 30 November 2010, and Cencorp’s reporting structure was altered as of 1 December 2010. The Face (Telecom) business result and balance sheet were consolidated in Cencorp’s consolidated figures starting on 1 December 2010, and Cencorp’s reporting has been based on two business segments since 2010. The business segments are Laser and Automation Applications, and Special Components. The Laser and Automation Applications segment comprises Cencorp’s former business and the Special Components segment the business acquired through the Face transaction. This segment includes, among other things, interference shielding solutions for mobile phones, cameras, laptop computers and other electronic devices; antennas, flexible connectors and wires for mobile phones; various decorations, i.e. chemical and laser-based etchings of metal parts, and radio-frequency identification (RFID).
FINANCIAL DEVELOPMENT IN JULY–SEPTEMBER
Net sales increased 136 percent to EUR 6.4 million (EUR 2.7 million). The increase in net sales was due to the integration of the Face (Telecom) business into Cencorp and increased sales of laser automation and other automation equipment.
EBITDA were EUR -0.4 million (EUR 0.02 million). The Group’s depreciation has significantly increased since the integration of the Face (Telecom) business in China, i.e. the current Special Components segment, into Cencorp in December 2010.
The operating result was EUR -1.2 million (EUR -0.2 million). The Group’s operating result was particularly weighed down by the poor profitability of the Special Components segment. The operating result of the Laser and Automation Applications segment was at the same level as during the third quarter last year.
The Group’s result before taxes amounted to EUR -0.8 million (EUR -0.5 million). The result for the reporting period was EUR -0.8 million (EUR -0.5 million).
Earnings per share were EUR -0.002 (EUR -0.003) and diluted earnings per share EUR -0.002 (EUR -0.003).
FINANCIAL DEVELOPMENT IN JANUARY–SEPTEMBER 2011
Operating environment
Cencorp operates in industries applying electronics and energy technology. Its main geographical market areas are Europe, North America, South America and Asia. The global electronics industry, including the manufacture of mobile phones, is mostly concentrated in Asia, the domestic market area for the special components manufactured by Cencorp.
Demand for laser and automation applications declined during the third quarter of the year especially in Europe and in the US. This was due to the uncertainty in the global economy, which reduces the need for customers to increase their production capacity and leads to a deferral of investment decisions. However, rising labor costs, especially in China, will contribute to the increasing need for production process automation and thus demand for automation products on a longer term. Cencorp views the energy industry, and renewable energy applications in particular, as a new interesting market.
Demand for special components increased slightly especially in the mobile phone sector. The changes that are currently shaping the competitive landscape in the mobile phone markets, the operators’ market shares and the supply chain are making forecasting more difficult and will potentially alter the demand situation. However, the overall outlook is positive, as the latest forecasts expect the mobile phone markets to grow nearly 10 percent during 2011, bearing in mind, though, that market development goes hand in hand with the general economic development. The growth outlook for other markets important for Cencorp, such as RFID transmitters and receivers and flexible circuits, is also positive.
Net sales and result
Net sales increased 174 percent to EUR 19.9 million (EUR 7.3 million). The increase in net sales was due to the integration of the Face (Telecom) business into Cencorp and increased sales of laser automation and other automation equipment.
EBITDA were EUR -2.3 million (EUR -1.6 million).
Operating result was EUR -4.9 million (EUR -2.2 million). The Group’s operating result was particularly weighed down by the poor profitability of the Special Components segment. The operating result of the Laser and Automation Applications segment remained negative, but improved from last year’s corresponding period.
The Group’s result before taxes amounted to EUR -5.6 million (EUR -2.3 million). The result for the reporting period was EUR -5.6 million (EUR -2.3 million).
Earnings per share were EUR -0.02 (EUR -0.02) and diluted earnings per share EUR 0.02 (EUR -0.02).
Financing
Cash flow from business operations before investments was EUR -2.5 million (EUR -1.2 million). Trade receivables at the end of the reporting period were EUR 5.4 million (EUR 2.6 million). Net financial items amounted to EUR 0.7 (EUR 0.1 million).
At the end of September, the equity ratio was EUR 54.2 (3.0) percent and equity per share was EUR 0.06 (EUR 0.002). At the end of the reporting period, the Group’s liquid assets totaled EUR 1.3 million (EUR 0.08 million), and unused export credit limits, bank guarantee limits and factoring loans amounted to EUR 0.7 million (EUR 1.0 million).
In order to secure its delivery ability to meet the order book, Cencorp agreed, in the beginning of June, on a short-term loan of EUR one million with AC Finance BV, a subsidiary of Ahlström Capital Oy. AC Invest BV, another subsidiary of Ahlström Capital Oy, holds some 5.1% of Cencorp’s shares. The loan period started on 1 June 2011 and ends on 31 December 2011.
In addition, Savcor Group Oy, which holds 34.8% of Cencorp’s shares, and Cencorp agreed on extending the due date of a loan of some EUR 1.4 million, granted by Savcor Group Oy in 2009 to Cencorp and converted into a convertible bond on 25 May 2010, from the end of June 2011 to the end of 2011. The loan amounts to approximately EUR 1.2 million. Cencorp has started negotiations with AC Finance BV and Savcor Group Oy in order to extend both loan periods from 31 December 2011 onwards.
Cencorp’s Chinese subsidiary, Savcor Face (Beijing) Technologies Co., Ltd, has negotiated with a real estate investor in order to sale-and-leaseback the plant building in Beijing. According to the current information, the deal will be concluded during November 2011. The purchase price will be used to pay back the loan of 40 million remimbi or EUR 4.6 million to the Bank of China.
According to the forecasts available, the financial position of the company will be tight. The company has started, in addition to the above-mentioned measures, negotiations with the major financiers concerning strengthening the financial situation until the company cash flow is expected to turn to positive.
Product development
The Group’s product development expenses in January–September were EUR 1.3 million (EUR 0.5 million) or 6.3 (6.6) percent of net sales.
Investments
Gross investments in January–September amounted to EUR 1.0 (EUR 0.6 million). The largest investments were EUR 0.4 million in machinery and equipment and EUR 0.4 million in development costs.
Segment information
Laser and Automation Applications
In July–September, the Laser and Automation Applications segment’s net sales increased 34 percent to EUR 3.6 million (EUR 2.7 million) in spite of the uncertainty in the global economy. In January–September, net sales increased 70 percent to EUR 12.4 million (EUR 7.3 million). The segment accounted for 62 percent of the Group’s net sales.
The segment’s EBITDA were EUR -0.004 million (EUR 0.02 million) in July–September and EUR -0.4 million (EUR -1.6 million) in January–September.
The operating result of the Laser and Automation Applications segment in July–September was EUR -0.2 million (EUR -0.2). Profitability improved as a result of the increase in net sales. On the other hand, the adjustment measures carried out to adapt operations to the sudden transition from strong demand during the first half of the year to overcapacity in the fall increased costs and weakened the operating result. The segment’s operating result in January–September was EUR -1.2 million (EUR -2.2 million).
Special Components
The Face (Telecom) business’s, i.e. the current Special Components segment’s result and balance sheet have been consolidated in Cencorp’s consolidated figures as of 1 December 2010. Net sales of the Special Components segment were EUR 2.8 million in July–September and EUR 7.6 million in January–September. The segment accounted for 38 percent of the Group’s net sales.
The segment’s EBITDA were EUR -0.4 million in July–September and EUR -1.8 million in January–September.
The operating result was EUR -1.0 million in July–September and EUR -3.7 million in January–September. The segment’s profitability during the third quarter of the year continued to decline as a result of a drop in the market share of one of the major customers and the changes that are currently taking place in the competitive landscape and the supply chain for mobile phones. Profitability still remains unsatisfactory, but it has improved from the previous quarters as a result of the measures started during the first quarter. Measures to boost the segment’s growth and profitability have been stepped up by, among other measures, concentrating manufacturing on two plants instead of the previous three and by cutting other fixed costs. The goal is to identify the product groups with potential for growth and profitability; and the manufacture of new types of flexible circuits for new electronics applications and renewable energy applications, for example, have emerged as areas with bright prospects.
PERSONNEL
At the end of September, the Group employed 332 (70) people, 66 of whom worked in Finland, 253 in China and 13 in other countries. During the reporting period, salaries and fees totaled EUR 4.8 million (EUR 2.5 million).
During Cencorp’s statutory negotiations in September, the decision was made to lay off Cencorp’s personnel in Finland, for economic and production-related reasons, for seven days per calendar month on average, starting as of 3 October 2011. Each person will be laid off for a maximum of 90 days. The layoffs will be staggered to ensure that the company maintains its ability to operate and deliver equipment according to demand.
SHARES AND SHAREHOLDERS
Cencorp’s share capital amounts to EUR 3,425,059.10 and the number of shares is 342,161,270 shares. The Company has one series of shares, which confer equal rights in the company. Cencorp did not own any of its own shares at the end of the reporting period.
The Company had a total of 4,452 shareholders at the end of September, and 45.2 percent of the shares were under foreign ownership. The ten largest shareholders held 90.1 percent of the Company’s shares and voting rights on 30 September 2011.
The largest shareholders on 30 September 2011:
| Shares/voting rights | % | |
| 1. SAVCOR GROUP LIMITED | 133,333,333 | 39.0 |
| 2. SAVCOR GROUP OY | 119,235,078 | 34.8 |
| 3. AC INVEST BV | 17,499,999 | 5.1 |
| 4. ETERA MUTUAL PENSION INSURANCE COMPANY | 16,394,735 | 4.8 |
| 5. TILITOIMISTO CAPITAL OY | 11,000,000 | 3.2 |
| 6. PAASILA MATTI | 2,777,777 | 0.8 |
| 7. JOKELA MARKKU | 2,287,519 | 0.7 |
| 8. TIMMERBACKA HANNU | 2,222,222 | 0.6 |
| 9. TUOHI & PAALU OY | 2,050,000 | 0.6 |
| 10. FT CAPITAL OY | 1,707,140 | 0.5 |
| OTHERS | 33,653,467 | 9.9 |
| TOTAL | 342,161,270 | 100.0 |
The members of the Board of Directors and the President and CEO, either directly or through companies under their control, held a total of 255,346,188 shares in the Company on 30 September 2011, representing about 75 percent of the Company’s shares and voting rights. The Company’s President and CEO Mats Eriksson did not hold any shares in the Company at the end of September.
The price of Cencorp’s share varied between EUR 0.07 and 0.20 in January–September. The average price was EUR 0.13, and the closing price at the end of September EUR 0.09. A total of 14.2 million Cencorp shares were traded at a value of EUR 1.8 million in January–September. The Company’s market capitalization at the end of September stood at EUR 30.8 million.
No share options were granted to the Company’s management during the period 1 January–30 September 2011.
A total of 27,766,886 shares, i.e. 84 percent of the total number of shares offered, were subscribed to in the rights issue carried out in February–March based on primary and secondary subscriptions. Through the rights issue, Cencorp raised a total of EUR 3,332,026 in new equity. This amount also includes the decrease in the Company’s liabilities by a total of EUR 2,333,945 as Savcor Group Oy offset the subscription price of the shares it subscribed to in the rights issue against its capital and interest receivables from the Company related to interest-bearing loans. The subscription price, EUR 3,332,026, was recognized in full in the Company’s distributable non-restricted equity fund.
RISK MANAGEMENT, RISKS AND UNCERTAINTIES
Cencorp’s Board of Directors is responsible for the control of the Company’s accounts and finances. The Board is responsible for internal control, while the President and CEO handles the practical arrangement and monitors the efficiency of internal control. Business management and control are taken care of using a Group-wide reporting and forecasting system.
The purpose of risk management is to ensure that any significant business risks are identified and monitored appropriately. The Company’s business and financial risks are managed centrally by the Group’s financial department, and reports on risks are presented to the Board of Directors as necessary.
Due to the small size of the company and the limited scope of its business operations, Cencorp does not have an internal auditing organization or an audit committee.
As it is difficult to make forecasts in an industry that is dependent on economic cycles, the biggest risks are related to fluctuations in the demand for products and to the adjustment of operations to meet demand.
In terms of profitability, the most essential risks are related to the achievement of a sufficient invoicing volume in both business segments and the success achieved with the programs underway at Cencorp to improve profitability, such as improvements in productivity and business flexibility through outsourcing production.
In terms of operations, the biggest risks are related to outsourcing in-house equipment production to contract manufacturers, in particular to whether the production chain efficiency targets are achieved as planned.
The sufficiency of the company’s financing and working capital involve risks that are handled in more detail in the item Financing of this interim report.
Other risks connected to Cencorp have been presented in more detail in the Annual Report for 2010 and in the base prospectus and its securities notes published on 25 October 2010.
OUTLOOK FOR 2011
Cencorp’s market outlook remains as published on 7 September 2011. On that date, Cencorp revised its forecast as a result of a sharp weakening in the market situation. Net sales for 2011 are estimated to be some EUR 25 million and the operating profit to remain lower than in 2010, provided that the operating environment and the current economic landscape will not substantially change.
Cencorp’s order book at the end of September stood at around EUR 2.5 million (EUR 3.0 million) and at around EUR 2.0 million on the publishing date of this interim report.
Cencorp’s goal is to grow through acquisitions and mergers based on strategic choices, new products and new customer relationships, and by licensing products and technologies to complement the company’s own offering.
Alongside the electronics industry, Cencorp will actively target new emerging markets, such as energy production and energy supply applications for mobile equipment. In these selected areas, the company seeks a leading position as a supplier of special technology in the long term.
In Mikkeli, on 7 November 2011
Cencorp Corporation
BOARD OF DIRECTORS
| Statement of Consolidated Comprehensive Income | |||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||
| 1 000 EUR | 7-9/2011 | 7-9/2010 | 1-9/2011 | 1-9/2010 | 1-12/2010 | ||||||||||||||||||||||||
| Net sales | 6 373 | 2 695 | 19 913 | 7 279 | 12 811 | ||||||||||||||||||||||||
| Cost of sales | -5 925 | -2 013 | -19 321 | -5 910 | -10 349 | ||||||||||||||||||||||||
| Gross profit | 448 | 682 | 592 | 1 370 | 2 461 | ||||||||||||||||||||||||
| Other operating income | 44 | 22 | 135 | 65 | 278 | ||||||||||||||||||||||||
| Product development expenses | -329 | -159 | -1 264 | -478 | -761 | ||||||||||||||||||||||||
| Sales and marketing expenses | -542 | -377 | -1 622 | -1 289 | -2 031 | ||||||||||||||||||||||||
| Administrative expenses | -803 | -324 | -2 751 | -1 838 | -3 000 | ||||||||||||||||||||||||
| Other operating expenses | -16 | -20 | -22 | -37 | -76 | ||||||||||||||||||||||||
| Operating profit | -1 198 | -175 | -4 933 | -2 206 | -3 128 | ||||||||||||||||||||||||
| Financial income | 483 | 62 | 1 283 | 451 | 605 | ||||||||||||||||||||||||
| Financial expenses | -104 | -364 | -1 934 | -560 | -973 | ||||||||||||||||||||||||
| Profit before taxes | -820 | -477 | -5 584 | -2 316 | -3 496 | ||||||||||||||||||||||||
| Income taxes | 6 | 8 | -43 | 25 | 12 | ||||||||||||||||||||||||
| Profit/loss for the period | -814 | -469 | -5 627 | -2 291 | -3 484 | ||||||||||||||||||||||||
| Profit/loss attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the parent company | -814 | -469 | -5 627 | -2 291 | -3 484 | ||||||||||||||||||||||||
| Earnings/share (basic), eur | -0,002 | -0,003 | -0,02 | -0,02 | -0,02 | ||||||||||||||||||||||||
| Earnings/share (diluted), eur | -0,002 | -0,003 | -0,02 | -0,02 | -0,02 | ||||||||||||||||||||||||
| Other comprehensive income | |||||||||||||||||||||||||||||
| Translation difference | 814 | 141 | 231 | -94 | -320 | ||||||||||||||||||||||||
| Other comprehensive income | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
| Total comprehensive income for the year | 1 | -328 | -5 396 | -2 384 | -3 805 | ||||||||||||||||||||||||
| Total comprehensive income attributable to: | |||||||||||||||||||||||||||||
| Shareholders of the parent company | 1 | -328 | -5 396 | -2 384 | -3 805 | ||||||||||||||||||||||||
| Consolidated Balance Sheet | |||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||
| 1 000 EUR | 30.9.2011 | 30.9.2010 | 31.12.2010 | ||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Non-current assets | |||||||||||||||||||||||||||||
| Property, plant and equipment | 16 248 | 526 | 17 332 | ||||||||||||||||||||||||||
| Goodwill | 2 967 | 2 967 | 2 967 | ||||||||||||||||||||||||||
| Other intangible assets | 3 338 | 1 146 | 3 537 | ||||||||||||||||||||||||||
| Available-for-sale investment | 10 | 10 | 10 | ||||||||||||||||||||||||||
| Total non-current assets | 22 562 | 4 648 | 23 845 | ||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||||
| Inventories | 4 830 | 2 416 | 4 940 | ||||||||||||||||||||||||||
| Trade and other non-interest-bearing receivables | 6 525 | 4 185 | 10 406 | ||||||||||||||||||||||||||
| Cash and cash equivalents | 1 261 | 77 | 1 647 | ||||||||||||||||||||||||||
| Total current assets | 12 616 | 6 678 | 16 994 | ||||||||||||||||||||||||||
| Total assets | 35 178 | 11 326 | 40 839 | ||||||||||||||||||||||||||
| EQUITY AND LIABILITIES | |||||||||||||||||||||||||||||
| Equity attributable to shareholders of the parent company | |||||||||||||||||||||||||||||
| Share capital | 3 425 | 3 425 | 3 425 | ||||||||||||||||||||||||||
| Other reserves | 43 344 | 18 432 | 40 012 | ||||||||||||||||||||||||||
| Translation difference | 21 | 16 | -210 | ||||||||||||||||||||||||||
| Retained earnings | -27 845 | -21 557 | -22 082 | ||||||||||||||||||||||||||
| Total equity | 18 945 | 317 | 21 145 | ||||||||||||||||||||||||||
| Non-current liabilities | |||||||||||||||||||||||||||||
| Non-current loans | 2 900 | 0 | 4 534 | ||||||||||||||||||||||||||
| Deferred tax liabilities | 54 | 83 | 70 | ||||||||||||||||||||||||||
| Total non-current liabilities | 2 954 | 83 | 4 604 | ||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||
| Current interest-bearing liabilities | 6 737 | 6 088 | 5 905 | ||||||||||||||||||||||||||
| Trande and other payables | 6 409 | 4 635 | 9 136 | ||||||||||||||||||||||||||
| Current provisions | 133 | 203 | 49 | ||||||||||||||||||||||||||
| Total current liabilities | 13 279 | 10 926 | 15 090 | ||||||||||||||||||||||||||
| Total liabilities | 16 233 | 11 009 | 19 694 | ||||||||||||||||||||||||||
| Equity and liabilities total | 35 178 | 11 326 | 40 839 | ||||||||||||||||||||||||||
| Consolidated Cash Flow Statement | |||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||
| 1 000 EUR | 1-9/2011 | 1-9/2010 | 1-12/2010 | ||||||||||||||||||||||||||
| Cash flow from operating activities | |||||||||||||||||||||||||||||
| Income statement profit/loss | -5 627 | -2 291 | -3 484 | ||||||||||||||||||||||||||
| Non-monetary items adjusted on income statement | |||||||||||||||||||||||||||||
| Depreciation and impairment | + | 2 633 | 581 | 1 085 | |||||||||||||||||||||||||
| Gains/losses on disposals of non-current assets | +/- | 0 | -4 | 24 | |||||||||||||||||||||||||
| Unrealized exchange rate gains (-) and losses (+) | +/- | -91 | -66 | 104 | |||||||||||||||||||||||||
| Other non-cash transactions | +/- | 0 | 21 | 22 | |||||||||||||||||||||||||
| Financial income and expense | + | 742 | 176 | 264 | |||||||||||||||||||||||||
| Interest gains | - | 0 | 0 | 0 | |||||||||||||||||||||||||
| Taxes | - | 43 | -25 | -12 | |||||||||||||||||||||||||
| Total cash flow before change in working capital | -2 300 | -1 608 | -1 998 | ||||||||||||||||||||||||||
| Change in working capital | |||||||||||||||||||||||||||||
| Increase (-) / decrease (+) in inventories | 144 | 161 | 387 | ||||||||||||||||||||||||||
| Increase (-) / decrease (+) in trade and other receivables | 2 407 | -1 812 | -95 | ||||||||||||||||||||||||||
| Increase (+) / decrease (-) in trade and other payables | -2 000 | 2 192 | 121 | ||||||||||||||||||||||||||
| Change in working capital | 551 | 542 | 413 | ||||||||||||||||||||||||||
| Adjustment of financial items and taxes to cash-based accounting | |||||||||||||||||||||||||||||
| Interest paid | - | -339 | -55 | -314 | |||||||||||||||||||||||||
| Interest received | + | 3 | 0 | 47 | |||||||||||||||||||||||||
| Other financial items | - | -302 | -49 | 15 | |||||||||||||||||||||||||
| Taxes paid | - | -128 | 0 | 0 | |||||||||||||||||||||||||
| Financial items and taxes | -766 | -104 | -252 | ||||||||||||||||||||||||||
| NET CASH FLOW FROM BUSINESS OPERATIONS | -2 515 | -1 170 | -1 837 | ||||||||||||||||||||||||||
| CASH FLOW FROM INVESTING ACTIVITIES | |||||||||||||||||||||||||||||
| Investments in tangible and intangible assets | - | -1 276 | -552 | -1 201 | |||||||||||||||||||||||||
| Proceeds on disposal of tangible and intangible assets | + | 0 | 24 | 10 | |||||||||||||||||||||||||
| Loans given | - | 0 | 0 | 0 | |||||||||||||||||||||||||
| Repayment of loan receivables | + | 1 468 | 614 | 1 042 | |||||||||||||||||||||||||
| Acquisition of subsidiaries and other business units | - | 0 | 0 | -2 504 | |||||||||||||||||||||||||
| Disposal of subsidiaries and other business units | + | 0 | 0 | 0 | |||||||||||||||||||||||||
| NET CASH FLOW FROM INVESTMENTS | 192 | 87 | -2 653 | ||||||||||||||||||||||||||
| CASH FLOW FROM FINANCING ACTIVITIES | |||||||||||||||||||||||||||||
| Proceeds from share issue | + | 862 | 0 | 5 268 | |||||||||||||||||||||||||
| Proceeds from non-current borrowings | + | 0 | 0 | 0 | |||||||||||||||||||||||||
| Repayment of non-current borrowings | - | 0 | 0 | 0 | |||||||||||||||||||||||||
| Proceeds from current borrowings | + | 8 360 | 9 687 | 14 052 | |||||||||||||||||||||||||
| Repayment of current borrowings | - | -7 177 | -8 624 | -13 289 | |||||||||||||||||||||||||
| Dividends paid | - | -4 | 0 | 0 | |||||||||||||||||||||||||
| NET CASH FLOW FROM FINANCING ACTIVITIES | 2 041 | 1 063 | 6 030 | ||||||||||||||||||||||||||
| INCREASE (+) OR DECREASE (-) IN CASH FLOW | -282 | -20 | 1 540 | ||||||||||||||||||||||||||
| Statement of Changes in Equity | |||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||
| 1 000 EUR | Share capital | Other reserves | Translation difference | Distributable non-restricted equity fund | Retained earnings | Total | |||||||||||||||||||||||
| 31.12.2010 | 3 425 | 4 908 | -210 | 35 104 | -22 082 | 21 145 | |||||||||||||||||||||||
| Directed issue | 3 332 | 3 332 | |||||||||||||||||||||||||||
| Decrease from share issue | -136 | -136 | |||||||||||||||||||||||||||
| Translation difference, comprehensive income | 231 | 231 | |||||||||||||||||||||||||||
| Profit/loss for the period | -5 627 | -5 627 | |||||||||||||||||||||||||||
| 30.9.2011 | 3 425 | 4 908 | 21 | 38 436 | -27 845 | 18 945 | |||||||||||||||||||||||
| 1 000 EUR | Share capital | Other reserves | Translation difference | Distributable non-restricted equity fund | Retained earnings | Total | |||||||||||||||||||||||
| 31.12.2009 | 3 425 | 4 908 | 110 | 13 524 | -19 266 | 2 701 | |||||||||||||||||||||||
| Directed issue | 0 | ||||||||||||||||||||||||||||
| Translation difference, comprehensive income | -94 | -94 | |||||||||||||||||||||||||||
| Profit/loss for the period | -2 291 | -2 291 | |||||||||||||||||||||||||||
| 30.9.2010 | 3 425 | 4 908 | 16 | 13 524 | -21 557 | 317 | |||||||||||||||||||||||
| Segment information | |||||||||||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||||||||
| Face (Telecom) corporate transaction was completed on 30.11.2010, and Cencorp’s reporting structure was altered. Cencorp’s reporting for 2011 is based on two business segments. The business segments are Laser and Automation Applications, and Special Components. In 2010 Special Components business segment was consolidated in Cencorp's consolidated figures starting on 1 December 2010. | |||||||||||||||||||||||||||||
| 1 000 EUR | 1-9/2011 | 1-9/2010 | 1-12/2010 | ||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Laser and Automation Applications | 12 380 | 7 279 | 11 089 | ||||||||||||||||||||||||||
| Special Components | 7 601 | 0 | 1 733 | ||||||||||||||||||||||||||
| Eliminations | -69 | 0 | -12 | ||||||||||||||||||||||||||
| Total | 19 913 | 7 279 | 12 811 | ||||||||||||||||||||||||||
| Operating profit | |||||||||||||||||||||||||||||
| Laser and Automation Applications | -1 221 | -2 206 | -2 305 | ||||||||||||||||||||||||||
| Special Components | -3 663 | 0 | -16 | ||||||||||||||||||||||||||
| Eliminations | -49 | 0 | -807 | ||||||||||||||||||||||||||
| Total | -4 933 | -2 206 | -3 128 | ||||||||||||||||||||||||||
| EBITDA | |||||||||||||||||||||||||||||
| Laser and Automation Applications | -424 | -1 625 | -1 445 | ||||||||||||||||||||||||||
| Special Components | -1 827 | 0 | 209 | ||||||||||||||||||||||||||
| Eliminations | -49 | 0 | -807 | ||||||||||||||||||||||||||
| Total | -2 300 | -1 625 | -2 043 | ||||||||||||||||||||||||||
| Profit/loss for the period | |||||||||||||||||||||||||||||
| Laser and Automation Applications | -1 756 | -2 291 | -2 888 | ||||||||||||||||||||||||||
| Special Components | -3 991 | 0 | -367 | ||||||||||||||||||||||||||
| Eliminations | 121 | 0 | -229 | ||||||||||||||||||||||||||
| Total | -5 627 | -2 291 | -3 484 | ||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Laser and Automation Applications | 30 308 | 11 326 | 31 678 | ||||||||||||||||||||||||||
| Special Components | 24 738 | 0 | 28 712 | ||||||||||||||||||||||||||
| Eliminations | -19 868 | 0 | -19 551 | ||||||||||||||||||||||||||
| Total | 35 178 | 11 326 | 40 839 | ||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Laser and Automation Applications | 9 340 | 11 009 | 10 379 | ||||||||||||||||||||||||||
| Special Components | 13 961 | 0 | 14 161 | ||||||||||||||||||||||||||
| Eliminations | -7 068 | 0 | -4 845 | ||||||||||||||||||||||||||
| Total | 16 233 | 11 009 | 19 694 | ||||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||||||
| Laser and Automation Applications | 605 | 552 | 1 674 | ||||||||||||||||||||||||||
| Special Components | 423 | 0 | 259 | ||||||||||||||||||||||||||
| Eliminations | 0 | 0 | -127 | ||||||||||||||||||||||||||
| Total | 1 028 | 552 | 1 806 | ||||||||||||||||||||||||||
| Depreciation | |||||||||||||||||||||||||||||
| Laser and Automation Applications | 787 | 573 | 799 | ||||||||||||||||||||||||||
| Special Components | 1 836 | 0 | 226 | ||||||||||||||||||||||||||
| Eliminations | 0 | 0 | |||||||||||||||||||||||||||
| Total | 2 623 | 573 | 1 024 | ||||||||||||||||||||||||||
| Impairment | |||||||||||||||||||||||||||||
| Laser and Automation Applications | 10 | 9 | 61 | ||||||||||||||||||||||||||
| Special Components | 0 | 0 | 0 | ||||||||||||||||||||||||||
| Eliminations | 0 | 0 | 0 | ||||||||||||||||||||||||||
| Total | 10 | 9 | 61 | ||||||||||||||||||||||||||
| Key Figures | |||||
| (unaudited) | |||||
| 1 000 EUR | 7-9/2011 | 7-9/2010 | 1-9/2011 | 1-9/2010 | 1-12/2010 |
| Net sales | 6 373 | 2 695 | 19 913 | 7 279 | 12 811 |
| Operating profit | -1 198 | -175 | -4 933 | -2 206 | -3 128 |
| % of net sales | -18,8 | -6,5 | -24,8 | -30,3 | -24,4 |
| EBITDA | -390 | 23 | -2 300 | -1 625 | -2 043 |
| % of net sales | -6,1 | 0,8 | -11,6 | -22,3 | -15,9 |
| Profit before taxes | -820 | -477 | -5 584 | -2 316 | -3 496 |
| % of net sales | -12,9 | -17,7 | -28,0 | -31,8 | -27,3 |
| Balance Sheet value | 35 178 | 11 326 | 35 178 | 11 326 | 40 839 |
| Equity ratio, % | 54,2 | 3,0 | 54,2 | 3,0 | 52,2 |
| Net gearing, % | 44,2 | 1 762,6 | 44,2 | 1 762,6 | 41,6 |
| Gross investments | 212 | 171 | 1 028 | 552 | 1 806 |
| % of net sales | 3,3 | 6,4 | 5,2 | 7,6 | 14,1 |
| Research and development costs | 329 | 159 | 1 264 | 478 | 761 |
| % of net sales | 5,2 | 5,9 | 6,3 | 6,6 | 5,9 |
| Order book | 2 520 | 2 984 | 2 520 | 2 984 | 6 013 |
| Personnel on average | 334 | 71 | 345 | 73 | 98 |
| Personnel at the end of the period | 332 | 70 | 332 | 70 | 371 |
| Non-interest-bearing liabilities | 6 409 | 4 635 | 6 409 | 4 635 | 9 136 |
| Interest-bearing liabilities | 9 637 | 6 088 | 9 637 | 6 088 | 10 440 |
| Share key indicators | |||||
| Earnings/share (basic) | -0,002 | -0,003 | -0,02 | -0,02 | -0,02 |
| Earnings/share (diluted) | -0,002 | -0,003 | -0,02 | -0,02 | -0,02 |
| Equity/share | 0,06 | 0,002 | 0,06 | 0,002 | 0,07 |
| Highest price | 0,13 | 0,15 | 0,20 | 0,19 | 0,19 |
| Lowest price | 0,07 | 0,10 | 0,07 | 0,10 | 0,10 |
| Average price | 0,09 | 0,12 | 0,13 | 0,14 | 0,14 |
| Closing price | 0,09 | 0,15 | 0,09 | 0,15 | 0,15 |
| Market capitalisation, at the end of the period, MEUR | 30,8 | 20,2 | 30,8 | 20,2 | 47,2 |
| Calculation of Key Figures | |||||
| EBITDA, % | Operating profit for the period + depreciation + | ||||
| impairment | |||||
| Net sales for the period | |||||
| Equity ratio, %: | Total equity x 100 | ||||
| Total assets - advances received | |||||
| Net gearing, %: | Interest-bearing liabilities - cash and cash equivalents | ||||
| and marketable securities x 100 | |||||
| Shareholders' equity + minority interest | |||||
| Earnings/share (EPS): | Profit/loss for the period to the owner | ||||
| of the parent company | |||||
| Average number of shares adjusted for share issue | |||||
| at the end of the financial year | |||||
| Equity/share: | Equity attributable to shareholders of the parent company | ||||
| Undiluted number of shares on the balance sheet date | |||||
| Commitments and contingent liabilities | |||
| (unaudited) | |||
| 1 000 EUR | 30.9.2011 | 30.9.2010 | 31.12.2010 |
| Loans from financial institutions | 5 791 | 992 | 5 424 |
| Promissory notes secured by pledge | 12 691 | 12 691 | 12 691 |
| Mortgages on real estate | 5 123 | 0 | 5 006 |
| Deposits | 580 | 0 | 567 |
| Factoring loan, export credit limit and bank guarantee facility | 1 418 | 1 554 | 1 355 |
| Trade receivables | 1 414 | 2 074 | 1 720 |
| Promissory notes secured by pledge | 12 691 | 12 691 | 12 691 |
| Operating leases | |||
| Payable within one year | 45 | 36 | 28 |
| Payable over one year | 46 | 7 | 5 |
| Commitments | |||
| Payable within one year | 721 | 240 | 783 |
| Payable over one year | 4 179 | 994 | 5 071 |
For more information:
President and CEO Mats Eriksson, tel. +358 400 358 982, mats.eriksson@cencorp.com
Cencorp’s financial statement release for 2011 will be published on 17 February 2012 and its interim report for January–March 2012 on 8 May 2012.