TIIMARI PLC
Stock Exchange Release 27 January 2012 at 13.50
During 2011 and in the beginning of 2012 Tiimari has investigated the option to sell the Gallerix business in Sweden. In an arrangement, which came into force today on January 27, 2012, Gallerix International AB and its owned subsidiaries Gallerix Sweden AB and Gallerix Skärholmen AB have been sold to the operative management as well as the intercompany receivables and liabilities between Tiimari and the sold Gallerix companies have been paid.
As a result of the arrangement a non-recurring expense of EUR 4.5 million is recorded in Tiimari Group’s result for 2011. The arrangement’s net cash flow effect to the Tiimari Group is about EUR 1.6 million, which is planned to be used for repayment of interest-bearing liabilities and for development of Tiimari business. As a result of the arrangement the net working capital will be reduced by about EUR 1 million and assets and liabilities about EUR 10 million.
Due to the share transaction the Gallerix segment will be reported as discontinued operations in the financial statements 2011.
The arrangement is expected to improve Tiimari Group’s opportunities and resources to focus on the development of the Tiimari business in Finland and Baltic countries. The arrangement is not otherwise expected to have any significant impact on Tiimari Group’s operative business or personnel.
Gallerix segment’s sales in year 2011 were EUR 17.4 million (preliminary). On September 30, 2011 the Gallerix chain consisted a total of 83 retail shops in Sweden and Gallerix Sweden AB’s average number of employees was 80 (January, 1 – September, 30, 2011).
The following table shows Tiimari Group’s segment information to illustrate the financial effects of the arrangement. The information is based on the company’s unaudited Interim Report for the reporting period of January, 1 – September, 30, 2011.
| SEGMENT INFORMATION | |||||
| NET SALES | |||||
| EUR 1 000 | 2011 | 2010 | 2010 | ||
| 1-9 | 1-9 | 1-12 | |||
| Tiimari | 34 142 | 36 840 | 61 924 | ||
| Gallerix | 10 738 | 9 066 | 13 914 | ||
| Other operations | 0 | 356 | 376 | ||
| Eliminations | -54 | -396 | -416 | ||
| Group | 44 825 | 45 866 | 75 797 | ||
| EBITDA | |||||
| EUR 1 000 | 2011 | 2010 | 2010 | ||
| 1-9 | 1-9 | 1-12 | |||
| Tiimari | -10 476 | -5 580 | -1 330 | ||
| Gallerix | -677 | -293 | 135 | ||
| Other operations | -737 | -1 076 | -1 376 | ||
| Group | -11 891 | -6 949 | -2 571 | ||
| OPERATING PROFIT | |||||
| EUR 1 000 | 2011 | 2010 | 2010 | ||
| 1-9 | 1-9 | 1-12 | |||
| Tiimari | -11 556 | -7 240 | -10 435 | ||
| Gallerix | -1 246 | -962 | -724 | ||
| Other operations | -789 | -1 150 | -1 455 | ||
| Group | -13 592 | -9 352 | -12 613 | ||
| DEPRECIATION AND GOODWILL IMPAIRMENT | |||||
| EUR 1 000 | 2011 | 2010 | 2010 | ||
| 1-9 | 1-9 | 1-12 | |||
| Tiimari | 1 080 | 1 660 | 9 105 | ||
| Gallerix | 569 | 669 | 859 | ||
| Other operations | 52 | 74 | 79 | ||
| Group | 1 701 | 2 403 | 10 042 | ||
| CAPITAL EXPENDITURE | |||||
| EUR 1 000 | 2011 | 2010 | 2010 | ||
| 1-9 | 1-9 | 1-12 | |||
| Tiimari | 104 | 475 | 622 | ||
| Gallerix | 138 | 32 | 33 | ||
| Other operations | 0 | 10 | 10 | ||
| Group | 242 | 517 | 665 | ||
Board of Directors
Tiimari Plc
Further information:
CEO, Niila Rajala, +358 (0)3 812911, niila.rajala@tiimari.fi
CFO, Jarmo Kanervo, +358 (0)3 812911, jarmo.kanervo@tiimari.fi
Distribution:
NASDAQ OMX Helsinki
important news media
www.tiimari.com
Tiimari Plc is a listed company. The Group consists of two retail store concepts: Tiimari and Gallerix. The concepts operate around 300 shops in five countries around the Baltic Sea region. Both concepts are forerunners in their respective fields.