WULFF GROUP PLC
INTERIM REPORT November 8, 2012 at 9:00 A.M.
WULFF GROUP PLC’S INTERIM REPORT FOR JANUARY 1 – SEPTEMBER 30, 2012
Net Sales Decreased, Net Profit Increased
- In January-September, the Group’s net sales decreased by 9 percentages down to EUR 65.1 million from last year’s EUR 71.6 million. The quarter’s net sales were EUR 19.8 million (EUR 22.0 million).
- In January-September, EBITDA was EUR 1.31 million (EUR 1.61 million) being 2.0 percentages (2.2 %) of net sales. In the third quarter, EBITDA was EUR 0.47 million (EUR 0.57 million) being 2.4 percentages (2.6 %) of net sales.
- In January-September, the operating profit (EBIT) was EUR 0.50 (EUR 0.81 million) being 0.8 percentages (1.1 %) of net sales. In the third quarter, EBIT was EUR 0.17 million (EUR 0.31 million) being 0.9 percentages (1.4 %) of net sales.
- The net profit after taxes rose up to a profit of EUR 0.40 million (EUR 0.26 million) in January-September. The net profit was EUR 0.17 million (EUR 0.12 million) in the third quarter.
- Earnings per share (EPS) were EUR 0.05 (EUR 0.03) in January-September and EUR 0.02 (EUR 0.02) in the third quarter.
GROUP’S NET SALES AND RESULT PERFORMANCE
In January-September, the Group’s net sales decreased by 9 percentages down to EUR 65.1 million from last year’s EUR 71.6 million. The quarter’s net sales were EUR 19.8 million (EUR 22.0 million). The general economic situation and the decrease in the products’ demand have led to the decrease in net sales. The reorganisations and operational optimisations in our corporate customers have decreased the demand for the Group’s products.
In January-September, EBITDA was EUR 1.31 million (EUR 1.61 million) being 2.0 percentages (2.2 %) of net sales. In the third quarter, EBITDA was EUR 0.47 million (EUR 0.57 million) being 2.4 percentages (2.6 %) of net sales. In January-September, the operating profit (EBIT) was EUR 0.50 (EUR 0.81 million) being 0.8 percentages (1.1 %) of net sales. In the third quarter, EBIT was EUR 0.17 million (EUR 0.31 million) being 0.9 percentages (1.4 %) of net sales.
In January-September, profitability improved in the Contract Customers Division and especially Wulff Entre, the company providing fair services, made a clear result improvement compared to 2011. Finland’s business and advertising gift businesses as well as the Scandinavian direct sales business were strengthened by merging and reorganising operations, which brought non-recurring expenses of EUR 0.1 million in the reporting period. The Group continues to review its expense structure and optimise its operations to improve the profitability of its businesses.
Wulff Group’s CEO Heikki Vienola: ”We have invested heavily in the development of our operations. Our customers have wished for more opportunities to centralize all their office supply purchases. They also want more eco-friendly services than before. Wulff’s solutions offer the customers more cost savings and efficient purchase management. The customers’ purchase process becoming even more diversified is a phenomenon that we have to consider and respect. We want to offer our customers the opportunity to do business with Wulff in the most convenient channel, whether it is the customer-specific service model, private meetings, webstore or a street-level shop. Here at Wulff, we think that customer orientation is the freedom to choose the purchase channel based on one’s own needs and preferences. Wulff has developed the Wulff brand, sales networks and the whole service range, according to the strategy. In August 2012, renewed Wulffinkulma stores were opened in Helsinki and Turku. We will ensure a good result with our strategic focusing on profitable business and operational efficiency. This year we have been able to increase our equity-to-assets ratio by more than four percentages by increasing equity and by lowering the capital tied in.”
In January-September, the financial income and expenses totalled (net) EUR -0.03 million (EUR -0.43 million) including dividend income of EUR 0.02 million (EUR 0.02 million), interest expenses of EUR 0.20 million (EUR 0.28 million) and mainly currency-related other financial items (net) EUR +0.15 million
(EUR -0.18 million). The quarter’s financial income and expenses netted EUR +0.01 million (EUR -0.16 million).
In January-September, the result before taxes rose up to EUR 0.47 million (EUR 0.38 million) and the net profit after taxes rose up to a profit of EUR 0.40 million being EUR 0.14 million better than in January-September 2011 (EUR 0.26 million). The quarter’s result before taxes was EUR 0.18 million (EUR 0.15 million) and net profit after taxes was EUR 0.17 million (EUR 0.12 million).
Earnings per share (EPS) were EUR 0.05 (EUR 0.03) in January-September and EUR 0.02 (EUR 0.02) in the third quarter.
Return on investment (ROI) was 2.48 percentage (2.32 %) for the whole reporting period and 0.98 percentage (0.83 %) in the third quarter. Return on equity (ROE) was 2.31 percentage (1.53 %) for the whole reporting period and 1.00 percentage (0.74 %) in the third quarter.
CONTRACT CUSTOMERS DIVISION
The Contract Customers Division is the customer’s comprehensive partner in the field of office supplies, IT supplies, business and promotional gifts as well as international fair services. The segment’s net sales were EUR 55.1 million (EUR 60.0 million) in January-September and EUR 17.1 million (EUR 18.9 million) in the third quarter. The division’s operating profit was EUR 1.29 (EUR 1.26 million) in January-September and EUR 0.43 million (EUR 0.61 million) in the third quarter.
The general economic situation and the decrease in the products’ demand have led to the decrease in net sales. The Group’s webstore Wulffinkulma.fi has shown good growth and profit increase, and it is an important investment for the future bringing quick results. Wulff has developed the Wulff brand, sales networks and the whole service range, according to the strategy. In August 2012, renewed Wulffinkulma stores were opened in Helsinki and Turku. For the first time, the stores exhibit the Group’s entire product range. In addition to office supplies and business gifts, the stores exhibit Wulff’s Green products and recycling centres. Wulffinkulma stores serve local small and medium-sized corporate customers, entrepreneurs and consumers. In September, Wulff’s service concept in Åland was also renewed.
Wulff Entre, the company offering international fair services, continued to make good result by focusing on profitable services and its special expertise in the international fair services. Investing in sales and its development has resulted in both stronger customer relationships and an increase in clientele. In 2012, Wulff Entre exports Finnish companies’ know-how to more than 30 countries. Wulff Entre is the market leader in Finland in its field and there has been a solid trust in Entre’s ability to find the right international venues for over 90 years.
The division’s result is affected by the cycles of the business and promotional gift market: the majority of the products are delivered and the majority of the annual profit is generated in the second and the last quarter of the year. Wulff Group’s business gift companies, Finland’s two oldest business and promotional gift companies, Ibero Liikelahjat Oy and KB-tuote Oy, merged into Wulff Liikelahjat Oy in spring 2012. Wulff Liikelahjat Oy’s goal is to be the biggest and strongest player in Finland’s business gift industry. The merging and development of the Group’s business gift operations brought non-recurring expenses of EUR 0.1 million in the reporting period. According to the Group’s strategy, it is very important to invest in the constant development of services and renew the Group structure when necessary. The company’s new showroom and office premises are located near great transport connections in Ruoholahti, Helsinki.
DIRECT SALES DIVISION
The Direct Sales Division aims to improve its customers’ daily operations with innovative products as well as the industry’s most professional personal and local service. The division’s net sales were EUR 10.0 million (EUR 11.7 million) in January-September and EUR 2.6 million (EUR 3.1 million) in the third quarter. The operating result totalled EUR -0.14 million (EUR 0.14 million) in January-September and EUR -0.05 million (EUR -0.11 million) in the third quarter. The result was affected by e.g. the reorganisation costs of the Scandinavian direct sales operations, among other things.
The Division’s profitability is improved by concentrating on profitable product and service fields and by optimising the operations’ efficiency. Wulff invests strongly in the development of the product and service range and aims to increase the synergy of the purchasing operations by group wide competitive bidding and cooperation. Unifying the sales support systems and introducing the new CRM program are important investments for the future. Up-to-date and unified tools and systems save time and facilitate the sales work leaving more time for customer service.
The number and the skill level of the sales personnel affect especially the performance of Direct Sales. New sales personnel are being actively recruited by, for example, campaigning in the social media. Wulff’s own introduction and training programmes ensure that every sales person gets both a comprehensive starting training and further education on how to improve one’s own know-how.
FINANCING, INVESTMENTS AND FINANCIAL POSITION
The cash flow from operating activities was EUR -0.56 million (EUR -3.07 million) in the whole reporting period and EUR -0.92 million (EUR -0.35 million) in the third quarter. In this industry it is typical that the result and cash flow are generated in the last quarter. Traditionally cash flow is negative in July-September when sales invoicing is minimal due to summer holidays and the personnel are paid their yearly holiday pays. A total of EUR 1.3 million less working capital was tied in the inventories than a year ago.
For its fixed asset investments, the Group paid a net of EUR 0.56 million (EUR 0.53 million) in the entire reporting period and EUR 0.24 million (EUR 0.32 million) in the third quarter. Wulff Group Plc paid its shareholders dividends of EUR 0.46 million (EUR 0.33 million) and additionally the subsidiaries’ non-controlling shareholders were paid dividends of EUR 0.07 million (EUR 0.11 million). The Group paid EUR 0.05 million for the acquisitions and disposals of non-controlling interests in Wulff Supplies AB and Wulff Direct AS to the subsidiaries’ key personnel in the first half of 2012.
In total, the Group’s cash flow was EUR -1.43 million (EUR -3.28 million) in the entire reporting period and EUR -0.38 million (EUR -0.50 million) in the third quarter. The Group’s bank and cash funds totalled EUR 2.46 million in the beginning of the year and EUR 1.14 million in the end of September 2012.
In January-September, the equity-to-assets ratio increased to 43.5 percentages (December 31, 2011: 40.3 %). Equity attributable to the equity holders of the parent company was EUR 2.46 per share (December 31, 2011: EUR 2.45).
SHARES AND SHARE CAPITAL
Wulff Group Plc’s share is listed on NASDAQ OMX Helsinki in the Small Cap segment under the Industrials sector. The company’s trading code is WUF1V. In the end of the reporting period, the share was valued at EUR 2.00 (EUR 2.25) and the market capitalization of the outstanding shares totalled EUR 13.0 million (EUR 14.7 million).
This year no own shares have been reacquired. As a part of the Group’s share-based incentive scheme, Wulff Group granted 5.000 own shares to a key person. In the end of the reporting period, the Group held 85.000 (September 30, 2011: 90.000) own shares representing 1.3 percentage (1.4 %) of the total number and voting rights of Wulff shares. According to the Annual General Meeting’s authorisation on April 23, 2012, the Board of Directors decided in its organizing meeting to continue the acquisition of its own shares, by acquiring a maximum of 300.000 own shares by April 30, 2013.
PERSONNEL
In January-September 2012, the Group’s personnel totalled 345 (374) employees on average. In the end of the period, the Group had 330 (377) employees of which 132 (141) persons were employed in Sweden, Norway, Denmark or Estonia.
The majority, approximately 60 percentages of the Group’s personnel works in sales operations and approximately 40 percentages of the employees work in sales support, logistics and administration. The personnel consists approximately half-and-half of men and women.
The Group has renewed its training and development programs. Wulff Talent, launched in 2012, is the Group’s own training program for almost 30 key person. Wulff Talent improves leadership skills and develops new business operations.
STRENGTHENING OF THE GROUP EXECUTIVE BOARD
In September 2012, Topi Ruuska (born 1956) was appointed as a member of the Wulff Group Executive Board. Ruuska’s responsibilities include international fair services as well as business and advertising gift services. Wulff Entre is a company specialising in international fair services and it exports Finnish companies and their know-how to different countries. Wulff Liikelahjat Oy offers its customers the best Finnish business gift knowledge, a vast number of ideas and the industry’s most comprehensive product range.
Ruuska has worked in Wulff Group since April 2011 and in collaboration with Wulff companies since 2009. Ruuska has a long, over 30-year experience in sales development and leadership; he has also worked as a sales coach for a long time. The Group Executive Board has now strong knowledge of all our businesses which enables the development of our broad service concept even better.
In addition to Ruuska, Wulff Group Executive Board members are Group CEO Heikki Vienola (Chairman, Finland), Wulff Oy Ab’s Managing Director Sami Asikainen (Finland), Wulff Supplies AB’s Managing Director Trond Fikseaunet (Norway), Group CFO Kati Näätänen (Finland), Group Communications and Marketing Director Tarja Törmänen (Finland) and Wulff Direct Sales Scandinavia’s Director Veijo Ågerfalk (Sweden).
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand for office supplies is still affected by the organizations’ personnel lay-offs and cost-saving initiatives made during the economic downturn. The general uncertainty may still continue which will most likely affect the ordering behaviour of some corporate clients.
Although the business gifts are seen increasingly as a part of the corporate communications as a whole and they are utilized also in the off-season, some cost savings may be sought after by decreasing the investments in the brand promotion. The ongoing economic uncertainties impact especially the demand for business and promotional gifts. During the uncertain economic periods, the corporations may also minimize attending fairs.
Half of the Group’s net sales come from other than euro-currency countries. Fluctuation of the currencies affects the Group’s net result and financial position.
MARKET SITUATION AND FUTURE OUTLOOK
Wulff is the most significant Nordic player in its industry. Wulff’s mission is to help its corporate customers to succeed in their own business by providing them with leading-edge products and services in a way best suitable to them. The markets have been consolidating in the past few years and the Nordic markets are expected to consolidate in the future as well. Wulff is prepared to carry out new strategic acquisitions.
The Group continues taking actions for enhancing profitability. The Group focuses on the growth and development of its sales operations. The Group expects to win new customers and gain growth especially along with Wulff Supplies AB in Scandinavia and with the webstore Wulffinkulma.fi in Finland. Based on the Group management’s outlook for 2012 (stock exchange release on July 17, 2012), the annual net sales will decrease from last year’s level (2011: EUR 99 million) but the Group has still good opportunities to increase the operating profit excluding non-recurring items (2011: EUR 1.6 million) due to the cost-efficiency improvement actions taken. Typically in the industry, the annual profit is made in the last quarter of the year.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
INCOME STATEMENT | III | III | I-III | I-III | I-IV |
EUR 1000 | 2012 | 2011 | 2012 | 2011 | 2011 |
Net sales | 19 768 | 21 971 | 65 133 | 71 603 | 99 129 |
Other operating income | 25 | 37 | 147 | 214 | 238 |
Materials and services | -13 054 | -14 909 | -42 016 | -47 478 | -65 532 |
Employee benefit expenses | -3 829 | -3 914 | -13 767 | -13 920 | -19 204 |
Other operating expenses | -2 440 | -2 618 | -8 188 | -8 814 | -11 942 |
EBITDA | 470 | 567 | 1 310 | 1 605 | 2 689 |
Depreciation and amortization | -296 | -259 | -814 | -795 | -1 095 |
Operating profit/loss | 174 | 308 | 496 | 810 | 1 595 |
Financial income | 176 | 0 | 302 | 105 | 182 |
Financial expenses | -166 | -157 | -333 | -539 | -637 |
Profit/Loss before taxes | 184 | 151 | 465 | 376 | 1 139 |
Income taxes | -13 | -29 | -67 | -122 | -320 |
Net profit/loss for the period | 171 | 122 | 398 | 255 | 819 |
Attributable to: | |||||
Equity holders of the parent company | 150 | 105 | 348 | 166 | 634 |
Non-controlling interest | 21 | 17 | 49 | 89 | 185 |
Earnings per share for profit | |||||
attributable to the equity holders | |||||
of the parent company: | |||||
Earnings per share, EUR | 0,02 | 0,02 | 0,05 | 0,03 | 0,10 |
(diluted = non-diluted) | |||||
STATEMENT OF COMPREHENSIVE INCOME | III | III | I-III | I-III | I-IV |
EUR 1000 | 2012 | 2011 | 2012 | 2011 | 2011 |
Net profit/loss for the period | 171 | 122 | 398 | 255 | 819 |
Other comprehensive income, net of tax | |||||
Change in translation differences | 139 | -45 | 228 | -76 | 34 |
Fair value changes on available-for-sale investments | 1 | -44 | -4 | -57 | -4 |
Total other comprehensive income | 140 | -90 | 224 | -134 | 30 |
Total comprehensive income for the period | 311 | 32 | 622 | 121 | 849 |
Total comprehensive income attributable to: | |||||
Equity holders of the parent company | 259 | 21 | 510 | 93 | 663 |
Non-controlling interest | 52 | 11 | 111 | 28 | 186 |
STATEMENT OF FINANCIAL POSITION | Sept 30 | Sept 30 | Dec 31 | ||
EUR 1000 | 2012 | 2011 | 2011 | ||
ASSETS | |||||
Non-current assets | |||||
Goodwill | 9 574 | 9 396 | 9 467 | ||
Other intangible assets | 1 310 | 1 393 | 1 355 | ||
Property, plant and equipment | 2 030 | 1 984 | 2 102 | ||
Non-current financial assets | |||||
Interest-bearing financial assets | 69 | 143 | 97 | ||
Non-interest-bearing financial assets | 362 | 365 | 367 | ||
Deferred tax assets | 1 850 | 1 342 | 1 621 | ||
Total non-current assets | 15 195 | 14 622 | 15 008 | ||
Current assets | |||||
Inventories | 10 164 | 11 453 | 10 860 | ||
Current receivables | |||||
Interest-bearing receivables | 39 | 0 | 51 | ||
Non-interest-bearing receivables | 15 684 | 16 054 | 16 066 | ||
Financial assets recognised at fair value through profit/loss | 71 | 63 | 56 | ||
Cash and cash equivalents | 1 135 | 1 155 | 2 464 | ||
Total current assets | 27 094 | 28 725 | 29 497 | ||
TOTAL ASSETS | 42 289 | 43 347 | 44 505 | ||
EQUITY AND LIABILITIES | |||||
Equity | |||||
Equity attributable to the equity holders of the parent company: | |||||
Share capital | 2 650 | 2 650 | 2 650 | ||
Share premium fund | 7 662 | 7 662 | 7 662 | ||
Invested unrestricted equity fund | 223 | 223 | 223 | ||
Retained earnings | 5 519 | 4 889 | 5 461 | ||
Non-controlling interest | 1 183 | 1 042 | 1 198 | ||
Total equity | 17 237 | 16 465 | 17 195 | ||
Non-current liabilities | |||||
Interest-bearing liabilities | 6 417 | 7 422 | 7 409 | ||
Deferred tax liabilities | 122 | 116 | 128 | ||
Total non-current liabilities | 6 539 | 7 538 | 7 537 | ||
Current liabilities | |||||
Interest-bearing liabilities | 3 397 | 4 631 | 2 135 | ||
Non-interest-bearing liabilities | 15 116 | 14 713 | 17 639 | ||
Total current liabilities | 18 513 | 19 344 | 19 773 | ||
TOTAL EQUITY AND LIABILITIES | 42 289 | 43 347 | 44 505 |
STATEMENT OF CASH FLOW | III | III | I-III | I-III | I-IV |
EUR 1000 | 2012 | 2011 | 2012 | 2011 | 2011 |
Cash flow from operating activities: | |||||
Cash received from sales | 19 360 | 21 218 | 65 728 | 70 547 | 98 153 |
Cash received from other operating income |
16 | 43 | 38 | 115 | 130 |
Cash paid for operating expenses | -20 165 | -21 473 | -65 729 | -73 251 | -96 462 |
Cash flow from operating activities before financial items and income taxes | -790 | -212 | 38 | -2 590 | 1 821 |
Interest paid | -68 | -84 | -149 | -230 | -278 |
Interest received | 4 | 25 | 36 | 63 | 93 |
Income taxes paid | -67 | -81 | -482 | -309 | -605 |
Cash flow from operating activities | -921 | -353 | -557 | -3 066 | 1 031 |
Cash flow from investing activities: | |||||
Investments in intangible and tangible assets |
-254 | -324 | -771 | -987 | -1 253 |
Proceeds from sales of intangible and tangible assets |
14 | 3 | 216 | 456 | 456 |
Loans granted | -6 | -12 | -12 | ||
Repayments of loans receivable | 3 | 8 | 74 | 74 | |
Cash flow from investing activities | -237 | -322 | -553 | -470 | -735 |
Cash flow from financing activities: | |||||
Acquisition of own shares | -3 | -3 | |||
Dividends paid | -36 | -531 | -433 | -433 | |
Dividends received | 1 | 20 | 22 | 40 | |
Payments for subsidiary share acquisitions |
-129 | -982 | -982 | ||
Payments received for subsidiary share disposals |
81 | ||||
Cash paid for (received from) short-term investments (net) |
-28 | 36 | -32 | -63 | -56 |
Withdrawals and repayments of short-term loans |
1 316 | 269 | 1 472 | 2 748 | 173 |
Withdrawals of long-term loans | 355 | 385 | |||
Repayments of long-term loans | -512 | -99 | -1 556 | -1 029 | -1 348 |
Cash flow from financing activities | 776 | 170 | -321 | 260 | -2 226 |
Change in cash and cash equivalents | -383 | -504 | -1 431 | -3 276 | -1 930 |
Cash and cash equivalents at the beginning of the period | 1 469 | 1 636 | 2 464 | 4 379 | 4 379 |
Translation difference of cash | 49 | 23 | 102 | 51 | 15 |
Cash and cash equivalents at the end of the period | 1 135 | 1 155 | 1 135 | 1 155 | 2 464 |
STATEMENT OF CHANGES IN EQUITY
EUR 1000 | Equity attributable to equity holders of the parent company | ||||||||
Fund | |||||||||
for in | |||||||||
vested | Trans | Re | Non | ||||||
Share | non-re | lation | tai | cont | |||||
pre | strict | diffe | ned | rolling | |||||
* net of tax | Share | mium | ed | Own | ren | Earn | inte | ||
capital | fund | equity | shares | ces | ings | Total | rest | TOTAL | |
Equity on Jan 1, 2011 | 2 650 | 7 662 | 223 | -279 | -149 | 5 549 | 15 656 | 1 158 | 16 814 |
Net profit / loss for the period | 166 | 166 | 89 | 255 | |||||
Other comprehens. income*: | |||||||||
Change in translation diff | -15 | -15 | -61 | -76 | |||||
Fair value changes on available-for-sale investments |
-57 | -57 | -57 | ||||||
Comprehensive income * | 0 | 0 | 0 | 0 | -15 | 109 | 94 | 28 | 121 |
Dividends paid | -325 | -325 | -108 | -433 | |||||
Treasury share acquisition | -3 | -3 | -3 | ||||||
Share- based payments | 3 | 3 | 3 | ||||||
Changes in ownership | 0 | -36 | -36 | ||||||
Equity on Sept 30, 2011 | 2 650 | 7 662 | 223 | -283 | -164 | 5 335 | 15 424 | 1 042 | 16 466 |
Equity on Jan 1, 2011 | 2 650 | 7 662 | 223 | -279 | -149 | 5 549 | 15 656 | 1 158 | 16 814 |
Net profit / loss for the period | 634 | 634 | 185 | 819 | |||||
Other comprehens. income*: | |||||||||
Change in translation diff | 33 | 33 | 1 | 34 | |||||
Fair value changes on available-for-sale investments |
-4 | -4 | -4 | ||||||
Comprehensive income * | 0 | 0 | 0 | 0 | 33 | 630 | 663 | 186 | 849 |
Dividends paid | -325 | -325 | -110 | -435 | |||||
Treasury share acquisition | -3 | -3 | -3 | ||||||
Share- based payments | 5 | 5 | 5 | ||||||
Changes in ownership | 0 | -36 | -36 | ||||||
Equity on Dec 31, 2011 | 2 650 | 7 662 | 223 | -283 | -116 | 5 860 | 15 996 | 1 198 | 17 195 |
Equity on Jan 1, 2012 | 2 650 | 7 662 | 223 | -283 | -116 | 5 860 | 15 996 | 1 198 | 17 195 |
Net profit / loss for the period | 348 | 348 | 49 | 398 | |||||
Other comprehens. income*: | |||||||||
Change in translation diff | 166 | 166 | 62 | 228 | |||||
Fair value changes on available-for-sale investments |
-4 | -4 | -4 | ||||||
Comprehensive income * | 0 | 0 | 0 | 0 | 166 | 345 | 510 | 111 | 622 |
Dividends paid | -457 | -457 | -78 | -535 | |||||
Treasury share disposal | 11 | -11 | 0 | 0 | |||||
Share- based payments | 4 | 4 | 4 | ||||||
Changes in ownership | 0 | -48 | -48 | ||||||
Equity on Sept 30, 2012 | 2 650 | 7 662 | 223 | -272 | 50 | 5 741 | 16 054 | 1 183 | 17 237 |
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEGMENT INFORMATION | III | III | I-III | I-III | I-IV |
EUR 1000 | 2012 | 2011 | 2012 | 2011 | 2011 |
Net sales by operating segments | |||||
Contract Customers Division | 17 105 | 18 864 | 55 058 | 59 962 | 82 542 |
Direct Sales Division | 2 573 | 3 114 | 10 019 | 11 705 | 16 397 |
Group Services | 255 | 245 | 843 | 767 | 1 138 |
Intersegment eliminations | -165 | -252 | -787 | -831 | -948 |
TOTAL NET SALES | 19 768 | 21 971 | 65 133 | 71 603 | 99 129 |
Operating profit/loss by operating segments | |||||
Contract Customers Division | 431 | 614 | 1 285 | 1 257 | 2 136 |
Direct Sales Division | -49 | -109 | -138 | 137 | 215 |
Group Services and non-allocated items | -208 | -197 | -652 | -585 | -756 |
TOTAL OPERATING PROFIT/LOSS | 174 | 308 | 496 | 810 | 1 595 |
KEY FIGURES | III | III | I-III | I-III | I-IV |
EUR 1000 | 2012 | 2011 | 2012 | 2011 | 2011 |
Net sales | 19 768 | 21 971 | 65 133 | 71 603 | 99 129 |
Change in net sales, % | -10,0 % | 7,5 % | -9,0 % | 8,4 % | 6,5 % |
EBITDA | 470 | 567 | 1 310 | 1 605 | 2 689 |
EBITDA margin, % | 2,4 % | 2,6 % | 2,0 % | 2,2 % | 2,7 % |
Operating profit/loss | 174 | 308 | 496 | 810 | 1 595 |
Operating profit/loss margin, % | 0,9 % | 1,4 % | 0,8 % | 1,1 % | 1,6 % |
Profit/Loss before taxes | 184 | 151 | 465 | 376 | 1 139 |
Profit/Loss before taxes margin, % | 0,9 % | 0,7 % | 0,7 % | 0,5 % | 1,1 % |
Net profit/loss for the period attributable to equity holders of the parent company | 150 | 105 | 348 | 166 | 634 |
Net profit/loss for the period, % | 0,8 % | 0,5 % | 0,5 % | 0,2 % | 0,6 % |
Earnings per share, EUR (diluted = non-diluted) | 0,02 | 0,02 | 0,05 | 0,03 | 0,10 |
Return on equity (ROE), % | 1,00 % | 0,74 % | 2,31 % | 1,53 % | 4,82 % |
Return on investment (ROI), % | 0,98 % | 0,83 % | 2,48 % | 2,32 % | 5,45 % |
Equity-to-assets ratio at the end of period, % | 43,5 % | 39,1 % | 43,5 % | 39,1 % | 40,3 % |
Debt-to-equity ratio at the end of period | 49,7 % | 65,3 % | 49,7 % | 65,3 % | 40,3 % |
Equity per share at the end of period, EUR * | 2,46 | 2,37 | 2,46 | 2,37 | 2,45 |
Investments in non-current assets | 233 | 358 | 752 | 932 | 1 167 |
Investments in non-current assets, % of net sales | 1,2 % | 1,6 % | 1,2 % | 1,3 % | 1,2 % |
Treasury shares held by the Group at the end of period | 85 000 | 90 000 | 85 000 | 90 000 | 90 000 |
Treasury shares, % of total share capital and votes | 1,3 % | 1,4 % | 1,3 % | 1,4 % | 1,4 % |
Number of total issued shares at the end of period | 6607628 | 6607628 | 6607628 | 6607628 | 6607628 |
Personnel on average during the period | 326 | 371 | 345 | 374 | 365 |
Personnel at the end of period | 330 | 377 | 330 | 377 | 359 |
* Equity attributable to the equity holders of the parent company / Number of shares excluding the acquired own shares
QUARTERLY KEY FIGURES | III | II | I | IV | III | II | I |
EUR 1000 | 2012 | 2012 | 2012 | 2011 | 2011 | 2011 | 2011 |
Net sales | 19 768 | 22 039 | 23 326 | 27 526 | 21 971 | 24 390 | 25 242 |
EBITDA | 470 | 364 | 476 | 1 084 | 567 | 756 | 282 |
Operating profit/loss | 174 | 106 | 216 | 785 | 308 | 491 | 10 |
Profit/Loss before taxes | 184 | 58 | 223 | 763 | 151 | 318 | -93 |
Net profit/loss for the period attributable to the equity holders of the parent company | 150 | 25 | 174 | 468 | 105 | 241 | -180 |
Earnings per share, EUR (diluted = non-diluted) | 0,02 | 0,00 | 0,03 | 0,07 | 0,02 | 0,04 | -0,03 |
RELATED PARTY TRANSACTIONS | III | III | I-III | I-III | I-IV |
EUR 1000 | 2012 | 2011 | 2012 | 2011 | 2011 |
Sales to related parties | 46 | 61 | 137 | 159 | 184 |
Purchases from related parties | 38 | 5 | 47 | 23 | 30 |
Current non-interest-bearing receivables from related parties | 0 | 0 | 0 | 0 | 6 |
Non-current interest-bearing receivables from related parties | 59 | 102 | 59 | 102 | 87 |
Loan payables to related parties | 0 | 0 | 0 | 0 | 0 |
COMMITMENTS | Sept 30 | Sept 30 | Dec 31 | ||
EUR 1000 | 2012 | 2011 | 2011 | ||
Mortgages and guarantees on own behalf | |||||
Business mortgage for the Group's loan liabilities | 7 350 | 7 350 | 7 350 | ||
Real estate pledge for the Group's loan liabilities | 900 | 900 | 900 | ||
Subsidiary shares pledged as security for group companies' liabilities |
3 284 | 3 284 | 3 284 | ||
Other listed shares pledged as security for group companies' liabilities |
210 | 212 | 215 | ||
Current receivables pledged as security for group companies' liabilities |
271 | 254 | 258 | ||
Pledges and guarantees given for the group companies' off-balance sheet commitments |
232 | 219 | 222 | ||
Guarantees given on behalf of third parties | 130 | 191 | 176 | ||
Minimum future operating lease payments | 6 126 | 6 046 | 5 861 |
Accounting principles applied in the condensed consolidated financial statements
These condensed consolidated financial statements are unaudited. This report has been prepared in accordance with IAS 34 following the valuation and accounting methods guided by IFRS principles. The accounting principles used in the preparation of this report are consistent with those described in the previous year’s Financial Statement taking into account also the possible new, revised and amended standards and interpretations. Income tax is the amount corresponding to the actual effective rate based on year-to-date actual tax calculation.
The IFRS principles require the management to make estimates and assumptions when preparing financial statements. Although these estimates and assumptions are based on the management’s best knowledge of today, the final outcome may differ from the estimated values presented in the financial statements.
A part of the Group’s loan agreements include covenants, according to which the equity ratio shall be 35 percentages at minimum and the interest-bearing debt/EBITDA ratio shall be 3.5 at maximum in the end of each financial year. On December 31, 2011 the covenants were reached successfully. The equity ratio of 40.3 % exceeded the requirement and the interest-bearing debt/EBITDA ratio was 3.5 in accordance with the covenant requirement.
The Group has no knowledge of any significant events after the end of the financial period that would have had a material impact on this report in any other way that has been already discussed in the review by the Board of Directors.
In Vantaa on November 7, 2012
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
CEO Heikki Vienola
tel. +358 9 5259 0050 or mobile: +358 50 65 110
e-mail: heikki.vienola@wulff.fi
DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.wulff-group.com