HONKARAKENNE OYJ FINANCIAL STATEMENT RELEASE 13 February 2014 at 3.00 p.m.
HONKARAKENNE OYJ’S FINANCIAL STATEMENT RELEASE 1 JANUARY - 31 DECEMBER 2013
SUMMARY
In 2013 the net sales increased from previous year by 4 per cent, but the result before taxes was however negative. During the last quarter of the year net sales increased by 23 per cent compared to the same period of the previous year and the Group’s order book stood at 14 per cent higher level than last year.
September - December 2013
- Honkarakenne Group's consolidated net sales for the last quarter of the year amounted to MEUR 17.0 (MEUR 13.9 in 2012), representing an increase over the same period the previous year of 23 %
- Operating profit/loss was MEUR 0.1 (MEUR -3.0). Operating profit/loss without non-recurring items was MEUR 0.7 (MEUR 0.5)
- Loss before taxes was MEUR -0.1 (MEUR -2.8)
- Earnings per share amounted to EUR -0.07 (EUR -0.66)
Year 2013
- Honkarakenne Group’s consolidated net sales for the entire year was MEUR 48.3 (46.2.), representing an increase over the same period the previous year of 4 %
- Operating loss was MEUR -1.7 (MEUR -4.3). Operating loss before non-recurring items was MEUR -1.1 (MEUR -0.8)
- Loss before taxes was MEUR -1.7 (MEUR -4.4)
- Earnings per share amounted to EUR -0.32 (EUR -0.90)
The co-operation negotiations that ended in the last quarter and efficiency activities resulted in MEUR 0.6 being recognised as non-recurring expenses for the financial year 2013.
The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the financial year ending 31 December 2013.
In 2014, Honkarakenne expects its net sales to increase and its result before non-recurring items and taxes to be positive because the order book is at higher level than in previous year and the company has taken significant efficiency measures during year 2013.
| KEY INDICATORS |
10–12/ 2013 |
10–12/ 2012 |
1-12/ 2013 |
1-12/ 2012 |
change % |
| Net sales, MEUR | 17.0 | 13.9 | 48.3 | 46.2 | 4 |
| Operating profit/loss, MEUR | 0.1 | -3.0 | -1.7 | -4.3 | |
| Operating profit before non-recurring items, MEUR | 0.7 | 0.5 | -1.1 | -0.8 | |
| Profit/loss before taxes, MEUR | -0.1 | -2.8 | -1.7 | -4.4 | |
| Average number of personnel | 213 | 257 | |||
| Personnel in person-years, average | 185 | 198 | |||
| Earnings/share (EPS), EUR | -0.07 | -0.66 | -0.32 | -0.90 | |
| Equity ratio, % | 38 | 47 | |||
| Return on equity, % | -13 | -28 | |||
| Shareholders' equity/share, EUR | 2.20 | 2.69 | |||
| Gearing, % | 57 | 11 |
Mikko Kilpeläinen, President and CEO of Honkarakenne Oyj, in connection with the financial statement release:
“The market environment on housing and recreational construction continued to be challenging in our single major markets in Finland and Russia. The slowdown of economic growth reflected as delays in customer’s willingness to make purchasing decisions. In spite of this our sales were at same level as previous year in Russia but decreased in CIS countries. In Finland recreational and housing construction decreased by -7.5 per cent compared to previous year, but in these challenging circumstances we were able to increase our sales and further market share. The +4 per cent growth in net sales in year 2013 can be considered as satisfactory when uncertain economic situation, slowdown of housing market and decrease in construction are taken into consideration.
2013 was a year of major change. At the end part of previous year, we had reorganised our operational steering model into three business areas and by that the transparency of operations was improved and more market oriented operations model was sought. As a result I consider it delightful that net sales during the fourth quarter were 23 per cent higher than in the previous year, the Group's order book was also 14 per cent higher than in 2013. This gives us a good foundation for growth in 2014.
Another significant change was the consolidation of operations, and in particular production, in Karstula. At the same time, we also invested in equipment to boost the efficiency of production and that will result more efficient production. In addition we put strong efforts to product and model collection development to seek additional value to customers and by that to generate growth to the company.
With an eye to growth in 2014, during October–December we made extensive preparations to enter the Chinese market in the first quarter of 2014. We established a representative office in China and signed retailer agreements with an excellent distributor network in accordance with our preliminary estimates. I expect China to generate significant net sales growth over the coming years.
In late 2013, we conducted co-operation negotiations that resulted in a decision to implement efficiency-boosting measures that require personnel reductions of 24 clerical or managerial employees. Two of the reductions will be implemented through pension arrangements and one potentially through outsourcing. I believe that, thanks to this and our earlier decision to consolidate operations in Karstula, Honkarakenne is now on the threshold of a new wave of efficiency.
When you consider the growth that occurred in the fourth quarter, our increased order book, the efficiency measures we have implemented, and the potential in China, I am at least satisfied with our prospects for 2014.”
NET SALES
Honkarakenne Group’s net sales for the year 2013 increased by 4 per cent to MEUR 48.3 (MEUR 46.2).
The Group’s last-quarter net sales in 2013 increased by 23 per cent to MEUR 17.0 (MEUR 13.9).
Geographical distribution of net sales:
| DEVELOPMENT OF SALES | ||||||
|
Distribution of net sales, % |
1-12 /2013 |
1-12 /2012 |
||||
| Finland & Baltics | 42 % | 41 % | ||||
| Russia & CIS | 27 % | 32 % | ||||
| Global Markets | 31 % | 27 % | ||||
| Total | 100 % | 100 % | ||||
| Net sales, MEUR |
10-12 /2013 |
10-12 /2012 |
change % |
1-12 /2013 |
1-12 /2012 |
change % |
| Finland & Baltics | 5.0 | 4.1 | 24 | 20.3 | 19.0 | 6 |
| Russia & CIS | 5.0 | 6.7 | -26 | 12.8 | 14.7 | -13 |
| Global Markets | 7.1 | 3.1 | 129 | 15.2 | 12.5 | 21 |
| Total | 17.0 | 13.9 | 23 | 48.3 | 46.2 | 4 |
Finland & Baltics includes the following countries: Finland, Estonia, Latvia and Lithuania. It includes also Process waste sales for recycling which was reported separately before.
Russia & CIS includes the following countries: Russia, Azerbaijan, Kazakhstan, Ukraine and other CIS countries.
Global Markets includes other countries than above-mentioned.
The Group’s order book stood at MEUR 18.1 at the end of December. In the previous year at the same time period it was MEUR 15.9.
DEVELOPMENT OF RESULT AND PROFITABILITY
The operating loss in 2013 was MEUR -1.7 (MEUR -4.3) and the result before taxes MEUR -1.7 (MEUR -4.4). The result includes a provision of MEUR 0.6 associated with personnel reductions and efficiency measurements.
The operating loss without non-recurring items in January–December was MEUR -1.1 (MEUR -0.8). This year-on-year change in the operating result without non-recurring items was influenced particularly by both the reduced price level in Finland and the change in the distribution of market area-specific sales.
FINANCING AND INVESTMENTS
The Group's financial position was satisfactory at the end of the review period. Capital expenditure to boost production efficiency in Karstula weakened the company's financial position. Transfer of the log billet gluing line from Alajärvi to Karstula began just before the end of December, and this increased stock values. The transfer required a halt in production, and billets were therefore placed in storage as necessary during the stoppage.
The equity ratio stood at 38 % (47 %) and net financial liabilities at MEUR 6.1 (MEUR 1.5). MEUR 3.4 (2.0) of the financial liabilities carry a 30 % equity ratio covenant term. Group liquid assets totalled MEUR 3.2 (MEUR 4.8). The Group also has a MEUR 8.0 (MEUR 8.0) bank overdraft facility, MEUR 5.6 (MEUR 0.0) of which had been drawn on at the end of the report period. Gearing stood at 57 % (11 %).
The Group’s capital expenditure on fixed assets totalled MEUR 3.7 (MEUR 0.9), while the Group’s depreciation amounted to MEUR 2.5 (MEUR 4.8). The figure for the comparison year includes MEUR 1.8 in non-recurring write-offs of fixed assets.
PRODUCTS AND MARKETING
Finland & Baltics Investments in boosting sales of detached houses continued throughout the year. The most significant marketing measure was participation in the Hyvinkää Housing Fair. Honkarakenne's contribution to the fair was a non-settling log house with external plastering. At the fair, Honkarakenne highlighted the diversity of modern log construction. The breathable structure and good indoor air resulting from the use of logs can also be achieved in an area zoned for stone buildings.
Another significant measure was the marketing of the Mainio brand in the S Group's Terra outlets. Honkarakenne is seeking to grow the Maino brand's market share among customers who value quality but would like to keep the cost of their holiday home as affordable as possible.
During the fourth quarter, both sales outlets and the sales network were overhauled to enhance efficiency. The 2014 model collections were finalised during the fourth quarter.
In Finland recreational and housing construction decreased by -7.5 per cent compared to previous year, but in these challenging circumstances we were able to increase our sales and further market share.
Russia & CIS Honkarakenne focused on developing new area development sites in Russia with the local importer. Construction in Russia is increasingly leaning towards area development, that is, Honkarakenne will deliver several sites within a single area. Systematic sales are also being launched in major Russian cities other than St Petersburg and Moscow. During the last quarter, preparations were made to launch a new area development site near Tver, about 200 kilometres outside Moscow. The economic growth slowed down in Russia and that caused delays in customer’s willingness to make purchasing decisions. In spite of this our sales were at same level as previous year in Russia but decreased in CIS countries.
Global Markets Excellent trends have been seen in yen-denominated sales in Japan. However, the significant weakening of the yen during 2013 meant that net sales growth was only moderate when converted into euros. Good net sales trends were also seen in project sales. When examined without project transactions, sales in Europe were not satisfactory. Costs were adapted to the lower net sales in Europe throughout 2013.
The major move that holds significant potential for future income was preparation for the launch of a new market: China. An office was opened in China during the fourth quarter. Retailers were also selected during the last quarter. Initial signs indicate extremely promising net sales potential in China, and we forecast that the area will generate significant net sales and profitability over the coming years.
RESEARCH AND DEVELOPMENT
R&D activities focused on creating new solutions for the Finnish detached house market, some of which are scheduled for launch during 2014. During the fourth quarter, R&D began preparing for entry into China by taking the special features of the Chinese market into consideration in the sale of Honkarakenne's log houses.
In the January–December period, the Group's R&D expenditure totalled MEUR 0.4 (MEUR 0.4), representing 0.8 % of net sales (0.9 %). The Group did not capitalise any development expenditure during the report period.
STAFF
In 2013, the Group employed a total of 185 (198) people on average in terms of person-years, a year-on-year decrease of 13.
The Group had an average of 213 (257) employees during the report year. At the end of
In November-December, the Group conducted co-operation negotiations in Finland that resulted in the company's decision to make personnel reductions of 24 clerical or managerial employees. Two of these reductions will be implemented using pension arrangements and one potentially through outsourcing. The company also agreed on temporary lay-offs of a maximum of 90 days affecting all of its personnel in Finland until the end of September 2014.
MANAGEMENT
In January, Peter Morinov was appointed as a member of the Executive Group to head up Russia & CIS.
In April, design, Group marketing and product development was reorganised by transferring some design activities to the Operations unit. At the same time, the importance of design was reinforced with the appointment of architect Tanja Rytkönen-Romppanen, LL.M, as Honkarakenne's Vice President, Design. She will head up design, development and marketing. Executive Group member Sanna Wester left Honkarakenne's service in April.
Reorganisation occurred in December as a result of the codetermination organisations. The changes will enable Honkarakenne to adapt its operations for greater efficiency with respect to salaried employees in particular. Reijo Virtanen, Vice President, Operations, left Honkarakenne's service in December. President & CEO Mikko Kilpeläinen will temporarily head up the Operations unit as well.
LONG-TERM INCENTIVE PLAN
In the second quarter of 2013, the Board of Directors decided on a long-term share-based incentive plan for members of the Executive Group. The performance period of the new plan began on 1 January 2013 and will end on 31 December 2016. The potential reward for the performance period is based on the cumulative earnings per share (EPS) for 2013 - 2016 and on the average return on capital employed (ROCE) for 2013 - 2016. Any rewards for the performance period 2013 - 2016 will be paid partly as B shares and partly in cash in 2017. The rewards to be paid on the basis of the performance period will correspond to a total maximum of about 340,000 B shares, including the amount to be paid in cash.
In financial year 2013 the amount of allocated shares was 10,484. These allocated shares are recognized as follows: 31 thousand euros employee benefit expenses, 3 thousand euros deduction in taxes and increase in deferred tax assets and 11 thousand euros in retained earnings.
HONKARAKENNE OYJ’S 2013 ANNUAL GENERAL MEETING, BOARD OF DIRECTORS, AND AUDITORS
The Annual General Meeting (AGM) of Honkarakenne Oyj was held at the company’s headquarters in Tuusula on 5 April 2013. The AGM confirmed the financial statements of the parent company and Group, and discharged from liability the board members and CEO for 2012. The AGM decided that no dividends be paid for the 2012 financial year. The AGM decided that a repayment of capital totalling EUR 0.08 per share be paid from the Fund for invested unrestricted equity.
Anders Adlercreutz, Lasse Kurkilahti, Mauri Saarelainen, Marko Saarelainen and Teijo Pankko were re-elected to the Board of Directors. The Board’s constituent meeting appointed Lasse Kurkilahti the Chairman of the Board. Mauri Saarelainen will serve as the Deputy Chairman. Board of Directors decided not to set up any committees.
PricewaterhouseCoopers Oy, member of the Finnish Institute of Authorised Public Accountants, was appointed as auditor of the company, with Maria Grönroos, APA, as chief auditor.
HONKARAKENNE OYJ’S OWN SHARES AND AUTHORISATIONS OF THE BOARD OF DIRECTORS
Honkarakenne has not acquired its own shares during the report period. At the end of the report period, the Group held 364,385 of its Honkarakenne B shares with a total purchase price of EUR 1,381,750.23. These shares represent 7.05 % of the company's capital stock and 3.35 % of all votes. The purchase cost has been deducted from shareholders' equity in the consolidated financial statements.
On 5 April 2013, the AGM decided that the Board of Directors will be authorised to acquire a maximum of 400,000 of the company’s own B shares with assets included in the company’s unrestricted equity. In addition, the AGM authorised the Board to decide on a rights issue or bonus issue and on granting special rights to shares referred to in Section 1 of Chapter 10 of the Limited Liability Companies Act in one or more instalments. By virtue of the authorisation, the Board may issue a maximum total of 400,000 new shares and/or relinquish old B shares held by the company, including those shares that can be issued by virtue of special rights. Both authorisations will be valid until 25 March 2014.
CORPORATE GOVERNANCE
Honkarakenne Oyj follows the Limited Liability Companies Act and the Finnish Corporate Governance Code, 1 October 2010, for listed companies issued by the Finnish Securities Market Association. The company's website, www.honka.com, provides more information on the corporate governance systems.
FUTURE OUTLOOK
At the end of December, the Group’s order book stood at MEUR 18.1. In the corresponding period of the previous year, it was MEUR 15.9. This represents growth of 14%. The order book refers to orders whose delivery date falls within the next 24 months. Some orders may include a financing or building permit condition.
FORTHCOMING RISKS AND UNCERTAINTIES
The Group has one significant concentration of credit risks in sales receivables, concerning the open sales receivables of one dealer. No provision for doubtful debt has been made for this. The new sales made with this dealer have been paid and open sales receivables have been amortised as per the agreement. Deliveries to the dealer have continued, and the risks with the open sales receivables have not increased.
The assessment of amounts in the balance sheet is based on current assessment by the management. If these assessments are changed, this may result in changes to the Group's result.
It is more difficult to secure additional funding in the current financing market. If Honkarakenne cannot maintain its sales margin, this may cause a financing risk for the company.
REPORTING
This report contains statements that relate to the future, and these statements are based on hypotheses that the company's management hold currently as well as on the decisions and plans that are currently in place. Although the management believes that the hypotheses relating to the future are well-founded, there is no guarantee that the said hypotheses will prove to be correct.
For financial statements for year 2013 Honkarakenne has made following changes to its accounting policies: sales commissions are recognised in statement of comprehensive income as material and services (previously in statement of comprehensive income as other operating expenses), gain or loss on sale for such available-for-sale financial assets where no change in fair value has been recognised are presented in statement of comprehensive income as financial items (previously in statement of comprehensive income as other operating income or expense), capitalized sales commissions for uninvoiced orders are presented in balance sheet as accrued liabilities (previously in balance sheet as other liabilities) and value added tax liabilities or receivables are presented in balance sheet as other liabilities or receivables (previously in balance sheet as accrued liabilities or receivables). Comparison figures are revised as well.
This financial statements release has been prepared in line with standard IAS 34, Interim Financial Reporting. This interim report excluding the above mentioned changes has been prepared in line with the same IFRS principles of bookkeeping and assessment as Financial Statements 2012 but new and amended IFRS standards effective in 2013 have been applied. Amended standards and interpretations effective from the beginning of year 2013 have no bearing on the figures presented for the report period.
The figures have not been examined by the auditor.
EVENTS AFTER THE REVIEW PERIOD
On the basis of its authorisation, the Board of Directors decided on a share issue targeted at personnel. Honkarakenne personnel working in Finland will be offered the option to subscribe for a maximum of 150,000 new Series B shares.
PROPOSAL OF THE BOARD OF DIRECTORS ON THE USE OF PROFIT FUNDS
On 31 December 2013, the parent company’s unrestricted equity stood at MEUR 1.3, of which distributable funds totalled MEUR 0.4. No funds can be allocated as profits. The parent company posted a MEUR -2.0 loss for the financial year.
The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the financial year ended 31 December 2013.
THE OUTLOOK FOR 2014
In 2014, Honkarakenne expects its net sales to increase and its result before non-recurring items and taxes to be positive because the order book is at higher level than in previous year and the company has taken significant efficiency measures during year 2013.
GENERAL MEETING
The Annual General Meeting of Honkarakenne Oyj will be held at the company’s headquarters in Tuusula on Friday 4 April 2014 at 2:00 pm.
HONKARAKENNE OYJ
Board of Directors
Further information:
Mikko Kilpeläinen, President and CEO, tel. +358 50 542 5884, mikko.kilpelainen@honka.com or
Mikko Jaskari, CFO, tel. +358 400 535 337, mikko.jaskari@honka.com.
This and previous releases are available for viewing on the company’s website at www.honka.com.
Honkarakenne will publish the Directors’ Report and financial statements for 2013 as well as a separate Corporate Governance Statement on the company’s website at www.honka.com latest in week 11. Interim Reports for 2014 will be published on 8 May 2014, 7 August 2014 and 30 October 2014.
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
Financial Supervisory Authority
www.honka.com
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||
| unaudited | 10-12 /2013 | 10-12 /2012 | 1-12 /2013 | 1-12 /2012 |
| MEUR | ||||
| Net sales | 17.0 | 13.9 | 48.3 | 46.2 |
| Other operating income | 0.1 | 0.1 | 0.4 | 0.7 |
| Change in inventories | -1.0 | -0.7 | 0.9 | -0.2 |
| Production for own use | 0.0 | 0.0 | 0.0 | 0.0 |
| Materials and services | -10.0 | -7.0 | -30.9 | -26.6 |
| Employee benefit expenses | -3.6 | -4.6 | -10.9 | -12.4 |
| Depreciations and amortisation | -0.6 | -0.7 | -2.5 | -3.0 |
| Impairment | -0.0 | -1.8 | -0.0 | -1.8 |
| Other operating expenses | -1.9 | -2.3 | -6.9 | -7.3 |
| Operating profit/loss | 0.1 | -3.0 | -1.7 | -4.3 |
| Financial income | 0.3 | 0.5 | 0.8 | 0.6 |
| Financial expenses | -0.5 | -0.3 | -0.7 | -0.7 |
| Share of associated companies' result | 0.0 | 0.1 | -0.0 | -0.0 |
| Profit/loss before taxes | -0.1 | -2.8 | -1.7 | -4.4 |
| Taxes | -0.3 | -0.3 | 0.1 | 0.1 |
| Profit/loss for the period | -0.3 | -3.1 | -1.5 | -4.3 |
| Other comprehensive income: | ||||
| Translation differences | -0.2 | -0.2 | -0.4 | -0.2 |
|
Total comprehensive income for the period |
-0.5 | -3.4 | -2.0 | -4.6 |
| Result for the period attributable to: | ||||
| Equity holders of the parent | -0.5 | -3.4 | -2.0 | -4.6 |
| Non-controlling interest | -0.0 | -0.0 | 0.0 | 0.0 |
| -0.5 | -3.4 | -2.0 | -4.6 | |
|
Calculated from the result for the period attributable to equity holders of parent Earnings/share (EPS), EUR |
||||
| Basic | -0.07 | -0.66 | -0.32 | -0.90 |
| Diluted | -0.07 | -0.66 | -0.32 | -0.90 |
Honkarakenne Oyj has two series of shares: A shares and B shares, which have different right to dividend. Profit distribution of 0.20 EUR per share will be paid first for B shares, then 0.20 EUR per share for A shares, followed by equal distribution of remaining profit distribution between all shares.
|
CONSOLIDATED BALANCE SHEET unaudited |
31.12.2013 |
31.12.2012 |
| MEUR | ||
| Assets | ||
| Non-current assets | ||
| Property, plant and equipment | 15.9 | 14.6 |
| Goodwill | 0.1 | 0.1 |
| Other intangible assets | 0.5 | 0.6 |
| Investments in associated companies | 0.3 | 0.3 |
| Other investments | 0.0 | 0.1 |
| Receivables | 0.2 | 0.3 |
| Deferred tax assets | 1.5 | 1.1 |
| 18.4 | 17.0 | |
| Current assets | ||
| Inventories | 7.1 | 6.5 |
| Trade and other receivables | 5.2 | 5.9 |
| Cash and bank receivables | 3.2 | 4.8 |
| 15.6 | 17.2 | |
| Total assets | 34.0 | 34.2 |
| Shareholders' equity and liabilities | 31.12.2013 | 31.12.2012 |
|
Equity attributable to equity holders of the parent company |
||
| Share capital | 9.9 | 9.9 |
| Share premium account | 0.5 | 0.5 |
| Fund for invested unrestricted equity | 6.4 | 6.8 |
| Own shares | -1.4 | -1.4 |
| Translation differences | -0.2 | 0.2 |
| Retained earnings | -4.7 | -3.2 |
| 10.6 | 12.9 | |
| Non-controlling interests | 0.2 | 0.2 |
| Total equity | 10.8 | 13.1 |
| Non-current liabilities | ||
| Deferred tax liabilities | 0.1 | 0.0 |
| Provisions | 0.5 | 0.5 |
| Financial liabilities | 7.5 | 3.9 |
| 8.1 | 4.4 | |
| Current liabilities | ||
| Trade and other payables | 12.3 | 12.6 |
| Current tax liabilities | 0.2 | 0.0 |
| Provisions | 0.9 | 1.6 |
| Current financial liabilities | 1.8 | 2.4 |
| 15.1 | 16.7 | |
| Total liabilities | 23.2 | 21.1 |
| Total equity and liabilities | 34.0 | 34.2 |
|
STATEMENT OF CHANGES IN EQUITY abridged unaudited |
|||||||||||
| EUR thousand | Equity attributable to equity holders of the parent | ||||||||||
| a) | b) | c) | d) | e) | f) | g) | Total | h) | Total equity | ||
| Total equity 1.1.2012 |
9898 |
520 | 5316 |
1896 |
462 | -1382 | 1151 | 17861 | 242 | 18103 | |
| Profit/loss for the period | -4329 | -4329 | 1 | -4328 | |||||||
| Translation difference | -238 | -238 | -238 | ||||||||
| Repayment of capital | -384 | -384 | -384 | ||||||||
| Purchase of non-controlling interests | -35 | -35 | |||||||||
| Reclassification | -5316 | 5316 | |||||||||
| Total equity 31.12.2012 | 9898 | 520 | 0 | 6828 | 224 | -1382 | -3178 | 12909 | 209 | 13117 | |
| a) | b) | c) | d) | e) | f) | g) | Total | h) | Total equity | ||
| Total equity 1.1.2013 |
9898 |
520 | 0 |
6828 |
224 | -1382 | -3178 | 12909 | 209 | 13117 | |
| Profit/loss for the period | -1546 | -1546 | 1 | -1545 | |||||||
| Translation difference | -421 | -421 | -421 | ||||||||
| Repayment of capital | -384 | -384 | -384 | ||||||||
| Management incentive plan | 16 | 16 | 16 | ||||||||
| Total equity 31.12.2013 | 9898 | 520 | 0 | 6444 | -197 | -1382 | -4710 | 10573 | 211 | 10784 | |
a) Share capital
b) Share premium account
c) Reserve fund
d) Fund for invested unrestricted equity
e) Translation difference
f) Own shares
g) Retained earnings
h) Non-controlling interests
|
CONSOLIDATED STATEMENT OF CASH FLOWS abridged unaudited |
1.1.- 31.12.2013 |
1.1.- 31.12.2012 |
| MEUR | ||
| Cash flow from operating activities | -1.2 | 5.5 |
| Cash flow from investing activities, net | -3.0 | -0.1 |
| Total cash flows from financing activities: | 2.6 | -3.1 |
| Repayment of capital | -0.4 | -0.4 |
| Proceeds from borrowings | 5.6 | 2.1 |
| Repayment of borrowings | -2.4 | -4.6 |
| Other financial items | -0.2 | -0.2 |
| Change in cash and cash equivalents | -1.6 | 2.2 |
| Cash and cash equivalents at the beginning of period | 4.8 | 2.6 |
| Cash and cash equivalents at the close of period | 3.2 | 4.8 |
NOTES TO THE REPORT
Accounting policies
For financial statements for year 2013 Honkarakenne has made following changes to its accounting policies: sales commissions are recognised in statement of comprehensive income as material and services (previously in statement of comprehensive income as other operating expenses), gain or loss on sale for such available-for-sale financial assets where no change in fair value has been recognised are presented in statement of comprehensive income as financial items (previously in statement of comprehensive income as other operating income or expense), capitalized sales commissions for uninvoiced orders are presented in balance sheet as accrued liabilities (previously in balance sheet as other liabilities) and value added tax liabilities or receivables are presented in balance sheet as other liabilities or receivables (previously in balance sheet as accrued liabilities or receivables). Comparison figures are revised as well.
This financial statements release has been prepared in line with standard IAS 34, Interim Financial Reporting. This interim report excluding the above mentioned changes has been prepared in line with the same IFRS principles of bookkeeping and assessment as Financial Statements 2012 but new and amended IFRS standards effective in 2013 have been applied. Amended standards and interpretations effective from the beginning of year 2013 have no bearing on the figures presented for the report period.
The figures have not been examined by the auditor.
Honka Management Oy, which is owned by the senior management of Honkarakenne Oyj and was established in 2010, is included in the consolidated financial statements due to the terms and conditions of the shareholder agreement concluded between it and Honkarakenne Oyj.
Honkarakenne has three geographical operating segments that have been combined into one segment for reporting purposes. Geographically, sales are divided as follows: Finland & Baltics, Russia & CIS and Global Markets. The internal reporting of the management is in line with IFRS reporting. For this reason, separate reconciliations are not presented.
| PROPERTY, PLANT AND EQUIPMENT | |
| Unaudited | Property, plant and equipment |
| MEUR | |
| Cost 1.1.2013 | 63.9 |
| Increase | 3.6 |
| Disposals | -1.8 |
| Cost 31.12.2013 | 65.7 |
| Accumulated depreciation 1.1.2013 | -49.4 |
| Accumulated depreciation of disposals and reclassifications | 1.8 |
| Depreciation for the period | -2.2 |
| Accumulated depreciation 31.12.2013 | -49.8 |
| Carrying amount 1.1.2013 | 14.6 |
| Carrying amount 31.12.2013 | 15.9 |
Non-recurring expenses
The co-operation negotiations that ended in the last quarter and efficiency activities resulted in MEUR 0.6 being recognised as non-recurring expenses for the financial year 2013.
Own shares
Honkarakenne Oyj has not acquired its own shares during the report period. At the end of the report period, the Group held 364,385 of its Honkarakenne B shares with a total purchase price of EUR 1,381,750.23. These shares represent 7.05 % of the company's capital stock and 3.35 % of all votes. The purchase cost for own shares has been entered in the consolidated accounts to reduce the Group’s shareholders’ equity.
| Contingent liabilities | ||
| Unaudited | 31.12.2013 | 31.12.2012 |
| MEUR | ||
|
For own loans |
||
| - Mortgages | 25.7 | 25.7 |
| - Other quarantees | 2.3 | 3.4 |
| Rental liabilities | 0.6 | 0.0 |
| Leasing liabilities | 0.2 | 0.2 |
| Nominal values of forward exchange contracts | 1.7 | 2.9 |
| Derivative contracts | 0.4 | 0.5 |
Events with related parties
The Group’s related parties consist of subsidiaries and associated companies; the company's management and any companies in which they exert influence; and those involved in the Saarelainen shareholder agreement and any companies controlled by them. The management personnel considered to be related parties comprise the Board of Directors, President & CEO, and the company's Executive Group. The pricing of goods and services in transactions with related parties conforms to market-based pricing.
During the report period, ordinary business transactions with related parties were made as follows: the sales to the related parties were EUR 361 thousand and the purchases from the related parties were EUR 438 thousand. In 2010 and 2011, Honkarakenne Oyj granted long-term loans totalling MEUR 0.9 to Honka Management Oy, which is owned by the company’s senior management.
| KEY INDICATORS | |||
| 1-12 | 1-12 | ||
| Unaudited | 2013 | 2012 | |
| Earnings/share (EPS) | euro | -0.32 | -0.90 |
| Return on equity | % | -13 | -28 |
| Equity ratio | % | 38 | 47 |
| Shareholders equity/share | euro | 2.20 | 2.69 |
| Net financial liabilities | MEUR | 6.1 | 1.5 |
| Gearing | % | 57 | 11 |
| Gross investments | MEUR | 3.7 | 0.9 |
| % of net sales | 8 | 2 | |
| Order book | MEUR | 18.1 | 15.9 |
| Personnel in person-years, average | Staff | 104 | 117 |
| Workers | 82 | 81 | |
| Total | 185 | 198 | |
|
Calculation of key indicators |
||
| Profit for the period attributable to equity holders of parent | ||
| Earnings/share (EPS) | ----------------------------------------------- | |
| Average number of outstanding shares | ||
| Result before taxes – taxes | ||
| Return on equity % | ----------------------------------------------- | x 100 |
| Total equity, average | ||
| Total equity | ||
| Equity ratio, % | ----------------------------------------------- | x 100 |
| Balance sheet total - advances received | ||
| Net financial liabilities | Financial liabilities – cash and cash equivalents | |
| Financial liabilities – cash and cash equivalents | ||
| Gearing, % | ------------------------------------------- | x 100 |
| Total equity | ||
| Shareholders’ equity | ||
| Shareholders equity/share | ------------------------------------------------ | |
| Number of shares outstanding at the close of period | ||