May 1 2015–July 31 2015 (Q3)
- Net sales increased by 25% and stood at MEUR 37.9 (MEUR 30.3).
- EBIT decreased by MEUR 0.5 to MEUR 1.4 (MEUR 1.9). The EBIT is encumbered by a cost of MEUR 1.2 in relation to the Multiprint arrangement.
- The profit for the financial period was MEUR 0.6 (MEUR 7.0).
- Operating cash flow improved by MEUR 2.8 and was MEUR 3.8 (MEUR 1.0).
- Panostaja’s subsidiary Digiprint Finland Oy and Multiprint Group Oy were merged. The annual net sales of the merged company will increase to about MEUR 90.
- Panostaja announced its intention to sell Flexim Security Oy to Assa Abloy Oy. The deal was finalised after the review period. The Group’s sales profit to be recorded for the fourth quarter was approximately MEUR 9.
November 1, 2014–July 31, 2015 (9 months)
- Net sales increased by 21% and stood at MEUR 104.1 (MEUR 86.3).
- EBIT remained at the same level at MEUR 4.6 (MEUR 4.6).
- The profit for the financial period was MEUR 0.4 (MEUR 5.8).
- Operating cash flow improved by MEUR 4.4 and was MEUR 9.6 (MEUR 5.2).
OUTLOOK FOR THE 2015 FINANCIAL PERIOD
Panostaja keeps its result management unaltered. The Group’s comparable net sales in the 2015 financial period are expected to be approximately 19−23% greater than in the 2014 financial period (MEUR 121.1). The Group’s comparable EBIT is expected to be on the same level as or lower than in the 2014 financial period (MEUR 8.1). The estimated EBIT includes an estimated MEUR 1.9 (previous estimate MEUR 2.5) in costs incurred from the merger of Digiprint Finland Oy and Multiprint Group Oy.
Previous result management June 11, 2015:
Panostaja specifies its result management with regard to net sales and EBIT. The Group’s comparable net sales in the 2015 financial period are expected to be approximately 19−23% greater than in the 2014 financial period (MEUR 121.1). The Group’s comparable EBIT is expected to be on the same level as or lower than in the 2014 financial period (MEUR 8.1). The estimated EBIT includes an estimated MEUR 2.5 in costs incurred from the merger of Digiprint Finland Oy and Multiprint Group Oy. The divestment of the Safety segment from the Group has been taken into account in result management, although this still requires approval by the competition authorities for the deal.
CEO Juha Sarsama: Significant corporate restructurings in the third quarter – more resources for corporate acquisitions
We succeeded in carrying out the significant structural reorganisations according to our goals. The Group’s profit development was moderate in the third quarter. Due to the transfer tax related to the arrangements of consolidating Multiprint Group Oy into the Group, as well as other costs related to the arrangement, the Group’s EBIT was slightly weaker than in the previous year. In terms of profit development, there were still substantial differences between the segments.
Over the course of the review period, Panostaja strengthened its Digital Printing Services segment. Panostaja’s subsidiary Digiprint Finland Oy and Multiprint Group Oy were merged. The merger was carried out through an arrangement whereby the share capitals of both Digiprint Finland Oy and Multiprint Group Oy were sold to the
newly founded Digiprint Finland Group Oy. Digiprint Finland Oy is the parent company of Grano Oy. Grano Oy is the largest of Panostaja’s subsidiaries, so the merger is a significant investment in the development of the sector for Panostaja. The merger will expand the geographical coverage of the new entity’s network, and increase resources and expertise for the development of services. In the future, it will be possible to achieve growth through innovative services and corporate acquisitions in Finland, as well as by expanding outside the country’s borders. The annual net sales of the merged company will increase to about MEUR 90 and the number of personnel to more than 800. Panostaja’s ownership of Digiprint Finland Group Oy is 51.9%.
Together with the other owners of Flexim Group Oy Panostaja signed a contract for the sale of the entire shareholding in Flexim Security Oy to Assa Abloy Oy. The deal was finalised after the review period, on August 28, 2015. The Group’s sales profit of some MEUR 9 will be recorded for the fourth quarter. During Panostaja’s ownership, Flexim Group Oy’s net sales increased to MEUR 34 and the company became one of the leading experts in its field as a developer of hassle-free and secure access control. Flexim’s story under Panostaja’s ownership is an excellent example of the efficiency of the Panostaja operating model in helping an SME climb to the top ranks of its field.
The economic situation in Finland remained uncertain. The crisis in Ukraine, Russia, and the decline of the Chinese economy are causing widespread and prolonged uncertainty in European economic development. The development in the price of oil is causing investments to dwindle in the off-shore sector. The developments in the capital markets indicate an uneasy climate, which may may have a wider effect on the financial market. The general economic situation and atmosphere are challenging, which is reflected in almost all the Group’s business segments. The segments that serve the construction industry and trade have had to suffer a reduction in customer demand during the third quarter, as well.
The corporate acquisitions market still offers Panostaja opportunities both for new acquisitions and later divestments as the forecastability of the economy improves. The position of Panostaja’s business segments in their respective fields is mainly good.
May 1 2015–July 31 2015 (Q3)
- Net sales increased by 25% and stood at MEUR 37.9 (MEUR 30.3). The impact of the corporate acquisitions on the MEUR 7.6 growth in net sales for the third quarter stood at MEUR 6.6. Net sales increased in four of the eight segments.
- EBIT decreased by MEUR 0.5 to MEUR 1.4 (MEUR 1.9). The EBIT for the review period includes MEUR 1.2 in expenses for the Multiprint arrangement. The market situation remained challenging in almost all segments, as a result of which profitability did not reach the level of the reference year for all areas. Four segments out of eight exceeded the EBIT for the reference period.
- Profit before taxes was MEUR 0.5 (MEUR 1.2)
- The profit for the review period was MEUR 0.6 (MEUR 7.0). The reference period includes the sales profit for Vindea MEUR 5.5.
- Earnings per share (undiluted) were -0.5 cents (11.9 cents)
- Operating cash flow improved and was MEUR 3.8 (MEUR 1.0).
November 1, 2014–July 31, 2015 (9 months)
- Net sales increased by 21% and stood at MEUR 104.1 (MEUR 86.3). The impact of the corporate acquisitions on the MEUR 17.8 growth in net sales stood at MEUR 20.6. Net sales increased in three of the eight segments.
- EBIT remained at the same level at MEUR 4.6 (MEUR 4.6). EBIT in the review period was encumbered by the difference of MEUR -0.5 between the values of Kotisun Oy’s additional purchase price and the value on the balance sheet date, which has been recognized in the company’s other costs, as well as the MEUR 1.2 cost caused by the acquisition of Multiprint. Two segments out of eight exceeded the EBIT for the reference period.
- Profit before taxes was MEUR 2.4 (MEUR 2.8)
- The profit for the review period was MEUR 0.4 (MEUR 5.8). The reference period includes the sales profit for Vindea, MEUR 5.5 and the discontinued operations of Takoma.
- Earnings per share (undiluted) were -3.0 cents (7.8 cents)
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Operating cash flow improved and was MEUR 9.6 (MEUR 5.2).
PRESS CONFERENCE
Panostaja will hold a press conference for analysts, investors and the press on the same day on September 2, 2015 from 11:30 am to 12:30 pm at Hotel Scandic Simonkenttä, Bulsa-Freda 1–2, Simonkatu 9, Helsinki.
The interim report, presentations and other investor information are available at: www.panostaja.fi.
Panostaja Oyj
Juha Sarsama
CEO
Further information:
CEO Juha Sarsama, Panostaja Oyj, +358 (0)40 774 2099
Distribution: NASDAQ OMX Helsinki, key media, www.panostaja.fi.
Panostaja is an investment company developing Finnish SMEs in the role of an active majority shareholder. The company aims to be the most sought-after partner for business owners selling their companies as well as for the best managers and investors. Together with its partners, Panostaja increases the Group's shareholder value and creates Finnish success stories.
Panostaja has eight segments engaging in business operations. Grano Oy (Digital Printing Services) forms Finland’s largest company offering digital printing services and publication and production services. Heatmasters Group (Heat Treatment) offers thermal treatment services of metals in Finland and internationally, and produces, develops and markets heat treatment technology. KL-Varaosat (Spare Parts for Motor Vehicles) is an importer, wholesale dealer and retailer of original spare parts and supplies for Mercedes Benz, BMW and Volvo cars. Megaklinikka Oy (Oral Health Care) is a company providing oral health care services. The company is a dental clinic offering a completely new kind of service concept. Suomen Helakeskus Oy (Fittings) is a major wholesale dealer concentrating on construction and furniture fittings. Selog Oy (Ceiling Materials) is a specialty supplier and wholesaler of ceiling materials. Takoma Oyj (Takoma) is a listed machine shop group. KotiSun Oy (Building Technology Renovation) is Finland’s leading company in service water and heating network building technology renovations for detached houses.
