PANOSTAJA OYJ’S INTERIM REPORT November 1, 2015–April 30, 2016

Panostaja Oyj                 Interim Report            2 June 2016 10.00 a.m.

February 1, 2016–April 30, 2016 (3 months) 

• Grano’s net sales for the review period increased to MEUR 23.3 from MEUR 14.9 in the previous year. The main reason behind this is the acquisition of Multiprint Group in June 2015. In the corresponding period, Grano’s EBIT from MEUR 1.8 to MEUR 3.0.
• KotiSun’s growth continued in the review period with net sales increasing by 32% from the reference period in the previous year. The provision of sewer renovation services is progressing as planned.
• Helakeskus centralized its operations and divested itself from the construction fittings business after the end of the review period.
• The market situation remained challenging in many investment targets. Net sales increased in five of the eight investment targets. Net sales for the Group as a whole increased by 29% and stood at MEUR 44.5 (MEUR 34.6).
• EBIT improved in four of the eight investment targets, and the EBIT of the entire Group increased from MEUR 2.3 to MEUR 2.7. The EBIT was encumbered by a MEUR 0.3 depreciation caused by the centralization of Helakeskus’ operations.
• Earnings per share (undiluted) were 2.3 cents (-0.3 cents).
• Panostaja updated its estimate of the fair value of the additional purchase price receivable from the Flexim Security sale and recorded a MEUR 4.0 additional purchase price, in which Panostaja’s share before taxes is MEUR 2.8. Previously Panostaja estimated the value of the additional purchase price to be MEUR 2.0, of which Panostaja’s share before taxes is MEUR 1.4. The amount of the additional purchase price will be determined based on the period that ended on April 30, 2016. The parties have not yet confirmed the amount of the additional purchase price. The final amount of the additional purchase price will be determined by July 26, 2016, unless the parties contest the issue. 

November 1, 2015–April 30, 2016 (6 months)

• The market situation remained challenging in almost every investment target. Net sales increased in five of the eight investment targets. For the Group as a whole, net sales in the six-month period increased by 29% from the same period last year, standing at MEUR 85.2 (MEUR 66.2).
• EBIT improved in four of the eight investment targets, and the EBIT of the entire Group increased from MEUR 3.2 to MEUR 4.0.
• Earnings per share (undiluted) were 2.7 cents (-2.4 cents).

Outlook for the 2016 financial period

Panostaja keeps its result management issued on December 11, 2015 unaltered.The Group’s EBIT is expected to improve substantially over the course of the 2016 financial period.

CEO Juha Sarsama:

“There was still significant variation in the profitability development of the investment targets in the second quarter of the financial period. KotiSun and KL-Varaosat continued to demonstrate good profitability development, and improvements were also seen in Grano’s profit development. On the other hand, the poor profitability development of Takoma and Heatmasters continued. Overall, the Group’s EBIT increased to MEUR 2.7 from the previous year’s MEUR 2.3. The EBIT for the review period is encumbered by the one-time expense item related to the divestment of Helakeskus’ furniture fittings business.

Development work was continued in the investment targets. KotiSun’s expansion to cover the sewer business proceeded as planned, and at Grano the first phase of the operational integration has been completed and the focus has been shifted to developing new areas. Megaklinikka signed an agreement with the City of Jyväskylä to expand the licensing of the oral health care ERP system, and Helakeskus focused its operations and divested itself from the construction fittings business at the end of the review period.

There have been some positive signs in Finland’s economic situation with regard to construction in particular, but the climate remains uncertain. Various threat scenarios related to the development of the global economy, political risks, the collapse of raw material prices and the financial markets still cause uncertainty that affects economic development in Europe and Finland. The overall economic situation remains challenging, which is reflected in almost all of our investment targets.

The corporate acquisitions market, as a whole, was active in the period under review, and the availability of new opportunities has increased significantly over the course of the spring. The markets still provide opportunities for both new acquisitions and select divestments.  We are actively exploring new investment opportunities.”

PRESS CONFERENCE

Panostaja will arrange a press conference for analysts, institutional investors and representatives of the press on June 2, 2016, at 11:30 a.m.-12:30 p.m., at the Scandic Simonkenttä, in Helsinki, at the address Simonkatu 9, Helsinki.

The Interim Report will be available at the address www.panostaja.fi on June 2, 2016, at 10:00 a.m.

Panostaja Oyj
Juha Sarsama
CEO

Further information CEO Juha Sarsama +358 40 774 2099