Vantaa, Finland, 2016-11-04 08:00 CET (GLOBE NEWSWIRE) --
Ramirent Plc Interim Report 4 November 2016 at 9:00 EEST
Note! Figures in brackets, unless otherwise indicated, refer to the corresponding period a year earlier.
JULY–SEPTEMBER 2016 IN BRIEF
- Net sales EUR 169.2 (165.1) million, up by 2.5% or 3.3% at comparable exchange rates
- Comparable EBITA EUR 22.2 (25.3) million or 13.1% (15.3%) of net sales
- One-off costs related to asset write-downs and reorganization of operations EUR 20.4 million
- Reported EBITA EUR 14.2 (24.8) million or 8.4% (15.0%) of net sales
- Gross capital expenditure EUR 43.3 (32.2) million, up by 34.5%
- Cash flow after investments EUR −1.3 (9.7) million
JANUARY–SEPTEMBER 2016 IN BRIEF
- Net sales EUR 484.7 (465.2) million, up by 4.2% or 5.7% at comparable exchange rates
- Comparable EBITA EUR 47.0 (46.6) million or 9.7% (10.0%) of net sales
- Reported EBITA EUR 38.0 (50.0) million or 7.9% (10.7%) of net sales
- Earnings per share (EPS) 0.09 (0.26)
- Return on equity (ROE) 7.1% (9.9%)
- Return on capital employed (ROCE) 5.4% (9.3%)
- Gross capital expenditure EUR 143.8 (97.2) million, up by 48.0%
- Cash flow after investments EUR −31.8 (−11.7) million
| Key figures (MEUR or %) | 7−9/16 | 7−9/15 | Change | 1−9/16 | 1−9/15 | Change | FY2015 |
| Net sales | 169.2 | 165.1 | 2.5% | 484.7 | 465.2 | 4.2% | 635.6 |
| EBITDA | 47.1 | 49.7 | −5.3% | 121.2 | 124.3 | −2.5% | 168.1 |
| % of net sales | 27.8% | 30.1% | 25.0% | 26.7% | 26.4% | ||
| Comparable EBITA | 22.2 | 25.3 | −12.1% | 47.0 | 46.6 | 0.8% | 63.4 |
| % of net sales | 13.1% | 15.3% | 9.7% | 10.0% | 10.0% | ||
| Reported EBITA | 14.2 | 24.8 | −42.7% | 38.0 | 50.0 | −23.9% | 66.8 |
| % of net sales | 8.4% | 15.0% | 7.9% | 10.7% | 10.5% | ||
| EPS, EUR | −0.02 | 0.13 | −113.1% | 0.09 | 0.26 | −65.3% | 0.36 |
| Gross capital expenditure on non-current assets | 43.3 | 32.2 | 34.5% | 143.8 | 97.2 | 48.0% | 139.2 |
| Cash flow after investments | −1.3 | 9.7 | −113.7% | −31.8 | −11.7 | −172.4% | −6.3 |
| ROCE % (R12) | 5.4% | 9.3% | 10.0% | ||||
| ROE % (R12) | 7.1% | 9.9% | 12.1% | ||||
| Net debt | 357.3 | 286.4 | 24.7% | 280.9 | |||
| Net debt to EBITDA ratio (R12) | 2.2x | 1.7x | 24.3% | 1.7x | |||
| Personnel (FTE) | 2,730 | 2,658 | 2.7% | 2,654 |
Impacts of new ESMA guidelines
European Securities and Markets Authority (ESMA) has issued new guidelines regarding alternative performance measures to be implemented at the latest in the second quarter of 2016. Due to the new guidelines, Ramirent’s performance measure “EBITA excluding non-recurring items” was replaced with “comparable EBITA” as of first quarter of 2016. The content of adjustments equals items previously disclosed as non-recurring items including incomes and expenses arising activities that amend Ramirent’s business operations or are incurred outside its normal course of business such as restructuring costs, impairments, significant write-downs of assets and significant gains or losses on sale of assets and businesses. Comparable EBITA is disclosed to improve comparability between reporting periods.
RAMIRENT’S CEO TAPIO KOLUNSARKA:
“The profitability development of Ramirent has not reached its potential and in order to improve performance determined actions were initiated during the quarter, which affected the Q3 2016 result through one-off write-downs and reorganization costs.
In the quarter, Ramirent Group’s net sales in comparable exchange rates grew by 3.3% but the Group’s comparable EBITA declined to EUR 22.2 (25.3) million, representing 13.1% (15.3%) of net sales and reported EBITA declined to EUR 14.2 (24.8) million or 8.4% (15.0%) of net sales.
In recent years Ramirent has invested heavily in developing the One Ramirent platform by implementing a common ERP-platform, centralized hub-structure for fleet and focusing on growing the Solutions business both organically as well as through acquisitions in Sweden. This has resulted in adverse cost and gross margin development mainly due to weakened sales mix with lessened focus on the General Rental business.
Therefore our priority is now profitability. Our key actions include improving profitability of non-performing business units and areas, including refocusing the Temporary Space business in Norway, reorganizing parts of the Solutions business in Sweden and also parts of Europe Central’s business. We will also start driving an improved sales mix through increased focus on core General Rental business and develop pricing further. At the same time, we will develop our business to be more agile and customer-focused. Overall we can improve productivity. We will reduce costs by rationalizing IT development as well as external materials and services spend. After a year of higher investments, focus will also lie on increasing existing fleet productivity.
Finally I would like to emphasize, that in the long-term we see solid potential to improve profitability in all of Ramirent’s Segments by optimizing the business platform and through the strong commitment of the people at Ramirent to serve our customers even better. Rental is a service business of the future and there are plenty of opportunities around us to develop our business further. However, in the near future, we stay focused on putting our basics systematically right and delivering improved profitability.”
RAMIRENT’s guidance for 2016 (revised on 26 October)
In 2016, Ramirent’s net sales in local currencies are expected to increase from the level in 2015 and EBITA-margin is expected to be lower than in 2015.
MARKET OUTLOOK FOR 2016
Ramirent’s market outlook is based on the available forecasts disclosed by local construction and industry associations in its operating countries.
Ramirent expects demand for equipment rental to remain favorable in Finland and Sweden driven by high activity in the construction sector. Also the Danish and Norwegian equipment rental markets are supported by the construction sector. In the Baltics, demand for equipment rental is estimated to remain stable and in Fortrent markets, in Russia and Ukraine, the market outlook is expected to remain uncertain. In Central Europe, the equipment rental market is supported by activity especially in the industrial sector in Poland and by new construction start-ups in Slovakia while the market outlook is more subdued in Czech Republic due to declining construction output.
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged 4 November, 2016 at 11:00 a.m. Finnish time at Klaus K, Bulevardi 2-4, Helsinki, (Studio K).
WEBCAST AND CONFERENCE CALL
You can participate in the analyst briefing on Friday 4 November 2016 at 11:00 a.m. Finnish time (EET) through a live webcast at www.ramirent.com and conference call. Dial-in number for conference call: +358 9 8171 0495 (FI), +46 8 5664 2702 (SE), +44 2031940552 (UK) and +1 8557161597 (US). A recording of the webcast will be available at www.ramirent.com later the same day.
FINANCIAL CALENDAR 2017
Ramirent observes a silent period during 30 days prior to the publication of annual and interim financial results.
Financial statements bulletin 2017 17 February 2017 at 9:00 a.m.
For further information
CEO Tapio Kolunsarka
tel. +358 20 750 3630, tapio.kolunsarka@ramirent.com
CFO Pierre Brorsson
tel. +46 8 624 9541, pierre.brorsson@ramirent.com
SVP, Marketing, Communications and IR Franciska Janzon
tel. +358 20 750 2859, franciska.janzon@ramirent.com
Distribution
NASDAQ OMX Helsinki
Main news media
www.ramirent.com
Ramirent is a leading equipment rental group combining the best equipment, services and know-how into rental solutions that simplify customer’s business. Ramirent serves a broad range of customer sectors including construction, industry, services, the public sector and households. Ramirent has operations in the Nordic countries and in Central and Eastern Europe. In 2015, Ramirent Group sales totalled EUR 636 million. The Group has 2,730 employees in 288 customer centres in 10 countries. Ramirent is listed on the NASDAQ Helsinki (RMR1V). Ramirent – More than machines®.
