Panostaja Oyj Stock Exchange Bulletin, March 7, 2012 10:00 a.m.
PANOSTAJA GROUP INTERIM REPORT NOVEMBER 1, 2011–January 31, 2012 (3 months)
Net sales for the first quarter were MEUR 42.2, up by 12% and operating profit was MEUR 0,9, representing an increase of 23%.
The operating cash flow has continued to strengthen: a growth of MEUR 3.4 was recorded.
Panostaja Oyj's subsidiary Oy Alfa-Kem Ab and Spectra Yhtiöt Oy merged – Panostaja's holding in the new associated company is 32%.
The result listed in the interim report includes approx. MEUR 0.7 of one-time costs/sales losses.
NOVEMBER 2011–JANUARY 2012
- Net sales MEUR 42.2 (MEUR 37.8), growth 12%
- Operating profit MEUR 0.9 (MEUR 0.7), growth 23%
- Profit before taxes MEUR 0.1 (MEUR 0.2)
- Earnings per share (undiluted) -1.1 cents (-0.3 cents)
- Equity per share EUR 0.59 (EUR 0.63)
- Equity ratio 32.0% (33.0%)
- Cash flow from business operations MEUR 5.1 (MEUR 1.7).
The MEUR 4.4 growth in net sales resulted primarily from the operative development of the digital printing services and the organic growth of Takoma and the Safety segment The impact of the acquisitions realized in the previous financial period on the increased net sales for the first quarter stood at MEUR 1.6.
The MEUR 0.2 increase in operating profit was primarily the result of increased net sales.
The earnings of the first quarter were burdened by one-time costs incurred from clearing up an error in Lämpö-Tukku Oy's inventory (MEUR 0.2). In addition, Panostaja Group recorded a sales loss of MEUR 0.5 relating to the Oy Alfa-Kem Ab reorganization. The sales loss is listed on the income statement row 'Profit from discontinued operations'. The total effect of one-time items on the interim report's profit/loss is approx. MEUR -0.7.
Panostaja will specify its result management procedures with regard to net sales. In the financial year 2012, the Group's net sales are estimated to grow 7–14% over the previous year, and the Group's operating profit is expected to increase.
Previous result management: It is expected that the Group’s net sales will increase further and the operating profit will improve in 2012.
The Annual General Meeting of January 31, 2012 approved the capital repayment proposal made by the Board. EUR 0.05 per share of capital repayment was paid from the invested unrestricted equity fund. The record date for the repayment was February 3, 2012, with the payment date being February 10, 2012. The repayment paid to the parent company’s shareholders totaled MEUR 2.6.
| 3 months | 3 months | 12 months | ||||||
| Key figures | 11/11-01/12 | 11/10-01/11 | 11/10-10/11 | |||||
| Net sales, MEUR | 42.2 | 37.8 | 161.7 | |||||
| Operating profit, MEUR | 0.9 | 0.7 | 6.2 | |||||
| Profit before taxes, MEUR | 0.1 | 0.2 | 3.5 | |||||
| Earnings per share, undiluted, EUR | -0.011 | -0.003 | 0.019 | |||||
| Equity per share, EUR | 0.59 | 0.63 | 0.65 | |||||
| Financial position and cash flow: | January 31, 2012 | January 31, 2011 | October 31, 2011 | |||||
| Net liabilities, MEUR | 43.9 | 45.4 | 47.2 | |||||
| Gearing, % | 100.1 | 98.6 | 99.6 | |||||
| Equity ratio, % | 32.0 | 33.0 | 33.4 | |||||
| Cash flow from business operations, MEUR | 5.1 | 1.7 | 4.4 | |||||
MARKET SITUATION
On the whole, Panostaja Group’s business operations continued their positive trend throughout the first quarter, even though there was considerable variation in the development of different segments. The Group’s management will focus on improving the profitability of these few weak segments to meet the set targets. The overall economic situation and atmosphere have shown slight positive development during the first quarter, and Panostaja believes that this positive development will persist throughout the financial year despite the lingering factors of uncertainty. The situation of the financial markets has calmed down somewhat, but the restraints on credit issue remain a clear risk to financial development. The corporate acquisition market has revitalized after the slow start of early 2012, and the number of potential targets has begun to grow. If the financial development remains positive, the corporate acquisition market will pick up towards the summer.
FINANCIAL DEVELOPMENT
PANOSTAJA GROUP
NOVEMBER 2011–JANUARY 2012
Panostaja Group’s net sales for the review period closed were MEUR 42.2 (MEUR 37.8). Export amounted to MEUR 3.4, or 8.0%, of net sales. Corporate acquisitions realized during the previous financial period affected the MEUR 4.4 increase in net sales by MEUR 1.6. Of the Group’s eleven segments engaged in business, six exceeded the net sales for the previous financial period while five exceeded the previous operating profit.
The Group’s operating profit for the review period was MEUR 0.9 (MEUR 0.7). The MEUR 0.2 increase in operating profit was primarily the result of growth in net sales. The effect of corporate acquisitions on the growth in operating profit, with the expenses of the acquisitions included, was MEUR 0.1. The earnings of the first quarter were burdened by one-time costs incurred from clearing up an error in Lämpö-Tukku Oy's inventory (MEUR 0.2). The operating profit margin was 2.1% (1.9%).
On December 22, 2011, Panostaja implemented an arrangement, through which Spectra Yhtiöt Oy acquired a 100% holding in Oy Alfa-Kem Ab by means of share exchange. Oy Alfa-Kem Ab became a subsidiary fully owned by Spectra Yhtiöt Oy. After the conclusion of the arrangement, Panostaja Oyj's holding in the corporate entity formed is 32%, which Panostaja will report as an associated company as of January 2012. After the arrangement, the acquisition cost of associated company shares in Panostaja Oyj's balance sheet is at approx. MEUR 0.7. As a result of the arrangement, Panostaja Group recorded a capital loss of MEUR 0.5.
In the income statement, the profit from discontinued operations and the profit from continuing operations have been separated in accordance with the IFRS standard. Unless otherwise specified, the figures presented in this interim report for the 2012 financial period and the reference year 2011 concern the Group’s continuing operations and do not include the income statement Oy Alfa-Kem Ab, which was sold on December 22, 2011. In the income statement for the reference year 2011, the Environmental Technology segment sold in April 2011 has also been separated from the profit from continued operations into the profit from discontinued operations.
Before separating the discontinued operations from continued operations in the income statement, the Group’s net sales for the reference-year period under review were MEUR 38.5, while the operating profit stood at MEUR 0.5, and the profit before taxes was MEUR 0.0.
The net financial expenses of the Group for the review period were approximately MEUR -0.8 (MEUR -0.6). The Group's financial expenses were increased by the 2011 equity convertible subordinated loan taken out in the previous financial period.
| Personnel | |||
| January 31, 2012 | January 31, 2011 | October 31, 2011 | |
| Average number of employees | 1,096 | 990 | 1,034 |
| Employees at the end of the period | 1,095 | 1,030 | 1,097 |
| Employees in each segment at the end of the period | January 31, 2012 | January 31, 2011 | October 31, 2011 |
| Digital Printing Services | 314 | 298 | 325 |
| Takoma | 200 | 172 | 190 |
| Safety | 201 | 154 | 188 |
| HEPAC Wholesale | 37 | 37 | 37 |
| Value-added Logistics | 135 | 138 | 131 |
| Fittings | 29 | 32 | 32 |
| Spare Parts for Motor Vehicles | 36 | 31 | 35 |
| Heat Treatment | 63 | 58 | 64 |
| Carpentry Industry | 31 | 31 | 32 |
| Supports | 15 | 14 | 16 |
| Fasteners | 24 | 25 | 25 |
| Technochemical | 21 | 12 | |
| Environmental Technology | 9 | ||
| Other | 10 | 10 | 10 |
| Group in total | 1,095 | 1,030 | 1,097 |
In the preliminary ruling on the capital repayment in respect of Takoma Oyj shares in spring 2008, the Tax Office for Major Corporations decided on the basis of an overall assessment that Panostaja was a capital investor within the meaning of Section 6, Subsection 1, Item 1 of the Finnish Business Tax Act. For capital investors, capital gains from fixed asset shares are considered taxable income.
Due to the said preliminary ruling, the Tax Office for Major Corporations, in its taxation by direct assessment in 2007, regarded Panostaja Oyj as a capital investor in the aforementioned sense and taxed the company’s certain capital gains from fixed asset shares. Panostaja Oyj submitted a claim for adjustment over the 2007 taxation to the Board of Adjustment claiming that the capital gain from fixed asset shares should be exempt from tax. The Board of Adjustment denied Panostaja Oyj’s claim in August 2009. Panostaja Oyj appealed the decision to the Administrative Court of Helsinki.
In June 2011, Panostaja Oyj was informed that the Administrative Court of Helsinki had rejected the appeal. The Administrative Court considers Panostaja Oyj as a capital investor within the meaning of the Finnish Business Tax Act. Panostaja Oyj has applied to the Supreme Administrative Court for the right to appeal the decision.
GROUP STRUCTURE CHANGES
At the beginning of November, M.Sc.(Econ.) S. Martti Niemi was appointed CEO of Lämpö-Tukku Oy. He first assumed the position under a fixed-term contract. Previously, he has worked as a management consultant and, among other posts, as the CEO at B&B Tools Finland Oy. Lämpö-Tukku Oy's previous CEO Jouko Tyrkkö was relieved of his duties.
In the period under review, Panostaja implemented an arrangement, through which Spectra Yhtiöt Oy acquired a 100% holding in Oy Alfa-Kem Ab by means of share exchange. Oy Alfa-Kem Ab previously formed the Technochemical segment of the Panostaja Group. Panostaja Oyj's holding in the corporate entity is 32%, which Panostaja will report as an associated company as of January 2012. In the previous financial period, Panostaja Group reported its business operations in thirteen segments.
SEGMENT INSPECTION
The business operations of Panostaja Group for the period under review are reported in twelve segments: Safety, Digital Printing Services, HEPAC Wholesale, Takoma, Safety, HEPAC Wholesale, Value-added Logistics, Fittings, Spare Parts for Motor Vehicles, Heat Treatment, Carpentry Industry, Supports, Fasteners and Other (parent company + associated companies).
NOVEMBER 2011–JANUARY 2012
Net sales in the Digital Printing Services segment grew from MEUR 7.0 to MEUR 8.3 and operating profit from MEUR 0.6 to MEUR 1.2. The development of operative functions had a positive effect on the net sales and particularly the operating profit. The impact of Suomen Graafiset Palvelut Oy, which was acquired in the previous financial period, on the increased net sales for the first quarter was MEUR 1.2. The realized corporate acquisition also had a positive impact on operating profit.
Net sales in the Takoma segment grew from MEUR 6.6 to MEUR 7.7. Operating loss increased from MEUR -0.2 to MEUR -0.5. The operating loss increased partially due to delayed cylinder deliveries. The delivery delays were caused by moving the factory facilities to Akaa during the review period. The Takoma segment's order book remained at the previous year's level at MEUR 12.
Net sales in the Safety segment grew from MEUR 5.8 to MEUR 7.3 and operating profit from MEUR 0.1 to MEUR 0.3. The increased net sales and operating profit were affected by the segment's organic growth. The segment succeeded in increasing its net sales and operating profit despite more fierce competition on the market.
Net sales in the HEPAC Wholesale segment decreased from MEUR 4.8 to MEUR 4.5 and the operating profit fell from MEUR 0.0 to MEUR -0.3. The decreased operating profit was primarily a result of one-time costs (MEUR 0.2) incurred from clearing up an inventory error discovered in the previous financial period. The changes in senior management and uncertainties in customer and supplier relations resulting from a cancelled corporate acquisition manifested themselves as decreased net sales and increased operating loss.
Net sales in the Value-added Logistics segment increased from MEUR 3.8 to MEUR 4.4, while the operating loss of MEUR -0.1 improved to an operating profit of MEUR 0.1. The development of operative functions and increased demand by the technology industry had a positive effect on the net sales and operating profit.
In the Fittings segment, net sales grew (MEUR 2.7) and operating profit (MEUR 0.1) remained at the reference year's level. This resulted from, for example, new product launches despite the prevailing market uncertainty.
Net sales in the Spare Parts for Motor Vehicles segment grew from MEUR 2.2 to MEUR 2.4, while operating profit remained at MEUR 0.2. The demand for original spare parts remained at the previous year's level.
Net sales in the Heat Treatment segment remained at MEUR 2.0, while operating profit dropped from MEUR 0.5 to MEUR 0.4. In the segment, service operations investments and technology industry investments have remained at the reference year's level.
Net sales in the Carpentry Industry segment decreased from MEUR 1.6 to MEUR 1.4 and operating profit dropped from MEUR 0.3 to MEUR 0.2. In the period under review, the segment continued to strengthen the market position of its own brand in selected distribution channels.
Net sales in the Supports segment increased from MEUR 0.8 to MEUR 0.9. The previous operating loss of MEUR -0.1 improved to an operating profit of MEUR 0.1. The increases in net sales and operating profit were affected by the weather conditions in November and December, which were exceptionally favorable to construction.
Net sales in the Fasteners segment remained at the reference year's level at MEUR 0.7. The operating profit dropped by MEUR -0.1 from the reference year (MEUR 0.0). The segment's customer demand has remained low.
There were no significant changes in the net sales of the Other segment. In the period under review, three associated companies issued reports: Ecosir Group Oy and PE Kiinteistörahasto I Ky as well as, as of January 2012, Spectra Yhtiöt Oy. The profit/loss of the reported associated companies in the review period was MEUR 0.1 (MEUR 0.1), which is presented on a separate row in the Group's income statement.
INVESTMENTS AND FINANCING
The Group’s gross capital expenditure in the review period closed were approximately MEUR 1.5 (MEUR 1.6). The Group's liquidity was good and cash flow from business operations, MEUR 5.1, was excellent (MEUR 1.7). The Group’s liquid assets were MEUR 14.1 (MEUR 16.6). The Group’s equity ratio was 32.0 % (33.0 %) and interest-bearing net liabilities totaled MEUR 43.9 (MEUR 45.4). Panostaja Oyj’s convertible subordinated loan amounted to MEUR 20.6 of the net liabilities (MEUR 17.2). The return on equity was -3.3% (-0.1%). The return on investment was 2.0% (3.0%).
| Financial position: | |||||||
| MEUR | January 31, 2012 | January 31, 2011 | October 31, 2011 | ||||
| Interest-bearing liabilities | 62.6 | 63.8 | 66.2 | ||||
| Interest-bearing receivables | 4.6 | 1.8 | 4.4 | ||||
| Cash and cash equivalents | 14.1 | 16.6 | 14.6 | ||||
| Interest-bearing net liabilities | 43.9 | 45.4 | 47.2 | ||||
| Equity (belonging to the parent company’s shareholders as well as minority shareholders) | 43.9 | 46.0 | 47.4 | ||||
| Gearing, % | 100.1 | 98.6 | 99.6 | ||||
| Equity ratio, % | 32.0 | 33.0 | 33.4 | ||||
| Return on equity, % | -3.3 | -0.1 | 5.0 | ||||
| Return on investment, % | 2.0 | 3.0 | 5.6 | ||||
The Annual General Meeting of January 31, 2012 approved the capital repayment proposal made by the Board. EUR 0.05 per share of capital repayment was paid from the invested unrestricted equity fund. The record date for the repayment was February 3, 2012, with the payment date being February 10, 2012. The repayment paid to the parent company’s shareholders totaled MEUR 2.6.
SHARE PRICE DEVELOPMENT AND SHARE OWNERSHIP
Panostaja Oyj’s share closing rate fluctuated between EUR 0.96 and EUR 1.05 during the period under review. In the period under review, the exchange of shares totaled 4,252,104 individual shares, which represents 8.3% of the share capital. The January share closing rate was EUR 1.04. The market value of the company’s share capital at the end of January was MEUR 53.8 and the company had 3,823 shareholders (4,052).
| Development of share exchange | 1Q/2012 | 1Q/2011 | |||||
| Shares exchanged, 1,000 pcs | 4,252 | 2,012 | |||||
| % of share capital | 8.3 | 3.9 | |||||
| Share | October 31, 2012 | January 31, 2011 | October 31, 2011 | ||||
| Shares in total, 1,000 pcs | 51,733 | 51,733 | 51,733 | ||||
| Own shares, 1,000 pcs | 590 | 632 | 602 | ||||
| Closing rate | 1.04 | 1.43 | 1.06 | ||||
| Market value, MEUR | 53.8 | 74.0 | 54.8 | ||||
| Shareholders | 3,823 | 4,052 | 3,826 | ||||
On December 19, 2011, Panostaja Oyj received two notifications pursuant to Chapter 2, Section 9 of the Securities Markets Act concerning changes to holding in a company.
Matti Koskenkorva’s share of Panostaja Oyj's total number of share votes was below 10%. Maija Koskenkorva's share was 4,411,873 shares, which represents 8.52% of Panostaja Oyj's share capital and number of votes. Treindex Oy's (former Koskismatti Oy) share of Panostaja Oyj's total number of share votes exceeded 5%. Treindex's share was 3,400,000 shares, which represents 6.57% of Panostaja Oyj's share capital and number of votes. Treindex Oy's shareholders are Minna Kumpu, Hanna Malo and Mikko Koskenkorva.
ADMINISTRATION AND GENERAL MEETING
Panostaja Oyj’s Annual General Meeting was held on January 31, 2012 in Tampere. Jukka Ala-Mello, Satu Eskelinen, Hannu Martikainen, Hannu Tarkkonen, Mikko Koskenkorva and Eero Eriksson were re-elected to Panostaja Oyj’s Board of Directors. In the Board’s organizing meeting held immediately after the General Meeting, Jukka Ala-Mello was elected Chairman of the Board. Hannu Tarkkonen was elected Vice Chairman. Authorized Public Accountant Markku Launis and Authorized Public Accountants PricewaterhouseCoopers Oy were selected as general chartered accountants, with Authorized Public Accountant Janne Rajalahti as the responsible public accountant.
The General Meeting approved the closing of the November 1, 2010–October 31, 2011 accounts as well as the proposal by the Board to transfer the profit of the financial period to the profit funds and that capital repayment be paid at a rate of EUR 0.05 per share. The record date for the repayment was February 3, 2012, with the payment date being February 10, 2012. In addition, the Annual Meeting authorized the Board to decide, at its discretion, on the potential distribution of assets to shareholders, the company's financial status permitting, either as dividends from profit funds or as distribution of assets from the invested unrestricted equity fund. The maximum distribution of assets performed on the basis of this authorization totals EUR 5,200,000. The authorization includes the right of the Board to decide on all other terms and conditions relating to the said asset distribution. The authorization will remain valid until the end of the next Annual General Meeting.
In addition, the Annual General Meeting granted exemption from liability to the members of the Board and to the CEO. It was decided at the Annual Meeting that the Chairman of the Board be paid EUR 40,000 as an annual compensation for the term that begins at the end of the Meeting and ends at the end of the 2013 Annual General Meeting, and that the other members of the Board be paid an annual compensation of EUR 20,000. It was further resolved at the Annual General Meeting that approximately 40% of the compensation remitted to the members of the Board be paid on the basis of the share issue authorization given to the Board, by issuing company shares to each Board member if the Board member does not own more than one percent of the company’s shares on the date of the General Meeting. If the holding of a Board member on the date of the General Meeting is over one percent of all company shares, the compensation will be paid in full in monetary form.
In addition, the Annual General Meeting resolved to cancel the authorization concerning the acquisition of the company’s own shares given at the General Meeting of January 27, 2011, and authorized the Board of Directors to decide on the acquisition of the company’s own shares so that the company’s own shares will be acquired in one or several installments and, on the basis of the authorization, a total maximum of 5,100,000 of the company’s own shares may be acquired. By virtue of the authorization, the company’s own shares may be obtained using unrestricted equity only.
The company’s own shares may be acquired at the date-of-acquisition price in public trade arranged by NASDAQ OMX Helsinki Oy or otherwise at the prevailing market price. The Board of Directors will decide how the company’s own shares are to be acquired. The company’s own shares may be acquired not following the proportion of ownership of the shareholders (directed acquisition). The authorization shall be valid until July 31, 2013.
The Board of Directors has not used the authorization granted by the Annual Meeting to acquire its own shares during the review period.
SHARE CAPITAL AND THE COMPANY’S OWN SHARES
At the close of the period under review, Panostaja Oyj’s share capital was EUR 5,568,681.60. The total number of shares is 51,733,110.
The total number of the company's own shares held by the company at the end of the review period was 589,875 individual shares (at the beginning of review period: 601,875). The number of the company's own shares corresponded to 1.1% of the share quantity and the number of votes at the end of the entire review period.
In accordance with the decisions by the General Meeting on January 27, 2011 and by the Board, Panostaja Oyj relinquished a total of 12,000 individual shares as meeting compensation to the members of the Board on December 16, 2011.
EQUITY CONVERTIBLE SUBORDINATED LOANS
At the end of the review period, EUR 5,631,250 of the 2006 convertible subordinated loan remained. The value of a single loan share was EUR 106,250 53 loan shares remained. The loan period of the 2006 convertible subordinated loan ended on March 1, 2012. The loan was repaid as a single installment on the end date of the loan period. A fixed 6.5% annual interest was paid for the loan. The interest was paid for the last time at the end of the loan period.
At the end of the review period, EUR 15,000,000 of the 2011 convertible subordinated loan remained. The interest rate for the loan is 6.5%, and the loan period is February 7, 2011–April 1, 2016. The original share exchange rate is EUR 2.20, and the loan shares can be exchanged for no more than 6,818,181 company shares. The total number of loan shares is 300, and they are available for public trade on the Nasdaq OMX Helsinki stock exchange. The share exchange rate will be entered into the company’s invested unrestricted equity fund.
At the end of the review period, the total sum of Panostaja Oyj’s subordinated loans stood at EUR 20,631,250.
NEAR-FUTURE RISKS AND FACTORS OF UNCERTAINTY
The most significant risks of the Panostaja Group have been described in the financial statements. The near-future risks the Group faces are mainly tied to the uncertainty resulting from the crisis in the eurozone and the global economic situation as well as their possible impact on achieving the goals set for the various segments. The instability of the overall economic situation may lead to a decline in customer demand as well as the postponement of major investments, particularly in segments serving the technology sector, which may result in a need for consolidated goodwill write-downs. In the current financial period, credit loss risks continue to represent a significant factor of uncertainty in some of the segments. The weakening in the liquidity of the financial markets and the possible restraints on credit issue may hamper the realization of corporate acquisitions and the availability of finance for working capital.
EVENTS AFTER THE REVIEW PERIOD
The loan period of the 2006 convertible subordinated loan ended on March 1, 2012. The loan (EUR 5,631,250) was repaid in full on the end date of the loan period. The annual interest of 6.5% was paid for the last time at the end of the loan period.
Oy Alfa-Kem Ab's prior parent company Annektor Oy merged with Panostaja Oyj on February 29, 2012. A total of MEUR 7.8 of the parent company's and the merged Annektor Oy's debts, including the convertible subordinated loan, was paid off on March 1, 2012. At the same time, loans in the amount of MEUR 6.3 were reorganized.
PROSPECTS FOR THE REMAINDER OF THE FINANCIAL PERIOD
In accordance with its business strategy, Panostaja Group will focus on increasing shareholder value in the business areas owned by the Group. The development of shareholder value will be constantly monitored as part of a changing operating environment, and decisions on the development or divestment of business segments will be made with the maximization of shareholder value in mind. Active development of shareholder value, the effective allocation of capital and financial opportunities create a solid foundation for significant operational expansion. The need for ownership arrangements in SMEs will enable expansion into new business areas and growth in existing ones.
Economic trend expectations in the fields of existing business areas are strongly tied to the prospects of customer enterprises. The current economic trend expectations are uncertain, and the growth forecast has generally been cut due to the credit crisis in the eurozone and decelerated economic growth. In the various business areas of Panostaja Group, the prospects still vary from cautiously positive to neutral. The market still provides sufficient opportunities for corporate acquisitions, and Panostaja Group aims to implement its growth strategy by means of controlled acquisitions. In addition, the divestment of certain business areas is being considered in order to release capital for new projects.
Panostaja will specify its result management procedures with regard to net sales. In the financial year 2012, the Group's net sales are estimated to grow 7–14% over the previous year, and the Group's operating profit is expected to increase.
Previous result management: It is expected that the Group’s net sales will increase further and its operating profit will improve in 2012.
Panostaja Oyj
Board of Directors
For further information, contact CEO Juha Sarsama: tel. +358 (0)40 774 2099.
Panostaja Oyj
Juha Sarsama
CEO
All forecasts and assessments presented in this interim report bulletin are based on the current outlook of the Group and the Management of the various business areas with regard to the state of the economy and its development, and the results attained may be substantially different.
The information in the interim report has not been audited.
| INCOME STATEMENT | |||||
| (EUR 1,000) | 11/11-01/12 | 11/10-01/11 | 2011 | ||
| 3 months | 3 months | 12 months | |||
| Net sales | 42,191 | 37,834 | 161,681 | ||
| Other operating income | 138 | 233 | 901 | ||
| Costs in total | 40,138 | 36,056 | 151,192 | ||
| Depreciations, amortizations and impairment | 1,294 | 1,279 | 5,143 | ||
| Operating profit/loss | 897 | 732 | 6,247 | ||
| Financial income and costs | -845 | -578 | -2.984 | ||
| Share of associated company profits | 50 | 60 | 205 | ||
| Profit before taxes | 102 | 214 | 3.468 | ||
| Taxes on income | -26 | 7 | -526 | ||
| Profit/loss from continuing operations | 76 | 221 | 2.942 | ||
| Profit from discontinued operations | -457 | -241 | -726 | ||
| Profit/loss for the financial period | -381 | -20 | 2.216 | ||
| Attributable to | |||||
| the shareholders of the parent company | -553 | -148 | 937 | ||
| the minority | 172 | 128 | 1,279 | ||
| Earnings per share from continuing operations | |||||
| EUR, undiluted | -0.002 | 0.002 | 0.033 | ||
| Earnings per share from continuing operations | |||||
| EUR, diluted | -0.002 | 0.002 | 0.033 | ||
| Earnings per share from discontinued operations | |||||
| EUR, undiluted | -0.009 | -0.005 | -0.014 | ||
| Earnings per share from discontinued | |||||
|
operations EUR, diluted |
-0.009 | -0.005 | -0.014 | ||
| Earnings per share on continuing and discontinued | |||||
| operations EUR, undiluted | -0.011 | -0.003 | 0.019 | ||
| Earnings per share on continuing and discontinued | |||||
| operations EUR, diluted | -0.011 | -0.003 | 0.019 | ||
| EXTENSIVE INCOME STATEMENT | |||||
| Items of the extensive income statement | -381 | -20 | 2,216 | ||
| Translation differences | 54 | 10 | -135 | ||
| Extensive income statement for the period | -327 | -10 | 2,081 | ||
| Attributable to | |||||
| the shareholders of the parent company | -499 | -138 | 802 | ||
| the minority | 172 | 128 | 1,279 | ||
| BALANCE SHEET | January 31, 2012 | January 31, 2011 | October 31, 2011 |
| (EUR 1,000) | |||
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 35,570 | 38,561 | 36,529 |
| Other intangible assets | 4,900 | 5,514 | 5,049 |
| Property, plant and equipment | 20,065 | 17,761 | 20,061 |
| Interests in associates | 3,515 | 2,443 | 2,740 |
| Other non-current assets | 14,703 | 9,586 | 13,097 |
| Non-current assets total | 78,753 | 73,865 | 77,476 |
| Current assets | |||
| Stocks | 22,779 | 25,234 | 24,005 |
| Trade and other non-interest-bearing receivables | 22,463 | 23,777 | 26,307 |
| Cash and cash equivalents | 14,095 | 16,639 | 14,643 |
| Current assets total | 59,337 | 65,650 | 64,955 |
| Assets in total | 138,090 | 139,515 | 142,431 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to parent company shareholders | |||
| Share capital | 5,569 | 5,569 | 5,569 |
| Share premium account | 4,646 | 4,646 | 4,646 |
| Translation difference | -115 | -47 | -169 |
| Invested unrestricted equity fund | 16,481 | 18,494 | 19,023 |
| Retained earnings | 3,494 | 3,740 | 4,047 |
| Total | 30,075 | 32,402 | 33,116 |
| Minority interest | 13,836 | 13,595 | 14,270 |
| Equity total | 43,911 | 45,997 | 47,386 |
| Liabilities | |||
| Deferred tax liabilities | 1,500 | 1,774 | 1,520 |
| Equity convertible subordinated loan | 19,945 | 17,038 | 19,895 |
| Non-current liabilities | 31,208 | 34,805 | 32,679 |
| Current liabilities | 41,526 | 39,901 | 40,951 |
| Liabilities total | 94,179 | 93,518 | 95,045 |
| Equity and liabilities in total | 138,090 | 139,515 | 142,431 |
| CASH FLOW STATEMENT | 01/2012 | 01/2011 | 2011 |
| Net cash flow from (used in) operations | 5,078 | 1,656 | 4,354 |
| Net cash flow from (used in) investments | -1,435 | -1,609 | -6,782 |
| Loans drawn | 398 | 1,313 | 19,437 |
| Loans repaid | -4,013 | -2,693 | -17,743 |
| Share issue | 0 | 5,737 | 5,737 |
| Share subscription | 0 | 316 | 316 |
| Disposal of own shares | 12 | 906 | 942 |
| Dividends paid | -619 | -265 | -2,853 |
| Net cash flow from (used in) financing | -4,222 | 5,314 | 5,836 |
| Change in cash flows | -579 | 5,361 | 3,408 |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||
|
(EUR 1,000) |
Equity | Share premium account | Invested unrestricted equity fund | Translation differences | Profit funds | Minority share-holders’ interest | Total | ||||||
| Equity on November 1, 2010 | 5,529 | 4,646 | 11,574 | -57 | 6,497 | 13,923 | 42,112 | ||||||
| Profit for the financial period | -149 | 129 | -20 | ||||||||||
| Dividends paid | -2,555 | -265 | -2,82 | ||||||||||
| Share subscription | 40 | 276 | 316 | ||||||||||
| Share issue | 5,738 | 5,738 | |||||||||||
| Disposal of own shares | 906 | 906 | |||||||||||
| Translation differences | 10 | 10 | |||||||||||
| Changes in minority interest | -53 | -192 | -245 | ||||||||||
| Other changes in equity, total | 40 | 6,92 | 10 | -2,608 | -457 | 3,905 | |||||||
| Equity on January 31, 2011 | 5,569 | 4,646 | 18,494 | -47 | 3,74 | 13,595 | 45,997 | ||||||
| Equity on November 1, 2011 | 5,569 | 4,646 | 19,023 | -169 | 4,047 | 14,27 | 47,386 | ||||||
| Profit for the financial period | -553 | 172 | -381 | ||||||||||
| Dividends paid | -619 | -619 | |||||||||||
| Repayment of capital | -2,557 | -2,557 | |||||||||||
| Disposal of own shares | 12 | 12 | |||||||||||
| Reward system | 3 | 3 | |||||||||||
| Translation differences | 54 | 54 | |||||||||||
| Changes in minority interest | 13 | 13 | |||||||||||
| Other changes in equity, total | -2,542 | 54 | 0 | -616 | -3,094 | ||||||||
| Equity on January 31, 2012 | 5,569 | 4,646 | 16,481 | -115 | 3,494 | 13,836 | 43,911 | ||||||
| KEY FIGURES | ||||
| 01/2012 | 01/2011 | 10/2011 | ||
| Equity per share, EUR | 0.59 | 0.63 | 0.65 | |
| Earnings per share, diluted, EUR | -0.01 | -0.00 | 0.02 | |
| Earnings per share, undiluted, EUR | -0.01 | -0.00 | 0.02 | |
| Average number of shares during financial period, 1,000 | 51,137 |
47,194 |
50,128 | |
| Number of shares at end of review period, 1,000 | 51,733 | 51,733 | 51,733 | |
| Share issues/CL exchanges during financial period, 1,000 | 0 | 4,330 | 4,330 | |
| Number of shares, 1,000, diluted | 61,268 | 57,319 | 60,258 | |
| Return on equity, % | -3.3 | -0.1 | 5.0 | |
| Return on investment, % | 2.0 | 3.0 | 5.6 | |
| Gross capital expenditure | ||||
| To permanent assets, MEUR | 1.5 | 1.6 | 9.1 | |
| % of net sales | 3.6 | 4.2 | 5.6 | |
| Interest-bearing liabilities | 62.6 | 63.8 | 66.2 | |
| Equity ratio, % | 32.0 | 33.0 | 33.4 | |
| Average number of employees | 1,096 | 990 | 1,034 | |
GROUP DEVELOPMENT BY QUARTER
| Q1/12 | Q4/11 | Q3/11 | Q2/11 | Q1/11 | Q4/10 | Q3/10 | |
| Net sales | 42.2 | 44.7 | 39.2 | 40.0 | 37.8 | 39.6 | 34.4 |
| Other operating income | 0.1 | 0.4 | 0.1 | 0.1 | 0.2 | 1.6 | 0.0 |
| Costs in total | -40.1 | -42.8 | -35.5 | -36.8 | -36.0 | -37.5 | -31.9 |
| Depreciations, amortizations and impairment | -1.3 | -0.8 | -1.6 | -1.5 | -1.3 | -1.5 | -1.2 |
| Operating profit/loss | 0.9 | 1.5 | 2.2 | 1.8 | 0.7 | 2.1 | 1.3 |
| Financing items | -0.8 | -0.7 | -0.9 | -0.9 | -0.6 | -0.7 | -0.6 |
| Share of associated company profits | 0.1 | 0.1 | -0.1 | 0.1 | 0.1 | 0.0 | 0.0 |
| Profit before taxes | 0.1 | 0.9 | 1.2 | 1.0 | 0.2 | 1.4 | 0.5 |
| Taxes | 0.0 | -0.1 | -0.6 | 0.2 | 0.0 | 0.1 | -0.3 |
| Profit from continuing operations | 0.1 | 0.8 | 0.6 | 1.4 | 0.2 | 1.5 | 0.2 |
| Profit from discontinued operations | -0.5 | -0.1 | 0.0 | -0.4 | -0.2 | -2.1 | -0.2 |
| Profit for the financial period | -0.4 | 0.7 | 0.6 | 1.0 | 0.0 | -0.6 | 0.0 |
| Minority interest | 0.2 | 0.3 | 0.3 | 0.5 | 0.1 | -0.4 | 0.2 |
| Parent company shareholder interest | -0.6 | 0.4 | 0.3 | -0.5 | -0.1 | -1.0 | 0.2 |
| GUARANTEES GIVEN |
| EUR 1,000 | 01/2012 | 01/2011 | 2011 |
| Guarantees given on behalf of Group companies | |||
| Enterprise mortgages | 41,394 | 40,988 | 41,394 |
| Pledges given | 54,184 | 59,225 | 59,019 |
| Other liabilities | 1,549 | 680 | 1,549 |
| Other rental agreements | |||
| In one year | 7,121 | 5,451 | 7,160 |
| In over one year but within five years maximum | 17,572 | 13,623 | 17,543 |
| In over five years | 3,695 | 4,114 | 3,162 |
| Total | 28,388 | 23,188 | 27,865 |
|
SEGMENT INFORMATION
|
||
| NET SALES | 1Q/2012 | 1Q/2011 |
| Digital Printing Services | 8,324 | 7,013 |
| Takoma | 7,699 | 6,594 |
| Safety | 7,326 | 5,782 |
| HEPAC Wholesale | 4,460 | 4,794 |
| Value-added Logistics | 4,441 | 3,756 |
| Fittings | 2,714 | 2,741 |
| Spare Parts for Motor Vehicles | 2,448 | 2,214 |
| Heat Treatment | 1,953 | 2,006 |
| Carpentry Industry | 1,412 | 1,590 |
| Supports | 947 | 837 |
| Fasteners | 679 | 702 |
| Other | 16 | 14 |
| Eliminations | -228 | -209 |
| Group in total | 42,191 | 37,834 |
|
|
||
| OPERATING PROFIT | 1Q/2012 | 1Q/2011 |
| Digital Printing Services | 1,155 | 589 |
| Takoma | -538 | -247 |
| Safety | 281 | 159 |
| HEPAC Wholesale | -304 | 34 |
| Value-added Logistics | 159 | -84 |
| Fittings | 106 | 63 |
| Spare Parts for Motor Vehicles | 179 | 203 |
| Heat Treatment | 413 | 484 |
| Carpentry Industry | 196 | 312 |
| Supports | 131 | -56 |
| Fasteners | -68 | -33 |
| Other | -813 | -692 |
| Group in total | 897 | 732 |
SEGMENT INFORMATION BY QUARTER
| Net sales (MEUR) | 1Q/12 | 4Q/11 | 3Q/11 | 2Q/11 | 1Q/11 | 4Q/10 | 3Q/10 |
| Digital Printing Services | 8.3 | 8.5 | 7.8 | 8.2 | 7.0 | 6.7 | 5.6 |
| Takoma | 7.7 | 7.4 | 6.3 | 7.2 | 6.6 | 6.8 | 4.9 |
| Safety | 7.3 | 7.0 | 5.8 | 6.0 | 5.8 | 6.3 | 5.3 |
| HEPAC Wholesale | 4.5 | 6.2 | 5.2 | 4.4 | 4.8 | 5.5 | 5.0 |
| Value-added Logistics | 4.4 | 4.0 | 3.9 | 3.8 | 3.8 | 3.8 | 3.8 |
| Fittings | 2.7 | 3.0 | 2.7 | 3.0 | 2.7 | 3.1 | 3.2 |
| Spare Parts for Motor Vehicles | 2.4 | 2.8 | 2.4 | 2.2 | 2.2 | 2.4 | 2.2 |
| Heat Treatment | 2.0 | 2.7 | 2.2 | 2.2 | 2.0 | 2.0 | 1.7 |
| Carpentry Industry | 1.4 | 1.3 | 1.3 | 1.5 | 1.6 | 1.3 | 1.3 |
| Supports | 0.9 | 1.2 | 1.0 | 0.9 | 0.8 | 1.1 | 0.9 |
| Fasteners | 0.7 | 0.8 | 0.8 | 0.8 | 0.7 | 0.8 | 0.7 |
| Other | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 |
| Eliminations | -0.1 | -0.2 | -0.2 | -0.2 | -0.2 | -0.3 | -0.2 |
| Group in total | 42.2 | 44.7 | 39.2 | 40.0 | 37.8 | 39.6 | 34.4 |
| Operating profit (MEUR) | 1Q/12 | 4Q/11 | 3Q/11 | 2Q/11 | 1Q/11 | 4Q/10 | 3Q/10 |
| Digital Printing Services | 1.1 | 1.3 | 1.1 | 1.1 | 0.6 | 1.0 | 0.7 |
| Takoma | -0.5 | -0.6 | -0.4 | -0.1 | -0.2 | -0.6 | -0.4 |
| Safety | 0.3 | 0.3 | 0.4 | 0.4 | 0.1 | 1.2 | 0.4 |
| HEPAC Wholesale | -0.3 | -0.6 | 0.0 | 0.0 | 0.0 | 0.2 | 0.1 |
| Value-added Logistics | 0.1 | 0.3 | 0.2 | 0.0 | -0.1 | 0.0 | 0.1 |
| Fittings | 0.1 | 0.0 | 0.0 | 0.2 | 0.1 | 0.2 | 0.1 |
| Spare Parts for Motor Vehicles | 0.2 | 0.4 | 0.3 | 0.2 | 0.2 | 0.3 | 0.3 |
| Heat Treatment | 0.4 | 0.7 | 0.5 | 0.4 | 0.5 | 0.1 | 0.0 |
| Carpentry Industry | 0.2 | 0.1 | 0.3 | 0.3 | 0.3 | -0.1 | 0.2 |
| Supports | 0.1 | 0.2 | 0.2 | 0.1 | -0.1 | 0.1 | 0.2 |
| Fasteners | -0.1 | -0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Other | -0.7 | -0.5 | -0.4 | -0.8 | -0.7 | -0.2 | -0.4 |
| Group in total | 0.9 | 1.5 | 2.2 | 1.8 | 0.7 | 2.2 | 1.3 |
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 Oyj currently operates in eleven business areas. Flexim Security Oy (Safety) is a specialist in security technology and services, locking, door automation and access control products and solutions. Heatmasters Group (Heat Treatment) offers thermal treatment services for 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 and BMW cars. Kopijyvä Oy (Digital Printing Services) is one of Finland’s largest companies offering digital printing services. Lämpö-Tukku Oy (HEPAC Wholesale) specializes in HEPAC wholesale operations. Suomen Helakeskus Oy (Fittings) is a major wholesale dealer concentrating on construction and furniture fittings. Suomen Kiinnikekeskus Oy (Fasteners) is a supply shop in the fastener field. Matti-Ovi Oy (Carpentry Industry) manufactures and markets, as its main product, solid wood interior doors. Takoma Oyj (Takoma) is a machine shop group with an entrepreneur-driven business model and is registered on the stock exchange. Toimex Oy (Supports) works in the HVAC field, manufacturing and selling supports. Vindea Oy (Value-added Logistics) is an enterprise specialized in value-added logistics services for the Finnish metal industr