REVENIO GROUP CORPORATION INTERIM REPORT Q1-Q2/ 2012 - Health Care segment showing strong profitable growth
Q1-Q2/2012
Key issues of the review period:
- Icare Finland was able to significantly improve its net sales and operating profit
- Profit performance was strong in Done Software Solutions; Midas Touch and FLS Finland improved their operating profit
- Operational adjustments implemented in Done Logistics, a non-recurring adjustment cost of EUR 1.2 million was posted for the second quarter
Group key figures:
- Consolidated net sales EUR 14.0 million (16.3), down 13.9 percent
-Icare Finland, Done Software Solutions, FLS Finland and Midas Touch showed a growth in net sales while Boomeranger Boats and Done logistics- the companies involved in project industry- saw a decrease in net sales
- Consolidated operating profit excluding non-recurring costs was EUR 1.1 million (EUR 2.1million), or 7.9 (13.1) per cent of net sales
- Consolidated operating profit (EBIT) EUR -0.1 million (EUR 2.1 million) or -0.9 per cent (13.1 per cent) of net sales; Done Logistics' non-recurring adjustment costs of EUR 1.2 million recorded for the second quarter taxed performance
- Net result from discontinued operations EUR -0.3 million (EUR 0.1 million) due to the write-down of the additional sale price receivable from the divestment of Done Information
- Diluted and undiluted earnings per share, continuing and discontinued operations, EUR -0.008 (EUR 0.021)
- Cash flow from operating activities EUR -0.8 million (EUR 2.1 million); a major contributing factor being the timing of the scheduled payments for the project deliveries
- The AGM decided on the distribution of a per-share dividend of EUR 0.02 (EUR 0.02).
- The Group's financial guidance for 2012 will remain unchanged: Net sales and operating profit for 2012 are forecast to fall in comparison to 2011 figures due to developments at the Systems segment. Operating profit excluding non-recurring items is expected to remain clearly positive.
Q2/2012
- Consolidated net sales EUR 6.3 million (8.5), down 26.0 percent
- Consolidated operating profit excluding non-recurring costs was EUR 0.7 million (EUR 1.2 million), or 11.4 (13.8) per cent of net sales
- Consolidated operating profit (EBIT) EUR -0.5 million (EUR 1.2 million) or -8.4 per cent (13.8 per cent) of net sales; Done Logistics' non-recurring adjustment costs of EUR 1.2 million recorded for the second quarter taxed performance
President and CEO Olli-Pekka Salovaara:
"In the first half of the year, our companies began to veer off in different directions in terms of business development. Icare Finland, which operates in the Health Care segment, was once again able to outperform its reference period figures and is showing excellent profitability development. Also showing vigorous development is Done Software Solutions with strong net sales and operating profit performance, owing to the goal-oriented work performed by the company. Compared to the previous year, FLS Finland started out better and has been able to grow, primarily thanks to export deliveries. Midas Touch saw its business pick up slightly and was able to improve its performance from the previous year.
After last year's solid performance, heavy marketing investments and successful customer cases, Boomeranger Boats had high expectations in the first half. The volatility of the markets, caused by the current economic situation, may result in varying development in quarter-on- quarter comparison.
During the review period, Done Logistics was completing the mechanical installation phase of its Norwegian projects. As the installation phase was being completed while the amount of new projects being low, the company implemented extensive operational adjustments during the review period, which resulted in the recognition of EUR 1.2 million in adjustment costs and other non-recurring costs for the second quarter. Adjustments involved personnel reductions of 25 employees - almost a half of all personnel. The non-recurring costs arising from the adjustments had a dramatic impact on the Group's first-half result. These measures, however, enable the group to operate on more solid ground in the future"
MARKET SITUATION
The market situation was reasonably good in the Services segment, particularly in the outsourced teleservices business. The segment's service offering has been clearly focused on inbound operations, but the most lucrative telemarketing assignments are still part of the portfolio. Growth in the inbound markets is sought particularly from smaller outsourcing assignments.
In the Systems segment, the demand for internal-logistics automation systems was weak and the market situation was very challenging in all customer groups and product areas. On the other hand, the demand for internal-logistics information systems picked up over the review period, and the market situation is expected to remain favorable during the current year.
In the Health Care segment, demand for Icare Finland tonometers continued to grow during the period and the market situation remained good. Demand is particularly strong in the US markets. The demand for probes used in tonometers is growing due to the growth of the number of devices in the market.
In the Safety segment, the demand trend remained similar to that seen in the past few years. Several invitations to tender have been requested in both traditional and new markets, but the decision-making processes are slow. This is largely due to the national economic uncertainty experienced in the traditional market areas. Nevertheless, public investments in defense and safety are expected to continue, since some customers need to modernize their equipment and have other concrete needs to invest in additional equipment. The demand may therefore fluctuate quite dramatically from one quarter or year to the next, even though the basic market sentiment remains unchanged.
In the Technology segment, the demand for fuel price displays saw some growth year-on-year. There is healthy demand for small price display units, especially in the European export markets.
NET SALES, PROFITABILITY AND PROFIT
Consolidated net sales from Revenio Group's continuing operations for the period from January 1 to June 30, 2012 were EUR 14.0 million (EUR 16.3 million), showing a decrease of -13.9 percent. For Q2, consolidated net sales for continuing operations came to EUR 6.3 million (EUR 8.5 million); a decrease of -26.0 per cent.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 0.2 million (EUR 2.5 million), or 1.8 per cent (15.4 percent) of net sales, and before non-recurring items EUR 1.5 million, or 10.6 per cent (15.4 per cent) of net sales. Consolidated operating profit (EBIT) was EUR -0.1 million (EUR 2.1 million), representing -0.9 per cent (13.1 percent) of net sales. Consolidated operating profit excluding non-recurring costs was EUR 1.1 million (EUR 2.1 million), or 7.9 (13.1) percent of net sales.
The pre-tax result totaled EUR -0.3 million (EUR 2.0 million), or -2.3 per cent (12.3 per cent) of net sales. For continuing operations, net profit for Q1-Q2/2012 was EUR -0.3 million (EUR 1.4 million) and EUR -0.5 million (EUR 0.8 million) for Q2/2012, representing -8.4 per cent (9.6 per cent) of net sales.
Net profit for discontinued operations for Q1-Q2/2012 was EUR -0.3 million (EUR 0.1 million). The result for discontinued operations includes the write-down of the additional sale price receivable from the divestment of Done Information Oy on July 19, 2011. The additional sale price will remain unpaid, as the net sales target set as the condition for the additional sale price has, according to the buyer, not been met in the specified period.
In Q1-Q2/2012, undiluted and diluted earnings per share came to EUR -0.004 (0.019) for continuing operations and EUR -0.004 (0.002) for discontinued operations. Equity per share was EUR 0.19 (EUR 0.19).
The decrease in the net sales generated by the Systems segment's Norwegian projects contributed to the decrease in consolidated net sales. The Safety segment also saw a decrease in net sales. The other segments were able to grow their net sales. Key factors contributing to the decrease in operating profit were the losses sustained by Done Logistics in the delivery phase of the Norwegian projects, the difficult market situation, and the company's EUR 1.2 million adjustment costs and other non-recurring costs. Due to small net sales, the Safety segment suffered from poor profitability. The other segments saw marked year-on-year increases in operating profit.
BALANCE SHEET, FINANCIAL POSITION AND INVESTMENTS
The consolidated balance sheet total on June 30, 2012 was EUR 23.7 million (EUR 25.2 million). Shareholders' equity came to EUR 14.4 million (EUR 14.6 million). At the end of the review period, interest-bearing net liabilities amounted to EUR -0.3 million (EUR 0.3 million) and gearing stood at -1.9 (1.9) per cent. The consolidated equity ratio was 61.6 (61.2) per cent. The Group's liquid assets amounted to EUR 4.0 million (EUR 1.9 million) at the end of the review period.
The Group's financial position remained stable in the period under review. To strengthen its financial position, the Group withdrew a EUR 2.0 million stand-by credit, and made arrangements for a EUR 2.0 million credit facility, which remained fully undrawn at the end of the period. The credit facility replaces the existing overdraft checking account facility.
In Q1-Q2/2012, cash flow from operating activities amounted to EUR -0.8 million (EUR 2.1 million). Cash flow from operating activities for the second quarter came to EUR 1.0 million (EUR -0.3 million).
The Group's purchases of PPE and intangible assets totalled EUR 0.2 million (EUR 0.3 million).
OPERATIONS BY BUSINESS SEGMENT
Revenio Group Corporation's business operations are organized into five segments: Services (Midas Touch Oy), Systems (Done Logistics Oy and Done Software Solutions Oy), Health Care (Icare Finland Oy), Safety (Boomeranger Boats Oy), and Technology (FLS Finland). This structure is in line with the Group's organization and internal reporting.
Services
The Service segment's net sales in Q1-Q2 were up by 8.5 per cent to EUR 2.7 million (EUR 2.4 million). The segment's profit margin was EUR 0.2 million (EUR 0.1 million). Second-quarter net sales amounted to EUR 1.2 million (EUR 1.2 million), while the margin was EUR 0.1 (0.1) million.
Midas Touch Oy's net sales saw an increase year-on-year due to the growth in inbound operations and successful telemarketing assignments. Accordingly, the operating profit for the review period saw a favorable development and was clearly higher than a year earlier.
Systems
The Systems segment comprises Done Logistics, which provides companies with materials handling systems associated with their internal logistics, and Done Software Solutions Oy, which provides information systems for internal logistics and inventory management, as well as the related services.
In Q1-Q2 2012, the Systems segment's net sales amounted to EUR 3.3 million (EUR 5.7 million), down 42.3 percent. The segment's profit margin was EUR -2.0 million (EUR 0.5 million). Second-quarter net sales amounted to EUR 0.9 million (EUR 3.2 million), while the margin was EUR -1.4 (0.3) million.
Done Logistics' net sales and profitability saw a pronounced decrease year-on-year. The disappointing development was caused by losses sustained in the installation phase of the Norwegian projects, and the fact that the company has been unable to obtain new significant orders to replace the Norwegian projects, which are close to completion. The mechanical installation phase has now been completed in Norway, and measures involved in the implementation phase are currently underway. A significantly smaller number of personnel will be needed in Norway after the installation.
Owing to the situation, the company implemented adjustment and streamlining measures in the second quarter that generated non-recurring costs of EUR 1.2 million. The costs include salaries paid in the notice period, leasing liabilities on business premises, and the final-phase arrangements involved in the Norwegian projects. The adjustment measures resulted in a reduction of 25 personnel.
The Managing Director of Done Logistics changed during the review period. On May 30, 2012, Riku Lamppu, the CEO of Midas Touch Oy, took up the position of an acting Managing Director.
Done Software Solutions performed well in the internal logistics software markets during the period and was able to significantly grow both its net sales and operating profit. Factors contributing to the increase in net sales were the successful acquisition of new customers as well as system development work ordered by existing customers.
Health Care
The Health Care segment comprises Icare Finland, which specializes in the development, manufacture and sale of tonometers measuring intraocular pressure.
In Q1-Q2 2012, the Health Care segment's net sales amounted to EUR 5.2 million (EUR 4.4 million), an increase of 17.3 per cent. The segment's profit margin was EUR 2.4 million (EUR 1.9 million). Second-quarter net sales amounted to EUR 2.6 million (EUR 2.2 million), while the margin was EUR 1.2 (0.9) million.
Sales performance was strong in both quarters, with sales figures and operating profit clearly exceeding the previous year's level. Timo Hildén joined the company as its new CEO on April 9, 2012, as the previous CEO, Ari Tiukkanen, took up a position with another company.
Safety
The Safety segment consists of Boomeranger Boats, which designs, manufactures, and sells Rigid Inflatable Boats (RIBs) of the highest quality, primarily for navy rescue units, authorities and defense forces of various countries.
In Q1-Q2 2012, the Safety segment's net sales amounted to EUR 1.2 million (EUR 2.6 million), down 53.1 percent. The segment's profit margin was EUR -0.1 million (EUR 0.4 million). Second-quarter net sales amounted to EUR 0.6 million (EUR 1.2 million), while the margin was EUR 0.0 (0.2) million.
Only a small number of orders for boats were in production in the first half, bringing net sales and operating profit clearly down year-on-year. In February, the company obtained an order for three RIB boats from the Armed Forces of Malta for delivery in 2012. The company has made determined efforts to increase its international recognition, and is taking part in tender processes in new and traditional market areas.
Technology
Representing the Technology segment, FLS Finland (previously Finnish Led-Signs) is the largest supplier of LED price displays in the Nordic region and is Finland's leading manufacturer of LED information displays and parking guidance systems.
In Q1−Q2, net sales for the Technology segment totaled EUR 1.6 million (EUR 1.1 million), an increase of 48.6 per cent. The segment's profit margin was EUR 0.1 million (EUR 0.0 million). Second-quarter net sales amounted to EUR 0.9 million (0.7), while the margin was EUR 0.1 (0.1) million.
Net sales growth in the review period could be primarily attributed to the healthy export demand for price display devices. Due to the current price level in the export markets, operating profit development was not on a par with net sales growth.
| Net sales and segment's margin excluding non-recurring items were as follows: | ||||||||
| Net Sales | Net Sales | Segment profit margin | Segment profit margin | |||||
| 1-6/2012 | 1-6/2011 | 1-6/2012 | 1-6/2011 | |||||
| MEUR | share | MEUR | share | MEUR | % | MEUR | % | |
| Services | 2.7 | 19 % | 2.4 | 15 % | 0.16 | 6 % | 0.09 | 4 % |
| Systems Total | 3.3 | 24 % | 5.7 | 35 % | -1.96 | -59 % | 0.45 | 8 % |
| -Done Logistics | 2.4 | 17 % | 5.1 | 31 % | -2.28 | -96 % | 0.35 | 7 % |
| -Done Software Solutions | 0.9 | 7 % | 0.6 | 4 % | 0.32 | 35 % | 0.10 | 17 % |
| Health Care | 5.2 | 37 % | 4.4 | 27 % | 2.42 | 47 % | 1.91 | 43 % |
| Safety | 1.2 | 9 % | 2.6 | 16 % | -0.05 | -4 % | 0.36 | 14 % |
| Technology | 1.6 | 12 % | 1.1 | 7 % | 0.14 | 8 % | 0.01 | 1 % |
| Total | 14.0 | 100 % | 16.3 | 100 % | 0.71 | 5 % | 2.82 | 17 % |
| Parent co. expenses | -0.84 | -0.68 | ||||||
| Operating Profit/loss | ||||||||
| (Excluding non-recurring items) | -0.13 | -1 % | 2.14 | 13 % | ||||
Net sales, margin and profit by segment and by quarter for the Group's continuing operations were as follows:
| MEUR | Q2/12 | Q1/12 | Q4/11 | Q3/11 | Q2/11 | Q1/11 | |
| Net sales: | |||||||
| Services | 1.2 | 1.4 | 1.3 | 1.2 | 1.2 | 1.2 | |
| Systems total | 0.9 | 2.4 | 3.6 | 3.9 | 3.2 | 2.6 | |
| -Done Logistics | 0.5 | 1.9 | 3.1 | 3.6 | 2.9 | 2.2 | |
| -Done Software Solutions | 0.5 | 0.5 | 0.4 | 0.3 | 0.3 | 0.3 | |
| Health care | 2.6 | 2.6 | 2.6 | 1.9 | 2.2 | 2.3 | |
| Safety | 0.6 | 0.6 | 0.6 | 0.6 | 1.2 | 1.4 | |
| Technology | 0.9 | 0.7 | 0.7 | 0.7 | 0.7 | 0.4 | |
| Total | 6.3 | 7.7 | 8.8 | 8.2 | 8.5 | 7.8 | |
| Segment profit margin: | Q2/12 | Q1/12 | Q4/11 | Q3/11 | Q2/11 | Q1/11 | |
| Services | 0.05 | 0.12 | -0.03 | 0.06 | 0.06 | 0.03 | |
| Systems Total | -1.37 | -0.58 | -0.81 | 0.69 | 0.34 | 0.11 | |
| -Done Logistics | -1.53 | -0.74 | -0.94 | 0.64 | 0.30 | 0.04 | |
| -Done Software Solutions | 0.16 | 0.16 | 0.13 | 0.05 | 0.04 | 0.06 | |
| Health care | 1.15 | 1.29 | 1.21 | 0.79 | 0.90 | 1.00 | |
| Safety | -0.05 | 0.00 | 0.06 | 0.13 | 0.17 | 0.19 | |
| Technology | 0.07 | 0.07 | 0.03 | 0.07 | 0.06 | -0.06 | |
| Total | -0.14 | 0.89 | 0.46 | 1.74 | 1.53 | 1.26 | |
| Parent co. expenses | -0.39 | -0.46 | -0.42 | -0.47 | -0.37 | -0.31 | |
| Operating profit | -0.52 | 0.44 | 0.04 | 1.27 | 1.16 | 0.95 | |
| Operating profit-% | -8.4 | 5.1 | 0.3 | 15.8 | 13.8 | 12.4 | |
HUMAN RESOURCES
During the period, the number of personnel employed by the Group averaged 253 (252) in continuing operations. At the end of the period, the number of employees was 267 (257) in continuing operations.
The number of personnel employed by the Group during the period, by segment, averaged:
| 30 June 2012 | 30 June 2011 | Change | ||
| Services | 144 | 142 | 2 | |
| Systems | 58 | 59 | -1 | |
| Health Care | 13 | 12 | 1 | |
| Safety | 23 | 23 | 0 | |
| Technology | 11 | 12 | -1 | |
| Parent company | 4 | 4 | 0 | |
| Total | 253 | 252 | 1 |
Wages, salaries and other remuneration paid in continuing operations during the period totaled EUR 4.8 million (EUR 4.3 million).
SHARES, SHARE CAPITAL AND MANAGEMENT HOLDINGS
On June 30, 2012, Revenio Group Corporation's fully paid share capital registered in the Trade Register
was EUR EUR 5,314,918.72 and the number of shares outstanding totaled 76,889,730.
The company has one series of shares. All shares confer the same voting rights and an equal right to dividends and the company's funds.
On June 30, 2012, the Board of Directors and the President and CEO held 1.9 per cent of the company's shares, totaling 1,429,267 shares, and 18.6 per cent of the option rights, for a total of 684,365 options.
CHANGES IN SHAREHOLDING
There were no significant changes in ownership to report during the review period.
CURRENT OPTION RIGHTS
On the basis of the share issue authorization approved by the Annual General Meeting on April 3, 2007, the Board of Revenio Group Corporation decided, on November 23, 2007, on a new corporate option plan, comprising a maximum of 3,684,365 option rights. Each option right entitles the holder to subscribe to one Revenio Group Corporation share. Against the total number of the company's shares on June 30, 2012, the proportion of shares to be subscribed to on the basis of the option rights issued represents a maximum of 2.5% of the company's shares and votes, once all new shares subscribed for with these option rights have been registered. Share subscriptions via the option program entitle the holder to a dividend from the subscription year onwards.
The option rights have been divided into three series: Series A (1,684,365 shares), Series B (1,000,000) and Series C (1,000,000.
The subscription periods with the options are as follows: Series A, May 1, 2009 - May 1, 2013, Series B, November 1, 2010 - November 1, 2014, and Series C, May 1, 2012 - May 1, 2016.
The share subscription price will be the trade-weighted average price during the periods November 1-30, 2007 (EUR 0.62, Series A), April 1-30, 2009 (EUR 0.27, Series B) and November 1-30, 2010 (EUR 0.26, Series C).
No new options were granted during the period. At the end of the period, the company's key personnel held a total of 1,081,243 Series 2007A options, 908,122 Series 2007B options and 1,000,000 Series 2007C options.
Series 2007B option rights, a total of 1,000,000 option rights, have been available for trading on the NASDAQ OMX Helsinki exchange since March 30, 2011, and Series 2007C option rights, a total of 1,000,000 option rights, since May 2, 2012.
TRADING ON THE NASDAQ OMX HELSINKI
During the period January 1 - June 30, 2012, Revenio Group Corporation's turnover on NASDAQ OMX Helsinki totaled EUR 6.7 (9.1) million, representing 15.3 (22.6) million shares or 19.9 (29.4) percent of shares outstanding. The trading high was EUR 0.50 (0.62) and the low EUR 0.33 (0.30). At the end of the review period, the closing price was EUR 0.36 (0.53), and the average share price EUR 0.44 (0.40). Revenio Group Corporation's market value on June 30, 2012, was EUR 27.7 million (EUR 40.7 million).
ANNUAL GENERAL MEETING AND BOARD AUTHORIZATIONS IN EFFECT
The Annual General Meeting held on March 28, 2012 approved the company's financial statements and discharged the members of the Board of Directors and the President and CEO from liability for the financial year January 1 - December 31, 2011.
The AGM re-selected the following persons as members of the Board of Directors: Timo Mänty, Pekka Tammela, Rolf Fryckman, Julia Ormio and Matti Hyytiäinen. The AGM decided that the Chairman of the Board should be entitled to an annual emolument of EUR 60,000 and the other Board members to an annual emolument of EUR 36,000, with the exception that any member who holds a stake of at least five percent in Revenio Group Corporation, either directly or through a company in which he or she has a minimum holding of 50%, should not be entitled to a separate emolument. In total, 40% of Board members' emoluments will be settled in the form of shares in the company, while 60% will consist of monetary payment.
The AGM re-elected PricewaterhouseCoopers Oy, Authorized Public Accountants, as the company's auditors with Juha Tuomala, Authorized Public Accountant, acting as the principal auditor. The AGM decided to compensate the auditors upon the presentation of an approved invoice.
The AGM decided to accept the Board's proposal on profit distribution, according to which the profit for the financial period, EUR 2,056,691.01, will be added to retained earnings, and a dividend of EUR 0.02 per share will be paid, totaling EUR 1,531,342.42.
The AGM rescinded its earlier authorization to buy back 7,683,973 of the company's own shares and authorized the Board to make the decision to buy back a maximum of 7,688,973 of the company's own shares, in one or more installments, using the company's unrestricted equity, in which case any buyback will reduce the amount of company distributable earnings.
The AGM decided to rescind the Board's valid unexercised share-issue authorizations. The AGM authorized the Board of Directors to decide to issue a maximum of 30,000,000 shares or to grant special rights (including stock options) entitling to shares, as referred to in Section 1 of Chapter 10 of the Limited Liability Companies Act, in one or several tranches. This authorization was granted to be used to finance and implement any prospective corporate acquisitions or other transactions, to implement the company's share-based incentive plans, or for other purposes determined by the Board. It was decided that the authorization also grants the Board the right to decide on all terms and conditions governing said share issue and the granting of special rights, including the subscribers or the grantees of said special rights and the payable consideration. Moreover, the authorization also includes the right to waive shareholders' pre-emptive subscription rights, thus enabling private placement of shares. The Board's authorization covers both the issue of new shares and the transfer of any treasury shares possibly held by the Company. This authorization will be valid until April 30, 2013.
BOARD OF DIRECTORS AND AUDITORS
Since March 28, 2012, Revenio Group Corporation's Board of Directors has included Timo Mänty, M.Econ, Managing Director of Onninen Oy (Chairman of the Board), Pekka Tammela, M.Econ, Authorized Public Accountant, partner in Pajamaa Partners Oy, Rolf Fryckman, optician, Chairman of the Board of Eyemaker's Finland Oy, Julia Ormio, Senior Legal Counsel at Foster Wheeler Energy Oy, and Matti Hyytiäinen, M.Econ, Managing Director of PKC Group Oyj.
PricewaterhouseCoopers Oy, Authorized Public Accountants, serves as the company's auditor, with Juha Tuomala, Authorized Public Accountant, as the principal auditor.
MAJOR BUSINESS RISKS AND UNCERTAINTIES
The Group's major business risks and uncertainties are presented in its financial statements bulletin of February 16, 2012. No changes in said risks have occurred since the bulletin's release.
MAJOR EVENTS AFTER THE PERIOD
There have been no major events since the period ended.
OUTLOOK FOR 2012
Net sales and operating profit for 2012 are forecast to fall in comparison to 2011 figures due to developments at the Systems segment. Operating profit excluding non-recurring items is expected to remain clearly positive.
STATEMENT OF ACCOUNTING POLICIES
THIS INTERIM REPORT HAS BEEN PREPARED IN ACCORDANCE WITH THE IAS 34 STANDARD.
The figures are unaudited.
| GROUP KEY FIGURES AND RATIOS (MEUR) | 1-6/2012 | 1-6/2011 | 1-12/2011 | |
| Net sales, continuing operations | 14.0 | 16.3 | 33.3 | |
| Ebitda, continuing operations | 0.2 | 2.5 | 4.2 | |
| Ebitda-%, continuing operations | 1.8 | 15.4 | 12.5 | |
| Operating profit excluding non-recurring items | 1.1 | 2.1 | 3.4 | |
| Operating profit-% excluding non-recurring items | 7.9 | 13.1 | 10.3 | |
| Operating profit, continuing operations | -0.1 | 2.1 | 3.4 | |
| Operating profit-%, continuing operations | -0.9 | 13.1 | 10.3 | |
| Pre-tax profit, continuing operations | -0.3 | 2.0 | 3.1 | |
| Pre-tax profit-%, continuing operations | -2.3 | 12.3 | 9.2 | |
| Net profit from discontinued operations | -0.3 | 0.1 | 1.7 | |
| Net profit, continuing operations | -0.3 | 1.4 | 2.2 | |
| Net profit-%, continuing operations | -2.0 | 8.9 | 6.6 | |
| Gross capital expenditure | 0.2 | 0.3 | 0.7 | |
| Gross capital expenditure-% | 1.2 | 1.8 | 2.1 | |
| R&D costs | 0.1 | 0.2 | 0.4 | |
| R&D costs-% from net sales | 1.0 | 1.2 | 1.1 | |
| Gearing-% | -1.9 | 1.9 | -17.3 | |
| Equity ratio-% | 61.6 | 61.2 | 66.6 | |
| Return on investment-% (ROI ) | -3.8 | 27.2 | 20.2 | |
| Return on equity-% (ROE) | -1.9 | 22.0 | 14.1 | |
| Undiluted earnings per share, EUR, continuing operations | -0.004 | 0.019 | 0.028 | |
| Diluted Earnings per share, EUR, continuing operations | -0.004 | 0.019 | 0.028 | |
| Undiluted earnings per share, EUR, discontinued operations | -0.004 | 0.002 | 0.023 | |
| Diluted Earnings per share, EUR, discontinued operations | -0.004 | 0.002 | 0.022 | |
| Equity per share, EUR | 0.19 | 0.19 | 0.021 | |
| Average no. of employees, continuing operations | 254 | 252 | 248 | |
| Cash flow from operating activities | -0.8 | 2.1 | 4.2 | |
| Cash flow from investing activities | 0.0 | -0.2 | 1.1 | |
| Net cash used in financing activities | 0.4 | -2.1 | -3.0 | |
| Total cash flow | -0.4 | -0.2 | 2.4 |
| CONSOLIDATED COMPREHENSIVE | |||||
| INCOME STATEMENT (MEUR) | 1-6/2012 | 1-6/2011 | 1-12/2011 | ||
| NET SALES | 14.0 | 16.3 | 33.3 | ||
| Other operating income | 0.1 | 0.0 | 0.1 | ||
| Materials and services | -4.7 | -6.1 | -13.4 | ||
| Employee benefits | -5.7 | -5.2 | -10.5 | ||
| Depreciation/amortization | -0.4 | -0.4 | -0.7 | ||
| Other operating expenses | -3.4 | -2.5 | -5.4 | ||
| OPERATING PROFIT | -0.1 | 2.1 | 3.4 | ||
| Share of associates' results | 0.0 | 0.0 | 0.0 | ||
| Financial expenses (net) | -0.2 | -0.1 | -0.4 | ||
| PRE-TAX PROFIT | -0.3 | 2.0 | 3.1 | ||
| Income tax expense | 0.0 | -0.6 | -0.9 | ||
| Net profit from continuing operations | -0.3 | 1.4 | 2.2 | ||
| Net profit from discontinued operations | -0.3 | 0.1 | 1.7 | ||
| NET PROFIT | -0.6 | 1.6 | 3.9 | ||
| Other comprehensive income items | 0.0 | 0.0 | 0.0 | ||
| Income tax expense for comprehensive income | 0.0 | 0.0 | 0.0 | ||
| Other comprehensive income items | |||||
| after taxes | 0.0 | 0.0 | 0.0 | ||
| TOTAL COMPREHENSIVE INCOME | -0.6 | 1.6 | 3.9 | ||
| Net profit attributable to: | |||||
| Parent company shareholders | -0.6 | 1.6 | 3.9 | ||
| Total comprehensive income attributable to: | |||||
| Parent company shareholders | -0.6 | 1.6 | 3.9 | ||
| Earnings per share, undiluted,EUR, continuing operations | -0.004 | 0.018 | 0.028 | ||
| Earnings per share, diluted,EUR, continuing operations | -0.004 | 0.018 | 0.028 | ||
| Earnings per share, undiluted,EUR, discontinued operations | -0.004 | 0.002 | 0.023 | ||
| Earnings per share, diluted,EUR, discontinued operations | -0.004 | 0.002 | 0.022 |
| CONSOLIDATED COMPREHENSIVE | ||||
| INCOME STATEMENT (MEUR) | 4-6/2012 | 4-6/2011 | ||
| NET SALES | 6.3 | 8.5 | ||
| Other operating income | 0.1 | 0.0 | ||
| Materials and services | -2.1 | -3.3 | ||
| Employee benefits | -2.7 | -2.5 | ||
| Depreciation/amortization | -0.2 | -0.2 | ||
| Other operating expenses | -1.8 | -1.3 | ||
| OPERATING PROFIT | -0.5 | 1.2 | ||
| Share of associates' results | 0.0 | 0.0 | ||
| Financial expenses (net) | -0.1 | 0.0 | ||
| PRE-TAX PROFIT | -0.6 | 1.1 | ||
| Income tax expense | 0.1 | -0.3 | ||
| Net profit from continuing operations | -0.5 | 0.8 | ||
| Net profit from discontinued operations | -0.3 | 0.1 | ||
| NET PROFIT | -0.8 | 0.9 | ||
| Other comprehensive income items | 0.0 | 0.0 | ||
| Income tax expense for comprehensive income | 0.0 | 0.0 | ||
| Other comprehensive income items | ||||
| after taxes | 0.0 | 0.0 | ||
| TOTAL COMPREHENSIVE INCOME | -0.8 | 0.9 | ||
| Net profit attributable to: | ||||
| Parent company shareholders | -0.8 | 0.9 | ||
| Total comprehensive income attributable to: | ||||
| Parent company shareholders | -0.8 | 0.9 | ||
| CONSOLIDATED BALANCE SHEET (MEUR) | 30 Jun 2012 | 30 Jun 2012 | 31 Dec 2011 | ||
| ASSETS | |||||
| NON-CURRENT ASSETS | |||||
| Property. plant and equipment | 1.7 | 1.5 | 1.7 | ||
| Goodwill | 8.1 | 8.2 | 8.1 | ||
| Intangible assets | 0.8 | 1.2 | 1.0 | ||
| Shares in associates | 0.0 | 0.4 | 0.3 | ||
| Deferred tax assets | 1.8 | 2.3 | 1.8 | ||
| TOTAL NON-CURRENT ASSETS | 12.5 | 13.6 | 13.0 | ||
| CURRENT ASSETS | |||||
| Inventories | 1.3 | 1.1 | 1.2 | ||
| Trade and other receivables | 5.8 | 7.3 | 6.2 | ||
| Cash and cash equivalents | 4.0 | 1.9 | 4.4 | ||
| TOTAL CURRENT ASSETS | 11.1 | 10.3 | 11.8 | ||
| Long-term assets held for sale | 0.0 | 1.3 | 0.0 | ||
| TOTAL ASSETS | 23.7 | 25.2 | 24.8 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| SHAREHOLDERS' EQUITY | |||||
| Share capital | 5.3 | 5.3 | 5.3 | ||
| Share premium | 2.4 | 2.4 | 2.4 | ||
| Fair value reserve | 0.3 | 0.3 | 0.3 | ||
| Invested unrestricted capital reserve | 7.0 | 7.0 | 7.0 | ||
| Retained earnings/loss | -0.7 | -0.5 | 1.4 | ||
| TOTAL EQUITY. attributable to holders | |||||
| of parent company equity | 14.4 | 14.6 | 16.4 | ||
| TOTAL SHAREHOLDERS' EQUITY | 14.4 | 14.6 | 16.4 | ||
| LIABILITIES | |||||
| NON-CURRENT LIABILITIES | |||||
| Deferred tax liabilities | 0.2 | 0.4 | 0.3 | ||
| Provisions | 0.2 | 0.1 | 0.2 | ||
| Financial liabilities | 2.8 | 0.9 | 0.5 | ||
| TOTAL LONG-TERM LIABILITIES | 3.2 | 1.4 | 0.9 | ||
| CURRENT LIABILITIES | |||||
| Advance payments | 0.4 | 1.3 | 0.0 | ||
| Trade and other payables | 4.7 | 5.8 | 6.3 | ||
| Financial liabilities | 1.0 | 1.3 | 1.1 | ||
| TOTAL SHORT-TERM LIABILITIES | 6.1 | 8.4 | 7.4 | ||
| TOTAL LIABILITIES | 9.3 | 9.8 | 8.3 | ||
| Long-term liabilities held for sale | 0.0 | 0.8 | 0.0 | ||
| TOTAL LIABILITIES AND | |||||
| SHAREHOLDERS' EQUITY | 23.7 | 25.2 | 24.8 |
| CONSOLIDATED STATEMENT OF CHANGE IN EQUITY (MEUR) | |||||
| Share | Share | Other | Retained | Total | |
| capital | Premium | Reserves | Earnings | Equity | |
| Balance 1 Jan 2012 | 5.3 | 2.4 | 7.3 | 1.3 | 16.4 |
| Dividend distribution | 0.0 | 0.0 | 0.0 | -1.5 | -1.5 |
| Options expense | |||||
| adjustment | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 |
| Net profit | 0.0 | 0.0 | 0.0 | -0.6 | -0.6 |
| Balance 30 Jun 2012 | 5.3 | 2.4 | 7.3 | -0.7 | 14.4 |
| Share | Share | Other | Retained | Total | |
| capital | Premium | Reserves | Earnings | Equity | |
| Balance 1 Jan 2011 | 5.3 | 2.4 | 7.3 | -0.6 | 14.5 |
| Dividend distribution | 0.0 | 0.0 | 0.0 | -1.5 | -1.5 |
| Options expense | |||||
| adjustment | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Net profit | 0.0 | 0.0 | 0.0 | 1.6 | 1.6 |
| Balance 31 Mar 2011 | 5.3 | 2.4 | 7.3 | -0.5 | 14.6 |
| CONSOLIDATED CASH FLOW STATEMENT (MEUR) | 1-6/2012 | 1-6/2011 | 1-12/2011 | ||
| Net profit | -0.6 | 1.6 | 3.9 | ||
| Adjustments to net profit | 0.5 | 1.1 | 1.9 | ||
| Change in working capital | -0.7 | -0.5 | -1.6 | ||
| Interest paid | 0.0 | -0.1 | 0.0 | ||
| Interest received | 0.0 | 0.0 | 0.0 | ||
| CASH FLOW FROM OPERATING ACTIVITIES | -0.8 | 2.1 | 4.2 | ||
| Sales of subsidiaries (net) | 0.0 | 0.0 | 1.7 | ||
| Sales of associates' shares | 0.2 | 0.0 | 0.0 | ||
| Purchase of PPE | -0.2 | -0.2 | -0.5 | ||
| Purchase of Intangible assets | 0.0 | 0.0 | 0.0 | ||
| NET CASH USED IN INVESTING ACTIVITIES | 0.0 | -0.2 | 1.1 | ||
| Purchase of own shares | 0.0 | 0.0 | -0.2 | ||
| Paid dividends | -1.5 | -1.5 | -1.5 | ||
| Repayments of long-term borrowings | -1.0 | -0.6 | -1.2 | ||
| Long-term loans received | 3.0 | 0.0 | 0.0 | ||
| Finance lease principal payment | -0.1 | 0.0 | -0.1 | ||
| NET CASH USED IN FINANCING ACTIVITIES | 0.4 | -2.1 | -3.0 | ||
| Net change in cash and equivalents | -0.4 | -0.2 | 2.4 | ||
| Cash and equivalents. period-start | 4.4 | 2.1 | 2.1 | ||
| Cash and equivalents. period-end | 4.0 | 1.9 | 4.4 |
| NET SALES AND OPERATING PROFIT BY QUARTER (MEUR) | ||||||
| Q2/2012 | Q1/2012 | Q4/2011 | Q3/2011 | Q2/2011 | Q1/2011 | |
| Net sales | 6.3 | 7.7 | 8.8 | 8.2 | 8.5 | 7.8 |
| Oper. Profit | -0.5 | 0.4 | 0.0 | 1.3 | 1.2 | 1.0 |
| Oper. profit.-% | -8.4 | 5.1 | 0.3 | 15.8 | 13.8 | 11.7 |
| MAIN SHAREHOLDERS 30 June 2012 | ||
| No. of shares | % | |
| 1. Merivirta Jyri | 14,400,000 | 18.7 |
| 2. Eyemakers' Finland Oy | 7,817,214 | 10.2 |
| 3. Etera | 3,500,000 | 4.6 |
| 4. Sijoitusrahasto Evli Suomi Osake | 3,073,768 | 4.0 |
| 5. Alpisalo Mia | 2,948,153 | 3.8 |
| 6. Kiesvaara Tuomo | 1,074,692 | 1.4 |
| 7. AJP Holding Oy | 1,000,000 | 1.3 |
| 8. Fennia | 898,224 | 1.2 |
| 9. Salovaara Olli-Pekka | 828,945 | 1.1 |
| 10. Longhorn Capital Oy | 660,722 | 0.9 |
Revenio Group Corporation
BOARD OF DIRECTORS
For further information, please contact:
Olli-Pekka Salovaara, President and CEO, mobile +358 (0)40 5675520
olli-pekka.salovaara@revenio.fi
http://www.revenio.fi
DISTRIBUTION:
NASDAQ OMX Helsinki
Financial Supervisory Authority (FIN-FSA)
Key media
www.revenio.fi
Revenio Group Corporation, listed on the NASDAQ OMX Helsinki, is the parent company of the Finnish conglomerate Revenio Group. Revenio Group Corporation's subsidiaries share a focus on Finnish specialist expertise and export-based operations.
Revenio Group consists of six independent subsidiaries in five business segments. These subsidiaries are Done Logistics Oy, Done Software Solutions Oy, Icare Finland Oy, Boomeranger Boats Oy, FLS Finland Oy and Midas Touch Oy.