There has been a correction to the Financial Statement Bulletin of Biohit Group
published on 15 Feb 2008 at 9:30 am. In the consolidated income statement table
for the last quarter the months in the table header have been corrected to
Oct.-Dec. This has no impact on the other content of the table.
The corrected bulletin:
The Biohit Group's net sales for the financial year totalled EUR 32.8 million
(EUR 31.4 million in Jan-Dec/2006). The operating loss for the financial year
amounted to EUR 0.5 million (operating loss EUR 0.1 million). The loss for the
period was EUR 1.5 million (loss EUR 0.8 million). Trends in sales of liquid
handling and diagnostics products continued to be weaker than expected in the
Asian market, which in turn weakened the result.
NET SALES
The Biohit Group's net sales for the financial year totalled EUR 32.8 million
(EUR 31.4 million), representing a rise of 4% on 2006.
Sales and maintenance of liquid handling products once again accounted for 95%
of net sales. The net sales of the liquid handling business amounted to EUR 31.1
million (EUR 29.5 million) and the net sales of the diagnostics business to EUR
1.7 million (EUR 1.9 million).
Full-year net sales trends did not meet the company's expectations. Although
strong sales growth continued in Russia throughout 2007, establishing
distribution networks in China and Japan has progressed slower than expected.
The exceptionally strong euro has also had an adverse effect on the Biohit
Group's net sales.
RESULT
The operating loss was EUR 0.5 million (operating loss EUR 0.1 million). The
loss for the financial year totalled EUR 1.5 million (loss EUR 0.8 million).
The operating profit of the liquid handling business amounted to EUR 2.5 million
(operating profit EUR 2.2 million), while the operating loss of the diagnostics
business totalled EUR 2.9 million (operating loss EUR 2.4 million).
Earnings trends have been adversely affected by weaker than expected sales
growth, especially in the Asian market. The company has revised its procedures
for determining the obsolescence of inventories, particularly with respect to
material and component inventories. This has weakened the company's result for
the financial year by about EUR 0.5 million compared to 2006.
The result was further impacted by increased personnel expenses and financing
costs. The company's result for 2007 also contains EUR 0.4 million (EUR 0.4
million) in currency exchange losses.
During the last quarter of 2007, the company has conducted evaluations for each
of the Group's companies on the possibility of utilising confirmed losses in the
coming years. Deferred tax assets have only been entered for those confirmed
losses that the company's management considers can be utilised. Tax assets of
EUR 0.3 million on confirmed tax losses were recognised as expenses in the third
quarter of 2007.
BALANCE SHEET
On 31 December 2007, the balance sheet total was EUR 27.3 million (EUR 27.3
million) and the equity ratio was 44% (49%). The fall in the equity ratio was
primarily due to an increase in non-current interest-bearing liabilities and the
loss for the reporting period.
LIQUIDITY
Cash flow from operating activities during the financial year was EUR 1.1
million (EUR 0.2 million). At the end of the financial year, the Group's liquid
assets totalled EUR 1.1 million (EUR 0.9 million). The company acquired EUR 2.5
million in new long-term financing in 2007. Current ratio was 2.3 (2.2).
RESEARCH AND DEVELOPMENT
Research and development expenditures amounted to EUR 2.0 million in 2007 (EUR
1.7 million), representing 6% (5%) of net sales. EUR 0.4 million (EUR 0.3
million) in development expenditure was capitalised during the financial year.
INVESTMENTS
Gross investments during the financial year totalled EUR 2.1 million (EUR 1.9
million). Investments were primarily for increasing production capacity and the
purchase of equipment used in the manufacture of liquid handling products in
Kajaani.
PERSONNEL
The average number of personnel during the financial year was 352 (310 in 2006,
295 in 2005). Of these, 178 (162 in 2006, 162 in 2005) were employed by the
parent company and 174 (148 in 2006, 133 in 2005) by subsidiaries.
MAIN EVENTS OF THE REPORTING PERIOD
Liquid handling business
Biohit's liquid handling business develops, manufactures and markets laboratory
equipment and accessories for the pharmaceutical, food and other industries.
Biohit's products are also used in research institutions, universities and
hospitals, and to complement the diagnostic test and analysis systems of many
global companies. The product range includes mechanical and electronic pipettes
as well as disposable tips (www.biohit.com/liquidhandling). In addition, the
company offers maintenance, calibration and training services related to these
products through its distributor network (www.biohit.com/liquidhandling,
www.pipettedoctor.com).
Except in the Asian markets, trends in the sales of the liquid handling business
during 2007 have been in line with expectations. The company continued to focus
on product development, OEM co-operation, expansion of the pipette maintenance
business, and developing cost-effective production processes and logistics.
The total market for liquid handling products has increased by about 5% on
average over the last few years. During the financial year just ended, Biohit
has succeeded in growing its sales of disposable tips in particular. The
maintenance business has also been experiencing growth.
In 2007, Biohit continued to develop its distribution network in order to
bolster the company's position in its main market areas. During the financial
year, Biohit and VWR International entered into an agreement concerning the
distribution of liquid handling products in Europe. VWR International is a
global sales, marketing and distribution organisation for laboratory products.
Biohit has been co-operating with the company in North America for more than ten
years.
This agreement with VWR further strengthens both Biohit's distribution network
in Europe and the company's position in key customer segments. The launch of
Biohit products through VWR has only just begun, and the companies have been
honing their scheduled country-specific launches during the fourth quarter of
2007. The favourable impact on net sales expected from this co-operation will
therefore only be felt in 2008. Biohit will continue to co-operate with both
local and multinational distributors, as these channels complement each other.
Growth in net sales of liquid handling products in the Asian market has been
slower than expected, especially in China and Japan. Reorganisation of the
distribution network in this market area has taken longer than originally
estimated. The goal of reorganisation in Japan has been to reduce the number of
steps in the distribution chain, thereby making product sales in Japan more
efficient. Efforts to build up a distribution network in China continued
throughout the financial year.
Biohit launched new mechanical liquid handling products during 2007. In addition
to an mLINE pipette for handling large volumes (1-10 millilitres), the company
also launched a brand new mechanical liquid handling product range - Proline
Plus - in the fourth quarter. The new, autoclavable pipette range, which
comprises 27 different pipettes, is primarily intended for emerging markets and
for certain segments in industrial nations. The Proline Plus product family
contains both adjustable single and multichannel pipettes and fixed-volume
single channel pipettes.
During 2007, Biohit focused its product development not only on pipettors and
pipettor tip ranges, but also on the further development of OEM products and
liquid handling equipment. The current trend in the industry segment is a shift
away from hand-held dispensers towards computer-controlled analysis systems and
pipetting equipment that makes use of robotics. As a result of international
co-operation during the financial year, Biohit has begun deliveries of
integratable rLINE robotic modules to manufacturers of these analysis systems.
As part of the GastroMate project, a new liquid handling platform has been
developed. This technology provides increased growth potential in the automation
segment and will further bolster Biohit's position as a major OEM liquid
handling supplier.
Diagnostics
Biohit's diagnostics business develops, manufactures and markets products and
analysis systems primarily for the diagnosis, screening and prevention of
diseases of the gastrointestinal tract. The product range includes the
GastroPanel and GastroView examinations (www.gastropanel.net,
www.gastroview.com) for primary health care; lactose intolerance and
Helicobacter pylori quick tests for specialised health care; and instruments and
analysis systems for laboratories (www.biohit.com/diagnostics). Additionally,
the company runs a service laboratory in Finland and in the UK
(www.biohit.com/palvelulaboratorio).
During the financial year, the diagnostics business continued its focus on
developing operations in line with the strategy.
Trends in the sales of the diagnostics business during 2007 have not met growth
expectations. The fall in sales is primarily due to a decline in instrument
sales (EUR 0.6 million in 2007, EUR 0.8 million in 2006). During the financial
year, Biohit has focused on higher-margin kit sales (at the same level as in
2006).
The sale and marketing of diagnostics products requires not only approvals from
the relevant authorities, but also profound expertise in local distribution.
During the financial year, Biohit has been systematically building up a
distribution network in China and other main market areas. However, business
development in the Asian market in particular has been slower than expected. In
China, one reason for this was slow progress in obtaining price approvals, which
must be applied for separately in each province. Although the tests included in
GastroPanel have already received both market authorisation from the SFDA
(China´s State Food and Drug Administration) and the scientific community's
general recommendation for use in examining symptoms of the upper
gastrointestinal tract, the tests must also receive price approvals from local
authorities.
The US Food and Drug Administration (FDA) application process for GastroPanel's
Pepsinogen I and II tests is progressing and clearance is expected during the
first half of 2008. This change to the previously estimated timetable is due to
the extension of studies related to the application. No other company has
previously received FDA approval for these tests, and therefore Biohit has had
to supplement its original application in the United States with two extensive
and time-consuming studies. These patient trials will compare the results of
Biohit's GastroPanel tests to the histology of several biopsies taken through
gastroscopy (a normal finding or atrophic gastritis).
During the financial year, Biohit's subsidiary in the UK began marketing and
selling the GastroView examination through the Assura Pharmacy chain
(www.gastroprofile.com). Biohit is also currently negotiating marketing of the
GastroView test with other pharmacy chains in the UK.
During the reporting period, Biohit also began trial marketing of its XyliCyst
chewing gum. Product sales haven't yet had any significant impact on the
company's net sales for 2007.
XyliCyst chewing gum eliminates the acetaldehyde that dissolves in saliva during
smoking. Research indicates that acetaldehyde is a major risk factor for cancers
of the upper gastrointestinal tract and that it may increase addiction to
tobacco products.
The GastroMate product development project launched in 2004 has progressed
during the financial year. However, the liquid handling technology used in the
GastroMate analyser has also opened up growth potential in the OEM business. The
company has therefore been focusing on taking full advantage of the business
opportunities provided by GastroMate's liquid handling technology. This has in
turn led to delays in the GastroMate project.
PLANS TO HIVE OFF THE DIAGNOSTICS BUSINESS
In January 2007, Biohit Oyj's Board of Directors decided to investigate the
possibility of hiving off the company's diagnostics business into a separate
limited company with its own equity funding in order to boost international
marketing and distribution.
The decision forms part of the company's new strategy, which aims to clarify the
differences and synergies between its business areas and derive the full benefit
from their strengths, as well as to boost the Group's business as a whole and
improve earnings.
The analysis is currently still ongoing.
ADMINISTRATION
The Annual General Meeting held on 23 April 2007 decided that the Board of
Directors should be comprised of six members. The AGM appointed Reijo
Luostarinen, Osmo Suovaniemi, Peter Tchernych, Mårten Wikström, Tero J.
Kauppinen and Peter B. Coggins as members of the Board.
The AGM appointed authorized public accountant PricewaterhouseCoopers Oy as
auditor.
Member of the Board Peter Tchernych resigned from his administrative duties in
October 2007 due to changes in his work situation.
ANNUAL GENERAL MEETING IN 2008
Biohit Oyj's Annual General Meeting will be held at Restaurant Pörssi, Helsinki,
on Monday 21 April 2008. A separate invitation will be sent later.
EQUITY TURNOVER AND PRICE DEVELOPMENT
Biohit Oyj's series B shares are listed on the Helsinki Stock Exchange in the
Small cap/Healthcare group.
--------------------------------------------------------------------------------
| BIOBV/OMX Helsinki | Jan.-Dec./2007 |
--------------------------------------------------------------------------------
| Number of shares (Series B) | 9,062,127 |
--------------------------------------------------------------------------------
| High, EUR | 3.29 |
--------------------------------------------------------------------------------
| Low, EUR | 1.51 |
--------------------------------------------------------------------------------
| Average, EUR | 2.42 |
--------------------------------------------------------------------------------
| Closing price, EUR | 1.57 |
--------------------------------------------------------------------------------
| Total turnover, EUR | 8,569,123 |
--------------------------------------------------------------------------------
| Total turnover, no. of shares | 3,436,277 |
--------------------------------------------------------------------------------
| Market capitalisation 31 Dec. 2007, EUR | 14,227,539 |
--------------------------------------------------------------------------------
LIQUIDITY PROVISION FOR BIOHIT OYJ'S SHARE
During the financial year, Biohit Oyj and Swedish company Remium AB signed a
market making agreement in accordance with the guidelines laid down by the
Helsinki Stock Exchange on 5 April 2004. Market making began on 1 June 2007 and
remains in force indefinitely with a one (1) month period of notice.
The contract aims to secure liquidity of the Biohit Oyj share and maintain a
narrow spread between the bids and offers on Biohit Oyj shares.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
Biohit has made large investments in the Asian market by building up a
distribution network in both China and Japan. Developing the distribution
network with the available resources has, however, proven slower than
anticipated. Therefore, there is a risk that the earnings targets for Biohit's
Asian units will not be met in full, which will also weaken the entire Group's
profitability. The company intends to minimise this risk by, for example,
developing the organisations of these units and bolstering preparations to
operate in these emerging markets.
The market penetration of Biohit's diagnostic products has taken longer than
expected. If sales of diagnostics products do not rise in line with
expectations, this will also weaken the profitability of the Group as a whole.
The failure of the diagnostics business to meet its growth expectations could
also lead to a EUR 2.5 million impairment of goodwill associated with the
GastroPanel examination. Sales growth in the United States has been hampered by
the fact that the Pepsinogen I and II tests of GastroPanel (Gastrin-17,
Helicobacter pylori antibodies, Pepsinogen I and II) have yet to obtain the
requisite FDA clearance. Biohit expects this approval to be granted during the
first half of 2008. Any delay in this process could weaken the product's sales
prospects and have an adverse impact on net sales trends throughout the
diagnostics business. The company intends to minimise this risk by working in
close co-operation with, for example, its US and Finnish scientific advisors and
by maintaining proactive contact with the FDA. Others measures to minimise this
risk include outlays to promote sales in markets outside the United States -
China, Russia, Italy and the UK in particular.
Currency exchange rate trends have also impacted on the company's profitability.
The strengthening euro has weakened the company's earnings during the year now
ended and this trend is forecast to continue in 2008. The company intends to
protect itself from this exchange rate risk with procurements in currencies
other than the euro.
The continued negative earnings trend has weakened the company's liquidity. If
the Group's profitability is weaker than expected, this could have an adverse
effect on liquidity. During the financial year, the company aimed to ensure
sufficient financing by launching an investigation into the feasibility of a
sale and lease back system at its Kajaani factory property. This analysis is
still ongoing and the results should be available during the first quarter of
2008, when any potential transaction would also be made.
Biohit is continuing its investigation into the possibility of hiving off the
diagnostics business. During 2007, the analysis focused primarily on Finnish
prospects. The spotlight will now shift to international partners. Spinning off
the diagnostics business into a separate company and bolstering its growth
potential with the aid of partners will significantly reduce the financing risks
associated with the company's business. (see Teaser11_PV_021107.pdf)
OUTLOOK FOR 2008
The increase in net sales of Biohit's liquid handling products is expected to
continue during 2008. Net sales growth in traditional liquid handling products
in Europe will, however, be more moderate than in other market areas. Good sales
growth is expected in North America, Russia and emerging markets, Asia in
particular. In addition to traditional liquid handling products, the company
will continue to focus on developing its tailor-made, that is, OEM, product
business. This is expected to have a favourable impact on the company's net
sales and profitability trends during 2008.
In 2008, net sales of diagnostics products are expected to increase in the
Chinese, Russian and European markets in particular. Sales growth in North
America is dependent on the duration of the FDA's approval process. If approval
is received on schedule, this will pave the way for increased sales of
diagnostics products in the North American market area.
Biohit's outlays on liquid handling products in the Asian market coupled with
its investments in boosting the sales growth of diagnostics products will
continue to burden the company's earnings in 2008. The operating result will be
dependent on the success of these strategic choices and the measures used to
implement them.
EVENTS AFTER THE CLOSE OF THE FINANCIAL YEAR
The codetermination negotiations launched in August 2007 ended on 15 January
2008. The company has, however, decided to not implement the planned lay-offs.
Towards the end of the financial year, Biohit scaled down other expenses and
investments. The number of personnel affected by the lay-off plan has also
reduced. The company intends to continue enhancing the Group's profitability by
boosting sales and marketing and whittling down expenses as much as possible.
THE BOARD OF DIRECTORS' PROPOSAL FOR THE DISPOSAL OF EARNINGS AND DISTRIBUTION
OF OTHER NON-RESTRICTED EQUITY
The Board of Directors proposes that no dividend be paid and that the loss for
the financial year be transferred to retained earnings.
CONSOLIDATED INCOME STATEMENT
--------------------------------------------------------------------------------
| | Jan.-Dec. | Jan.-Dec. | Change | Change |
| | 2007 | 2006 | | |
--------------------------------------------------------------------------------
| | MEUR | MEUR | MEUR | % |
--------------------------------------------------------------------------------
| Net sales | 32.8 | 31.4 | 1.3 | 4 |
--------------------------------------------------------------------------------
| Other operating income | 0.1 | 0.0 | 0.1 | 164 |
--------------------------------------------------------------------------------
| Change in inventories of | 0.3 | 0.9 | -0.7 | -73 |
| finished goods and work in | | | | |
| progress | | | | |
--------------------------------------------------------------------------------
| Materials and services | -7.0 | -7.4 | -0.4 | -6 |
--------------------------------------------------------------------------------
| Employee benefit expenses | -14.1 | -12.7 | 1.4 | 11 |
--------------------------------------------------------------------------------
| Depreciation | -1.8 | -1.8 | 0.0 | 2 |
--------------------------------------------------------------------------------
| Other operating expenses | -10.6 | -10.6 | 0.0 | 0 |
--------------------------------------------------------------------------------
| Operating result | -0.5 | -0.1 | -0.3 | -221 |
--------------------------------------------------------------------------------
| Financial income | 0.1 | 0.1 | -0.1 | -59 |
--------------------------------------------------------------------------------
| Financial expenses | -0.7 | -0.6 | 0.1 | 18 |
--------------------------------------------------------------------------------
| Result before taxes | -1.1 | -0.6 | -0.5 | -84 |
--------------------------------------------------------------------------------
| Income taxes | -0.4 | -0.2 | 0.2 | 66 |
--------------------------------------------------------------------------------
| Result for the period | -1.5 | -0.8 | -0.7 | -79 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings per share calculated from | Jan.-Dec./2007 | Jan.-Dec./2006 |
| earnings attributable to equity | MEUR | MEUR |
| holders of the parent company | | |
--------------------------------------------------------------------------------
| Earnings per share, undiluted*, EUR | -0.12 | -0.06 |
--------------------------------------------------------------------------------
*) The convertible bond is not dilutive in respect of earnings per share in the
financial years 2006 and 2007.
--------------------------------------------------------------------------------
| | Oct.-Dec. | Oct.-Dec. | Change | Change |
| | 2007 | 2006 | | |
--------------------------------------------------------------------------------
| | MEUR | MEUR | MEUR | % |
--------------------------------------------------------------------------------
| Net sales | 9.1 | 8.7 | 0.4 | 5 |
--------------------------------------------------------------------------------
| Other operating income | 0.0 | 0.0 | 0.0 | 212 |
--------------------------------------------------------------------------------
| Change in inventories of | -0.2 | 0.0 | -0.2 | -4,459 |
| finished goods and work in | | | | |
| progress | | | | |
--------------------------------------------------------------------------------
| Materials and services | -1.7 | -1.9 | -0.2 | -11 |
--------------------------------------------------------------------------------
| Employee benefit expenses | -3.8 | -3.5 | 0.3 | 9 |
--------------------------------------------------------------------------------
| Depreciation | -0.5 | -0.4 | 0.0 | 9 |
--------------------------------------------------------------------------------
| Other operating expenses | -2.8 | -3.0 | -0.3 | -9 |
--------------------------------------------------------------------------------
| Operating result | 0.2 | -0.1 | 0.4 | 308 |
--------------------------------------------------------------------------------
| Financial income | 0.0 | 0.0 | 0.0 | -62 |
--------------------------------------------------------------------------------
| Financial expenses | -0.2 | -0.1 | 0.1 | 35 |
--------------------------------------------------------------------------------
| Result before taxes | 0.0 | -0.2 | 0.3 | 120 |
--------------------------------------------------------------------------------
| Income taxes | -0.5 | 0.1 | 0.6 | 578 |
--------------------------------------------------------------------------------
| Result for the period | -0.4 | -0.1 | -0.3 | -176 |
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
--------------------------------------------------------------------------------
| | 31 Dec. 07 | 31 Dec. 2006 |
--------------------------------------------------------------------------------
| | MEUR | % | MEUR | % |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | | | |
--------------------------------------------------------------------------------
| Goodwill | 2.6 | 10 | 2.6 | 10 |
--------------------------------------------------------------------------------
| Intangible assets | 1.5 | 5 | 1.6 | 6 |
--------------------------------------------------------------------------------
| Tangible assets | 7.2 | 26 | 6.9 | 25 |
--------------------------------------------------------------------------------
| Receivables | 0.0 | 0 | 0.0 | 0 |
--------------------------------------------------------------------------------
| Deferred tax assets | 2.0 | 7 | 2.1 | 8 |
--------------------------------------------------------------------------------
| Total non-current assets | 13.3 | 49 | 13.2 | 48 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| CURRENT ASSETS | | | | |
--------------------------------------------------------------------------------
| Inventories | 5.6 | 21 | 5.8 | 21 |
--------------------------------------------------------------------------------
| Trade and other receivables | 6.4 | 23 | 6.7 | 24 |
--------------------------------------------------------------------------------
| Financial assets recognised at fair | 0.9 | 3 | 0.9 | 3 |
| value through profit or loss | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 1.1 | 4 | 0.9 | 3 |
--------------------------------------------------------------------------------
| Total current assets | 14.0 | 51 | 14.1 | 52 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 27.3 | 100 | 27.3 | 100 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Equity attributable to the equity | | | | |
| holders of the parent company | | | | |
--------------------------------------------------------------------------------
| Share capital | 2.2 | 8 | 2.2 | 8 |
--------------------------------------------------------------------------------
| Share premium fund | 0.2 | 1 | 0.2 | 1 |
--------------------------------------------------------------------------------
| Fund for investments of | 12.2 | 45 | 12.2 | 45 |
| non-restricted equity | | | | |
--------------------------------------------------------------------------------
| Retained earnings | -2.8 | -10 | -1.2 | -4 |
--------------------------------------------------------------------------------
| Total equity | 11.8 | 43 | 13.4 | 49 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 0.1 | 0 | 0.1 | 0 |
--------------------------------------------------------------------------------
| Pension obligations | 0.1 | 0 | 0.0 | 0 |
--------------------------------------------------------------------------------
| Total interest-bearing liabilities | 8.3 | 30 | 6.3 | 23 |
--------------------------------------------------------------------------------
| Other liabilities | 0.9 | 3 | 1.0 | 4 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 9.3 | 34 | 7.4 | 27 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Trade payables | 1.4 | 5 | 1.8 | 7 |
--------------------------------------------------------------------------------
| Provisions | 0.0 | 0 | 0.1 | 0 |
--------------------------------------------------------------------------------
| Total interest-bearing liabilities | 0.9 | 3 | 1.4 | 5 |
--------------------------------------------------------------------------------
| Other liabilities | 3.9 | 14 | 3.2 | 12 |
--------------------------------------------------------------------------------
| Total current liabilities | 6.2 | 23 | 6.5 | 24 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Total liabilities | 15.5 | 57 | 13.9 | 51 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 27.3 | 100 | 27.3 | 100 |
--------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW STATEMENT
--------------------------------------------------------------------------------
| | Jan.-Dec./2007 | Jan.-Dec./2006 |
--------------------------------------------------------------------------------
| | MEUR | MEUR |
--------------------------------------------------------------------------------
| CASH FLOW FROM OPERATING | | |
| ACTIVITIES | | |
--------------------------------------------------------------------------------
| Result before taxes | -1.1 | -0.6 |
--------------------------------------------------------------------------------
| Adjustments | 2.4 | 2.2 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| CHANGE IN WORKING CAPITAL | 0.6 | -0.9 |
--------------------------------------------------------------------------------
| Interest and other financial items | -0.5 | -0.4 |
| paid | | |
--------------------------------------------------------------------------------
| Interest received | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Income taxes paid | -0.4 | -0.2 |
--------------------------------------------------------------------------------
| Net cash flow from operating | 1.1 | 0.2 |
| activities | | |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM INVESTING | | |
| ACTIVITIES | | |
--------------------------------------------------------------------------------
| Investments in tangible and | -2.1 | -1.8 |
| intangible assets | | |
--------------------------------------------------------------------------------
| Investments and capital gains from | -0.1 | 2.6 |
| investments in funds and deposits, | | |
| net | | |
--------------------------------------------------------------------------------
| Net cash flow from investments | -2.2 | 0.8 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| CASH FLOW FROM FINANCING | | |
| ACTIVITIES | | |
--------------------------------------------------------------------------------
| Proceeds from loans | 2.5 | 0.1 |
--------------------------------------------------------------------------------
| Repayment of loans | -1.1 | -1.0 |
--------------------------------------------------------------------------------
| Net cash flow from financing | 1.4 | -0.9 |
| activities | | |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| Increase (+) / decrease (-) in | 0.3 | 0.1 |
| cash and cash equivalents | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 0.9 | 0.7 |
| beginning of period | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end | 1.1 | 0.9 |
| of period | | |
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN EQUITY
Consolidated statement of changes in equity on 31 December 2007
--------------------------------------------------------------------------------
| MEUR | Share | Share | Trans- | Fund for | Earnings | Equity |
| | capital | premium | lation |investments | | |
| | | fund | diff. | of non- | | |
| | | | | restricted | | |
| | | | | equity | | |
| | | | | | | |
--------------------------------------------------------------------------------
| Equity on 1 | 2.2 | 0.2 | 0.1 | 12.2 | -1.3 | 13.4 |
| Jan. 2007 | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | -0.1 | | | -0.1 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | -1.5 | -1.5 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| Equity on 31 | 2.2 | 0.2 | 0.1 | 12.2 | -2.8 | 11.8 |
| Dec. 2007 | | | | | | |
--------------------------------------------------------------------------------
Consolidated statement of changes in equity on 31 December 2006
--------------------------------------------------------------------------------
| MEUR | Share | Share | Trans- | Fund for | Earnings | Equity |
| | capital | premium | lation |investments | | |
| | | fund | diff. | of non- | | |
| | | | | restricted | | |
| | | | | equity | | |
| | | | | | | |
| | | | | | | |
--------------------------------------------------------------------------------
| Equity on 1 | 2.2 | 13.0 | 0.1 | 0.0 | -1.1 | 14.3 |
| Jan. 2006 | | | | | | |
--------------------------------------------------------------------------------
| Transfer from | | -12.8 | | 12.2 | 0.6 | 0.0 |
| share premium | | | | | | |
| fund | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | 0.0 | | | 0.0 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | -0.8 | -0.8 |
| the period | | | | | | |
--------------------------------------------------------------------------------
| Equity on 31 | 2.2 | 0.2 | 0.1 | 12.2 | -1.3 | 13.4 |
| Dec. 2006 | | | | | | |
--------------------------------------------------------------------------------
NOTES
ACCOUNTING PRINCIPLES
This financial statement bulletin has been prepared in accordance with IFRS
(International Financial Reporting Standards), using IFRS recognition and
measurement principles, but not in accordance with all of the requirements of
the IAS 34 standard.
Biohit Oyj has applied the same accounting principles in preparing this
financial statement bulletin as for its financial statements of 2006. New
financial statement standards, amendments and interpretations were published and
became effective as of 1 January 2007. They are presented in detail in the
financial statements for 2006. Their adoption did not cause any changes in
financial statement accounting policy that would have required a retroactive
change in the comparison information presented.
Biohit has applied the following standards, amendments and interpretations to
published standards that are mandatory in 2007:
IFRS 7, ‘Financial instruments: Disclosures', and the complementary amendment to
IAS 1, ‘Presentation of financial statements - Capital disclosures', introduces
new disclosures relating to financial instruments. It requires the disclosure of
qualitative and quantitative information about exposure to risks arising from
financial instruments, including specified minimum disclosures about credit
risk, liquidity risk and market risk, including sensitivity analysis to market
risk. The amendment to IAS 1 introduces disclosures about the level of an
entity's capital and how it manages capital.
All the figures in the financial statement bulletin have been rounded up or
down, due to which the sums of figures may deviate from the sum total presented.
The figures in this financial statement bulletin have not been audited.
FIGURES BY BUSINESS SEGMENT
Group net sales by business segment
--------------------------------------------------------------------------------
| | Jan.-Dec. | Jan.-Dec. | Change | Change |
| | 2007 | 2006 | | |
--------------------------------------------------------------------------------
| | MEUR | MEUR | MEUR | % |
--------------------------------------------------------------------------------
| Liquid handling | 31.1 | 29.5 | 1.5 | 5 |
--------------------------------------------------------------------------------
| Diagnostics | 1.7 | 1.9 | -0.2 | -11 |
--------------------------------------------------------------------------------
Group operating result by business segment
--------------------------------------------------------------------------------
| | Jan.-Dec. | Jan.-Dec. | Change | Change |
| | 2007 | 2006 | | |
--------------------------------------------------------------------------------
| | MEUR | MEUR | MEUR | % |
--------------------------------------------------------------------------------
| Liquid handling | 2.5 | 2.2 | 0.3 | 11 |
--------------------------------------------------------------------------------
| Diagnostics | -2.9 | -2.4 | -0.6 | -24 |
--------------------------------------------------------------------------------
INVESTMENTS AND PERSONNEL
--------------------------------------------------------------------------------
| | 31 Dec. 2007 | 31 Dec. 2006 | Change | Change-% |
--------------------------------------------------------------------------------
| Investments, gross, | 2.1 | 1.9 | 0.2 | 8 |
| MEUR | | | | |
--------------------------------------------------------------------------------
| % of net sales | 6 | 6 | | |
--------------------------------------------------------------------------------
| Average number of | 352 | 310 | 42 | 14 |
| employees | | | | |
--------------------------------------------------------------------------------
RELATED PARTY TRANSACTIONS
There have been no noticeable changes in related party transactions in 2007.
COLLATERAL, CONTINGENT LIABILITIES AND OTHER COMMITMENTS
--------------------------------------------------------------------------------
| Liabilities for which mortgages have | 31 Dec. 2007 | 31 Dec. 2006 |
| been lodged as collateral | | |
--------------------------------------------------------------------------------
| | MEUR | MEUR |
--------------------------------------------------------------------------------
| Loans from financial institutions | 3.3 | 1.7 |
--------------------------------------------------------------------------------
| Corporate mortgages | 1.6 | 1.6 |
--------------------------------------------------------------------------------
| Mortgages on real estate | 2.0 | 1.4 |
--------------------------------------------------------------------------------
| Other long-term liabilities | 0.3 | 0.4 |
--------------------------------------------------------------------------------
| Mortgages on real estate | 0.8 | 0.8 |
--------------------------------------------------------------------------------
| Lease agreements | 6.1 | 4.5 |
--------------------------------------------------------------------------------
| Corporate mortgages | 0.2 | 0.2 |
--------------------------------------------------------------------------------
KEY RATIOS
--------------------------------------------------------------------------------
| | 31 Dec. 2007 | 31 Dec. 2006 |
--------------------------------------------------------------------------------
| Equity ratio, % | 43.6 | 49.4 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | -0.12 | -0.06 |
--------------------------------------------------------------------------------
| Shareholder's equity per share, EUR | 0.92 | 1.04 |
--------------------------------------------------------------------------------
| Average number of shares for the | 12,937,627 | 12,937,627 |
| period | | |
--------------------------------------------------------------------------------
| Number of shares at the end of | 12,937,627 | 12,937,627 |
| period | | |
--------------------------------------------------------------------------------
Helsinki, 15 February 2008
Board of Directors of Biohit Oyj
Further information:
Osmo Suovaniemi, M.D., Ph.D., Professor
President & CEO
Tel: +358-9-773 861
Mobile: +358-40-745 5605
Email: osmo.suovaniemi@biohit.com
Distribution:
Helsinki Stock Exchange
Financial Supervisory Authority
Principal Media
http://www.biohit.com
CORRECTION: FINANCIAL STATEMENT BULLETIN OF THE BIOHIT GROUP 1 JANUARY - 31 DECEMBER 2007
| Source: Biohit Oyj