Overview
Highlights of 2007:
- New quantity of orders received increased by 51.0 % compared to previous year.
New orders received in 2007 totaled EUR 208.4 million (EUR 138.0 million).
The amount of new orders received during the fourth quarter of the
year totaled EUR 64.9 million (EUR 43.5 million).
- Group order backlog at the end of 2007 was 116.7 % higher than at the turn of
the previous year and totaled EUR 97.3 million (EUR 44.9 million).
- Net sales was EUR 158.3 million (EUR 122.8 million), showing an increase of
28.9 %. The net sales of the fourth quarter totaled EUR 49.3 million (EUR 40.4
million in the corresponding period of the previous year).
- Operating profit improved by 46.3 % and totaled EUR 13.1 million (EUR 8.9
million).
- Result before tax totaled EUR 11.8 million (EUR 7.0 million). Result for the
fourth quarter before tax totaled EUR 4.9 million (EUR 4.4 million).
- Net Cash from operating activities totaled EUR -2.4 million (EUR 14.9
million).
- Earnings per share totaled EUR 1.01 (EUR 0.53).
- The Board of Directors proposes a dividend of 0.60 (0.30) per share.
Mr. Toivo Matti Karppanen, President & CEO,
The 2007 fiscal year was very good, the best in the company's history. All key
figures suggest that our strategy is working. By focusing on filter business,
introducing a new expanded product portfolio and maintaining long-term customer
relationships we have produced a good result. Larox's net sales increased by
28.9 % over the previous year to EUR 158.3 million. Our net sales were also
increased profitably: Larox's operating profit for the 2007 fiscal year
increased by 46.3 % to EUR 13.1 million. Return on shareholders' equity
increased to 31.9 percent, and earnings per share amounted to EUR 1.01.
We entered 2007 with a healthy order backlog. Demand continued to be strong
throughout the year, and on 31 December 2007 our order backlog had more than
doubled since the start of the year to EUR 97.3 million.
Demand was stimulated by the excellent situation in the mining and metallurgy
industry and good situation in the chemical process industry. The investment
climate in the mining and metallurgy industry is extremely strong and positive,
and I believe that this will continue. Our customers are investing in new plants
and expanding capacity at their existing plants, for which we have succeeded in
selling our equipment and services. The existing plants are also being utilised
to their full capacity. This is increasing demand for our aftermarket products
and services, as uninterrupted plant operations are crucial, especially when the
economy is so strong.
Larox is a global player that has a strong presence in each of its target
markets. Our focus on a narrow area of expertise combined with a broad product
portfolio and excellent client relationships have created positive results.
Larox's brand, service and quality high-tech products are also strengths
compared with our competitors. Based on our results this strategy has proven to
be good, and our business activities will continue to guarantee services to
customers throughout the entire lifespan of their Larox solutions.
We entered 2008 with the biggest order backlog in Larox's history. This provides
an excellent basis for our future operations. We have good reason to believe
that the healthy and profitable growth of our net sales will continue.”
BUSINESS OPERATIONS
Demand for Larox's products continued positive in essential markets. Order
accumulation developed well throughout the whole year and the order backlog at
the end of the year was clearly bigger than in the previous year. Orders
received in the Group grew by 51.0 % from the year of comparison and totaled EUR
208.4 million (EUR 138 million in 2006). Group order backlog grew by 116.7 %
from the end of the year 2006 and was EUR 97.3 million at the end of 2007 (EUR
44.9 million in 2006). It is estimated that from the order backlog at the turn
of the year EUR 70 million will be delivered in 2008 and EUR 27 million in 2009.
Demand in the mining and metallurgical industry remained healthy and it was
driven by high prices of metals resulting from growing consumption of metals
mostly in China and other Asian countries. In chemical process industry demand
is recovering in all market areas.
Approximately 95 % of Larox net sales were generated outside Finland.
Towards the end of 2007 project business was centralized in Finland through
internal arrangements inside the Group. All customer contracts related to this
are made with the parent company.
GROUP STRUCTURE
There were no changes in Group structure during the fiscal year.
PROFITS AND PROFITABILITY
The Larox Group result before tax for the fiscal year totaled EUR 11.8 million
(EUR 7.0 million), i.e. 7.4 % (5.7 %) of net sales. Operating profit totaled EUR
13.1 million (EUR 8.9 million). Net sales totaled EUR 158.3 million (EUR 122.8
million). Depreciation totaled EUR 3.5 million (EUR 3.4 million) and the share
taken by net sales was 2.2 % (2.8 %). Result for the fiscal year totaled EUR 9.5
million (EUR 5.0 million).
The return of shareholders' equity was 31.9 % (19.4 %). Return on invested
capital was 22.9 % (16.7 %). Earnings per share totaled EUR 1.01 (EUR 0.53).
Operating profit includes EUR 0.8 million one-time cost, recorded in the second
quarter, caused by the termination of the component manufacturing functions in
product factory in Utrecht, The Netherlands by the end of January 2008.
Related to the reorganization of the project business, the Group recorded an
increase in deferred tax asset due to which the Group's effective tax degree
dropped to 19 %.
NET SALES OF THE FOURTH QUARTER AND RESULT DEVELOPMENT
Net sales for the fourth quarter totaled EUR 49.3 million (EUR 40.4 million) and
result before tax totaled EUR 4.9 million (EUR 4.4 million). During the
fourth quarter the amount of new orders received totaled EUR 64.9 million (EUR
43.5 million). Earnings per share for the fourth quarter was EUR 0.56 (EUR
0.36).
BALANCE SHEET AND FINANCING
At the end of the year the Group balance sheet totaled EUR 102.9 million (EUR
83.3 million). The main reason for the growth in balance sheet during the year
was the increased working capital resulting from the growth of net sales. The
interest-bearing debts totaled EUR 36.9 million (EUR 29.1 million). Group's net
financing costs totaled EUR 1.3 million (EUR 1.9 million) and the share taken by
net sales was 0.8 % (1.5 %). The equity ratio was 34.2 % (33.9 %) and the
debt-equity ratio was 1.1 (1.1).
INVESTMENTS
Larox Group investments totaled EUR 3.2 million (EUR 2.3 million).
The investments were mainly for development, IT applications and replacement
investments. During the fiscal year the ERP project has been continued. The
start-up of the system will take place mainly during the fiscal year 2008.
RESEARCH AND PRODUCT DEVELOPMENT
Expenditure by the Larox Group on research, equipment and process development,
automation products and test filtration in the fiscal year was
--------------------------------------------------------------------------------
| | 2007 | 2006 | 2005 |
--------------------------------------------------------------------------------
| EUR million | 6.8 | 6.8 | 6.9 |
--------------------------------------------------------------------------------
| % of net sales | 4.3 % | 5,5 % | 6,6 % |
--------------------------------------------------------------------------------
During the past fiscal year Larox's product development focused on product
standardization, defining and development of new products by applications and
continuous improvement of products. During the review period two standard
product lines were launched on the market, Hoesch horizontal pressure filters
and Pannevis horizontal vacuum belt filters.
Through product development Larox aims at making even more suitable products for
customer needs. In addition to developing other properties this has in practise
meant development of equipment with bigger unit sizes and higher throughputs and
launching them to the market.
To secure teaching of solid/liquid separation technology at Lappeenranta
University of Technology Larox made a donation to finance a professorship in
that field. The annual donation is EUR 95.000 during the next five years,
starting from the beginning of 2008.
PERSONNEL
The average number of personnel employed by the Group in the review period was
458 (450 in 2006 and 438 in 2005).
At the end of the year the number of Group personnel was 469 (446 in 2006 and
445 in 2005) from which 220 in the parent company (210 in 2006 and 215 in 2005)
At the end of the year the number of Group personnel by area was as follows:
--------------------------------------------------------------------------------
| Area | 2007 | 2006 | 2005 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Finland | 220 | 210 | 215 |
--------------------------------------------------------------------------------
| Other European countries | 127 | 139 | 147 |
--------------------------------------------------------------------------------
| North America | 32 | 27 | 26 |
--------------------------------------------------------------------------------
| South and Central America | 36 | 33 | 25 |
--------------------------------------------------------------------------------
| Asia and Australasia | 28 | 17 | 17 |
--------------------------------------------------------------------------------
| Middle East and Africa | 26 | 20 | 15 |
--------------------------------------------------------------------------------
| Personnel total | 469 | 446 | 445 |
--------------------------------------------------------------------------------
The number of personnel further increased in the developing markets and after
sales service and further decreased in production in Europe.
During the fiscal year the main focus in the development of personnel was in
leadership training. Also incentive systems were renewed. Parent company
equality plan was renewed and global personnel policies were updated.
Employee benefits expenses are divided as follows:
--------------------------------------------------------------------------------
| 1000 EUR | 1.1.-31.12. | 1.1.-31.12. | 1.1.-31.12. |
| | 2007 | 2006 | 2005 |
--------------------------------------------------------------------------------
| Salaries and fees | 24 711 | 23 219 | 21 407 |
--------------------------------------------------------------------------------
| Pension expenses, defined | 2 302 | 2 228 | 2 273 |
| contribution plans | | | |
--------------------------------------------------------------------------------
| Pension expenses, defined | 57 | 33 | 4 |
| benefit plans | | | |
--------------------------------------------------------------------------------
| Share-based payments, payment | 63 | 57 | 100 |
| in cash | | | |
--------------------------------------------------------------------------------
| Share-based payments, payment | 101 | | |
| in shares | | | |
--------------------------------------------------------------------------------
| Other employee benefits | 2 672 | 2 555 | 2 584 |
--------------------------------------------------------------------------------
| Employee benefits expenses, | 29 906 | 28 092 | 26 369 |
| total | | | |
--------------------------------------------------------------------------------
THE BOARD OF DIRECTORS AND AUDITORS
In Larox Corporation annual general meeting of shareholders on 30 March 2007 Mr.
Timo Vartiainen, Ms. Katariina Aaltonen, Mr. Teppo Taberman, Mr. Thomas Franck
and Mr. Matti Ruotsala were re-elected to the Board. Mr. Timo Vartiainen was
elected Chairman of the Board and Mr. Teppo Taberman was elected Vice Chairman
in the organizational meeting of the Board of Directors held immediately after
the annual general meeting of shareholders.
The annual general meeting of shareholders elected the following main auditors:
APA Kim Karhu and auditing society PricewaterhouseCoopers Oy with primary
responsibility APA Kaija Leppinen. APA Henrik Sormunen and APA Jarmo Alén were
elected deputy auditors.
ADMINISTRATION
In 2007 the main principles of corporate governance, recommended by the OMX
Nordic Exchange in Helsinki, the Central Chamber of Commerce and the
Confederation of Finnish Industries (EK) were adopted in the Larox Corporation.
The company's Board of Directors has confirmed the principles, and these can be
found on the Larox Corporation website: www.larox.com.
RISKS AND UNCERTAINTY FACTORS
Investments in customers' fields of business affect Larox's business. The most
remarkable risks that may affect the Group's business and financial result are
caused by overall development of economic trends, which is reflected in the
financial situation and demand in the customers' fields of operation. The
development of demand is followed based on general economic situation, e.g by
utilizing test filtrations, order backlog and three (3) and six (6) months'
sales forecasts.
There are a lot of competitors in the business. In addition to international
companies a great number of smaller local companies compete with Larox.
The value, size and variety of single orders have grown strongly and the
Group's dependency of one single customer has increased.
The increased order backlog and demand set requirements to production and
delivery capacity of the organization. The sufficiency and availability of
capacity and resources are the biggest risks related to order backlog.
The biggest risks related to deliveries are the increases in sub-contracting
costs. In the management of material and manufacturing costs the main focus is
in long-term contracts, continuous follow-up and cost reporting. The target is
to anticipate risks by binding the raw material costs with price index of
material costs already when the contract is being negotiated.
The risks related to stability and availability of the Group personnel are
managed through HR policy; for instance by developing bonus systems and focusing
on training.
Different financial instruments are used to manage financial risks. The purpose
is to protect the Group against changes that are unfavorable to the Group's
financial situation. The objective of the Group is to minimize the impacts of
fluctuations in financial markets on the Group's cash reserves, profits and
shareholders' equity. The main risks are currency risks and interest rate risks.
The Group treasury function manages financial risks centrally according to the
policy approved by the Board of Directors.
Larox has insurance coverage on material damages and legal liability for
damages. Insurance coverage on unexpected risks is however limited.
ENVIRONMENTAL MATTERS
Direct environmental influence of Larox's business is minor. The Group takes
care of the proper sorting and further handling of its wastes, including
hazardous wastes.
AUTHORIZATION GIVEN TO THE BOARD OF DIRECTORS IN THE ANNUAL GENERAL MEETING OF
SHAREHOLDERS ON 30 MARCH 2007
The annual general meeting of shareholders authorized the Board of Directors to
decide on the repurchase of shares by using the company's unrestricted
shareholders' equity but this authorization was not used during the fiscal year.
The authorization regards 500 000 Larox Corporation B-series shares at the
maximum and is valid for 18 months from the resolution of the annual general
meeting of shareholders.
The annual general meeting of shareholders authorized the Board of Directors to
decide on shares, stock option rights or special rights referred to in the
Finnish Companies Act chapter 10, paragraph 1 in one or more lots in such a way
that based on the authorization the total maximum number of Larox Corporation
B-series shares is 500 000 but this authorization was not used during the fiscal
year.
The authorization is valid for five years from the resolution by the annual
general meeting of shareholders.
ISSUE OF EQUITY INSTRUMENTS, SUBSCRIPTION OF B-SERIES SHARES BASED ON THE
MANAGEMENT INCENTIVE SYSTEM
Based on Larox Corporation share issue to the top management in 2004, a total of
37.905 of the subscribed B-series shares, the restriction period of which ended
on 1 December 2007, were released for trading together with other Larox
Corporation B-series shares.
In the share issue to the top management a total of 108.300 B-series shares were
subscribed. The restriction period regarding 43.320 shares subscribed in this
share issue will end on 1 December 2008.
Larox Corporation published the terms of the share issue of 2004 to the top
management in stock exchange releases of 16 February 2004 and 17 March 2004.
SHARE-BASED INCENTIVE PLAN FOR KEY PERSONNEL
Larox Corporation Board of Directors decided on 29 May 2007 on a new share-based
incentive plan for Larox Group key personnel. This was informed in a company
announcement on 30 May 2007 and in the interim report of the first quarter of
2007.
SHARES AND SHAREHOLDERS
The trading with Larox shares 1 January - 31 December 2007 totaled 4.173.557,
which is 44.5 % of the total number of shares. The value of the trading totaled
EUR 52.8 million. The lowest price of the Larox share was EUR 8.04 and the
highest EUR 16.85 per share. The closing trading price of the share was EUR
12.00 per share and the market value of the capital stock EUR 112.6 million. At
the end of 2007 the number of shareholders was 1.489.
EVENTS AFTER THE END OF THE FISCAL YEAR
Good development of order backlog has continued in January.
FUTURE PROSPECTS
Growing uncertainty in the world economy has not affected Larox's demand
situation. The market situation is expected to continue favorable and the Group
net sales and profitability are expected to improve from the previous year. The
good order backlog at the turn of the year, EUR 97.3 million (EUR 44.9 million)
and centralizing the project business on the parent company support this.
Positive demand of metals, which is expected to continue strong and the
recovering demand in the chemical process industry influence specially
investment decisions.
DISTRIBUTION OF PROFITS
Parent company's dividends available for the distribution totaled EUR 18.746
million, of which the profit for the fiscal year is EUR 9.286 million. The Board
proposes to the annual general meeting of shareholders a dividend of EUR 0.60
per share be distributed, i.e. a total of EUR 5.6 million. No esssential changes
have taken place in financial situation of the company after the balance sheet
date. Proposed dividend to be distributed does not endanger the solvency of the
company.
Lappeenranta on 12 February 2008
Larox Corporation
Board of Directors
For further information, please contact
Mr. Toivo Matti Karppanen, President & CEO
Phone +358 5 668 8210
E-mail topi.karppanen@larox.com
www.larox.com
DISTRIBUTION OMX Nordic Exchange in Helsinki, Central Media
KEY RATIOS OF LAROX GROUP
--------------------------------------------------------------------------------
| 1000 EUR | 1-12/2007 | 1-12/2006 | 1-12/2005 |
--------------------------------------------------------------------------------
| New orders | | | |
--------------------------------------------------------------------------------
| Group order backlog at end | 208 421 | 137 971 | 121 470 |
| of period | | | |
--------------------------------------------------------------------------------
| | 97 330 | 44 911 | 29 845 |
--------------------------------------------------------------------------------
| Net sales | | | |
--------------------------------------------------------------------------------
| Operating profit (EBIT) | 158 270 | 122 809 | 104 324 |
--------------------------------------------------------------------------------
| % of net sales | 13 070 | 8 931 | 6 670 |
--------------------------------------------------------------------------------
| Net financial costs | 8.3 | 7.3 | 6.4 |
--------------------------------------------------------------------------------
| % of net sales | 1 315 | 1 887 | 879 |
--------------------------------------------------------------------------------
| Result before taxes | 0.8 | 1.5 | 0.8 |
--------------------------------------------------------------------------------
| Result for the period | 11 755 | 7 044 | 5 790 |
--------------------------------------------------------------------------------
| | 9 496 | 5 004 | 4 502 |
--------------------------------------------------------------------------------
| Investments | 3 284 | 2 285 | 1 832 |
--------------------------------------------------------------------------------
| Shareholders' equity per | 3.50 | 2.84 | 2.68 |
| share at end of period, EUR | | | |
--------------------------------------------------------------------------------
| Equity ratio % | 34.2 | 33.9 | 29.9 |
--------------------------------------------------------------------------------
| Return on equity, % | 31.9 | 19.4 | 19.7 |
--------------------------------------------------------------------------------
| Return on invested capital, | 22.9 | 16.7 | 12.6 |
| % | | | |
--------------------------------------------------------------------------------
| Liabilities and | 102 853 | 3 295 | 84 269 |
| shareholders' equity | | | |
--------------------------------------------------------------------------------
| % of net sales | 65.0 | 67.8 | 80.8 |
--------------------------------------------------------------------------------
| Contingent liabilities | 27.7 | 27.8 | 27.9 |
--------------------------------------------------------------------------------
| Earnings per share, EUR | 1.01 | 0.53 | 0.49 |
--------------------------------------------------------------------------------
| Dividend per share, EUR | *) 0.60 | 0.30 | 0.24 |
--------------------------------------------------------------------------------
| Trading price at end of | 12.00 | 9.00 | 6.10 |
| period, EUR | | | |
--------------------------------------------------------------------------------
| Market capitalization at | 112.6 | 84.4 | 56.6 |
| end of period, EUR million | | | |
| **) | | | |
--------------------------------------------------------------------------------
| Average number of personnel | 458 | 450 | 438 |
--------------------------------------------------------------------------------
| Number of personnel at end | 469 | 446 | 445 |
| of period | | | |
--------------------------------------------------------------------------------
| Net sales per person | 346 | 273 | 238 |
--------------------------------------------------------------------------------
*) Board of Directors proposal to the annual general meeting of Larox
Corporation shareholders.
**) A-share data is based on the B share's last
trading rate of the financial year (weighted average)
--------------------------------------------------------------------------------
| KEY FIGURES BY | | | | | |
| QUARTERS | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 2007 | 2007 | 2007 | 2007 | 2006 |
--------------------------------------------------------------------------------
| EUR 1000 | 10-12 | 7-9 | 4-6 | 1-3 | 10-12 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| New orders | 64 912 | 57 471 | 42 979 | 43 059 | 43 482 |
--------------------------------------------------------------------------------
| Group order backlog | 97 330 | 79 606 | 53 845 | 55 201 | 44 911 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net sales | 49 298 | 33 662 | 42 651 | 32 659 | 40 431 |
--------------------------------------------------------------------------------
| Operating profit | 5 164 | 1 886 | 3 276 | 2 743 | 4 568 |
--------------------------------------------------------------------------------
| % of net sales | 10.5 | 5.6 | 7.7 | 8.4 | 11.3 |
--------------------------------------------------------------------------------
| Net financing costs | 256 | 507 | 126 | 426 | 218 |
--------------------------------------------------------------------------------
| % of net sales | 0.5 | 1.5 | 0.3 | 1.3 | 0.5 |
--------------------------------------------------------------------------------
| Result before taxes | 4 908 | 1 379 | 3 150 | 2 318 | 4 350 |
--------------------------------------------------------------------------------
| Result for the | 5 250 | 979 | *) 1 716 | 1 550 | **) 3 358 |
| quarter | | | | | |
--------------------------------------------------------------------------------
| EPS basic and diluted | 0.56 | 0.1 | 0.18 | 0.17 | 0.36 |
| EUR) | | | | | |
--------------------------------------------------------------------------------
*) includes one-time cost of EUR 0.8 million for terminating filter assembly
functions in The Netherlands
**) includes one-time cost of EUR 0.9 million for terminating component
manufacturing functions in The Netherlands.
This interim financial report has been prepared in accordance with IFRS
recognition and measurement principles. The review is not prepared in accordance
with all the requirements of IAS 34 Interim Financial Reporting -standard.
--------------------------------------------------------------------------------
| INCOME STATEMENTS, IFRS | | | | |
--------------------------------------------------------------------------------
| 1000 EUR | 10-12/2007| 10-12/2006 | 1-12/2007 | 1-12/2006 |
| | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales | 49 298 | 40 431 | 158 270 | 122 809 |
--------------------------------------------------------------------------------
| Other operating income | 1 038 | 557 | 2 240 | 1 680 |
--------------------------------------------------------------------------------
| Change in inventories of | | | | |
| finished | | | | |
--------------------------------------------------------------------------------
| goods and work in progress | -739 | -811 | 446 | -1 287 |
--------------------------------------------------------------------------------
| Materials and services | -28 532 | -20 170 | -87 305 | -59 743 |
--------------------------------------------------------------------------------
| Employee benefits expense | -7 681 | -8 214 | -29 906 | -28 092 |
--------------------------------------------------------------------------------
| Depreciation, amortisation | -942 | -777 | -3 504 | -3 412 |
| & | | | | |
--------------------------------------------------------------------------------
| impairment losses | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -7 278 | -6 447 | -27 171 | -23 023 |
--------------------------------------------------------------------------------
| OPERATING PROFIT | 5 164 | 4 568 | 13 070 | 8 931 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income | 407 | 138 | 946 | 890 |
--------------------------------------------------------------------------------
| Financial expenses | -706 | -510 | -2 622 | -3 032 |
--------------------------------------------------------------------------------
| Share of profit/loss in | 43 | 155 | 361 | 255 |
| associates | | | | |
--------------------------------------------------------------------------------
| PROFIT/LOSS BEFORE TAX | 4 908 | 4 350 | 11 755 | 7 044 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Income tax expense | 342 | -992 | -2 259 | -2 040 |
--------------------------------------------------------------------------------
| PROFIT/LOSS FOR THE PERIOD | 5 250 | 3 358 | 9 496 | 5 004 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EPS basic (EUR) | 0,56 | 0,36 | 1,01 | 0,53 |
--------------------------------------------------------------------------------
| EPS diluted (EUR) | 0,56 | 0,36 | 1,01 | 0,53 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| BALANCE SHEETS, IFRS | | |
--------------------------------------------------------------------------------
| 1000 EUR | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Intangible assets | 18 795 | 18 871 |
--------------------------------------------------------------------------------
| Goodwill | 2 926 | 2 948 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 9 257 | 9 566 |
--------------------------------------------------------------------------------
| Investments in associates | 1 393 | 1 153 |
--------------------------------------------------------------------------------
| Available-for-sale investments | 23 | 208 |
--------------------------------------------------------------------------------
| Deferred tax asset | 5 238 | 3 561 |
--------------------------------------------------------------------------------
| NON-CURRENT ASSETS | 37 633 | 36 307 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT ASSETS | | |
--------------------------------------------------------------------------------
| Inventories | 26 592 | 19 842 |
--------------------------------------------------------------------------------
| Trade receivables and other receivables | 36 651 | 24 984 |
--------------------------------------------------------------------------------
| Income tax receivable | 165 | 210 |
--------------------------------------------------------------------------------
| Cash and bank | 1 812 | 1 952 |
--------------------------------------------------------------------------------
| CURRENT ASSETS | 65 220 | 46 988 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 102 853 | 83 295 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES | | |
--------------------------------------------------------------------------------
| Share capital | 5 629 | 5 629 |
--------------------------------------------------------------------------------
| Share premium account | 5 777 | 5 777 |
--------------------------------------------------------------------------------
| Other reserves | 0 | 60 |
--------------------------------------------------------------------------------
| Translation differences | -127 | -69 |
--------------------------------------------------------------------------------
| Retained earnings | 21 566 | 15 271 |
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY | 32 845 | 26 668 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 1 804 | 2 511 |
--------------------------------------------------------------------------------
| Long-term financial liabilities | 12 751 | 19 405 |
--------------------------------------------------------------------------------
| Employee benefit obligations | 555 | 479 |
--------------------------------------------------------------------------------
| Non-current provisions | 826 | 411 |
--------------------------------------------------------------------------------
| NON-CURRENT LIABILITIES | 15 936 | 22 806 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | | |
--------------------------------------------------------------------------------
| Short-term financial liabilities | 24 196 | 9 619 |
--------------------------------------------------------------------------------
| Trade payables and other payables | 29 876 | 24 202 |
--------------------------------------------------------------------------------
| CURRENT LIABILITIES | 54 072 | 33 821 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES | 102 853 | 83 295 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CASH FLOW STATEMENTS, IFRS | | |
--------------------------------------------------------------------------------
| 1000 EUR | 31.12.2007 | 31.12.2006 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net profit/loss | 9 496 | 5 004 |
--------------------------------------------------------------------------------
| Adjustments to the net profit/loss of the | 6 986 | 7 131 |
| period | | |
--------------------------------------------------------------------------------
| Change in working capital | -13 817 | 6 020 |
--------------------------------------------------------------------------------
| Interest paid | -1 819 | -1 814 |
--------------------------------------------------------------------------------
| Interest income received | 53 | 79 |
--------------------------------------------------------------------------------
| Other financing items | -50 | -310 |
--------------------------------------------------------------------------------
| Income taxes paid | -3 218 | -1 229 |
--------------------------------------------------------------------------------
| Net cash from operating activities | - 2 369 | 14 881 |
--------------------------------------------------------------------------------
| Net cash used in investment activities | -3 037 | -1 672 |
--------------------------------------------------------------------------------
| Share issue | 0 | 0 |
--------------------------------------------------------------------------------
| Increase in loans | 23 196 | 5 896 |
--------------------------------------------------------------------------------
| Decrease in loans | -15 024 | -16 493 |
--------------------------------------------------------------------------------
| Repayment of finance lease liabilities | -93 | -56 |
--------------------------------------------------------------------------------
| Dividends paid | -2 814 | -2 226 |
--------------------------------------------------------------------------------
| Net cash used in financing activities | 5 265 | -12 879 |
--------------------------------------------------------------------------------
| Change in cash and cash equivalents | -141 | 330 |
--------------------------------------------------------------------------------
| Operating balance of cash and cash equivalents | 1 952 | 1 737 |
--------------------------------------------------------------------------------
| Effect of the foreign exchange rates | 1 | -114 |
--------------------------------------------------------------------------------
| Closing balance of cash and cash equivalents | 1 812 | 1 952 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN SHAREHOLDERS' EQUITY 1-12/2006 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Equity belonging to parent company's shareholders |
--------------------------------------------------------------------------------
| | | Share | Fair | Hed- | Trans- | | |
--------------------------------------------------------------------------------
| 1000 EUR | Share | issue | valu | ging | lation | Retaine | |
| | | | e | | | d | |
--------------------------------------------------------------------------------
| | capita | premiu | res. | res. | diff. | earning | Total |
| | l | m | | | | s | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 5629 | 5777 | 138 | -15 | -145 | 13516 | 24901 |
| EQUITY | | | | | | | |
--------------------------------------------------------------------------------
| 1 JANUARY 2006 | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | | | | |
| hedging | | | | | | | |
--------------------------------------------------------------------------------
| Recognized in equity, | | | -30 | | | -30 |
| net of tax | | | | | | |
--------------------------------------------------------------------------------
| Investment available to | | | | | | |
| sale | | | | | | |
--------------------------------------------------------------------------------
| At fair value, net of tax | | -33 | | | | -33 |
--------------------------------------------------------------------------------
| Change in translation difference | | | 75 | -1081 | -1006 |
--------------------------------------------------------------------------------
| Net profits and losses recognized directly in | | | |
--------------------------------------------------------------------------------
| shareholders | | | -33 | -30 | 75 | -1081 | -1069 |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | | 5004 | 5004 |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Total profits and losses | | -33 | -30 | 75 | 3923 | 3935 |
--------------------------------------------------------------------------------
| Dividend | | | | | | -2226 | -2226 |
| distribution | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | 57 | 57 |
| payments | | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | | | | | | | |
| EQUITY | | | | | | | |
--------------------------------------------------------------------------------
| 31 DECEMBER 2006 | 5629 | 5777 | 105 | -44 | -69 | 15271 | 26668 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CHANGE IN SHAREHOLDERS' EQUITY 1-12/2007 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | Equity belonging to parent company's shareholders |
--------------------------------------------------------------------------------
| | | Share | Fair | Hed- | Trans- | | |
--------------------------------------------------------------------------------
| 1000 EUR | Share | issue | valu | ging | lation | Retaine | |
| | | | e | | | d | |
--------------------------------------------------------------------------------
| | capita | premiu | res. | res. | diff. | earning | Total |
| | l | m | | | | s | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' | 5629 | 5777 | 105 | -44 | -69 | 15271 | 26668 |
| EQUITY | | | | | | | |
--------------------------------------------------------------------------------
| 1 JANUARY 2007 | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | | | | |
| hedging | | | | | | | |
--------------------------------------------------------------------------------
| Recognised in equity, | | | 44 | | | 44 |
| net of tax | | | | | | |
--------------------------------------------------------------------------------
| Investment available to | | | | | | |
| sale | | | | | | |
--------------------------------------------------------------------------------
| At fair value, net of tax | | -105 | | | | -105 |
--------------------------------------------------------------------------------
| Change in translation | | | | -58 | -487 | -545 |
| difference | | | | | | |
--------------------------------------------------------------------------------
| Net profits and losses recognized directly in | | | |
--------------------------------------------------------------------------------
| shareholders | | | -105 | 44 | -58 | -487 | -606 |
| equity | | | | | | | |
--------------------------------------------------------------------------------
| Profit for the | | | | | | 9496 | 9496 |
| period | | | | | | | |
--------------------------------------------------------------------------------
| Total profits and losses | | -105 | 44 | -58 | 9009 | 8890 |
--------------------------------------------------------------------------------
| Dividend | | | | | | -2814 | -2814 |
| distribution | | | | | | | |
--------------------------------------------------------------------------------
| Share-based | | | | | | 101 | 101 |
| payments | | | | | | | |
--------------------------------------------------------------------------------
| SHAREHOLDERS' | | | | | | | |
| EQUITY | | | | | | | |
--------------------------------------------------------------------------------
| 31 DECEMBER 2007 | 5629 | 5777 | 0 | 0 | -127 | 21566 | 32845 |
--------------------------------------------------------------------------------
All figures in the financial statements have been adjusted and therefore the
added sum of individual figures may differ from the presented added figure.
Larox has applied the same accounting principles in this Annual Report as in
Annual Report 2006. The Group has adopted the following standard:
IFRS 7, ‘Financial instruments: Disclosures', and the complementary amendment to
IAS 1, ‘Presentation of financial statements - Capital disclosures', Equity
information presented in financial statements - standard change entered into
force 1 January 2007 - IFRS presents new requirements in notes to financial
instruments to improve information on financial statements. Changes related to
IAS 1 standard include requirements on how the company manages capital. In the
Group ‘s opinion the adoption of the new amendment to IAS 1 mainly affects the
notes to the Group financial statements.
The contents of changes in standards and interpretations were presented in more
detail in 2007 Annual Report. The adaptation did not cause such changes in
accounting principles which would have had an effect on the information
presented in this release.
The Larox Corporation annual report will be published in week 12/2008.
The interim report for January - March 2008 will be published on
24 April 2008, the interim report for January - June 2008 will be published on
8 August 2008 and the interim report for January - September 2008 will be
published on 23 October 2008.
The Larox Corporation Annual General Meeting of shareholders will be held on
Wednesday 26 March 2008 at 1 p.m. at the Larox Corporation head office in
Lappeenranta, Finland.
CALCULATION OF KEY FIGURES
Equity ratio, % =
Shareholders' equity
--------------------------------- x 100
Total assets - advances received
Earnings per share =
Net profit
---------------------------------
Adjusted average number of shares
during the period
Market capitalization at the end of the period =
Number of shares at the end of the period x trading price at the end of period
weighted by the number of shares traded.
Larox develops, designs and manufactures industrial filters and is a leading
technology company in its field. Larox is a full service solution provider in
filtration for separating solids from liquids. It supplies comprehensive
aftermarket services throughout the lifespan of the Larox solution. Companies
world-wide in mining and metallurgy, chemical processing and related industries
benefit from the Larox technologies. Larox operates in over 40 countries and has
over 460 employees. Larox Group is headquartered in Lappeenranta, Finland where
the Group also has production facilities. Net sales in 2007 totaled 158.3
million euros, of which more than 95 % were generated by exports and the
company's foreign operations