HONKARAKENNE OYJ INTERIM REPORT 14 MAY 2010 at 9.00 AM
HONKARAKENNE OYJ'S INTERIM REPORT, 1 JANUARY - 31 MARCH 2010
SUMMARY
Interim Report January - March 2010
Honkarakenne Group's consolidated net sales for the first quarter of 2010
amounted to EUR 8.5 million, a decrease of 26.2% on the previous year's
corresponding period (EUR 11.5 million). Profit before taxes showed a loss of
EUR 2.0 million (loss of EUR 1.2 million) and the earnings/share ratio was a
loss of EUR 0.47 (loss of EUR 0.27).
Due to the issue of new shares, the historical indicators by share have been
corrected using the following formula: average number of shares x 1.01.
The financial position of the Group improved during the quarter. The programme
to boost earnings which was launched in January is progressing and the order
book is increasing. The turnover of the entire year is expected to be on the
level of the previous year. The Group aims at a profitable result during the
accounting period.
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| KEY FIGURES | 1-3/ | 1-3/ | 1-12/ | change % |
| | 2010 | 2009 | 2009 | |
--------------------------------------------------------------------------------
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| Net sales, MEUR | 8.5 | 11.5 | 52.3 | -26.2 |
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| Operating profit/loss, MEUR | -1.8 | -1.2 | -3.0 | |
--------------------------------------------------------------------------------
| Operating profit after | -1.5 | | | |
| non-recurring items, MEUR | | | | |
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| Profit/loss before taxes, MEUR | -2.0 | -1.2 | -3.7 | |
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| Average number of personnel | 334 | 393 | 357 | |
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| Earnings/share (EPS), EUR | -0.47 | -0.27 | -1.05 | |
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| Equity ratio, % | 33.6 | 30.9 | 28.8 | |
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| Return on equity, % | -13.1 | -6.5 | -26.3 | |
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| Shareholders equity/share, EUR | 2.9 | 4.3 | 3.5 | |
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| Gearing, % | 112.1 | 135.9 | 149.0 | |
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Esa Rautalinko, President and CEO of Honkarakenne Oyj, in connection with the
interim report:
The recession continued on all the main markets of Honkarakenne. Especially in
Finland, the downswing continued to be strong. The strike that took place in
March affected also the Far East turnover.
The focus during the first quarter was on the realisation of the programme to
boost earnings. The Group aims to achieve cost savings of around EUR 5 million
this year. Especially, the cost-saving programme concentrates on the use of
industrial production methods in the production of log houses, from the first
meeting with the customer to design, production and delivery.
In connection with the cost-saving programme, Honkarakenne arranged structural
co-operation negotiations during the first quarter. The level of personnel
resources was adjusted to the level required by the volume of the operations. As
a result, 33 contracts of employment were terminated, of which 12 were pension
arrangements. In addition, 45 employees were temporarily laid off for an
indefinite period. Later, after the end of the first quarter, Honkarakenne
initiated co-operation negotiations on the layoffs, with the aim to ensure
competitiveness despite the fluctuation in sales and production.
After the first quarter, EUR 0.7 million have been saved from the total aim of
EUR 5 million set out in the cost-saving programme.
NET SALES
Honkarakenne Group's consolidated net sales for the first quarter of 2010
amounted to EUR 8.5 million, compared to EUR 11.5 million in the same period
last year. Net sales decreased by EUR 3.0 million and remained 26.2% below last
year's figure. Domestic net sales decreased by EUR 1.7 million (-24.6%) and
export net sales by EUR 1.3 million (-24.3%).
Geographical distribution of net sales:
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| DEVELOPMENT OF SALES | | | |
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| Distribution of net sales, % | 1-3/2010 | 1-3/2009 | | |
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| Finland | 50.7 % | 51.9 % | | |
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| Central Europe | 22.9 % | 21.2 % | | |
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| Far East | 8.9 % | 11.4 % | | |
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| Other countries | 17.6 % | 15.5 % | | |
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| Total | 100.0 % | 100.0 % | | |
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| | | | | |
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| Net sales, 1000 euros | 1-3/2010 | 1-3/2009 | change % | 1-12/2009 |
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| Finland | 4,303 | 5,972 | -27.9,% | 23,790 |
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| Central Europe | 1,942 | 2,438 | -20.4,% | 12,700 |
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| Far East | 754 | 1,317 | -42.7,% | 5,759 |
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| Other countries | 1,496 | 1,779 | -15.9,% | 10,063 |
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| Total | 8,495 | 11,506 | -26.2,% | 52,313 |
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The figures for ‘Central Europe' comprise Germany and France as well as the rest
of Europe. The figures for ‘Far East' comprise Japan and Mongolia. The figures
for ‘Other countries' comprise the CIS countries, USA and Estonia.
Sales to the Far East were affected by the strike in March.
DEVELOPMENT OF PROFIT AND PROFITABILITY
Operating profit in January-March was EUR -1.8 million (EUR -1.2 million).
Profit before taxes stood at EUR -2.0 million (EUR -1.2 million). The launch of
the cost-saving programme curbed the decrease in turnover. The operating profit
includes EUR 0.3 million of non-recurring costs related to the cost-saving
programme. Of these, 77% are connected to severance pay and 23% to the
implementation of rationalisation projects.
FINANCING AND INVESTMENTS
The financial position of the Group improved during the quarter. The equity
ratio stood at 33.6% (30.9%) and interest-bearing net liabilities at EUR 15.9
million (EUR 20.6 million). EUR 4.4 million of the interest-bearing net
liabilities carries a 30% equity ratio covenant term. The next review is due on
31 December 2010. Group liquid assets totalled EUR 1.9 million (EUR 2.6
million). The Group also has a EUR 10.0 million bank overdraft facility, EUR 4.3
million of which had been drawn on at the end of the report period (EUR 6.0
million). Gearing stood at 112.1% (135.9%). Capital expenditure totalled EUR 0.2
million (EUR 0.7 million).
MARKET DEVELOPMENT
On the basis of a report commissioned by RTS Oy, Finnish log house production is
expected to grow by 4.7% this year. The figure includes production for Finland
and for overseas export.
PRODUCTS AND MARKETING
In Finland, Honkarakenne concentrated on the marketing of holiday homes, saunas
and the Honka Tonttipalvelu building land service.
The Effecta house model collection was launched in Japan. Thanks to its
cost-effective structural solutions and choice of components, the Effecta
collection offers a price-competitive massivewood alternative to suit the
market situation.
In Western Europe, the launch of the Honka Fusion™ product concept was
continued, along with co-operation with architects to boost the visibility and
demand of the concept. The first Honka Fusion™ model house open to the public
was delivered at Lyon, France. The house is designed by the Italian architect
Francesco Siani. In the Alpine region, Honkarakenne also delivered a
kindergarten building designed according to the Fusion concept. The Fusion
projects, utilising a non-shrinking log structure, are a significant and growing
part of the order book for Western Europe.
On the German market, the Seasons model collection, conceptualised and priced
ready for the customer to move into, was introduced to the entire sales network.
The collection consists of four main models between 100 and 140 square metres.
RESEARCH AND DEVELOPMENT
During the first quarter, Honkarakenne has concentrated on developing the
production techniques of the newest innovations. The technological solutions
that are being developed will be introduced into products during the second
quarter.
The profile of the log frames will be modified, making it more air-tight and
energy-efficient. In addition, corner notch solutions will be developed in a
more energy-efficient direction. All the future solutions are breathing, as are
Honkarakenne's other products. They make possible a healthy indoor air of
excellent quality.
In addition to energy efficiency, the future solutions make possible a unique
visual appearance. The dark shadow line between the logs is minimised and the
hole in the inside corners, characteristic of log buildings, can be removed with
new notching solutions.
In January-March, consolidated R&D expenditure was EUR 0.1 million (EUR 0.1
million), representing 0.7% of net sales (0.4%). In the report period, the Group
did not capitalize any development expenditure.
STAFF
At the end of March, the Group employed on average 334 people (393). This is 59
less than at the same time in the previous year.
On 15 March 2010, the company concluded the co-operation negotiation that it had
begun in January. As a result, 33 contract of employment were terminated, of
which 12 were pension arrangements. In addition, 45 employees were temporarily
laid off for an indefinite period.
HONKARAKENNE OYJ'S ANNUAL GENERAL MEETING 2010, BOARD OF DIRECTORS AND
ACCOUNTANTS
Honkarakenne Oyj's Annual General Meeting held on 26 March 2010 at the corporate
head office in Tuusula. The General Meeting confirmed the financial statements
of the parent company and the Group, and released the Board members and the
President and CEO from liability for the year of 2009. The Annual General
Meeting decided that dividends will not be distributed for the financial year
2009.
To the Board of Directors were elected: Mr Mauri Saarelainen, Mr Tomi Laamanen,
Mr Mauri Niemi, Ms Pirjo Ruuska, Mr Lasse Kurkilahti and Mr Marko Saarelainen.
The Board of Directors convened for its constituent meeting and appointed Mr.
Lasse Kurkilahti as Board Chairman.
KPMG Oy Ab, Authorized Public Accountants, was selected to continue as the
company's auditor with Ari Eskelinen as chief accountant.
HONKARAKENNE OYJ'S DIRECTED ISSUE, OWN SHARES AND AUTHORIZATIONS TO THE BOARD OF
DIRECTORS
The issue of 1,200,000 B shares and the increase in share capital, were
implemented and entered in the Trade Register at the beginning of February 2010.
The Board allocated the 1,200,000 B shares concerned to the subscribers at the
subscription price of EUR 2.90 per share. The total subscription price of the
new shares amounted to 3,480,000 euros, resulting in an increase of 2,400,000
euros in the share capital, with the remainder recorded in the invested
non-restricted equity fund. Following the share issue, Honkarakenne Oyj's share
capital comprises a total of 4,948,968 shares, of which 300,096 are A shares and
4,648,872 are B shares. Each B share carries one (1) vote and each A share
carries twenty (20) votes. Hence, Honkarakenne's shares in aggregate carry a
total of 10,650,792 votes. Following the increase in share capital, the
company's total share capital is 9,897,936 euros.
Honkarakenne Oyj has not repurchased its own B shares during the period
under review. In connection with the directed issue, Honkarakenne sold some of
the equity shares that it held to a restricted circle of the company's key
personnel. The number of shares sold was 118,500 at EUR 2.90 per share. At the
end of the review period the company held 95,385 of its B shares with a total
nominal value of EUR 190,770.00 and a total purchase price of EUR 379,619.57.
These shares represent 1.93% of the company's capital stock and 0.90% of the
voting rights. The purchase cost has been deducted from shareholders' equity in
the consolidated financial statements.
On 26 March 2010, the Annual General Meeting decided to authorise the Board of
Directors to acquire a maximum of 400,000 of the company's own B shares, using
funds from the unrestricted equity of the company. In addition, the Annual
General Meeting authorised the Board to decide on an issue of shares with or
without payment and on the giving of special rights to shares referred to in §1
of Chapter 10 of the Finnish Limited Companies Act in one or more batches. On
the basis of the authorisation, the Board may give a total maximum of 1,200,000
new shares and/or the old B shares that are in the possession of the company.
This includes the shares that may be given on the basis of the special rights.
Both of these authorisations are valid until 25 March 2011.
OWNERSHIP CHANGES IN ASSOCIATED COMPANIES
On 29 December 2009, Honkarakenne Oyj concluded an agreement to sell its 15%
stake in PW-Windows Oy, a windows manufacturer based in Ikaalinen. The sale was
concluded in accordance with the terms in January 2010. Honkarakenne
relinquished its ownership in PW-Windows Oy as part of the drive to streamline
Group structure and improve purchasing operations.
CORPORATE GOVERNANCE
Honkarakenne Oyj observes the corporate governance code for listed companies
issued by the Finnish Securities Market Association. The company's website,
www.honka.com/investors, provides more information on the corporate governance
systems.
FUTURE OUTLOOK
The decrease in demand is believed to have stopped on all markets, but the
market situation is still difficult to predict on all the main markets of the
Group. In sales, the protracted nature of the sales process and the small amount
of orders that will be delivered in the long-term can be seen especially
clearly.
The Group had order book for EUR 21.2 million at the end of March. At the same
time last year, this number was EUR 19.8 million; there has been a growth of 7%.
The order book includes orders whose delivery date is within the next 24 months.
Some orders may include conditions related to building permits or financing.
FORTHCOMING RISKS AND UNCERTAINTIES
Despite the rescue plan, the financial situation in the eurozone creates
uncertainty on the market which is visible in the challenge posed by evaluating
currency and interest rate risks. This has an especially pronounced effect on
export markets. In exports, the value of individual objects is high, and
therefore the effect of market uncertainty on sales may significantly affect the
Group even in the case of a single order.
Overall, the time the markets need to recover to reach a more profitable level
is a risk.
The Group has one significant concentration of credit risks in sales
receivables, concerning the open sales receivables of one importer. No provision
for doubtful debt has been made for this. The new sales made with this importer
have been paid according to the agreed terms and conditions. Deliveries to the
importer have continued, and the risks with the open sales receivables have not
increased.
REPORTING
This report contains statements that relate to the future; these statements are
based on hypotheses that the company's management holds currently as well as the
decisions and plans that are currently in place. Although the management
believes that the hypotheses relating to the future are well-founded, there is
no guarantee that the said hypotheses will prove to be correct.
This interim report is prepared in line with the IFRS reporting standards, but
not all of the requirements of the standard IAS 34 apply. The figures have not
been examined by the auditor.
EVENTS AFTER THE PERIOD UNDER REVIEW
On 19 April 2010, Honkarakenne Oyj initiated co-operation negotiations
concerning its entire personnel in Finland. The negotiations continue the
adaptation measures of the company. They aim to safeguard the company's
competitiveness, taking into account seasonal fluctuations and the development
of sales. The negotiations concluded on 12 May 2010. As a result the company can
lay-off personnel temporarily maximum of 90 days by the end of the year 2010.
The lay-off's concern all personnel groups.
OUTLOOK FOR 2010
Honkarakenne makes no changes to its previous outlook for 2010. The turnover of
the entire year is expected to be on the level of the previous year. The company
aims at a profitable result during the accounting period. The financial position
and liquidity of Honkarakenne are at a satisfactory level after the realised
issue of shares. If business develops in the expected manner, they make it
possible to undertake rationalisation and development of the activity in 2010.
HONKARAKENNE OYJ
Board of Directors
Further information:
Esa Rautalinko, President and CEO, +358 400 740 997, esa.rautalinko@honka.com or
Mikko Jaskari, CFO, +358 (0)400 535 337, mikko.jaskari@honka.com.
This and previous bulletins are available to view on the company's website at
www.honka.com/investors.
The following interim reports will be published on 13 August 2010 and 12
November 2010.
DISTRIBUTION
Stock Exchange OMX Helsinki
Key media
Financial Supervisory Authority
www.honka.com
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| CONSOLIDATED STATEMENT OF | | | |
| COMPREHENSIVE INCOME | | | |
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| (unaudited) | 1-3 | 1-3 | 1-12 /2009 |
| | /2010 | /2009 | |
--------------------------------------------------------------------------------
| (MEUR) | | | |
--------------------------------------------------------------------------------
| Net sales | 8.5 | 11.5 | 52.3 |
--------------------------------------------------------------------------------
| Other operating income | 0.3 | 0.1 | 1.6 |
--------------------------------------------------------------------------------
| Change in inventories | 1.4 | -0.2 | -2.0 |
--------------------------------------------------------------------------------
| Production for own use | 0.0 | 0.0 | 0.1 |
--------------------------------------------------------------------------------
| Materials and services | 5.9 | -5.9 | -28.5 |
--------------------------------------------------------------------------------
| Employee benefit expenses | 3.3 | -3.5 | -13.2 |
--------------------------------------------------------------------------------
| Depreciations | 0.9 | -0.9 | -4.1 |
--------------------------------------------------------------------------------
| Other operating expenses | -2.1 | -2.3 | -9.1 |
--------------------------------------------------------------------------------
| Operating profit/loss | -1.8 | -1.2 | -3.0 |
--------------------------------------------------------------------------------
| Financial income and expenses | -0.2 | -0.0 | -0.6 |
--------------------------------------------------------------------------------
| Share of associated companies' | 0.0 | -0.0 | -0.2 |
| profit | | | |
--------------------------------------------------------------------------------
| Profit/loss before taxes | -2.0 | -1.2 | -3.7 |
--------------------------------------------------------------------------------
| Taxes | -0.0 | 0.3 | -0.0 |
--------------------------------------------------------------------------------
| Profit/loss for the period | -2.0 | -0.9 | -3.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income: | | | |
--------------------------------------------------------------------------------
| Translation differences | 0.1 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total comprehensive | -1.9 | -0.9 | -3.7 |
| income for the period | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Attributable to: | | | |
--------------------------------------------------------------------------------
| Equity holders of the parent | -1.9 | -0.9 | -3.7 |
--------------------------------------------------------------------------------
| Minority interest | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| | -1.9 | -0.9 | -3.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Earnings/share (EPS), EUR | | | |
--------------------------------------------------------------------------------
| Basic | -0.47 | -0.27 | -1.05 |
--------------------------------------------------------------------------------
| Diluted | -0.47 | -0.27 | -1.05 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | 31.03.2010 | 31.03.2009 | 31.12.2009 |
| (unaudited) | | | |
--------------------------------------------------------------------------------
| (MEUR) | | | |
--------------------------------------------------------------------------------
| Assets | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | |
--------------------------------------------------------------------------------
| Property, plant and equipment | 23.5 | 25.8 | 24.3 |
--------------------------------------------------------------------------------
| Goodwill | 0.1 | 0.5 | 0.1 |
--------------------------------------------------------------------------------
| Other intangible assets | 1.2 | 1.5 | 1.3 |
--------------------------------------------------------------------------------
| Investments in associated | 2.0 | 2.2 | 2.1 |
| companies | | | |
--------------------------------------------------------------------------------
| Other investments | 0.2 | 0.2 | 0.2 |
--------------------------------------------------------------------------------
| Receivables | 0.5 | 0.1 | 0.3 |
--------------------------------------------------------------------------------
| Deferred tax assets | 1.5 | 1.6 | 1.5 |
--------------------------------------------------------------------------------
| | 29.0 | 31.9 | 29.7 |
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| Current assets | | | |
--------------------------------------------------------------------------------
| Inventories | 10.9 | 13.3 | 9.4 |
--------------------------------------------------------------------------------
| Trade and other receivables | 7.7 | 8.8 | 7.5 |
--------------------------------------------------------------------------------
| Cash and bank receivables | 1.9 | 2.6 | 1.7 |
--------------------------------------------------------------------------------
| | 20.5 | 24.7 | 18.6 |
--------------------------------------------------------------------------------
| Total assets | 49.5 | 56.6 | 48.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| Shareholders' equity and | | | |
| liabilities | | | |
--------------------------------------------------------------------------------
| Equity attributable to equity | | | |
| holders | | | |
| of the parent | | | |
--------------------------------------------------------------------------------
| Capital stock | 9.9 | 7.5 | 7.5 |
--------------------------------------------------------------------------------
| Share premium | 0.5 | 0.5 | 0.5 |
--------------------------------------------------------------------------------
| Reserve fund | 5.3 | 5.3 | 5.3 |
--------------------------------------------------------------------------------
| | 1.1 | | |
--------------------------------------------------------------------------------
| Translation differences | 0.1 | 0.1 | 0.0 |
--------------------------------------------------------------------------------
| Retained earnings | -2.7 | 1.7 | -1.0 |
--------------------------------------------------------------------------------
| | 12.3 | 15.1 | 12.3 |
--------------------------------------------------------------------------------
| Minority share | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Total equity | 14.2 | 15.1 | 12.3 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 0.9 | 0.7 | 0.8 |
--------------------------------------------------------------------------------
| Provisions | 0.4 | 0.4 | 0.4 |
--------------------------------------------------------------------------------
| Intrest bearing debt | 13.8 | 20.9 | 15.6 |
--------------------------------------------------------------------------------
| Non-intrest bearing debt | 0.5 | 0.6 | 1.0 |
--------------------------------------------------------------------------------
| | 15.6 | 22.6 | 17.8 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Trade and other payables | 15.6 | 16.6 | 14.3 |
--------------------------------------------------------------------------------
| Tax liabilities | 0.0 | | 0.0 |
--------------------------------------------------------------------------------
| Intrest bearing debt | 4.0 | 2.3 | 4.0 |
--------------------------------------------------------------------------------
| | 19.6 | 18.9 | 18.3 |
--------------------------------------------------------------------------------
| Total liabilities | 35.3 | 41.5 | 36.0 |
--------------------------------------------------------------------------------
| Total equity and liabilities | 49.5 | 56.6 | 48.4 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| STATEMENT OF CHANGES IN EQUITY | |
| (unaudited) | |
--------------------------------------------------------------------------------
| 1000 | Equity attributable to equity holders of the | | | |
| EUR | parent | | | |
--------------------------------------------------------------------------------
| | a) | b) | c) | d) | e) | f) | g) | Total | h) | Total |
| | | | | | | | | | | equit |
| | | | | | | | | | | y |
--------------------------------------------------------------------------------
| Total | 7,4 | 520 | 5,3 | | 27 | -1,12 | 3,819 | 16,05 | 9 | 16,06 |
| equity | 98 | | 16 | | | 4 | | 6 | | 5 |
| 1.1.200 | | | | | | | | | | |
| 9 | | | | | | | | | | |
--------------------------------------------------------------------------------
| Purchas | | | | | | -14 | | -14 | | -14 |
| e of | | | | | | | | | | |
| own | | | | | | | | | | |
| shares | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | | 41 | | -955 | -914 | -1 | -915 |
| compreh | | | | | | | | | | |
| ensive | | | | | | | | | | |
| income | | | | | | | | | | |
| for the | | | | | | | | | | |
| period | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 7,4 | 520 | 5,3 | | 68 | -1,13 | 2,864 | 15,12 | 8 | 15,13 |
| equity | 98 | | 16 | | | 8 | | 8 | | 6 |
| 31.3.20 | | | | | | | | | | |
| 09 | | | | | | | | | | |
--------------------------------------------------------------------------------
| | a) | b) | c) | d) | e) | f) | g) | Total | h) | Total |
| | | | | | | | | | | equit |
| | | | | | | | | | | y |
--------------------------------------------------------------------------------
| Total | 7,4 | 520 | 5,3 | | 29 | -1,13 | 82 | 12,30 | 9 | 12,31 |
| equity | 98 | | 16 | | | 8 | | 7 | | 6 |
| 1.1.201 | | | | | | | | | | |
| 0 | | | | | | | | | | |
--------------------------------------------------------------------------------
| Share | 2,4 | | | 1,0 | | | | 3,480 | | 3,480 |
| issue | 00 | | | 88 | | | | | | |
--------------------------------------------------------------------------------
| Proceed | | | | | | 758 | -414 | 344 | | 344 |
| s from | | | | | | | | | | |
| sale of | | | | | | | | | | |
| own | | | | | | | | | | |
| shares | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | | | | | 77 | | -2,00 | -1,92 | 0 | -1,92 |
| compreh | | | | | | | 0 | 3 | | 3 |
| ensive | | | | | | | | | | |
| income | | | | | | | | | | |
| for the | | | | | | | | | | |
| period | | | | | | | | | | |
--------------------------------------------------------------------------------
| Total | 9,8 | 520 | 5,3 | 1,0 | 106 | -380 | -2,33 | 14,20 | 9 | 14,21 |
| equity | 98 | | 16 | 88 | | | 2 | 8 | | 7 |
| 31.3.20 | | | | | | | | | | |
| 10 | | | | | | | | | | |
--------------------------------------------------------------------------------
a) Share capital
b) Premium fund
c) Reserve fund
d) Unrestricted equity reserve
e) Translation difference
f) Own shares
g) Retained earnings
h) Minority interest
--------------------------------------------------------------------------------
| CONSOLIDATED CASH FLOW STATEMENT | 1.1.- | 1.1.- | 1.1.- |
| (Unaudited) | 31.3.2010 | 31.3.2009 | 31.12.2009 |
--------------------------------------------------------------------------------
| (MEUR) | | | |
--------------------------------------------------------------------------------
| Cash flow from operations | -1.1 | 0.1 | 1.4 |
--------------------------------------------------------------------------------
| Cash flow from investments, net | -0.3 | -0.5 | -1.1 |
--------------------------------------------------------------------------------
| Total cash flow from financing | 1.6 | 1.4 | -0.2 |
--------------------------------------------------------------------------------
| Share issue | 3.5 | | |
--------------------------------------------------------------------------------
| Increase in credit capital | | 5.0 | 6.3 |
--------------------------------------------------------------------------------
| Decrease in credit capital | -2.1 | -3.5 | -6.2 |
--------------------------------------------------------------------------------
| Other financial items | -0.1 | -0.1 | -0.3 |
--------------------------------------------------------------------------------
| Change in liquid assets | 0.2 | 1.0 | 0.1 |
--------------------------------------------------------------------------------
| Liquid assets at the beginning | 1.7 | 1.6 | 1.6 |
| of period | | | |
--------------------------------------------------------------------------------
| Liquid assets at the end of | 1.9 | 2.6 | 1.7 |
| period | | | |
--------------------------------------------------------------------------------
NOTES TO THE REPORT
Calculation methods:
This Interim Consolidated Financial Statement has been prepared in compliance
with the recognition and measurement policies of the IFRS, but requirements of
34 standards has not been fully followed. The principles adhered to in preparing
the annual financial statements for 2009 also apply to this interim report. New
revised standards or interpretations have no bearing on this interim report. The
figures have not been examined by the auditor.
Honkarakenne has one operating segment, the manufacture, sales and marketing of
log houses under the Honka brand. Geographically, the sales of the Group are
divided as follows: Finland; Central Europe; Far East; other countries. The
internal reporting of the management is in line with IFRS reporting. For this
reason, separate reconciliations are not presented.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| TANGIBLE ASSETS | Tangible |
--------------------------------------------------------------------------------
| (MEUR) | assets |
--------------------------------------------------------------------------------
| (Unaudited) | |
--------------------------------------------------------------------------------
| Acquisition cost 1.1.2010 | 66.9 |
--------------------------------------------------------------------------------
| Translation difference (+/-) | 0.1 |
--------------------------------------------------------------------------------
| Increase | 0.2 |
--------------------------------------------------------------------------------
| Decrease | -0.0 |
--------------------------------------------------------------------------------
| Transfers between balance sheet items | -0.0 |
--------------------------------------------------------------------------------
| Acquisition cost 31.03.2010 | 67.2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Accumulated depreciation 1.1.2010 | -42.7 |
--------------------------------------------------------------------------------
| Translation difference (+/-) | -0.1 |
--------------------------------------------------------------------------------
| Disposals and reclassifications | -0.1 |
--------------------------------------------------------------------------------
| Depreciation for the period | -0.8 |
--------------------------------------------------------------------------------
| Accumulated depreciation 31.03.2010 | -43.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Book value 1.1.2010 | 24.3 |
--------------------------------------------------------------------------------
| Book value 31.03.2010 | 23.5 |
--------------------------------------------------------------------------------
Own shares
Honkarakenne hasn't acquired its own B shares during the period under review. In
connection with the directed issue, Honkarakenne sold some of the equity shares
that it held to a restricted circle of the company's key personnel. The number
of shares sold was 118,500 at EUR 2.90 per share.
--------------------------------------------------------------------------------
| CONTINGENT LIABILITIES | | |
--------------------------------------------------------------------------------
| (Unaudited) | | |
--------------------------------------------------------------------------------
| MEUR | 31.3.2010 | 31.3.2009 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| For own loans | | |
--------------------------------------------------------------------------------
| - Mortgages | 25.68 | 25.5 |
--------------------------------------------------------------------------------
| - Pledged shares | | 0.36 |
--------------------------------------------------------------------------------
| - Other quarantees | 3.55 | 3.14 |
--------------------------------------------------------------------------------
| For others | | |
--------------------------------------------------------------------------------
| - Guarantees | 0.82 | 1.09 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Leasing liabilities | 0.65 | 0.99 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Rent liabilities | 0.07 | 0.17 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Nominal values of forward exchange | 2.30 | 2.17 |
| contracts | | |
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| Derivative contracts | 0.33 | 0.31 |
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Events in the circle of acquaintances
The circle of acquaintances consists of subsidiaries associated companies and
the company's management. The management included in the circle of acquaintances
comprises the Board of Directors, CEO and the company's managing committee.
There haven't been transactions with acquaintances during the reporting period.
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| KEY INDICATORS | | 1-3 | 1-3 | 1-12 |
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| (Unaudited) | | 2010 | 2009 | 2009 |
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| Earnings/share (EPS) | eur | -0.47 | -0.27 | -1.05 |
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| Return on equity | % | -13.6 | -6.1 | -26.3 |
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| Equity ratio | % | 33.6 | 30.9 | 28.8 |
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| Shareholders | eur | 2.9 | 4.3 | 3.5 |
| equity/share | | | | |
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| Net debt | MEUR | 15.9 | 20.6 | 18.4 |
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| Gearing | % | 112.1 | 135.9 | 149.0 |
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| Gross investments | MEUR | 0.2 | 0.7 | 2.5 |
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| | % of net sales | 2.4 | 6.1 | 4.8 |
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| Order book | MEUR | 21.2 | 19.8 | 23.0 |
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| Average number of | Staff | 160 | 193 | 170 |
| personnel | | | | |
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| | Workers | 174 | 200 | 181 |
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| | Total | 334 | 393 | 351 |
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Due to the issue of new shares, the historical indicators by share have been
corrected using the following formula: average number of shares x 1.01.
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| CALCULATION OF KEY INDICATORS | |
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| | Profit for the period attributable to equity | |
| | holders of parent | |
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| Earnings/share | ----------------------------------------- | |
| (EPS) | | |
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| | Average number of outstanding shares | |
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| | Profit before taxes - taxes | |
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| Return on equity % | ----------------------------------------- | x 100 |
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| | Total equity, average | |
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| | Total equity | |
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| Equity ratio, % | ----------------------------------------- | x 100 |
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| | Balance sheet total - advances received | |
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| Net debt | Interest-bearing debt - cash and cash | |
| | equivalents | |
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| | Interest-bearing debt - cash and cash | |
| | equivalents | |
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| Gearing, % | ----------------------------------------- | x 100 |
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| | Total equity | |
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| | Shareholders' equity | |
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| Shareholders | ----------------------------------------- | |
| equity/share | | |
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| | Number of shares outstanding at end of period |
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