HONKARAKENNE OYJ INTERIM REPORT 8 NOVEMBER 2012 1.15 PM
HONKARAKENNE OYJ’S INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2012
SUMMARY
July - September 2012
- Honkarakenne Group’s consolidated net sales for the third quarter of the year amounted to MEUR 12.3 (MEUR 13.9 in 2011), representing a reduction over the same period the previous year of 11 %.
- Operating result was MEUR 0.5 (MEUR 1.0). Operating result before non-recurring items was MEUR 0.5 (MEUR 1.0).
- Result before taxes was MEUR 0.4 (MEUR 0.5).
- Earnings per share amounted to EUR 0.04 (EUR 0.09).
- At the end of September, the Group’s order book stood at MEUR 19.0, which is a 15 % increase from the MEUR 16.5 of the same time period in the previous year.
January - September 2012
- Honkarakenne Group’s consolidated net sales for January-September amounted to MEUR 32.3 (MEUR 41.4), representing a reduction over the same period the previous year of 22 %.
- Operating result was MEUR -1.3 (MEUR 2.0). Operating result before non-recurring items was MEUR -1.3 (MEUR 1.7).
- Result before taxes was MEUR -1.6 (MEUR 1.5).
- Earnings per share amounted to EUR -0.25 (EUR 0.27).
- Equity ratio 53 % (52 %)
- Gearing 21 % (38 %)
Honkarakenne repeats its previous guidance that the net sales and profit before taxes in 2012 will be lower than the previous year. Today, Honkarakenne has decided to convene negotiations under the act on co-operation with the aim of consolidating production structure and operations. It is possible that due to co-operational negotiations there might be non-recurring write-offs and restructuring costs which are not included in current guidance. Possible costs and write-offs will be specified during the co-operational negotiations.
| KEY FIGURES |
7-9/ 2012 |
7-9/ 2011 |
1-9/ 2012 |
1-9/ 2011 |
Change % |
1-12/ 2011 |
| Net sales, MEUR | 12.3 | 13.9 | 32.3 | 41.4 | -22 | 55.0 |
| Operating result, MEUR | 0.5 | 1.0 | -1.3 | 2.0 | 1.9 | |
| Operating result before non-recurring items, MEUR | 0.5 | 1.0 | -1.3 | 1.7 | 1.6 | |
| Result before taxes, MEUR | 0.4 | 0.5 | -1.6 | 1.5 | 1.1 | |
| Average number of personnel | 257 | 266 | 258 | 266 | 265 | |
| Earnings/share (EPS), EUR | 0.04 | 0.09 | -0.25 | 0.27 | 0.17 | |
| Equity ratio, % | 52.5 | 52.4 | 52.6 | |||
| Return on equity, % | -6.8 | 7.3 | 4.6 | |||
| Shareholders' equity/share, EUR | 3.4 | 3.8 | 3.7 | |||
| Gearing, % | 21.2 | 37.8 | 34.5 |
Mikko Kilpeläinen, President and CEO of Honkarakenne Oyj, in connection with the interim report:
“The Group’s net sales have remained at an unsatisfactory level throughout the first three quarters of the year. The company has been unable to expedite sales in the desired manner. However, the Group’s order book is higher than in the corresponding period of 2011, which is satisfactory in light of the market situation.
We are prepared to initiate major changes in order to facilitate a turnaround in unsatisfactory trends. Today, Honkarakenne has decided to analyse the potential for reducing the number of locations, with the aim of consolidating operations in Finland. The aim is to significantly enchance operations and improve the company’s competitiveness. Negotiations under the act on co-operation are believed to be completed by the end of December.
In October, we announced that we would be streamlining our operations by focusing on strategically selected main market areas and customer segments. The central task of the new Executive Group, which was appointed by the Board of Directors on 25 October 2012, will be to hone the company’s operations in potential growth areas in particular. From now on, all operations are based on taking advantage of these selected growth areas.”
NET SALES
Honkarakenne Group’s consolidated net sales for the third quarter of 2012 decreased by 11 % to MEUR 12.3 (13.9). The net sales in Finland decreased by 14 % to MEUR 5.2 (6.2). In export, net sales decreased by 7 % to MEUR 6.9 (7.4).
Honkarakenne Group's consolidated net sales for January-September 2012 were MEUR 32.3, compared to MEUR 41.4 in the same period the previous year.
Geographical distribution of net sales:
| DEVELOPMENT OF SALES | ||||||
|
Distribution of net sales, % |
1-9 /2012 |
1-9 /2011 |
||||
| Finland | 44 % | 44 % | ||||
| West | 15 % | 15 % | ||||
| East | 25 % | 24 % | ||||
| Far East | 13 % | 11 % | ||||
| Other markets | 2 % | 3 % | ||||
| Process waste sales for recycling | 2 % | 3 % | ||||
| Total | 100 % | 100 % | ||||
| Net sales, MEUR |
7-9 /2012 |
7-9 /2011 |
Change % |
1-9 /2012 |
1-9 /2011 |
Change % |
| Finland | 5.2 | 6.2 | -14 % | 14.2 | 18.2 | -21 % |
| West | 1.8 | 2.1 | -16 % | 4.8 | 6.1 | -22 % |
| East | 3.5 | 3.2 | +8 % | 8.0 | 9.9 | -19 % |
| Far East | 1.2 | 1.9 | -34 % | 4.1 | 4.5 | -9 % |
| Other markets | 0.4 | 0.1 | 75 % | 0.7 | 1.4 | -52 % |
| Process waste sales for recycling | 0.2 | 0.4 | -51 % | 0.5 | 1.3 | -62 % |
| Total | 12.3 | 13.9 | -11.5 % | 32.3 | 41.4 | -22 % |
West, includes the following countries: Netherlands, Belgium, Spain, Ireland, Great Britain, Iceland, Italy, Austria, Greece, Cyprus, Latvia, Lithuania, Luxembourg, Norway, Portugal, Poland, France, Sweden, Germany, Slovakia, Slovenia, Switzerland, Denmark, Czech Republic, Hungary and Estonia.
East, includes the following countries: Azerbaijan, Kazakhstan, Ukraine, Russia and other CIS countries.
Far East, includes South Korea and Japan.
Other markets, includes the following countries: Bulgaria, China, Croatia, Mongolia, North and South America, Romania, Serbia, Turkey as well as new target countries and markets.
In addition, the sales of factory process waste for recycling will be reported separately from the actual Honkarakenne core business operations.
DEVELOPMENT OF RESULT AND PROFITABILITY
Operating result in January–June was MEUR -1.3 (MEUR 2.0), and result before taxes was MEUR -1.6 (MEUR 1.5). Operating result without non-recurring items in January-September was MEUR -1.3 (MEUR 1.7).
The change in the operating result was due to lower net sales than in 2011, as well as investments in marketing, training the Group’s sales network, and developing operations in Japan. The result for the comparison period was improved by a non-recurring item of MEUR 0.3 from the divestment of our holding in Karjalan Lisenssisaha Invest Oy.
FINANCING AND INVESTMENTS
In the course of the period under review, the financial position of the Group remained satisfactory. The equity ratio stood at 53 % (52 %) and interest-bearing net liabilities at MEUR 3.5 (MEUR 7.0). MEUR 2.1 (2.4) of the interest-bearing net liabilities carries a 30 % equity ratio covenant term. Group liquid assets totalled MEUR 2.9 (MEUR 2.4). The Group also has a MEUR 8.0 (MEUR 10.0) bank overdraft facility, MEUR 0.0 (MEUR 2.3) of which had been drawn on at the end of the report period. Gearing stood at 21 % (38 %). The Group’s capital expenditure totalled MEUR 0.9 (MEUR 0.6).
MARKET DEVELOPMENT
Based on a report commissioned by RTS Oy, Finnish log house production is expected to decrease by 7 % this year. The figure includes production for Finland and for export.
PRODUCTS AND MARKETING
In Finland, our third-quarter operations concentrated on campaigns offering construction benefits to those who made quick purchase decisions. We strengthened our network of representatives and continued representatives’ competence training. We also continued to revamp the content of our websites in line with our strategy.
In the West, we ran a 20th-anniversary campaign in Germany. In France, we invested in trade fair visibility among those building detached houses. New sales locations were opened in this market area.
In the East, we improved the coverage of our sales network with the addition of new retailers. In Russia, Honkarakenne received an award for a project construction site encompassing 22 luxury detached houses.
In the Far East, a new sales office was opened in the 2011 earthquake area in Japan. We invested in marketing communications in the press, as well as marketing co-operation with Finnish brands.
In our Other Markets, we focused on individual major project sites.
RESEARCH AND DEVELOPMENT
Honkarakenne was granted PEFC certification, which indicates that the company employs a PEFC-approved mechanism for tracking the origin of timber.
In the January–September period, the Group's R&D expenditure totalled MEUR 0.3 (MEUR 0.4), representing 0.8 % of net sales (1.0 %). The Group did not capitalise any development expenditure during the report period.
STAFF AND MANAGEMENT
At the end of the September, the Group employed 258 people (266) on average. This is 8 less than at the same time in the previous year.
At the end of the third quarter, Honkarakenne held negotiations under the act on co-operation. The negotiations were a continuation of the company’s adjustment measures, which seek to safeguard competitiveness in view of seasonal fluctuations and sales trends. As a result of these negotiations, Honkarakenne’s personnel can be temporarily laid off for a maximum of 90 days until the end of April 2013. Another 36 employees have already been laid off for an indefinite period as a result of the negotiations that were held in the first quarter.
The company’s CEO, Esa Rautalinko, resigned on 27 January 2012. On 2 February 2012, the Board of Directors appointed the company’s CFO, Mikko Jaskari, as acting CEO. On 7 May 2012, the Board appointed Mikko Kilpeläinen as the new CEO. Mikko Kilpeläinen took up his new position on 1 August 2012.
HONKARAKENNE OYJ’S 2012 ANNUAL GENERAL MEETING, BOARD OF DIRECTORS, AND AUDITORS
The Annual General Meeting (AGM) of Honkarakenne Oyj was held at the company’s headquarters in Tuusula on 30 March 2012. The AGM confirmed the financial statements of the parent company and Group, and discharged from liability the board members and CEO for 2011. The AGM decided that no dividends be paid for the 2011 financial year. The AGM decided that a repayment of capital totalling EUR 0.08 per share be paid from the Fund for invested unrestricted equity.
Anders Adlercreutz, Lasse Kurkilahti, Mauri Saarelainen, Marko Saarelainen, Mauri Niemi, Teijo Pankko, and Pirjo Ruuska were re-elected to the Board of Directors. The Board’s organisation meeting elected Lasse Kurkilahti the Chairman of the Board. Mauri Saarelainen will serve as the Deputy Chairman. Board of Directors decided not to set up any committees.
KPMG Oy Ab, Corporation of Authorized Public Accountants, was reappointed as auditor of the company with Mr Reino Tikkanen, APA, as chief auditor.
HONKARAKENNE OYJ’S OWN SHARES AND AUTHORISATIONS OF THE BOARD OF DIRECTORS
Honkarakenne has not acquired its own shares during the report period. At the end of the report period, the Group held 364,385 of its Honkarakenne B shares with a total purchase price of EUR 1,381,750.23. These shares represent 7.05 % of the company's capital stock and 3.35 % of all votes. The purchase cost has been deducted from shareholders' equity in the consolidated financial statements.
On 30 March 2012, the AGM decided that the Board of Directors will be authorised to acquire a maximum of 400,000 of the company’s own B shares with assets included in the company’s unrestricted equity. In addition, the AGM authorised the Board to decide on a rights issue or bonus issue and on granting special rights to shares referred to in Section 1 of Chapter 10 of the Limited Liability Companies Act in one or more instalments. By virtue of the authorisation, the Board may issue a maximum total of 400,000 new shares and/or relinquish old B shares held by the company, including those shares that can be issued by virtue of special rights. Both authorisations will be valid until 25 March 2013.
TRANSFERRING THE RESERVE FUND’S ASSETS TO THE INVESTED UNRESTRICTED EQUITY FUND
As decided in the AGM on 30 March 2012 the reserve fund recognised on the balance sheet on 31 December 2011 has been reduced by the sum of EUR 5,316,389.64, by transferring all of the reserve fund’s assets to the invested unrestricted equity fund. The transfer of the reserve fund’s assets to the invested unrestricted equity fund enhances the flexibility of the company’s capital structure and increases distributable equity.
OWNERSHIP CHANGES IN GROUP COMPANIES
On 29 March 2012 Honkarakenne redeemed the shares of Honka Management Oy previously owned by Esa Rautalinko based on the shareholders’ agreement. Even before this redeeming Honkarakenne Oyj has had control of Honka Management Oy based on the shareholders’ agreement and the company has also previously been included in the consolidated financial statements.
CORPORATE GOVERNANCE
Honkarakenne Oyj follows the Limited Liability Companies Act and the Finnish Corporate Governance Code, 1 October 2010, for listed companies issued by the Finnish Securities Market Association. The company's website, www.honka.com, provides more information on the corporate governance systems.
FUTURE OUTLOOK
The market situation is unstable. General economic uncertainty factors, such as the personnel reductions that have been carried out in several market areas, are being reflected in customers’ unwillingness to make decisions on major construction projects. Sales are still being affected by longer sales times and a dearth of long-term pre-orders.
At the end of September, the Group’s order book stood at MEUR 19.0, which is a 15 % increase from the MEUR 16.5 of the same time period in the previous year. The order book refers to orders whose delivery date falls within the next 24 months. Some orders may include a financing or building permit condition.
FORTHCOMING RISKS AND UNCERTAINTIES
Although the Group’s order book is 15 % better than last year, there is a risk that the Group will not be able to expedite sales in the desired manner. Customers are taking longer to decide on investments due to general economic uncertainty.
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 and open sales receivables have been amortised as per the agreement. Deliveries to the importer have continued, and the risks with the open sales receivables have not increased.
The assessment of amounts in the balance sheet is based on current assessment by the management. If these assessments are changed, this may result in changes to the Group's result.
REPORTING
This report contains statements that relate to the future, and these statements are based on hypotheses that the company's management hold currently as well as on 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 has been prepared in line with the IFRS principles of bookkeeping and assessment, but it does not meet all of the requirements of standard IAS 34 (Interim Financial Reporting). The interim report should be read together with the accounts for 2011. The new revised standards or interpretations effective as of 1 January 2012 have no bearing on the figures presented for the report period. The figures have not been examined by the auditor.
EVENTS AFTER THE REVIEW PERIOD
On 25 October 2012, Honkarakenne’s Board of Directors appointed a new Executive Group, which consists of the following: Mikko Kilpeläinen, CEO; Mikko Jaskari, CFO; Sami Leinonen, Business Area Finland & Baltics; Pekka Elo, Business Area Global Markets; Sanna Wester, Marketing, Planning and R&D; and Reijo Virtanen, Operations. In addition a new executive for Business Area Russia & CIS will be appointed later. The company is focusing on strategically selected main market areas and customer segments. With the appointment of the new Executive Group, the company now has three business areas that are responsible for their own sales, customer relations and business development. Marketing, planning and R&D processes will be combined to boost the efficiency of processes and enable even more customer-oriented service.
The net sales information with the new sales area division in year 2012:
| Net sales, MEUR |
1-3 /2012 |
4-6 /2012 |
7-9 /2012 |
1-9 /2012 |
||
| Finland & Baltics | 3.3 | 6.2 | 5.4 | 15.0 | ||
| Russia & CIS | 1.0 | 3.6 | 3.5 | 8.0 | ||
| Global Markets | 2.7 | 3.2 | 3.4 | 9.4 | ||
| Total | 7.0 | 13.0 | 12.3 | 32.3 |
The net sales information with the new sales area division in year 2011:
| Net sales, MEUR |
1-3 /2011 |
4-6 /2011 |
7-9 /2011 |
1-9 /2011 |
10-12 /2011 |
1-12 /2011 |
|
| Finland& Baltics | 3.8 | 9.2 | 6.4 | 19.4 | 5.1 | 24.5 | |
| Russia& CIS | 2.9 | 3.8 | 3.2 | 9.9 | 4.0 | 13.9 | |
| Global Markets | 2.5 | 5.2 | 4.3 | 12.0 | 4.5 | 16.6 | |
| Total | 9.2 | 18.2 | 13.9 | 41.3 | 13.7 | 55.0 |
Finland & Baltics includes the following countries: Finland, Estonia, Latvia and Lithuania.
Russia & CIS includes the following countries: Russia, Azerbaijan, Kazakhstan, Ukraine and other CIS countries.
Global Markets includes other countries than above-mentioned.
On 8 November 2012, Honkarakenne’s Board of Directors decided to analyse the potential for reducing the number of locations, with the aim of consolidating operations in Finland. Negotiations under the act on co-operation are believed to be completed by the end of December.
OUTLOOK FOR 2012
Honkarakenne repeats its previous guidance that the net sales and profit before taxes in 2012 will be lower than the previous year. Today, Honkarakenne has decided to convene negotiations under the act on co-operation with the aim of consolidating production structure and operations. It is possible that due to co-operational negotiations there might be non-recurring write-offs and restructuring costs which are not included in current guidance. Possible costs and write-offs will be specified during the co-operational negotiations.
HONKARAKENNE OYJ
Board of Directors
Further information:
Mikko Kilpeläinen, President and CEO, tel. +358 50 542 5884, mikko.kilpelainen@honka.com or
Mikko Jaskari, CFO, tel. +358 400 535 337, mikko.jaskari@honka.com.
This and previous releases are available for viewing on the company's website at www.honka.com.
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
Financial Supervisory Authority
www.honka.com
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||
| (unaudited) | 7-9 /2012 | 7-9 /2011 | 1-9 /2012 | 1-9 /2011 | 1-12 /2011 |
| (MEUR) | |||||
| Net sales | 12.3 | 13.9 | 32.3 | 41.4 | 55.0 |
| Other operating income | 0.0 | 0.0 | 0.6 | 0.8 | 1.1 |
| Change in inventories | -0.4 | -0.4 | 0.5 | -0.3 | -2.0 |
| Production for own use | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Materials and services | -5.9 | -7.5 | -18.4 | -23.2 | -28.9 |
| Employee benefit expenses | -2.5 | -2.4 | -7.7 | -8.3 | -11.1 |
| Depreciations | -0.9 | -0.8 | -2.4 | -2.4 | -3.3 |
| Other operating expenses | -2.1 | -1.9 | -6.3 | -6.1 | -8.9 |
| Operating profit/loss | 0.5 | 1.0 | -1.3 | 2.0 | 1.9 |
| Financial income and expenses | -0.1 | -0.5 | -0.2 | -0.5 | -0.7 |
| Share of associated companies' result | -0.1 | -0.0 | -0.1 | -0.0 | -0.1 |
| Profit/loss before taxes | 0.4 | 0.5 | -1.6 | 1.5 | 1.1 |
| Taxes | -0.2 | -0.1 | 0.4 | -0.2 | -0.3 |
| Result for the period | 0.2 | 0.4 | -1.2 | 1.3 | 0.8 |
| Other comprehensive income: | |||||
| Translation differences | 0.0 | 0.0 | 0.0 | 0.1 | 0.1 |
|
Total comprehensive income for the period |
0.2 | 0.4 | -1.2 | 1.4 | 1.0 |
| Result for the period attributable to: | |||||
| Equity holders of the parent | 0.2 | 0.4 | -1.2 | 1.3 | 0.8 |
| Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 0.2 | 0.4 | -1.2 | 1.3 | 0.8 | |
| Comprehensive income attributable to: | |||||
| Equity holders of the parent | 0.2 | 0.4 | -1.2 | 1.4 | 1.0 |
| Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| 0.2 | 0.4 | -1.2 | 1.4 | 1.0 | |
|
Calculated from the result for the period attributable to equity holders of parent Earnings/share (EPS), EUR |
|||||
| Basic | 0.04 | 0.09 | -0.25 | 0.27 | 0.17 |
| Diluted | 0.04 | 0.09 | -0.25 | 0.27 | 0.17 |
|
CONSOLIDATED BALANCE SHEET (unaudited) |
30.9.2012 | 30.9.2011 | 31.12.2011 |
| (MEUR) | |||
| Assets | |||
| Non-current assets | |||
| Property, plant and equipment | 17.0 | 20.0 | 19.0 |
| Goodwill | 0.1 | 0.1 | 0.1 |
| Other intangible assets | 0.8 | 0.8 | 0.7 |
| Investments in associated companies | 0.2 | 0.3 | 0.3 |
| Other investments | 0.1 | 0.2 | 0.2 |
| Receivables | 0.3 | 0.2 | 0.3 |
| Deferred tax assets | 1.4 | 1.4 | 1.1 |
| 19.9 | 22.9 | 21.7 | |
| Current assets | |||
| Inventories | 7.2 | 8.9 | 7.1 |
| Trade and other receivables | 7.2 | 7.5 | 7.7 |
| Cash and bank receivables | 2.9 | 2.4 | 2.6 |
| 17.4 | 18.9 | 17.3 | |
| Total assets | 37.3 | 41.8 | 39.0 |
| Shareholders' equity and liabilities | 30.9.2012 | 30.9.2011 | 31.12.2011 |
|
Equity attributable to equity holders of the parent |
|||
| Capital stock | 9.9 | 9.9 | 9.9 |
| Share premium | 0.5 | 0.5 | 0.5 |
| Reserve fund | 0.0 | 5.3 | 5.3 |
| Unrestricted equity reserve | 6.8 | 1.9 | 1.9 |
| Translation differences | 0.5 | 0.4 | 0.5 |
| Retained earnings | -1.4 | 0.3 | -0.2 |
| 16.3 | 18.3 | 17.9 | |
| Non-controlling interests | 0.2 | 0.2 | 0.2 |
| Total equity | 16.5 | 18.6 | 18.1 |
| Non-current liabilities | |||
| Deferred tax liabilities | 0.0 | 0.3 | 0.2 |
| Provisions | 0.3 | 0.4 | 0.3 |
| Interest bearing debt | 5.1 | 4.4 | 5.1 |
| Non-interest bearing debt | 0.0 | 0.0 | 0.0 |
| 5.4 | 5.0 | 5.6 | |
| Current liabilities | |||
| Trade and other payables | 13.8 | 13.1 | 11.5 |
| Tax liabilities | 0.1 | 0.0 | 0.1 |
| Provisions | 0.2 | 0.0 | 0.0 |
| Interest bearing debt | 1.3 | 5.1 | 3.7 |
| 15.4 | 18.2 | 15.3 | |
| Total liabilities | 20.8 | 23.2 | 20.9 |
| Total equity and liabilities | 37.3 | 41.8 | 39.0 |
STATEMENT OF CHANGES IN EQUITY
(unaudited)
| 1000 EUR | Equity attributable to holders of the parent | |||||||||
| a) | b) | c) | d) | e) | f) | g) | Total | h) | Total equity | |
|
Total equity 1.1.2011 |
9898 |
520 |
5316 |
1896 |
319 |
-1378 |
771 | 17342 | 200 | 17542 |
| Dividends | -446 | -446 | -446 | |||||||
| Repurchase of own shares | -91 | -91 | -91 | |||||||
| Proceeds from sale of own shares | 87 | 4 | 91 | 91 | ||||||
| Total comprehensive income for the period | 112 | 1306 | 1418 | 46 | 1464 | |||||
|
Total equity 30.9.2011 |
9898 | 520 | 5316 | 1896 | 431 | -1382 | 1635 | 16330 | 246 | 18560 |
| a) | b) | c) | d) | e) | f) | g) | Total | h) | Total equity | |
|
Total equity 1.1.2012 |
9898 | 520 | 5316 | 1896 | 462 | -1382 | 1151 | 17859 | 242 | 18101 |
| Dividends | ||||||||||
| Repayment of capital | -384 | -384 | -384 | |||||||
| Reclassification | -5316 | 5316 | 0 | 0 | ||||||
| Repurchase of own shares | 0 | -35 | -35 | |||||||
| Total comprehensive income for the period | -3 | -1179 | -1182 | -4 | -1186 | |||||
|
Total equity 30.9.2012 |
9898 | 520 | 0 | 6828 | 459 | -1382 | -28 | 16293 | 202 | 16495 |
a) Share capital
b) Premium fund
c) Reserve fund
d) Unrestricted equity reserve
e) Translation difference
f) Own shares
g) Retained earnings
h) Non-controlling interests
|
CONSOLIDATED CASH FLOW STATEMENT (Unaudited) (MEUR) |
1.1.- 30.9.2012 |
1.1.- 30.9.2011 |
1.1.- 31.12.2011 |
| Cash flow from operations | 3.6 | 5.9 | 6.0 |
| Cash flow from investments, net | -0.3 | 0.4 | 0.9 |
| Total cash flow from financing | -2.9 | -5.8 | -6.3 |
| Increase in credit capital | 2.1 | 1.3 | 0.8 |
| Decrease in credit capital | -4.5 | -6.4 | -6.5 |
| Other financial items | -0.2 | -0.2 | -0.2 |
| Dividends paid | -0.4 | -0.5 | |
| Repayment of capital | -0.4 | ||
| Change in liquid assets | 0.4 | 0.5 | 0.7 |
| Liquid assets at the beginning of period | 2.6 | 1.9 | 1.9 |
| Liquid assets at the end of period | 2.9 | 2.4 | 2.6 |
NOTES TO THE REPORT
Calculation methods
This interim report has been prepared in line with the IFRS principles of bookkeeping and assessment, but it does not meet all of the requirements of standard IAS 34 (Interim Financial Reporting). The interim report should be read together with the accounts for 2011. The new revised standards or interpretations effective as of 1 January 2012 have no bearing on the figures presented for the report period. The figures have not been examined by the auditor.
Honka Management Oy, established year 2010 and owned by the top management of the company, has been included in the consolidated financial statements due to the terms and conditions of the shareholder agreement concluded between it and Honkarakenne Oyj.
Honkarakenne has one operating segment, the manufacture, sales and marketing of log houses, under the Honka brand. Geographically, the sales of the Group divide as follows: Finland, West, East, Far East, Other markets and Process waste sales for recycling. The internal reporting of the management is in line with IFRS reporting. For this reason, separate reconciliations are not presented.
| TANGIBLE ASSETS | |
| (Unaudited) | Tangible |
| (MEUR) | assets |
| Acquisition cost 1.1.2012 | 66.7 |
| Translation difference (+/-) | -0.1 |
| Increase | 0.6 |
| Decrease | -3.5 |
| Transfers between balance sheet items | -0.1 |
| Acquisition cost 30.9.2012 | 63.6 |
| Accumulated depreciation 1.1.2012 | -47.7 |
| Translation difference (+/-) | 0.1 |
| Disposals and reclassifications | 3.1 |
| Depreciation for the period | -2.2 |
| Accumulated depreciation 30.9.2012 | -46.7 |
| Book value 1.1.2012 | 19.0 |
| Book value 30.9.2012 | 17.0 |
Own shares
Honkarakenne Oyj has not acquired its own shares during the report period. At the end of the report period, the Group held 364,385 of its Honkarakenne B shares with a total purchase price of EUR 1,381,750.23. These shares represent 7.05% of the company's capital stock and 3.35% of all votes. The purchase cost for own shares has been entered in the consolidated accounts to reduce the Group’s shareholders’ equity.
| CONTINGENT LIABILITIES | |||
| (Unaudited) | 30.9.2012 | 30.9.2011 | 31.12.2011 |
| MEUR | |||
| For own loans | |||
| - Mortgages | 25.7 | 25.7 | 23.7 |
| - Other quarantees | 1.7 | 0.2 | 1.8 |
| For others | |||
| - Guarantees | 0.2 | 0.2 | 0.2 |
| Leasing liabilities | 0.3 | 1.0 | 0.4 |
|
Nominal values of forward exchange contracts |
1.0 | 4.1 | 3.4 |
| Derivative contracts | 0.4 | 0.4 | 0.4 |
| KEY INDICATORS | ||||
| (Unaudited) | 1-9 | 1-9 | 1-12 | |
| /2012 | /2011 | /2011 | ||
| Earnings/share (EPS) | eur | -0.25 | 0.27 | 0.17 |
| Return on equity | % | -6.8 | 7.3 | 4.6 |
| Equity ratio | % | 52.5 | 52.4 | 52.6 |
| Shareholders equity/share | eur | 3.4 | 3.8 | 3.7 |
| Net debt | MEUR | 3.5 | 7.0 | 6.1 |
| Gearing | % | 21.2 | 37.8 | 34.5 |
| Gross investments | MEUR | 0.9 | 0.6 | 1.0 |
| % of net sales | 2.9 | 1.5 | 1.8 | |
| Order book | MEUR | 19.0 | 16.5 | 13.6 |
| Average number of personnel | Staff | 122 | 123 | 123 |
| Workers | 136 | 143 | 142 | |
| Total | 258 | 266 | 265 | |
| Adjusted number of shares | At year-end | 4805 | 4805 | 4805 |
| Average during period | 4805 | 4805 | 4805 |
|
CALCULATION OF KEY INDICATORS |
||
| Profit for the period attributable to equity holders of parent | ||
| Earnings/share (EPS) | --------------------------------------------- | |
| Average number of outstanding shares | ||
| Result before taxes – taxes | ||
| Return on equity% | --------------------------------------------- | x 100 |
| Total equity. average | ||
| Total equity | ||
| Equity ratio. % | --------------------------------------------- | x 100 |
| Balance sheet total - advances received | ||
| Net debt | Interest-bearing debt - cash and cash equivalents | |
| Interest-bearing debt - cash and cash equivalents | ||
| Gearing % | --------------------------------------------- | x 100 |
| Total equity | ||
| Shareholders’ equity | ||
| Shareholders equity/share | --------------------------------------------- | |
| Number of shares outstanding at end of period | ||