Vaahto Group Interim Management Statement 1 January – 14 November 2013
VAAHTO GROUP PLC OYJ STOCK EXCHANGE RELEASE 14.11.2013 at 10.00
VAAHTO GROUP INTERIM MANAGEMENT STATEMENT 1 JANUARY – 14 NOVEMBER 2013
Turnover from Vaahto Group’s continuing operations for January 1, 2013 to September 30, 2013 was 31.4 million euros (compared with 23.1 million euros for the corresponding period in the previous fiscal year), with an operating profit of 0.2 million euros (operating loss of 2.7 million euros). Turnover increased 36 % from the reference period and the operating result was positive. The Group’s order book for continuing operations on September 30, 2013 totaled 13.2 million euros (19.3 million euros).
Vaahto Paper Technology
Turnover from Vaahto Paper Technology -division’s continuing operations for January 1, – September 30, 2013 was 7.7 million euros (9.2 million euros) with an operating loss of 1.6 million euros (operating loss of 2.4 million euros). Turnover decreased 16 % from the reference period’s level, but the operating result improved by 0.8 million euros, remaining still negative. The main reason for the negative result of the Vaahto Paper Technology –division was the low level of activity. The market situation for the service business has continued moderate.
Vaahto Group has initiated a program to intensify operations and improve the profitability of the Paper Technology group. Both in Tampere and Kokkola units, organizational changes are being made in order to achieve synergies, to respond to the changes in the market and to find comprehensive solutions to customer needs.
In accordance with the preliminary contract signed on 16 January 2013, the sale of Vaahto Paper Technology’s Project –business unit and the spare-parts and small-projects operations belonging to the company’s Service unit to the German firm Gebr. Bellmer GmbH Maschinenfabrik was completed on 15 April 2013. The operating loss from discontinuing operations for January 1 – September 30, 2013 was 1.5 million euros (operating loss 1.2 million euros).
Vaahto Process Technology
Vaahto Process Technology -division’s turnover for January 1, 2013 – September 30, 2013 was 23.7 million euros (13.8 million euros), with an operating profit of 1.8 million euros (operating loss 0.3 million euros). Turnover increased by 72 % from the reference period’s level, operating result being positive and 7.6 % of the turnover. The reasons behind the success were constant order income and the expected realization of the delivered projects.
The market situation of Vaahto Process Technology –division has remained stable and the demand has continued to be moderate.
Authorization of the Board of Directors to decide on a share issue
The Annual General Meeting on April 10, 2013 authorized the Board to decide on an issue of new shares in one or several lots. The number of new shares issued would be no more than 2,000,000. The maximum number for the proposed authorization concerning the shares corresponds to approximately 50 percent of the total number of shares in the company.
The authorization entitles the Board to decide on all the terms of the share issue, including the right to deviate from the shareholders’ subscription privilege.
The sale of Vaahto Group’s Project Business
The arrangement announced by Vaahto Group on 16 January 2013 and 27 March 2013 regarding the sale of Vaahto Paper Technology group’s projects business and the spare part and small projects businesses belonging to its services business to Gebr. Bellmer GmbH Maschinenfabrik of Germany was completed on 15 April 2013. In connection with the transfer of the Business, personnel relating to the Business, 56 employees in Hollola and 16 employees in Tampere transferred to Bellmer.
Outlook for the fiscal year of 2013
The development of the international economy shows no signs of improvement, and the market situation of Vaahto Group’s main customer industries remains challenging. Vaahto Group’s financing situation remains tight and involves significant risks. The Board of Directors is currently in negotiations with the credit institutions to improve liquidity and equity ratio. However, Vaahto Group’s operational result for the fiscal year 2013 is expected to increase substantially from that of the previous financial period and to be clearly positive for continuing operations.
Lahti 14, November 2013
VAAHTO GROUP PLC OYJ
The Board of Directors
CEO, Vaahto Group Plc Oyj
tel. +358 400 127664
Vaahto Group is a globally operating high technology company serving process industry in the fields of pulp and paper machinery and process machinery.