Vaahto Group Interim Management Statement 1 January – 16 May 2013
VAAHTO GROUP PLC OYJ STOCK EXCHANGE RELEASE 16.5.2013 at 10.00
VAAHTO GROUP INTERIM MANAGEMENT STATEMENT 1 JANUARY – 16 MAY 2013
Turnover from Vaahto Group’s continuing operations for January 1, 2013, to March 31, 2013, was 10,9 million euros (compared with 7,6 million euros for the corresponding period in the previous fiscal year), with an operating profit of 0,01 million euros (operating loss of 1,5 million euros). Turnover increased 43,0 % from the reference period and operating result was positive. The Group’s order book for continuing operations on March 31, 2013, totaled 19,3 million euros (January 1, 2013: 19,2 million euros).
Vaahto Paper Technology
Turnover from Vaahto Paper Technology -division’s continuing operations for January 1, – March 31, 2013, was 2,8 million euros (3,0 million euros), with an operating loss of 0,4 million euros (operating loss of 0,6 million euros). Turnover decreased from the reference period’s level, but the operating result was better. 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.
The Group made a preliminary contract in January 2013 for the sale of the Vaahto Paper Technology group’s Projects business and the spare part and small projects businesses belonging to its Services business. Because the sale was considered highly likely, assets and liabilities belonging to the project business are included on the balance sheet as long-term assets on sale and related debts. Project business is presented in the income statement as discontinuing operations. The operating loss from discontinuing operations for January 1 – March 31, 2013 was 1,0 million euros (loss of 0,2 million euros).
Vaahto Process Technology
Vaahto Process Technology -division’s turnover for January 1, 2013 – March 31, 2013, was 8,1 million euros (4,1 million euros), with an operating profit of 0,8 million euros (operating loss 0,3 million euros). Turnover increased by 98 % from the reference period’s level, operating result being positive and 9,4 % 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 been 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
No significant change, however, has occurred in total demand for Vaahto Group’s products in the first months of the new financial year, and the order book remains on the level of 19 million euros. Vaahto Group’s result is expected to increase substantially from that of the previous fiscal year and the operating result for the continuing operations is forecasted to be positive. The Group’s financing situation remains tight, and we need to continue our efforts to improve the profitability and solvency of Vaahto Group. However, due to the market development, which is difficult to forecast, the estimation for the fiscal year includes uncertainty.
Interim Report for January 1, – June 30, 2013
Vaahto Group will publish an Interim Report covering six months of operations on August 23, 2013.
Lahti 16, May 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.