Vaahto Group Plc Oyj Interim Report for September 1, 2008 – February 28, 2009
VAAHTO GROUP PLC OYJ INTERIM REPORT 17.4.2009 at 10.00
VAAHTO GROUP PLC OYJ INTERIM REPORT FOR SEPTEMBER 1, 2008 – FEBRUARY 28, 2009
Vaahto Group’s turnover for the period under review was 32.3 million euros (compared with 41.8 million euros for the corresponding period in the previous fiscal year), with an operating loss of 2.8 million euros (comparative: operating profit of 0.2 million euros). Turnover saw a decrease of 23% from that of the reference period, undermining the result significantly. Vaahto Group’s order backlog decreased during the period; it was 54.4 million euros at the beginning of the period and 43.2 million euros at the period end.
Pulp & Paper Machinery
The Pulp & Paper Machinery division’s turnover for the period under review was 18.7 million euros (23.3 million euros), with an operating loss of 3.5 million euros (operating loss of 1.8 million euros). The turnover decreased by 20% from that of the reference period, and the division’s result was unprofitable. Together with decreased turnover, the result was affected by poor profitability of projects entered in the accounts during the period under review.
The investment level for forest industry is very low globally, and the marketing environment for the Pulp & Paper division is extremely challenging. In this tough competitive situation the most significant new orders for the division were the board machine rebuilding for Stora Enso in Inkeroinen, and the headbox project for Stora Enso’s board machine in Imatra.
The Pulp & Paper Machinery division’s order backlog decreased during the period under review. However, the large orders received at the end of the previous fiscal year ensured that the division’s order backlog at the end of the review period was significantly larger than a year earlier. The results of these projects will be entered in the accounts mainly in the latter part of the current fiscal year.
In the period under review, the division took action to merge Vaahto Roll Service Oy, part of the division, with Vaahto Oy. The purpose of the merger is to simplify the Group’s structure, diminish expenses, and further develop the operations of the Vaahto Pulp & Paper Machinery division.
Process Machinery
The Process Machinery division’s turnover for the period under review was 14.2 million euros (18.5 million euros), with an operating profit of 0.7 million euros (2.0 million euros). The turnover decreased by 24% from that of the reference period, making the result lower than in the reference period.
The Process Machinery division’s market situation has deteriorated rapidly, and the order backlog has decreased for both tanks and agitators. The most significant deal made during the period under review was the order received by Japrotek Oy Ab for a nitric acid absorption tower for Uhde in Indonesia. The division still has a significant number of customer projects in the offer phase, but decisions on the realization of the projects have been delayed due to the current economic climate.
Research and development
The Group’s research and development activities concentrate for the most part on improving the competitiveness of the Pulp & Paper Machinery division’s key components for paper and board machines, and that of roll servicing. The scope of the Group’s R&D activities remained the same as in the previous fiscal period.
Investments
The Group’s capital expenditure for the period came to 2.4 million euros (1.1 million euros). The most significant investment was the acquisition of an FPT broaching drill for Vaahto Oy. Other investments consisted mainly of smaller machinery and equipment acquisitions and of investments in information systems.
Financing
The Group’s cash flow for the period under review was -1.7 million euros (2.6 million euros), with an investment cash flow of -2.4 million euros (-1.1 million euros). The increase in debt, including interest, was 6.7 million euros.
The total of the consolidated balance sheet was 46.7 million euros (45.9 million euros). The Group’s equity ratio decreased to 25.1% (35.4%).
Personnel
The number of Group personnel averaged 417 (427) over the period.
Share issue authorizations
The Board of Directors has no authority to issue new shares, convertible bonds, or bonds with warrants, nor the authorization to obtain or surrender shares.
International financial reporting standards
The interim report was drawn up in accordance with International Financial Reporting Standard (IFRS) IAS 34 (“Interim Financial Reporting”).
Forecast of developments
The international financial climate has led to great insecurity in the market and the postponement of investment decisions. The market situation is thus highly challenging, and Vaahto Group’s order backlog decreased in the period under review. During the period under review the Group companies have taken action to adjust their operations to the current demand and market situation.
The results of these projects will be entered in the accounts mainly in the latter part of the current fiscal year. The result for the second half of the fiscal year is expected to improve from the first half, but the turnover for the entire fiscal year will remain unprofitable.
Interim management statement
During the second half of the fiscal year lasting from September 1, 2008 to August 31, 2009, Vaahto Group Plc Oyj will publish an interim management statement instead of an interim report of operations during a nine month period. The interim management statement will be published on June 26, 2009.
| CONSOLIDATED INCOME STATEMENT, IFRS
1000 EUR |
Interim Report 1.9.2008- 28.2.2009 6 months |
Interim Report 1.9.2007- 29.2.2008 6 months |
Annual Report 1.9.2007- 31.8.2008 12 months |
|
|
|
|
|
| Net sales |
32 280 |
41 828 |
73 207 |
| Change in finished goods and work in progress |
-1 085 |
245 |
92 |
| Production for own use |
566 |
264 |
693 |
| Other operating income |
35 |
61 |
688 |
| Share of profits of affiliated companies |
25 |
14 |
14 |
| Material and services |
-17 369 |
-23 750 |
-39 404 |
| Employee benefit expenses |
-10 962 |
-11 519 |
-21 082 |
| Depreciations |
-1 467 |
-887 |
-2 220 |
| Other operating expenses |
-4 781 |
-6 051 |
-11 339 |
| Operating profit |
-2 758 |
204 |
649 |
| Financing income |
54 |
78 |
70 |
| Financing expenses |
-540 |
-339 |
-796 |
| Profit or loss before taxes |
-3 244 |
-57 |
-77 |
| Tax on income from operations |
843 |
86 |
396 |
| Profit or loss for the period |
-2 401 |
29 |
320 |
|
|
|
|
|
| Net profit or loss attributable: |
|
||
| To equity holders of the parent |
-2 372 |
-19 |
238 |
| To minority interest |
-28 |
47 |
82 |
| Total |
-2 401 |
29 |
320 |
|
|
|
|
|
| Earnings per share calculated on profit attributable to equity holders of the parent: |
|
||
| EPS undiluted, euros/share |
-0,83 |
-0,01 |
0,08 |
| EPS diluted, euros/share |
-0,83 |
-0,01 |
0,08 |
| Average number of shares (1000 shares) |
2 872 |
2 872 |
2 872 |
|
|
|
|
|
| CONSOLIDATED
BALANCE SHEET, IFRS 1000 EUR |
Interim Report 28.2.2009 |
Interim Report 29.2.2008 |
Annual Report 31.8.2008 |
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
| Intangible assets |
2 441 |
651 |
3 127 |
| Goodwill |
1 702 |
1 702 |
1 702 |
| Tangible assets |
15 803 |
14 847 |
14 198 |
| Shares in affiliated companies |
62 |
38 |
39 |
| Non-current trade and other receivables |
13 |
13 |
13 |
| Other long-term investments |
44 |
44 |
44 |
| Deferred tax asset |
1 446 |
332 |
471 |
| Non-current assets |
21 510 |
17 627 |
19 594 |
|
|
|
|
|
| Inventories |
7 993 |
8 466 |
8 508 |
| Trade receivables and other receivables |
15 724 |
17 373 |
12 392 |
| Tax receivable, income tax |
1 017 |
100 |
624 |
| Cash equivalents |
0 |
950 |
0 |
| Cash and bank |
440 |
1 405 |
730 |
| Current assets |
25 174 |
28 294 |
22 253 |
|
|
|
|
|
| Total assets |
46 684 |
45 921 |
41 847 |
|
|
|
|
|
| Equity and liabilities |
|
|
|
|
|
|
|
|
| Share capital |
2 872 |
2 872 |
2 872 |
| Share premium account |
6 |
6 |
6 |
| Other reserves |
1 787 |
2 173 |
2 006 |
| Retained earnings |
4 905 |
7 277 |
7 537 |
| Equity attributable to equity holders of the parent |
9 570 |
12 328 |
12 421 |
| Minority share |
1 262 |
1 302 |
1 336 |
| Shareholders’ equity |
10 832 |
13 630 |
13 757 |
|
|
|
|
|
| Deferred tax liability |
725 |
997 |
736 |
| Long-term liabilities, interest-bearing |
7 429 |
4 130 |
7 378 |
| Non-current provisions |
271 |
394 |
271 |
| Non-current liabilities |
8 425 |
5 521 |
8 385 |
|
|
|
|
|
| Short-term liabilities, interest-bearing |
11 164 |
7 757 |
7 087 |
| Trade payables and other liabilities |
16 197 |
19 012 |
12 618 |
| Tax liability |
67 |
1 |
1 |
| Current liabilities |
27 427 |
26 770 |
19 705 |
|
|
|
|
|
| Liabilities |
35 852 |
32 291 |
28 090 |
|
|
|
|
|
| Total equity and liabilities |
46 684 |
45 921 |
41 847 |
|
|
|
|
|
| KEY FIGURES, IFRS |
Interim Report 1.9.2008- 28.2.2009 |
Interim Report 1.9.2007- 29.2.2008 |
Annual Report 1.9.2007- 31.8.2008 |
|
|
|
|
|
| Operating profit or loss 1000 EUR |
-2758 |
204 |
649 |
| Operating profit or loss % of turnover |
-8,5 |
0,5 |
0,9 |
| Return on equity % |
-19,5 |
0,2 |
2,2 |
| Return on investment % |
-9,4 |
1,1 |
2,6 |
| Earnings per share EUR |
-0,83 |
-0,01 |
0,08 |
| Shareholders’
equity per share EUR |
3,33 |
4,25 |
4,32 |
| Solidity % |
25,1 |
35,4 |
37,3 |
| Gearing |
167,6 |
69,9 |
99,8 |
| Order backlog 1000 EUR |
43 194 |
33 464 |
54 384 |
| Gross investments
1000 EUR |
2 385 |
1 120 |
4 613 |
| Total average number of personnel |
417 |
427 |
426 |
|
|
|
|
|
| CONSOLIDATED FLOW OF
FUNDS STATEMENT, IFRS 1000 EUR |
Interim Report 1.9.2008- 28.2.2009 6 months |
Interim Report 1.9.2007- 29.2.2008 6 months |
Annual Report 1.9.2007- 31.8.2008 12 months |
|
|
|
|
|
| Profit or loss before taxes |
-3 244 |
-57 |
-77 |
| Adjustments |
1 655 |
891 |
1 817 |
| Change in working capital |
434 |
2 073 |
337 |
| Financial income and expenses and taxes |
-553 |
-318 |
-840 |
| Flow of funds from operations |
-1 707 |
2 590 |
1 236 |
|
|
|
|
|
| Investments in tangible and intangible assets |
-2 385 |
-1 120 |
-4 613 |
| Income from sales of tangible and intangible assets |
7 |
5 |
650 |
| Flow of funds from investments |
-2 378 |
-1 115 |
-3 963 |
|
|
|
|
|
| Increase of the interest-bearing liabilities |
6 135 |
2 061 |
10 566 |
| Decrease of the interest-bearing liabilities |
-2 007 |
-1 428 |
-7 355 |
| Dividends |
-333 |
-1 287 |
-1 287 |
| Flow of funds from financial items |
3 795 |
-654 |
1 923 |
|
|
|
|
|
| Change of liquid funds |
-290 |
-821 |
-804 |
| STATEMENT OF
CHANGES IN SHAREHOLDERS’ EQUITY, IFRS 1000 EUR |
Share capi- tal and share prem- ium acc- ount |
Hedg- ing res- erve |
Other res- erves |
Re- tained earn- ings |
Mino- rity inte- rest |
Total |
| Interim Report
1.9.2008 – 28.2.2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders’ equity 1.9.2008 |
2878 |
-93 |
2100 |
7537 |
1336 |
13758 |
| Cash flow hedging: increase/decrease (hedging reserve) |
-292 |
|
|
|
-292 |
|
| Deferred taxes’ share
of period movement |
76 |
|
|
|
76 |
|
| Change in translation difference |
|
|
25 |
|
25 |
|
| Reclassifications between items |
|
-3 |
3 |
|
0 |
|
| Net profits/losses recognized directly to shareholders’ equity |
-216 |
-3 |
28 |
|
-191 |
|
| Profit/loss for the period |
|
|
-2372 |
-28 |
-2401 |
|
| Total profits and losses |
-216 |
-3 |
-2344 |
-28 |
-2592 |
|
| Dividend distribution |
|
|
-287 |
-46 |
-333 |
|
| Shareholders’ equity
28.2.2009 |
2878 |
-310 |
2097 |
4905 |
1262 |
10832 |
|
|
|
|
|
|
|
|
| STATEMENT OF
CHANGES IN SHAREHOLDERS’ EQUITY, IFRS 1000 EUR |
Share capi- tal and share prem- ium acc- ount |
Hedg- ing res- erve |
Other res- erves |
Re- tained earn- ings |
Mino- rity inte- rest |
Total |
| Interim Report
1.9.2007 – 29.2.2008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders’ equity 1.9.2007 |
2878 |
22 |
2106 |
8438 |
1393 |
14835 |
| Cash flow hedging: increase/decrease (hedging reserve) |
49 |
|
|
|
49 |
|
| Change in translation difference |
|
|
5 |
|
5 |
|
| Reclassifications between items |
|
-3 |
3 |
|
0 |
|
| Net profits/losses recognized directly to shareholders’ equity |
49 |
-3 |
8 |
|
53 |
|
| Profit/loss for the period |
|
|
-19 |
47 |
29 |
|
| Total profits and losses |
49 |
-3 |
-11 |
47 |
82 |
|
| Dividend distribution |
|
|
-1149 |
-183 |
-1287 |
|
| Shareholders’ equity
29.2.2008 |
2878 |
70 |
2103 |
7277 |
1302 |
13630 |
|
|
|
|
|
|
|
|
| STATEMENT OF
CHANGES IN SHAREHOLDERS’ EQUITY, IFRS 1000 EUR |
Share capi- tal and share prem- ium acc- ount |
Hedg- ing res- erve |
Other res- erves |
Re- tained earn- ings |
Mino- rity inte- rest |
Total |
||||
| Annual Report
1.9.2007 – 31.8.2008 |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
||||
| Shareholders’ equity 1.9.2007 |
2878 |
22 |
2106 |
8438 |
1393 |
14835 |
||||
| Cash flow hedging: increase/decrease (hedging reserve) |
-148 |
|
|
|
-148 |
|||||
| Deferred taxes’ share
of period movement |
33 |
|
|
|
33 |
|||||
| Change in translation difference |
|
|
5 |
|
5 |
|||||
| Reclassifications between items |
|
-6 |
6 |
|
0 |
|||||
| Net profits/losses recognized directly to shareholders’ equity |
-115 |
-6 |
11 |
|
-110 |
|||||
| Profit/loss for the period |
|
|
238 |
82 |
320 |
|||||
| Total profits and losses |
|
-6 |
249 |
82 |
210 |
|||||
| Dividend distribution |
|
|
-1149 |
-138 |
-1287 |
|||||
| Shareholders’ equity
31.8.2008 |
2878 |
-93 |
2100 |
7537 |
1336 |
13757 |
||||
|
|
|
|
||||||||
SEGMENT INFORMATION, IFRS
The business of Vaahto Group is reported as two business segments: Pulp & Paper Machinery and Process Machinery.
| NET SALES BY BUSINESS SEGMENTS, IFRS
1000 EUR |
Interim Report 1.9.2008- 28.2.2009 6 months |
Interim Report 1.9.2007- 29.2.2008 6 months |
Annual Report 1.9.2007- 31.8.2008 12 months |
|
|
|
|
|
| Pulp & Paper Machinery |
18 748 |
23 336 |
39 549 |
| Process Machinery |
14 155 |
18 493 |
34 406 |
| Net sales between segments |
-623 |
-1 |
-748 |
| Group total |
32 280 |
41 828 |
73 207 |
|
|
|
|
|
|
|
|
|
|
| OPERATING PROFIT OR
LOSS BY BUSINESS SEGMENTS, IFRS 1000 EUR |
Interim Report 1.9.2008- 28.2.2009 6 months |
Interim Report 1.9.2007- 29.2.2008 6 months |
Annual Report 1.9.2007- 31.8.2008 12 months |
|
|
|
|
|
| Pulp & Paper Machinery |
-3 450 |
-1 778 |
-3 330 |
| Process Machinery |
684 |
1 976 |
3 982 |
| Other |
-1 |
-2 |
-2 |
| Operating profit or loss between segments |
9 |
7 |
0 |
| Group total |
-2 758 |
204 |
649 |
|
|
|
|
|
|
|
|
|
|
| AVERAGE NUMBER OF PERSONNEL BY BUSINESS SEGMENTS |
Interim Report 1.9.2008- 28.2.2009 6 months |
Interim Report 1.9.2007- 29.2.2008 6 months |
Annual Report 1.9.2007- 31.8.2008 12 months |
|
|
|
|
|
| Pulp & Paper Machinery |
269 |
252 |
249 |
| Process Machinery |
148 |
175 |
177 |
| Group total |
417 |
427 |
426 |
|
|
|
|
|
|
|
|
|
|
| NET SALES BY MARKET AREAS, IFRS
1000 EUR |
Interim Report 1.9.2008- 28.2.2009 6 months |
Interim Report 1.9.2007- 29.2.2008 6 months |
Annual Report 1.9.2007- 31.8.2008 12 months |
|
|
|
|
|
| Finland |
12 012 |
14 234 |
28 859 |
| Other Europe |
16 170 |
19 964 |
30 182 |
| North America |
252 |
2 919 |
3 837 |
| Asia |
3 839 |
4 589 |
9 881 |
| Africa |
0 |
120 |
120 |
| Other |
7 |
1 |
328 |
| Group total |
32 280 |
41 828 |
73 207 |
Figures are in thousand euros unless stated otherwise. Figures are unaudited.
NOTES REQUIRED BY IAS 34
Accounting principles
The interim report was drawn up according to the same accounting principles and calculation methods as the previous financial statement, for the fiscal period that ended on August 31, 2008.
Dividends paid
In the period under review, Vaahto Group Plc Oyj paid a dividend of 0.10 euros per share (for both A and K shares) – i.e., a total of 287,230.20 euros.
Lahti, April 17, 2009
VAAHTO GROUP PLC OYJ
Board of Directors
Information:
Antti Vaahto
CEO, Vaahto Group Plc Oyj
tel. +358 40 8232835