SCANFIL PLC INTERIM REPORT 29 APRIL 2016 9.00 A.M.
SCANFIL GROUP’S INTERIM REPORT 1 JANUARY – 31 MARCH 2016
January – March
– Turnover totalled EUR 130.4 million (Q1 2015: 45.9), up to 183.8%
– Operating profit EUR 0.4 million (Q1 2015: 2.7), 0.3% (Q1 2015: 5.8%) of turnover
– Operating profit excluding non-recurring items EUR 5.1 million (2.7), 3.9% (5.8%) of turnover
– Profit was EUR -1.7 million (Q1 2015: 2.7)
– Earnings per share amounted EUR -0.03 (Q1 2015: 0.05)
– Earnings per share without non-recurring items EUR 0.05
January – March pro forma
– Turnover EUR 130.4 million (Q1 2015: 112.1), up to 16.3%
– Operating profit excluding non-recurring EUR 5.1 million (Q1 2015: 2.9), up to 72.6%
The pro forma comparison figures have been calculated to illustrate a scenario in which Scanfil Plc and PartnerTech AB were merged on 1 January 2015.
The non-recurring items recognised for January–March 2016 totalled EUR 4.7 million and consisted of impairment and provisions related to the close-down of the operations of PartnerTech AS.
Future prospects
Scanfil estimates that its turnover for 2016 will be EUR 500–550 million and the operating profit before non-recurring items will amount to EUR 22–28 million.
Petteri Jokitalo, CEO of Scanfil plc:
“Our turnover for the first quarter of 2016 was EUR 130 million, which represents an increase of around 16 per cent in comparison to our pro forma turnover for the corresponding period of the previous year. Our operating profit before non-recurring items totalled EUR 5.1 million, marking an increase of 73 per cent year-on-year (pro forma). Demand developed favourably, particularly in the Medtech, Energy and Automation, and Defence customer segments.
The integration of the companies, the elimination of overlap in administration and factories and the restructuring of poorly profitable factories continued as planned. The ramp-down of the factory in Norway progressed, and the Sweden-based PartnerTech Aerodyn AB was divested. Measures to eliminate overlap and streamline operations were started in China. An investigation into the possible divestment of the PartnerTech Karlskoga factory and potential buyers was launched. After the review period, in April, statutory labour negotiations were completed at the factory in England. It was decided that the plant would be closed down.
I am pleased with the progress of the integration and synergy processes during the first quarter. I am confident that we will achieve our targets.”
| Key Indicators | |||
| 1 – 3 | 1 – 3 | 1 – 12 | |
| 2016 | 2015 | 2015 | |
| Return on equity, % | -6.1 | 11.0 | 8.6 |
| Return on investment, % | 0.9 | 12.0 | 10.2 |
| Interest-bearing liabilities, EUR million | 79.0 | 9.5 | 83.4 |
| Gearing, % | 47.3 | -12.8 | 60.3 |
| Equity ratio, % | 39.1 | 71.2 | 34.2 |
| Gross investments, EUR million | 0.7 | 2.2 | 54.3 |
| % of net turnover | 0.5 | 4.8 | 14.4 |
| Personnel, average | 3 780 | 1 781 | 2 690 |
| Earnings per share, EUR | -0.03 | 0.05 | 0.15 |
| Shareholders´ equity per share, EUR | 1.80 | 1.79 | 1.76 |
| Number of shares at | |||
| the end of period, 000´s | |||
| – not counting own shares | 63 445 | 57 730 | 57 730 |
| – weighted average | 63 445 | 57 730 | 57 730 |
| Owing to the nature of the sector, the company´s order book covers only a short period of time and does not give an accurate picture of future development. | |||
Financial development
The Group’s turnover for January – March was EUR 130.4 (45.9) million. The breakdown of turnover by regional segment was as follows: Europe and USA 82% (63%), Asia 18% (37%).
The Group’s operating profit for January–March was EUR 0.4 (2.7) million, representing 0.3% (5.8%) of turnover. The operating profit includes a total of EUR 4.7 million of non-recurring expenses. The non-recurring items consisted of impairment and provisions related to the close-down of the operations of PartnerTech AS. The operating profit before non-recurring items was EUR 5.1 million, or 3.9% of the turnover. In the first quarter of 2015, non-recurring items totalled EUR 0.1 million.
The Group has a high tax rate as a result of the loss related to its business operations in Norway, the provision related to the close-down of operations and the derecognition of deferred tax assets related to Scanfil Limited. Excluding the items mentioned above, the effective tax rate was around 24%.
The result for the period was EUR -1.7 million (2.7 million), and the result before non-recurring items was EUR 3.0 million.
Earnings per share were EUR -0.03 (0.05), and earnings per share before non-recurring items were EUR 0.05. The return on investment was 0.9% (12.0%).
Publication of financial releases
This stock exchange release is a summary of the Scanfil Group’s Interim Report 1 January – 31 March, 2016 and includes the most relevant information of the report. The complete report is attached to this release as a pdf file and is also available on the company’s website at www.scanfil.com.
SCANFIL PLC
Petteri Jokitalo
CEO
Additional information:
CEO Petteri Jokitalo
Tel +358 8 4882 111
Distribution NASDAQ OMX, Helsinki
Major Media
www.scanfil.com
Scanfil is an international contract manufacturer and system supplier for the electronics industry with 40 years of experience in demanding contract manufacturing. Scanfil provides its customers with an extensive array of services, ranging from product design to product manufacturing, material procurement and logistics solutions. Vertically integrated production and a comprehensive supply chain are the foundation of Scanfil’s competitive advantages: speed, flexibility and reliability.
Typical Scanfil products include mobile and communications network devices, automation system modules, frequency converters, lift control systems, analysers, various slot and vending machines, and devices related to medical technology and meteorology. Scanfil services are used by numerous international automation, energy, IT and health service providers, as well as companies operating in the field of urbanisation. Scanfil’s network of factories consists of 15 production units in Europe, Asia and North America. The total number of employees is 3,800.
Not to be published or distributed, directly or indirectly, in any country where its distribution or publication is unlawful. Forward looking statements: certain statements in this stock exchange release may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Scanfil Oyj to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this stock exchange release, such statements use such words as “may,” “will,” “expect,” “anticipate,” “project,” “believe,” “plan” and other similar terminology. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of Scanfil Oyj to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking information contained in this stock exchange release is current only as of the date of this stock exchange release. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised, except as provided by the law or obligatory regulations, whether as a result of new information, changing circumstances, future events or otherwise.