SCANFIL PLC FINANCIAL STATEMENTS RELEASE 20 FEBRUARY 2019 1.00 P.M.
Correction: Financial statements release, date of Annual General Meeting
The financial statements release published by Scanfil plc on February 15, 2019 at 8.00 a.m. contained an incorrect date concerning the Annual General Meeting. In the release, the date was 24 April 2018. The correct date is 24 April 2019. Below is the corrected release.
SCANFIL PLC FINANCIAL STATEMENTS RELEASE 15 FEBRUARY 2019 8.00 A.M.
SCANFIL GROUP’S FINANCIAL STATEMENTS FOR 1 JANUARY – 31 DECEMBER 2018
Year 2018: Strong growth and profitability development
October – December 2018
– Turnover totalled EUR 140.2 million (Q4 2017: 144.4), down 2.9%
– Operating profit EUR 7.5 (9.6) million, 5.4% (6.6%) of turnover
– Profit was EUR 6.4 (10.5) million
– Earnings per share amounted EUR 0.10 (0.16)
January – December 2018
– Turnover totalled to EUR 563.0 million (1-12/2017 529.9), up to 6.3%
– Operating profit EUR 37.8 (31.3) million, 6.7% (5.9%) of turnover
– Profit for the review period was EUR 28.9 (25.8) million
– Earnings per share were EUR 0.45 (0.40)
The Board of Directors proposes, that a dividend of EUR 0.13 per share be paid for the financial year 2018, which is 18% more than 0.11 euro for the financial year 2017.
Future outlook
Scanfil estimates, that its turnover for 2019 will be EUR 560 – 610 million and the operating profit will amount to EUR 36 – 41 million.
Long-term Target
In 2020, Scanfil aims to reach sales of EUR 600 million and 7% operating profit level thru organic growth.
| KEY FIGURES | ||||||
| Q4/2018 | Q4/2017 | Change% | 2018 | 2017 | Change % | |
| Turnover, EUR million | 140.2 | 144.4 | -3 % | 563.0 | 529.9 | 6 % |
| Operating Profit, EUR million | 7.5 | 9.6 | -22 % | 37.8 | 31.3 | 21 % |
| Operating Profit, % | 5.4 | 6.6 | 6.7 | 5.9 | ||
| Net Profit, EUR million | 6.4 | 10.5 | -38 % | 28.9 | 25.8 | 12 % |
| Earnings per Share, EUR | 0.10 | 0.16 | -38 % | 0.45 | 0.40 | 12 % |
| Return on Equity, % | 21.5 | 22.2 | ||||
| Equity Ratio, % | 47.7 | 40.7 | ||||
| Net Gearing, % | 19.5 | 32.6 | ||||
| Net Cash Flow from Operations, EUR million | 29.0 | 21.3 | 37 % | |||
| Employees (Average) | 3 414 | 3 254 | 5 % | |||
Petteri Jokitalo, CEO:
“Scanfil’s business developed positively with all key indicators in 2018. The turnover increased by 6.3%, supported by almost all customer segments. Over 10% growth rate was achieved in Energy and Automation, Medtec and Life Science and Other Industries segments. The relative operating profit grew from last year and was 6.7%. Net cash flow from operations went up by 37%, and return on equity was good (21.5%).
I am not entirely satisfied with our performance during the fourth quarter. We remained at a lower level than in the previous year, both in terms of turnover and operating profit. The reason behind the decrease in performance was mainly due to significantly decreased demand for a few notable customers and partly also due to seasonal variation compared to the previous year. The decline in demand was anyhow restricted to a few customers, and the overall demand of our customers developed positively also during the fourth quarter.
In terms of our strategy, we proceeded as planned. I am especially satisfied with the development of our “close to customers R&D strategy” which resulted, e.g. a new record in the acquisition of new customers, particularly in Finland and Sweden. In the USA we see growing demand and growth opportunities, in particular, with our current customers.
We renewed our organizational model in December last year. The goal of our new organizational structure is to increase cooperation between factories and, therefore, to improve the overall optimization and efficiency of our factory network. We also want to create more customer value, for example through a broader service range and design services in particular. Also, our new organizational model emphasizes future production technologies and a higher focus on sales and growth, primarily in the Nordic countries and Central Europe.
Our customers’ forecasts are looking strong and put us in a good position to seek organic growth also in 2019. We are expecting the year to get off to a slower start and for demand to clearly pick up during the second quarter. Even though we are focusing on organic growth, we are also interested in potential business acquisitions, especially in the Nordic countries and Central Europe.
Overall I am satisfied with Scanfil’s development in 2018. I want to thank our committed employees, customers, and other stakeholders.”
Financial development
The Group’s turnover for January – December was EUR 563.0 (529.9) million, increase of 6.3% compared to the previous year. The Group’s operating profit for January – December was EUR 37.8 (31.3) million, representing 6.7% (5.9%) of turnover. Operating profit increased by 20.8% on the previous year. In addition to the positive development of the turnover, the increase in the operating profit was affected by the discontinued operations of plants located in Vantaa, Finland, and Biatorbagy, Hungary, during the first half of the previous year, during which their expenses reduced the previous year’s results.
The net profit for the review period was EUR 28.9 (25.8) million.
Earnings per share for the review period were EUR 0.45 (0.40). Return on investment was 20.2% (19.4%).
The Group’s turnover for October – December amounted to EUR 140.2 (144.4) million, with the decrease of 2.9% compared to the corresponding period of previous year. Operating profit was EUR 7.5 (9.6) million, or 5.4% (6.6%) of turnover.
Annual General Meeting 2019 and Board of Directors’ proposals to the Annual General Meeting
Scanfil plc’s Annual General Meeting will be held on 24 April 2019 at the company’s head office in Sievi, Finland.
Dividend for 2018
The company aims to pay dividends amounting to approximately 1/3 of its annual result on a regular basis. The parent company’s distributable funds are EUR 39,015,179.77 including retained earnings EUR 10,228,513.15. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.13 (0.11) per share be paid for a total of EUR 8,324,607.07 for the financial year ending on 31 December 2018. The dividend matching day is 26 April 2019. The dividend will be paid to those shareholders who, on the matching day, are entered in the Company’s Register of Shareholders, kept by Euroclear Finland Ltd. The dividend payment day is 6 May 2019.
No significant changes have taken place in the company’s financial position since the end of the financial year. In the view of the Board of Directors, the proposed dividend pay-out will not put the company’s liquidity at risk.
The proposal of Scanfil plc’s nomination committee to the General Meeting for the composition of Scanfil plc’s Board of Directors will be published in connection with the invitation to the General Meeting.
The company publishes a notice of the Annual General Meeting later separately.
Publication of financial releases
This stock exchange release is a summary of the Scanfil Group’s Financial Statements Release 1 January – 31 December, 2018 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 10 production units in Europe, Asia and North America. The total number of employees is about 3,300.
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.