Incap Group Financial Statement Release for 2016 (unaudited)
Financial Statement Release 21 February 2017 at 8.30 a.m. (EET)
INCAP GROUP FINANCIAL STATEMENT RELEASE FOR 2016 (UNAUDITED)
Incap Group’s revenue in 2016 increased by 26% and the operating profit grew by 19% year-on-year. The construction work of the factory expansion in India was completed on schedule.
Key figures in January-December 2016
The Group’s revenue amounted to EUR 38.6 million, up 26% year-on-year (2015: EUR 30.6 million).
The Group’s operating profit (EBIT) amounted to EUR 4.4 million, increasing by 19% year-on-year (EUR 3.7 million).
Net profit for the financial period amounted to EUR 2.7 million, i.e. 36% higher than in 2015 (EUR 2.0 million).
Following the share capital reduction carried out in 2016, there are limitations to distribution of dividends. The Board of Directors will propose to the Annual General Meeting that no dividend be paid.
The company estimates that the Group’s revenue in 2017 will be higher than in 2016 and that the operating profit (EBIT) will be somewhat higher than in 2016.
Key figures in July-December 2016
The revenue during the second half of the year amounted to EUR 20.8 million, showing an increase of 20% compared with the corresponding period last year (7-12/2015: EUR 17.3 million) and up 16% compared with the first half of the year (1-6/2016: EUR 17.9 million).
Operating profit (EBIT) for the second half of the year was EUR 2.2 million, i.e. approximately at the same level than in the corresponding period last year (7-12/2015: EUR 2.2 million) and on the first half of the year (1-6/2016: EUR 2.2 million).
The accounting principles for the financial statements
This financial statement release has been prepared in accordance with international financial reporting standards (IFRS) – IAS 34 Interim Financial Reporting standard. When preparing the release, the same principles have been used as in the 2015 financial statement. Unless otherwise stated, the comparison figures refer to the same period in the previous year. The information in this financial statement report is unaudited.
Ville Vuori, President and CEO of Incap Group:
“Business of Incap continued its strong development in 2016 after the change of strategy and the growth leap seen in the previous year. Our operations model has now been stabilised offering a solid basis for further expansion of operations.
During the financial period 2016 the company’s target was to gain new customers and new products to production, while at the same time securing the continued high level of operational efficiency and quality. Here we have succeeded. Our factories in Estonia and in India have developed their manufacturing capacity and enhanced their sales operation. The construction work of the factory expansion in India was completed on schedule and now we are ready to take new products into production. The increased interest of our customers augurs well for the continued good development.
Thanks to the new operations model we are able to react fast to the fluctuations in customers’ demand, which enhances our position in continuously changing market situations.
Our revenue grew by 26% year-on-year and also the profitability in terms of EBIT improved by 19%. Our equity ratio continued to improve and was close to 40% at year end. Extremely price-sensitive marketplace and the general moderate profitability levels in electronics manufacturing business are posing a challenge for keeping up the EBIT level. We continued with the strict cost management and did not lose our grip in tailwind either.
India is according to publicly available information currently the fastest growing economy in the world with over 7% annual growth. The government of India has set initiatives such as “Make in India” -program to facilitate the rise of India as a manufacturing location for example in electronics. We have a great opportunity and established position in this emerging marketplace. Further, we trust that with our lean and efficient operations model we can win projects also in highly competed European electronics market.
This been said, we aim at continued organic growth with a good rate while at the same time keeping the profitability among the highest in the peer group. Company’s business model and strengthened financial position enable considerations on expansion also by M&As.”
Business environment in 2016
The business environment of Incap Group continued challenging, because the competition in the global market for manufacturing services was fierce. Financial prospects in Europe and Asia affected the customers’ business. General cost level remained stable in countries where Incap has operations. Prices of components and raw materials showed a moderate trend.
Incap Group’s revenue and earnings in July-December 2016
Revenue for the second half of the year amounted to EUR 20.8 million, showing an increase of 20% year-on-year (7-12/2015: EUR 17.3 million) and being 16% higher than in the first half of the year (1-6/2016: EUR 17.9 million). The revenue increased from previous year both in Estonia and in India. Positive development in the factory in Estonia was strengthened towards the end of the year both by revenue and by profitability.
The operating profit (EBIT) for the second half of the year amounted to EUR 2.2 million, i.e. at the same level than in the corresponding period in 2015 (7-12/2015: EUR 2.2 million) and during the first half of the year (1-6/2016: EUR 2.2 million). The net result for the second half of the year was EUR 1.5 million, compared with EUR 1.2 million on the corresponding period last year and EUR 1.3 million in the first half of the year 2016.
Incap Group’s revenue and earnings in 2016
Revenue for the financial period amounted to EUR 38.6 million, by approx. 26% more than in 2015 (1-12/2015: EUR 30.6 million). The increase in revenue was a result of growing demand of present customers and the production for new customers. The weakening of Indian Rupee in relation to Euro decreased the revenue by EUR 1.2 million year-on-year.
The profitability of Incap Group remained at good level. The full-year operating profit (EBIT) amounted to EUR 4.4 million (EUR 3.7 million), being 11% out of revenue which in the company’s business, Electronics Manufacturing Services, is in general terms considered to be on high level. The net result for the year 2016 was weakened by EUR 0.2 million due to the weakening of Indian Rupee in relation to Euro.
Thanks to the lean operational model of the company, the overhead costs remained low ensuring profitable operations and continued competitive edge.
Personnel expenses in the reporting period amounted to EUR 3.5 million (EUR 3.2 million). The growth was caused by increased manufacturing volumes and was clearly more moderate than the growth rate of revenue. Other business costs increased slightly year-on-year. As a result of the increasing business volume the value of inventories increased from EUR 5.2 million to EUR 6.3 at the end of the reporting period.
Net financial expenses amounted to EUR 0.6 million (EUR 0.5 million). Depreciation amounted to a total of EUR 0.4 million (EUR 0.3 million).
Net profit for the period was EUR 2.7 million (EUR 2.0 million). Earnings per share were EUR 0.63 (EUR 0.52).
COMPARISON BY REPORT PERIOD (1,000 euros)
|Operating profit/loss (EBIT)||4,386||3,692|
|Profit/loss for the period||2,742||2,012|
|Earnings per share, EUR *)||0.63||0.52|
*) The number of shares was reduced during the report period based on the resolution of the Annual General Meeting so that each 50 pieces of previous share of the company now corresponds to one share. In practice, the number of shares in the report period has been divided by 50. The corresponding periods have been adjusted in the same way.
BY 6-MONTH PERIOD
|Operating profit/loss (EBIT)||2,202||2,184||1,478||2,213|
|Profit/loss for the period||1,265||1,476||845||1,167|
|Earnings per share, EUR||0.29||0.34||0.39||0.32|
Investments in 2016 totalled EUR 1.0 million (EUR 0.9 million) and they were mainly connected with the construction of the factory expansion in India.
Quality assurance and environmental issues
Incap Group’s both factories have environmental management and quality assurance systems certified by Bureau Veritas. The systems are used as tools for continuous improvement. Incap is implementing the year 2015 versions of the quality standards. Incap’s environmental management system in India complies with ISO 14001:2004, and its quality assurance system complies with ISO 9001:2008. These will be updated to the 2015 versions during the year 2017. The environmental management system in the Estonian factory complies with ISO 14001:2015, and its quality assurance system complies with ISO 9001:2015. In addition, the Kuressaare factory has ISO 13485:2003 quality certification for the manufacture of medical devices, which will be updated to the 2015 version in spring 2017.
Balance sheet, financing and cash flow
The balance sheet total on 31 December 20165 stood at EUR 21.7 million (EUR 18.1 million). The Group’s equity at the close of the financial period was EUR 8.5 million (EUR 5.6 million). The parent company’s equity totalled EUR 9.8 million, representing 983% of the share capital (EUR 9.4 million, 46%). The Group’s equity ratio improved by over 8 percentage points to 39.4% (31.2%).
Reducing the share capital of the parent company and transferring funds to the unrestricted equity reserve was resolved in the Annual General Meeting on 6 April 2016, when it was resolved to reduce the share capital of the company from EUR 20,486,769.50 by EUR 19,486,769.50 to cover the losses and to transfer funds to the unrestricted equity reserve. The losses accumulated during previous financial periods were covered by decreasing the unrestricted equity reserve by EUR 16,804,218.62, the share premium account by EUR 44,316.59 and the share capital by EUR 11,118,952.29. After covering the losses the remaining share capital was further decreased by EUR 8,367,817.21 by transferring the funds to the unrestricted equity reserve. After the reduction the new share capital of the company is EUR 1,000,000 and the unrestricted equity reserve EUR 8,367,817.21. The reduced share capital was recorded into Trade Register on 31 August 2016.
Liabilities increased slightly to EUR 13.1 million compared with previous year (EUR 12.5 million), of which EUR 8.0 million (EUR 7.9 million) were interest-bearing liabilities.
Net debt remained at the same level than in previous year, amounting to EUR 5.6 million (EUR 5.6 million). Net gearing improved and was 66% (98%).
The Group rearranged in April 2016 its interest-bearing debt with the Finnish bank. Following the arrangement the Group’s costs for debt decreased and the management was streamlined. The covenants of the new loans are among others equity ratio and the Group’s interest-bearing debt in relation to EBITDA, and their status is reviewed every six months. In the review on 31 December 2016 the target level of interest-bearing debt in relation to EBITDA was below 2.5 and the equity ratio 25%. The company met these covenants and the actual figure interest-bearing debt/EBITDA on the review date was 1.7 and the equity ratio 39.4%.
The Group’s non-current interest-bearing liabilities amounted to EUR 3.8 million (EUR 4.6 million) while the current interest-bearing liabilities were EUR 4.2 million (EUR 3.3 million). Out of the interest-bearing liabilities EUR 2.4 million are related to the Indian subsidiary (EUR 2.7 million). Other liabilities include EUR 3.4 million of bank loans and limits granted by the company’s Finnish bank and EUR 2.2 million of factoring financing used in Estonia.
As to the loans granted by the Indian bank the company has committed to follow ordinary covenants and the bank’s general loan conditions.
INSTALMENTS AND INTERESTS OF LOANS *)
|31 Dec 2016 Total||31 Dec 2015 Total|
|Less than 6 months||3,895||4,197|
*) The table does not include the pension liability of the Indian subsidiary, which is EUR 0.3 million (EUR 0.3 million).
The Group’s cash position during the report period was good. The Group’s quick ratio was 1.1 (1.1), and the current ratio was 1.8 (1.8).
Cash flow from operations was EUR 1.1 million (EUR 1.0 million). On 31 December 2016, the Group’s cash and cash equivalents totalled EUR 2.3 million (EUR 2.1 million). The change in cash and cash equivalents showed an increase of EUR 0.2 million (increase of EUR 0.2 million).
Aspects related to the Group’s financing and liquidity are also described in the section “Short-term risks and factors of uncertainty concerning operations”.
At the end of 2016, Incap Group had a payroll of 514 employees (468). 85% (87%) of the personnel worked in India, 14% (13%) in Estonia and 0.4% (0.4%) in Finland. At the end of the year, 106 of Incap’s employees were women (96) and 408 were men (372). Permanently employed staff totalled 205 (192) and the number of fixed-term employment contracts was 309 (275). The company had one part-time employment contract at the end of the period (1). The average age of the personnel was 31 years (29).
Management and organisation
The duties of CEO of Incap were carried out by Ville Vuori (B.Sc. Eng., eMBA, born 1973). At the end of the report period the Group’s Management Team included besides the CEO Ville Vuori also the local Managing Directors: Murthy Munipalli in India and Otto Pukk in Estonia.
The company’s organisation structure is lean. Along with the expansion of its operations the company gave up the outsourced services in the management of finance and administration and appointed Elina Liippola as CFO and member of Management Team as from 1 January 2017. Tilistar Oy continues acting as Incap’s outsourced financial department. The Group’s factories in Estonia and in India operate as independent cost centres, which are responsible besides for the actual order-delivery process also for the quotations and pricing.
Annual General Meeting 2016
The Annual General Meeting of Incap Corporation was held in Helsinki on 6 April 2016. A total of 20 shareholders participated in the meeting, representing approximately 52.9% of all shares and votes in the company. The Annual General Meeting adopted the financial statements for the financial period ended 31 December 2015 and decided, in accordance with the proposal of the Board of Directors, that no dividend be distributed for the financial period and that the loss for the financial period (EUR 772,720.93) be recognised in equity.
The Annual General Meeting resolved to reduce the share capital of the company from EUR 20,486,769.50 by EUR 19,486,769.50 to cover the losses and to transfer funds to the unrestricted equity reserve. The losses accumulated during previous financial periods were covered by decreasing the unrestricted equity reserve by EUR 16,804,218.62, the share premium account by EUR 44,316.59 and the share capital by EUR 11,118,952.29. After covering the losses the remaining share capital will further be decreased by EUR 8,367,817.21 transferring the funds to the unrestricted equity reserve.
After the measures the new share capital of the company is EUR 1,000,000 and the unrestricted equity reserve EUR 8,367,817.21. The parent company’s equity thereby exceeded the level set in the Companies Act, chapter 20, section 23. Covering the losses clarified the balance sheet structure of the parent company and improved the ratio between the company’s equity and share capital. The creditor protection procedure was required in the Companies Act. The reduction of share capital was recorded in the Trade Register on 31 August 2016.
The Annual General Meeting further resolved on the reduction of the quantity of company’s shares by way of issuing new shares and by redemption of company’s own shares, in such a way that after the procedure each current 50 shares of the company shall correspond to one share of the company. The arrangement took place soon after the Annual General Meeting on 8 April 2016. The purpose of the reduction of the quantity of company’s shares was to improve the trade conditions and the reliability of the price formation of the shares. The key ratios per share for the report period as well as other periods presented in this report have been adjusted accordingly.
Authorisation of the Board of Directors
The Annual General Meeting held on 6 April 2016 authorized the Board of Directors to decide to issue a maximum of 440,000 new shares either against payment or without payment. The new shares may be issued to the company’s shareholders in proportion to their current shareholdings in the company or deviating from the shareholders’ pre-emptive right through one or more directed share issue, if the company has a weighty financial reason to do so, such as developing the company’s equity structure, implementing mergers and acquisitions or other restructuring measures aimed at developing the company’s business, financing of investments and operations or using the shares as a part of the company’s remuneration and compensation system, to the terms and scope decided by the Board of Directors. If the authorization is used to the maximum number of new shares, new shares would represent 9.5% of all shares and votes in the company.
The Board has not exercised the authorisation, which is valid until 6 April 2017.
Board of Directors and Auditor
Olle Hulteberg acted as the Chairman of the Board of Directors of Incap Corporation. The Annual General Meeting held on 6 April 2016 re-elected Fredrik Berghel, Olle Hulteberg, Susanna Miekk-oja, Rainer Toiminen and Carl-Gustaf von Troil to the Board of Directors.
The Board convened 15 times in 2016 and the average attendance rate of Board members was 90.7%.
The firm of independent accountants Ernst & Young Oy continued to act as the company’s auditor, with Bengt Nyholm, Authorised Public Accountant, appointed as the principal auditor.
Report on Corporate Governance
Incap Corporation is complying with the Corporate Governance Code of Securities Market Association, which is valid as from 1 January 2016 and is publicly available at the website of Securities Market Association at www.cgfinland.fi. The company will release a report on the company’s corporate governance in compliance with the Securities Market Act as a separate document in connection with the publication of the Report of the Board of Directors and the Annual Report in week 12/2017. The report is available at the company’s website.
Shares and shareholders
Incap Corporation has one series of shares, and the number of shares at the end of the period was 4 365 168 (31 December 2015: 218,228,070).
The number of shares was reduced as decided by the Annual General Meeting by way of issuing new shares and by redemption of company’s own shares, in such a way that after the procedure each current 50 shares of the company shall correspond to one share of the company. As a result of the measures the number of the company’s shares was decreased from 218,228,070 shares to 4,365,168 shares. The new total number of shares was recorded in Trade Register on 9 April 2016 and the trade with the new number of shares started in Nasdaq Helsinki on 11 April 2016.
During the financial period, the share price varied between EUR 8.65 and 4.95 (EUR 0.03 and 0.20). The closing price for the period was EUR 5.46 (EUR 0.16). The market capitalisation on 31 December 2016 was EUR 23.8 million (EUR 34.3 million). At the end of financial period, the company had 2,861 shareholders (2,806). Nominee-registered or foreign owners held 38.2% (41.9%) of all shares. The company does not hold any of its own shares.
on 31 December 2016
|Nordea Bank AB (publ) Finland (nominee-registered)||1,306,545||29.9|
|Oy Etra Invest Ab||538,000||12.3|
|Ilmarinen Mutual Pension Insurance Company||332,308||7.6|
|Danske Bank Oyj||326,192||7.5|
|Laurila Kalevi Henrik||89,419||2.0|
|Penan Raudoitus Oy||76,762||1.8|
|Wiik Kenneth Matias||70,843||1.6|
|Suonpää Altti Allan||58,100||1.3|
|Oy Kontino Invest Ab||56,440||1.3|
|10 largest in total||2,920,656||66.9|
At the end of the financial period 2016, the members of Incap Corporation’s Board of Directors and the President and CEO and their interest parties owned a total of 1,289,737 shares or approximately 29.5% of the company’s shares outstanding.
Announcements in accordance with Section 10 of Chapter 9 of the Securities Market Act on a change in holdings
The company had no announcements in accordance with Section 10 of Chapter 9 of the Securities Market Act during the financial period.
The Risk Management Policy approved by the Board of Incap Corporation classifies risks as risks connected to the operating environment, operational risks and damage and funding risks. The company’s risk management is mainly focused on risks that threaten the company’s business objectives and continuity of operations. In order to improve its business opportunities, the company is willing to take on managed risks within the scope of the Group’s risk management capabilities. The company regularly reviews its insurance policies as part of its risk management system.
Short-term risks and factors of uncertainty concerning operations
General risks related to the company’s business operations and sector include the development of customer demand, price competition in contract manufacturing, successful acquisition of new customers, availability and price development of raw material and components, sufficiency of funding, liquidity and exchange rate fluctuations.
As a result of the improved profitability the company’s financing position is good and the sufficiency of financing and working capital are at the moment posing no remarkable risk.
Based on the cash flow estimate prepared in connection with the financial statement, the company estimates that the company’s working capital will cover the company’s requirement for the next 12 months.
In the definition of the volumes of internal transactions the actual value added and the so-called “arm’s length” principle are considered. After the cumulative losses in India were covered during the latter half of 2015, it is possible to repatriate profits also through dividends.
The value of the shares in subsidiaries in the parent group has a significant impact on the parent company’s equity and therefore on, for example, equity ratio. Based on the value calculations in connection with the financial statements for 2016 there is no need for any decrease of the value of the shares in subsidiaries. However, based on the company’s estimate there is a risk connected with the valuation of the shares of the Estonian subsidiary because of the previous unprofitable operations of the subsidiary. There is no such risk in the valuation of the subsidiary in India.
Demand for Incap’s services and the company’s financial position are affected by global economic trends and the fluctuation among customer industries. Even though the business environment in 2017 is estimated to continue challenging, the general financial development is considered to have no remarkable negative effect on the demand or the solvency of the customers. The customer relationship management is of utmost importance in a challenging market situation and the management is paying special attention to this.
The company’s sales are spread over several customer sectors balancing out the impact of the economic fluctuation in different industrial sectors. In 2016, there were three customers in the Group with a revenue exceeding 10% of the total revenue of the Group. The combined revenue of these three customers was approximately 73% of the Group’s revenue.
The company’s operating segment, electronics manufacturing services, is highly competitive and there are major pressures on cost level management. The company has succeeded in increasing the efficiency of its operations and in lowering the costs. Furthermore, the company’s production is located in countries with competitive levels of wage and general costs.
The most significant exchange rate risk of the company is related to the Indian subsidiary. A remarkable part of the Group’s operations is located in India. The fluctuation in the exchange rates between Indian Rupee and Euro may have a remarkable effect on revenue and result.
The Indian subsidiary of the company had a tax audit in the report period. As a result, the tax authorities do not approve the depreciations made on the capitalized customer contracts during accounting periods 2008/2009-2012/2013 and the transfer costs during the accounting period 2011/2012. The estimated tax effect with eventual increases is amounting to a total of EUR 0.4 million. The company has raised a complaint on these tax issues and is presenting the tax debt in the off balance sheet liabilities in the balance sheet.
Events after the end of the period
There are no remarkable events after the end of the period.
Strategy and targets
The positive trend in profitability has enabled the strong development of the company ensuring the future growth. The operational model of the company has been tuned up to be efficient, allowing fast decision-making and operational flexibility. In 2017 the company is targeting at increasing the business volumes further and creating prerequisites to expand the operations also by M&As.
Outlook for 2017
Incap’s estimates for future business development are based both on its customers’ forecasts and on the company’s own assessments.
Due to the continued uncertainty in world economy it is very difficult to predict the development of customer demand. Most of the company’s customers are indicating that their own demand will grow in 2017.
The electronics manufacturing volumes in Incap’s factory in Kuressaare have grown steadily and the positive development is expected to continue. Inauguration of the new factory extension in India improves the possibilities to increase the revenue further.
The Group’s revenue in 2017 is estimated to be higher than in 2016 and the operating profit (EBIT) is estimated to be somewhat higher than in 2016, provided that there are no major changes in exchange rates.
Board of Directors’ proposal on measures related to the result
The parent company’s profit for the financial period totalled EUR 464,201.93. The Board of Directors will propose to the Annual General Meeting on 18 April 2017 that no dividend be paid and the result for the financial period be recognised in equity.
Because of the share capital reduction carried out by the decision of the Annual General Meeting, there are limitations for distribution of dividends until the year 2019.
Annual General Meeting 2017
The Annual General Meeting will be held on Tuesday, 18 April 2017 at 3 p.m. at BANK/Wall street, Unioninkatu 20, 00130 Helsinki. Notice to the Annual General Meeting will be given on 21 March 2017.
Publication of the annual report 2016
The annual report of Incap Group including the Report of the Board of Directors and the Auditor’s report for 2016 will be published during week 12/2017 at the company’s website www.incapcorp.com.
Financial reporting of Incap in 2017
Incap will publish the Half-year Report in compliance with IAS 34 for January-June 2017 on Wednesday, 23 August 2017 as well as financial business reports for January-March on Tuesday, 16 May 2017 and for January-September on Tuesday, 14 November 2017.
In Helsinki, 20 February 2017
Board of Directors
For additional information, please contact:
Ville Vuori, President and CEO, tel. +358 400 369 438
Nasdaq Helsinki Ltd
The company’s home page www.incapcorp.com
1 Consolidated Statement of Comprehensive Income
2 Consolidated Balance Sheet
3 Consolidated Cash Flow Statement
4 Consolidated Statement of Changes in Equity
5 Group Key Figures and Contingent Liabilities
6 Quarterly Key Figures
7 Calculations of Key Figures
INCAP IN BRIEF
Incap Corporation is an international contract manufacturer. Incap’s customers are leading suppliers of high-technology equipment in their own business segments, and Incap increases their competitiveness as a strategic partner. Incap has operations in Finland, Estonia, India and China, and the company currently employs approximately 520 people. Incap’s share is listed on the Nasdaq Helsinki Ltd. as from 1997. Additional information: www.incapcorp.com.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (IFRS), CONTINUING OPERATIONS
|(1,000 euros, unaudited)||
|Change in inventories of finished goods||575||249%||165||266||-30|
|Other operating income||246||582%||36||219||8|
|Raw materials and consumables used||28,519||35%||21,147||15,564||11,973|
|Depreciation, amortisation and impairment losses||369||10%||337||199||182|
|Other operating expenses||2,643||8%||2,437||1,509||1,371|
|Financing income and expenses||-553||18%||-470||-294||-276|
|PROFIT/LOSS BEFORE TAX||3,833||19%||3,222||1,890||1,938|
|Income tax expenses||-1,091||-10%||-1,210||-414||-771|
|PROFIT/LOSS FOR THE PERIOD||2,742||36%||2,012||1,476||1,167|
|Earnnings per share, euro *)||0.63||21%||0.52||0.34||0.32|
|OTHER COMPREHENSIVE INCOME|| 1-12/
|Change, %|| 1-12/
|Items that may be recognised in profit or loss at a later date:|
|Translation differences from foreign units||158||-26%||215||407||-153|
|Other comprehensive income, net||158||215||407||-153|
|TOTAL COMPREHENSIVE INCOME||2,900||30%||2,227||1,883||1,014|
|Shareholders of the parent company||2,900||30%||2,227||1,883||1,014|
*) The number of shares was reduced during the report period based on the resolution of the Annual General Meeting so that each 50 pieces of previous share of the company now corresponds to one share. In practice, the number of shares in the report period has been divided by 50. The corresponding periods have been adjusted in the same way.
CONSOLIDATED BALANCE SHEET (IFRS), CONTINUING OPERATIONS
|(EUR thousands, unaudited)||31 December 2016||Change, %||31 December 2015|
|Property, plant and equipment||2,883||29%||2,230|
|Other intangible assets||40||-34%||61|
|Other financial assets||6||-6%||6|
|TOTAL NON-CURRENT ASSETS||4,736||15%||4,113|
|Trade and other receivables||8,320||23%||6,771|
|Cash and cash equivalents||2,347||14%||2,068|
|TOTAL CURRENT ASSETS||16,947||21%||14,011|
|TOTAL EQUITY AND LIABILITIES|
|Equity attributable to equity holders of the parent company|
|Share premium account||0||-100%||44|
|Reserve for invested unrestricted equity||11,028||-43%||19,464|
|Interest-bearing loans and borrowings||3,752||-18%||4,567|
|Trade and other payables||5,161||12%||4,607|
|Current interest-bearing loans and borrowings||4,223||28%||3,303|
|TOTAL EQUITY AND LIABILITIES||21,683||20%||18,124|
CONSOLIDATED CASH FLOW STATEMENT (IFRS), CONTINUING OPERATIONS
|(EUR thousands, unaudited)||1-12/2016||1-12/2015|
|Cash flow from operating activities|
|Adjustments to operating profit||508||316|
|Change in working capital||-1,775||-1,419|
|Interest paid and payments made||-512||-918|
|Paid tax and tax refund||-1,486||-763|
|Cash flow from operating activities||1,126||992|
|Cash flow from investing activities|
|Capital expenditure on tangible and intangible assets||-982||-940|
|Capital gain on shares||0||268|
|Cash flow from investing activities||-982||-672|
|Cash flow from financing activities|
|Proceeds from share issue||0||1,993|
|Drawdown of loans||4,712||2,996|
|Repayments of borrowings||-4,612||-5,159|
|Cash flow from financing activities||100||-169|
|Change in cash and cash equivalents||245||151|
|Cash and cash equivalents at beginning of period||2,068||1,873|
|Effect of changes in exchange rates||35||43|
|Cash and cash equivalents at end of period||2,347||2,068|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (IFRS), CONTINUING OPERATIONS
|(EUR thousands, unaudited)||Share capital||Share premium account||Reserve for invested unrestricted equity||Exchange differences|| Retained
|Equity at 1 January 2016||20,487||44||19,464||-673||-33,675||5,647|
|Total comprehensive income||2,742||2,742|
|Currency translation differences||158||158|
|Transactions with shareholders|
|Other changes *)||-19,487||-44||-8,436||27,967||0|
|Equity at 31 December 2016||1,000||0||11,028||-515||-2,966||8,547|
|Equity at 1 January 2015||20,487||44||17,471||-888||-35,687||1,427|
|Total comprehensive income||2,012||2,012|
|Currency translation differences||215||215|
|Transactions with shareholders||2,182||2,182|
|Equity at 31 December 2015||20,487||44||19,464||-673||-33,675||5,647|
*) The Annual General Meeting held on 6 April 2016 decided that the losses accumulated during the financial period ending on 31 December 2015 and during previous financial periods will be covered by decreasing the unrestricted equity reserve by EUR 16,804,218.62, the share premium account by EUR 44,316.59 and the share capital by EUR 11,118,952.29. After covering the losses the remaining share capital was further decreased by EUR 8,367,817.21 by transferring the funds to the unrestricted equity reserve.
GROUP KEY FIGURES AND CONTINGENT LIABILITIES (IFRS), CONTINUING OPERATIONS
31 Dec 2016
31 Dec 2015
|Revenue, EUR million||38.6||30.6|
|Operating profit/loss, EUR million||4.4||3.7|
|% of revenue||11.0||12.1|
|Profit/loss before taxes, EUR million||3.8||3.2|
|% of revenue||10.0||10.5|
|Return on investment (ROI), %||29.6||26.0|
|Return on equity (ROE), %||38.6||56.9|
|Equity ratio, %||39.4||31.2|
|Net Gearing, %||65.8||98.3|
|Net debt, EUR million||5.6||5.6|
| Average number of shares during the review
period, adjusted for share issues
|Earnings per share (EPS), EUR||0.63||0.52|
|Equity per share, EUR||1.96||1.29|
|Dividend per share, EUR||0||0|
|Dividend out of profit, %||0||0|
|Trend in share price|
|Minimum price during the period, EUR||4.95||0.03|
|Maximum price during the period, EUR||8.65||0.20|
|Mean price during the period, EUR||6.43||0.12|
|Closing price at the end of the period, EUR||5.46||0.16|
|Total market capitalisation, EUR million||23.8||34.3|
|Trade volume, no. of shares||40,565,856||123,997,394|
|Trade volume, %||929||57|
|Investments, EUR million||1.0||0.9|
|% of revenue||2.5||3.0|
|Average number of employees||511||425|
|CONTINGENT LIABILITIES, EUR million|
|FOR OWN LIABILITIES|
|Mortgages and pledges||14.6||14.6|
|Off-balance sheet liabilities||3.0||1.4|
KEY FIGURES BY REPORT PERIOD (IFRS), CONTINUING OPERATIONS
|Revenue, EUR million||38.6||30.6||20.8||17.3||17.9||13.3|
|Operating profit, EUR million||4.4||3.7||2.2||2.2||2.2||1.5|
|% of revenue||11.0||12.0||10.5||13.0||12.3||11.0|
|Profit before taxes, EUR million||3.8||3.2||1.9||1.9||1.9||1.3|
|% of revenue||10.0||11.0||9.1||11.0||10.9||10.0|
|Return on investment (ROI), %||29.6||26.0||24.0||22.8||32.9||19.2|
|Return on equity (ROE), %||38.6||56.9||38.8||45.4||41.1||55.8|
|Equity ratio, %||39.4||31.2||39.4||31.2||35.0||26.3|
|Net Gearing, %||65.8||98.3||65.8||98.3||87.0||100.4|
|Net debt, EUR million||5.6||5.6||5.7||5.6||5.8||4.7|
|Average number of shares during the review period, adjusted for share issues||4,365,168||3,835,433||4,365,168||3,657,119||4,365,168||2,194,338|
|Earnings per share (EPS), EUR||0.63||0.52||0.34||0.32||0.29||0.39|
|Equity per share, EUR||1.96||1.29||1.96||0.03||1.53||1.06|
|Investments, EUR million||1.0||0.9||0.4||0.2||0.6||0.7|
|% of revenue||2.5||3.0||1.8||1.1||3.4||5.5|
|Average number of employees||511||425||525||456||498||393|
CALCULATION OF KEY FIGURES
Return on investment, %
|100 x (profit/loss for the period + financial expenses)|
|equity + interest-bearing financing loans|
|Return on equity, %||100 x profit/loss for the period|
|average equity during the financial period|
|Equity ratio, %||100 x equity|
|balance sheet total – advances received|
|Net gearing, %||100 x net debt|
|Net debt||Interest-bearing debt – cash and bank accounts|
|Quick ratio||current assets|
|short-term liabilities – short-term advances received|
|Current ratio||current assets + inventories|
|Earnings per share||net profit/loss for the period|
|average number of shares during the period, adjusted for share issues|
|Equity per share||equity|
|number of shares at the end of the period, adjusted for share issues|
|Capital expenditure||VAT-exclusive working capital acquisitions, without deduction of investment subsidies|
|Average number of employees||average of personnel numbers calculated at the end of each month|
|Total market capitalisation||closing price for the period x number of shares available for public trading|