Börsiteade

Pealkiri

Harju Elekter Group financial results, 1-6/2015

Teade

The Group’s sales revenue in the accounting quarter was 16.6 (H1 2014: 11.1) million euros and in 6- months period 27.5 (H1 2014: 20.8) million euros. During the reporting quarter, sales revenue increased by 52% or 5.6 million euros compared to the previous quarter, and 50% or 5.5 million euros in relation to the comparison period. The consolidated net profit of the H1 2015 was 1.6 million euros. The results of the first six months of the year were the most affected by the following circumstances: the reporting period that is compared does not reflect the business results of Finnkumu Oy (acquired in June 2014); the net profit of the first six months of 2014 include the financial income from the sale of PKC Group Oyj shares at 4.6 million euros and the consolidated profit of 0.8 million euros from the related company (AS Draka Keila Cables).

                      Change April - June Change  January-June   Year 
(thousand euros)           %   2015 2014       %   2015   2014   2014 
Revenue                 49.6 16,590 11,092  32.7 27,535 20,753 50,606 
Gross profit            60.3  3,081  1,922  32.1  4,779  3,616  9,081 
EBITDA                 137.9  1,751    736  81.8  2,139  1,177  3,741 
EBIT                   281.2  1,380    362 236.8  1,408    418  2,228 
Profit for the period  -73.6  1,573  5,954 -75.0  1,583  6,325  9,778 
incl attributed to 
Owners of the Company  -73.9  1,557  5,970 -75.3  1,572  6,361  9,697 

There has been a growth in sales revenue among almost all products and services. 91% of sales income was earned from the Production segment, and Real Estate together with other areas of activity contributed 9% of the consolidated sales volume.87%(Q2 2014: 81%) of the reporting quarter sales revenue originated from the sale of electrical equipment. There was 14.4 million euros worth of electrical equipment sold in the reporting quarter, which was 5.4 million euros or 59% more than in the comparison quarter, with sales of equipment growing 38% in the 1st half of the year, to 23.3 million euros. The biggest contribution to the increase of sales volume came from Finnkumu Oy, whose sales income not included in H1 2014 results and from UAB Rifas, whom realized a one large-scale project to Norwegian market in the reporting quarter. 

In H1 2015, 76% (H1 2014: 65%) of the Group’s products and services were sold in foreign markets, outside Estonia and in the reporting quarter 79% (Q2 2014: 67%). Finland is the biggest market of the Group and 61% (H1 2014: 50%) of the Group’s products and services were sold on the Finnish market in first half of the year. The share of the Finnish market in the consolidated sales revenue has grown 9 percentage points in the second quarter and 11 percentage points during the half-year when compared to the respective periods of 2014. The share of the Estonian market in the consolidated sales decreased during a year by 10.5 percentage points to 24.1%. The decline was mainly due to the non-performance of the contractual order volume by Eesti Energia, which was one third less than in the comparable period. 

Operating expenses increased 41% in the reporting quarter and 29% in the first half of the year compared to the reference periods. Cost of sales increased 47% in the reporting quarter. Since the sales revenue of the reporting quarter increased at a pace that exceeded the cost of sales, improved the gross profit margin. The cost of sales increased 33% during the first six months, at the same pace sales revenue. In H1, distribution cost as well as administrative expenses increased marginally and the rates to revenue decreased accounted  4.9%  (H1 2014: 6.2%) and 7.5% (H1 2014: 9.2%), respectively. 

In Q2 2015, the average 481 people worked in the Group ? on the average by 37 persons more than in the reference period. In the first half of the year, the average number of employees increased by 32 to 474. During the first 6 months employee wages and salaries totalled 4,802 (H1 2014: 4,331) thousand euros. The average wages per employee per month amounted to 1,714 (H1 2013: 1,633) euros.

In the second quarter the gross profit of the Group was 3,081 (Q2 2014: 1,922) thousand euros. The gross profit margin was 18.6% being 1.3 per cent point better compering to the same period a year before. In the first half of the year, the gross profit of the Group was 4,779 (H1 2014: 3,616) thousand euros and the gross profit margin was 17.4% being on the same level as a year before.

The Group’s operating profit in the reporting quarter was 1,380 (Q2 2014: 362) thousand euros and EBITDA 1,751 (Q2 2014: 736) thousand euros. Return of sales for the accounting quarter was 8.3% (Q2 2014: 3.3%) and return of sales before depreciation 10.6% improving by 4.0 per cent point, compering to the same period a year before.

In H1 2015, EBITDA increased by 962 thousand euros to 2,139 thousand euros and operating profit by 990 thousand euros to 1,408 thousand euros. Return of sales before depreciation 7.8% (H1 2014: 5.7%) and return of sales 5.1% (H1 2014: 2.0%).

PKC Group Oyj paid dividends to the shareholders 0.70 euros per share. Dividend income from the shares was 766 (Q2 20134 906) thousand euros. In total, financial investments yielded a profit of 785 thousand euros in the first half of the year, which was 4,763 thousand euros lower, than in the comparable period. In Q2 2014, 200,000 shares of PKC Group Oyj were sold.

The consolidated net profit of the Q2 2015 was 4,573 (Q2 2014: 5,954) thousand euros, of which the share of the owners of the Company was 1,557 (Q2 2014: 5,970) thousand euros. EPS in the Q2 was 0.09 (Q2 2014: 0.34) euros. 

Overall, the consolidated net profit of the H1 2015 was 1,583 (H1 2014: 6,325) thousand euros. The share of the owners of the Company was 1,572 (H1 2014: 6,361) thousand euros. In H1, EPS was 0.09 (H1 2014: 0.37) euros. 

During the 6-months period, the Group’s investments to non-current assets totalled 4.5 (H1 2014: 4.0, incl through business combinations 3.3) million euros. 

Andres Allikmäe
Managing director/ CEO
+372 674 7400

For more information: Internal report 1-6/2015 


AS HARJU ELEKTER         
BALANCE SHEET, 30.06.2015         
Consolidated, unaudited         
          
Group         
EUR'000         
ASSETS                          30.06.15 31.12.14     
Cash and cash equivalents 2 263 9 984     
Available-for-sale financial assets 0 35     
Trade receivables and other receivables 8 914 6 484     
Prepayments 688 455     
Prepaid income tax 49 79     
Inventories 11 141 8 104     
TOTAL CURRENT ASSETS                     23 055 25 141     
Other long-term financial investments 24 128 19 145     
Investment property 13 165 12 109     
Property, plant and equipment 8 294 7 968     
Intangible assets 5 448 5 429     
Total non-current assets 51 035 44 651     
TOTAL ASSETS                              74 090 69 792     
LIABILITIES AND OWNERS' EQUITY                  
Interest-bearing loans and borrowings 1 641 278     
Trade payables and other payables 8 572 6 989     
Tax liabilities   1 104 1 072     
Income tax liabilities 271 12     
Short-term provision 4 39     
TOTAL CURRENT LIABILITIES                 11 592 8 390     
NON-CURRENT LIABILITIES             1 956 1 560     
TOTAL LIABILITIES                         13 548 9 950     
Share capital                             12 180 12 180     
Unregistered share capital 238 0     
Share premium 804 240     
Restricted reserves                       21 976 19 393     
Retained earnings                         25 200 26 664     
TOTAL OWNERS' EQUITY                       60 398 58 477     
Non-controlling interests 144 1 365     
TOTAL EQUITY                       60 542 59 842     
TOT.LIABILIT.AND OWNERS' EQUITY      74 090 69 792     
          
          
INCOME STATEMENT,  1-6/2015         
Consolidated,unaudited         
          
EUR’000         
GROUP    Q2 2015   Q2 2014    H1 2015    H1 2014 
          
NET SALES 16 590 11 092 27 535 20 753 
Cost of goods sold -13 509 -9 170 -22 756 -17 137 
Gross profit 3 081 1 922 4 779 3 616 
Marketing expenses -663 -646 -1 347 -1 296 
Administrative expenses -1 028 -929 -2 054 -1 899 
Other revenue 7 26 61 35 
Other expenses -17 -11 -31 -38 
Operating profit 1 380 362 1 408 418 
Finance income 771 5 531 785 5 548 
Finance costs -22 -9 -29 -16 
Income from subsidiaries 0 491 0 815 
Profit from normal operations 2 129 6 375 2 164 6 765 
Corporate Income tax -556 -421 -581 -440 
Profit for the period, attributable to 1 573 5 954 1583 6 325 
   owners of the Company 1 557 5 970 1572 6 361 
   non-controlling interest 16 -16 11 -36 
Basic earnings per share  (EUR) 0,09 0,34 0,09 0,37 
Diluted earnings per share  (EUR) 0,09 0,34 0,09 0,37 

Tiit Atso
CFO
+372 674 7422