Financial results, 1-6/2014

06.08.2014 Reports

The Group’s six months sales revenue was 20.8 million euros and in the accounting quarter 11.1 million euros, which was 15% higher comparing to the Q1 2014. Most of the operating profit in the amount of 0.4 million euros earned in the reporting quarter. Two important events took place in Q2: purchasing of the Finland’s largest substations manufacturer Finnkumu Oy and in order to promptly finance the purchase of the Finnish subsidiary also 200,000 shares of PKC Group Oyj at an extraordinarily high price level were sold. Overall, the consolidated net profit of the H1 2014 increased to 6.4 million euros and to 6.0 million euros in Q2 2014.

Change

April – June

Change

January – June

Year

(thousand euros)

%

2014

2013

%

2014

2013

2013

Revenue

-15.1

11,092

13,060

-15.1

20,753

24,450

48,288

Gross profit

-18.0

1,922

2,344

-11.1

3,616

4,066

8,458

EBITDA

-22.6

736

951

-21.9

1,177

1,507

3,269

EBIT

-37.5

362

579

-45.5

418

768

1,743

Profit for the period

239.8

5,954

1,752

156.1

6,325

2,470

5,173

incl attributed to Owners of the Company

250.1

5,970

1,705

164.7

6,361

2,403

5,162

Business at the beginning of this year has started more slowly than in previous years, but there were some improvements in Q2. Revenue increased in the reporting quarter compared to the previous quarter, 15% or 1.4 million euros, remaining nonetheless 15% below the comparable periods. 89% of sales revenue was earned from the Production segment, and Real Estate together with Unallocated Activities contributed 11% of the consolidated sales volume. The Manufacturing segment is engaged in the manufacturing and sales of electricity distribution and control equipment and in related activities. The revenue from the sales of electrical equipment comprised 91% of the sales volume for Manufacturing and 81% of the consolidated revenue, down by more than 17% both in the reporting quarter and in H1 2014.

Decreased investments in the energy distribution sector in Estonia this year have resulted in a decrease in the sales volumes for medium voltage distribution equipment and substations. Sales on the Estonian market declined 27% in the reporting quarter and one-fifth in the first half of the year, decreasing the share of the Estonian market in the consolidated revenue to 34.6%. The Finnish export sector remains in recession, and once again we have to recognise the 10% drop in the sales volumes of the technology sector, compared to the first half of 2013. Sales from the Group’s Finnish company in this sector decreased 17.5% in the first half of the year. At the same time, the 6-months revenue for the Finnish company has increased 8%, due to the resale of other Group’s companies’ products. Revenue from the resale of products from the Group’s Estonian and Lithuanian companies made up 43% of the revenue for the Finnish company, increasing 2.3 times to 4.2 million euros, in the first six months. A considerable portion of the consolidated sales revenue, including the decline in the sales of electrical equipment, came from the Lithuanian segment, where revenue decreased by 41% against the comparable period, mainly due to a decrease in the sales from projects. In the first half of the year, sales on the Lithuanian market decreased 80%, generating just 1.8% (H1 2013: 7.3%) of the consolidated revenue. At the same time, companies in the Lithuanian segment have increased their sales volumes to foreign markets by more than 15%.

The revenue earned by the Group outside Estonia made up 65.4% in the first half of 2014, rising to 66.5% in the reporting quarter. Increasing the share of foreign markets has been, and also will be in the longer term, one of the strategic objectives for the managers of the Group. More than 86% revenue received from home markets of the Group’s companies. The tense situation in Ukraine has decreased deliveries by 0.5 million euros in the direction of Eastern Europe. Switzerland and Czech were added as new markets.

Operating expenses decreased 13.8% to 10.7 million euros in the reporting quarter and 14.1% to 20.3 million euros in the first half of the year, at a rate slightly below the sales revenue (15.1%). There was a decrease in operating expenses, with the cost of sales decreasing 14.4% to 9.2 million euros in Q2 and 15.9% to 17.1 million euros in the first six months. Since the cost of sales decreased at a pace that exceeded the sales revenue during the six months, the gross profit margin improved by 0.8 percentage points in comparison to the indicator for the comparable period.

In Q2 2014, the average 444 people worked in the Group − on the average by 20 persons less than in the reference period. In the first half of the year, the average number of employees decreased by 21 against the comparable period, to 442. Although the adjustment in the salaries of the Group’s staff in 2013 resulted in a rise in fixed costs, the Group was able to respond promptly to the decrease in sales orders and implemented austerity measures. Labour costs decreased by 5.1% to 3.0 million euros and by 1.3% to 5.8 million euros, respectively. In the accounting quarter, employee wages and salaries totalled 2,162 (Q2 2013: 2,305) thousand euros and during the first 6 months 4,331 (H1 2013: 4,414) thousand euros. The average wages per employee per month amounted to 1,633 (H1 2013: 1,591) euros.

The Group’s operating profit in the reporting quarter was 362 (Q2 2013: 579) thousand euros and EBITDA 736 (Q2 2013: 951) thousand euros. Return of sales for the accounting quarter was 3.3% (Q2 2013: 4.4%) and return of sales before depreciation 6.6% being 0.7 per cent point lower compering to the same period figure a year before. The Group’s EBITDA in first half of the year decreased by 0.33 million euros to 1.18 million euros and EBIT by 0.35 million euros to 0.42 million euros. The decrease in operating profit was the result of the decreased proportion of value added products in the product portfolio. In H1, return of sales before depreciation was 5.7% (H1 2013: 6.2%) and return of sales for the accounting quarter was 2.0% (H1 2013: 3.1%).

In the reporting quarter, dividend income was 906 (Q2 2013: 948) thousand euros and also 200,000 PKC Group Oyj shares were sold. The financial income from selling the shares amounted to 4.6 million euros. In total, financial investments yielded a profit of 5.5 million euros both in the reporting quarter as well as in the first half of the year. In the comparable periods these figures were 0.9 million euros and 1.4 million euros respectively. In Q2, the Group consolidated from the associated company a profit of 491 (Q2 2013: 608) thousand euros and totally in H1 815 (H1 2013: 683) thousand euros.

The consolidated net profit of the quarter under review was 5.95 (Q2 2013: 1.75) million euros; the share of the owners of the Company was 5.97 (Q2 2013: 1.71) million euros. EPS in the Q2 was 0.34 (Q2 2013: 0.10) euros. Overall, the consolidated net profit of the H1 2014 was 6.33 million euros, being 2.6 times better. The share of the owners of the Company was 6.36 million euros. EPS in the H1 was 0.37 (H1 2013: 0.14) euros.

Andres Allikmäe
Managing director/ CEO
Tel +372 674 7400

For more information: Internal report 1-6/2014

AS HARJU ELEKTER
BALANCE SHEET, 30.06.2014
Consolidated, unaudited
Group
EUR’000
ASSETS 30.06.14 31.12.13
Cash and cash equivalents 3 252 4 102
Available-for-sale financial assets 112 0
Trade receivables and other receivables 7 912 5 699
Prepayments 414 256
Prepaid income tax 64 41
Inventories 9 352 5 801
TOTAL CURRENT ASSETS 21 106 15 899
Deferred income tax asset 7 7
Investments in associates 4 413 3 598
Other long-term financial investments 22 922 31 339
Investment property 11 566 11 663
Property, plant and equipment 8 184 8 129
Intangible assets 3 774 436
Total non-current assets 50 866 55 172
TOTAL ASSETS 71 972 71 071
LIABILITIES AND OWNERS’ EQUITY
Interest-bearing loans and borrowings 941 654
Trade payables and other payables 8 547 4 437
Tax liabilities 1 057 969
Income tax liabilities 136 15
Short-term provision 25 36
TOTAL CURRENT LIABILITIES 10 706 6 111
NON-CURRENT LIABILITIES 1 139 1 141
TOTAL LIABILITIES 11 845 7 252
Share capital 12 180 12 180
Share premium 240 240
Restricted reserves 23 167 31 424
Retained earnings 23 292 18 635
TOTAL OWNERS’ EQUITY 58 879 62 479
Non-controlling interests 1 248 1 340
TOTAL EQUITY 60 127 63 819
TOT.LIABILIT.AND OWNERS’ EQUITY 71 972 71 071
INCOME STATEMENT,  1-6/2014
Consolidated,unaudited
EUR’000
GROUP Q2 2014 Q2 2013 H1 2014 H1 2013
NET SALES 11 092 13 060 20 753 24 450
Cost of goods sold -9 170 -10 716 -17 137 -20 384
Gross profit 1 922 2 344 3 616 4 066
Marketing expenses -646 -704 -1 296 -1 304
Administrative expenses -929 -1 045 -1 899 -1 984
Other revenue 26 1 35 18
Other expenses -11 -17 -38 -28
Operating profit 362 579 418 768
Finance income 5 531 955 5 548 1 417
Finance costs -9 -15 -16 -23
Income from subsidiaries 491 608 815 683
Profit from normal operations 6 375 2 127 6 765 2 845
Corporate Income tax -421 -375 -440 -375
Profit after taxes, incl 5 954 1 752 6 325 2 470
Net profit for the year 5 970 1 705 6 361 2 403
Non-controlling interest -16 47 -36 67
Basic earnings per share  (EUR) 0,34 0,1 0,37 0,14
Diluted earnings per share  (EUR) 0,34 0,1 0,37 0,14

Interim report 1-6/2014

Karin Padjus
FO
+372 674 7403

Recent news

26.02.2021 Harju Elekter employee Marko Paavel mentored youngsters in the Prototron Programme Read more... 23.02.2021 Harju Elekter Group financial results, 1-12/2020 Read more... 11.02.2021 Harju Elekter to conclude an important agreement in Sweden Read more... 08.02.2021 AS Harju Elekter comments on trading activity of its stock Read more... 20.01.2021 Harju Elekter Group concluded an agreement with Finland’s largest distribution network company Read more... 15.01.2021 Harju Elekter Group’s Finnish subsidiary’s name was changed Read more... 05.01.2021 Merger and division of the Group’s Finnish subsidiaries Read more... 01.01.2020 Archive Read more... 17.12.2020 Publication of Financial Reports in 2021 Read more... 16.12.2020 Changes in the Swedish subsidiaries of Harju Elekter Group Read more... 02.11.2020 The merger of Swedish subsidiaries of Harju Elekter Group was entered into the commercial register Read more... 28.10.2020 Harju Elekter Group financial results, 1-9/2020 Read more... 22.09.2020 Harju Elekter Group concluded an agreement with Finland’s second largest electricity distribution system operator Read more... 21.09.2020 Harju Elekter’s Swedish subsidiary signed a contract related to the upgrading of the Slussen metro station’s electrical substation in Stockholm Read more... 01.09.2020 Harju Elekter Group won an important tender in Finland Read more... 29.07.2020 Harju Elekter Group financial results, 1-6/2020 Read more... 22.07.2020 Harju Elekter invests up to 6 million euros in factory expansion of the Lithuanian subsidiary Read more... 09.07.2020 Dividend payment ex-date of Harju Elekter Read more... 30.06.2020 AGM decisions Read more... 03.06.2020 Harju Elekter notice of the AGM Read more... 30.04.2020 Harju Elekter will merge its Swedish subsidiaries Read more... 29.04.2020 Harju Elekter Group financial results, 1-3/2020 Read more... 27.03.2020 Audited annual report 2019 Read more... 17.03.2020 Appointment of the Chairman of the Management Board Read more... 21.02.2020 Harju Elekter Group financial results, 1-12/2019 Read more... 29.01.2020 Harju Elekter merges Finnish subsidiaries Read more... 20.12.2019 Publication of financial reports in 2020 Read more... 10.12.2019 Regarding changes in the management of Harju Elekter Read more... 09.12.2019 Harju Elekter won Elektrilevi tender Read more... 05.11.2019 Large order received by Harju Elekter’s subsidiary Read more... 31.10.2019 Harju Elekter Group financial results, 1-9/2019 Read more... 30.10.2019 Extension of the powers of Members of the Management Board of Harju Elekter Read more... 19.09.2019 Harju Elekter Lithuanian subsidiary opened new production facilities Read more... 03.09.2019 Changes to the governing bodies of Swedish subsidiaries of Harju Elekter Read more... 03.09.2019 Changes to the governing body of Harju Elekter’s Finnish subsidiary Read more... 02.09.2019 The subsidiary of Harju Elekter bought a real estate company in Finland Read more... 31.07.2019 Harju Elekter Group financial results, 1-6/2019 Read more... 04.07.2019 Harju Elekter brings subsidiaries under a joint trademark Read more... 13.05.2019 Dividend payment ex-date of Harju Elekter Read more... 02.05.2019 Harju Elekter Group financial results, 1-3/2019 Read more... 02.05.2019 AGM decisions Read more... 04.04.2019 Change in AS Harju Elekter subsidiary’s Management Board Read more... 03.04.2019 Harju Elekter notice of the AGM Read more... 02.04.2019 Audited annual report 2018 Read more... 27.02.2019 Harju Elekter Group financial results, 1-12/2018 Read more... 10.01.2019 Changes to the management boards of Harju Elekter’s subsidiaries Read more... 02.01.2019 Large order received by Harju Elekter’s subsidiary Read more... 21.12.2018 Publication of financial reports in 2019 Read more... 27.11.2018 Extension of delivery contract until 2020 Read more... 24.10.2018 Harju Elekter Group financial results, 1-9/2018 Read more... 06.09.2018 Harju Elekter raises its technology capacity Read more... 30.08.2018 Harju Elekter expands production capacity in Lithuania Read more... 25.07.2018 Harju Elekter Group financial results, 1-6/2018 Read more... 11.05.2018 Dividend payment ex-date of Harju Elekter Read more... 03.05.2018 AGM decisions Read more... 25.04.2018 Harju Elekter Group financial results, 1-3/2018 Read more... 04.04.2018 Audited annual report 2017 Read more... 20.03.2018 Harju Elekter Group won Elektrilevi tender Read more... 28.02.2018 Harju Elekter Group financial results, 1-12/2017 Read more... 09.02.2018 Harju Elekter Group won an important tender in Sweden Read more... 25.01.2018 Harju Elekter’s subsidiary won an important tender in Finland Read more... 05.01.2018 Changes to the management boards of Harju Elekter’s Finnish subsidiaries Read more... 21.12.2017 Publication of financial reports in 2018 Read more... 13.12.2017 Harju Elekter purchases SEBAB AB Read more... 13.12.2017 Correction: Harju Elekter purchases SEBAB AB Read more... 06.11.2017 Harju Elekter signed a Letter of Intent for the acquisition of all shares of SEBAB AB Read more... 27.10.2017 Changes in AS Harju Elekter subsidiary’s management board Read more... 25.10.2017 Harju Elekter Group financial results, 1-9/2017 Read more... 25.09.2017 Termination of the contract of service of the managing director of a subsidiary Read more... 11.09.2017 Commencement of negotiations Read more... 02.08.2017 Termination of the contract of service of the managing director of a subsidiary Read more... 26.07.2017 Harju Elekter Group financial results, 1-6/2017 Read more... 05.06.2017 Harju Elekter purchased Telesilta Oy Read more... 10.05.2017 Commencement of negotiations Read more... 04.05.2017 Extension of the authorisations of the Chairman of the Management Board Read more... 27.04.2017 AGM resolutions Read more... 26.04.2017 Harju Elekter Group financial results, 1-3/2017 Read more... 30.03.2017 Harju Elekter purchased a majority holding in Energo Veritas Read more... 28.03.2017 AS Harju Elekter notice of AGM Read more... 28.03.2017 Audited annual report 2016 Read more... 16.03.2017 AS Harju Elekter accepted a takeover bid for shares of PKC Group Plc Read more... 27.02.2017 Harju Elekter Group financial results, 1-12/2016 Read more... 20.01.2017 Motherson Sumi Systems made a takeover bid for shares of PKC Group Read more... 16.01.2017 The payment related to reduction of the share capital Read more... 13.01.2017 ADJUSTMENT: Large order received by Harju Elekter’s subsidiary Read more... 11.01.2017 Large order received by Harju Elekter’s subsidiary Read more... 28.12.2016 Publication of financial reports in 2017 Read more... 20.12.2016 Harju Elekter Group signed a large volume contract Read more... 27.10.2016 Harju Elekter Group financial results, 1-9/2016 Read more... 26.10.2016 Changes in the Management Board of AS Harju Elekter Read more... 21.10.2016 Harju Elekter laid the cornerstone for two new buildings in Allika Industrial Park Read more... 18.10.2016 Reduction of share capital was entered in the Commercial Register Read more... 14.10.2016 Harju Elekter acquired Finnish real estate company Kiinteistö Oy Uutvallinkulma Read more... 27.07.2016 Harju Elekter Group financial results, 1-6/2016 Read more... 28.04.2016 Harju Elekter Group financial results, 1-3/2016 Read more... 28.04.2016 Resolution of AGM Read more... 07.04.2016 CORRECTION: Notice of the AGM Read more... 06.04.2016 Audited annual report 2015 Read more... 06.04.2016 Notice of the AGM Read more... 05.04.2016 Restructuring of AS Harju Elekter subsidiaries in Estonia Read more... 26.02.2016 Harju Elekter – 50 years of experience in offering solutions for electricity distribution! Harju Elekter Group financial results, 1-12/2015 Read more... 22.12.2015 Publication of financial reports in 2016 Read more... 04.11.2015 Harju Elekter Group financial results, 1-9/2015 Read more... 08.08.2015 Harju Elekter Group financial results, 1-6/2015 Read more... 22.07.2015 Registration of the share capital increase in the Commercial Register Read more... 03.06.2015 AS Harju Elekter acquired a 10% holding in the ultracapacitors’ manufacturer Skeleton Technologies Group OÜ. Read more... 01.06.2015 Termination of the contract of service of the managing director of a subsidiary Read more... 14.05.2015 Resolutions of AGM Read more... 29.04.2015 Financial results, 1-3/2015 Read more... 24.04.2015 AS Harju Elekter acquired all of the shares of their Lithuanian subsidiary UAB Rifas Read more... 15.04.2015 AS Harju Elekter Supervisory Board approved audited annual report 2014 Read more... 14.04.2015 AS Harju Elekter notice of the annual general meeting Read more... 25.02.2015 Financial results, 1-12/2014 Read more... 29.12.2014 Publication of financial reports in 2015 Read more... 05.11.2014 Financial results, 1-9/2014 Read more... 09.07.2014 AS Harju Elekter sold its holding in AS Draka Keila Cables Read more... 17.06.2014 Group’s Finnish subsidiary purchases Finnkumu Oy Read more... 10.06.2014 Purchase of Finnkumu Oy approved by Supervisory Board Read more... 08.05.2014 Notice on the decrease of an important holding Read more... 08.05.2014 Resolutions of AGM Read more... 06.05.2014 Financial results, 1-3/2014 Read more... 30.04.2014 Commencement of negotiations Read more... 17.04.2014 Audited annual report 2013 Read more... 16.04.2014 Resignation Application from a Member of the Supervisory Board Read more... 16.04.2014 Invitation, agenda and proposals to the AGM of shareholders Read more... 28.02.2014 AS Harju Elekter consolidated unaudited results for Q4 and 12 months 2013 Read more... 28.02.2014 Suspension of the activities of Swedish subsidiary Harju Elekter AB Read more... 02.01.2014 Publication of financial reports in 2014 Read more... 02.01.2014 Publication of financial reports in 2014 Read more... 06.11.2013 Financial results, 1-9/2013 Read more... 22.10.2013 The subsidiary of AS Harju Elekter signed a large volume contract Read more... 07.08.2013 Financial results, 1-6/2013 Read more... 09.05.2013 Resolutions of AGM Read more... 07.05.2013 Financial results, 1-3/2013 Read more... 10.04.2013 Invitation, agenda and proposals to the AGM of shareholders Read more... 27.02.2013 Financial results, 1-12/2012 Read more... 11.01.2013 Publication of financial reports in 2013 Read more...