The Group’s 9 months sales revenue was 36.0 million euros and in the accounting quarter 11.6 million euros. From the beginning of the year, the operating profit has grown steadily quarter to quarter reached 0.8 million in the Q3 and being almost on the same level as in comparable periods. In the accounting quarter, EBIT improved by 1 percentage point and was 6.6% (Q3 2012: 5.6%). In the 9 months-period, operating profit amounted 1.5 million euros and EBIT was 4.2% (9M 2012: 4.5%). Overall, the consolidated net profit of the 9M 2013 increased to 4.9 million euros and to 2.4 million euros in Q3 2013. EPS in 9 months was 0.28 (9M 2012: 0.20) euros and in third quarter 0.14 (Q3 2012: 0.07) euros.
| Change | July – September | Change | January – September | Year | |||
| (thousand euros) | % | 2013 | 2012 | % | 2013 | 2012 | 2012 |
| Revenue | -20.3 | 11,551 | 14,486 | -10.5 | 36,000 | 40,236 | 52,801 |
| Gross profit | -7.1 | 2,262 | 2,435 | -5.5 | 6,327 | 6,694 | 8,653 |
| EBITDA | -4.6 | 1,136 | 1,191 | -9.4 | 2,643 | 2,918 | 3,439 |
| EBIT | -6.6 | 763 | 817 | -16.0 | 1,531 | 1,822 | 1,970 |
| Profit for the period | 81.5 | 2,407 | 1,326 | 42.1 | 4,876 | 3,431 | 3,603 |
| incl attributed to Owners of the Company | 93.6 | 2,432 | 1,256 | 45.2 | 4,835 | 3,329 | 3,517 |
The decrease in consolidated sales revenue was caused by a decrease in sales and commissions in the production segment, which accounted for about 90% of sales revenue this year. Around 83% of the sales revenue came from the production and sale of electrical equipment. In the accounting quarter, both the production and sales volume of electrical devices decreased by 2.8 million euros, reaching 9.5 million euros, and in the period of 9 months, by 4.0 million euros reaching 29.8 million euros. The greatest setbacks in the production volumes of electrical devices occurred in the segments of Finland (-3.0 million euros) and Lithuania (-0.9 million euros).
61% of the Group’s products and services were sold in foreign markets, outside Estonia (9M 2012: 65%) and 93% revenues received from the Group’s companies home markets – Estonia, Finland, Sweden, Lithuania.
In the reporting quarter, operating costs decreased 21%; with 23% lower costs related to the sale of products and services and 7% lower costs related to administration and distribution. During the first nine months of the year, costs related to sold products decreased by 3.9 million euros to 29.7 million euros, resulting in a gross profit margin of 17.6% with an improvement of 1 percentage point.
In Q3 2013, the average 454 people worked in the Group − on the average by 25 persons less than in the reference period. During the first 9 months, the average number of employees decreasing by 24 persons. In Q3 2013, the average 457 people worked in the Group − on the average by 10 persons less than in the reference period. During the first 9 months, the average number of employees decreased by 10 persons up to 461 employees. Because of that, in the reporting quarter, labour costs decreased by 8.0% and by 5% during 9 months-period. In the third quarter, employee wages and salaries totalled 1,985 (Q3 2012: 2,206) thousand euros and during the first 9 months 6,398 (9M 2012: 6,826) thousand euros. The average wages per employee per month amounted 1,538 (9M 2012: 1,683) euros.
During 9 months, the amount of the consolidated balance sheet increased by 13.1 million euros and compared to the period under review by 13.7 million euros, and as of 30 September 2013, was 72.7 million euros. Most of the growth derived from value adjustment of long-term financial investments. The market price of PKC Group Oyj shares increased in accounting quarter by 5.75 (Q3 2012: 1.90) euros and the share price in Helsinki Stock Exchange in last trading day of September was 23.95 (a year before: 14.03) euros. During nine months, the market price of PKC Group Oyj shares increased by 8.52 (9M 2012: 2.60) euros. The cost of investment in assets and reserves in equity capital increased by the profit of 11.4 (9M 2012: 3.6) million euros, received from stock revaluation. In third quarter, AS Harju Elekter bought 11 ha of production land on the outskirts of Tallinn, in Allika Industrial Park, with the objective being future industrial real estate development. During the 9-months period, the Group’s investments to real estate, tangible fixed assets and intangible fixed assets totalling 1.98 (9M 2012: 0.53) million euros.
At the balance date 30 September 2013, fixed assets amounted 75.4% (30 September 2012: 70.1%) and owners’ equity 86.9% (30 September 2012: 82.0%) of the cost of assets.
The Group’s 9-month current ratio and the quick ratio improved both by 0.3, compared to the reference period, being 2.1 and 1.3.
As at September 30 2013 AS Harju Elekter had 1,481 shareholders. The largest shareholder of AS Harju Elekter is AS Harju KEK, a company based on local capital which held 32.0 % of AS Harju Elekter’s share capital.
Andres Allikmäe
Managing director/ CEO
Tel +372 674 7400
For more information: Internal report 1-9/2013
| AS HARJU ELEKTER | ||||
| BALANCE SHEET, 30.09.2013 | ||||
| Consolidated, unaudited | ||||
| Group | ||||
| EUR’000 | ||||
| ASSETS | 30.09.13 | 31.12.12 | ||
| Cash and cash equivalents | 3 320 | 3 352 | ||
| Trade receivables and other receivables | 6 867 | 6 493 | ||
| Prepayments | 507 | 232 | ||
| Prepaid income tax | 46 | 0 | ||
| Inventories | 7 186 | 6 395 | ||
| TOTAL CURRENT ASSETS | 17 926 | 16 472 | ||
| Deferred income tax asset | 4 | 5 | ||
| Investments in associates | 3 445 | 2 295 | ||
| Other long-term financial investments | 31 028 | 21 386 | ||
| Investment property | 10 135 | 10 454 | ||
| Property, plant and equipment | 9 789 | 8 546 | ||
| Intangible assets | 397 | 451 | ||
| Total non-current assets | 54 798 | 43 137 | ||
| TOTAL ASSETS | 72 724 | 59 609 | ||
| LIABILITIES AND OWNERS’ EQUITY | ||||
| Interest-bearing loans and borrowings | 1 155 | 1 075 | ||
| Trade payables and other payables | 5 926 | 5 902 | ||
| Tax liabilities | 1 077 | 1 049 | ||
| Income tax liabilities | 0 | 75 | ||
| Short-term provision | 28 | 23 | ||
| TOTAL CURRENT LIABILITIES | 8 186 | 8 124 | ||
| NON-CURRENT LIABILITIES | 1 349 | 1 349 | ||
| TOTAL LIABILITIES | 9 535 | 9 473 | ||
| Share capital | 12 180 | 12 180 | ||
| Share premium | 240 | 240 | ||
| Restricted reserves | 31 111 | 21 354 | ||
| Retained earnings | 18 289 | 15 008 | ||
| TOTAL OWNERS’ EQUITY | 61 820 | 48 782 | ||
| Non-controlling interests | 1 369 | 1 354 | ||
| TOTAL EQUITY | 63 189 | 50 136 | ||
| TOT.LIABILIT.AND OWNERS’ EQUITY | 72 724 | 59 609 | ||
| INCOME STATEMENT, 1-9/2013 | ||||
| Consolidated,unaudited | ||||
| EUR’000 | ||||
| GROUP | Q3 2013 | Q3 2012 | M9 2013 | M9 2012 |
| NET SALES | 11 551 | 14 486 | 36 000 | 40 236 |
| Cost of goods sold | -9 289 | -12 051 | -29 673 | -33 542 |
| Gross profit | 2 262 | 2 435 | 6 327 | 6 694 |
| Marketing expenses | -586 | -759 | -1 890 | -2 113 |
| Administrative expenses | -913 | -855 | -2 897 | -2 773 |
| Other revenue | 13 | 8 | 32 | 48 |
| Other expenses | -13 | -12 | -41 | -34 |
| Operating profit | 763 | 817 | 1 531 | 1 822 |
| Net financial incomes/expenses | 1 221 | 9 | 2 615 | 1 003 |
| Income from subsidiaries | 467 | 561 | 1 150 | 1 014 |
| Profit from normal operations | 2 451 | 1 387 | 5 296 | 3 839 |
| Corporate Income tax | -44 | -61 | -420 | -408 |
| Profit after taxes | 2 407 | 1 326 | 4 876 | 3 431 |
| Profit attributable to: | ||||
| Owners of the Company | 2 432 | 1 256 | 4 835 | 3 329 |
| Non-controlling interest | -25 | 70 | 41 | 102 |
| Basic earnings per share (EUR) | 0,14 | 0,07 | 0,28 | 0,2 |
| Diluted earnings per share (EUR) | 0,14 | 0,07 | 0,28 | 0,2 |
Karin Padjus
FO
+372 674 7403
