In Q3, the Group’s revenue and earnings increased comparing to the previous quarter as well as to the comparable period.
In July 2014, Group’s subsidiary Satmatic Oy purchased all shares of Finland’s largest pre-fabricated substation producer Finnkumu Oy, whose Q3 financial statements comprises Group’s Q3 and 1-9/2014 interim report since 1 July 2014. In July 2014, Group sold its 34% holding in AS Draka Keila Cables to the core investor Prysmian Group. Affiliated company’s profit is consolidated by the equity method till 30.6.2014. Both of these events have an impact on both the Group’s accounting quarter as well as 9-months consolidated financial results.
|
change |
July-September |
change |
January-September |
Year |
|||
| (thousand euros) |
% |
2014 |
2013 |
% |
2014 |
2013 |
2013 |
| Revenue |
35.8 |
15,687 |
11,551 |
1.2 |
36,440 |
36,000 |
48,288 |
| Gross profit |
43.4 |
3,242 |
2,262 |
8.4 |
6,858 |
6,327 |
8,458 |
| EBITDA |
67.8 |
1,907 |
1,136 |
16.7 |
3,084 |
2,643 |
3,269 |
| EBIT |
100.1 |
1,527 |
763 |
27.1 |
1,945 |
1,531 |
1,743 |
| Profit for the period |
33.0 |
3,200 |
2,407 |
95.3 |
9,525 |
4,876 |
5,173 |
| Incl.attributed to Owners of the Company |
27.5 |
3,102 |
2,432 |
95.7 |
9,463 |
4,835 |
5,162 |
Revenue increased in the reporting quarter compared to the previous quarter by 35.8% and reached 15.7 million euros. Because 50% of the growth came from Finnkumu Oy, the comparable increase in Q3 sales volumes was 10.9%. Consolidated sales revenue for the nine month period reached 36.4 million euros, having increased 1.2% in relation to the comparable period. 70% of the Group’s products and services sold outside Estonia.
90% of sales revenue was earned from the Production segment, and Real Estate together with Unallocated Activities contributed 10% 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 92.7% of the sales volume for Manufacturing and 83.7% of the consolidated revenue.
In the reporting quarter, the number of employees in the Group was an average of 14 more than in the comparable period. The Group companies have recruited new employees, and in Q3 additional temporary staff is traditionally used. Compared to the beginning of the year, the number of employees in the Group has increased by 22, with 18 added to the Group as a result of the acquisition of Finnkumu Oy in Q3. Labour costs increased in 9-months period by 4.7% to 8.8 million euros. The rate of labour costs to revenue formed 24.2% (9M 2013: 23.4%). In the Q3, employee wages and salaries totalled 2,361 (Q3 2013: 1,985) thousand euros and during the 9-months period 6,692 (9M 2013: 6,398) thousand euros. The average wages per employee per month amounted to 1,647 (9M 2013: 1,542) euros.
Cost of sales increased 34% in the reporting quarter and decreased 0.3% in 9-months period, at a rate slightly below the sales revenue by 1.8 percentage points in reporting quarter and by 1.5 percentage point in 9-months. Overall, the growth rate of operating expenses lagged behind that of sales revenue, having increased in the reporting quarter by 30.6%, to 14.1 million euros, but having decreased in the 9-month period by 0.1%, to 34.4 million euros.
Accordingly, the Group’s operating profit in the reporting quarter was 1.5 (Q3 2013: 0.8) million euros and EBITDA 1.9 (Q3 2013: 1.1) million euros. Return of sales for the accounting quarter was 9.7% (Q3 2013: 6.6%) and return of sales before depreciation 12.2% being 2.4 per cent point better compering to the same period a year before. During 9-months period, EBITDA as well EBIT increased both by 0.4 million euros to 3.1 million and to 1.9 million euros, respectively.
PKC Group Oyj paid dividends to the shareholders 0.70 euros per share. Dividend income from the shares was 907 (2013: 948) thousand euros. In the second quarter, also 200,000 shares of PKC Group Oyj were sold and the financial income from selling the shares was 4.6 (9M 2013:1.7) million euros. The profit from financial investment totalled 5.5 million euros in the 9-months period; in the comparable period it was 2.6 million euros. During the 9 months, finance income amounted to 5.6 (9M 2013: 2.6) million euros.
In the reporting quarter, the Group sold their 34% holding in AS Draka Keila Cables and the financial income from selling the shares was 1.8 million euros. During the reporting period, the Group consolidated from the associated company a profit of 0.8 (9M 2013: 1.2) million euros.
The consolidated net profit of the reporting quarter was 3.2 (Q3 2013: 2.4) million euros, of which the share of the owners of the Company was 3.1 (Q3 2013: 2.4) million euros. EPS in the Q3 was 0.18 (Q3 2013: 0.14) euros.
Overall, the consolidated net profit of the 9M 2014 was 9.5 million euros, being 2 times higher compared to the previous period. The share of the owners of the Company was 9.5 million euros. EPS in 9 months was 0.54 (9M 2013: 0.28) euros.
Andres Allikmäe
Managing director/ CEO
Tel +372 674 7400
For more information: Internal report 1-9/2014
| AS HARJU ELEKTER | ||||
| BALANCE SHEET, 30.09.2014 | ||||
| Consolidated, unaudited | ||||
| Group | ||||
| EUR’000 | ||||
| ASSETS | 30.09.14 | 31.12.13 | ||
| Cash and cash equivalents | 9 135 | 4 102 | ||
| Available-for-sale financial assets | 30 | 0 | ||
| Trade receivables and other receivables | 8 184 | 5 699 | ||
| Prepayments | 225 | 256 | ||
| Prepaid income tax | 9 | 41 | ||
| Inventories | 9 713 | 5 801 | ||
| TOTAL CURRENT ASSETS | 27 296 | 15 899 | ||
| Deferred income tax asset | 6 | 7 | ||
| Investments in associates | 0 | 3 598 | ||
| Other long-term financial investments | 17 548 | 31 339 | ||
| Investment property | 11 464 | 11 663 | ||
| Property, plant and equipment | 8 043 | 8 129 | ||
| Intangible assets | 5 364 | 436 | ||
| Total non-current assets | 42 425 | 55 172 | ||
| TOTAL ASSETS | 69 721 | 71 071 | ||
| LIABILITIES AND OWNERS’ EQUITY | ||||
| Interest-bearing loans and borrowings | 412 | 654 | ||
| Trade payables and other payables | 7 035 | 4 437 | ||
| Tax liabilities | 1 335 | 969 | ||
| Income tax liabilities | 221 | 15 | ||
| Short-term provision | 23 | 36 | ||
| TOTAL CURRENT LIABILITIES | 9 026 | 6 111 | ||
| NON-CURRENT LIABILITIES | 2 724 | 1 141 | ||
| TOTAL LIABILITIES | 11 750 | 7 252 | ||
| Share capital | 12 180 | 12 180 | ||
| Share premium | 240 | 240 | ||
| Restricted reserves | 17 793 | 31 424 | ||
| Retained earnings | 26 412 | 18 635 | ||
| TOTAL OWNERS’ EQUITY | 56 625 | 62 479 | ||
| Non-controlling interests | 1 346 | 1 340 | ||
| TOTAL EQUITY | 57 971 | 63 819 | ||
| TOT.LIABILIT.AND OWNERS’ EQUITY | 69 721 | 71 071 | ||
| INCOME STATEMENT, 1-9/2014 | ||||
| Consolidated,unaudited | ||||
| EUR’000 | ||||
| GROUP | Q3 2014 | Q3 2013 | M9 2014 | M9 2013 |
| NET SALES | 15 687 | 11 551 | 36 440 | 36 000 |
| Cost of goods sold | -12 445 | -9 289 | -29 582 | -29 673 |
| Gross profit | 3 242 | 2 262 | 6 858 | 6 327 |
| Marketing expenses | -680 | -586 | -1 976 | -1 890 |
| Administrative expenses | -966 | -913 | -2 865 | -2 897 |
| Other revenue | -20 | 13 | 16 | 32 |
| Other expenses | -49 | -13 | -88 | -41 |
| Operating profit | 1 527 | 763 | 1 945 | 1 531 |
| Finance income | 79 | 1 228 | 5 627 | 2 645 |
| Finance costs | -9 | -7 | -25 | -30 |
| Income from subsidiaries | 1 787 | 467 | 2 602 | 1 150 |
| Profit from normal operations | 3 384 | 2 451 | 10 149 | 5 296 |
| Corporate Income tax | -184 | -44 | -624 | -420 |
| Profit after taxes, incl | 3 200 | 2 407 | 9 525 | 4 876 |
| Net profit for the year | 3 102 | 2 432 | 9 463 | 4 835 |
| Non-controlling interest | 98 | -25 | 62 | 41 |
| Basic earnings per share (EUR) | 0,18 | 0,14 | 0,54 | 0,28 |
| Diluted earnings per share (EUR) | 0,18 | 0,14 | 0,54 | 0,28 |
