Harju Elekter Group financial results, 1-12/2021

23.02.2022 Market Announcements Reports

Commentary from the Management

Harju Elekter’s orders and sales volumes, which started to increase in the second half of the year, continued to grow strongly in the fourth quarter. Sales volumes in the last quarter increased by more than 7 million euros, or by a fifth, year-on-year, helping to exceed both the revenue of 2020 and the 150-million-euro mark. Revenue of 152 (2020: 147) million euros exceeds the turnover record achieved by the Group last year.

Despite the growth of volumes, the year as a whole continues to be characterised by shortages of raw materials and components, record prices and low availability which, in turn, led to constant rescheduling in production and delays in customer orders. Although the sheet metal shortage had largely eased by the fourth quarter, the fall in raw material prices could not yet be felt and, combined with the readjustments in production mentioned above, it was not possible to achieve satisfactory profitability.

The objective for 2022 is to achieve sustainable profitability, which will be possible thanks to the downward trend in raw material prices, improved component availability and strong customer relationships. Effective work by the sales department in price negotiations with customers also provides an opportunity for improvement. Obstacles and risks include the ongoing pandemic situation, tensions between major economies and growing competition for skilled labour which, in turn, is creating strong wage pressures.

Revenue, Expenses, and Profit

The revenue of the Group was 43.6 (Q4 2020: 35.2) million euros in the fourth quarter, increasing by 23.6% compared to the comparable period. Revenue increased in all areas of business activity, but the main contribution came from the sale of electrical equipment, which was 35.6 (Q4 2020: 30.2) million euros. This was mainly due to the increase in the volume of orders from the framework contracts. Despite serious challenges, Harju Elekter’s revenue for the year grew by 4.2% year-on-year, to 152.8 (2020: 146.6) million euros, exceeding previous record sales volumes. The revenue from electrical works in the shipbuilding sector increased the most, totaling 6.0 (2020: 4.2) million euros. The revenue of electrical equipment increased by 1.5 million to 126.7 million euros in a year comparison.

 EUR’000   Q4 Q4 +/- 12m 12m +/-
    2021 2020 Q/Q 2021 2020 12m/12m
Revenue 43,561 35,243 23.6% 152,757 146,614 4.2%
Gross profit 4,703 5,585 -15.8% 17,880 21,209 -15.7%
EBITDA 1,939 2,400 -19.2% 7,221 10,340 -30.2%
Operating profit (EBIT) 853 1,335 -36.1% 3,202 6,546 -51.1%
Profit for the period 894 1,159 -22.9% 2,610 5,528 -52.8%
Incl. attributable to owners of the parent 888 1,165 -23.8% 2,598 5,563 -53.3%
Earnings per share (EPS) (euros) 0.05 0.07 -23.8% 0.15 0.31 -53.3%

The Group’s core business, Production, accounted for 87.4% of the Group’s revenue in the reporting quarter and in twelve months. The revenue of the production segment increased both by quarter and by year: 7.4 million to 37.7 million euros and by 8.0 million to 133.5 million euros, respectively. The biggest challenges for manufacturing companies came from supply shortages of missing components that were required in projects. A number of large orders were pending, and production cycles had to be reorganised on an ongoing basis.

Sales to the Estonian market remained practically at the same level in the reporting quarter, totalling 6.5 million euros. Revenue increased by 2.5 million to 26.0 million euros in year comparison, accounting for 17.0% (2020: 16.0%) of the Group’s revenue. The growth mainly came from the production and supply of prefabricated substations.

The Group’s revenue in Finland was 17.9 million euros in the reporting quarter (Q4 2020: 13.8). The increase in revenue in the last quarter was affected by the postponement of orders from the beginning of the year to the second half of the year, due to both the cold winter at the beginning of the year and supply difficulties resulting from material shortages. All in all, year-on-year revenue in the Finnish market increased by 2.2 million, to 70.9 million euros. During the reporting year, 46.4% (2020: 46.9%) of the Group’s products and services were sold to the Group’s largest market, Finland.

The revenue earned from the Swedish market increased both in the reporting quarter and yearly comparison, amounting to 10.4 (Q4 2020: 9.1) and 27.6 (2020: 26.5) million euros, respectively. In the second half of the year, the production and supply of substations for new framework contract continued at an accelerated pace. Sweden is the Group’s second largest market, accounting for 18.1% of the Group’s revenue during the year as well as in the previous period. The Group sees market potential in Sweden and is making investments to increase the business activity.

Sales to the Norwegian market continued to recover in the fourth quarter. The Group sold products and services worth 4.2 (Q4 2020: 2.8) million euros to the Norwegian market. In 2021, the Norwegian market generated revenues of 13.2 million euros (2020: 16,7). The decrease in Norwegian revenue was due to record high orders in the reference period, as well as the slow pace of recovery in the maritime industry. The Norwegian market accounted for 8.6% (2020: 11.4%) of the reporting year revenue.


During 2021, the Group invested a total of 7.7 (2020: 8.1) million euros in non-current assets, incl 1.3 (2020: 3.1) million euros in investment properties, 5.7 (2020: 4.6) million euros in property, plant, and equipment and 0.7 (2020: 0.3) million euros in intangible assets. The Group directed the majority of the investments during the reporting period, i.e. 2.5 million euros, to the expansion of the Lithuanian plant, which was completed in the summer. The total cost of the investment was 5.5 million euros. In addition, preparations for the construction of the production and storage complex in the Allika Industrial Park, Laohotell III, were launched and investments were made in production technology and in solar power plants. In connection with the expansion of the production of the Elektra electric vehicle chargers in Finland, an additional production area of 1,140 m2 was acquired in the reporting quarter in Ulvila, near the current production facilities. As of the reporting date, the total value of the Group’s non-current financial investments was 25.2 (31.12.20: 11.9) million euros. The net gain on the revaluation of financial assets in the reporting quarter was 3.9 million euros and in the reporting year 12.3 million euros. During 2021 one million euros was received from the partial sale of securities, of which the realized profit was 0.3 million euros.


The company’s share price on the last trading day of the reporting quarter on the Nasdaq Tallinn Stock Exchange closed at 7.44 euros. As at 31 December 2021, AS Harju Elekter had 9,387 shareholders. The number of shareholders increased during the reporting quarter by 448 members.

Dividend Proposal

In coordination with the Supervisory Board, the Group’s Management Board will propose to pay dividends to the shareholders 0.14 euros per share, totalling 2.5 million euros and representing 97% of consolidated net profit in 2021.



EUR’000 31

December 2021


December 2020

Current assets
Cash and cash equivalents 574 2,843
Trade and other receivables 33,689 27,226
Prepayments 1,844 820
Inventories 27,437 18,856
Total current assets 63,544 49,745
Non-current assets
Deferred income tax assets 690 514
Non-current financial investments 25,222 11,918
Investment properties 23,903 23,605
Property, plant, and equipment 26,654 22,494
Intangible assets 7,544 7,199
Total non-current assets 84,013 65,730
TOTAL ASSETS 147,557 115,475
Borrowings 16,912 12,056
Prepayments from customers 4,659 4,182
Trade and other payables 24,490 15,837
Tax liabilities 3,156 2,871
Current provisions 35 34
Total current liabilities 49,252 34,980
Borrowings 11,426 7,032
Other non-current liabilities 33 66
Total non-current liabilities 11,459 7,098
Share capital 11,352 11,176
Share premium 1,601 804
Reserves 18,716 6,709
Retained earnings 55,315 54,858
Total equity attributable to the owners of the parent company 86,984 73,547
Non-controlling interests -138 -150
Total equity 86,846 73,397




EUR’000 Q4 Q4 12m 12m
2021 2020 2021 2020
Revenue 43,561 35,243 152,757 146,614
Cost of sales -38,858 -29,658 -134,877 -125,405
Gross profit 4,703 5,585 17,880 21,209
Distribution costs -1,260 -2,208 -5,259 -5,847
Administrative expenses -2,655 -2,140 -9,703 -9,259
Other income 114 213 513 707
Other expenses -49 -115 -229 -264
Operating profit 853 1,335 3,202 6,546
Finance income 57 21 129 137
Finance costs -101 -110 -353 -379
Profit before tax 809 1,246 2,978 6,304
Income tax 85 -87 -368 -776
Profit for the period 894 1,159 2,610 5,528
Profit attributable to:
    Owners of the parent company 888 1,165 2,598 5,563
    Non-controlling interests 6 -6 12 -35
Earnings per share
   Basic earnings per share (EUR) 0.05 0.07 0.15 0.31
   Diluted earnings per share (EUR) 0.05 0.07 0.14 0.31


EUR’000 Q4 Q4 12m 12m
2021 2020 2021 2020
Profit for the period 894 1,159 2,610 5,528
Other comprehensive income
Items that may be reclassified to profit or loss
   Impact of exchange rate changes of a foreign subsidi­aries -44 128 -57 112
Items that will not be reclassified to profit or loss
   Gain on sales of financial assets 0 0 265 80
   Net gain/loss (-) on revaluation of financial assets 3,900 3,669 12,269 2,922
Total comprehensive income for the period 3,856 3,797 12,477 3,114
Other comprehensive income 4,750 4,956 15,087 8,642
Total comprehensive income attributable to:
   Owners of the Company 4,744 4,962 15,075 8,677
   Non-controlling interests 6 -6 12 -35

Harju Elekter Interim Report Q4 2021

Tiit Atso
Chairman of the Management Board
+372 674 7400