November 1, 2014–October 31, 2015 (12 months)
- Net sales increased by 22% and stood at MEUR 148.2 (MEUR 121.1).
- EBIT decreased by MEUR 0.7 to MEUR 7.3 (MEUR 8.1).
- The profit for the financial period was MEUR 13.5 (MEUR 8.2).
- Operating cash flow deteriorated and was MEUR 8.0 (MEUR 11.4).
Proposal for the distribution of profits:
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.05 per share be paid for the past financial period.
OUTLOOK FOR THE 2016 FINANCIAL PERIOD
In the corporate acquisitions market, Panostaja’s activity in the target size category has remained as before. The need for SMEs to utilize ownership arrangements and growth opportunities persists, and there are still a sufficient number of corporate acquisition opportunities in the markets for those who take an active approach. Panostaja’s intention is to implement its strategy during the financial period by investing in 1–2 new segments and making corporate acquisitions in the current segments of choice. Divestment possibilities will also be assessed actively as part of the segments’ owner strategies.
Economic prospects in the business areas of the current segments continue to be marred by the uncertainty and poor predictability of the general economic development. The prospects in Panostaja’s segments vary from positive to weak. Despite the uncertain market situation, the growth and development measures implemented support the development of the segments.
The Group’s EBIT is expected to improve substantially over the course of the 2016 financial period.
CEO Juha Sarsama: A year of significant corporate restructurings
We conducted significant corporate restructurings during the past financial period. We established a new Oral Health Care segment by acquiring a majority shareholding in Megaklinikka Oy, a company that utilizes a new kind of service concept. We also significantly expanded our Digital Printing Services segment when Multiprint Oy and Grano Oy merged to form the leading player in the field and a pioneer whose annual net sales are slated to reach approximately MEUR 90. We also divested one of our largest segments by selling Flexim Security Oy to Assa Abloy Oy, recording MEUR 8.6 in sales profit for the transaction. During our eight-year ownership, Flexim Security quadrupled its net sales and became one of the leading experts in its field as a developer of worry-free and safe access control.
Our profit development was moderate in the challenging market climate. The corporate acquisitions we conducted increased our net sales by 22% over the previous year. However, due to the continuously challenging market situation and costs related to the Multiprint merger, our EBIT stood at MEUR 7.3, which was slightly lower than the previous year. There were still substantial differences between segments in terms of profit development.
The economic situation in Finland remained uncertain. The Syrian crisis, Russia, and the decline of the Chinese economy are causing widespread and prolonged uncertainty in European economic development. The development in the price of oil is causing investments to dwindle in the off-shore sector. The general economic situation and atmosphere are challenging, which is reflected in almost all the Group’s business segments.
Activity in the corporate acquisitions market has remained as before. The markets still provide opportunities for both new acquisitions and select divestments. Our aim is to be an active player on the market for target companies that are in accordance with our strategy.
August 1, 2015–October 31, 2015 (Q4)
- Net sales increased by 27% and stood at MEUR 44.1 (MEUR 34.8). The impact of the corporate acquisitions on the MEUR 9.3 growth in net sales for the third quarter stood at MEUR 10.0. Net sales increased in three of the eight segments.
- EBIT decreased by MEUR 0.3 to MEUR 3.1 (MEUR 3.5). The market situation remained challenging in almost all segments, as a result of which profitability did not reach the level of the reference year for all areas. Four segments out of eight exceeded the EBIT for the reference period.
- Profit before taxes MEUR 1.4 (MEUR 2.8)
- The profit for the review period was MEUR 13.5 (MEUR 2.4).
- Earnings per share (undiluted) were 17.6 cents (1.6 cents)
- Operating cash flow deteriorated and was MEUR -1.6 (MEUR 6.2).
- The sale of Flexim Security Oy to Assa Abloy Oy was completed during the review period. The Group recorded a sales profit of MEUR 8.6 before taxes for the fourth quarter.
November 1, 2014–October 31, 2015 (12 months)
- Net sales increased by 22% and stood at MEUR 148.2 (MEUR 121.1). The impact of the corporate acquisitions on the MEUR 27.1 growth in net sales stood at MEUR 28.4. Net sales increased in three of the eight segments.
- EBIT declined and was MEUR 7.3 (MEUR 8.1). EBIT in the review period was encumbered by the difference of MEUR -0.5 between the values of Kotisun Oy’s additional purchase price and the value on the balance sheet date, which has been recognized in the company’s other costs, as well as the MEUR 1.7 cost caused by the Multiprint arrangement. One segment out of eight exceeded the EBIT for the reference period.
- Profit before taxes was MEUR 3.4 (MEUR 5.6)
- The profit for the review period, including the sales profit from Flexim Security Oy, was MEUR 13.5 (MEUR 8.2). The reference period includes the MEUR 5.5 sales profit for Vindea and the discontinued operations of Takoma.
- Earnings per share (undiluted) were 14.1 cents (9.4 cents)
- Operating cash flow deteriorated and was MEUR 8.0 (MEUR 11.4).
PRESS CONFERENCE
Panostaja will hold a press conference for analysts, investors and the press on the same day on December 11, 2015 from 10:00am to 11:00am at Hotel Scandic Simonkenttä, Bulsa-Freda 1-2, Simonkatu 9, Helsinki.
The interim report, presentations and other investor information are available at: www.panostaja.fi.
Panostaja Oyj
Juha Sarsama
CEO
Further information:
CEO Juha Sarsama, Panostaja Oyj, +358 (0)40 774 2099
Distribution: NASDAQ OMX Helsinki, key media, www.panostaja.fi .
Panostaja is an investment company developing Finnish SMEs in the role of an active majority shareholder. The company aims to be the most sought-after partner for business owners selling their companies as well as for the best managers and investors. Together with its partners, Panostaja increases the Group's shareholder value and creates Finnish success stories.
Panostaja has eight segments engaging in business operations. Grano Oy (Digital Printing Services) forms Finland’s largest company offering digital printing services and publication and production services. Heatmasters Group (Heat Treatment) offers thermal treatment services for metals in Finland and internationally, and produces, develops and markets heat treatment technology. KL-Varaosat (Spare Parts for Motor Vehicles) is an importer, wholesale dealer and retailer of original spare parts and supplies for Mercedes Benz, BMW and Volvo cars. Megaklinikka Oy (Oral Health Care) is a company providing oral health care services. The company is a dental clinic offering a completely new kind of service concept. Suomen Helakeskus Oy (Fittings) is a major wholesale dealer concentrating on construction and furniture fittings. Selog Oy (Ceiling Materials) is a specialty supplier and wholesaler of ceiling materials. Takoma Oyj (Takoma) is a listed machine shop group. KotiSun Oy (Building Technology Renovation) is Finland’s leading company in service water and heating network building technology renovations for detached houses.
