DETECTION TECHNOLOGY PLC FINANCIAL STATEMENTS REVI
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Detection Technology Plc Company Announcement 3 February 2017 at 09:00 (EET)
DETECTION TECHNOLOGY PLC FINANCIAL STATEMENTS REVIEW JANUARY-DECEMBER 2016
Detection Technology Q4 2016: The best quarter of a strong year
October-December 2016 highlights
- Net sales increased by 54.7% to EUR 23.5 million (15.2)
- Net sales of Security and Industrial Business Unit (SBU) grew 47.4% to EUR 14.8 million (10.1)
- Net sales of Medical Business Unit (MBU) increased 68.8% to EUR 8.7 million (5.2)
- Operating profit (EBIT) excluding non-recurring items (NRI) was EUR 5.2 million (2.4)
- Operating margin (EBIT-%) excluding NRI was 22.3% of net sales (16.0 %)
- Earnings per share were EUR 0.31 (0.10)
Full-year 2016 highlights
- Net sales increased by 76.5% to EUR 75.5 million (42.8)
- Net sales of SBU grew 109.2% to EUR 55.8 million (26.7)
- Net sales of MBU increased 22.5% to EUR 19.8 million (16.1)
- Operating profit (EBIT) excluding NRI was EUR 14.8 million (4.5)
- Operating margin (EBIT-%) excluding NRI was 19.6% of net sales (10.6%)
- Earnings per share were EUR 0.81 (0.07)
- Capital repayment EUR 0.25 per share* (0.07)
*The Board of Directors' proposal to AGM. (The figures are unaudited. The figures in brackets refer to the corresponding period of the previous year.)
President and CEO, Hannu Martola:
"The year 2016 was extraordinary for us in terms of growth and profit improvement, and we finished the fourth quarter and the year with excellent sales and profitability. For the full year 2016 net sales grew 77% over the previous year.
The net sales increase has for some time been driven by strong growth in demand of X-ray imaging equipment in the security segment, but we have also managed to grow sales in all other markets. Growth has been exceptionally strong but by quickly increasing our production capacity we have been able to meet the significantly increased demand. We were also successful with our new customer projects and transferring these new products into production.
Particularly positive in the fourth quarter was the growth of our medical business unit. Our research and development projects proceeded as planned, and this can now be seen in net sales growth of the MBU. The split in net sales between our business units is now better balanced, as MBU represented more than one third of our net sales in the fourth quarter. Furthermore, the relative share of net sales in Asia has decreased whereas the share of Americas has increased.
The results in the fourth quarter were excellent and the profitability is at our target level. Our financial position is strong, which enables us to develop the business further in line with our strategy.
Year 2016 was exceptional in terms of growth and profitability. We see more moderate growth in the beginning of 2017. At the moment, there is uncertainty in the markets, and for 2017 we expect increased competition and a slowdown in sales growth. We will, however, continue our efforts in line with our strategy and keep our medium term financial targets unchanged."
Key figures
| (EUR 1,000) | 10-12/2016 | 10-12/2015 | 1-12/2016 | 1-12/2015 |
| Net sales | 23,527 | 15,212 | 75,509 | 42,782 |
| Net sales growth, % | 54.7% | 56.4% | 76.5% | 29.2% |
| Operating result (EBIT) excl. NRI | 5,237 | 2,433 | 14,808 | 4,534 |
| Operating result (EBIT) excl. NRI, % | 22.3% | 16.0% | 19.6% | 10.6% |
| Non-recurring items (NRI) | 0 | 688 | 0 | 1,098 |
| Operating profit | 5,237 | 1,741 | 14,808 | 3,437 |
| Operating margin, % | 22.3% | 11.4% | 19.6% | 8.0% |
| R&D costs | 2,259 | 1,357 | 6,071 | 5,696 |
| R&D costs, % of net sales | 9.6% | 8.9% | 8.0% | 13.3% |
| Cash flow from operating activities | 4,988 | 5,355 | 5,412 | 2,622 |
| Net interest bearing debt at end of period | -8,337 | -5,444 | -8,337 | -5,444 |
| Capital expenditure | 372 | 3,450 | 1,612 | 4,770 |
| Gearing, % | -27.0% | -25.8% | -27.0% | -25.8% |
| Earnings per share, EUR | 0.31* | 0.10 | 0.81* | 0.07 |
| Earnings per share diluted, EUR | 0.33** | 0.10 | 0.84** | 0.07 |
| Number of shares at the end of the period | 13,425,775 | 12,950,975 | 13,425,775 | 12,950,975 |
(* Used for the entire review period increased number of shares (13,425,775) due to the share incentive programs. ** Used for the entire review period number of shares (12,950,975) before the effect of the share incentive programs.)
Outlook for 2017
Detection Technology continues to develop and commercialize new products in line with its strategy. In 2017, the company expects its R&D expenses to increase somewhat. The company expects more moderate growth in the beginning of 2017, but there is uncertainty in the markets. After a strong period of growth, the company expects tightening competition and slowing net sales growth in 2017.
Detection Technology's medium term outlook remains unchanged. Detection Technology aims to increase sales by at least 15 per cent per annum and to achieve an operating margin at or above 15 per cent during the medium term.
This release is a summary of Detection Technology's financial statements review January-December 2016. The complete report is attached to this release as a pdf-file and can also be downloaded from the company's website.
Detection Technology Plc Board of Directors
For more information: President and CEO Hannu Martola will be available for interviews and further information on the release date at 9:00-11:00 (EET).
Hannu Martola, President and CEO +358 500 449 475 hannu.martola@deetee.com
Nordea is the company's Certified Advisor under First North rules.
Detection Technology Plc Detection Technology is a global provider of X-ray imaging subsystems, components and services for medical, security and industrial applications. The company's net sales grew 77% to EUR 76 million in 2016. The company has around 200 customers in 40 countries. Detection Technology employs over 400 people in Finland, China and the US. The company's shares are listed at the Nasdaq First North Finland under the ticker symbol DETEC.
DISTRIBUTION: NASDAQ OMX Helsinki Key media www.deetee.com
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