MARTELA CORPORATION INTERIM REPORT 1 JANUARY – 3
Post# of 301275
The January-March 2017 revenue and operating result declined from the comparison period. Despite the decline in revenue the change in profitability is into better direction and the completed savings programme effects. Decline in revenue and operating result was due to the timing variations of projects, discontinuation of own sales operations in Poland and Russia and somewhat due to operating challenges related to the implementation of IT system reforms.
January-March 2017
- Revenue EUR 24,8 million (27,8), change -10,8 %
- Operating result declined and was EUR -0,6 million (-0,1)
- Operating result per revenue was -2,5 % (-0,5 %)
- Result for the period declined and was EUR -0,6 million (-0,3)
- Earnings per share amounted to EUR -0,16 (-0,07)
Outlook for 2017 (unchanged)
The Martela Group anticipates that its 2017 revenue and operating result will remain on the 2016 level. Due to normal seasonal variations, the Group’s operating result accumulates mainly during the second half of the year.
Key Figures, EUR million
| 2017 | 2016 | Change | 2016 | |
| 1-3 | 1-3 | % | 1-12 | |
| Revenue | 24,8 | 27,8 | -10,8 | 129,1 |
| Operating result | -0,6 | -0,1 | -329,8 | 6,2 |
| Operating result % | -2,5 | -0,5 | 4,8 | |
| Result before taxes | -0,7 | -0,3 | 5,6 | |
| Result for the period | -0,6 | -0,3 | -112,8 | 3,3 |
| Earnings/share, eur | -0,16 | -0,07 | 0,81 | |
| Return on investment % | -6,7 | -1,7 | 18,2 | |
| Return on equity % | -10.6 | -5,5 | 13,9 | |
| Equity ratio % | 48.4 | 42,8 | 45,3 | |
| Gearing % | -5.8 | 3,9 | -18,9 |
Matti Rantaniemi, CEO:
“The January-March 2017 revenue and operating result declined from the comparison period. Despite the decline in revenue the change in profitability is into better direction and the completed savings programme effects. Decline in revenue and operating result was due to the timing variations of projects, discontinuation of own sales operations in Poland and Russia and somewhat due to operating challenges related to the implementation of IT system reforms.
Revenue for January - March was EUR 24,8 million and declined 10,8 % from the previous year (27,8). Operating result for January - March was EUR -0,6 million (-0,1). Cash flow from operating activities in January – March was EUR -0,8 million (3,9).
Revenue was close to the same level than in the comparison period in Finland, grew in Norway, declined in Sweden and in group Other countries. Revenue from the comprehensive Martela Lifecycle – model has developed well towards the strategic targets of the year 2018.
The year 2017 will largely be a continuation of 2016. We focus on improving profitability, implementing the Martela Lifecycle strategy, deployment and utilization of the New Business Platform (IT reforms), developing Martela’s offering as well as improving operations and improving job satisfaction among our employees.
The New Business Platform is extensively implemented in the near months and it will provide us with an agile foundation for developing our business as a comprehensive service in accordance with the Martela Lifecycle strategy.”
Market
No material changes took place in the market during the first quarter. The demand for Martela’s products and services is fundamentally affected by the general economic situation and by the extent to which companies and the public sector need to use their space more efficiently and make their workplaces more effective management tools.
Revenue and operating result
January – March 2017 revenue and operating result
Revenue for January - March was EUR 24,8 million and declined 10,8 % from the previous year (27,8). Compared to the comparison period revenue in Finland declined by 1.9 % and in Sweden by 39,4 %. In Norway revenue grew by 74,9 %. In Other countries revenue declined by 50,8 %.
We delivered several comprehensive Martela Lifecycle workplaces in Finland. Changes in revenue in Sweden and Norway were related to timing of projects. The discontinuation of Martela’s own sales operations in Poland and Russia has as expected decreased our revenue in those countries.
I n the first quarter we continued to focus on the implementation and further development of Martela Lifecycle strategy. We added personnel into sales and trained personnel to new operating models aligned with the strategy.
Despite the decline in revenue the change in profitability is into better direction and the completed savings programme effects. T he deployment of IT reforms caused expenses slightly more than anticipated.
Operating result for January – March was EUR -0,6 million (-0,1). Result before taxes for January – March was EUR -0,7 million (-0,3) and result for the period was EUR -0,6 million (-0,3), change -112,8 %.
INFORMATION EVENT
An event for analysts, portfolio managers and media will be held on Friday 28 th April 2017 from 11:30 to 12:30 at Martela house in address Takkatie 1, Helsinki. The result will be presented by CEO Matti Rantaniemi.
Martela Corporation Board of Directors
Matti Rantaniemi CEO
Further information CEO Matti Rantaniemi, tel +358 50 465 8194 CFO Riitta Järnstedt, tel +358 40 508 4993
Distribution NASDAQ OMX Helsinki Main news media www.martela.com
Our strategic direction is defined by our mission “Better working” and our vision “People-centric workplaces”. Martela provides people centric workplaces where the users and their wellbeing are in the core. We will focus on the Nordic countries, as the Nordic countries are forerunner in hybrid working environments with common open work culture background and needs.
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