ROBIT PLC COMPANY RELEASE 12 MAY 2017 AT 12.20 P.M.
ROBIT PLC'S IFRS FINANCIAL STATEMENTS FOR THE YEAR 2016 PUBLISHED
Robit Plc has previously announced that it will start applying IFRS in its financial reporting as of financial year 2017. The company publishes the audited IFRS financial statements for the financial year 2016, which are available on the Robit website at http://www.robit.fi/investors/financial-information/ .
Future Prospects and Profit Forecast
In connection with the approval of the IFRS financial statements, the company has confirmed the prospects and the profit forecast for the year 2017. The net sales of the company are expected to continue to grow. The company believes that the weak market environment is starting to pick up after a flat period of several years and the company aims to take advantage of that expected positive market change with the platform of the company's 21 sales and service points together with the six manufacturing plants. The company believes that the new supplemented offering gives good opportunities to increase the market share in the drilling consumables business segment.
Robit has started applying IFRS in its financial reporting in 2017. Calculated on a basis of the financial statements for the financial year ended on 31 December 2016 prepared in accordance with IFRS, the company's EBITA as percentage of net sales (without items affecting comparability) was 11.7 %. The management of the company estimates that the company's EBITA as percentage of net sales will be maintained at the same level, i.e. at the level of the year 2016, provided that the market demand stays at the current level and there are no other market disruptions. [1]
IFRS financial statements
The following tables present a summary of the company's income statement, balance sheet, and key figures for the financial years ended on 31 December 2016, 31 December 2015 and 31 December 2014. The information presented below is based on the company's audited consolidated financial statements for the financial years ended on 31 December 2016, 31 December 2015 and 31 December 2014. In addition, the summary of the company's income statement and balance sheet for the first and second half of the financial year 2016 are presented below.
In addition to the half-yearly reports and financial statements release, the company will continue reporting its net sales for the first and third quarter. The net sales for the three-month period ended on 31 March 2017 were EUR 20,049 thousand.
| CONSOLIDATED INCOME STATEMENT | 1.1.-31.12. | |||
| EUR 1,000 | 2016 (IFRS) | 2015 (IFRS) | 2015 (FAS) | 2014 (FAS) |
| (audited) | (unaudited) | (audited) | (unaudited) | |
| Net sales | 64,050 | 45,573 | 45,588 | 38,272 |
| Changes in inventories of finished goods and work in progress | -67 | 1,138 | 1,103 | 2,468 |
| Work performed by the Group and capitalized | 201 | 232 | 232 | 94 |
| Other operating income | 241 | 163 | 169 | 175 |
| Materials and services | -32,651 | -27,789 | -27,789 | -24,746 |
| Employee benefit expense | -11,113 | -7,643 | -7,339 | -5,753 |
| Depreciation, amortization and impairment | -3,233 | -1,145 | -1,676 | -1,005 |
| Other operating expenses | -13,167 | -7,770 | -6,899 | -5,745 |
| Operating profit | 4,262 | 2,758 | 3,389 | 3,761 |
| Finance income | 3,316 | 494 | 444 | 438 |
| Finance cost | -2,411 | -853 | -851 | -522 |
| Finance income and costs net | 906 | -359 | -406 | -84 |
| Profit before income tax | 5,168 | 2,399 | 2,983 | 3,677 |
| Income taxes | -1,128 | -695 | -739 1 | -769 2 |
| Profit for the year | 4,040 | 1,704 | 2,244 | 2,925 |
| Attributable to: | ||||
| Owners of the parent | 4,040 | 1,704 | - | - |
| Other comprehensive income | ||||
| Items that may be reclassified to profit or loss in subsequent periods: | ||||
| Translation differences | 43 | 101 | - | - |
| Other comprehensive income, net of tax | 43 | 101 | ||
| Total comprehensive income | 4,083 | 1,804 | 2,244 | 2,925 |
| Attributable to: | ||||
| Owners of the parent | 4,083 | 1,804 | - | - |
| Earnings per share attributable to the owners of the parent during the year: | 64,050 | 45,573 | 45,588 | 38,272 |
| Basic and diluted earnings per share | -67 | 1,138 | 1,103 | 2,468 |
1) Unaudited. The figure includes changes in deferred income taxes (EUR 12 thousand).
2) Unaudited. The figure includes changes in deferred income taxes (EUR 9 thousand).
| CONSOLIDATED BALANCE SHEET | 31.12. | |||
| EUR 1,000 | 2016 | 2015 | 2015 | 2014 |
| (IFRS) (audited) | (IFRS) (unaudited) | (FAS) (audited) | (FAS) (audited) | |
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 25,469 | 88 | 29 | 88 |
| Other intangible assets | 8,333 | 1,297 | 3,691 1 | 654 2 |
| Property, plant and equipment | 16,611 | 7,752 | 7,047 | 4,970 |
| Loan receivables | 720 | 744 | 717 3 | 743 4 |
| Other receivables | 157 | 150 | 241 5 | 245 6 |
| Deferred tax assets | 720 | 339 | - 7 | - 7 |
| Total non-current assets | 52,011 | 10,369 | 11,725 8 | 6,700 9 |
| Current assets | ||||
| Inventories | 30,176 | 11,873 | 11,679 | 11,838 |
| Account and other receivables | 21,248 | 10,431 | 10,557 10 | 7,530 11 |
| Loan receivables | 48 | 26 | 21 | 31 |
| Income tax receivable | - | 10 | 159 12 | 78 12 |
| Cash and cash equivalents | 10,519 | 33,310 | 33,384 13 | 1,589 14 |
| Total current asset | 61,991 | 55,650 | 55,800 15 | 21,066 16 , |
| Total assets | 114,002 | 66,019 | 67,525 | 27,767 |
| EQUITY AND LIABILITIES | ||||
| Equity attributable to owners of the parent | ||||
| Share capital | 705 | 705 | 705 | 705 |
| Share premium | 202 | 202 | 202 | 202 |
| Reserve for invested unrestricted equity | 32,368 | 32,322 | 33,693 | 599 |
| Cumulative translation difference | 144 | 101 | -267 | 15 |
| Retained earnings | 12,597 | 11,526 | 11,348 | 8,530 |
| Profit for the year | 4,040 | 1,704 | 2,244 | 2,925 |
| Total equity | 50,056 | 46,559 | 47,924 | 12,976 |
| Liabilities | ||||
| Non-current liabilities | ||||
| Borrowings | 36,601 | 5,262 | 7,058 | 5,207 |
| Deferred tax liabilities | 2,093 | - | - 17 | - 17 |
| Derivative financial instruments | - | 49 | - | - |
| Employee benefit obligations | 947 | 430 | 430 21 | 349 22 |
| Total non-current liabilities | 39,641 | 5,741 | 7,488 23 | 5,556 24 |
| Current liabilities | ||||
| Borrowings | 10,828 | 6,224 | 4,257 | 3,248 |
| Derivative financial instruments | 38 | - | - | - |
| Advances received | 282 | 132 | 132 | 289 |
| Income tax liabilities | 736 | 103 | 224 18 | 131 18 |
| Account payables and other liabilities | 12,421 | 7,260 | 7,500 19 | 5,567 20 |
| Total current liabilities | 24,305 | 13,720 | 12,113 | 9,235 |
| Total liabilities | 63,946 | 19,460 | 19,601 | 14,791 |
| Total equity and liabilities | 114,002 | 66,019 | 67,525 | 27,767 |
1) The figure consists of the following items disclosed separately under FAS balance sheet: intangible rights (EUR 165 thousand) and other capitalised long-term expenses (EUR 3,527 thousand).
2) The figure consists of the following items disclosed separately under FAS balance sheet: intangible rights (EUR 69 thousand) and other capitalised long-term expenses (EUR 585 thousand).
3) Unaudited. The figure consists of long term receivables disclosed as current assets under FAS balance sheet and including accrued income (EUR 0 thousand) and loan receivables (EUR 717 thousand).
4) Unaudited. The figure consists of long term receivables disclosed as current assets under FAS balance sheet and including accrued income (EUR 5 thousand) and loan receivables (EUR 738 thousand).
5) The figure consists of the following items disclosed separately under FAS balance sheet: other receivables (EUR 238 thousand) and other shares and similar rights of ownership (EUR 3 thousand).
6) The figure consists of the following items disclosed separately under FAS balance sheet: other receivables (EUR 241 thousand) and other shares and similar rights of ownership (EUR 4 thousand).
7) Deferred tax assets is disclosed as short term assets under FAS balance sheet.
8) Unaudited. The figure consists of the following items disclosed separately under FAS balance sheet: Non-current assets total (EUR 11 008 thousand) and long-term receivables (EUR 717 thousand).
9) Unaudited. The figure consists of the following items disclosed separately under FAS balance sheet: Non-current assets total (EUR 5 957 thousand) and long-term receivables (EUR 743 thousand).
10) The figure consists of the following items disclosed separately under FAS balance sheet: trade receivables (EUR 9 219 thousand), receivables from group companies (EUR 0 thousand), other receivables (EUR 809 thousand) and accrued income (EUR 528 thousand).
11) The figure consists of the following items disclosed separately under FAS balance sheet: trade receivables (EUR 6 335 thousand), receivables from group companies (EUR 0 thousand), other receivables (EUR 598 thousand) and accrued income (EUR 597 thousand).
12) Income tax receivable is disclosed as calculated tax claim under FAS balance sheet.
13) The figure consists of the following items disclosed separately under FAS balance sheet: cash in hand and at banks (EUR 33 353 thousand) and funding papers (EUR 31 thousand).
14) The figure consists of the following items disclosed separately under FAS balance sheet: cash in hand and at banks (EUR 1 559 thousand) and funding papers (EUR 30 thousand).
15) Unaudited. The figure consists of the FAS balance sheet item current assets total (EUR 56 517 thousand) less long-term receivables (EUR 717 thousand).
16) Unaudited. The figure consists of the FAS balance sheet item current assets total (EUR 21 809 thousand) less long-term receivables (EUR 743 thousand).
17) Deferred tax liabilities are disclosed as short-term liabilities under FAS balance sheet.
18) Income tax liabilities are disclosed as item calculated tax debt.
19) The figure consists of the following items disclosed separately under FAS balance sheet: accounts payable (EUR 5 609 thousand), payables to group companies (EUR 0 thousand), other liabilities (EUR 574 thousand) and accrued liabilities (EUR 1 318 thousand).
20) The figure consists of the following items disclosed separately under FAS balance sheet: accounts payable (EUR 3 984 thousand), payables to group companies (EUR 22 thousand), other liabilities (EUR 346 thousand) and accrued liabilities (EUR 1 215 thousand).
21) Employee benefit obligations are disclosed as mandatory reserves under FAS balance sheet.
22) Employee benefit obligations are disclosed as mandatory reserves under FAS balance sheet.
23) Unaudited. The figure includes mandatory reserves (EUR 430 thousand) disclosed separately under FAS balance sheet.
24) Unaudited. The figure includes mandatory reserves (EUR 349 thousand) disclosed separately under FAS balance sheet.
Key Figures
The company tracks several indicators to measure the development of its business performance. The following table sets forth key figures of the company for the financial years ended on 31 December 2016, 31 December 2015 and 31 December 2014 as well as for the first and second half of the financial year 2016.
| CONSOLIDATED KEY FIGURES | 1.7.-31.12. | 1.1.-30.6. | 1.1.-31.12. | |||||||||||
| 2016 (IFRS) | 2016 (IFRS) | 2016 (IFRS) | 2015 (IFRS) | 2015 (FAS) | 2014 (FAS) | |||||||||
| (unaudited) | ||||||||||||||
| Net sales, EUR 1,000 | 42,974 | 21,076 | 64,050* | 45,573 | 45,588* | 38,272* | ||||||||
| Net sales growth, per cent | - | - | 40.5 | 19.1 | 19.1 | 12.7 | ||||||||
| Gross profit, EUR 1,000 | 17,405 | 7,747 | 25,152 | 14,683 | 14,683 | 11,337 | ||||||||
| Gross profit, per cent of net sales | 6.6 | 32.7 | 39.3 | 32.2 | 32.2 | 29.6 | ||||||||
| EBITDA, EUR 1,000 | 5,308 | 2,187 | 7,495 | 3,903 | 5,066 | 4,765 | ||||||||
| EBITDA, per cent of net sales | 12.4 | 10.4 | 11.7 | 11.1 | 11.1 | 12.5 | ||||||||
| Adjusted EBITDA, EUR 1,000 | 8,064 | 2,187 | 10,251 | 4,793 | 5,066 | 4,765 | ||||||||
| Adjusted EBITDA, per cent of net sales | 18.8 | 10.4 | 16.0 | 10.5 | 11.1 | 12.5 | ||||||||
| EBITA, EUR 1,000 | 3,213 | 1,508 | 4,721 | 2,758 | 3,448 | 3,819 | ||||||||
| EBITA, per cent of net sales | 7.5 | 7.2 | 7.4 | 6.7 | 7.6 | 10.0 | ||||||||
| Adjusted EBITA, EUR 1,000 | 5,960 | 1,508 | 7,468 | 3,648 | 3,448 | 3,819 | ||||||||
| Adjusted EBITA, per cent of net sales | 13.9 | 7.2 | 11.7 | 8.0 | 7.6 | 10.0 | ||||||||
| Operating profit, EUR 1,000 | 2,754 | 1,508 | 4,262* | 2,758 | 3,389* | 3,761* | ||||||||
| Operating profit, per cent of net sales | 6.4 | 7.2 | 6.7 | 6.1 | 7.4 | 9.8 | ||||||||
| Net income of review period, EUR 1,000 | 2,581 | 1,502 | 4,083* | 1,804 | 2,244* | 2,925* | ||||||||
| Net income of review period, per cent of net sales | 6.0 | 7.1 | 6.4 | 4.0 | 4.9 | 7.6 | ||||||||
| Earnings per share (EPS), EUR | - | - | 0.26* | 0.13 | 0.17 | 0.29 | ||||||||
| Return on equity, per cent | - | - | 9.9 | 7.4 | 7.4 | 25.4 | ||||||||
| Return on capital employed (ROCE), per cent | - | - | 4.7 | 5.3 | 9.5 | 21.2 | ||||||||
| Net interest-bearing debt, EUR 1,000 | 36,910 | 11,042 | 36,910 | -21,824 | -22,070 | 6,866 | ||||||||
| Equity ratio, per cent | 43.9 | 42.5 | 43.9 | 70.5 | 71.1 | 47.4 | ||||||||
| Gearing, per cent | 73.7 | 23.3 | 73.7 | -46.9 | -46.1 | 52.9 | ||||||||
| Gross investments, EUR 1,000 | 24,755 | 33,272 | 58,027 | 3,926 | 7,732 | 1,731 | ||||||||
| Gross investments, per cent of net sales | - | - | 90.6 | 8.6 | 17.0 | 4.5 | ||||||||
| Gross investments, excl. acquisition, EUR 1,000 | - | - | 2,641 | 3,926 | 7,732 | 1,731 | ||||||||
| Research and development costs, EUR 1,000 | 1,062 | 444 | 1,505 | 1,367 | 1,368 | 804 | ||||||||
| Research and development costs, per cent of net sales | 2.5 | 2.1 | 2.3 | 3.0 | 3.0 | 2.1 | ||||||||
| Average number of employees | 239 | 129 | 199 | 124 | 124 | 109 | ||||||||
| Employees at end of period | 263 | 134 | 263 | 134 | 134 | 109 | ||||||||
| *Audited | ||||||||||||||
Business Units
Currently, the company's business is divided into three strategic business units, which are Top Hammer (TH), Down the Hole (DTH) and Digital Services.
The table below indicates the allocation of the company's net sales across the strategic business units. The business units were established in early 2016. The allocation of net sales prior to this has been indicated in relation to the TH product category and the DTH product category.
| IFRS (unaudited) | FAS (unaudited) | |||
| Million euros | 1.1. - 31.12.2016 | 1.1. - 31.12.2015 | 1.1. - 31.12.2015 | 1.1. - 31.12.2014 |
| Top Hammer (TH) | 33.7 | 29.9 | 29.9 | 21.9 |
| Down the Hole (DTH) | 30.4 | 15.7 | 15.7 | 16.3 |
| Digital Services | - | - | - | - |
| Total | 64.1* | 45.6 | 45.6* | 38.3* |
*Audited
The TH and DTH business units were nearly of the same size in terms of net sales: Top Hammer at 33.7 million euros and Down the Hole at 30.4 million euros in 2016. The third business unit, Digital Services, did not yet generate any net sales in 2016, its year of establishment.
Geographic sales areas
In 2016, the percentage of Europe, Africa and the Middle East out of the company's overall net sales amounted to 45.5 per cent. As a result of a corporate acquisition carried out in Australia, the percentage of Asia and Oceania out of the aggregate group net sales amounted to 36.1 per cent. The percentage of Russia and the CIS countries out of the aggregate group net sales amounted to 5.1 per cent. The percentage of the area of North and South America amounted to 13.3 per cent out of the aggregate group net sales.
The table below illustrates the geographic allocation of the company's net sales. As a result of the corporate acquisitions that took place in 2016, the net sales have become more centralised in the area of Asia and Oceania, as well as Europe, Africa and Middle East. It should be noted that DTA's net sales has been recorded in the company's net sales as of 30 June 2016, and Bulroc's net sales as of 5 July 2016.
| IFRS | FAS | |||||||
| Million euros | 2016 | 2015* | 2015* | 2014* | ||||
| North and South America | 8,5 | 13 % | 8,5 | 19 % | 8,5 | 19 % | 5,8 | 15 % |
| Europe, Africa and Middle East | 29,1 | 45 % | 25,0 | 55 % | 25,0 | 55 % | 22,0 | 57% |
| Russia and the CIS countries | 3,3 | 5 % | 3,1 | 7 % | 3,1 | 7 % | 3,2 | 8 % |
| Asia and Oceania | 23,1 | 36 % | 9,0 | 20 % | 9,0 | 20 % | 7,3 | 19 % |
| Total | 64,1 | 45,6 | 45,6 | 38,3 | ||||
* The figures are unaudited, with the exception of the aggregate amount
ROBIT PLC
Board of Directors
Further information
Robit Plc
Harri Sjöholm, Chairman of the Board of Directors
+358 400 622 092
harri.sjöholm@robit.fi
Skandinaviska Enskilda Banken AB (publ) Helsinki Branch acts as the company's certified advisor
Tel. +358 9 616 28 101
Robit is a strongly internationalized growth company selling and servicing global customers in drilling consumables for applications in mining, construction and contracting, tunneling and well drilling. The company's offering is divided into three product and service range: Top Hammer and Down-the-Hole products as well as Digital Services. Robit has 21 own sales and service points as well as active sales networks in 115 countries. The manufacturing units are located in Finland, South Korea, Australia, UK and USA.
Distribution:
Nasdaq Helsinki Ltd
Key media
www.robitgroup.com
Attachment: Robit Plc IFRS Consolidated Financial Statements 2016
[1] The company calculates EBITA profitability key ratio as follows: Operating profit (EBIT) added with the depreciations of customer relationships and brand value recorded on the balance sheet in connection with the acquisitions. Items affecting comparability are defined as material items outside ordinary course of business, such as costs related to the reversion of the current assets during 2016 as well as direct transaction costs related to business acquisitions and the listing.
Attachments:
