Published: 2014-11-05 10:17:35 CET
Harju Elekter
Quarterly report

Financial results, 1-9/2014

Estonia, 2014-11-05 10:17 CET --  

In Q3, the Group's revenue and earnings increased comparing to the previous quarter as well as to the comparable period.

In July 2014, Group’s subsidiary Satmatic Oy purchased all shares of Finland’s largest pre-fabricated substation producer Finnkumu Oy, whose Q3 financial statements comprises Group’s Q3 and 1-9/2014 interim report since 1 July 2014. In July 2014, Group sold its 34% holding in AS Draka Keila Cables to the core investor Prysmian Group. Affiliated company’s profit is consolidated by the equity method till 30.6.2014.  Both of these events have an impact on both the Group's accounting quarter as well as 9-months consolidated financial results.

  change July-September change January-September Year
(thousand euros) % 2014 2013 % 2014 2013 2013
Revenue 35.8 15,687 11,551 1.2 36,440 36,000 48,288
Gross profit 43.4 3,242 2,262 8.4 6,858 6,327 8,458
EBITDA 67.8 1,907 1,136 16.7 3,084 2,643 3,269
EBIT 100.1 1,527 763 27.1 1,945 1,531 1,743
Profit for the period 33.0 3,200 2,407 95.3 9,525 4,876 5,173
Incl.attributed to Owners of the Company 27.5 3,102 2,432 95.7 9,463 4,835 5,162

Revenue increased in the reporting quarter compared to the previous quarter by 35.8% and reached 15.7 million euros. Because 50% of the growth came from Finnkumu Oy, the comparable increase in Q3 sales volumes was 10.9%. Consolidated sales revenue for the nine month period reached 36.4 million euros, having increased 1.2% in relation to the comparable period. 70% of the Group's products and services sold outside Estonia.

90% of sales revenue was earned from the Production segment, and Real Estate together with Unallocated Activities contributed 10% of the consolidated sales volume. The Manufacturing segment is engaged in the manufacturing and sales of electricity distribution and control equipment and in related activities. The revenue from the sales of electrical equipment comprised 92.7% of the sales volume for Manufacturing and 83.7% of the consolidated revenue.

In the reporting quarter, the number of employees in the Group was an average of 14 more than in the comparable period. The Group companies have recruited new employees, and in Q3 additional temporary staff is traditionally used. Compared to the beginning of the year, the number of employees in the Group has increased by 22, with 18 added to the Group as a result of the acquisition of Finnkumu Oy in Q3. Labour costs increased in 9-months period by 4.7% to 8.8 million euros. The rate of labour costs to revenue formed 24.2% (9M 2013: 23.4%). In the Q3, employee wages and salaries totalled 2,361 (Q3 2013: 1,985) thousand euros and during the 9-months period 6,692 (9M 2013: 6,398) thousand euros. The average wages per employee per month amounted to 1,647 (9M 2013: 1,542) euros.

Cost of sales increased 34% in the reporting quarter and decreased 0.3% in 9-months period, at a rate slightly below the sales revenue by 1.8 percentage points in reporting quarter and by 1.5 percentage point in 9-months. Overall, the growth rate of operating expenses lagged behind that of sales revenue, having increased in the reporting quarter by 30.6%, to 14.1 million euros, but having decreased in the 9-month period by 0.1%, to 34.4 million euros.

Accordingly, the Group’s operating profit in the reporting quarter was 1.5 (Q3 2013: 0.8) million euros and EBITDA 1.9 (Q3 2013: 1.1) million euros.  Return of sales for the accounting quarter was 9.7% (Q3 2013: 6.6%) and return of sales before depreciation 12.2% being 2.4 per cent point better compering to the same period a year before. During 9-months period, EBITDA as well EBIT increased both by 0.4 million euros to 3.1 million and to 1.9 million euros, respectively.

PKC Group Oyj paid dividends to the shareholders 0.70 euros per share. Dividend income from the shares was 907 (2013: 948) thousand euros. In the second quarter, also 200,000 shares of PKC Group Oyj were sold and the financial income from selling the shares was 4.6 (9M 2013:1.7) million euros. The profit from financial investment totalled 5.5 million euros in the 9-months period; in the comparable period it was 2.6 million euros. During the 9 months, finance income amounted to 5.6 (9M 2013: 2.6) million euros.

In the reporting quarter, the Group sold their 34% holding in AS Draka Keila Cables and the financial income from selling the shares was 1.8 million euros. During the reporting period, the Group consolidated from the associated company a profit of 0.8 (9M 2013: 1.2) million euros.

The consolidated net profit of the reporting quarter was 3.2 (Q3 2013: 2.4) million euros, of which the share of the owners of the Company was 3.1 (Q3 2013: 2.4) million euros. EPS in the Q3 was 0.18 (Q3 2013: 0.14) euros.  

Overall, the consolidated net profit of the 9M 2014 was 9.5 million euros, being 2 times higher compared to the previous period.  The share of the owners of the Company was 9.5 million euros. EPS in 9 months was 0.54 (9M 2013: 0.28) euros.

Andres Allikmäe
Managing director/ CEO
Tel +372 674 7400

For more information: Interim report 1-9/2014

 

AS HARJU ELEKTER        
BALANCE SHEET, 30.09.2014        
Consolidated, unaudited        
         
Group        
EUR'000        
ASSETS                                                   30.09.14 31.12.13    
Cash and cash equivalents 9 135 4 102    
Available-for-sale financial assets 30 0    
Trade receivables and other receivables 8 184 5 699    
Prepayments 225 256    
Prepaid income tax 9 41    
Inventories 9 713 5 801    
TOTAL CURRENT ASSETS                     27 296 15 899    
Deferred income tax asset 6 7    
Investments in associates  0 3 598    
Other long-term financial investments 17 548 31 339    
Investment property 11 464 11 663    
Property, plant and equipment 8 043 8 129    
Intangible assets 5 364 436    
Total non-current assets 42 425 55 172    
TOTAL ASSETS                              69 721 71 071    
LIABILITIES AND OWNERS' EQUITY                 
Interest-bearing loans and borrowings 412 654    
Trade payables and other payables 7 035 4 437    
Tax liabilities   1 335 969    
Income tax liabilities 221 15    
Short-term provision 23 36    
TOTAL CURRENT LIABILITIES                 9 026 6 111    
NON-CURRENT LIABILITIES             2 724 1 141    
TOTAL LIABILITIES                         11 750 7 252    
Share capital                             12 180 12 180    
Share premium 240 240    
Restricted reserves                       17 793 31 424    
Retained earnings                         26 412 18 635    
TOTAL OWNERS' EQUITY                       56 625 62 479    
Non-controlling interests 1 346 1 340    
TOTAL EQUITY                       57 971 63 819    
TOT.LIABILIT.AND OWNERS' EQUITY      69 721 71 071    
         
         
INCOME STATEMENT,  1-9/2014        
Consolidated,unaudited        
         
EUR’000        
GROUP Q3 2014 Q3 2013 M9 2014 M9 2013
         
NET SALES 15 687 11 551 36 440 36 000
Cost of goods sold -12 445 -9 289 -29 582 -29 673
Gross profit 3 242 2 262 6 858 6 327
Marketing expenses -680 -586 -1 976 -1 890
Administrative expenses -966 -913 -2 865 -2 897
Other revenue -20 13 16 32
Other expenses -49 -13 -88 -41
Operating profit 1 527 763 1 945 1 531
Finance income 79 1 228 5 627 2 645
Finance costs -9 -7 -25 -30
Income from subsidiaries 1 787 467 2 602 1 150
Profit from normal operations 3 384 2 451 10 149 5 296
Corporate Income tax -184 -44 -624 -420
Profit after taxes, incl 3 200 2 407 9 525 4 876
Net profit for the year 3 102 2 432 9 463 4 835
Non-controlling interest 98 -25 62 41
Basic earnings per share  (EUR) 0,18 0,14 0,54 0,28
Diluted earnings per share  (EUR) 0,18 0,14 0,54 0,28

 

 


HE_Q32014_eng.pdf