Cencorp Corporation Stock Exchange Release 10 May 2011 at 16.45
The condensed financial statements in the English version of the Interim Report published by Cencorp Corporation on 9 May 2011 were incorrectly in Finnish.
Cencorp Corporation Interim Report 9 May 2011 at 14.40
Cencorp Corporation’s Interim Report 1 January–31 March 2011
NET SALES UP, OPERATING PROFIT DOWN
SUMMARY
January–March 2011
- The Face (Telecom) business result and balance sheet were consolidated in all Cencorp’s consolidated figures starting on 1 December 2010.
- Cencorp Group’s net sales increased by 200 percent to EUR 5.7 million (EUR 1.9 million) during the first quarter of the year.
- The order book at the end of March stood at EUR 7.4 million (EUR 1.5 million).
- Operating result was EUR -2.3 million (EUR -0.9 million).
- Result before taxes amounted to EUR -3.0 million (EUR -0.8 million).
- Earnings per share were EUR -0.01 (EUR -0.01).
- The equity ratio at the end of March was 54.1 percent (18.3%).
- In the rights issue that ended in March, 84 percent of the total number of shares offered were subscribed to.
Outlook for 2011 unchanged
- Cencorp expects net sales for 2011 to amount to approximately EUR 35–39 million, provided that no essential change takes place in the current economic landscape.
- The 12-month result from operations is expected to improve from 2010.
GENERAL
The comparison period is the corresponding period of the previous year, unless otherwise is stated. When comparing the figures, it should be noted that the Face (Telecom) figures are included in the year 2011 figures, but in the 2010 figures only as of December 2010. The interim report has been drawn up in compliance with the IAS 34 Interim Financial Reporting standard and in compliance with the same accounting principles as in the financial statements. The interim report has not been audited.
More information on events that have taken place during the reporting period can be found in the stock exchange releases published on Cencorp’s website at www.cencorp.com. At the same address, you can also find the disclosure flagging notifications concerning changes in ownership according to the Securities Markets Act.
Cencorp is part of the Finnish Savcor Group. Savcor Group Oy owns 34.8 percent and Savcor Group Limited 39.0 percent of Cencorp.
SEGMENT-BASED REPORTING
The Face (Telecom) corporate transaction was completed on 30 November 2010, and Cencorp’s reporting structure was altered as of 1 December 2010. The Face (Telecom) business result and balance sheet were consolidated in Cencorp’s consolidated figures starting on 1 December 2010, and Cencorp’s reporting has been based on two business segments since 2010. The business segments are Laser and Automation Applications, and Special Components. The Laser and Automation Applications segment comprises Cencorp’s former business and the Special Components segment the business acquired through the Face transaction.
PRESIDENT AND CEO MATS ERIKSSON
“A good market situation and our own sales efforts increased Cencorp Group’s net sales substantially during the first quarter of the year. We managed to increase the sales of laser and automation applications. Our net sales were also increased by the integration of the Face business into Cencorp.
The impacts of the earthquake and subsequent tsunami in Japan on the electronics industry have delayed some of our component deliveries, but these events have had no significant impact on our operations so far. Studies to find replacement components are underway.
Despite the increase in net sales, our profitability weakened clearly. Particularly in the Special Components segment, net sales development and operating profit were weakened by the dependence on a few major customer projects with unfavorable sales development. In addition to that, the Chinese New Year and the piling up of stocks at the turn of the year substantially slowed down demand for Cencorp’s components in Asia, particularly in the mobile phone sector. Demand declined faster than expected especially for components in the high-end price category. As a result of the rapid decline in sales volumes, we were not able to reduce our fixed costs to correspond to our previous volumes, which further weighed down our profitability.
The poor profitability of the Special Components segment is unacceptable, and we are currently increasing the efficiency of its operations and mapping out focus areas for the segment to identify the product groups with the best growth and profitability prospects.
The operating result of the Laser and Automation Applications segment remained at last year’s level. In this segment, delivery times for projects are long, at about 3–6 months, and the contracts signed at the beginning of the year for new, better margin deliveries are expected to significantly improve the segment’s profitability during the remainder of the year. Due to the segment’s seasonal nature, the profitability of Special Components is also expected to improve as the year goes on. Demand for special components was already at its normal level at the end of the first quarter.”
FINANCIAL DEVELOPMENT IN JANUARY–MARCH 2011
Operating environment
Cencorp operates in industries applying electronics and energy technology. Its main geographical market areas are Europe, North America, South America and Asia. The global electronics industry, including the manufacture of mobile phones, is mostly concentrated in Asia, the domestic market area for the special components manufactured by Cencorp.
Demand for laser and automation applications continued to increase during the first quarter of the year, and the increase is expected to continue as the rallying economy results in investments being started up. Rising labor costs, especially in China, are also contributing to the increasing need for production process automation and thus demand for automation products. Cencorp views the energy industry, and renewable energy applications in particular, as a new interesting market.
Demand for special components remained normal, even though the seasonal character of the business generally slows down demand during the first quarter of the year. The outlook is also bright for special components, as markets develop in line with the general economic situation, and with the telecommunications industry in particular. The growth outlook for other markets important for Cencorp, such as RFID transmitters and receivers and flexible circuits, is also positive.
Net sales and result
Net sales increased by 200 percent to EUR 5.7 million (EUR 1.9 million). The increase in net sales was due to the integration of the Face (Telecom) business into Cencorp and growing demand for laser automation and other automation equipment.
The operating result was EUR -2.3 million (EUR -0.9 million). The Group’s operating result was particularly weighed down by the poor profitability of the Special Components segment. The operating result of the Laser and Automation Applications segment remained at last year’s level.
The Group’s result before taxes amounted to EUR -3.0 million (EUR -0.8 million). The result for the reporting period was EUR -3.0 million (EUR -0.8 million).
Earnings per share were EUR -0.01 (EUR -0.01) and diluted earnings per share EUR -0.01 (EUR -0.01).
Significant orders received during the reporting period
In January, Cencorp announced that it had signed an agreement on the delivery of a production line to a European company operating in the electronics industry. The value of the deal is approximately EUR 0.6 million. In March, Cencorp announced that it had signed an agreement on the delivery of another production line to the same company. The value of this deal is also approximately EUR 0.6 million.
In February, Cencorp announced that it had signed an agreement on the delivery of odd-form assembly machinery to a European company operating in the electronics industry. The value of the deal is over EUR 1.7 million and the machinery will be delivered during the spring and early summer.
Financing
Cash flow from business operations before investments was EUR 1.5 million (EUR
-0.6 million). Trade receivables at the end of the reporting period were EUR 5.8 million (EUR 2.0 million). Net financial items amounted to EUR 0.7 (EUR 0.1 million of net financial income).
The equity ratio at the end of March stood at 54.1 (18.3) percent.
Equity per share was EUR 0.06 (EUR 0.01). At the end of the reporting period, the Group’s liquid assets totaled EUR 3.3 (0.2) million, and unused export credit limits and factoring loans amounted to EUR 1.5 million.
The rapid increase in net sales will tighten the working capital situation in the second quarter. According to the Board’s view, improved operative cash flow will remedy the situation during the remainder of the year.
In the share issue organized in March 2011, Cencorp’s biggest shareholder Savcor Group converted all of its liabilities maturing during the next 12 months into shares in the Company. Cencorp’s Board of Directors expects its financing resources to be sufficient to meet the financing needs during the next 12 months.
Product development
The Group’s product development expenses in January–March amounted to EUR 0.5 (0.2) million or 8.0 (12.4) percent of net sales.
Investments
Investments in January–March amounted to EUR 0.5 (0.1) million. The largest investments were EUR 0.2 million in machinery and equipment and EUR 0.1 million in development costs.
Segment information
Laser and Automation Applications
The Laser and Automation Applications segment’s net sales increased by 75 percent to EUR 3.4 million (EUR 1.9 million) during the first quarter of the year. The increase in net sales was due to the growing demand for laser automation and other automation equipment as a result of the upswing in the economic cycle as well as the boosting of our own sales efforts and the significant strengthening of the sales organization. The segment accounted for 58 percent of the Group’s net sales.
The operating result of the Laser and Automation Applications segment in the first quarter of the year was EUR -0.9 (-0.9) million. Due to the project nature of the business, most of the new deals made at the end of the last year and in the beginning of this year will only be recognized as revenues in the subsequent quarters, which is expected to significantly improve the segment’s profitability.
Special Components
The Face (Telecom) business result and balance sheet have been consolidated in Cencorp’s consolidated figures starting on 1 December 2010. Net sales of the Special Components segment in the first quarter of the year were EUR 2.4 million. The segment accounted for 42 percent of the Group’s net sales. The operating result totaled EUR -1.4 million.
Net sales development and profitability were weakened by, among other things, the dependence on a few major customer projects with unfavorable sales development. In addition, sales in this segment are focused on Asia, where the Chinese New Year and the piling up of stocks at the turn of the year slowed down demand more than expected, particularly for components in the high-end price category. Fixed costs could not be adapted to the rapid decline in demand at the Chinese plants, which further weakened profitability.
Due to the seasonal nature of the business, the first quarter of the year is usually the quietest period in the sales of Cencorp’s special components. Demand picked up at the end of the quarter and the same development is expected to continue as the year goes on. Other measures have also been implemented to improve the efficiency of the operations and the profitability of the Special Components segment. These include, among other things, mapping out growing and profitable product groups, cutting fixed costs and further optimizing production between plants.
PERSONNEL
During January–March, the Group employed an average of 354 (77) people, 63 of whom worked in Finland, 279 in China and 12 in other countries. During the reporting period, salaries and fees totaled EUR 1.7 (1.0) million.
Päivi Lehtovaara was appointed the Group’s CFO and Management Team member as of 1 March 2011. The former CFO Iikka Savisalo continues as a member of Cencorp’s Board of Directors. Simo Hietaniemi, Vice President, Project Business, will leave the Company on 31 July 2011. Hietaniemi resigned from Cencorp’s Management Team, effective 1 February 2011. The recruitment process for a new person is underway.
SHARES AND SHAREHOLDERS
The new shares subscribed to in the share issue carried out in March 2011 are not included in the figures below, because the shares were only entered into the trade register and admitted to trading on the NASDAQ OMX Helsinki Ltd after the end of the reporting period. Cencorp’s share capital amounts to EUR 3,425,059.10 and the number of shares following the share issue carried out in March 2011 is 342,161,270 shares. The Company has one series of shares, which confer equal rights in the company. Cencorp did not own any of its own shares at the end of the reporting period.
The Company had a total of 4,426 shareholders at the end of March, and 48.7 percent of the shares were under foreign ownership. The ten largest shareholders held 90.5 percent of the Company's shares and voting rights on 31 March 2011.
| Owners by owner group, 31 March 2011: | ||
| Shares/voting rights % | ||
| 1. SAVCOR GROUP LIMITED | 133,333,333 | 42.4 |
| 2. SAVCOR GROUP OY | 99,785,539 | 31.7 |
| 3. AC INVEST BV | 15,833,333 | 5.0 |
| 4. ETERA MUTUAL PENSION INSURANCE COMPANY | 14,833,333 | 4.7 |
| 5. TILITOIMISTO CAPITAL OY | 10,450,000 | 3.3 |
| 6. PAASILA MATTI | 2,777,777 | 0.9 |
| 7. JOKELA MARKKU | 2,287,519 | 0.7 |
| 8. TIMMERBACKA HANNU | 2,222,222 | 0.7 |
| 9. TUOHI & PAALU OY | 1,854,737 | 0.6 |
| 10. FT CAPITAL OY | 1,707,140 | 0.5 |
| OTHERS | 29,309,451 | 9.5 |
| TOTAL | 314,394,384 | 100.0 |
The members of the Board of Directors and the CEO, either directly or through companies under their control, held a total of 235,896,649 shares in the Company on 31 March 2011, representing about 75 percent of all shares and voting rights. The Company’s President and CEO Mats Eriksson did not hold any shares in the Company at the end of March.
The price of Cencorp’s share varied between EUR 0.12 and 0.20 during January–March. The average price was EUR 0.15, and the closing price at the end of March EUR 0.14. A total of 7.3 million Cencorp shares were traded in January–March at a value of EUR 1.1 million. The Company’s market capitalization at the end of March stood at EUR 47.9 million.
No share options were granted to the Company’s management during the period 1 January–31 March 2011. On 31 March 2011, the Company had valid share options in three different series as follows:
- 250,000 2006B options, the subscription period for which ended on 30 April 2011. The Company’s former management and Savcor Group Oy hold the options.
- 1,801,400 2007A options, the subscription period for which ends on 30 September 2011. Sampo Bank Plc holds the options.
- 8,931,000 2007A options connected to bond I/2010, the subscription period for which ends on 25 May 2015. Savcor Group Oy holds the options connected to bond I/2010.
No 2006C series options have been allocated and Cencorp Group continues to hold them. The subscription period for 2006A series options ended on 30 April 2010.
SHARE ISSUE
On 18 February 2011, Cencorp Corporation’s Board of Directors decided, based on the authorization of the Extraordinary General Meeting of 12 October 2010, to organize a share issue where the Company offered a maximum of 33,094,145 new shares in Cencorp to be subscribed to by the shareholders based on the shareholders’ preemptive rights.
A total of 27,766,886 shares, ie. 84 percent of the total number of shares offered, were subscribed to in the rights issue based on primary and secondary subscriptions. Through the rights issue, Cencorp raised a total of EUR 3,332,026 in new equity. This amount also includes the decrease in the Company’s liabilities by a total of EUR 2,333,945 as Savcor Group Oy offset the subscription price of the shares it subscribed to in the rights issue against its capital and interest receivables from the Company related to interest-bearing loans. A total of 2,058 subscribers participated in the share issue.
Following the rights issue, the number of the Company’s shares increased by 27,766,886 shares to 342,161,270 shares. The subscription price, EUR 3,332,026, is recognized in full in the Company’s distributable non-restricted equity fund. The rights issue has no impact on the Company’s registered share capital.
The new shares have been entered into the trade register and admitted to trading on the NASDAQ OMX Helsinki Ltd.
DECISIONS BY THE ANNUAL GENERAL MEETING
The Annual General Meeting held on 28 April 2011 confirmed the financial statements for the financial year 2010. According to the proposal of the Board of Directors, it was decided that no dividend be paid for the financial year 1 January–31 December 2010. It was also decided that the loss for the financial year ended on 31 December 2010 be entered in retained earnings. The persons who were working on the Company’s Board during the financial year and the President and CEOs who acted during the financial year were discharged from their liabilities for the financial year 1 January–31 December 2010.
Hannu Savisalo, Matti Paasila, Ismo Rautiainen and Iikka Savisalo were elected to the Company’s Board of Directors. At the constitutive meeting of the Board of Directors, held after the Annual General Meeting, Hannu Savisalo was elected as Chairman of the Board of Directors and Matti Paasila as Vice-Chairman.
The Annual General Meeting decided that an annual remuneration of EUR 40,000 be paid to both the Chairman and the Vice-Chairman of the Board of Directors and an annual remuneration of EUR 30,000 be paid to the Board members.
Ernst & Young Oy was elected as the Company’s auditor, with Mikko Rytilahti, Authorized Public Accountant, acting as the principal auditor.
The General Meeting decided to amend Article 8 of the Company’s Articles of Association to read as follows: “The invitation to the General Meeting shall be published, through a stock exchange release and on the Company’s website, at the earliest three calendar months prior to the record date of the General Meeting and at the latest three weeks prior to the General Meeting, however, always at least nine days prior to the record date of the General Meeting. When the Board of Directors so decides, the invitation to the meeting can also be published in a national newspaper determined by the Board of Directors.”
SHARE ISSUE AUTHORIZATIONS IN FORCE
Under the authorization given by the Extraordinary General Meeting on 12 October 2010 on issuing 160,000,000 new shares for the share issue directed at Savcor Group Limited, 133,333,333 shares were used in connection with the payment of the consideration for the Face (Telecom) corporate transaction. A total of 26,666,667 shares remain under the authorization.
Under another authorization given by the Extraordinary General Meeting on 12 October 2010 on issuing 80,000,000 new shares, 46,499,999 shares were used for the share issue directed to Etera Mutual Pension Insurance Company, AC Invest B.V. and Savcor Group Oy. Additionally, 27,766,886 shares were used subject to the authorization based on the share subscriptions made in the rights issue organized between 8 March 2011 and 24 March 2011. After this, a total of 5,733,115 shares remain under the authorization.
1,069,000 shares remain under the authorization given by Cencorp’s Annual General Meeting on 28 April 2009 to issue 10,000,000 new shares in Cencorp.
RISK MANAGEMENT, RISKS AND UNCERTAINTIES
Cencorp’s Board of Directors is responsible for the appropriate control of the Company’s accounts and finances. The Board is responsible for internal control, while the President and CEO handles the practical arrangement and monitors the efficiency of internal control. Business management and control are taken care of using a Group-wide reporting and forecasting system.
The purpose of risk management is to ensure that any significant business risks are identified and monitored appropriately. The Company’s business and financial risks are managed centrally by the Group’s financial department, and reports on risks are presented to the Board of Directors as necessary.
Due to the small size of the company and the limited scope of its business operations, Cencorp does not have an internal auditing organization or an audit committee.
As it is difficult to make forecasts in an industry that is dependent on economic cycles, the biggest risks are related to fluctuations in the demand for products and to the adjustment of operations to meet demand.
In terms of profitability, the most essential risks are related to the achievement of a sufficient invoicing volume in both business segments and the success achieved with the programs underway at Cencorp to improve profitability, such as improvements in productivity and business flexibility through outsourcing production.
In terms of operations, the biggest risks are related to outsourcing in-house equipment production to contract manufacturers, in particular to whether the production chain efficiency targets are achieved as planned.
The Company’s financing and sufficiency of working capital involve risks which have been dealt with point concerning financing in this interim report.
Other risks connected to Cencorp have been presented in more detail in the Annual Report for 2010 and in the base prospectus and its securities notes published on 25 October 2010.
OUTLOOK FOR 2011
Cencorp maintains its market prospects unchanged as follows: Cencorp expects net sales for 2011 to amount to approximately EUR 35–39 million, provided that no essential change takes place in the current economic landscape. The 12-month result from operations is expected to improve from 2010.
Cencorp’s order book at the end of March stood at around EUR 7.4 (1.5) million and at around EUR 6.5 million on the publishing date of this interim report.
Cencorp’s goal is to grow through acquisitions and mergers based on strategic choices, new products and new customer relationships, and by licensing products and technologies to complement the company’s own offering.
Alongside the electronics industry, Cencorp will actively target new emerging markets, such as energy production and energy supply applications for mobile equipment. In these selected areas, the company seeks a leading position as a supplier of special technology in the long term.
In Mikkeli, 9 May 2011
Cencorp Corporation
BOARD OF DIRECTORS
| Statement of Consolidated Comprehensive Income | ||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||
| 1 000 EUR | 1-3/2011 | 1-3/2010 | 1-12/2010 | |||||||||||||||||||||||||||||||||
| Net sales | 5 731 | 1 912 | 12 811 | |||||||||||||||||||||||||||||||||
| Cost of sales | -6 248 | -1 682 | -10 349 | |||||||||||||||||||||||||||||||||
| Gross profit | -517 | 230 | 2 461 | |||||||||||||||||||||||||||||||||
| Other operating income | 49 | 28 | 278 | |||||||||||||||||||||||||||||||||
| Product development expenses | -460 | -238 | -761 | |||||||||||||||||||||||||||||||||
| Sales and marketing expenses | -499 | -430 | -2 031 | |||||||||||||||||||||||||||||||||
| Administrative expenses | -860 | -507 | -3 000 | |||||||||||||||||||||||||||||||||
| Other operating expenses | -2 | -8 | -76 | |||||||||||||||||||||||||||||||||
| Operating profit | -2 288 | -924 | -3 128 | |||||||||||||||||||||||||||||||||
| Financial income | 324 | 189 | 605 | |||||||||||||||||||||||||||||||||
| Financial expenses | -990 | -66 | -973 | |||||||||||||||||||||||||||||||||
| Profit before taxes | -2 954 | -801 | -3 496 | |||||||||||||||||||||||||||||||||
| Income taxes | -5 | 8 | 12 | |||||||||||||||||||||||||||||||||
| Profit/loss for the period | -2 959 | -793 | -3 484 | |||||||||||||||||||||||||||||||||
| Profit/loss attributable to: | ||||||||||||||||||||||||||||||||||||
| Shareholders of the parent company | -2 959 | -793 | -3 484 | |||||||||||||||||||||||||||||||||
| Earnings/share (basic), eur | -0,01 | -0,01 | -0,02 | |||||||||||||||||||||||||||||||||
| Earnings/share (diluted), eur | -0,01 | -0,01 | -0,02 | |||||||||||||||||||||||||||||||||
| Other comprehensive income | ||||||||||||||||||||||||||||||||||||
| Translation difference | -579 | -122 | -320 | |||||||||||||||||||||||||||||||||
| Other comprehensive income | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Total comprehensive income for the year | -3 538 | -915 | -3 805 | |||||||||||||||||||||||||||||||||
| Total comprehensive income attributable to: | ||||||||||||||||||||||||||||||||||||
| Shareholders of the parent company | -3 538 | -915 | -3 805 | |||||||||||||||||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||
| 1 000 EUR | 31.3.2011 | 31.3.2010 | 31.12.2010 | |||||||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||||||
| Non-current assets | ||||||||||||||||||||||||||||||||||||
| Property, plant and equipment | 16 080 | 717 | 17 332 | |||||||||||||||||||||||||||||||||
| Goodwill | 2 967 | 2 967 | 2 967 | |||||||||||||||||||||||||||||||||
| Other intangible assets | 3 406 | 902 | 3 537 | |||||||||||||||||||||||||||||||||
| Available-for-sale investment | 10 | 10 | 10 | |||||||||||||||||||||||||||||||||
| Total non-current assets | 22 463 | 4 596 | 23 845 | |||||||||||||||||||||||||||||||||
| Current assets | ||||||||||||||||||||||||||||||||||||
| Inventories | 4 942 | 2 480 | 4 940 | |||||||||||||||||||||||||||||||||
| Trade and other non-interest-bearing receivables | 8 379 | 2 876 | 10 406 | |||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 3 252 | 207 | 1 647 | |||||||||||||||||||||||||||||||||
| Total current assets | 16 572 | 5 563 | 16 994 | |||||||||||||||||||||||||||||||||
| Total assets | 39 035 | 10 159 | 40 839 | |||||||||||||||||||||||||||||||||
| EQUITY AND LIABILITIES | ||||||||||||||||||||||||||||||||||||
| Equity attributable to shareholders of the parent company | ||||||||||||||||||||||||||||||||||||
| Share capital | 3 425 | 3 425 | 3 425 | |||||||||||||||||||||||||||||||||
| Other reserves | 43 344 | 18 432 | 40 012 | |||||||||||||||||||||||||||||||||
| Translation difference | -790 | -12 | -210 | |||||||||||||||||||||||||||||||||
| Retained earnings | -25 091 | -20 059 | -22 082 | |||||||||||||||||||||||||||||||||
| Total equity | 20 888 | 1 786 | 21 145 | |||||||||||||||||||||||||||||||||
| Non-current liabilities | ||||||||||||||||||||||||||||||||||||
| Non-current loans | 2 687 | 2 949 | 4 534 | |||||||||||||||||||||||||||||||||
| Deferred tax liabilities | 61 | 100 | 70 | |||||||||||||||||||||||||||||||||
| Total non-current liabilities | 2 748 | 3 049 | 4 604 | |||||||||||||||||||||||||||||||||
| Current liabilities | ||||||||||||||||||||||||||||||||||||
| Current interest-bearing liabilities | 5 186 | 2 555 | 5 905 | |||||||||||||||||||||||||||||||||
| Trande and other payables | 10 109 | 2 721 | 9 136 | |||||||||||||||||||||||||||||||||
| Current provisions | 104 | 47 | 49 | |||||||||||||||||||||||||||||||||
| Total current liabilities | 15 399 | 5 324 | 15 090 | |||||||||||||||||||||||||||||||||
| Total liabilities | 18 147 | 8 373 | 19 694 | |||||||||||||||||||||||||||||||||
| Equity and liabilities total | 39 035 | 10 159 | 40 839 | |||||||||||||||||||||||||||||||||
| Consolidated Cash Flow Statement | ||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||
| 1 000 EUR | 1-3/2011 | 1-3/2010 | 1-12/2010 | |||||||||||||||||||||||||||||||||
| Cash flow from operating activities | ||||||||||||||||||||||||||||||||||||
| Income statement profit/loss | -2 959 | -793 | -3 484 | |||||||||||||||||||||||||||||||||
| Non-monetary items adjusted on income statement | ||||||||||||||||||||||||||||||||||||
| Depreciation and impairment | + | 921 | 190 | 1 085 | ||||||||||||||||||||||||||||||||
| Gains/losses on disposals of non-current assets | +/- | 0 | -4 | 24 | ||||||||||||||||||||||||||||||||
| Unrealized exchange rate gains (-) and losses (+) | +/- | 395 | -176 | 104 | ||||||||||||||||||||||||||||||||
| Other non-cash transactions | +/- | 0 | -2 | 22 | ||||||||||||||||||||||||||||||||
| Financial income and expense | + | 270 | 53 | 264 | ||||||||||||||||||||||||||||||||
| Interest gains | - | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
| Taxes | - | 5 | -8 | -12 | ||||||||||||||||||||||||||||||||
| Total cash flow before change in working capital | -1 367 | -739 | -1 998 | |||||||||||||||||||||||||||||||||
| Change in working capital | ||||||||||||||||||||||||||||||||||||
| Increase (-) / decrease (+) in inventories | -166 | 110 | 387 | |||||||||||||||||||||||||||||||||
| Increase (-) / decrease (+) in trade and other receivables | 1 763 | -206 | -95 | |||||||||||||||||||||||||||||||||
| Increase (+) / decrease (-) in trade and other payables | 1 549 | 243 | 121 | |||||||||||||||||||||||||||||||||
| Change in working capital | 3 146 | 147 | 413 | |||||||||||||||||||||||||||||||||
| Adjustment of financial items and taxes to cash-based accounting | ||||||||||||||||||||||||||||||||||||
| Interest paid | - | -88 | -34 | -314 | ||||||||||||||||||||||||||||||||
| Interest received | + | 1 | 0 | 47 | ||||||||||||||||||||||||||||||||
| Other financial items | - | -125 | -9 | 15 | ||||||||||||||||||||||||||||||||
| Taxes paid | - | -83 | 0 | 0 | ||||||||||||||||||||||||||||||||
| Financial items and taxes | -294 | -43 | -252 | |||||||||||||||||||||||||||||||||
| NET CASH FLOW FROM BUSINESS OPERATIONS | 1 484 | -635 | -1 837 | |||||||||||||||||||||||||||||||||
| CASH FLOW FROM INVESTING ACTIVITIES | ||||||||||||||||||||||||||||||||||||
| Investments in tangible and intangible assets | - | -536 | -100 | -1 201 | ||||||||||||||||||||||||||||||||
| Proceeds on disposal of tangible and intangible assets | + | 0 | 16 | 10 | ||||||||||||||||||||||||||||||||
| Repayment of loan receivables | + | 0 | 341 | 1 042 | ||||||||||||||||||||||||||||||||
| Acquisition of subsidiaries and other business units | - | 0 | 0 | -2 504 | ||||||||||||||||||||||||||||||||
| Disposal of subsidiaries and other business units | + | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
| NET CASH FLOW FROM INVESTMENTS | -536 | 257 | -2 653 | |||||||||||||||||||||||||||||||||
| CASH FLOW FROM FINANCING ACTIVITIES | ||||||||||||||||||||||||||||||||||||
| Proceeds from share issue | + | 998 | 0 | 5 268 | ||||||||||||||||||||||||||||||||
| Proceeds from non-current borrowings | + | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
| Repayment of non-current borrowings | - | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
| Proceeds from current borrowings | + | 2 388 | 3 377 | 14 052 | ||||||||||||||||||||||||||||||||
| Repayment of current borrowings | - | -2 616 | -2 899 | -13 289 | ||||||||||||||||||||||||||||||||
| Dividends paid | - | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
| NET CASH FLOW FROM FINANCING ACTIVITIES | 770 | 478 | 6 030 | |||||||||||||||||||||||||||||||||
| INCREASE (+) OR DECREASE (-) IN CASH FLOW | 1 718 | 99 | 1 540 | |||||||||||||||||||||||||||||||||
| Statement of Changes in Equity | ||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||
| 1 000 EUR | Share capital | Other reserves | Translation difference | Distribu-table non-restricted equity fund | Retained earnings | Total | ||||||||||||||||||||||||||||||
| 31.12.2010 | 3 425 | 4 908 | -210 | 35 104 | -22 082 | 21 145 | ||||||||||||||||||||||||||||||
| Directed issue | 3 332 | 3 332 | ||||||||||||||||||||||||||||||||||
| Decrease from share issue | -41 | -41 | ||||||||||||||||||||||||||||||||||
| Direct entries in retained earnings | -10 | -10 | ||||||||||||||||||||||||||||||||||
| Translation difference, comprehensive income | -579 | -579 | ||||||||||||||||||||||||||||||||||
| Profit/loss for the period | -2 959 | -2 959 | ||||||||||||||||||||||||||||||||||
| 31.3.2011 | 3 425 | 4 908 | -790 | 38 436 | -25 091 | 20 888 | ||||||||||||||||||||||||||||||
| 1 000 EUR | Share capital | Other reserves | Translation difference | Distribu-table non-restricted equity fund | Retained earnings | Total | ||||||||||||||||||||||||||||||
| 31.12.2009 | 3 425 | 4 908 | 110 | 13 524 | -19 266 | 2 701 | ||||||||||||||||||||||||||||||
| Directed issue | 0 | |||||||||||||||||||||||||||||||||||
| Translation difference, comprehensive income | -122 | -122 | ||||||||||||||||||||||||||||||||||
| Profit/loss for the period | -793 | -793 | ||||||||||||||||||||||||||||||||||
| 31.3.2010 | 3 425 | 4 908 | -12 | 13 524 | -20 059 | 1 786 | ||||||||||||||||||||||||||||||
| Segment information | ||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||
| Face (Telecom) corporate transaction was completed on 30.11.2010, and Cencorp’s reporting structure was altered. Cencorp’s reporting for 2011 is based on two business segments. The business segments are Laser and Automation Applications, and Special Components. In 2010 Special Components business segment was consolidated in Cencorp's consolidated figures starting on 1 December 2010. | ||||||||||||||||||||||||||||||||||||
| 1 000 EUR | 1-3/2011 | 1-3/2010 | 1-12/2010 | |||||||||||||||||||||||||||||||||
| Net sales | ||||||||||||||||||||||||||||||||||||
| Laser and Automation Applications | 3 352 | 1 912 | 11 089 | |||||||||||||||||||||||||||||||||
| Special Components | 2 390 | 0 | 1 733 | |||||||||||||||||||||||||||||||||
| Eliminations | -12 | 0 | -12 | |||||||||||||||||||||||||||||||||
| Total | 5 731 | 1 912 | 12 811 | |||||||||||||||||||||||||||||||||
| Operating profit | ||||||||||||||||||||||||||||||||||||
| Laser and Automation Applications | -891 | -924 | -2 305 | |||||||||||||||||||||||||||||||||
| Special Components | -1 421 | 0 | -16 | |||||||||||||||||||||||||||||||||
| Eliminations | 23 | 0 | -807 | |||||||||||||||||||||||||||||||||
| Total | -2 288 | -924 | -3 128 | |||||||||||||||||||||||||||||||||
| Profit/loss for the period | ||||||||||||||||||||||||||||||||||||
| Laser and Automation Applications | -1 148 | -793 | -2 888 | |||||||||||||||||||||||||||||||||
| Special Components | -1 842 | 0 | -367 | |||||||||||||||||||||||||||||||||
| Eliminations | 31 | 0 | -229 | |||||||||||||||||||||||||||||||||
| Total | -2 959 | -793 | -3 484 | |||||||||||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||||||||||
| Laser and Automation Applications | 31 578 | 10 159 | 31 678 | |||||||||||||||||||||||||||||||||
| Special Components | 25 173 | 0 | 28 712 | |||||||||||||||||||||||||||||||||
| Eliminations | -17 716 | 0 | -19 551 | |||||||||||||||||||||||||||||||||
| Total | 39 035 | 10 159 | 40 839 | |||||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||
| Laser and Automation Applications | 9 950 | 8 373 | 10 379 | |||||||||||||||||||||||||||||||||
| Special Components | 13 180 | 0 | 14 161 | |||||||||||||||||||||||||||||||||
| Eliminations | -4 983 | 0 | -4 845 | |||||||||||||||||||||||||||||||||
| Total | 18 147 | 8 373 | 19 694 | |||||||||||||||||||||||||||||||||
| Investments | ||||||||||||||||||||||||||||||||||||
| Laser and Automation Applications | 206 | 100 | 1 675 | |||||||||||||||||||||||||||||||||
| Special Components | 273 | 0 | 56 | |||||||||||||||||||||||||||||||||
| Eliminations | 58 | 0 | -530 | |||||||||||||||||||||||||||||||||
| Total | 536 | 100 | 1 201 | |||||||||||||||||||||||||||||||||
| Depreciation | ||||||||||||||||||||||||||||||||||||
| Laser and Automation Applications | 280 | 190 | 799 | |||||||||||||||||||||||||||||||||
| Special Components | 641 | 0 | 226 | |||||||||||||||||||||||||||||||||
| Eliminations | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Total | 921 | 190 | 1 024 | |||||||||||||||||||||||||||||||||
| Impairment | ||||||||||||||||||||||||||||||||||||
| Laser and Automation Applications | 0 | 0 | 61 | |||||||||||||||||||||||||||||||||
| Special Components | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Eliminations | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Total | 0 | 0 | 61 | |||||||||||||||||||||||||||||||||
| Key Figures | ||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||
| 1 000 EUR | 1-3/2011 | 1-3/2010 | 1-12/2010 | |||||||||||||||||||||||||||||||||
| Net sales | 5 731 | 1 912 | 12 811 | |||||||||||||||||||||||||||||||||
| Operating profit | -2 288 | -924 | -3 128 | |||||||||||||||||||||||||||||||||
| % of net sales | -39,9 | -48,3 | -24,4 | |||||||||||||||||||||||||||||||||
| Profit before taxes | -2 954 | -801 | -3 496 | |||||||||||||||||||||||||||||||||
| % of net sales | -51,5 | -41,9 | -27,3 | |||||||||||||||||||||||||||||||||
| Balance Sheet value | 39 035 | 10 159 | 40 839 | |||||||||||||||||||||||||||||||||
| Equity ratio, % | 54,1 | 18,3 | 52,2 | |||||||||||||||||||||||||||||||||
| Net gearing, % | 22,1 | 257,4 | 41,6 | |||||||||||||||||||||||||||||||||
| Gross investments | 497 | 100 | 1 806 | |||||||||||||||||||||||||||||||||
| % of net sales | 8,7 | 5,2 | 14,1 | |||||||||||||||||||||||||||||||||
| Research and development costs | 460 | 238 | 761 | |||||||||||||||||||||||||||||||||
| % of net sales | 8,0 | 12,4 | 5,9 | |||||||||||||||||||||||||||||||||
| Order book | 7 356 | 1 535 | 6 013 | |||||||||||||||||||||||||||||||||
| Personnel on average | 354 | 77 | 98 | |||||||||||||||||||||||||||||||||
| Personnel at the end of the period | 345 | 69 | 371 | |||||||||||||||||||||||||||||||||
| Non-interest-bearing liabilities | 10 109 | 2 721 | 9 136 | |||||||||||||||||||||||||||||||||
| Interest-bearing liabilities | 7 873 | 5 504 | 10 440 | |||||||||||||||||||||||||||||||||
| Share key indicators | ||||||||||||||||||||||||||||||||||||
| Earnings/share (basic) | -0,01 | -0,01 | -0,02 | |||||||||||||||||||||||||||||||||
| Earnings/share (diluted) | -0,01 | -0,01 | -0,02 | |||||||||||||||||||||||||||||||||
| Equity/share | 0,06 | 0,01 | 0,07 | |||||||||||||||||||||||||||||||||
| Highest price | 0,20 | 0,19 | 0,19 | |||||||||||||||||||||||||||||||||
| Lowest price | 0,12 | 0,14 | 0,10 | |||||||||||||||||||||||||||||||||
| Average price | 0,15 | 0,17 | 0,14 | |||||||||||||||||||||||||||||||||
| Closing price | 0,14 | 0,17 | 0,15 | |||||||||||||||||||||||||||||||||
| Market capitalisation, at the end of the period, MEUR | 47,9 | 23,4 | 47,2 | |||||||||||||||||||||||||||||||||
| Calculation of Key Figures | ||||||||||||||||||||||||||||||||||||
| Equity ratio, %: | Total equity x 100 | |||||||||||||||||||||||||||||||||||
| Total assets - advances received | ||||||||||||||||||||||||||||||||||||
| Net gearing, %: | Interest-bearing liabilities - cash and cash equivalents | |||||||||||||||||||||||||||||||||||
| and marketable securities x 100 | ||||||||||||||||||||||||||||||||||||
| Shareholders' equity + minority interest | ||||||||||||||||||||||||||||||||||||
| Earnings/share (EPS): | Profit/loss for the period to the owner of the parent company | |||||||||||||||||||||||||||||||||||
| Average number of shares adjusted for share issue | ||||||||||||||||||||||||||||||||||||
| at the end of the financial year | ||||||||||||||||||||||||||||||||||||
| Equity/share: | Equity attributable to shareholders of the parent company | |||||||||||||||||||||||||||||||||||
| Undiluted number of shares on the balance sheet date | ||||||||||||||||||||||||||||||||||||
| Commitments and contingent liabilities | ||||||||||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||||||
| 1 000 EUR | 31.3.2011 | 31.3.2010 | 31.12.2010 | |||||||||||||||||||||||||||||||||
| Loans from financial institutions | 5 281 | 943 | 5 424 | |||||||||||||||||||||||||||||||||
| Promissory notes secured by pledge | 12 691 | 12 691 | 12 691 | |||||||||||||||||||||||||||||||||
| Mortgages on real estate | 4 747 | 0 | 5 006 | |||||||||||||||||||||||||||||||||
| Deposits | 537 | 0 | 567 | |||||||||||||||||||||||||||||||||
| Factoring loan and export credit limit | 1 037 | 1 019 | 1 355 | |||||||||||||||||||||||||||||||||
| Trade receivables | 1 686 | 1 346 | 1 720 | |||||||||||||||||||||||||||||||||
| Promissory notes secured by pledge | 12 691 | 12 691 | 12 691 | |||||||||||||||||||||||||||||||||
| Operating leases | ||||||||||||||||||||||||||||||||||||
| Payable within one year | 21 | 58 | 28 | |||||||||||||||||||||||||||||||||
| Payable over one year | 3 | 24 | 5 | |||||||||||||||||||||||||||||||||
| Commitments | ||||||||||||||||||||||||||||||||||||
| Payable within one year | 741 | 211 | 783 | |||||||||||||||||||||||||||||||||
| Payable over one year | 4 718 | 480 | 5 071 | |||||||||||||||||||||||||||||||||
For more information:
President and CEO Mats Eriksson, tel. +358 400 358 982
Cencorp’s interim report for January–June 2011 will be published on 15 August 2011.