TECHNOPOLIS PLC INTERIM REPORT May 7, 2014 at 8:00 a.m.
Technopolis Group Interim Report January 1 - March 31, 2014
Significant Investments in 2013 Drove Profitable Growth
- Net sales rose to EUR 39.7 (29.7) million, up 33.5%
- EBITDA rose to EUR 20.6 (14.0) million, up 47.2%
- The financial occupancy rate was 94.0% (92.2%)
- Earnings per share were EUR 0.07 (0.13), including changes in fair value and unrealized exchange rate losses
- Direct result (EPRA) rose to EUR 12.8 (8.0) million, up 56.0%
- Direct result per share (EPRA) was EUR 0.12 (0.10)
- Net asset value per share (EPRA) was EUR 4.84 (5.09)
The company’s net profit for the period was EUR 8.8 (10.8) million, including unrealized exchange rate losses of EUR -3.2 (0.4) million recognized in financial items due to the weakening of the Russian ruble and positive fair value changes of EUR 1.0 (3.3) million.
| 1-3/ | 1-3/ | 1-12/ | |
| Key Indicators | 2014 | 2013 | 2013 |
| Net sales, EUR million | 39.7 | 29.7 | 126.3 |
| EBITDA, EUR million | 20.6 | 14.0 | 64,1 |
| Operating profit, EUR million | 20.7 | 16.7 | 43,9 |
| Net result for the period, EUR million | 8.8 | 10.8 | 28,8 |
| Earnings/share, EUR | 0.07 | 0.13 | 0.30 |
| Cash flow from operations/share, EUR | 0.16 | 0.11 | 0.53 |
| Equity ratio, % | 40.1 | 40.1 | 40.2 |
| Equity/share, EUR | 4.55 | 4.53 | 4.66 |
Earnings and balance sheet figures per share have been adjusted for the share issue.
| EPRA-based | 1-3/ | 1-3/ | 1-12/ |
| Key Indicators | 2014 | 2013 | 2013 |
| Direct result, EUR million | 12.8 | 8.0 | 40.5 |
| Direct result/share, diluted, EUR | 0.12 | 0.10 | 0.47 |
| Net asset value/share, EUR | 4.84 | 5.09 | 4.94 |
| Net rental yield, % | 7.2 | 7.2 | 7.3 |
| Financial occupancy rate, % | 94.0 | 92.2 | 93.6 |
The EPRA-based (European Public Real Estate Association) direct result was EUR 12.8 (8.2) million, an increase of 56.0%. The EPRA-based direct result does not include unrealized exchange rate gains or losses or fair value changes. The growth was mainly due to the increase in net sales and EBITDA.
The company amended its income statement and business segment reporting as of the beginning of 2014. The comparable figures for 2013 are available on the company’s website and with regard to compared periods, also in this report.
Keith Silverang, CEO:
“It was already clear at the end of last year that the Technopolis would experience significant growth in both net sales and EBITDA during the 2014. We also knew that successful integration of our acquisitions as well as focus on operations would play a key role in our success this year.
The first quarter figures provided an indication that we are on track to successfully execute this plan. Sales in the quarter came in just over 33 % and EBITDA 47 % higher than last year. Occupancy also rose on the period. We are confident that we will meet the full-year guidance, although we expect occupancy-related challenges in a few campuses over the next couple of quarters.
Our financial position remained solid. The company's equity ratio, loan to value and interest cover remained at good levels, and the average interest rate remained low.
We have put unprecedented resources in the successful integration of our new campuses, particularly in Oslo. Our Vilnius campus is already fully integrated and the transformation of Falcon Business Park into Innopoli 3 is well underway. In Oslo the focus right now is on ramping up sales and implementing the Technopolis service concept.
Looking forward, the Ukrainian crisis has weakened economic prospects in Russia. This will also influence the Finnish economy and it’s growth outlook. However, I want to emphasize that Technopolis’ direct Russian risk is limited to 4.5% of net sales, 2.9% of EBITDA and 5.0% fair values. Most of the foreign exchange impact is related to the translation risk of St. Petersburg balance sheet items.
As for the remainder of the first half as well as the rest of the year, we will continue to focus on integration, operations and efficiency. We have made and we will continue to make value-adding investment decisions in existing campuses and we will not rule out acquisitions should the opportunity arise. We can execute these investments with our existing debt and equity resources as well as strong operational cash flow.”
Full version of Technopolis Plc’s interim report January 1 – March 31, 2014 attached.
Additional information:
Keith Silverang
CEO
tel. +358 40 566 7785
Distribution:
NASDAQ OMX Helsinki, main news media, www.technopolis.fi
About Technopolis:
Technopolis provides the best addresses for companies to operate and succeed in five countries in the Nordic-Baltic region. The company develops, owns and operates a chain of 21 smart business parks that combine services with flexible and modern office space. The company’s core value is to continuously exceed customer expectations by providing outstanding solutions to 1,500 companies and their 39,000 employees in Finland, Norway, Estonia, Russia and Lithuania. The Technopolis Plc share (TPS1V) is listed on NASDAQ OMX Helsinki.
