Panostaja Oyj Interim Report March 1, 2018, 10:00 a.m.
November 1, 2017–January 31, 2018 (3 months)
- Panostaja divested its KotiSun investment and recorded MEUR 32.9 in profits for the sale before taxes.
- As a result of corporate acquisitions, Grano's net sales for the review period increased by 46% from the corresponding period last year. EBIT in the review period grew to MEUR 1.1 from MEUR 0.6 in the reference period.
- Net sales increased in four of seven investments. For the Group as a whole, net sales increased by 33% to MEUR 44.9 (MEUR 33.7).
- EBIT increased in five of the seven investments, and the entire Group’s EBIT improved over the reference period to MEUR 1.7 (MEUR -1.0). The review period EBIT is elevated by the MEUR 1.3 in profit in relation to the right to deduct VAT.
- Earnings per share (undiluted) were 50.7 cents (-1.9 cents).
CEO Juha Sarsama: MEUR 33 in sales profit from KotiSun
“In this financial period, we carried out the most significant divestment in Panostaja’s history by selling KotiSun Group’s shares to a fund managed by CapMan. During our ownership, KotiSun’s business operations were digitalized and expanded dramatically to encompass new services and geographical areas. Under Panostaja’s ownership, the company’s net sales and EBIT tripled and the investment demonstrated excellent development in shareholder value. I am very happy with this investment, which is, in my opinion, a great indication of what can be achieved through strong and insightful development efforts together with the capable management of the company. In the review period, we recorded MEUR 32.9 in sales profit before taxes, and the sales strengthened our balance position considerably.
Overall, the total net sales of the investments continued to increase substantially in the review period, primarily due to the corporate acquisitions conducted by Grano over the course of the previous financial period. However, the net sales of the construction-related investments Selog and Helakeskus were significantly lower than in the reference period. We believe that the surprisingly weak demand in these segments was a temporary occurrence, and the outlook for the spring period with regard to market demand remains good. In terms of other aspects, the financial development of our investments during the period largely matched our expectations.
Within Grano, the restructuring and streamlining of operations is proceeding as planned. Among other measures, significant relocations of production are under way. However, the production changes with the most uncertainties attached have already been implemented. The efforts to improve profitability are also progressing at Megaklinikka. We are continuing to monitor the implementation of the changes in these companies to ensure an upturn in the profit/loss.
Activity on the corporate acquisition market has continued on a good level during the review period, and the supply of new investments has been active. The markets offer new opportunities for both select new acquisitions as well as divestments, and we will continue to actively explore related opportunities.”
| MEUR | Q1 | Q1 | 12 months |
|
11/17- 1/18 |
11/16- 1/17 |
11/16- 10/17 |
|
| Net sales, MEUR | 44.9 | 33.7 | 150.7 |
| EBIT, MEUR | 1.7 | -1.0 | 2.9 |
| Profit before taxes, MEUR | 1.2 | -1.4 | 1.2 |
| Profit/loss for the financial period, MEUR | 27.2 | -0.5 | 6.9 |
| Earnings per share, undiluted (EUR) | 0.51 | -0.02 | 0.03 |
| Equity per share (EUR) | 1.09 | 0.71 | 0.59 |
| Operating cash flow (MEUR) | -0.9 | 4.6 | 15.6 |
|
Division of the net sales by segment MEUR |
Q1 | Q1 | 12 months |
|
Net sales |
11/17- 1/18 |
11/16- 1/17 |
11/16- 10/17 |
| Grano | 34.0 | 23.3 | 105.3 |
| KL-Varaosat | 3.4 | 3.2 | 13.5 |
| Selog | 1.9 | 2.6 | 10.8 |
| Helakeskus | 1.9 | 2.1 | 8.9 |
| Megaklinikka | 1.4 | 1.4 | 6.0 |
| Heatmasters | 1.0 | 0.9 | 5.3 |
| CoreHW | 1.3 | 0.0 | 1.0 |
| Others | 0.0 | 0.0 | 0.0 |
| Eliminations | 0.0 | 0.0 | -0.1 |
| Group in total | 44.9 | 33.7 | 150.7 |
|
Division of EBIT by segment MEUR |
Q1 | Q1 | 12 months |
|
EBIT |
11/17- 1/18 |
11/16- 1/17 |
11/16- 10/17 |
| Grano | 1.1 | 0.6 | 6.3 |
| KL-Varaosat | 0.2 | 0.2 | 1.0 |
| Selog | 0.0 | 0.1 | 0.8 |
| Helakeskus | 0.0 | 0.0 | 0.5 |
| Megaklinikka | -0.2 | -0.8 | -1.6 |
| Heatmasters | -0.1 | -0.3 | -0.2 |
| CoreHW | 0.1 | 0.0 | 0.0 |
| Others | 0.6 | -0.8 | -4.0 |
| Group in total | 1.7 | -1.0 | 2.9 |
Panostaja Group’s business operations for the current review period are reported in eight segments: Grano, Selog, Helakeskus, KL-Varaosat, Heatmasters, Megaklinikka, CoreHW and Others (parent company and associated companies).
There were no significant changes in the net sales of the segment Others. In the review period, three associated companies issued reports: Juuri Partners Oy, Ecosir Group Oy and Spectra Yhtiöt Oy. The profit/loss of the reported associated companies in the review period was MEUR 0.0 (MEUR 0.0), which is presented on a separate row in the consolidated income statement.
Outlook for the 2018 Financial Period
Activity on the corporate acquisition market has continued on a good level during the review period, and the supply of new investments has been active. The need to exploit ownership arrangements and growth opportunities in SMEs will continue, and as our own activity complements the supply of possible acquisitions from outside, there are plenty of possibilities for corporate acquisitions on the market. Panostaja aims to implement its growth strategy by means of controlled acquisitions in current investments, and new potential investments are also being actively studied. In addition to this, the possibilities for divestment continue to be actively assessed as part of the investments’ ownership strategies.
The demand situation for different investments is thought to develop in the short term as follows:
- The demand for Selog, Helakeskus and CoreHW remains good
- The demand for Grano, KL-Varaosat and Heatmasters will remain satisfactory
- Demand for Megaklinikka will remain weak
Panostaja Oyj
Board of Directors
For further information, contact CEO Juha Sarsama: tel. +358 (0)40 774 2099.
