HONKARAKENNE OYJ FINANCIAL STATEMENT RELEASE 15 February 2012 at 5:30 pm
HONKARAKENNE OYJ FINANCIAL STATEMENT RELEASE 1 JANUARY - 31 DECEMBER 2011
SUMMARY
The result before taxes for the whole year increased despite decreasing revenues.
September-December 2011
- Honkarakenne Group's consolidated net sales for the last quarter of the year amounted to EUR 13.6 million (EUR 15.0 million in 2010), a decrease of 9% on the previous year's corresponding period
- Operating profit was EUR -0.2 million (EUR 0.5 million). Operating profit without non-recurring items was EUR -0.2 million (EUR 0.6 million)
- Profit before taxes was EUR -0.4 million (EUR 0.2 million)
- Earnings per share amounted to EUR -0.10 (EUR 0.20)
Year 2011
- Honkarakenne Group’s consolidated net sales for the entire year amounted to EUR 55.0 million (EUR 58.1 million), a decrease of 5% on the previous year’s corresponding period
- Operating profit was EUR 1.9 million (EUR 1.3 million), increase 38 %. Operating profit without non-recurring items was EUR 1.6 million (EUR 2.5 million)
- Profit before taxes was EUR 1.1 million (EUR 0.4 million)
- Earnings per share amounted to EUR 0.17 (EUR 0.23)
The Board shall propose at the Annual General Meeting that no dividend should be distributed for the financial year ending on 31 December 2011 and that the remaining available funds remain in the unrestricted shareholders’ equity. The Board proposes that capital repayment of EUR 0.08 per share will be distributed from the fund for invested unrestricted equity.
Net sales and result before taxes for 2012 are forecasted to remain at the previous year’s level. The first quarter of the year will be financially negative due to seasonal variation. The risk relating to the profit forecast is that the company’s order book at year-end is 25% below the previous year’s level.
| KEY FIGURES |
10–12/ 2011 |
10–12/ 2010 |
1-12/ 2011 |
1-12/ 2010 |
change % |
| Net sales, MEUR | 13.6 | 15.0 | 55.0 | 58.1 | -5.3 |
| Operating profit/loss, MEUR | -0.2 | 0.5 | 1.9 | 1.3 | |
| Operating profit before non-recurring items, MEUR | -0.2 | 0.6 | 1.6 | 2.5 | |
| Profit/loss before taxes, MEUR | -0.4 | 0.2 | 1.1 | 0.4 | |
| Average number of personnel | 265 | 291 | |||
| Earnings/share (EPS), EUR | -0.10 | 0.20 | 0.17 | 0.23 | |
| Equity ratio, % | 53 | 42 | |||
| Return on equity, % | 5 | 7 | |||
| Shareholders' equity/share, EUR | 3.7 | 3.6 | |||
| Gearing, % | 35 | 73 |
Mikko Jaskari, acting President and CEO of Honkarakenne Oyj, in connection with the financial statement release:
Honkarakenne’s net result before taxes for the entire year was satisfactory,
considering the circumstances. Despite difficult market situation the result before taxes improved compared to the previous year and especially the financial position of the group was in the targeted level in the end of the year. The Group’s equity ratio was 53% (42%) and net gearing was 35 % (73%).
The economic recession affected the sales in the end of the year. The development of sales was not satisfactory in the third and in the fourth quarter. The sales in market areas Far East, East and Other Markets were higher than in the previous year. In Finland and West the sales were lower in the previous year. Especially sales in the West were lower than targeted.
The main focus in 2012 will be on expediting sales. Honkarakenne will continue focusing on its premium and luxury strategy. This will be shown especially in design during 2012. In Finland growth will be sought in the residential house business and from urban construction projects based on wood. In exports, premium products, such as Honka Fusion™, will be developed further.
In the end of 2011 we started sales excellence training in Finland. The first results have been very promising and the training program will be rolled out to the whole international sales channel during 2012. The importance of personal sales skills is crucial in the difficult market situation.
NET SALES
Honkarakenne Group’s net sales for the year 2011 decreased by 5 per cent to EUR 55.0 million (EUR 58.1 million), the net sales in Finland reduced by 11 per cent to EUR 22.9 million (EUR 25.7 million), and export net sales reduced by 1 per cent to EUR 30.6 million (EUR 30.8 million).
The Group’s last-quarter net sales in 2011 decreased by 9 per cent to EUR 13.6 million (EUR 15.0 million). The net sales in Finland reduced by 7 per cent to one million EUR (EUR 5.7 million), and export net sales reduced by 10 per cent to EUR 8.6 million (EUR 9.5 million).
Geographical distribution of net sales:
| DEVELOPMENT OF SALES | ||||||
|
Distribution of net sales, % |
1-12/ 2011 |
1-12/ 2010 |
||||
| Finland | 42 % | 44 % | ||||
| West | 14 % | 19 % | ||||
| East | 25 % | 22 % | ||||
| Far East | 13 % | 10 % | ||||
| Other Markets | 4 % | 2 % | ||||
| Process waste sales for recycling | 3 % | 2 % | ||||
| Total | 100 % | 100 % | ||||
| Net sales, MEUR |
10–12/ 2011 |
10–12/ 2010 |
Change % |
1-12/ 2011 |
1-12/ 2010 |
Change % |
| Finland | 4.9 | 5.3 | -7 % | 22.9 | 25.7 | -11 % |
| West | 1.7 | 3.0 | -45 % | 7.8 | 11.3 | -31 % |
| East | 4.0 | 4.5 | -11 % | 13.9 | 12.8 | 9 % |
| Far East | 2.4 | 1.8 | 32 % | 6.9 | 5.7 | 21 % |
| Other Markets | 0.5 | 0.1 | 268 % | 2.0 | 1.1 | 70 % |
| Process waste sales for recycling | 0.2 | 0.2 | -17 % | 1.5 | 1.4 | 6 % |
| Total | 13.6 | 15.0 | 55.0 | 58.1 | -5 % |
West, includes the following countries: Netherlands, Belgium, Spain, Ireland, Great Britain, Iceland, Italy, Austria, Greece, Cyprus, Latvia, Lithuania, Luxembourg, Norway, Portugal, Poland, France, Sweden, Germany, Slovakia, Slovenia, Switzerland, Denmark, Czech Republic, Hungary and Estonia.
East, includes the following countries: Azerbaijan, Kazakhstan, Ukraine, Russia and other CIS countries.
Far East, includes South Korea and Japan.
Other markets, includes the following countries: Bulgaria, China, Croatia, Mongolia, North and South America, Romania, Serbia, Turkey as well as new target countries and markets.
In addition, the sales of factory process waste for recycling will be reported separately from the actual Honkarakenne core business operations.
DEVELOPMENT OF PROFIT AND PROFITABILITY
Operating profit in 2011 was MEUR 1.9 (MEUR 1.3), and profit before taxes was MEUR 1.1 (MEUR 0.4).
The calculations below present the change in operating profit from 2010 to 2011.
| Operating profit 2010 without non-recurring items | 2.5 |
| Improvement programme and increase in sales | -1.0 |
| Other items | +0.1 |
| Operating profit 2010 without non-recurring items | 1.6 |
| Non-recurring items | +0.3 |
| Operating profit 2011 | 1.9 |
Non-recurring items 2011 includes a positive item generated by the sale of the shareholding in Karjalan Lisenssisaha Invest Oy of MEUR 0.34 and non-recurring implementation expenditure for the improvement programme amounting to MEUR 0.06.
The goal of the improvement programme initiated by the Group at the beginning of 2010 is to increase the result by MEUR 8 within two years. Of this, MEUR 5.1 was achieved in 2010, and for 2011 the targeted improvement was MEUR 2.9. The targeted improvement was not achieved and operating profit without non-recurring items decreased from previous year. The negative result of the improvement programme is a result of the fact that the development of sales was not satisfactory, which is why the required volumes have not been secured for the improvement programme.
FINANCING AND INVESTMENTS
In the course of the period under review, the financial position of the Group strengthened. The equity ratio stood at 53% (42%) and interest-bearing net liabilities at MEUR 6.1 (MEUR 12.8). MEUR 0.8 (3.2) of the interest-bearing net liabilities carries a 30% equity ratio covenant term. Group liquid assets totalled MEUR 2.6 (MEUR 1.9). The Group also has a MEUR 10.0 bank overdraft facility, MEUR 9.2 (MEUR 6.8) of which had not been drawn on at the end of the report period. Gearing stood at 35% (73%). The Group’s capital expenditure totalled MEUR 1.0 (MEUR 0.6), at the same period depreciations were 3.3 MEUR (MEUR 3.7).
The Group arranged its financial position in December 2011. A new loan agreement was made in December and the loan arrangements were put in place after the review period in January 2012. After the arrangement in January the short term loans decreased by 2.8 million euro and long term loans increased by 2.8 million euro. Additionally the bank overdraft facility was decreased by 2 million euro to 8 million euro.
MARKET DEVELOPMENT
Based on a report commissioned by RTS Oy, Finnish log house production value is estimated to have grown by 1% in 2011. The figure includes production for Finland and for overseas export.
For year 2012 the RTS Oy’s report forecasts 6 % decrease in the market.
PRODUCTS AND MARKETING
In Finland main emphasis in 2011 was on energy efficient solutions, development of vacation home models and development of urban consruction projects. In the beginning of the year Honkarakenne brought Honka Säästö energy saving concept to the market. This is a unique structural solution that allows holiday houses with modern comforts to remain completely cold during the Winter Honka Säästö™ introduces significant reductions to the energy costs of vacation houses and provides safety for example electricity black outs during Winter.
In 2011 Honkarakenne launched new vacation house models such as the Saariston Tähti range, which is particularly directed at meeting the needs of vacation homes in the archipelago areas.
Honkarakenne’s Lokki -model, launched at the Holiday Housing Fair in Mäntyharju, was elected the Log House of the Year by a jury summoned by Hirsitaloteollisuus. The jury consisted of designer Ristomatti Ratia and professor Jouni Koiso-Kanttila.
In August, Honkarakenne presented the regional development venture to be implemented in Suurpelto in Espoo. Urban homes that will be of high quality and ecologically sustainable will be built in Suurpelto using the collaborative construction method.
In market area West the sales of Honka Fusion was especially promoted. In order to boost sales, sales training was organised for all importers in the West market area.
Single-family house models based on the Honka Fusion™ concept were launched in Germany and the UK in the second quarter. Efforts were also be made especially in Germany to recruit additional importers .
In the East, the new Jewels™ range of models in the premium segment was launched in the second quarter. All houses in the Jewels™ range are large single-family houses. The Jewels™ range has taken into account the typical needs of customers in the premium segment of the East market area. The range was well received in the market and the first deals were made immediately after the launch. In the fourth quarter the sales promotion was mainly made through fairs and new representatives were sought from the neighboring countries for Russia.
In Far East, the first quarter was overshadowed by Japan’s natural disaster in March. In the second quarter the existing product ranges were renewed in response to the development of customer needs. In order to support sales, a concept handbook was prepared specifically for importers, which will facilitate discussion between the seller and the customer when purchasing decisions are being made. The natural disaster has increased the energy consciousness in Japan. As a response Honkarakenne took the triple glass windows which are well known in Nordic countries as a default in all house shipments to Japan.
In the Other Markets group sales was pursued from individual large projects during the year. The sales network development was made mainly in North American market where the sales network structure was changed during the second and third quarter.
In the fourth quarter Honkarakenne streamlined its log range in all market areas to fit better the customer demand and coming energy restrictions. This renewal should give better customer satisfaction and cost efficiency in planning new houses.
RESEARCH AND DEVELOPMENT
In January–December, the Group's R&D expenditures were EUR 0.5 million (EUR 0.6 million), 1.0% of net sales (1.1%). The Group has not activated development costs during the financial year.
STAFF
During the year the Group employed 265 people (291) on average. This is 26 less than at the same time in the previous year.
The Group employed 261 (266) people at the end of year.
At the end of the second quarter, Honkarakenne concluded co-operation negotiations and as a result of these negotiations, it was agreed that Honkarakenne may lay off its staff for a fixed period not exceeding 90 days up by the end of March 2012. In the autumn market situation decreased and new co-operation negotiations were initiated for both indefinite lay-offs and temporary lay-offs during the last quarter of the year. Co-operation negotiations were concluded on January 2012. As a result of negotiations 49 persons were laid off for an indefinite period and other personnel in Finland can be laid off for maximum 90 days by the end of September 2012.
HONKARAKENNE OYJ’S 2011 ANNUAL GENERAL MEETING, BOARD OF DIRECTORS, AND AUDITORS
The Annual General Meeting (AGM) of Honkarakenne Oyj was held at the company’s headquarters in Tuusula on 1 April 2011. The AGM confirmed the financial statements of the parent company and Group, and discharged from liability the board members and CEOs for 2010. The AGM decided to pay a dividend of EUR 0.10 on B shares for the 2010 financial year.
Anders Adlercreutz, Lasse Kurkilahti, Mauri Saarelainen, Marko Saarelainen, Mauri Niemi, Teijo Pankko and Pirjo Ruuska were elected to the Board of Directors. The Board’s organisation meeting elected Lasse Kurkilahti as Chairman of the Board. Mauri Saarelainen is serving as Deputy Chairman of the Board. Lasse Kurkilahti, Pirjo Ruuska and Teijo Pankko were elected to the company’s audit committee.
Authorised Public Accounting company KPMG Oy Ab was elected as auditor, the main auditor being Authorised Public Accountant Reino Tikkanen.
AUTHORISATIONS OF THE BOARD OF DIRECTORS, RELATED DIRECTED ISSUE, MANAGEMENT INCENTIVE SYSTEM, AND OWN SHARES
On 1 April 2011, the AGM decided that the Board of Directors was authorised to acquire a maximum of 400,000 of the company’s own B shares with assets included in the company’s unrestricted equity. In addition, the AGM authorised the Board to decide on a rights issue or bonus issue and on granting special rights to shares referred to in Section 1 of Chapter 10 of the Limited Liability Companies Act in one or more instalments. By virtue of the authorisation, the Board may issue a maximum total of 400,000 new shares and/or relinquish old B shares held by the company, including those shares that can be issued by virtue of special rights. Both authorisations will be valid until 25 March 2012.
On 31 May 2010, the Board of Directors of Honkarakenne Oyj decided on a share ownership system for the management of the Honkarakenne Group, the purpose of which is to enable the significant long-term ownership in the company by management. In the second quarter, the Board decided to relinquish to Honka Management Oy, a holding company set up by management, 17,250 of the company’s B shares in its possession in a directed rights issue in order to enlarge the system, with Honkarakenne’s new management team member, Sanna Wester, joining it.
In the directed issue, Honkarakenne relinquished to Honka Management Oy a total of 17,250 of its own shares (HONBS) as part of the share ownership system for Honkarakenne management. The purchase price of the shares was EUR 5.26 each, making a total of EUR 90,735.
After the transaction, Honka Management Oy now owns 286,250 B shares in Honkarakenne Oyj.
During the period under review, Honkarakenne Oyj did not buy any of its own shares. At the end of the period, the Group owned 364,385 B shares, with a total purchase price of EUR 1,381,750.23. The proportion of these shares of the company’s share capital is 7.05% and represents 3.35% of all voting rights. The purchase cost of the shares has been entered in the Group accounts to reduce shareholders’ equity. Honkarakenne Oyj’s share capital comprises a total of 5,168,968 shares, of which
300,096 are A shares and 4,868,872 are B shares. Each B share yields one (1) vote and each A share twenty (20) votes, so the total number of votes yielded by all Honkarakenne’s shares is 10,870,792. The company’s share capital amounts to EUR 9,897,936.00.
OWNERSHIP CHANGES IN ASSOCIATED COMPANIES
On 17 February 2011, Honkarakenne Oyj signed an agreement to sell its 37.5% sharehold in Karjalan Lisenssisaha Invest Oy to FM Timber Team Oy. Karjalan Lisenssisaha Invest Oy and its subsidiaries operate in the field of sawmill industry in Russia. Honkarakenne relinquished its sharehold in Karjalan Lisenssisaha Invest Oy as part of its aim to focus on its core operations.
CORPORATE GOVERNANCE
Honkarakenne Oyj follows the Limited Liability Companies Act and the Finnish Corporate Governance Code, 1 October 2010, for listed companies issued by the Finnish Securities Market Association. The company's website, www.honka.com/investors, provides more information on the corporate governance systems.
FORTHCOMING RISKS AND UNCERTAINTIES
During the last two quarters the amount of signed deals has decreased significantly. This causes a risk in achieving the estimated revenue and profit forecasts, if the decreasing trend cannot be turned.
The market situation in all Honkarakenne markets is uncertain. Market situation may lead to overall decrease of demand which is a risk for achieving the forecasted result level.
The consolidated financial statements include EUR 2.0 million (EUR 3.7 million) of long-term receivables which are more than 180 days overdue, with no credit loss provision. The Group has one significant concentration of credit risks in sales receivables, concerning the open sales receivables of one importer. No provision for doubtful debt has been made for this. The new sales made with this importer have been paid according to the agreed terms. Deliveries to the importer have continued, and the risks with the open sales receivables have not increased. A payment plan agreement related to the matter was updated during the second quarter of the year. These sales receivables have diminished during 2011.
The assessment of amounts in the balance sheet is based on current assessment by the management. If these assessments are changed, this may result in changes to the Group's result.
REPORTING
This report contains statements that relate to the future, and these statements are based on hypotheses that the company's management hold currently as well as on the decisions and plans that are currently in place. Although the management believes that the hypotheses relating to the future are well-founded, there is no guarantee that the said hypotheses will prove to be correct.
This financial statements bulletin has been prepared in line with standard IAS 34, Interim Financial Reporting. The new revised standards or interpretations effective as of 1 January 2010 have no bearing on the figures presented for the report period. The figures have not been examined by the auditor.
EVENTS AFTER THE REVIEW PERIOD
Honkarakenne CEO Esa Rautalinko resigned to pursue a new career opportunity on 27.1.2012. The Board of Directors has appointed Mikko Jaskari as acting President and CEO of Honkarakenne as of February 2 2012. Search for a new CEO is ongoing.
THE OUTLOOK FOR 2012
Net sales and result before taxes for 2012 are forecasted to remain at the previous year’s level. The first quarter of the year will be financially negative due to seasonal variation. The risk relating to the profit forecast is that the company’s orderbook at year-end is 25% below the previous year’s level.
At the end of December, the Group’s order book stood at MEUR 13.6, which was MEUR 17.3 at the same period the previous year. The order book refers to orders whose delivery date falls within the next 24 months. Some orders may include a financing or building permit condition.
PROPOSAL OF THE BOARD OF DIRECTORS ON THE USE OF PROFIT FUNDS
The free capital of the parent company as of December 31 2011 was MEUR 3.6 of which distributable assets were MEUR 0.7. The profit of the annual period in the parent company was MEUR 0.3.
The Board shall propose at the Annual General Meeting that no dividend should be distributed for the financial year ending on 31 December 2011 and that the remaining available funds remain in the unrestricted shareholders’ equity. The Board proposes that capital repayment of EUR 0.08 per share will be distributed from the fund for invested unrestricted equity.
GENERAL MEETING
The Annual General Meeting of Honkarakenne Oyj will be held at the company’s headquarters in Tuusula on Friday 30 March 2012 at 2:00 pm.
HONKARAKENNE OYJ
Board of Directors
Further information:
Mikko Jaskari, acting President and CEO, tel. +358 400 535 337, mikko.jaskari@honka.com
This and previous releases are available for viewing on the company's website at www.honka.com/investors. In week 10, Honkarakenne will publish on the company’s website at www.honka.com/investors report by the Board of Directors, the financial statements and a separate Corporate Governance Statement. The 2012 interim reports will be published on 10 May 2012, 9 August 2012 and 8 November 2012.
DISTRIBUTION
NASDAQ OMX Helsinki
Key media
Financial Supervisory Authority
www.honka.com
|
CONSOLIDATED BALANCE SHEET (unaudited) |
31.12.2011 |
31.12.2010 |
| (MEUR) | ||
| Assets | ||
| Non-current assets | ||
| Property, plant and equipment | 19.0 | 21.6 |
| Goodwill | 0.1 | 0.1 |
| Other intangible assets | 0.7 | 1.0 |
| Investments in associated companies | 0.3 | 1.8 |
| Other investments | 0.2 | 0.4 |
| Receivables | 0.3 | 0.1 |
| Deferred tax assets | 1.1 | 1.6 |
| 21.7 | 26.5 | |
| Current assets | ||
| Inventories | 7.1 | 9.9 |
| Trade and other receivables | 7.7 | 8.0 |
| Cash and bank receivables | 2.6 | 1.9 |
| 17.3 | 19.9 | |
| Total assets | 39.0 | 46.4 |
| 31.12.2011 | 31.12.2010 | |
| Shareholders' equity and liabilities | ||
|
Equity attributable to equity holders of the parent |
||
| Capital stock | 9.9 | 9.9 |
| Share premium | 0.5 | 0.5 |
| Reserve fund | 5.3 | 5.3 |
| Unrestricted equity reserve | 1.9 | 1.9 |
| Translation differences | 0.5 | 0.3 |
| Retained earnings | -0.2 | -0.6 |
| 17.9 | 17.3 | |
| Non-controlling interests | 0.2 | 0.2 |
| Total equity | 18.1 | 17.5 |
| Non-current liabilities | ||
| Deferred tax liabilities | 0.2 | 0.3 |
| Provisions | 0.3 | 0.4 |
| Intrest bearing debt | 5.1 | 11.1 |
| Non-intrest bearing debt | 0.0 | 0.0 |
| 5.6 | 11.8 | |
| Current liabilities | ||
| Trade and other payables | 11.5 | 13.5 |
| Tax liabilities | 0.1 | 0.0 |
| Intrest bearing debt | 3.7 | 3.6 |
| 15.3 | 17.1 | |
| Total liabilities | 20.9 | 28.9 |
| Total equity and liabilities | 39.0 | 46.4 |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||
| (unaudited) |
10-12
/2011 |
10-12
/2010 |
1-12
/2011 |
1-12
/2010 |
| (MEUR) | ||||
| Net sales | 16.6 | 15.0 | 55.0 | 58.1 |
| Other operating income | 0.3 | 0.2 | 1.1 | 1.0 |
| Change in inventories | -1.8 | -0.8 | -2.0 | 0.3 |
| Production for own use | 0.0 | 0.0 | 0.0 | 0.0 |
| Materials and services | -5.7 | -7.7 | -28.9 | -32.6 |
| Employee benefit expenses | -2.8 | -3.1 | -11.1 | -12.2 |
| Depreciations | -0.9 | -0.9 | -3.3 | -3.7 |
| Other operating expenses | -2.9 | -2.3 | -8.9 | -9.6 |
| Operating profit/loss | 0.2 | 0.5 | 1.9 | 1.3 |
| Financial income and expenses | -0.2 | -0.1 | -0.7 | -0.7 |
| Share of associated companies' profit | 0.0 | -0.2 | -0.1 | -0.2 |
| Profit/loss before taxes | -0.4 | -0.2 | 1.1 | 0.4 |
| Taxes | -0.1 | 0.7 | -0.3 | 0.7 |
| Profit/loss for the period | -0.5 | 0.9 | 0.8 | 1.1 |
| Other comprehensive income: | ||||
| Translation differences | 0.0 | 0.1 | 0.1 | 0.3 |
|
Total comprehensive income for the period |
-0.5 | 1.0 | 0.9 | 1.4 |
| Attributable to: | ||||
| Equity holders of the parent | -0.5 | 1.0 | 0.9 | 1.4 |
| Non-controlling interest | -0.0 | 0.0 | 0.0 | 0.0 |
| -0.5 | 1.0 | 0.9 | 1.4 | |
| Earnings/share (EPS), EUR | ||||
| Basic | -0.10 | 0.20 | 0.17 | 0.23 |
| Diluted | -0.10 | 0.20 | 0.17 | 0.23 |
|
STATEMENT OF CHANGES IN EQUITY (unaudited) |
|||||||||||
| 1000 EUR | Equity attributable to equity holders of the parent | ||||||||||
| a) | b) | c) | d) | e) | f) | g) | Total | h) | Total equity | ||
| Total equity 1.1.2010 | 7.498 | 520 | 5.316 | 29 |
-1.138 |
82 |
12.307 |
9 |
12.316 |
||
| Share issue | 2.400 | 1.081 | 3.480 | 3.480 | |||||||
| Management Incentive plan | 816 | -816 | 0 | 203 | 203 | ||||||
|
Purchase of own shares |
-182 | -182 | -182 | ||||||||
|
Proceeds from sale of own shares |
758 | -414 | 344 | 344 | |||||||
| Total comprehensive income for the period | 290 | 1.103 | 1.393 | -11 | 1382 | ||||||
|
Total equity 31.12.2010 |
9.898 |
520 |
5.316 |
1.896 | 319 | -1.378 | 771 | 17.342 | 200 | 17.542 | |
| a) | b) | c) | d) | e) | f) | g) | Total | h) | Total equity | ||
|
Total equity 1.1.2011 |
9.898 |
520 |
5.316 |
1.896 |
319 | -1.378 | 771 | 17.342 | 200 | 17.542 | |
| Dividends | -445 | -445 | -445 | ||||||||
|
Proceeds from sale of own shares |
40 | 40 | |||||||||
| Total comprehensive income for the period | 143 | 823 | 966 | 2 | 968 | ||||||
|
Total equity 31.12.2011 |
9.898 | 520 | 5.316 | 1.896 | 462 | -1.378 | 1.149 | 17.863 | 242 | 18.104 | |
a) Share capital
b) Premium fund
c) Reserve fund
d) Unrestricted equity reserve
e) Translation difference
f) Own shares
g) Retained earnings
h) Non-controlling interests
|
CONSOLIDATED CASH FLOW STATEMENT (Unaudited) |
1.1.- 31.12.2011 |
1.1.- 31.12.2010 |
| (MEUR) | ||
| Cash flow from operations | 6.0 | 2.8 |
| Cash flow from investments, net | 0.9 | -0.8 |
| Total cash flow from financing | -6.3 | -1.8 |
| Share issue | 3.5 | |
| Sale of own shares | 0.3 | |
| Dividends | -0,5 | |
| Increase in credit capital | ||
| Decrease in credit capital | -5.6 | -5.4 |
| Other financial items | -0.2 | -0.3 |
| Change in liquid assets | 0.7 | 0.2 |
| Liquid assets at the beginning of period | 1.9 | 1.7 |
| Liquid assets at the end of period | 2.6 | 1.9 |
NOTES TO THE FINANCIAL STATEMENT RELEASE
Calculation methods
This financial statements release has been prepared in line with standard IAS 34, Interim Financial Reporting. In preparing this financial statement release, Honkarakenne has observed the same preparation principles as in its annual financial statements of 2010, yet so that Honkarakenne has applied the new and changed standards and interpretations introduced in 2011. The new revised standards or interpretations effective as of 1 January 2011 have no bearing on the figures presented for the report period. The figures have not been examined by the auditor.
According to the management’s view, the implementation of the above-mentioned standards and interpretations has not had an impact on the figures presented concerning the report period.
Honka Management Oy, established previous year and owned by the top management of the company, has been included in the consolidated financial statements due to the terms and conditions of the shareholder agreement concluded between it and Honkarakenne Oyj.
Honkarakenne has one operating segment, the manufacture, sales and marketing of log houses, under the Honka brand. Geographically, the sales of the Group divide as follows: Finland, Central Europe, Far East, and other countries. The internal reporting of the management is in line with IFRS reporting. For this reason, separate reconciliations are not presented.
The figures have not been examined by the auditor.
| TANGIBLE ASSETS | |
| (Unaudited) | Tangible |
| (MEUR) | assets |
| Acquisition cost 1.1.2011 | 67.0 |
| Translation difference (+/-) | 0.2 |
| Increase | 0.8 |
| Decrease | -1.4 |
| Transfers between balance sheet items | -0.0 |
| Acquisition cost 31.12.2011 | 66.7 |
| Accumulated depreciation 1.1.2011 | -45.4 |
| Translation difference (+/-) | -0.2 |
| Disposals and reclassifications | 0.8 |
| Depreciation for the period | -2.8 |
| Accumulated depreciation 31.12.2011 | -47.7 |
| Book value 1.1.2011 | 21.6 |
| Book value 31.12.2011 | 19.0 |
Own shares
During the second quarter, by virtue of authorization granted by the AGM, the Board of Directors of the company decided to organize a rights issue of 17,250 shares. In the rights issue, in an exception to the shareholders’ subscription privilege, Honkarakenne relinquished 17,250 Honkarakenne B shares for the subscription of Honka Management at a price of EUR 5.26 per share. As a result of the issue, management group members now own 5.5% of Honkarakenne’s shares and 2.63% of the company's voting rights. Because Honka Management Oy has been consolidated into the figures for the Honkarakenne Group, the purchase cost for these shares has been entered in the consolidated accounts to reduce the Group’s shareholders’ equity.
At the end of the report period, the Group held 364,385 of its Honkarakenne B shares with a total purchase price of EUR 1,377.609,57. These shares represent 7.05% of the company's capital stock and 3.35% of all votes.
| CONTINGENT LIABILITIES | ||
| (Unaudited) | 31.12.2011 | 31.12.2010 |
| MEUR | ||
| For own loans | ||
| - Mortgages | 25.7 | 25.7 |
| - Pledged shares | ||
| - Other guarantees | 1.8 | 2.3 |
| For others | ||
| - guarantees | 0.2 | 0.7 |
| Leasing liabilities | 0.4 | 0.3 |
| Rent liabilities | ||
| Nominal values of forward exchange contracts | 3.4 | 2.8 |
| Derivative contracts | 0.4 | 0.3 |
Events in the circle of acquaintances
The Group’s circle of acquaintances consists of subsidiaries, associated companies and the company's management. The management included in the circle of acquaintances comprises the Board of Directors, CEO and the company's managing committee.
Honka Management Oy, owned by the top management of the company, has received from Honkarakenne Oyj a long-term loan of EUR 0.9 million.
| KEY INDICATORS | 1-12 | 1-12 | |
| (Unaudited) | 2011 | 2010 | |
| Earnings/share (EPS) | eur | 0.17 | 0.23 |
| Return on equity | % | 4.6 | 7.3 |
| Equity ratio | % | 52.6 | 42.4 |
| Shareholders equity/share | eur | 3.7 | 3.6 |
| Net debt | MEUR | 6.1 | 12.8 |
| Gearing | % | 34.5 | 73.1 |
| Gross investments | MEUR | 1.0 | 0.5 |
| % of net sales | 1.8 | 0.8 | |
| Order book | MEUR | 13.6 | 18.0 |
| Average number of personnel | Staff | 123 | 135 |
| Workers | 142 | 156 | |
| Total | 265 | 291 | |
Due to the issue of new shares, the historical indicators by share have been corrected using the following formula: average number of shares x 1.01.
|
CALCULATION OF KEY INDICATORS |
||
| Profit for the period attributable to equity holders of parent | ||
| Earnings/share (EPS) | ----------------------------------------- | |
| Average number of outstanding shares | ||
| Profit before taxes – taxes | ||
| Return on equity % | ----------------------------------------- | |
| Total equity, average | ||
| Total equity | ||
| Equity ratio, % | ----------------------------------------- | |
| Balance sheet total - advances received | ||
| Net debt | Interest-bearing debt - cash and cash equivalents | |
| Interest-bearing debt - cash and cash equivalents | ||
| Gearing, % | ----------------------------------------- | |
| Total equity | ||
| Shareholders’ equity | ||
| Shareholders equity/share | ----------------------------------------- | |
| Number of shares outstanding at end of period | ||