Enfo Oyj's interim report 1/2012 (1 January-31 March 2012)
Comunicato Precedente
Comunicato Successivo
Key points of the interim report
· Turnover in January-March increased by 5.9% and stood at EUR 37.1 million (35.0).
· Operating profit (EBIT) in January-March amounted to EUR 2.5 million (1.6).
· Profit before taxes in January-March amounted to EUR 2.1 million (1.4).
· Earnings per share in January-March were EUR 2.06 (1.79).
· The twelve-month return on investment was 12.6% (9.3).
· In January-March, Enfo Group employed an average of 766 people (706). At the end of March, the Group employed a total of 763 people (715).
· Cash from operating activities in January-March stood at EUR 0.7 million (-0.7).
· The company forecasts its turnover and operating profit to grow further during the second quarter of 2012.
Market
The general uncertainty over the future financial development continues. This affects the behaviour of customer companies within the company's main market area in Finland and Sweden.
With regard to last year, the company estimates that the IT service market growth was 2% - 3% in Finland and Sweden. In 2012, the company estimates that the IT service market will grow at the same pace.
Group structure
Enfo Oyj is the parent company of Enfo Group. Enfo's business operations are divided into two separately reported lines of business - IT Services, and Information Logistics Services.
Business development
Demand for Enfo IT Services has made good progress on the Finnish IT market, showing steady growth during the first quarter. Customers have expanded their service acquisitions from Enfo. Destia Oy, a service company in infrastructure and construction, signed a significant extension agreement for ICT services with Enfo. The total value of the three- year agreement is more than EUR 6 million. Enfo has also extended its outsourcing agreement with Citycon Oyj, a property investment company, and PaloDEx Group Oy, a company specialising in dental X-ray imaging equipment. In Industry Verticals, the first quarter was better than expected, with Enfo's Unified Communications solutions raising positive interest within the market.
Demand for Consulting Services remained at a good level in Sweden. Infrastructure, system integration and identity management projects were sought-after during the first three months. Of the current customers, Volvo Car Corporation, Getinge AB, a company specialising in medical products, and Skandinaviska Enskilda Banken AB signed new consulting project agreements with Enfo. In addition, the European Spallation Source (ESS) research centre, as a new customer, selected Enfo as its partner in system integration. In outsourcing operations in Sweden, measures have been launched for setting up common practices through the significant Relacom transaction.
The operations of Information Logistics Services have developed steadily, showing stable demand for services during the reporting period. The operational reorganisation measures carried out at the end of last year succeeded as planned, and the profitability of business operations has been strengthened. Customers have shown an increasing demand for consultation over information logistics and invoicing as part of their service packages.
Turnover
Enfo Group's turnover increased by 5.9% in January-March and stood at EUR 37.1 million (35.0). The increase in consolidated turnover was affected by the strengthened demand for Consulting Services and the acquisition of subsidiaries in Sweden. The development of turnover was decreased by the slow progress of hardware sales.
Development of turnover by reporting segment
|
EUR million |
1-3/2012 |
1-3/2011 |
1-12/2011 |
|
IT Services |
28.9 |
27.0 |
109.9 |
|
Information Logistics Services |
8.8 |
8.7 |
35.2 |
Turnover of the IT Services unit increased by 7.0% in January-March, amounting to EUR 28.9 million (27.0). The positive development of turnover was sped up by the good demand for Consulting Services and the acquisition of subsidiaries in Sweden. The growth also shows the recovery of the Finnish IT service market.
Turnover of the Information Logistics Services unit increased in January-March to EUR 8.8 million (8.7), representing growth of 1.0%. The slow development of turnover resulted from the tough price competition in the information logistics market.
Profitability
Enfo Group's profitability improved in January-March with operating profit totalling EUR 2.5 million, comprising 6.8% of turnover (EUR 1.6 million and 4.5%). The increase in profitability was affected by last year's efficiency measures in Finnish operations and the good development of demand for IT services in Sweden.
The Group's profit before taxes in January-March stood at EUR 2.1 million (1.4), comprising 5.7% of turnover (4.1%). The Group's net financing costs in January-March stood at EUR 0.4 million (0.2). The result in January-March was EUR 1.6 million (1.0), comprising 4.2% of turnover (3.0%). Earnings per share in January-March were EUR 2.06 (1.79).
Development of operating profit by reporting segment
|
EUR million |
1-3/2012 |
1-3/2011 |
1-12/2011 |
|
IT Services |
1.4 |
0.5 |
2.3 |
|
Information Logistics Services |
1.1 |
1.2 |
5.0 |
The increase in operating profit within IT Services shows the recovery of the Finnish IT outsourcing operations thanks to last year's reorganisation measures. The result was also strengthened by the positive development of Industry Verticals and the success of Swedish Consulting Services on the market. The operating profit was strained by development costs arising from outsourcing services in Sweden.
The operating profit of Information Logistics Services was at the previous year's level. The operating profit was affected by the success of the efficiency measures performed.
Financing and investments
Enfo's net financing investments in January-March stood at EUR 0.7 million (2.0). Investments mainly consisted of the acquisition of data centre hardware. The hardware was financed through financial leasing agreements.
The company's equity ratio was 43.3% (43.5%) at the end of the period. Interest-bearing net liabilities at the end of March amounted to EUR 29.8 million (26.3), and net gearing was 63.3% (61.0).
Personnel
In January-March, Enfo Group employed an average of 766 people (706). At the end of March, the Group employed a total of 763 people (715).
Enfo's IT Services unit employed an average of 679 people (617) in January-March, while the Information Logistics Services unit employed an average of 71 people (72). Of Enfo's personnel, 328 (367) were employed in Finland and 438 (339) in Sweden during the review period.
On 2 February 2012, Enfo Oyj was selected for the second time as one of the best places to work in Finland in the survey organised by Great Place to Work Institute Finland. Enfo came in 25th in the general series. In Sweden, Enfo reached third place in the major corporations category in the Great Place to Work list. This was Enfo Sweden's fourth time in the top ten.
Board of Directors and management
Enfo Oyj's Chairman of the Board of Directors is Tapio Hakakari, Managing Director of Webstor Oy. The other members of the Board of Directors are Hannu Isotalo, Chairman of the Board of Directors of Lujatalo Oy; Ossi Saksman, Chairman of the Board of Directors of Osuuskunta KPY; Mammu Kaario, Investment Director at Korona Invest Oy; and Timo Kärkkäinen, Senior Portfolio Manager of Ilmarinen Mutual Pension Insurance Company.
Enfo Group's Executive Management Team members were Managing Director Arto Herranen, Finance Director Tero Kosunen (Finance and Communications), HR Director Maria Lundell (HR), Director Osmo Wilska (Outsourcing Services), Director Nina Annila (Industry Verticals), Director Johan de Verdier (Consulting Services),and Director Tero Saksman (Information Logistics Services).
Annual General Meeting 2012
On 22 March 2012, Enfo Oyj's Annual General Meeting decided that, in accordance with the Board of Directors' proposal, a dividend of EUR 1.70 per each issued share be paid on the basis of the confirmed balance sheet for the financial period ending on 31 December 2011, for a total of EUR 999,399.40. The dividend will be paid on 31 May 2012.
The Annual General Meeting authorised the Board of Directors, in accordance with chapter 6, section 13, paragraph 2 of the Companies Act, to decide on an additional dividend of a maximum of EUR 1.90 per share within the limitations of the company's capital adequacy and operating result. The authorisation is valid until the beginning of the next Annual General Meeting.
According to the proposal of the Nomination Committee, the current members of the Board of Directors - Tapio Hakakari, Hannu Isotalo, Mammu Kaario, Timo Kärkkäinen and Ossi Saksman - were elected as members of Enfo Oyj's Board of Directors. At the organisation meeting held after the Annual General Meeting, the Board of Directors elected Tapio Hakakari as the Chairman and Hannu Isotalo as the Deputy Chairman.
The Annual General Meeting also authorised Enfo Oyj's Board of Directors to issue new shares through a rights issue. The authorisation concerns the issuance of a maximum of 113,500 shares. Shares can be conveyed in order to obtain assets required in connection with a company or business acquisition. The Board of Directors decides on the subscription price, as well as other terms and conditions of the share issue.
In addition, the AGM authorised the Board of Directors to decide on conveying new or treasury shares through a directed rights issue. The authorisation applies to the assignation and/or issue of no more than 10,000 shares. Shares can also be assigned and/or issued as consideration in financing or carrying out any business acquisitions, or as part of the company's salary and incentive scheme for the company's personnel and the personnel fund. The Board of Directors decides on the subscription price, as well as other terms and conditions of the share issue.
The Annual General Meeting authorised Enfo Oyj's Board of Directors to decide upon the acquisition of the company's shares using the company's unrestricted equity. The authorisation applies to the acquisition of a maximum of 10,000 shares at a minimum share price of EUR 1.00 and a maximum share price of EUR 120. The shares can be purchased for use as consideration when the company acquires assets for its business operations, for use as consideration in any business acquisitions, for use as part of the company's salary or incentive system, or in order to fulfil the company's share repurchase commitments, and for cancellation. The Board of Directors can decide upon the acquisition price and other acquisition terms. The authorisations are valid until the end of the next Annual General Meeting.
Shares
On 31 March 2012, Enfo Oyj had a total of 589,120 shares. At the end of March, Enfo had a total of 106 shareholders. The company has one series of shares. Enfo owned 1,238 of its treasury shares at the end of March 2012.
At the end of March 2012, the company's ten largest owners were Osuuskunta KPY, Enfo Oyj's Personnel Fund HR, Pohjola Insurance Ltd, Ilmarinen Mutual Pension Insurance Company, Suomi Mutual Life Assurance Company, Einari Vidgrén Oy, Keskisuomalainen Oyj, Pohjois-Savo Cooperative Bank, Hannu Isotalo Oy and Savon Voima Oyj. Osuuskunta KPY's share of ownership is 81.9%.
Forecast for likely future development
The company estimates its turnover and operating profit to grow further during the second quarter of 2012.
Risks and uncertainties
Short-term risks and uncertainties are associated with the maintenance of competitive prices on the highly competitive IT service market.
The new strategic choices of the largest Nordic companies within the industry may have an impact on the company's market position in the long-term.
Timetable for financial reporting in 2012
The 2012 Q2 interim report will be published on 30 August 2012, and the Q3 interim report on 24 October 2012.
Tables
Tables available: www.enfo.se
For additional information, please contact:
Arto Herranen, Managing Director, tel. +358 44 7193 000
Enfo is a Nordic IT service company which provides companies and organisations with easy-to-use IT services. In its services, Enfo utilises more than 45 years of experience in IT and the competence of its expert IT professionals. Approximately 800 top experts ensure that Enfo's customers get the best out of their IT. Enfo's annual turnover is more than EUR 140 million. For further information about Enfo, please visit www.enfo.fi and www.enfo.se.
Distribution: main media and www.enfo.fi
Enfo Oyj
Business ID: 2081212-9
Visiting address: Kiveläntie 4, Kuopio, Finland
Postal address: P.O. Box 1582, FI-70461 Kuopio, Finland
Billing address: P.O. Box 5005, FI-70701 Kuopio, Finland
Switchboard: +358 20 54321
Fax: +358 20 543 2355
E-mail: [email protected]
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