Elektrobit Group Oyj - ELEKTROBIT GROUP PLC'S INTERIM REPORT JANUARY TO JUNE 2004
August 04, 2004
ELEKTROBIT GROUP PLC'S INTERIM REPORT JANUARY TO JUNE 2004
(unaudited)
Elektrobit Group's primary objective for 2004 is to ensure long-term development and continuity. During the reporting period the Group added resources to sales, marketing and competence development, as well as to research and development in accordance with its established targets. In addition to this the Group aims for a moderate increase in net sales and profitability in 2004.
Net sales for the second quarter of 2004 amounted to 48.0 million euro (33.9 million euro). Operating profit for the second quarter of 2004 stood at 6.4 million euro, which included 0.3 million euro of non-recurring profit improvement due to inventory valuation principles (1.6 million euro, which was burdened by approximately 1.5 million euro of non-recurring expenses and credit losses).
Comparisons between the figures of the second quarter of 2004 and the figures for the corresponding period a year earlier:
- Net sales amounted to 48.0 million euro (33.9 million euro; representing an increase of 14.1 million euro or 41.6%). Net sales of the Testing, Contract R&D and Automation Solutions business units increased from the previous year's level. Net sales in comparison with the previous year were also improved by the consolidation of 3SOFT GmbH and the CIM Technologies Group with Elektrobit Group as of March 2004. The second-quarter net sales of these companies amounted to 5.8 million euro, which in accordance with earlier statements has not had any significant effect on the level of the consolidated operating profit.
- Operating profit amounted to 6.4 million euro, including non-recurring income due to a change in the valuation of inventories of 0.3 million euro (1.6 million euro, representing an increase of 4.7 million euro; excluding the change in the valuation of inventories, the increase is 4.4 million euro).
Comparisons between the period from January to June 2004 and the figures for the corresponding period a year earlier:
- Net sales amounted to 84.7 million euro (69.3 million euro; representing an increase of 15.4 million euro or 22.2%). The net sales of the Contract R&D business unit 41.7 million euro (29.7 million euro) and the net sales of the Testing business unit 33.2 million euro (28.8 million euro) increased from the level of the first half of 2003 and the net sales of the Automation Solutions business unit 9.8 million euro (10.8 million euro) decreased from the level of the first half of 2003. Of the acquisitions completed in the first quarter, 3SOFT GmbH has been consolidated with Elektrobit Group's figures since March 8, 2004, and CIM-Technologies Group has been consolidated since March 1, 2004. 7.4 million euro of the net sales of these companies was booked in for the period under review, and, in accordance with earlier statements, this has not had any significant effect on the operating profit.
- Operating profit amounted to 10.9 million euro, including non-recurring income due to a change in the valuation of inventories of 0.7 million euro (5.2 million euro, representing an increase of 5.7 million euro or 110.0%; excluding the change in the valuation of inventories, the increase is 5.0 million euro or 96.2%).
- The equity ratio was 59.2% (56.6%).
- Cash flow from operating activities amounted to 17.7 million euro (10.8 million euro).
- During the period under review the Group acquired a majority of 3SOFT GmbH (80%) and the entire stock of CIM-Tech Oy. In accordance with its strategy, Elektrobit Group aims to outperform the average growth of the telecommunications industry, for example by expanding its clientele in both telecommunications and other industries.
