Elektrobit Group Oyj - ELEKTROBIT GROUP PLC'S INTERIM REPORT JANUARY TO SEPTEMBER 2004
November 03, 2004
ELEKTROBIT GROUP PLC'S INTERIM REPORT JANUARY TO SEPTEMBER 2004
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, competence development and 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.
The third quarter of 2004 was exceptionally strong. Both net sales and operating profit outperformed the targets that had been set. The strong quarter will not affect the setting of the Company's long-term objectives, and the Company has not made any upward adjustments to its long-term growth and profitability targets. Net sales in the third quarter amounted to 57.8 million euro (36.0 million euro) and the operating profit stood at 11.9 million euro (5.1 million euro).
Comparisons between the figures of the third quarter of 2004 and the figures for the corresponding period a year earlier:
- Net sales amounted to 57.8 million euro (36.0 million euro; representing an increase of 21.8 million euro or 60.4%). Net sales of the Testing, Contract R&D and Automation Solutions business units increased from the previous year's level. The level of net sales exceeded the targets set, particularly thanks to strong growth in the Testing business unit. The strong growth of the Testing business unit is in part a result of a shift of business volume from the fourth quarter to the third quarter. 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 third-quarter net sales of these companies amounted to 4.4 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 11.9 million euro (5.1 million euro; an increase of 6.8 million euro or 134.9%), which outperformed set targets. Increased profitability was particularly affected by an increased share of the product business of total net sales, the strong period of the Testing business and an increased level of profitability in the Automation Solutions business.
Comparisons between the period from January to September 2004 and the figures for the corresponding period a year earlier:
- Net sales amounted to 142.5 million euro (105.3 million euro; an increase of 37.1 million euro or 35.3%). The net sales of the Contract R&D business unit 60.8 million euro (41.9 million euro; an increase of 18.9 million euro or 45.1%) and the net sales of the Testing business unit 62.4 million euro (46.6 million euro; an increase of 15.8 million euro or 33.9%) and the net sales of the Automation Solutions business unit 19.3 million euro (16.8 million euro; an increase of 2.4 million euro or 14.5%) increased from the level of the corresponding period in 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. 11.8 million euro of the net sales of these companies was booked in for the period under review, which, in accordance with earlier statements, this has not had any significant effect on the operating profit.
- Operating profit amounted to 22.8 million euro, including non-recurring income due to a change in the valuation of inventories of 0.7 million euro (10.3 million euro; an increase of 12.5 million euro or 122.3%; excluding the change in the valuation of inventories, the increase is 11.8 million euro or 115.4%).
- The equity ratio was 60.0% (57.7%).
- Cash flow from operating activities amounted to 26.9 million euro (8.6 million euro).
- During the period under review the company acquired a majority shareholding in 3SOFT GmbH (80%) and the entire stock of CIM-Tech Oy, as well as entered into a preliminary agreement stating that Elektrobit Group will acquire approximately 80% of the stock of PJ Microwave Ltd, turning the latter into a wholly-owned subsidiary of Elektrobit Group. 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.
