Harju Elekter
Financial results, 1-12/2014

DGAP-News: Harju Elekter

2015-02-25 / 10:08

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Estonia, 2015-02-25 10:08 CET (GLOBE NEWSWIRE) -- 
2014 was an eventful and successful year for the Harju Elekter Group. Despite
the fact that the economic environment and the markets were unstable and
volatile, we were able to reach the goals we set for ourselves and increasing
Group's sales revenue and profit. 

In July 2014, Group's subsidiary Satmatic Oy purchased all shares of Finland's
largest pre-fabricated substation producer Finnkumu Oy, whose financial
statements of the second half of the year comprises Group's Q4 and 1-12/2014
interim report since 1 July 2014. In July 2014, Group sold its 34% holding in
AS Draka Keila Cables to the core investor Prysmian Group. Affiliated company's
profit is consolidated by the equity method till 30.6.2014. Both of these
events had an impact on both the Group's accounting quarter as well as
12-months consolidated financial results. 

                       October-December  change  January-December  change
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(thousand euros)          2014     2013       %     2014     2013       %
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Revenue                 14,166   12,288    15.3   50,606   48,288     4.8
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Gross profit             2,222    2,131     4.3    9,081    8,458     7.4
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EBITDA                     657      626     5.0    3,741    3,269    14.4
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EBIT                       282      214    31.8    2,228    1,743    27.8
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Profit for the period      253      298   -15.1    9,778    5,173    89.0
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The Group's revenue increased in the reporting quarter by 15.3%, compared to
the Q4 2013 and amounted to 14.2 million euros. Consolidated sales revenue for
the reporting year reached 50.6 million euros, having increased 4.8% in
relation to the comparable period. 70% of the Group's products and services
were sold outside Estonia. 

90.5% of sales revenue was earned from the Production segment, and Real Estate
together with Unallocated Activities contributed 9.5% of the consolidated sales
volume. The Manufacturing segment is engaged in the manufacturing and sales of
electricity distribution and control equipment and in related activities. The
revenue from the sales of electrical equipment comprised 93.6% of the sales
volume for Manufacturing and 84.7% of the consolidated revenue. The sale of
electrical equipment grew by 21.8% to 12.4 million euros in Q4, and 7.3% to
42.9 million euros in the 12 month period. 

As at the balance date on 31 December, there were 483 people working in the
Group, which were 32 employees more than a year before. With the purchase of
Finnkumu Oy, the Group gained 18 employees. In Q4 2014, the average 465 people
worked in the Group - on the average by 29 persons more than in the reference
period. During 12 months, the average number of employees decreased by 4 to
459. 

Labour costs increased in Q4 by 9.6% to 3.2 million euros and in 12-months
period by 6.0% to 12.0 million euros. The rate of labour costs to revenue
formed 23.8% (2013: 23.5%). In the Q4, employee wages and salaries totalled
2,503 (Q4 2013: 2,247) thousand euros and during the 12-months period 9,194
(2013: 8,645) thousand euros. The average wages per employee per month amounted
to 1,669 (2013: 1,584) euros. 

Cost of sales increased 17.6% in the reporting quarter and 4.3% in 12-months
period, at a rate slightly higher the sales revenue by 2.2 percentage points in
reporting quarter and below by 0.5 percentage points in 12-months. Overall, the
growth rate of operating expenses lagged behind that of sales revenue, having
increased in the reporting quarter by 15.1%, to 14.9 million euros, in the
12-month period by 3.8%, to 48.3 million euros. 

Accordingly, the Group's operating profit in the reporting quarter was 0.3 (Q4
2013: 0.2) million euros and EBITDA 0.7 (Q4 2013: 0.6) million euros. Return of
sales for the accounting quarter was 2.0% (Q4 2013: 1.7%) and return of sales
before depreciation 4.6% being 0.5 per cent point lower compering to the same
period a year before. During 12-months period, EBITDA as well EBIT increased
both by 0.5 million euros to 3.7 million and to 2.2 million euros,
respectively. Return of sales before depreciation for the accounting year
improved by 0.6 per cent point and was 7.4% and return of sales by 0.8 per cent
point being 4.4%. 

PKC Group Oyj paid dividends to the shareholders 0.70 euros per share. Dividend
income from the shares was 907 (2013: 948) thousand euros. In the second
quarter, also 200,000 shares of PKC Group Oyj were sold and the financial
income from selling the shares was 4.6 (2013: 1.7) million euros. The profit
from financial investment totalled 5.6 million euros in the 12-months period
(2013: 2.6 million euros). During the 12 months, finance income amounted to 5.7
(2013: 2.6) million euros. 

In the Q3 2014, the Group sold their 34% holding in AS Draka Keila Cables and
the financial income from selling the shares was 1.8 million euros. In the
accounting period, the Group consolidated from the associated company a profit
of 0.8 (2013: 1.3) million euros. 

The consolidated net profit of the reporting year was 9.8 million euros,
increasing approximately 4.6 million euros compared to the previous period. 
The share of the owners of the Company was 9.7 million euros. EPS in 12 months
was 0.56 (2013: 0.30) euros. 

Andres Allikmäe
Managing director/ CEO
Tel +372 674 7400

For more information: Internal report 1-12/2014



AS HARJU ELEKTER                                                               
BALANCE SHEET, 31.12.2014                                                      
Consolidated, unaudited                                                        
                                                                               
Group                                                                          
EUR'000                                                                        
ASSETS                                   31.12.14  31.12.13                    
Cash and cash equivalents                   9 984     4 102                    
Available-for-sale financial assets            35         0                    
Trade receivables and other receivables     6 484     5 699                    
Prepayments                                   455       256                    
Prepaid income tax                             79        41                    
Inventories                                 8 104     5 801                    
TOTAL CURRENT ASSETS                       25 141    15 899                    
Deferred income tax asset                       0         7                    
Investments in associates                       0     3 598                    
Other long-term financial investments      19 145    31 339                    
Investment property                        12 109    11 663                    
Property, plant and equipment               7 968     8 129                    
Intangible assets                           5 429       436                    
Total non-current assets                   44 651    55 172                    
TOTAL ASSETS                               69 792    71 071                    
LIABILITIES AND OWNERS' EQUITY                                                 
Interest-bearing loans and borrowings         278       654                    
Trade payables and other payables           6 989     4 437                    
Tax liabilities                             1 072       969                    
Income tax liabilities                         12        15                    
Short-term provision                           39        36                    
TOTAL CURRENT LIABILITIES                   8 390     6 111                    
NON-CURRENT LIABILITIES                     1 560     1 141                    
TOTAL LIABILITIES                           9 950     7 252                    
Share capital                              12 180    12 180                    
Share premium                                 240       240                    
Restricted reserves                        19 393    31 424                    
Retained earnings                          26 664    18 635                    
TOTAL OWNERS' EQUITY                       58 477    62 479                    
Non-controlling interests                   1 365     1 340                    
TOTAL EQUITY                               59 842    63 819                    
TOT.LIABILIT.AND OWNERS' EQUITY            69 792    71 071                    
                                                                               
                                                                               
INCOME STATEMENT,  1-12/2014                                                   
Consolidated,unaudited                                                         
                                                                               
EUR'000                                                                        
GROUP                                     Q4 2014   Q4 2013  M12 2014  M12 2013
                                                                               
NET SALES                                  14 166    12 288    50 606    48 288
Cost of goods sold                        -11 945   -10 157   -41 525   -39 830
Gross profit                                2 222     2 131     9 081     8 458
Marketing expenses                           -745      -737    -2 720    -2 627
Administrative expenses                    -1 176    -1 169    -4 042    -4 067
Other revenue                                  11         8        27        38
Other expenses                                -30       -19      -118       -59
Operating profit                              282       214     2 228     1 743
Finance income                                 34         2     5 661     2 648
Finance costs                                 -12       -16       -38       -46
Income from subsidiaries                        0       153     2 602     1 303
Profit from normal operations                 304       353    10 453     5 648
Corporate Income tax                          -51       -55      -675      -475
Profit after taxes, incl                      253       298     9 778     5 173
Net profit for the year                       232       327     9 697     5 162
Non-controlling interest                       21       -29        81        11
Basic earnings per share  (EUR)              0,01      0,02      0,56       0,3
Diluted earnings per share  (EUR)            0,01      0,02      0,56       0,3

Karin Padjus
FO
+372 674 7403
News Source: NASDAQ OMX



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2015-02-25 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English        
Company:     Harju Elekter  
 
 
             Estonia        
ISIN:        EE3100004250   
 
 
End of News    DGAP News-Service  
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326715 2015-02-25