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ENEDO PLC Half yr monetary report August 12th, 2021 at 9.45 a.m.
ENEDO PLC PUBLISHES HALF YEAR FINANCIAL REPORT JANUARY 1 – JUNE 30, 2021 AND REMOVES FINANCIAL ESTIMATE
January – June 2021 briefly, Persevering with operations
– Internet gross sales EUR 18,1 million (EUR 19,7 million)
– Working revenue EUR -2,9 million (EUR -1,9 million)
– Adjusted working revenue EUR -2,Three million (EUR -1,7 million)
– EBITDA EUR -1,2 million (EUR -0,1 million)
– Adjusted EBITDA EUR -0,6 million (EUR 0,1 million)
– Revenue/loss for the interval, persevering with operations EUR -0,Four million (EUR -2,Four million)*
– Earnings per share EUR -0,01 (EUR -0,28)
The figures within the launch are offered from persevering with operations until in any other case famous.
1-6/2021 |
1-6/20 |
1-12/20 |
|
Key indicators, EUR million |
6mo |
6mo |
12mo |
Persevering with operations: |
|||
Internet Gross sales |
18,1 |
19,7 |
38,5 |
Led Drivers |
4,5 |
4,2 |
8,7 |
Energy Provides |
10,6 |
12,7 |
24,1 |
Energy Programs |
3,0 |
2,7 |
5,7 |
Adjusted EBITDA |
-0,6 |
0,1 |
-0,4 |
EBITDA |
-1,2 |
-0,1 |
-0,8 |
Adjusted working revenue/loss |
-2,3 |
-1,7 |
-3,9 |
Working revenue/loss |
-2,9 |
-1,9 |
-4,3 |
Revenue/loss earlier than taxes* |
-0,4 |
-2,4 |
-5,4 |
Revenue/loss for the interval, persevering with operations* |
-0,4 |
-2,4 |
-6,2 |
Earnings per share, persevering with operations, EUR* |
-0,01 |
-0,28 |
-0,74 |
Persevering with and discontinued operations: |
|||
Earnings per share EUR* |
-0,01 |
-0,28 |
-0,70 |
Solvency ratio, % |
27,1 |
4,1 |
-7,4 |
Internet Gearing, % |
58,5 |
1182 |
|
Money movement from working actions |
-1,8 |
-1,9 |
-2,3 |
*1-6/2021 figures embody gross EUR 3,Three million profit from mortgage cancellation as a part of the finished mortgage association and associated transaction bills EUR 0,Four million. Internet influence EUR 2,9 million. |
|||
Key indicators Half yr, EUR million |
H1/2021 |
H2/2020 |
H1/2020 |
Persevering with operations: |
|||
Internet Gross sales |
18,1 |
18,8 |
19,7 |
Adjusted EBITDA |
-0,6 |
-0,5 |
0,1 |
EBITDA |
-1,2 |
-0,7 |
-0,1 |
Adjusted working revenue/loss |
-2,3 |
-2,2 |
-1,7 |
Working revenue/loss |
-2,9 |
-2,4 |
-1,9 |
1-6/21 |
1-6/20 |
1–12/20 |
|
ADJUSTED OPERATING PROFIT/LOSS, EUR million |
6mo |
6mo |
12mo |
Working revenue/loss |
-2,9 |
-1,9 |
-4,3 |
Changes in working revenue/loss |
|||
Resctructuring prices associated to personnel |
0,3 |
0,0 |
|
Manufacturing re-organisation |
0,1 |
0,2 |
|
Enedo planning associated bills |
0,1 |
0,2 |
|
Provision associated to a declare |
0,2 |
||
Changes in working revenue/loss Complete |
0,6 |
0,2 |
0,4 |
Adjusted working revenue/loss Complete |
-2,3 |
-1,7 |
-3,9 |
1-6/21 |
1-6/20 |
1–12/20 |
|
ADJUSTED EBITDA, EUR million |
6mo |
6mo |
12mo |
EBITDA |
-1,2 |
-0,1 |
-0,8 |
Changes in EBITDA |
|||
Resctructuring prices associated to personnel |
0,3 |
0,0 |
|
Manufacturing re-organisation |
0,1 |
0,2 |
|
Enedo planning associated bills |
0,1 |
0,2 |
|
Provision associated to a declare |
0,2 |
||
Changes in EBITDA Complete |
0,6 |
0,2 |
0,4 |
Adjusted EBITDA Complete |
-0,6 |
0,1 |
-0,4 |
Estimate of economic growth in 2021
Previous estimate
The corporate estimates web gross sales from persevering with operations to exceed EUR 40 million in 2021. EBITDA (adjusted for objects affecting comparability) for 2021 is estimated to be optimistic and working revenue (adjusted for objects affecting comparability) to enhance from 2020 however to stay damaging.
New estimate
The corporate has determined to retract the earlier estimate and to not give a brand new estimate for 2021 monetary growth, as a result of uncertainties linked to the anticipated turnaround actions and the evolution of the Covid-19 state of affairs.
Mikael Fryklund, Enedo President and CEO
Enedo’s first half web gross sales of EUR 18,1 million fell EUR 1,6 million behind final yr and our loss for the interval was additionally worse than final yr by EUR 0,9 million at EUR -3,Three million excluding the online influence of the mortgage cancellation of EUR 2,9 million. Though the efficiency within the first half was not a shock for us, the outcome will not be passable, and we have to speed up our value discount measures to achieve a sustainable turn-around. We see that the restoration from the Covid-19 has already begun in some areas of our enterprise, nevertheless there’s nonetheless an extended strategy to go earlier than enterprise returns to regular. We have to safe that our enterprise is worthwhile even with the present volumes and we gather the advantages of elevated quantity as elevated earnings to our backside line.
In reference to the share points accomplished in April, we introduced a turnaround program geared toward a complete of roughly EUR 4,Zero million everlasting financial savings. There’s a requirement to hurry up and in addition simplify a few of the plans within the turn-around. Flip-around requires clear tasks and I’ve divided our companies into three accountable models that are Italy, Finland and Operations ranging from starting of July. Italy is headed by Carlo Rosati, Finland by Jussi Vanhanen and Operations by Giampiero Tasselli situated in Tunis. In reference to this modification, we additionally modified how we handle our Tunisia plant. We moved Italy operations administration to Tunisia and took one large step in making Tunisia totally unbiased and glorious EMS manufacturing plant. We comply with our turn-around actions with the above enterprise division respectively. The total up to date turn-around plan remains to be in progress. Nevertheless it’s clear {that a} vital a part of the associated fee discount measures will influence our mounted prices base and lowering it in accelerated pace.
The Group’s new and unified ERP system went stay in finance perform starting of Could. The brand new system will allow value financial savings in monetary administration, the consequences of which is able to begin to be seen within the second half of the yr. Work on the implementation of the opposite areas of the brand new ERP system will proceed nevertheless the highest precedence is value discount and full ERP completion will comply with.
On April 7, 2021, we introduced the ultimate results of the rights and directed share subject with gross proceeds of EUR 12 million. Mortgage association was accomplished after the brand new shares had been registered on ninth of April 2021. In consequence Enedo paid again EUR 5,Three million of loans and EUR 3,Three million of the loans had been cancelled. The share points, along with the mortgage association have improved the corporate’s steadiness sheet place.
The Covid-19 state of affairs and the ensuing progressing restoration of our buyer’s enterprise actions proceed to ivolve vital dangers which have impact on Enedo’s enterprise growth within the coming months. There may be additionally a scarcity of essential elements available in the market impacting lead-times and thereby enterprise progress. Nevertheless, I imagine that because the Covid-19 state of affairs slowly improves, there’s elevated demand for our merchandise. Decided execution of anticipated turnaround actions will enhance our profitability and ultimately make us worthwhile. Additional communication on turnaround actions and anticipated influence might be made individually.
January–June web gross sales, working revenue and adjusted working revenue
Internet gross sales had been EUR 18,1 million (EUR 19,7 million).
Working loss elevated from the comparability interval to EUR -2,9 million (EUR -1,9 million). The decline in profitability was primarily as a result of lower in enterprise quantity and partly by elevated element costs eroding product margins. Adjusted working revenue was EUR -2,Three million (EUR -1,7 million).
Enterprise growth
The online gross sales of the Energy Provides product class within the first half of the yr had been EUR 10,6 million, EUR 2,1 million weaker than on the identical time final yr. Fundamental driver of the online gross sales lower was lowered demand by one buyer referring to energy provides for ventilators and extracorporeal oxidizers (ECMO) which accounted for appr. EUR 1,6 million of the lower.
The online gross sales of the Led Drivers product class was EUR 4,5 million, EUR 0,Three million larger than within the comparability interval of the earlier yr pushed by a stabilization within the leisure and sport associated demand.
The Programs product class continued to develop. The online gross sales of Programs merchandise through the evaluate interval was EUR 3,Zero million, EUR 0,Three million larger than within the comparability interval of the earlier yr.
Probably the most vital elements affecting enterprise quantity within the first half of the yr had been persevering with uncertainty and gradual demand within the Led Drivers product class as a result of Covid-19, weak demand of some Energy Provides class’s prospects and persevering with progress within the Energy Programs product class supported by the MHE product.
Market outlook
Within the industrial enterprise, energy provides for LED lighting, measuring gadgets, healthcare gear and infrastructure proceed to offer many alternatives for progress. The corporate invests in buyer segments the place excessive reliability and lengthy product life cycles are the figuring out elements.
Brief-term dangers and uncertainties
Normal financial developments could have an effect on the corporate’s enterprise surroundings. Covid-19 has elevated the extent of uncertainty within the trade and, relying on the event of the pandemic, could have potential results on our prospects’ means to function, the demand for his or her finish merchandise and the final industrial working surroundings. Within the Led Drivers and Energy Provides product classes, the consequences of Covid-19 could also be mirrored in a postponement of demand for leisure and sports-related lighting techniques when spectator capability is underutilized. Opening of recent retail shops e.g. within the clothes retail enterprise has not less than briefly slowed down, which can have an effect on the demand for brand new lighting options and the renewal of previous ones.
Probably the most vital enterprise dangers are associated to the success of key prospects’ merchandise available in the market. The progress of Enedo’s product growth initiatives relies upon partially on the schedules of shoppers’ personal initiatives. As well as, the fluctuations in demand typical of the market trigger fast modifications in Enedo’s enterprise. Because of the nature of the enterprise, Enedo is topic to claims, of which the ultimate resolution can’t be predicted. Primarily based on the present data, these claims should not anticipated to have a cloth influence on the Group’s monetary place.
The supply instances of the elements required by the corporate are partly lengthy and there could also be difficulties in acquiring sure elements once in a while, which can have an effect on the supply capability. Covid-19 has additionally elevated the extent of uncertainty in every nation, which can have an effect on our supply capability. The consequences of Covid-19 might be mirrored in an unexpected change in habits in each provide chains and the corporate’s prospects. Examples of this may be e.g. modifications in fee phrases and orders. The corporate’s comparatively excessive indebtedness, comparatively low liquidity and the usage of receivables financing enhance the corporate’s sensitivity to damaging market modifications.
The corporate’s personal manufacturing is concentrated in a single manufacturing facility in Tunisia. Tunisian manufacturing is uncovered to a basic nation danger. Tunisia’s nationwide Covid-19 actions, the political surroundings and different elements affecting the plant’s viability are partly past the corporate’s management.
Regardless of the finished share points and mortgage preparations, there are dangers referring to the adequacy of financing, that the corporate seeks to handle via lively planning and implementation of varied alternate options. Because of the continued monetary uncertainty attributable to the Covid-19 pandemic, the Group has up to date its estimates on uncertainties referring to liquidity danger, credit score and counterparty danger in addition to enterprise continuity.
Covid-19
All through the evaluate interval, now we have continued to take lively inner measures to make sure the well being of our workers and continuity of enterprise. We now have carried out inner tips and adopted the rules of the native authorities in every nation. Enedo has operations in Tunis (manufacturing), Italy (product growth, gross sales), Finland (headquarters, product growth, gross sales) and the US (gross sales). Our administration staff displays the event of Covid-19 and responds to modifications instantly if needed.
Because the Covid-9 pandemic continues and enterprise surroundings adjusts to the brand new state of affairs, it’s difficult to distinguish the consequences of the pandemic from different elements influencing enterprise. International restoration from Covid-19 has resulted in a world scarcity of essential elements available in the market impacting lead-times and thereby enterprise progress.
Investments and product growth
Investments within the Group’s persevering with operations through the monetary yr had been EUR 1,Three million (EUR 1,Zero million), of which product growth capitalizations accounted for EUR 0,7 million (EUR 0,6 million). On the finish of the evaluate interval, capitalized product growth prices within the steadiness sheet had been EUR 4,9 million (EUR 5,1 million).
Throughout the evaluate interval, capitalized product growth prices had been impaired by a complete of EUR 0,2 million (EUR 0,1 million) as a result of Strato Evo product efficiency.
In whole, product growth prices through the monetary yr had been EUR 2,2 million (EUR 2,1 million), of which EUR 0,7 million (EUR 0,6 million) had been capitalized within the steadiness sheet and EUR 1,5 million (EUR 1,5 million) had been acknowledged as bills which was 8,3 % (7,8 %) of web gross sales.
Financing
The online interest-bearing liabilities had been EUR 5,1 million (EUR 15,5 million) on the finish of the monetary interval. The online interest-bearing liabilities embody EUR 0,Eight million (EUR 1,1 million) of IFRS 16 lease liabilities. Fundamental driver within the discount of web curiosity bearing liabilities has been the finished share points and mortgage association within the first half of the yr.
The money movement from working actions through the evaluate interval was EUR -1,Eight million (EUR -1,9 million). Along with generated loss, the damaging money movement was attributable to elevated want for working capital because the gross sales volumes had been low and paying aged payables after the share points. The money movement after investing actions was EUR -3,1 million (EUR -2,7 million). The Group’s solvency ratio was 27,1 % (4,1 %), web gearing 58,5% (1181,9%) and the closing steadiness sheet was EUR 32,5 million (EUR 32,Zero million).
The money place with out undrawn credit score amenities totaled EUR 3,6 million (EUR 1,Zero million). On the finish of the interval, the Group had EUR 1,Zero million (EUR 1,Four million) of undrawn credit score amenities excluding factoring limits.
On April 7, 2021, we introduced the ultimate results of the rights and directed share subject with gross proceeds of EUR 12 million. Mortgage association was accomplished after the brand new shares had been registered on ninth of April 2021. In consequence Enedo paid again EUR 5,Three million of loans and EUR 3,Three million of the loans had been cancelled. Share points and mortgage association improved Enedo’s money place by a web of EUR 5,5 million after mortgage funds and paying charges and transaction bills. The share points, along with the mortgage association improved firm’s steadiness sheet place.
ENEDO PLC
Board of Administrators
For additional data please contact Mr. Mikael Fryklund, CEO, tel. +358 40 500 6864,
On 12th of August at 15:00 – 16:00
DISTRIBUTION
Nasdaq Helsinki Oy
Principal media
Enedo
Enedo is a European designer and producer of high-quality digital energy provides and techniques for essential gear even in probably the most demanding environments. Enedo´s mission is to make electrical energy higher – extra dependable, safer, extra power environment friendly – and good to suit its goal. Enedo´s three foremost product classes are Led Drivers, Energy provides and Energy Programs. In 2020 the group´s income was EUR 38,5 million. Enedo has 354 workers and its foremost capabilities are situated in Finland, Italy, Tunisia and USA. The group´s head workplace is in Finland and mum or dad firm Enedo Oyj is listed on Nasdaq Helsinki Oy.
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