Martela Corporation’s Financial Statements 1 January – 31 December
The January–December 2020 revenue and operating result decreased compared to previous year.
October–December 2020
- Revenue was EUR 21.9 million (29.9), representing a change of -26,5 %
- The result for the period was EUR -2.2 million (0.6)
- Operating profit per revenue was -10.0 % (1.9 %)
- The result for the period was EUR -2.1 million (0.5)
- Earnings per share amounted to EUR -0.51 (0.11)
January–December 2020
- Revenue was EUR 88.4 million (106.2), representing a change of -16,8 %
- Operating result was EUR -4.0 million (-2.0)
- Operating profit per revenue was -4.5 % (-1.9 %)
- The result for the period was EUR -4.8 million (-2.5)
- Earnings per share amounted to EUR -1.16 (-0.61)
Outlook
Outlook for 2021
The Martela Group anticipates that its revenue and operating result in 2021 will improve compared to the previous year. Traditionally Group’s operating result accumulates during the second half of the year.
Key figures, EUR million
| 2020 | 2019 | Change | 2020 | 2019 | Change | |
| 10-12 | 10-12 | % | 1-12 | 1-12 | % | |
| Revenue | 21.9 | 29.9 | -26.5 % | 88.4 | 106.2 | -16.8 % |
| Operating result | -2.2 | 0.6 | -4.0 | -2.0 | ||
| Operating result % | -10.0 % | 1.9 % | -4.5 % | -1.9 % | ||
| Result before taxes | -2.1 | 0.4 | -4.8 | -2.7 | ||
| Result for the period | -2.1 | 0.5 | -4.8 | -2.5 | ||
| Earnings/share, eur | -0.51 | 0.11 | -1.16 | -0.61 | ||
| Return on investment % | -29.7 | 8.4 | -13.4 | -6.4 | ||
| Return on equity % | -62.3 | 10.9 | -35.7 | -14.7 | ||
| Equity ratio % | 22.7 | 28.8 | -21.2 % | |||
| Gearing % | 37.9 | 31.5 | 20.3 % |
Artti Aurasmaa, CEO:
“Our revenue decreased by 26.5 % in the fourth quarter compared to same period last year. Revenue in the fourth quarter was EUR 21.9 million. Revenue was negatively impacted by the coronavirus pandemic through a prolonged decrease in demand. Revenue decreased in all countries and decrease was especially strong in Sweden and in Norway. Revenue for the period January – December decreased by 16.8 % compared to same period last year. Revenue for the period January – December was EUR 88.4 million.
New orders continued to decrease also in the fourth quarter. Orders decreased in all other areas except in Norway and in the Finnish public sector, where orders increased compared to the same period last year. We expect the demand in general to stay at a lower level in the near future. Recovery of the demand will be strongly dependent on the progress of the pandemic and how that will affect decisions of our customers on returning to the working environment.
Our operating result decreased in the fourth quarter and was EUR -2.2 million. Significant decrease of operating result in the fourth quarter compared to same period last year was impacted by EUR -0.9 million from writeoff of legacy IT systems and onetime expenses of EUR -0.4 million related to change of company CEO. We continued in the fourth quarter the cost savings actions started in spring 2020 in order to adjust our cost base to match the decreased revenue. Operating result for the period of January – December decreased by EUR 2.0 million compared to same period last year. Operating result for January – December was EUR -4.0 million (-2.0).
The coronavirus pandemic and the uncertainty caused by it have had a negative impact to the market situation. It is still difficult to evaluate how current circumstances will impact to our short- and midterm revenue and operating result development. We have intiated co-operation negotiations in order to adjust our operations to match the current market conditions.
We believe that working environments will permanently change in the future. The coronavirus pandemic is accelerating the process of changing the way we work. The office is just one of the many places where we work, and for some of us the amount of remote work we do will increase for good. This will increase the demand for multipurpose working spaces and the need to invest to remote working conditions. We will continue together with our customers to be a forerunner in creating user centric working environments, which will improve user experience, efficiency and innovation capabilities as well as lower the overall costs.”
Market situation
The coronavirus pandemic has had a negative impact on the whole market environment of Martela, both in Scandinavia and in other countries. This has impacted especially the commercial sector. The negative impact has been smaller on the Finnish public sector compared to the commercial sector, but the competition has toughened and prices have decreased also in the public sector. At the moment it is challenging to say what the short- and midterm impacts to general market conditions will be and how long the uncertainty in the markets will continue.
Revenue and operating result
Revenue and result for October–December 2020
Revenue for October – December was EUR 21.9 million (29.9) and declined by 26.5 % from the previous year. Compared to the previous year, revenue decreased in Norway by 62.3 %, in Sweden by 59.7 % and in Other countries by 36.9 %. Revenue declined by 15.3 % in Finland.
The Group’s operating result in October – December was EUR -2.2 million (0.6). decrease in operating result in the fourt quarter compared to same period last year was impacted by EUR -0.9 million from writeoff of legacy IT systems and onetime expenses of EUR -0.4 million related to change of company CEO.
The October–December result before taxes was EUR -2.1 million (0.4) and net result EUR -2.1 million (0.5).
Revenue and result for January–December 2020
Revenue for January – December was EUR 88.4 million (106.2) and decreased by 16.8 % from previous year. Compared to previous year, revenue decreased in Sweden by 14.0 % and Norway by 51.6 %. In Finland revenue declined by 13.0 % and in Other countries by 32.5 %.
The Group’s operating result in January – December was EUR -4.0 million (-2.0). The January–December result before taxes was EUR -4.8 million (-2.7) and net result EUR -4.8 million (-2.5). decrease in operating result in the fourth quarter compared to same period last year was impacted by EUR -0.9 million from writeoff of legacy IT systems and onetime expenses of EUR -0.4 million related to change of company CEO.
EVENTS AFTER THE END OF THE FINANCIAL YEAR
Head of Innovation to Market –organization and management team member VP, Mikko Mäkelä, is heading for new challenges outside Martela and leaves the company at the end of January. Artti Aurasmaa, CEO, will take as interim position to lead the Innovation to Market business in addition to his duties as the CEO. The change has been announced in the stock exchange release on January 14, 2021.
Martela Plans to restructing measures to improve operational efficiency and starts co-operation negotiations. This has been announced in the stock exchange releases on January 27, 2021.
No other significant events requiring reporting have taken place since the January–December period, and operations have continued according to plan.
SHORT-TERM RISKS
The principal risk regarding profit performance relates to the general economic uncertainty and the consequent effects on the overall demand in Martela’s operating environment. The coronavirus pandemic and the uncertainty caused by it have had a negative impact on the market situation. Due to the project-based nature of the sector, forecasting short-term development is challenging in normal circumstances. This has been further been emphasized by the general uncertainty caused by the pandemic.
PROPOSAL OF THE BOARD OF DIRECTORS FOR DISTRIBUTION OF PROFIT
The Board of Directors will propose to the AGM that no dividend will be distributed for 2020.
ANNUAL GENERAL MEETING
The Annual General Meeting is planned to be held on Thursday 18 March 2021. The notice of the Annual General Meeting will be published in a separate release later.
BRIEFING
A briefing will not be held due to the prevailing pandemic situation, but additional information can be asked by telephone from CEO Artti Aurasmaa and CFO Kalle Lehtonen on Friday 5th of February, 2021 from 11.00 a.m. to 13.00 p.m. EET.
The Annual Report for 2020 will be published on Martela’s website during week 10/2021.
Martela Corporation
Board of Directors
Artti Aurasmaa
CEO
Further information
Artti Aurasmaa, CEO, tel. 5
Kalle Lehtonen, CFO, tel. 8
Distribution
Nasdaq OMX Helsinki
Key news media
Our strategic direction is defined by our mission “Better working” and our vision “People-centric workplaces”. Martela supplies user-centric workplaces where the users and their wellbeing are what matter most. We focus on the Nordic countries because, based on our common open work culture and needs, the Nordic countries are leaders in hybrid workplaces.
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