Martela Corporation's Half Year Report 1 January – 30 June 2019
The January–June 2019 revenue remained on the same level and operating result decreased compared to previous year. Operating result decreased due to the tight competition which has led to decreased sales margins.
April–June 2019
- Revenue was EUR 24.8 million (25.6), representing a change of -3.0 %
- Operating result was EUR -1.8 million (-0.9)
- Operating profit per revenue was -7.1 % (-3.7 %)
- The result for the period declined and was EUR -1.9 million (-1.0)
- Earnings per share amounted to EUR -0.45 (-0.25)
January–June 2019
- Revenue was EUR 50.4 million (50.8), representing a change of -0.8 %
- Operating result was EUR -3.6 million (-1.8)
- Operating profit per revenue was -7.2 % (-3.6 %)
- The result for the period declined and was EUR -3.9 million (-2.2)
- Earnings per share amounted to EUR -0.95 (-0.52)
Outlook
Outlook for 2019
The Martela Group anticipates that its revenue and operating result in 2019 will improve slightly compared to the previous year. Traditionally Group’s operating result accumulates during the second half of the year.
Key figures, EUR million
| 2019 | 2018 | Change | 2019 | 2018 | Change | 2018 | |
| 4-6 | 4-6 | % | 1-6 | 1-6 | % | 1-12 | |
| Revenue | 24,8 | 25,6 | -3,0 % | 50,4 | 50,8 | -0,8 % | 103,1 |
| Operating result | -1,8 | -0,9 | -3,6 | -1,8 | -2,1 | ||
| Operating result % | -7,1 % | -3,7 % | -7,2 % | -3,6 % | -2,0 % | ||
| Result before taxes | -1,9 | -1,1 | -4,0 | -2,2 | -2,5 | ||
| Result for the period | -1,9 | -1,0 | -3,9 | -2,2 | -2,4 | ||
| Earnings/share, eur | -0,45 | -0,25 | -0,95 | -0,52 | -0,57 | ||
| Return on investment % | -23,0 | -10,6 | -23,7 | -10,2 | -4,9 | ||
| Return on equity % | -45,5 | -20,1 | -47,5 | -20,8 | -11,4 | ||
| Equity ratio % | 28,4 | 39,2 | -27,6 % | 39,2 | |||
| Gearing % | 57,7 | 16,4 | 252,6 % | 0,7 |
Matti Rantaniemi, CEO:
“The January–June 2019 revenue was EUR 50.4 million representing a decrease of 0.8% compared to same time in previous year. Our revenue increased in Sweden 23.6% and in Norway 38.2 % compared to previous year. Revenue decreased in Finland 3.5% and in Other countries 39.5 % compared to previous year. Decrease in Finland was impacted by postponement of frame agreement negotiations in the public sector and due that decreased demand. Excluding the public sector, we were able to grow in all other customer segments in Finland.
New orders grew in the first half of 2019 compared to same time previous year. Growth in all other segments than public sector was especially strong in the second quarter of 2019. I believe, that now when contract negotiations have ended, demand in the public sector will normalise. Martela being the preferred supplier in Kuntahankinta gives us a great opportunity to increase our sales.
Operating result decreased compared to last year and was EUR -3.6 million (-1.8). This was mainly influenced by toughened competition which resulted to a lower sales margin. In order to improve our profitability we initiated a cost efficiency program aiming to EUR 4 million cost savings by year 2021 in June. First part of the cost efficiency program was concluded in June through co-operation negotiations in Finnish entities. This is expected to bring approximately EUR 2 million annual cost savings from beginning of 2020 onwards. Change in the market condtions is permament and therefore we need to be able to align our fixed costs to meet the changing environment. I am confident that even these processes are never easy, these actions are necessary in order to secure succesful future in the long term.
Even though the challenges in market conditions have decreased our revenue and operating result in the short term, we strongly belive that basis for our strategy remains. Transformation in working and learning environments will continue, get stronger and expand. Working and learning environments will have to be able to adapt faster as needs and circumstances keep constantly changing. This will require capabilites to follow and understand the use of space, and needs of the users and to be able to renew and optimize the space according to those needs. Martela has expanded the strategically important Pod family by introducing several new products into it. These are specifically planned to meet the requirements of constantly growing need of flexible spaces.
Market situation
There has not been any major changes in the private sector market conditions. However demand for finnish public sector has been temporaly affected negatively by postponement of frame agreement negotiations. Now when these negotiations have been concluded we believe that public sector will be recovering. The demand for Martela’s products and services is fundamentally affected also by the general economic situation and by the extent to which companies and the public sector need to stregthen the utilisation of their spaces and make their workplaces more effective as management tools.
BRIEFING
A briefing for analysts, portfolio managers and the media will take place on Friday 9th of August, 2019 from 11.30 a.m. to 12.30 p.m. EET at Martela House at Takkatie 1, Helsinki. The results will be presented by Matti Rantaniemi, CEO.
Martela Corporation
Board of Directors
Matti Rantaniemi
CEO
Further information
Matti Rantaniemi, CEO, tel. 4
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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