Martela Corporation’s Financial Statements 1 January – 31 December
The January–December 2019 revenue improved slightly compared to previous year and operating result remained unchanged.
October–December 2019
- Revenue was EUR 29.9 million (27.8), representing a change of 7.3 %
- The result for the period was EUR 0.6 million (-0.2)
- Operating profit per revenue was 1.9 % (-0.8 %)
- The result for the period improved and was EUR 0.5 million (-0.1)
- Earnings per share amounted to EUR 0.11 (-0.02)
January–December 2019
- Revenue was EUR 106.2 million (103.1), representing a change of 3.0 %
- Comparable operating result was EUR -1.6 million (-2.1)
- Operating result according to IFRS was EUR -2.0 million (-2.1)
- Operating profit per revenue was -1.9 % (-2.0 %)
- The result for the period was EUR -2.5 million (-2.4)
- Earnings per share amounted to EUR -0.61 (-0.57)
Outlook
Outlook for 2020
The Martela Group anticipates that its revenue and operating result in 2020 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 | |
| 10-12 | 10-12 | % | 1-12 | 1-12 | % | |
| Revenue | 29.9 | 27.8 | 7.3 % | 106.2 | 103.1 | 3.0 % |
| Operating result | 0.6 | -0.2 | -2.0 | -2.1 | ||
| Operating result % | 1.9 % | -0.8 % | -1.9 % | -2.0 % | ||
| Result before taxes | 0.4 | -0.2 | -2.7 | -2.5 | ||
| Result for the period | 0.5 | -0.1 | -2.5 | -2.4 | ||
| Earnings/share, eur | 0.11 | -0.02 | -0.61 | -0.57 | ||
| Return on investment % | 8.4 | -1.1 | -6.4 | -4.9 | ||
| Return on equity % | 10.9 | -2.5 | -14.7 | -11.4 | ||
| Equity ratio % | 30.6 | 39.2 | -21.9 % | |||
| Gearing % | 31.5 | 0.7 | 4726.9 % |
Matti Rantaniemi, CEO:
“Our revenue increased by 7.3 % in the last quarter compared to same period last year. This raised the total revenue for January–December to EUR 106.2 million increasing it with 3.0 % compared to the same period last year. I am pleased with the development of the sales in Norway (49.5 %) and Sweden (51.4 %). Even if revenue in the Finnish public sector decreased, we managed to grow in all other customer segments in Finland.
New orders decreased slightly in the last quarter. The decrease was strongest in the public sector in Finland.
Operating result improved with EUR 0.8 million in the last quarter when comparing to same period previous year and was EUR 0.6 million (-0.2). This was a result of an increased revenue and a slightly improved sales margin. The operating result of the fourth quarter also included a bad debt reservation of EUR 0.4 million related to the bankruptcy of one of our retailers. Operating result for January–December was EUR -2.0 million (-2.1). This was the second quarter in a row in which we managed to improve our operating result compared to previous year.
The market conditions remained challenging and the sales margin level has decreased permanently. The implemented actions to improve profitability and sales have shown results in the second half of the year. In addition to these actions we will continue the implementation of the reported 4 million euro savings program and improvements of our productivity.
We will update our operative sales systems during the first quarter of 2020 in order to increase the productivity of sales and to improve the digital functionalities of the systems. This may impact on how the revenue is accumulated during the first and second year halves.
Market conditions will continue to be very challenging in the near future, but we strongly believe that the basis for our strategy remains. Transformation in working and learning environments will continue, get stronger and expand in the Nordics. Working and learning environments will have to be sustainable and to be able to adapt faster as needs and circumstances constantly keep 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.”
Market situation
There has not been any major changes in the market conditions of the private sector. However market conditions in the Finnish public sector have been toughened and prices have decreased. 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.
Revenue and operating result
Revenue and result for October–December 2019
Revenue for October–December was EUR 29.9 million (27.8) and increased by 7.3 % from the previous year. Compared to the previous year, revenue increased in Norway by 178.3 %, in Sweden by 135.9 % and in Other countries by 56.4 %. Revenue declined by 10.5 % in Finland.
The Group’s operating result in October-December was EUR 0.6 million (-0.2).
The October–December result before taxes was EUR 0.4 million (-0.2) and net result EUR 0.5 million (-0.1).
Revenue and result for January–December 2019
Revenue for January–December was EUR 106.2 million (103.1) and increased by 3.0 % from previous year. Compared to previous year, revenue increased in Sweden by 51.4 % and Norway by 49.5 %. In Finland revenue declined by 3.5 % and in Other countries by 0.8 %.
The Group’s comparable operating result in January-December was EUR -1.6 million (-2.1) and operating result according to IFRS was EUR -2.0 million (-2.1). The operating result was affeced by non-recurring costs of EUR 0.4 million caused by personnel related savings actions.
The January–December comparable result before taxes was EUR -2.3 million (-2.5) and net result EUR -2.1 million (-2.4). The January–December result before taxes according to IFRS was EUR -2.7 million (-2.5) and net result EUR -2.5 million (-2.4).
EVENTS AFTER THE END OF THE FINANCIAL YEAR
Martela Group lowered its revenue and operating result guidance for 2019 with the stock exchange release on the 15th of January 2020.
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. Due to the project-based nature of the sector, forecasting short-term development is challenging.
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 2019. The Board of Directors will assess the possibility to propose dividend payment to an extraordinary general meeting later this year.
ANNUAL GENERAL MEETING
Martela Corporation’s AGM will be held on 12 March 2020 at 3 p.m. in Martela House, Helsinki. The notice of the Annual General Meeting will be published in a separate release on 7 February 2020.
BRIEFING
A briefing for analysts, portfolio managers and the media will take place on Friday 7th of February, 2020 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.
The Annual Report for 2019 will be published on Martela’s website during week 10/2020.
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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