Martela Corporation’s Half Year Report 1 January – 30 June 2020
The January–June 2020 revenue decreased and operating result increased compared to previous year.
April–June 2020
- Revenue was EUR 20.6 million (24.8), representing a change of -16.8 %
- Operating result was EUR 0.0 million (-1.8)
- Operating profit per revenue was 0.0 % (-7.1 %)
- The result for the period was EUR 0.1 million (-1.9)
- Earnings per share amounted to EUR 0.02 (-0.45)
January–June 2020
- Revenue was EUR 42.3 million (50.4), representing a change of -16.1 %
- Operating result was EUR -2.8 million (-3.6)
- Operating profit per revenue was -6.7 % (-7.2 %)
- The result for the period was EUR -3.4 million (-3.9)
- Earnings per share amounted to EUR -0.82 (-0.95)
Outlook
Outlook for 2020
Martela Group anticipates that its 2020 revenue will decrease clearly, and operating result will decrease compared to the previous year. Due to current situation, visibility to second half of the year is even more challenging than normally and company is actively monitoring the situation.
Key figures, EUR million
| 2020 | 2019 | Change | 2020 | 2019 | Change | 2019 | |
| 4-6 | 4-6 | % | 1-6 | 1-6 | % | 1-12 | |
| Revenue | 20.6 | 24.8 | -16,8 % | 42.3 | 50.4 | -16.1 % | 106.2 |
| Operating result | 0.0 | -1.8 | -2.8 | -3.6 | -2.0 | ||
| Operating result % | 0.0 % | -7.1 % | -6.7 % | -7.2 % | -1.9 % | ||
| Result before taxes | 0.0 | -1.9 | -3.5 | -4.0 | -2.7 | ||
| Result for the period | 0.1 | -1.9 | -3.4 | -3.9 | -2.5 | ||
| Earnings/share,eur | 0.02 | -0.45 | -0.82 | -0.95 | -0.61 | ||
| Return on investment % | 0.4 | -23.0 | -18.8 | -23.7 | -6.4 | ||
| Return on equity % | 2.6 | -45.5 | -48.0 | -47.5 | -14.7 | ||
| Equity ratio % | 25.3 | 28.4 | -11.0 % | 30.6 | |||
| Gearing % | 72.2 | 57.7 | 25.1 % | 31.5 |
Matti Rantaniemi, CEO:
“Our revenue decreased by 16.8 % in the second quarter compared to same period last year. Revenue in the second quarter was EUR 20.6 million. Revenue was negatively impacted by the coronavirus pandemic through a decreased demand especially in the Finnish commercial sector and in Norway. Similar decline was not seen in the Swedish market, where our revenue increased compared to same period last year. Revenue for the period January – June decreased by 16.1 % compared to same period last year. Revenue for the period January - June was EUR 42.3 million. Our delivery accuracy has remained on an excellent level and share of services sales continued to grow.
New orders clearly decreased in the second quarter. The decrease was strongest in Norway and in the Finnish commercial sector. We expect the demand to stay at a lower level in the near future and it will have significant negative impact to revenue and operating result in the second half of 2020. 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.
Despite the lower revenue in the second quarter our operating result clearly improved and grew by EUR 1.8 million comapred to the same period last year. This was a result of improved efficiency and cost savings porgrams as well as rapid cost savings actions during the pandemic. Together these actions improved our sales margin and decreased our fixed costs. Operating result for the period of January – June improved by EUR 0.8 million compared to same period last year. Operating result for January – June was EUR -2.8 million (-3.6).
Our cash position remained on an acceptable level. We are having active communication with our financing partners in order to secure that our operations will not be disturbed due to financing issues.
The coronavirus pandemic and the uncertainty caused by it have had a negative impact on the market situation. It is still difficult to evaluate how current circumstances will impact to our full year revenue and operating result. We will continue our cost saving initiatives in order to minimize the negative impacts of the pandemic.
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 impact has been especially strong in 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 impossible to say what the short- and midterm impacts to general market conditions will be and how long the uncertainty in the markets will continue.
BRIEFING
A briefing will not be held due to the prevailing pandemic situation, but additional information can be asked by telephone from Matti Rantaniemi and Kalle Lehtonen on Friday 7th of August 2020 from 11:30 a.m. to 2 p.m. EET.
Martela Corporation
Board of Directors
Matti Rantaniemi
CEO
Further information
Matti Rantaniemi, CEO, tel. 4
Kalle Lehtonen, CFO, tel. 968
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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