Panostaja Oyj´s Business Review Q1 1.11.2019-31.1.2020
Panostaja Oyj Business Review Q1 March 11 2020 10.00 a.m.
Two-Sided Development in the Segments
November 1, 2019-January 31, 2020 (3 months)
- Net sales increased in four of the eight investment targets. Net sales for the Group as a whole weakened by 4% to MEUR 45.0 (MEUR 46.7).
- EBIT improved in five of the eight segments. The entire Group’s EBIT declined from the reference period, standing at MEUR -0.5 (MEUR 0.2). The reference period’s EBIT includes sales profit for Ecosir Group in the amount of MEUR 1.6.
- Grano’s net sales for the review period declined by 10% from the reference period in the previous year. EBIT was MEUR -0.4 (MEUR -0.3).
- Earnings per share (undiluted) were -1.9 cents (-0.1 cents).
CEO Tapio Tommila:
“During the first quarter of the financial period, profitability development of the segments was two-sided. The net sales of CoreHW, Heatmasters and Tilatukku developed well, but the development for Grano and Carrot was significantly poorer than expected in the financial period. Overall, the total net sales of the Panostaja segments dropped by 4% from the reference period.
Panostaja’s EBIT for the review period was MEUR -0.5, which was MEUR 0.7 less than in the reference period. The profit/loss for the reference period includes MEUR 1.8 in sales profits. The weak development of Grano’s net sales was also reflected by the EBIT, which declined to MEUR -0.4 from the MEUR -0.3 in the reference period, despite the streamlining measures conducted. Carrot’s EBIT remained at the level of the reference period. CoreHW’s strong net sales in the review period also led to a significant improvement in EBIT, which increased to MEUR 0.5 from the MEUR -0.3 in the reference period.
In the review period, the measures resulting from Grano’s employer-employee negotiations in the previous period progressed as planned and contributed to the development of EBIT. Selog Group and Tilatukku merged at the end of the 2019 financial period, and the company has operated under the name Tilatukku during the review period. As expected, the merger has supported the development of the company’s net sales. In Carrot’s field of business, the winter is usually a slow season, but net sales were still lower than expected in the review period.
During the review period, Panostaja distributed a dividend at EUR 0.05 per share.
The corporate acquisitions market has remained active at the beginning of the financial period, and the availability of new opportunities has been high. After the review period, the increased uncertainty of economic development due to the coronavirus outbreak may impact sentiments in the corporate acquisition market as well as the prospects of our current segments.”
| Key Figures MEUR | Q1 | Q1 | 12 months |
| 11/19- 1/20 | 11/18– 1/19 | 11/18– 10/19 | |
| Net sales, MEUR | 45.0 | 46.7 | 190.2 |
| EBIT, MEUR | -0.5 | 0.2 | 3.6 |
| Profit before taxes, MEUR | -1.0 | -0.2 | 1.7 |
| Profit/loss for the financial period, MEUR | -1.4 | -0.7 | 2.5 |
| Distribution: | |||
| Shareholders of the parent company | -1.0 | -0.1 | 1.6 |
| Minority shareholders | -0.4 | -0.7 | 0.9 |
| Earnings per share, undiluted (EUR) | -0.02 | 0.00 | 0.03 |
| Interest-bearing net liabilities | 81.0 | 57.5 | 53.7 |
| Gearing ratio, % | 104.3 | 72.2 | 67.5 |
| Equity ratio, % | 36.5 | 39.8 | 41.3 |
| Equity per share (EUR) | 0.94 | 0.96 | 0.96 |
| Division of the net sales by segment MEUR | Q1 | Q1 | 12 months |
| Net sales | 11/19- 1/20 | 11/18– 1/19 | 11/18– 10/19 |
| Grano | 29.2 | 32.3 | 129.7 |
| Tilatukku | 2.4 | 1.8 | 7.3 |
| Helakeskus | 1.8 | 1.9 | 8.0 |
| Hygga | 1.1 | 1.2 | 4.7 |
| Heatmasters | 1.1 | 0.8 | 4.2 |
| CoreHW | 2.4 | 1.0 | 5.7 |
| Carrot | 4.3 | 5.3 | 20.8 |
| Oscar Software | 2.8 | 2.6 | 10.1 |
| Others | 0.0 | 0.0 | 0.0 |
| Eliminations | -0.1 | -0.1 | -0.3 |
| Group in total | 45.0 | 46.7 | 190.2 |
| Division of EBIT by segment MEUR | Q1 | Q1 | 12 months |
| EBIT | 11/19- 1/20 | 11/18– 1/19 | 11/18– 10/19 |
| Grano | -0.4 | -0.3 | 4.1 |
| Tilatukku | 0.1 | 0.0 | -0.2 |
| Helakeskus | 0.0 | 0.1 | 0.5 |
| Hygga | 0.0 | -0.1 | -0.2 |
| Heatmasters | 0.1 | -0.1 | 0.2 |
| CoreHW | 0.5 | -0.3 | 0.4 |
| Carrot | -0.4 | -0.4 | -0.4 |
| Oscar Software | 0.2 | 0.2 | 0.2 |
| Others | -0.6 | 1.0 | -1.1 |
| Group in total | -0.5 | 0.2 | 3.6 |
Panostaja Group’s business operations for the current review period are reported in nine segments: Grano, Tilatukku, Helakeskus, Heatmasters, Hygga, CoreHW, Carrot, Oscar Software and Others (parent company and associated companies).
In the review period, two associated companies, Gugguu Group Oy and Spectra Yhtiöt Oy, issued reports to the parent company. The profit/loss of the reported associated companies in the review period was MEUR 0.1 (MEUR 0.0), which is presented on a separate row in the consolidated income statement.
Outlook for the 2020 Financial Period
As regards the corporate acquisition market, plenty of opportunities are available and the market is active. The need to leverage ownership arrangements and growth opportunities will persist for SMEs, but the high market liquidity and increased price expectations of sellers are making the operating environment more challenging for corporate acquisitions. We will continue exploring new possible investment targets in accordance with our strategy and assess divestment possibilities as part of the ownership strategies of the investment targets. After the review period, the economic uncertainty sparked by the coronavirus will impact the Finnish economy in 2020, causing consequential effects on the corporate acquisition market and general economic development.
It is thought that the demand situation for different investments will develop in the short term as follows:
- The demand for CoreHW, Oscar Software, Carrot and Heatmasters will remain good.
- Demand for Grano, Hygga, Tilatukku and Helakeskus will remain satisfactory.
Panostaja Oyj
Board of Directors
For further information, contact CEO Tapio Tommila, +358 (0)40 527 6311
Panostaja Oyj
Tapio Tommila
CEO
All forecasts and assessments presented in this financial statement bulletin are based on the current outlook of Panostaja and the views of the management of the various investments with regard to the state of the economy and its development. The results attained may be substantially different.
This is not an interim report compliant with the IAS 34 standard. The company observes the six-monthly reporting practice prescribed in the Finnish Securities Markets Act and publishes business reports for the initial three and nine months of each year, presenting the key information on the company’s financial development. The financial information presented in the business report has not been audited.
Panostaja is an investment company developing Finnish start-ups in the role of an active shareholder. The company aims to be the most sought-after partner for business owners selling their companies as well as for the best managers and investors. Together with its partners, Panostaja increases the Group's shareholder value and creates Finnish success stories.
Panostaja has a majority holding in eight investment targets. Grano Oy is the most versatile expert of content services in Finland. Heatmasters Group offers heat treatment services for metals in Finland and internationally, as well as produces, develops and markets heat treatment technology. Hygga Oy is a company providing health care services and the ERP system for health care providers. Suomen Helakeskus Oy is a major wholesaler of furniture fittings in Finland. Tilatukku (formerly Selog Oy) is a specialty supplier and wholesaler of ceiling materials. CoreHW provides high added value RF IC design services. Carrot provides staffing, recruitment and outsourcing services. Oscar Software provides ERP systems and financial management services.
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