Enfo Oyj's financial statements bulletin 1 January - 31 December 2011
(Thomson Reuters ONE) -
Highlights in the financial statements bulletin
· Turnover in October-December increased by 12.3% and stood at EUR 41.1 million
(36.6). Turnover in January-December increased by 4.1% to EUR 143.2 million
(137.6).
· Operating profit (EBIT) in October-December amounted to EUR 3.1 million (2.3).
Operating profit in January-December stood at EUR 7.3 million (8.6). Operating
profit in January-December contains EUR 1.6 million of non-recurring
reorganisation costs.
· Profit before taxes in October-December amounted to EUR 2.3 million (2.1).
Profit before taxes in January-December stood at EUR 6.3 million (7.9).
· Earnings per share in October-December were EUR 2.30 (2.66). In January-
December, earnings per share were EUR 7.19 (10.23).
· The twelve-month return on investment was 9.7% (12.4%).
· In January-December, Enfo Group employed an average of 727 people (681). At
the end of December, the Group employed a total of 771 people (694).
· Business cash flow in January-December stood at EUR 6.8 million (9.6).
· The company estimates its turnover and operating profit to increase during the
first quarter of 2012 compared to the previous year.
Market
The general uncertainty over future economic development caused by heavily
indebted countries within the euro area continues. This affects the behaviour of
customer companies within the company's main market area in Finland and Sweden.
In 2011, the company estimates that the IT service market growth was 2-3% in
Finland and Sweden. In 2012, the company estimates that the IT service market
will grow at the same pace.
Group structure
Enfo Oyj is the parent company of Enfo Group. Enfo`s business operations are
divided into two separately reported lines of business - IT Services, and
Information Logistics Services.
Business development
Enfo's IT Services suffered from the price competition on the market during
2011. Demand was at a good level in the IT outsourcing market but strong price
competition had a clear impact on business growth and profitability development.
Companies are largely entering their IT agreements into bidding competitions and
are seeking high-quality but highly cost-efficient IT services. During the
second quarter of the year, efficiency and restructuring measures related to the
IT outsourcing service in Finland were implemented at Enfo`s IT Services, the
purpose of which was to develop the operational model of the outsourcing
services in order to ensure steady business development. The efficiency measures
had a clear impact on the improvement of operations in the highly competed IT
market in Finland.
Last year, Enfo increased its market share in IT outsourcing services by signing
new IT outsourcing service agreements with property investment company
Technopolis Oyj, and building management and property service company Avara
Management Oy. In addition, new cooperation agreements were signed with PACCOR
Finland Oy, specialised in packaging solutions, as well as VVO Group, Finland's
largest housing service provider. Furthermore, the Finnish Parliament and Otava
Publishing Company selected Enfo as their IT partner. Enfo's Help Desk service
received national recognition on 7 September 2011 as it was selected as the best
Help Desk service in Finland in the competition organised by HDI Nordic Oy.
Finnish consulting services showed particular demand for Windows 7 and identity
management projects. The University of Jyväskylä signed a five-year service
agreement with Enfo on identity management services, covering an environment of
more than 20,000 users. In industry vertical, the Helsinki Regional Transport
Authority (HSL) ordered the renewal of ticket inspecting devices from Enfo.
The operations of Information Logistics Services proceeded steadily, showing
stable demand for services. In order to develop its operations, the Information
Logistics Services unit carried out reorganisation measures during the latter
half of the year with the aim of strengthening the development of operational
profitability in the long-term. During the year, new service agreements were
signed with, for example, accounting firms and companies specialised in debt
collection and credit data services. On 19 September 2011, the Information
Logistics Services unit published a consumer survey covering e-invoices. It
strengthens the development of e-invoicing services.
The operations of Information Logistics Services will strongly involve service
development associated with a turning point in the energy industry, where the
emphasis will be placed on message transmission for electricity trading and
reporting practices for statutory energy use, together with customers. In
addition, customers have extended their agreements in AMM services (Automatic
Meter Management). Enfo signed an agreement with Rauman Energia and Vakka-Suomen
Voima on AMM services, covering 43,000 sites. The ten-year agreement is worth
nearly EUR 10 million.
Enfo`s IT Service operations in Sweden proceeded successfully during 2011.
Infrastructure projects boosted the development of consulting services on the
market and the demand for integration services was at an extremely good level.
Last year, Enfo signed a number of significant consulting service agreements
with Volvo Cars Corporation, the County Council of Stockholm, Swenox Ab,
Ericsson Ab and Scania Ab. In June 2011, Enfo Zipper, who specialise in
infrastructure consulting services, was selected as the Microsoft Solution
Partner of the Year in Sweden. Furthermore, Enfo Zystems, specialised in system
integration, received recognition when IBM selected it as the partner of the
year in Sweden. Enfo Pointer, a company offering Business Intelligence
solutions, expanded its operations at the end of the year by opening an office
in Gothenburg. Outsourcing service operations grew significantly in Sweden as
Relacom outsourced its IT operations to Enfo.
Turnover
Enfo Group's turnover increased by 12.3% in October-December and stood at EUR
41.1 million (36.6). In January-December, turnover grew by 4.1% to EUR 143.2
million (137.6). The increase in the Group's turnover reflects the good demand
for consulting services and the acquisition of new subsidiaries in Sweden. The
poor development of hardware sales in Finland and the slow progress of
outsourcing services at the beginning of the year had a negative impact on
turnover.
Development of turnover by reporting segment
+------------------------------+----------+----------+---------+---------+
| EUR million |10-12/2011|10-12/2010|1-12/2011|1-12/2010|
+------------------------------+----------+----------+---------+---------+
| IT Services | 32.9 | 27.9 | 109.9 | 105.8 |
+------------------------------+----------+----------+---------+---------+
|Information Logistics Services| 8.7 | 8.9 | 35.2 | 33.2 |
+------------------------------+----------+----------+---------+---------+
The turnover of the IT Services segment increased by 17.8% in October-December,
amounting to EUR 32.9 million (27.9). In January-December, turnover increased by
3.9% to EUR 109.9 million (105.8). The increase in turnover was particularly
accelerated by the good demand for consulting Services in Sweden. In addition,
the growth was boosted by the acquisition of new Swedish subsidiaries.
The turnover of Information Logistics Services fell in October-December by 2.8%
to EUR 8.7 million (8.9), and the full-year turnover increased by 5.9% to EUR
35.2 million (33.2). The decline in turnover during the final quarter was
affected by slower demand for services and tougher market competition. The full-
year turnover of Information Logistics Services increased as planned.
Profitability
Enfo Group's operating profit increased by 33.7% in October-December and stood
at EUR 3.1 million, representing 7.6% of turnover (EUR 2.3 million and 6.3%).
The Group's operating profit in January-December was EUR 7.3 million (8.6),
comprising 5.1% of turnover (6.3%). The strengthening of the Group's
profitability was affected by an increased demand for IT Services in Sweden.
Last year's result is strained by costs associated with the personnel's
adaptation and reorganisation arrangements in Finland and those arising from the
personnel's commitment and ownership arrangements in SAP consulting operations
in Sweden. The operating profit contains EUR 1.6 million of non-recurring
reorganisation costs.
The Group`s profit before taxes in October-December stood at EUR 2.3 million
(2.1), comprising 5.7% of turnover (5.9%). Profit before taxes in January-
December stood at EUR 6.3 million, comprising 4.4% of turnover (EUR 7.9 million
and 5.8%). The Group's net financing costs stood at EUR 0.8 million (0.2) in
October-December, and EUR 1.0 million (0.7) in January-December. The result in
October-December was EUR 1.8 million or 4.3% of turnover (1.5 and 4.2%). The
result in January-December was EUR 4.7 million (5.8), comprising 3.3% of
turnover (4.2%). Earnings per share in October-December were EUR 2.03 (2.66). In
January-December, earnings per share were EUR 7.19 (10.23).
Development of operating profit by reporting segment
+------------------------------+----------+----------+---------+---------+
| EUR million |10-12/2011|10-12/2010|1-12/2011|1-12/2010|
+------------------------------+----------+----------+---------+---------+
| IT Services | 1.6 | 0.9 | 2.3 | 3.6 |
+------------------------------+----------+----------+---------+---------+
|Information Logistics Services| 1.4 | 1.4 | 5.0 | 5.1 |
+------------------------------+----------+----------+---------+---------+
The decrease in the operating profit of IT Services reflects the negative
development of profitability in Finnish outsourcing services resulting from the
tough price competition. Furthermore, last year's result was strained by costs
associated with the personnel's adaptation and reorganisation arrangements.
Thanks to the efficiency measures and reorganisations carried out, the decrease
in profitability evened out during the last quarter. The operating profit was
also strained by costs arising from the development of Swedish outsourcing
services. Good demand for consulting services in Sweden strengthened the result.
The operating profit of Information Logistics Services stayed at the same level
as last year. The development of operating profit was affected by efficient
operations and the profitable management of customer accounts.
Financing and investments
Enfo's net investments stood at EUR 3.1 million (0.6) in October-December, and
EUR 11.3 million (3.3) in January-December. Full-year investments were mainly
directed at the acquisition of new subsidiaries and data centre hardware. The
hardware was financed through financial leasing agreements.
The company`s equity ratio was 41.1% (43.6) at the end of the period. Interest-
bearing net liabilities at the end of December amounted to EUR 29.7 million
(24.0) and net gearing was 62.2% (53.4).
Personnel
In January-December, Enfo Group employed an average of 727 people (681). At the
end of December, the Group employed a total of 771 people (694).
Enfo's IT Services unit employed an average of 636 people in January-December
(593), and the Information Logistics Services unit employed an average of 75
people (73). Of Enfo's personnel, 346 (360) were employed in Finland and 381
(321) in Sweden during the review period.
Board of Directors and management
Enfo Oyj's Chairman of the Board of Directors is Tapio Hakakari, Managing
Director of Webstor Oy. The other members of the Board of Directors are Hannu
Isotalo, Chairman of the Board of Directors of Lujatalo Oy; Ossi Saksman,
Chairman of the Board of Directors of Osuuskunta KPY; Mammu Kaario, Investment
Director at Korona Invest Oy; and Timo Kärkkäinen, Senior Portfolio Manager of
Non-listed Companies of Ilmarinen Mutual Pension Insurance Company.
In 2011, Enfo Group's Executive Management Team members were Managing Director
Arto Herranen, Finance Director Tero Kosunen (Finance and Communications), HR
Director Maria Lundell (HR), Director Osmo Wilska (Outsourcing Services),
Director Nina Annila (Industry Verticals), Director Johan de Verdier (Consulting
Services),and Director Tero Saksman (Information Logistics Services).
Shares
On 31 December 2011, Enfo Oyj had a total of 589,120 shares. At the end of the
period, the company had a total of 107 shareholders. The company has one series
of shares, Enfo owned 684 of its treasury shares at the end of December 2011.
At the end of 2011, the company's ten largest owners were Osuuskunta KPY, Enfo
Oyj's Personnel Fund HR, Pohjola Insurance Ltd, Ilmarinen Mutual Pension
Insurance Company, Suomi Mutual Life Assurance Company, Einari Vidgrén Oy,
Keskisuomalainen Oyj, Pohjois-Savo Cooperative Bank, Hannu Isotalo Oy and Savon
Voima Oyj. Osuuskunta KPY`s share of ownership is 81.9%.
Events after the end of the financial period
On 2 February 2012, Enfo was selected for the second time as one of the best
places to work in Finland in the survey organised by Great Place to Work
Institute Finland. Enfo was ranked 25th on the list.
Forecast for likely future development
The company estimates its turnover and operating profit to increase during the
first quarter of 2012 compared to the previous year.
Risks and uncertainties
Short-term risks and uncertainties are related to the maintenance of competitive
prices in the highly competitive IT service market and faltering demand for IT
services due to a possible turn in the economic situation.
Distribution of profit
On 31 December 2011, the parent company`s distributable funds totalled EUR
21,078,972.41. The company's Board of Directors proposes to the Annual General
Meeting that a dividend of EUR 1.70 per share be paid over the 2011 financial
period. The dividend is paid to shareholders who are recorded in the company`s
list of shareholders maintained by Euroclear Finland Oy by the record date of
the dividend payment, 27 March 2012. The dividend will be paid on 31 May 2012.
The Board of Directors also proposes that the Annual General Meeting authorises
the Board of Directors, in accordance with Chapter 6, section 13, paragraph 2 of
the Companies Act, to decide on an additional dividend of a maximum of EUR 1.90
per share within the limitations of the company's capital adequacy and operating
result. The authorisation is proposed to be valid until the beginning of the
next Annual General Meeting.
Timetable for financial reporting in 2012
The 2011 financial statements and annual report will be published on the Enfo
Oyj website on 1 March 2012, and the Annual General Meeting will be held on 22
March 2012.
The 2012 Q1 interim report will be published on 26 April 2012, the Q2 interim
report on 30 August 2012 and the Q3 interim report on 24 October 2012.
Tables
Tables available: www.enfo.se
For additional information, please contact: Arto Herranen, Managing Director,
tel. +358 44 7193 000 and Tero Kosunen, Finance Director, tel. +358 44 +358 015
(e-mail format: firstname.lastname(at)enfo.fi).
Enfo is a Nordic IT service company which provides companies and organisations
with easy-to-use IT services. In its services, Enfo utilises more than 45 years
of experience in IT and the competence of its expert IT professionals.
Approximately 800 top experts ensure that Enfo`s customers get the best out of
their IT. Enfo`s annual turnover is over EUR 140 million. For further
information about Enfo, please visit www.enfo.fi and www.enfo.se.
Distribution: main media and www.enfo.fi
Enfo Oyj
Business ID: 2081212-9
Visiting address: Kiveläntie 4, Kuopio, Finland
Postal address: P.O. Box 1582, FI-70461 Kuopio, Finland
Billing address: P.O. Box 5005, FI-70701 Kuopio, Finland
Switchboard: +358 20 54321
Fax: +358 20 543 2355
E-mail:firstname.lastname(at)enfo.fi
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Enfo via Thomson Reuters ONE
[HUG#1589390]
Unternehmensinformation / Kurzprofil:
Datum: 28.02.2012 - 08:00 Uhr
Sprache: Deutsch
News-ID 119223
Anzahl Zeichen: 18339
contact information:
Town:
Kuopio
Kategorie:
Business News
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