Enfo Oyj's interim report 2/2012 (1 January-31 June 2012)
(Thomson Reuters ONE) -
Key points of the interim report
· Turnover in April-June increased by 2.5 % and stood at EUR 37.2
million (36.3). Turnover in January-June was up by 4.2% to EUR 74.3 million
(71.3).
· Operating profit (EBIT) in April-June increased by 145.3% to EUR 2.2
million (0.9). Operating profit in January-June was up by 92.1% and stood at EUR
4.8 million (2.5).
· Profit before taxes in April-June totalled EUR 2.0 million (1.1).
Operating profit in January-June increased by 66.0% to EUR 4.1 million (2.5).
· Earnings per share in April-June were EUR 1.97 (1.33). Earnings per
share in January-June were EUR 4.02 (3.11).
· Enfo Oyj's Board of Directors decided to pay an additional dividend of
EUR 1.90 per share, totalling EUR 1,112,225.80.
· The twelve-month return on investment was 12.0% (8.1).
· In January-June, Enfo Group employed an average of 771 people (705).
At the end of June, the Group employed a total of 785 people (697).
· Cash flow from operating activities in January-June stood at EUR 2.1
million (3.0).
· The company estimates its turnover and operating profit to show
continued growth in the third quarter of 2012.
Market
Prolonged uncertainty over future economic development is affecting customer
behaviour in Enfo's key markets, in Finland and Sweden. Although the shift in
demand for IT services to projects that offer cost savings and productivity
enhancement is providing new opportunities for Enfo's outsourcing services
business, it may also affect demand for consulting services, particularly in
Sweden.
Enfo estimates the overall IT service markets in Finland and Sweden to achieve a
growth rate of 1-2% in 2012.
Group structure
Enfo Oyj is the parent company of the Enfo Group. Enfo's business operations are
divided into two separately reporting segments: IT Services and Information
Logistics Services.
Business development
The Finnish IT markets have so far remained largely unaffected by the general
economic uncertainty seen elsewhere in Europe. Demand for Enfo's IT services was
strong, and customers' IT service expansion agreements kept the company busy. An
extensive IT service agreement was signed with the business management
consulting, audit and business arrangement specialist PwC
(PricewaterhouseCoopers), covering server, work station management and Service
Desk services for PwC's 700 employees in Finland. The value of the agreement,
extending over a three-year period, is significant.
Enfo also signed a major IT service agreement with Arek Oy, a developer of
earning-based pension information system. The agreement with Arek consists of
basic IT as well as the construction of a VDI (Virtual Desktop Infrastructure)
environment and service provision to 200 consultants. The value of the agreement
is approximately EUR 1.4 million. Enfo's Industry Verticals enjoyed strong
demand for business enhancement services development. Unified Communications
solutions continue to attract growing interest in customers in sectors such as
the energy industry, where significant investments are being made in the
development of communications solutions.
To strengthen its IT service development and to provide premium services to its
customers, Enfo introduced a new IT service management system MyEnfo in June
2012. MyEnfo will further improve the efficiency of daily processes and
services.
In Sweden, demand for consulting services in IT infrastructure, system
integration and identity management projects remained unchanged. The Swedish IT
market is showing signs of fierce price competition. Competitive bidding is
commonplace in connection with customer projects, which is naturally affecting
profitability development in Enfo's Consulting Services. During the reporting
period, Enfo signed several new partnership agreements, including an agreement
with Volvo IT. In addition, Microsoft selected Enfo Zipper, an IT infrastructure
consultation specialist, as its VIP Desktop Partner in 2012. The launch of the
outsourcing business is progressing in Sweden. Following the Relacom deal, Enfo
relocated its IT service production to Karlskrona. Enfo also signed its first
agreements in the Norwegian IT markets, where the Swedish business units provide
consulting services.
Information Logistics Services developed in line with expectations in the second
quarter. Enfo expanded its invoicing service selection to include invoice
material validation, enrichment and payment control services. Furthermore, as
stated in Enfo's new information logistics service strategy, the company is
focusing its service development on intelligent data processing. New service
agreements included the agreement signed with the Puhti joint municipal service
provider operating in the western Uusimaa region. The agreement covers e-invoice
and printing services. Enfo was also selected by IT hardware and software
wholesaler Tech Data Finland as its sales invoice operator. The information
logistics service agreement signed with Tech Data Finland covers the company's
e-invoices, paper invoices and payment reminders. Markets also showed increasing
interest in four-colour printing and the related services.
Turnover
Enfo Group's turnover increased by 2.5 % in April-June and stood at EUR 37.2
million (36.3). In January-June, turnover was up by 4.2% to EUR 74.3 million
(71.3). The favourable exchange rate of the Swedish krona and the acquisition of
subsidiaries in Sweden fuelled the Group's turnover growth. Meanwhile, factors
holding back growth included a decline in hardware sales and the tight
competitive situation in the Finnish information logistics market.
Development of turnover by reporting segment
+------------------------------+--------+--------+--------+--------+---------+
| EUR million |4-6/2012|4-6/2011|1-6/2012|1-6/2011|1-12/2011|
+------------------------------+--------+--------+--------+--------+---------+
| IT Services | 29.5 | 28.0 | 58.4 | 54.9 | 109.9 |
+------------------------------+--------+--------+--------+--------+---------+
|Information Logistics Services| 8.4 | 9.0 | 17.1 | 17.7 | 35.2 |
+------------------------------+--------+--------+--------+--------+---------+
IT Services turnover grew by 5.7% in April-June to EUR 29.5 million (28.0). In
January-June, turnover grew by 6.3% and totalled EUR 58.4 million (54.9).
In Information Logistics Services, turnover in April-June fell by 6.9 % to EUR
8.4 million (9.0). In January-June, Information Logistics Services recorded a
turnover of EUR 17.1 million (17.7), showing a decrease of 3.0%.
Profitability
In April-June, Enfo Group's profitability improved by 145.3% with operating
profit amounting to EUR 2.2 million, which represents 6.0% of turnover (EUR 0.9
million and 2.5%). In the comparison period last year, the Group's performance
was affected by the EUR 0.8 million non-recurring reorganisation costs in the
Outsourcing Services business in Finland. The Group's operating profit in
January-June amounted to EUR 4.8 million, or 6.4% of turnover (EUR 2.5 million
and 3.5%). The Group's profitability in January-June improved by 84.3% from the
comparison period a year earlier. This positive profitability trend is
attributable to the successful efficiency enhancement measures taken in Finland
last year. Meanwhile, fierce price competition in the Swedish IT markets eroded
profitability.
The Group's profit before taxes in April-June stood at EUR 2.0 million (1.1),
representing 5.4% of turnover (2.9%). Profit before taxes in January-June
totalled EUR 4.1 million (2.5), or 5.5% of turnover (3.5%). The Group's net
financing costs in April-June were EUR -0.2 million (0.1) and in January-June
EUR -0.7 million (0.0). The result in April-June was EUR 1.5 million (0.8),
accounting for 4.0% of turnover (2.2%). The result in January-June amounted to
EUR 3.1 million (1.8), or 4.1% of turnover (2.6%). Earnings per share in April-
June were EUR 1.97 (1.33) and in January-June EUR 4.02 (3.11).
Development of operating profit by reporting segment
+------------------------------+--------+--------+--------+--------+---------+
| EUR million |4-6/2012|4-6/2011|1-6/2012|1-6/2011|1-12/2011|
+------------------------------+--------+--------+--------+--------+---------+
| IT Services | 1.0 | 0.3 | 2.8 | 0.7 | 2.3 |
+------------------------------+--------+--------+--------+--------+---------+
|Information Logistics Services| 1.0 | 0.9 | 2.2 | 2.1 | 5.0 |
+------------------------------+--------+--------+--------+--------+---------+
In the comparison period last year, IT Services' performance was affected by
non-recurring reorganisation costs in the Outsourcing Services business in
Finland. Profitability improvement was driven by the efficiency measures taken
in Finland, as well as healthy sales development. Other factors contributing to
good performance included the positive market progress made in the project
business of the Industry Verticals unit. Development costs from the Outsoucing
Services business in Sweden, as well as tougher competition in Consulting
Services, undermined profitability development in IT services.
Information Logistics Services was able to grow its operating profit somewhat
from the comparison period. Efficiency improvement and development measures
taken and good customer care contributed to growth in operating profit.
Financing and investments
Enfo's net financing investments in April-June were EUR 1.0 million (0.7) and in
January-June EUR 1.6 million (2.7). Investments consisted primarily of the data
centre hardware acquired under financial leasing agreements. Investments also
include expenses associated with the MyEnfo service management system.
The company's equity ratio was 43.3% (43.1%) at the end of June. Interest-
bearing net liabilities at the end of June amounted to EUR 30.8 million (25.5),
and net gearing was 64.0% (59.3%).
Personnel
In January-June, Enfo Group employed an average of 771 people (705). At the end
of June, the Group employed a total of 785 people (697).
Enfo's IT Services unit employed an average of 683 people (613) in January-June,
while the Information Logistics Services unit employed an average of 72 people
(74). Of Enfo's personnel, 330 (356) were employed in Finland and 441 (348) in
Sweden during the 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
Ilmarinen Mutual Pension Insurance Company.
Enfo Group's Executive Management Team members were Arto Herranen, CEO; Tero
Kosunen, CFO; Maria Lundell, Senior Vice President, HR; Osmo Wilska, Executive
Vice President, Outsourcing Services; Nina Annila, Executive Vice President,
Industry Verticals; Johan de Verdier, Executive Vice President, Consulting
Services; and Tero Saksman, Executive Vice President, Information Logistics
Services.
Shares
On 30 June 2012, Enfo Oyj had a total of 589,120 shares and a total of 106
shareholders. The company has one series of shares. At the end of June 2012,
Enfo held 1,238 of its treasury shares.
At the end of June 2012, 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 shareholding represents 81.9 % of all shares.
Forecast for likely future development
The company estimates its turnover and operating profit to show continued growth
in the third quarter of 2012.
Risks and uncertainties
Short-term risks and uncertainties have to do with the company's ability to
maintain competitive prices on the highly competitive IT service market.
Increasing price competition is expected in the second half, particularly in
Sweden.
The new strategic decisions of the Nordic industry leaders may have an impact on
the company's market position in the long term.
Events after the review period
On 1 July 2012, five new members from Sweden joined Enfo Group's Nordic
Management Team. Members of the Management Team will now include Lars Aabol,
Managing Director, Enfo Zystems; Magnus Björk, Managing Director, Enfo Zipper;
Peter Lörincz, Managing Director, Enfo Zecurity; Johan Wilhemsson, Business Unit
Director, Outsourcing Sweden; and Adam Ritzén, Marketing Director.
On 1 August, 2012, Enfo acquired 2,500 treasury shares from Enfo Oyj's Personnel
Fund at a price of EUR 194,000.
As authorised by the Annual General Meeting of 22 March 2012 and in accordance
with chapter 13, section 6, paragraph 2 of the Limited Liability Companies Act,
Enfo Oyj's Board of Directors decided to pay an additional dividend of EUR 1.90
per outstanding share, totalling EUR 1,112,225.80. The dividend will be paid on
18 October 2012.
Timetable for financial reporting in 2012
The Q3/2012 interim report will be published on 24 October 2011.
Tables
Tables available in web: www.enfo.fi/en/about-us/investor-relations/financial-
reports/
For additional information, please contact: Arto Herranen, CEO, tel.
+358 44 7193 000 and Tero Kosunen, CFO, tel. +358 50 444 1200 (e-mail
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 more than EUR 140 million. For further
information about Enfo, please visit enfo.fi and 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: 020 54321
Fax: 020 543 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#1637239]
Unternehmensinformation / Kurzprofil:
Datum: 30.08.2012 - 08:02 Uhr
Sprache: Deutsch
News-ID 179188
Anzahl Zeichen: 16468
contact information:
Town:
Kuopio
Kategorie:
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