Enfo Oyj's interim report 3/2012 (1 January-30 September 2012)
(Thomson Reuters ONE) -
Key points of the interim report
· Turnover in July-September increased by 3.0% and stood at EUR 31.7
million (30.8). In January-September, turnover rose by 3.9% to EUR 106.1 million
(102.2).
· Operating profit (EBIT) in July-September increased by 64.4% and stood
at EUR 2.7 million (1.6). In January-September, operating profit grew by 81.0%
and stood at EUR 7.5 million (4.1).
· Profit before taxes in July-September amounted to EUR 2.6 million
(1.5). In January-September, profit before taxes stood at EUR 6.7 million (3.9).
· Earnings per share in July-September were EUR 2.35 (1.78). Earnings
per share in January-September were EUR 6.38 (4.89).
· The twelve-month return on investment was 12.8% (8.3).
* In January-September, Enfo Group employed an average of 775 people (710). At
the end of September, the Group employed a total of 784 people (761).
· In January-September, cash flow from operating activities totalled
2.3 million (4.3).
· The company estimates its turnover to reach the previous year's level
during the final quarter of 2012. However, operating profit during the final
quarter may fall behind the previous year's level due to non-recurring costs
arising from Consulting business area.
Market
Continuous uncertainty over the future economic development affects the
behaviour of customer companies within the company's main market area in Finland
and Sweden. The shift in demand for IT services towards projects that produce
cost savings and improve productivity opens new opportunities for the company's
Outsourcing Services but may weaken demand for the company's Consulting
Services, particularly in Sweden.
In 2012, the company estimates the IT service market to grow by 1-2% in Finland
and Sweden.
Group structure
Enfo Oyj is the parent company of Enfo Group. Enfo's business operations are
divided into two separately reported segments: IT Services and Information
Logistics Services.
Business development
In Finland, demand for Enfo's IT Services was strong regardless of the
unpredictability of the economic situation. Uncertainty over the economic
development increases companies' willingness to enter their services into
competitive bidding, which can be seen as fierce price competition on the IT
market. Examples of the competitiveness of Enfo`s IT Services on the market
include new service agreements signed. The IT service agreement between Enfo and
Fingrid Oyj, a main electric grid company, was extended over another three
years. The agreement covers workstation management for 300 workstations, server
monitoring and management, local support, and Service Desk services. The total
value of the agreement is approximately EUR 2 million. In Industry Verticals,
operations are proceeding as planned, and demand for Unified Communications is
on the increase. For Unified Communications, new agreements were signed, for
example, with the gaming and entertainment company Rovio. The agreement provides
Rovio with videoconferencing services.
On the Swedish IT market, the global uncertainty was seen in poorer demand for
consulting services during the reporting period. Customers are more cautious and
closely follow the development of the general economic situation. There is still
demand for consulting services that quickly reduce costs and improve the
efficiency of business operations, such as integration projects and SAP
services. Price competition on the market continues to be fierce. During the
reporting period, new consulting agreements were signed with the oil corporation
Preem AB, the financial company VolvoFinans and the media company Dagens
Industri. The development of IT outsourcing services is making good progress in
Sweden, with MyEnfo, an IT service management system, being adopted also in
Sweden. Through MyEnfo, Enfo can offer more efficient IT services of a higher
quality to customers.
Information Logistics Services proceeded as planned, even though competition is
getting more intense on the market. Demand for electronic services continues to
be strong, with new intelligent data processing services raising interest among
customers. The market is expecting new service concepts to analyse the
increasing amount of information and to report the information for business
needs. The termination of the national direct debiting system in a year raises
questions among consumer invoicers, which has a positive impact on the demand
for migration services within Information Logistics Services. The Hospital
District of Helsinki and Uusimaa (HUS) selected Enfo as its information
logistics operator in the transmission of its sales invoices and customer
letters. The agreement covers nearly 1.3 million invoices, 800,000 pages of
invoice attachments, and 100,000 customer letters, comprising some of all
customer letters sent by HUS every year. The total value of the agreement is
more than EUR 1.9 million over three years.
Turnover
Enfo Group's turnover in July-September increased by 3.0% and stood at EUR 31.7
million (30.8). In January-September, the Group's turnover grew by 3.9% to EUR
106.1 million (102.1). The growth in the Group's turnover particularly reflects
the increase in IT Services which was accelerated by the positive development of
Outsourcing Services in Sweden. The Group's turnover was decelerated by slow
hardware sales and tighter competition on the Finnish information logistics
market.
Development of turnover by reporting segment
+------------------------------+--------+--------+--------+--------+---------+
| EUR million |7-9/2012|7-9/2011|1-9/2012|1-9/2011|1-12/2011|
+------------------------------+--------+--------+--------+--------+---------+
| IT Services | 24.1 | 22.5 | 82.4 | 77.4 | 109.9 |
+------------------------------+--------+--------+--------+--------+---------+
|Information Logistics Services| 8.3 | 8.9 | 25.5 | 26.5 | 35.2 |
+------------------------------+--------+--------+--------+--------+---------+
The turnover of Enfo IT Services increased by 7.4% in July-September and stood
at EUR 24.1 million (22.5). In January-September, turnover of IT Services grew
by 6.4% to EUR 82.4 million (77.4).
The turnover of Information Logistics Services in July-September decreased by
6.1% and stood at EUR 8.3 million (8.9). In January-September, turnover
decreased by 4.0% and stood at EUR 25.5 million (26.5).
Profitability
Enfo Group's operating profit increased by 64.4% in July-September and stood at
EUR 2.7 million, representing 8.5% of turnover (EUR 1.6 million and 5.3%). The
growth in profitability is based on the last year's successful improved
efficiency measures within Finnish business operations. In July-September, the
positive development in operating profit was increased by the improvement in the
profitability of IT Services in Finland. The growth decelerated due to fierce
price competition in the Swedish IT market.
The Group's operating profit increased by 81.0% in January-September and stood
at EUR 7.5 million representing 7.1% of turnover (EUR 4.1 million and 4.0%). The
Group's profit before taxes in July-September stood at EUR 2.6 million (1.5),
comprising 8.3% of turnover (4.7%). In January-September, profit before taxes
amounted to EUR 6.7 million (3.9), comprising 6.4% of turnover (3.9%). The
Group's net financing costs stood at EUR 0.1 million (0.2) in July-September and
EUR 0.7 million (0.2) in January-September. The result in July-September was EUR
2.0 million, comprising 6.2% of turnover (EUR 1.0 million and 3.4%). In January-
September, the result was EUR 5.0 million (2.9), comprising 4.7% of turnover
(2.8%). Earnings per share in July-September were EUR 2.35 (1.78). Earnings per
share in January-September were EUR 6.38 (4.89).
Development of operating profit by reporting segment
+------------------------------+--------+--------+--------+--------+---------+
| EUR million |7-9/2012|7-9/2011|1-9/2012|1-9/2011|1-12/2011|
+------------------------------+--------+--------+--------+--------+---------+
| IT Services | 1.4 | 0.2 | 4.1 | 0.7 | 2.3 |
+------------------------------+--------+--------+--------+--------+---------+
|Information Logistics Services| 1.2 | 1.5 | 3.4 | 3.6 | 5.0 |
+------------------------------+--------+--------+--------+--------+---------+
Compared with the previous year, the result of IT Services was weakened by non-
recurring reorganisation costs within Finnish Outsourcing Services. In Finland,
the positive development of the profitability of IT Services was affected by the
efficiency measures and successful business operation in the IT market. The
profitability of IT Services was decelerated by development costs arising from
Outsourcing Services in Sweden and tighter price competition within Consulting
Services.
The operating profit for Information Logistics Services decreased in July-
September compared with the same period last year. This was caused by
competition becoming tighter on the Finnish information logistics market.
Financing and investments
Enfo's net financing costs stood at EUR 0.9 million (5.5) in July-September and
EUR 2.6 million (8.2) in January-September. Investments were mainly aimed at
data centre hardware acquired through financial leasing agreements and data
systems' development costs. The company's equity ratio was 43.9% (42.4%) at the
end of September. Interest-bearing net liabilities at the end of September
amounted to EUR 32.5 million (30.0) and net gearing was 65.4% (68.7%).
Personnel
In January-September, Enfo Group employed an average of 775 people (710). At the
end of September, the Group employed a total of 784 people (761).
Enfo's IT Services unit employed an average of 678 people in January-September
(618), and the Information Logistics Services unit employed an average of 73
people (75). Of Enfo's personnel, 331 (351) were employed in Finland and 444
(359) 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
Ilmarinen Mutual Pension Insurance Company.
Members of Enfo Group's Management Team were CEO Arto Herranen, CFO Tero Kosunen
(Finance and Communications), Senior Vice President Maria Lundell (HR),
Executive Vice President Nina Annila (Industry Verticals), Executive Vice
President Johan de Verdier (Consulting Services), Executive Vice President Osmo
Wilska (Outsourcing Services), Managing Director Lars Aabol (Enfo Zystems),
Managing Director Magnus Björk (Enfo Zipper), Managing Director Peter Lörincz
(Enfo Zecurity), Managing Director Tero Saksman (Enfo Zender), Business Unit
Director Johan Wilhelmsson (Outsourcing Sweden) and Marketing Director Adam
Ritzén.
On 18 September, Johan de Verdier, Executive Vice President and Deputy CEO, from
Sweden, announced his retirement from his current position at the end of October
2012. He will continue as a Senior Advisor at Enfo in various business
development projects and as a member of Enfo Sweden AB's Board of Directors.
Shares
On 30 September 2012, Enfo Oyj had a total of 589,120 shares. At the end of
September, the company had a total of 106 shareholders. The company has one
series of shares. Enfo owned 3,738 of its treasury shares at the end of
September 2012.
At the end of September, the company's ten largest owners were Osuuskunta KPY,
Pohjola Insurance Ltd, Ilmarinen Mutual Pension Insurance Company, Suomi Mutual
Life Assurance Company, Enfo Oyj's Personnel Fund HR, Einari Vidgrén Oy,
Keskisuomalainen Oyj, Enfo Oyj, Pohjois-Savon Osuuspankki and Hannu Isotalo Oy.
Osuuskunta KPY's share of ownership is 81.9%.
Forecast for likely future development
The company estimates its turnover to reach the previous year's level during the
final quarter of 2012. However, operating profit during the final quarter may
fall below the previous year's level due to non-recurring costs arising from
Consulting business area.
Risks and uncertainties
Short-term risks and uncertainties are associated with the maintenance of
competitive prices in the highly competitive IT service market.
The new strategic choices of the largest Nordic companies within the industry
may have an impact on the company's market position in the long-term.
Events after the review period
On 11 September, Enfo Oyj announced to corporatise the operations of Information
Logistics Services under Enfo Zender Oy. The company was entered in the trade
register on 5 September 2012 and started operating on 1 October 2012.
The Group's personnel working in Kuopio will be relocated to the office building
located on Viestikatu in Kuopio from February 2013. The company signed a lease
agreement on the building with Technopolis Plc in October. In addition, the
subsidiary Enfo Zender Oy has production facilities in Kelloniemi, Kuopio.
Lars Aabol has been appointed as Executive Vice President for Enfo's Consulting
Services business area and Managing Director of Enfo Sweden AB as of November
1, 2012. He is currently working as Managing Director of Enfo Zystems AB.
Timetable for financial reporting in 2012
Enfo Oyj will publish a financial statements release on 26 February 2013
concerning the period of 1 January - 31 December 2012. The timetable for
financial reporting in 2013 will be published in full, in connection with the
financial statement release.
Tables
Tables available in web: www.enfo.fi/en/about-us/investor-relations/financial-
reports/
For additional information, please contact: CEO Arto Herranen +358 44 7193 000
and CFO Tero Kosunen +358 50 4441 200 (e-mail format firstname.lastname(at)enfo.fi)
Enfo is a prominent Nordic IT company, offering packaged and efficient IT
outsourcing, business process outsourcing, and niche IT consulting designed to
help our customers in Sweden, Norway, Denmark, Finland, and around the world
focus on their core business. With over 45 years of experience developing proven
IT solutions and concepts, along with the deep expertise of our nearly 800 top
IT consultants, we make business processes simpler, smoother and smarter.
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: +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#1651724]
Unternehmensinformation / Kurzprofil:
Datum: 24.10.2012 - 09:01 Uhr
Sprache: Deutsch
News-ID 195592
Anzahl Zeichen: 17121
contact information:
Town:
Kuopio
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 161 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Enfo Oyj's interim report 3/2012 (1 January-30 September 2012)"
steht unter der journalistisch-redaktionellen Verantwortung von
Enfo (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
