Enfo Oyj's interim report 3/2013 (1 January - 30 September 2013)
(Thomson Reuters ONE) -
Key points of the interim report
· Turnover in July-September increased by 7.2% and stood at EUR 34.0
million (31.7). In January-September, turnover rose by 5.6% to EUR 112.1 million
(106.1).
· Operating profit (EBIT) in July-September was up by 24.8%, totalling
EUR 3.4 million (2.7). In January-September, operating profit increased by
14.8% and amounted to EUR 8.6 million (7.5). The operating profit includes non-
recurring restructuring costs for Consulting Services amounting to EUR 0.7
million.
· Profit before taxes in July-September amounted to EUR 3.2 million
(2.6). In January-September, profit before taxes stood at EUR 7.7 million (6.7).
· Earnings per share in July-September were EUR 4.50 (2.35). Earnings
per share in January-September were EUR 8.72 (6.38).
· The twelve-month return on investment was 14.4% (12.8).
* In January-September, Enfo Group employed an average of 789 people (775). At
the end of September, the Group employed a total of 781 people (784).
· In January-September, cash flow from operating activities totalled EUR
6.5 million (4.3).
· The company estimates that the Group's turnover and operating profit
will grow from the previous year's level.
Market
Expectations of economic recovery have grown during the third quarter.
Companies' growth expectations are, however, still cautious, and this is also
reflected in decision-making for IT services.
Enfo expects the IT service market to grow by 2% in Finland and Sweden in 2013.
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
The business operations of Enfo's Outsourcing Services proceeded favourably in
spite of strong price competition in the market. In Finland, the company has
continued extensive projects related to the activation of VR's IT services,
which have kept service production busy. Enfo secured a service contract with
Helsinki Region Transport (HSL) in a public IT service tendering process. HSL
decided to purchase IT operation and support services, as well as services
related to the development of the IT environment from Enfo, which came out as
the best service provider in terms of the total score achieved in the tendering
process. The value of the five-year agreement is roughly EUR 3.7 million.
With regard to service development, an extensive ISO 9001 audit was carried out
on Enfo Service Desk in Finland. In addition to the Service Desk, it assessed
Enfo's quality system, management and sales, customer relationship management
and HR management, among other things. No deviations were found in the audit,
and the ISO 9001 remains in force. The audit was carried out by Inspecta
Sertifiointi Oy. In Sweden, the harmonisation of Outsourcing Services with
Outsourcing Services Finland is proceeding, and shared operating models are
being strongly developed. At the Karlskrona IT service centre, production has
been expanded with the growth of Outsourcing Services, and the activation of the
IT services of the care provider company Carema Care is keeping the unit busy.
In Industry Verticals, there has been demand for diverse information logistics
and unified communications solutions. Companies want to increase the efficiency
of their operations and invest in SaaS videoconferencing solutions. New
agreements were made with Turku Energia Oy on a comprehensive multi-channel
fault communication service, including the fault communication system and
extensive cloud-based IT support services by Enfo's Nordic data centres. Enfo's
own service production also includes extensive fault communication solutions,
utilising fault communications based on electronic communications in its own
services.
The development of Consulting Services has been slow in Sweden, especially with
regard to infrastructure consulting and price competition has continued to be
tough, impairing the development of profitability. Infrastructure consulting has
provided work in connection with projects for DS Smith AB, a specialist in
packaging materials, for example. The market has been more stable in application
integration consulting and business intelligence solutions, and demand has been
good. Enfo Pointer, specialising in business intelligence solutions, made a
significant agreement with the department store and shop chain Coop Norden AB
for a big data solution that is one of the first such solutions in Sweden ever.
With regard to application integration, new agreements have been made with e.g.
Coloplast, a provider of healthcare solutions, and the public transport company
Västtrafik. Towards the end of the review period, Consulting Services carried
out operational efficiency measures and restructuring both in Finland and Sweden
in order to keep the growth and development of operations stable in spite of
price competition in the market. In Finland, it was decided to embed consulting
professionals into the Outsourcing Services organisation. From now on,
consulting will be offered as part of the comprehensive portfolio of Finnish
Outsourcing Services, allowing customers to obtain it as part of their IT
service orders.
The operations of Information Logistics Services improved favourably during the
review period. The launch of outsourcing services for financial administration
is proceeding according to plan, and demand is expected to grow. Process
consulting for financial administration and direct debiting integrations have
been in high demand, and several financial administration survey projects were
launched during the review period. The demand for electronic invoicing has also
strengthened. The Nordic fitness and well-being chain Elixia signed an agreement
on direct debiting migration of its Finnish invoicing services, and as a result,
Enfo will annually process more than 300,000 Elixia e-invoices and direct
debiting payments.
Turnover
Enfo Group's turnover in July-September increased by 7.2% to EUR 34.0 million
(31.7). In January-September, turnover rose by 5.6% to EUR 112.1 million
(106.1). Strong demand for Information Logistics Services contributed to the
favourable development of the Group's turnover. The growth in turnover was also
strengthened by the market development of IT Services, especially in Outsourcing
Services in the company's main market areas.
Development of turnover by reporting segment
+------------------------------+--------+--------+--------+--------+---------+
| EUR million |7-9/2013|7-9/2012|1-9/2013|1-9/2012|1-12/2012|
+------------------------------+--------+--------+--------+--------+---------+
| IT Services | 24.5 | 24.0 | 83.5 | 82.4 | 111.8 |
+------------------------------+--------+--------+--------+--------+---------+
|Information Logistics Services| 9.6 | 8.3 | 29.1 | 25.5 | 35.4 |
+------------------------------+--------+--------+--------+--------+---------+
The turnover of Enfo's IT Services increased by 2.1% in July-September and stood
at EUR 24.5 million (24.0). In January-September, the turnover of IT Services
increased by 1.4% and stood at EUR 83.5 million (82.4). Good demand for
Outsourcing Services, both in Finland and Sweden, accelerated growth.
The turnover of Information Logistics Services in July-September increased by
15.3% and stood at EUR 9.6 million (8.3). In January-September, the turnover of
IT Services increased by 14.4% and stood at EUR 29.1 million (25.5). Underlying
the growth in turnover is the high market demand for automatic meter reading
(AMM) services, financial administration services and in particular for
consulting and direct debiting migrations
Profitability
Enfo Group's operating profit increased by 24.8% in July-September and stood at
EUR 3.4 million (2.7), comprising 9.9% of turnover (8.5%). Enfo Group's
operating profit increased by 14.8% in January-September and stood at EUR 8.6
million (7.5), comprising 7.7% of turnover (7.1%). Growth in profitability was
accelerated by Outsourcing Services performing better than planned in Sweden and
strengthening demand in Information Logistics Services.
The Group's profit before taxes in July-September stood at EUR 3.2 million
(2.6), comprising 9.4% of turnover (8.3%). In January-September, profit before
taxes amounted to EUR 7.7 million (6.7), comprising 6.9% of turnover (6.4%). The
Group's net financial costs in July-September stood at EUR 0.2 million (0.1) and
EUR 0.8 million (0.7) in January-September. The result in July-September was EUR
2.8 million (2.0), comprising 8.2% of turnover (6.2%). The result in January-
September was EUR 6.2 million (5.0), comprising 5.6% of turnover (4.7%).
Earnings per share in July-September were EUR 4.50 (2.35). In January-September,
earnings per share were EUR 8.72 (6.38).
Development of operating profit by reporting segment
+------------------------------+--------+--------+--------+--------+---------+
| EUR million |7-9/2013|7-9/2012|1-9/2013|1-9/2012|1-12/2012|
+------------------------------+--------+--------+--------+--------+---------+
| IT Services | 1.8 | 1.4 | 5.1 | 4.1 | 3.2 |
+------------------------------+--------+--------+--------+--------+---------+
|Information Logistics Services| 1.5 | 1.2 | 3.5 | 3.4 | 4.7 |
+------------------------------+--------+--------+--------+--------+---------+
The good result in IT Services was boosted by the success of Outsourcing
Services in the strongly competitive Finnish IT market. Swedish Outsourcing
Services growing faster than planned also improved the operating profit. The
growth in the operating profit for IT Services and the Group was slowed down by
weakening demand for consulting services, fierce price competition and non-
recurring restructuring costs amounting to EUR 0.7 million in the Consulting
Services segment.
The growth in the operating profit of Information Logistics Services is due to
increasing volumes in printing services and e-invoices. The strong demand for
direct debiting migration services and financial administration process surveys
also boosted the profitability of Information Logistics Services.
Financing and investments
Enfo's net investments stood at EUR 2.2 million (0.9) in July-September and EUR
3.9 million (2.6) in January-September. Investments were mainly targeted at the
data centre and printing equipment acquired through financial leasing agreements
and development expenses related to information systems. The company's equity
ratio was 45.6% (43.9%) at the end of September. Interest-bearing net
liabilities at the end of September amounted to EUR 30.1 million (32.5) and net
gearing was 58.1% (65.4%).
Personnel
In January-September, Enfo Group employed an average of 789 personnel (775). At
the end of September, the Group employed a total of 781 people (784).
Enfo's IT Services unit employed an average of 684 people in January-September
(678), and the Information Logistics Services unit employed an average of 82
people (73). Of Enfo's personnel, 350 (331) were employed in Finland and 440
(444) 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; Timo Kärkkäinen, Senior Portfolio Manager of
Ilmarinen Mutual Pension Insurance Company; and Soili Mäkinen, CIO at Cargotec
Corporation.
Enfo Group's management team members 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 Osmo Wilska (Outsourcing Services), Managing Director Tero Saksman
(Enfo Zender), Executive Vice President Lars Aabol (Consulting Services),
Managing Director Fredrik Bergman (Enfo Zystems), Managing Director Peter
Lörincz (Enfo Zipper) until 9 September 2013, Business Unit Director Johan
Wilhelmsson (Outsourcing Sweden), and Marketing Director Adam Ritzén.
Shares
On 30 September 2013, Enfo Oyj had a total of 589,120 shares. At the end of
September, the company had a total of 104 shareholders. The company has one
series of shares. Enfo owns 5,152 of its treasury shares.
At the end of September 2013, the ten largest shareholders in the company were:
Osuuskunta KPY, Ilmarinen Mutual Pension Insurance Company, Enfo Oyj's Personnel
Fund HR, Enfo Oyj, Einari Vidgrén Oy, Keskisuomalainen Oyj, Pohjois-Savon
Osuuspankki, Hannu Isotalo Oy, Savon Voima Oyj and Kallax Oy.
Forecast for likely future development
The company estimates that the Group's turnover and operating profit will grow
from the previous year's level in 2013.
Risks and uncertainties
Short-term risks and uncertainties are associated with maintaining competitive
prices and the demand for consulting services in the highly competitive IT
services market.
Timetable for financial reporting in 2013
Enfo Oyj will publish a financial statement release concerning the period of 1
January - 31 December 2013 on 25 February 2014. The timetable for financial
reporting in 2014 will be published in full, in connection with the financial
statement release.
Tables
Tables available in web: http://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 4441 200 (e-mail format:
firstname.lastname(at)enfo.fi).
Enfo is a Nordic IT company, offering IT outsourcing, business process
outsourcing, and niche IT consulting designed to help our customers in Sweden,
Norway, Denmark, Finland, to focus on their core business. With almost 50 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 www.enfo.fi and
www.enfo.se.
Distribution: main media and www.enfo.fi
Enfo Oyj
Business ID: 2081212-9
Visiting address: Viestikatu 7, 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
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#1737783]
Unternehmensinformation / Kurzprofil:
Datum: 24.10.2013 - 08:00 Uhr
Sprache: Deutsch
News-ID 308892
Anzahl Zeichen: 16761
contact information:
Town:
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Kategorie:
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