Enfo Oyj's interim report 2/2009 (1 January-30 June 2009)
(Thomson Reuters ONE) - Key points of the interim report* Turnover in April-June fell by 16.0% and stood at EUR 34.4 million (40.9). In January-June, turnover fell by 6.2% to EUR 70.4 million (75.0).* Operating profit (EBIT) in April-June reduced by 30.1% and stood at EUR 1.7 million (2.5). In January-June, operating profit amounted to EUR 2.9 million (4.8).* Profit before taxes in April-June stood at EUR 1.2 million (1.8). In January-June, profit before taxes stood at EUR 1.6 million (3.8).* Earnings per share in April-June were EUR 1.58 (2.40). In January-June, earnings per share were EUR 2.14 (4.91).* Twelve-month return on investment was 7.8% (17.2).* In January-June, the Group employed an average of 682 people (697). At the end of June, the Group employed a total of 682 people (716).* Uncertainty continues in the IT market, and price competition is hampering market growth in the industry. While the general financial uncertainty continues, the company's turnover and profitability will probably decrease from the figures for 2008. The aim is to retain sufficient cash flow for the company and develop internal operations to improve profitability.MarketThe estimates that the downtrend in the economy would reach a turningpoint were becoming more common during the second quarter of 2009.However, businesses' expectations for the economic trend are at ahistoric low, particularly in the service sector. Customers' ITinvestments will continue to be directed at services that serve toachieve cost savings in the short term. According to the company'sestimate, the Finnish and Swedish IT market will be reduced by about3% in 2009. In particular, the demand for hardware sales and ITconsultation services will decrease significantly.Group business operationsEnfo Oyj is the parent company of Enfo Group. Enfo's businessoperations are divided into two separately reported lines of business- IT Services and Information Logistics Services. In the newmanagement and reporting model, IT System and Application Servicesand IT Infrastructure Services, which were previously reportedseparately, are now combined into the single IT Services andSolutions segment. Enfo's Swedish business operations are reported aspart of the IT Services and Solutions unit.Business developmentEnfo IT Services and Solutions' business in the domestic marketdeveloped according to plan during the period under review. ITservice customers expanded their purchases of IT services, and thereal estate service company Are Oy and the infrastructure andconstruction service company Destia Oy were among those thattransferred their data centre operations to Enfo. No signs of pickingup were seen in hardware sales, however. Customers have extended thelife cycle of their infrastructure, which has a negative impact onthe demand for IT consultation services. Price competition continuesto be tight in expert services and projects. In terms of applicationservices, demand has grown noticeably and business is advancingsmoothly.As for Information Logistics Services, the business trend has beenpositive in the second quarter. Electronic services are growingsteadily, and demand has remained at a very good level. E-invoiceshave attracted extensive interest, and a large number of newelectronic service agreements have been concluded in the energysector, for example. The volumes of paper printing have also remainedsteady.Enfo's Swedish business was hampered by the poor situation in theSwedish IT market during the reporting period. Businesses arrangedcompetitive tendering for their IT agreements to reduce their ITexpenses. As a result, price competition is fierce in almost all ITservice areas, particularly in IT consultation and related projects.Enfo Sweden AB expanded its business in the public sector by winningseveral major public administration IT contracts together with itspartners in Stockholm and Karlstad, for example. The contracts willhave a crucial impact on growth in the long-term.TurnoverEnfo Group's turnover in April-June fell by 16.0% and stood at EUR34.4 million (40.9). In January-June, turnover fell by 6.2% and stoodat EUR 70.4 million (75.0). One of the reasons behind fallingturnover was the weaker demand for IT Services and Solutions.Turnover of Information Logistics Services developed as predicted.Development of turnover by reporting segment+---------------------------------------------------------------------+| EUR million |4-6/2009|4-6/2008|1-6/2009|1-6/2008|1-12/2008||-----------------------+--------+--------+--------+--------+---------|| IT Services and | 27.4 | 34.0 | 56.3 | 61.2 | 115.3 || Solutions | | | | | ||-----------------------+--------+--------+--------+--------+---------|| Information Logistics | 7.4 | 7.6 | 15.1 | 15.2 | 31.0 || Services | | | | | |+---------------------------------------------------------------------+Enfo IT Services and Solutions' turnover decreased by 19.3% inApril-June and stood at EUR 27.4 million (34.0). In January-June,turnover decreased by 8.0% and stood at EUR 56.3 million (61.2).Turnover was particularly affected by the weak demand for IT Servicesand Solutions in Sweden due to the poor economic conditions and thenoticeable slowing down of domestic hardware sales.The turnover of Information Logistics Services developed steadily inApril-June, amounting to EUR 7.4 million and showing a decrease of2.0%. In January-June, turnover decreased by 0.6% and stood at EUR15.0 million (15.1). The stable development of turnover wascontributed to by the positive market progress of electronic servicesand printing services. The demand for electronic services, inparticular, is at a very high level, and continues to show healthygrowth.ProfitabilityEnfo Group's operating profit fell by 30.1% in April-June and stoodat EUR 1.7 million (2.5), representing 5.0% of turnover (6.0%).Profitability was weaker in January-June compared with the sameperiod last year. The Group's operating profit in January-Juneamounted to EUR 2.9 million (4.8), comprising 4.2% of turnover(6.4%). Profitability was affected by the slowing down of the SwedishIT market and weaker demand. Internal efficiency measures and savingsin travel expenses, for example, continued to have a positive impacton the entire Enfo Group's profitability. A write-off of intangiblerights worth EUR 1.2 million related to the acquisition of EnfoSweden AB is recognised in the Group's operating profit (IFRS 3).The Group's profit before taxes in April-June stood at EUR 1.2million (1.8), comprising 3.6% of turnover (4.4%). In January-June,profit before taxes amounted to EUR 1.6 million (3.8), comprising 2.3% of turnover (5.1%). The Group's net financing costs stood at EUR0.5 million (0.7) in April-June and EUR 1.3 million (1.0) inJanuary-June. The result in April-June was EUR 0.9 million (1.3). InJanuary-June, the result was EUR 1.2 million (2.8), comprising 1.7%of turnover (3.7%). Earnings per share in April-June were EUR 1.58(2.40), while the figure in January-June was EUR 2.14 (4.91).Development of operating profit by reporting segment+---------------------------------------------------------------------+| EUR million |4-6/2009|4-6/2008|1-6/2009|1-6/2008|1-12/2008||-----------------------+--------+--------+--------+--------+---------|| IT Services and | 0.8 | 2.2 | 1.0 | 3.6 | 5.3 || Solutions | | | | | ||-----------------------+--------+--------+--------+--------+---------|| Information Logistics | 1.0 | 0.7 | 2.0 | 1.6 | 3.2 || Services | | | | | |+---------------------------------------------------------------------+Enfo IT Services and Solutions' operating profit weakenedconsiderably compared with the same period last year. Operatingprofit was reduced by the poor situation in the Swedish IT market, inparticular. Price competition has grown tighter compared with theexisting IT projects, and companies are not investing in informationtechnology as previously. In Finland, the situation in the IT servicemarket is more positive, and the demand for outsourced services hasremained moderate.Information Logistics Services increased their profitabilityhealthily compared with the same period last year. Businesses areclearly looking for cost savings and efficiency by making theirservices electronic, which has a positive impact on the demand forEnfo's Information Logistics Services.Financing and investmentsEnfo's net investments stood at EUR 0.2 million (1.6) in April-Juneand EUR 0.8 million (46.1) in January-June. The company's equityratio was 31.7% (28.8%) at the end of June. Interest-bearing netliabilities at the end of June amounted to EUR 32.4 million (38.8)and net gearing was 105.6% (114.6%).In May, Enfo published its investment in new, energy-efficient datacentre facilities located in Kuopio. The new facilities will becompleted by the end of 2009. The project is being implemented byTechnopolis Plc.PersonnelIn January-June, the Group employed an average of 682 people (697).At the end of June, the Group employed a total of 682 people (716).Enfo's IT Services and Solutions unit employed an average of 584people in January-June (590), and the Information Logistics Servicesunit employed an average of 84 people (93). Of Enfo's personnel, 420(433) were employed in Finland and 262 (264) in Sweden.On 13 May 2009, Enfo announced that it will lay off 13 people in theExpert Services unit of IT Services and Solutions for a period of 90days. The reason behind the lay-offs was the weakening demand forexpert work due to the general economic conditions.Board of Directors and managementEnfo Oyj's Chairman of the Board of Directors is Tapio Hakakari,Managing Director of Webstor Oy. The other members of the Board ofDirectors are: Hannu Isotalo, Chairman of the Board of Directors ofLujatalo Oy; Helena Piispa; Ossi Saksman, Chairman of the Board ofDirectors of Osuuskunta KPY; and Jorma Tammenaho, Portfolio Managerof Ilmarinen Mutual Pension Insurance Company.The Management Team of Enfo Group includes: Managing Director ArtoHerranen, Finance Director Kati Kokkonen, HR Director Maria Lundell,Development Director Pertti Silén, Director of Finnish OperationsOsmo Wilska and the Director of Swedish Operations Johan de Verdier.Annual General Meeting 2009On 25 March 2009, Enfo Oyj's Annual General Meeting decided, inaccordance with the Board of Directors' proposal, that a dividend ofEUR 1.00 per each issued share be paid on the basis of the confirmedbalance sheet for the financial period ending on 31 December 2008,i.e. a total of EUR 560,656.00. The dividend was paid on 6 April2009.According to the proposal of the Nomination Committee, the currentmembers of the Board of Directors, Tapio Hakakari, Hannu Isotalo,Helena Piispa, Ossi Saksman and Jorma Tammenaho, were elected asmembers of Enfo Oyj's Board of Directors. At the organisation meetingheld after the Annual General Meeting, the Board of Directors electedTapio Hakakari as the Chairman and Hannu Isotalo as the DeputyChairman.Furthermore, the Annual General Meeting authorised Enfo Oyj's Boardof Directors to decide upon the acquisition of the company's sharesusing the company's unrestricted equity. The authorisation applies tothe acquisition of a maximum of 5,000 shares at a minimum share priceof EUR 1.00 and a maximum share price of EUR 120. The Board ofDirectors can decide upon the acquisition price and other acquisitionterms.The Annual General Meeting also authorised Enfo Oyj's Board ofDirectors to decide upon a share issue. The authorisation applies tothe assignation and/or new issue of no more than 5,000 shares througha share issue. The shares may be used as consideration when thecompany acquires property for its business operations or asconsideration for financing or implementing potential corporateacquisitions. Shares can be used as part of the company's salary andincentive scheme for the company's personnel and the personnel fund.The Board of Directors may decide upon the price and other terms ofassignment. Enfo Oyj's Board of Directors was also authorised by theAnnual General Meeting to decide upon the special rights as referredto in Chapter 10 of the Limited Liability Companies Act and the issueof a negotiable debenture. The maximum number of new shares in EnfoOyj relating to the debenture is 100,000 shares.SharesOn 30 June 2009, the total number of Enfo Oyj shares was 561,256shares. At the end of June, the company had a total of 97shareholders. The company has one series of shares. The company owned140 of its treasury shares at the end of June 2009.Enfo Oyj has offered a share issue to Enfo Oyj's Personnel Fund HR aspart of the company's incentive scheme. Enfo Oyj's Personnel Fund HRhas subscribed for 3,000 of Enfo Oyj's shares at a price of EUR159,000.At the end of June, the company's ten largest shareholders wereOsuuskunta KPY, Pohjola Insurance Ltd, Ilmarinen Mutual PensionInsurance Company, Suomi Mutual Life Assurance Company, EinariVidgren Oy, Keskisuomalainen Oyj, Enfo Oyj's Personnel Fund HR,Kuopio Cooperative Bank, Hannu Isotalo Oy and Savon Voima Oyj.Osuuskunta KPY's share of ownership is 86%.Forecast of likely future developmentUncertainty continues in the IT market, and price competition ishampering market growth in the industry. While the general economicuncertainty continues, the company's turnover and profitability willprobably decrease from the figures for 2008. The aim is to retainsufficient cash flow for the company and develop internal operationsto improve profitability.Risks and uncertaintiesThe uncertainty factors and risks in the near future are related tothe lengthening and deepening of the economic downtrend, as well asthe tightening of price competition in the reducing IT market. Theinvestment ability and liquidity of customer companies may also beaffected by the lengthening of the economic uncertainty. Through itsgrowth and internationalisation, Enfo Group is exposed to currencyand interest rate risks.Timetable for financial reporting in 2009The interim report for January-September 2009 will be published on 29October 2009.TablesTables available:http://www.enfo.fi/general/Uploads_files/2Q2009report.PDFFor additional information, please contact: Arto Herranen, ManagingDirector, tel. +358 44 7193 000 and Kati Kokkonen, Finance Director,tel. +358 20 5432 015 (e-mail: firstname.lastname(at)enfo.fi)Enfo provides companies and corporations with easy-to-use IT servicesin Finland and Sweden. In its services, Enfo utilises its more than45 years of experience in the development of IT services and uses thebest hardware and software available from its partners. Approximately700 IT experts ensure that Enfo's customers get the best out of theirIT. Enfo's annual turnover is more than EUR 140 million. For furtherinformation about Enfo, please visit www.enfo.fi and www.enfo.se.Distribution: Principal media and www.enfo.fiEnfo OyjBusiness ID: 2081212-9Visiting address: Kiveläntie 4, Kuopio, FinlandPostal address: P.O. Box 1582, FI-70461 Kuopio,FinlandBilling address: P.O. Box 5005, FI-70701 Kuopio, FinlandSwitchboard: 020 54321Fax: 020 543 2355E-Mail: firstname.lastname(at)enfo.fiThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 30.07.2009 - 12:34 Uhr
Sprache: Deutsch
News-ID 4146
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 465 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Enfo Oyj's interim report 2/2009 (1 January-30 June 2009)"
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).
