Enfo Oyj's interim report 1/2011 (1 January - 31 March 2011)
(Thomson Reuters ONE) -
Key points of the interim report
· Turnover in January-March fell by 1.7% and stood at EUR 35.0 million (35.6).
· Operating profit (EBIT) in January-March amounted to EUR 1.6 million (2.4).
· Profit before taxes in January-March amounted to EUR 1.4 million (1.9).
· Earnings per share in January-March were EUR 1.79 (2.48).
· The twelve-month return on investment was 9.3% (13.0).
· In January-March, Enfo Group employed an average of 706 people (667). At the
end of March, the Group employed a total of 715 people (656).
· Business cash flow in January-March stood at EUR -0.7 million (-0.2).
· If demand remains favourable, the company estimates that the Group's turnover
in 2011 will increase slightly from the previous year. Because of efficiency
measures planned to be carried out during the second quarter, operating profit
is estimated to improve from 2010.
Market
The future outlook of customer companies has stabilised within the company's
main market area in Finland and Sweden, offering possibilities for IT services
to grow. In 2011, the company estimates that the IT service market will grow by
slightly less than 3% in Finland and more than 4% in Sweden. Price competition
accelerated by the financial crisis has continued to be tough despite the
recovery of demand.
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. Enfo's Swedish business operations are reported
as part of the IT Services unit.
On 3 February 2011, Enfo acquired all the shares in Swedish Enjoy IT Integration
AB, a company specialised in system integration operations. Through the
acquisition, 17 integration service experts were transferred to Enfo in Sweden.
Business development
For Enfo's IT Services, the first three months of the year were challenging in
Finland due to tough price competition in the market: demand was at a good level
in the IT outsourcing market but strong price competition clearly reduced
business growth and development. Companies are largely entering their IT
agreements into bidding competitions and are willing to look for high-quality
but highly cost-efficient IT services.
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
consultation services, there was strong demand for development projects
concerning Windows 7 and workstation environments: new major projects are being
started and employment is at a high level.
In Information Logistics Services, business operations developed as planned,
with demand for total services remaining at a good level. Electronic services
are proceeding at an even pace. The operations of Information Logistics Services
will strongly involve service development associated with a turning point in the
energy industry, where emphasis will be placed on message transmission for
electricity trading and reporting practices for statutory energy use, together
with customers.
In Sweden, IT operations have advanced successfully and, in particular, there
has been strong demand for integration services during the reporting period.
Several projects are running and about to be started, which guarantees the
favourable development of consultation services: demand is expected to grow in
Sweden during the upcoming months. Current customers, such as Husqvarna AB, the
Stockholm County Council and Getinge AB, a company specialised in healthcare
products, expanded their service acquisitions. In addition to consultation
services, Getinge AB acquired IT outsourcing and system integration services
from Enfo.
On 28 March 2011, Enfo Oyj signed a business agreement with Relacom Finland Oy.
According to the agreement, Enfo's local support and expert services were
transferred to Relacom in Tampere, Turku and Lahti. Through the agreement, eight
of Enfo's service employees were transferred to Relacom Finland Oy as
established employees.
Turnover
Enfo Group's turnover decreased by 1.7% in January-March and stood at EUR 35.0
million (35.6). The decrease in turnover was largely affected by decelerated
sales in hardware and software. The decrease was evened out by the revival in
the Swedish IT market.
Development of turnover by reporting segment
+--------------------------------+----------+----------+-----------+
| EUR million | 1-3/2011 | 1-3/2010 | 1-12/2010 |
+--------------------------------+----------+----------+-----------+
| IT Services | 27.0 | 27.9 | 105.8 |
+--------------------------------+----------+----------+-----------+
| Information Logistics Services | 8.7 | 8.1 | 33.2 |
+--------------------------------+----------+----------+-----------+
Turnover of the IT Services unit decreased by 3.4% in January-March, amounting
to EUR 27.0 million (27.9). The decrease in turnover was affected by a decline
in hardware and software sales in Finland. The decrease was evened out by the
positive development of IT operations in Sweden.
Turnover of the Information Logistics Services unit increased in January-March
to EUR 8.7 million (8.1), representing growth of 6.7%. The positive development
in turnover was affected by good market demand for Information Logistics
Services.
Profitability
Enfo Group's profitability decreased in January-March, with operating profit
totalling EUR 1.6 million, comprising 4.5% of turnover (EUR 2.4 million and
6.7%).
The Group's profit before taxes in January-March stood at EUR 1.4 million (1.9),
comprising 4.1% of turnover (5.4%). The Group's net financing costs in January-
March stood at EUR 0.2 million (0.5). The result in January-March was EUR 1.0
million (1.4), comprising 3.0% of turnover (3.9%). Earnings per share in
January-March were EUR 1.83 (2.48).
Development of operating profit by reporting segment
+--------------------------------+----------+----------+-----------+
| EUR million | 1-3/2011 | 1-3/2010 | 1-12/2010 |
+--------------------------------+----------+----------+-----------+
| IT Services | 0.5 | 1.2 | 3.6 |
+--------------------------------+----------+----------+-----------+
| Information Logistics Services | 1.2 | 1.2 | 5.1 |
+--------------------------------+----------+----------+-----------+
The decrease in the operating profit of the Group and IT Services reflect the
impact of the tough price competition in the Finnish IT service market, and the
increase in personnel and other expenses. The operating profit of the Group and
IT Services was also strained by the costs associated with the start-up of
outsourcing operations in Sweden.
The operating profit of Information Logistics Services remained at the same
level as in the same period last year. Information Logistics Services secured
the good level of operating profit through good demand and effective
functioning.
Financing and investments
Enfo's net financing investments in January-March stood at EUR 2.0 million
(1.5). Investments consisted mainly of the acquisition of the new subsidiary and
data centre hardware. The hardware was financed through financial leasing
agreements.
The company's equity ratio was 42.9% (36.9) at the end of the period. Interest-
bearing net liabilities at the end of March amounted to EUR 26.3 million (30.7),
and net gearing was 61.0% (85.6).
Personnel
In January-March, Enfo Group employed an average of 706 people (667). At the end
of March, the Group employed a total of 715 people (656).
Enfo's IT Services unit employed an average of 617 people (579) in January-
March, while the Information Logistics Services unit employed an average of 72
people (74). Of Enfo's personnel, 367 (361) were employed in Finland and 339
(306) in Sweden.
On 10 February 2011, Enfo was selected as one of the best workplaces in Finland
in the survey organised by Great Place to Work Institute Finland. Enfo was in
11th position on the list, and the fourth best IT workplace in the general
series in Finland. In Sweden, Enfo went up to 7th position in the series of
major corporations in the Great Place to Work list.
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; Marja Liisa Kaario,
partner in Unicus Oy; and Jorma Tammenaho, Senior Portfolio Manager of Ilmarinen
Mutual Pension Insurance Company (until 24 March 2011). Timo Kärkkäinen, Senior
Portfolio Manager of unlisted share investments in Ilmarinen Mutual Pension
Insurance Company, started as a new member of Enfo Oyj's Board of Directors on
24 March 2011.
Enfo Group's Executive Management Team members are Managing Director Arto
Herranen, Finance Director Kati Kokkonen (Finance and Communication), HR
Director Maria Lundell (HR), Director Osmo Wilska (Outsourcing Services),
Director Nina Annila (Industry Verticals), Director Johan de Verdier
(Consultation Services), and Director Tero Saksman (Information Logistics
Services).
Annual General Meeting 2011
On 24 March 2011, Enfo Oyj's Annual General Meeting decided, in accordance with
the Board of Directors' proposal, that a dividend of EUR 5.00 per each issued
share be paid on the basis of the confirmed balance sheet for the financial
period ending on 31 December 2010, i.e. a total of EUR 2,933,210.00. The
dividend was paid on 15 April 2011.
According to the proposal of the Nomination Committee, the current members of
the Board of Directors - Tapio Hakakari, Hannu Isotalo, Marja Liisa Kaario and
Ossi Saksman - were elected as members of Enfo Oyj's Board of Directors.
According to the Nomination Committee's proposal, Timo Kärkkäinen was elected as
a new member of Enfo Oyj's Board of Directors. At the organisation meeting held
after the Annual General Meeting, the Board of Directors elected Tapio Hakakari
as the Chairman and Hannu Isotalo as the Deputy Chairman.
The Annual General Meeting authorised Enfo Oyj's Board of Directors to decide
upon the acquisition of the company's shares using the company's unrestricted
equity. The authorisation applies to the acquisition of a maximum of 10,000
shares at a minimum share price of EUR 1.00 and a maximum share price of EUR
120. The Board of Directors can decide upon the acquisition price and other
acquisition terms.
The Annual General Meeting also authorised Enfo Oyj's Board of Directors to
decide upon a rights issue. The authorisation applies to the assignation and/or
issue of no more than 10,000 shares. Shares can be assigned when financing or
completing any business acquisitions. Shares can be used as part of the
company's salary and incentive scheme for the company's personnel and the
personnel fund. The Board of Directors may decide upon the price and other terms
of assignment. The Annual General Meeting authorised the Board of Directors to
decide upon a rights issue concerning the issuance of a maximum of 113,500
shares at a minimum share subscription price of EUR 61.80 and a maximum share
subscription price of EUR 76.60. Shares can be conveyed in order to obtain
assets required in connection with a company or business acquisition.
Shares
On 31 March 2011, Enfo Oyj had a total of 586,720 shares. At the end of March,
Enfo had a total of 108 shareholders. The company has one series of shares. Enfo
owned 78 of its treasury shares at the end of March 2011.
As of the end of March 2011, 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, Kuopio Cooperative Bank, Hannu Isotalo Oy and Savon Voima
Oyj. Osuuskunta KPY's share of ownership is 82.3%.
Forecast for likely future development
If demand remains favourable, the company estimates that the Group's turnover in
2011 will increase slightly from the previous year. Because of efficiency
measures planned to be carried out during the second quarter, operating profit
is estimated to improve from 2010.
Risks and uncertainties
Short-term risks and uncertainties are related to the maintenance of competitive
prices in the highly competitive IT service market and any discontinuity factors
caused by legal amendments in the Finnish information logistics market. In the
long-term, the termination of the commitment arrangements for key individuals
may expose the company to a key personnel risk, which is typical in the
industry.
Timetable for financial reporting in 2011
The 2011 Q2 interim report will be published on 28 July 2011, and the Q3 interim
report on 27 October 2011.
Tables
Tables available:http://www.enfo.fi/press_releases
For additional information, please contact: Arto Herranen, Managing Director,
tel. +358 44 7193 000 and Kati Kokkonen, Finance Director, tel.
+358 44 7193 015 (e-mail format:firstname.lastname(at)enfo.fi)
Enfo is a Nordic IT service company that 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 700 top experts ensure that Enfo's customers get the most out of
their IT. Enfo's annual turnover is nearly EUR 140 million. For further
information about Enfo, please visitwww.enfo.fi and www.enfo.se.
Distribution: Key media andwww.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
Email: 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#1510052]
Unternehmensinformation / Kurzprofil:
Datum: 28.04.2011 - 12:00 Uhr
Sprache: Deutsch
News-ID 53995
Anzahl Zeichen: 16225
contact information:
Town:
Kuopio
Kategorie:
Business News
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