Enfo Oyj's interim report 2/2011 (1 January-30 June 2011)
(Thomson Reuters ONE) -
Key points of the interim report
· Turnover in April-June increased by 2.9% and stood at EUR 36.3 million
(35.3). In January-June, turnover rose by 0.6% to EUR 71.3 million (70.9).
· Operating profit (EBIT) in April-June decreased by 62.8% and stood at
EUR 0.9 million (2.4). In January-June, operating profit decreased by 48.5% and
amounted to EUR 2.5 million (4.8). Non-recurring restructuring costs for
Outsourcing Services in Finland amounting to EUR 0.8 million are recognised in
the operating profit.
· Profit before taxes in April-June stood at EUR 1.1 million (2.7). In
January-June, profit before taxes decreased by 46.0% and stood at EUR 2.5
million (4.6).
· Earnings per share in April-June were EUR 1.33 (3.48). In January-
June, earnings per share were EUR 3.11 (5.96).
· The twelve-month return on investment was 8.1% (14.3).
· In January-June, the Group employed an average of 705 people (669). At
the end of June, the Group employed a total of 697 people (690).
· In January-June, cash flow from operating activities totalled EUR 3.0
million (1.5).
· If demand remains favourable, the company estimates that the Group's
turnover in 2011 will increase compared to the previous year. Due to efficiency
measures carried out during the second quarter, operating profit is estimated to
stand at same level as 2010.
Market
The overall economic development has remained positive thus far in the company's
main market area in Finland and Sweden. In 2011, the company estimates that the
IT service market will grow by slightly more than 3% in Finland and more than
4% in Sweden. Price competition has continued to be tough despite increasing
demand. Threat of inflation and the problems in debt-ridden countries within the
Eurozone are causing uncertainties, which may affect the behaviour of customer
companies in the latter half of the year.
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.
Business development
The IT service market has demand but price competition continues to be extremely
tough. Companies are looking for high quality yet very cost-effective IT
services.
During the second quarter of the year, efficiency and restructuring measures
related to the Outsourcing Services in Finland were implemented at Enfo's IT
Services, the purpose of which was to develop the operational model of the
outsourcing services in order to ensure the steady business growth and
development in the long run regardless of tough price competition.
During the period under review, the IT Services entered into new service
agreements, for example with PACCOR Finland Oy, specialised in packaging
solutions, as well as VVO Group, Finland's largest housing service provider. The
IT service agreement signed between VVO and Enfo includes Service Desk,
workstation management, IT, infrastructure and data communications services, as
well as server monitoring and management services. In industry-specific
services, the Helsinki Regional Transport Authority (HSL) ordered the renewal of
ticket inspecting devices from Enfo.
During the period under review, the demand for Enfo's Information Logistics
Services was stable and business developed according to expectations. The growth
in electronic services has continued at a good level. In Information Logistics
Services, new agreements were signed with, for example, companies specialised in
debt collection and credit data services.
In Sweden, IT operations have developed at a good rate. The demand for services
has remained at a good level and is expected to grow positively. The
infrastructure project boosted the advance of consultation services on the
market and the demand for integration services has been at an extremely good
level. During the period under review, Enfo signed several service agreements,
for example with Volvo Cars Corporation and Scania AB. In June, Enfo Zipper,
specialised in consultation services, was selected as the Microsoft Solution
Partner 2011 in Sweden.
Turnover
The Enfo Group's turnover in April-June increased by 2.9% and stood at EUR 36.3
million (35.3).Consolidated turnover increased by 0.6% in January-June,
totalling EUR 71.3 million (70.9). The Group's turnover was positively affected
by the positive development seen in the IT market in Sweden and the success of
Information Logistics Services in the market.
Development of turnover by reporting segment
+------------------------------+--------+--------+--------+--------+---------+
| EUR million |4-6/2011|4-6/2010|1-6/2011|1-6/2010|1-12/2010|
+------------------------------+--------+--------+--------+--------+---------+
| IT Services | 28.0 | 27.7 | 54.9 | 55.7 | 105.8 |
+------------------------------+--------+--------+--------+--------+---------+
|Information Logistics Services| 9.0 | 8.1 | 17.7 | 16.2 | 33.2 |
+------------------------------+--------+--------+--------+--------+---------+
The turnover of Enfo's IT Services increased by 0.8% in April-June and stood at
EUR 28.0 million (27.7). In January-June, turnover of IT Services decreased by
1.3% and stood at EUR 54.9 million (55.7). The good demand in the Swedish IT
market and especially for consultation services contributed positively to the
increase of turnover during the period under review. The lacklustre progress of
in hardware and software sales in Finland affected the turnover negatively
during the first six months of the year.
Turnover of Information Logistics Services in April-June increased by 11.6% and
stood at EUR 9.0 million (8.1). In January-June, turnover of Information
Logistics Services increased to EUR 17.7 million (16.2). This signalled a growth
of 9.1%. Good market demand for electronic and printing services contributed to
the positive development.
Profitability
Enfo Group's operating profit fell by 62.8% in April-June and stood at EUR 0.9
million, representing 2.5% of turnover (EUR 2.4 million and 6.9%). The Group's
operating profit in January-June amounted to EUR 2.5 million, comprising 3.5% of
turnover (EUR 4.8 million and 6.8%).
The Group's profit before taxes in April-June stood at EUR 1.1 million,
comprising 2.9% of turnover (2.7.and 7.6%). In January-June, profit before taxes
amounted to EUR 2.5 million (4.6), comprising 3.5% of turnover (6.5%). The
Group's net finance costs in April-June stood at EUR -0.1 million (-0.2) and EUR
0.0 million (0.2) in January-June. The result in April-June was EUR 0.8 million,
comprising 2.2% of turnover (2.0 and 5.6%). In January-June, the result was EUR
1.8 million, comprising 2.6% of turnover (EUR 3.4 million and 4.7%). Earnings
per share in April-June were EUR 1.33 (3.48), in January-June EUR 3.11 (5.96).
Development of operating profit by reporting segment
+------------------------------+--------+--------+--------+--------+---------+
| EUR million |4-6/2011|4-6/2010|1-6/2011|1-6/2010|1-12/2010|
+------------------------------+--------+--------+--------+--------+---------+
| IT Services | 0.3 | 1.3 | 0.7 | 2.5 | 3.6 |
+------------------------------+--------+--------+--------+--------+---------+
|Information Logistics Services| 0.9 | 1.2 | 2.1 | 2.4 | 5.1 |
+------------------------------+--------+--------+--------+--------+---------+
The decrease of the Group's and IT Services profitability was affected by the
EUR 0.8 million non-recurring restructuring costs in Outsourcing Services in
Finland. Profitability was further decreased by costs related to the start-up of
outsourcing services in Sweden.
The operating profit of Information Logistics Services decreased compared with
the same period last year. Operating profit was strained by increased human
resources costs and business development investments.
Financing and investments
Enfo's net investments stood at EUR 0.7 million (0.5) in April-June and EUR 2.7
million (2.0) in January-June. Net investments comprised the acquisition of data
centre hardware. The hardware was financed through financial leasing
agreements. In addition to data centre hardware, investments in January-June
included the acquisition of a new subsidiary.
The company's equity ratio was 43.1% (39.9%) at the end of June. At the end of
June, interest-bearing net liabilities amounted to EUR 25.5 million (31.6) and
net gearing was 59.3% (81.2%).
Personnel
In January-June, the Group employed an average of 705 people (669). At the end
of June, the Group employed a total of 697 people (690).
Enfo's IT Services unit employed an average of 613 people (582) in January-June,
while the Information Logistics Services unit employed an average of 74 people
(72).Of Enfo's personnel, 356 (357) were employed in Finland and 348 (312) in
Sweden during the review period.
In the cooperative negotiations related to Enfo Oyj's Outsourcing Services in
Finland in May 2011, a reduction of 16 person-years realised primarily through
voluntary personnel arrangements was agreed upon.
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 Timo Kärkkäinen, Senior Portfolio Manager of Ilmarinen
Mutual Pension Insurance Company.
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). In May 2011, Johan de Verdier, M.Sc., Director of Enfo Consultation
Services, was appointed the deputy managing director of Enfo Group. In the
future, Mr de Verdier, will also have overall responsibility for Enfo's
marketing activities in addition to being the head of the Consultation Services.
Kati Kokkonen, M.Sc. (Economics and Business Administration), Enfo's Finance
Director since 2007, will leave her position in September 2011 to work for
another employer. M.Sc. Tero Kosunen has been appointed as Enfo Oyj's new
finance director. He is currently employed by Oy Danfoss Ab. Tero Kosunen will
take over as finance director in the beginning of October.
Shares
On 30 June 2011, Enfo Oyj had a total of 589,120 shares. At the end of June, the
company had a total of 108 shareholders. The company has one series of shares,
and owned 78 of its treasury shares at the end of June 2011.
Enfo Oyj has offered a share issue to Enfo Oyj's Personnel Fund HR as part of
the company's incentive scheme. Enfo Oyj's Personnel Fund HR subscribed for
2,400 of Enfo Oyj's shares at a price of EUR 183,840 on 17 May 2011.
At the end of June, 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 share of ownership is 81.9%.
Forecast for likely future development
If demand remains favourable, the company estimates that the Group's turnover in
2011 will increase compared to the previous year. Due to efficiency measures
carried out during the second quarter, operating profit is estimated to stand at
same level as 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 faltering demand for IT
services due to a possible turn in the economic situation. 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 Q3 interim report will be published 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 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 700 top experts ensure that Enfo's customers get the best out of
their IT. Enfo's turnover is nearly 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: 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#1534196]
Unternehmensinformation / Kurzprofil:
Datum: 28.07.2011 - 12:01 Uhr
Sprache: Deutsch
News-ID 56796
Anzahl Zeichen: 15381
contact information:
Town:
Kuopio
Kategorie:
Business News
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