Enfo Oyj's interim report 3/2009 (1 January-30 September 2009)
(Thomson Reuters ONE) - Key points of the interim report* Turnover in July-September decreased by 13.0% and stood at EUR 28.5 million (32.7). In January-September, turnover fell by 8.2% to EUR 98.8 million (107.7).* Operating profit (EBIT) in July-September increased by 36.0% and stood at EUR 1.7 million (1.3). Operating profit in January-September stood at EUR 4.6 million (6.1).* Profit before taxes in July-September amounted to EUR 1.3 million (0.8). In January-September, profit before taxes stood at EUR 2.9 million (4.6).* Earnings per share in July-September were EUR 1.74 (1.06). Earnings per share in January-September were EUR 3.88 (5.97).* Twelve-month return on investment was 8.5% (14.7).* In January-September, Enfo Group employed an average of 674 people (696). At the end of September, the Group employed a total of 686 people (704).* Uncertainty continues in the IT market, and price competition is hampering market growth in the industry. While the general economic uncertainty continues, the company's turnover and profitability will decrease from the figures for 2008. The aim is to retain sufficient cash flow for the company and develop internal operations to improve profitability.MarketDuring this summer, the development of the global economy has shownsigns of stabilisation. Furthermore, increases in stock exchangequotations indicate positive expectations. However, businesses'expectations continue to be at an exceptionally low level. In thenear future, customers' IT investments will continue to be directedat services that serve to achieve cost savings in the short term.According to the company's estimate, the Finnish and Swedish ITmarket will be reduced by about 3% in 2009. In particular, the demandfor hardware sales and IT consultation services will decreasesignificantly.Group structureEnfo Oyj is the parent company of Enfo Group. Enfo's businessoperations are divided into two separately reported lines of business- IT Services and Solutions, and Information Logistics Services. Inthe new management and reporting model, IT System and ApplicationServices and IT Infrastructure Services, which were previouslyreported separately, 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's IT Services and Solutions segment succeeded well in theirbusiness operations in Finland, even though the price competition onthe Finnish IT outsourcing market stepped up during the reportingperiod. The IT Services and Solutions segment strengthened itsposition in providing IT services for the energy industry as SavonVoima, one of the largest sellers of energy services in Finland,outsourced all of its ICT services to Enfo. In the outsourcingprocess, four Savon Voima employees who were responsible for the ICTservices were transferred to Enfo. This is one of the firstlarge-scale ICT packages in the energy industry that have beenoutsourced to an IT service company. Windows 7 projects significantlyincrease employment in the IT expert services. Enfo was among thefirst service providers in Finland to launch Windows 7 projects forits customers. An agreement on the transition to the Windows 7workstation environment has been signed with OpusCapita, a companywhich produces software for financial and funds process management.Hardware sales continue poorly without any improvement in sight. Inapplication services, business operations are in good progress, andthe outlook is positive.In the Information Logistics Services, business operations havedeveloped steadily. Electronic invoicing services have increased involume, while demand has remained at a good level. Paper printing hasmaintained its position alongside electronic services, and printingvolumes have improved steadily. The Information Logistics Servicessegment signed new customer agreements with TampereenTietotekniikkakeskus and the telecommunications and media group, AinaGroup Oyj.Price competition on the Swedish IT market has continued to be tough.The strong investment in the improvement of sales in the Swedishoperations has produced results despite the poor situation in the ITmarket. At the end of the reporting period, Enfo's Swedish businessunits signed significant agreements with SonyEricsson, Tele2 and theStockholm County Council. In addition, Enfo acts as Volvo IT'spartner in the large IT project in the City of Stockholm.Furthermore, Windows 7 projects are raising interest among customersin Sweden.TurnoverEnfo Group's turnover in July-September decreased by 13.0% and stoodat EUR 28.5 million (32.7). In January-September, the Group'sturnover fell by 8.2% to EUR 98.8 million (107.7). The decrease inturnover was affected by poorer demand for IT operations in themiddle of the economic recession. Furthermore, the development of theInformation Logistics Services has slowed down slightly.Development of turnover by reporting segment+---------------------------------------------------------------------+| EUR million |7-9/2009|7-9/2008|1-9/2009|1-9/2008|1-12/2008||-----------------------+--------+--------+--------+--------+---------|| IT Services and | 21.8 | 25.7 | 78.2 | 87.2 | 115.3 || Solutions | | | | | ||-----------------------+--------+--------+--------+--------+---------|| Information Logistics | 7.2 | 7.6 | 22.3 | 22.7 | 31.0 || Services | | | | | |+---------------------------------------------------------------------+Turnover of Enfo IT Services and Solutions decreased by 15.3% inJuly-September and stood at EUR 21.8 million (25.7). InJanuary-September, turnover of the IT Services and Solutionsdecreased by 10.3% and stood at EUR 78.2 million (87.2). The decreasein turnover reflects a poorer demand for IT operations in Swedencaused by the general economic situation. In Finland, the decline inturnover has resulted from poorer demand for IT equipment.Turnover of the Information Logistics Services in July-Septemberamounted to EUR 7.2 million (7.6), representing a decrease of 4.7%.In January-September, turnover decreased by 2.0% and stood at EUR22.3 million (22.7). The decrease in turnover of the InformationLogistics Services was affected by decelerated development of thegeneral economic situation.ProfitabilityEnfo Group's operating profit increased by 36.0% in July-Septemberand stood at EUR 1.7 million (1.3), representing 6.0% of turnover(EUR 1.3 million and 3.8%). The Group's operating profit inJanuary-September amounted to EUR 4.6 million (6.1), comprising 4.7%of turnover (5.6%). The decrease in operating profit inJanuary-September was influenced by poorer demand on the Swedish ITmarket because of the general economic situation. Internal costsavings and improved operational efficiency have had a positiveeffect on the Group's profitability. A write-off of intangible rightsworth EUR 1.8 million related to the acquisition of Enfo Sweden AB isrecognised in the Group's operating profit (IFRS 3).The Group's profit before taxes in July-September stood at EUR 1.3million (0.8), comprising 4.6% of turnover (2.4%). InJanuary-September, profit before taxes amounted to EUR 2.9 million(4.6), comprising 3.0% of turnover (4.3%). The Group's net financingcosts stood at EUR 0.4 million (0.5) in July-September and EUR 1.7million (1.5) in January-September. The result in January-Septemberwas EUR 1.0 million (0.6). In January-September, the result was EUR2.2 million (3.4), comprising 2.2% of turnover (3.1%). Earnings pershare in July-September were EUR 1.74 (1.06). Earnings per share inJanuary-September were EUR 3.88 (5.97).Development of operating profit by reporting segment+---------------------------------------------------------------------+| EUR million |7-9/2009|7-9/2008|1-9/2009|1-9/2008|1-12/2008||-----------------------+--------+--------+--------+--------+---------|| IT Services and | 0.6 | 0.7 | 1.7 | 4.4 | 5.3 || Solutions | | | | | ||-----------------------+--------+--------+--------+--------+---------|| Information Logistics | 1.1 | 0.7 | 3.1 | 2.3 | 3.2 || Services | | | | | |+---------------------------------------------------------------------+Enfo IT Services and Solutions' operating profit in July-Septemberremained at the same level as in the same period last year. Operatingprofit in January-September is poorer than last year because demandon the Swedish IT market has been poor. In Finland, the developmentof the IT service market is more positive, and demand has remained ata good level. Hardware sales have been in steep decline in Finland.The Information Logistics Services segment's operating profit inJuly-September improved considerably compared with the same periodlast year. In addition, operating profit in the first nine months hasdeveloped favourably. The positive development of operating profithas been influenced by the success of the electronic invoice serviceson the market, printing volumes, and the improved efficiency and costsavings in internal operations.Financing and investmentsEnfo's net financing costs stood at EUR 0.2 million (0.3) inJuly-September and EUR 1.0 million (46.4) in January-September. Thecompany's equity ratio was 34.5% (29.6%) at the end of September.Interest-bearing net liabilities at the end of September amounted toEUR 31.0 million (37.9) and net gearing was 92.3% (115.2%).PersonnelIn January-September, Enfo Group employed an average of 674 people(696). At the end of September, the Group employed a total of 686people (704).Enfo's IT Services and Solutions unit employed an average of 578people in January-September (583), and the Information LogisticsServices unit employed an average of 82 people (92). Of Enfo'spersonnel, 409 (441) were employed in Finland and 265 (261) in Swedenduring the review period.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 Director of Swedish Operations Johan de Verdier.SharesOn 30 September 2009, the total number of Enfo Oyj shares was 564,256shares. An increase of 3,000 shares was registered in the totalnumber of shares on 28 August 2009. At the end of September, thecompany had a total of 96 shareholders. The company has one series ofshares. The company owned 140 of its treasury shares at the end ofSeptember 2009.As of the end of September, the company's ten largest owners wereOsuuskunta KPY, Pohjola Insurance Ltd, Ilmarinen Mutual PensionInsurance Company, Suomi Mutual Life Assurance Company, Enfo Oyj'sPersonnel Fund HR, Einari Vidgren Oy, Keskisuomalainen Oyj, KuopioCooperative Bank, Hannu Isotalo Oy and Savon Voima Oyj. OsuuskuntaKPY's share of ownership is 85.6%.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 willdecrease from the figures for 2008. The aim is to retain sufficientcash flow for the company and develop internal operations to improveprofitability.Risks and uncertaintiesThe uncertainty factors and risks in the near future are related tothe lengthening of the economic downtrend, as well as the tighteningof price competition in the reducing IT market. The investmentability and liquidity of customer companies may also be affected bythe lengthening of the economic uncertainty. Through its growth andinternationalisation, Enfo Group is exposed to currency and interestrate risks.Schedules for financial reportingEnfo Oyj will publish a financial statement release on 26 February2010 concerning the period of 1 January - 31 December 2009. Thetimetable for financial reporting in 2010 will be published in full,in connection with the financial statement release.TablesTables available: http://www.enfo.fi/press_releasesFor additional information, please contact: Arto Herranen, ManagingDirector, tel. +358 44 7193 000 and Kati Kokkonen, Finance Director,tel. +358 44 7193 015 (e-mail format: 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.se and www.enfo.fi.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: +358 2054321Fax: +358 20 543 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: 29.10.2009 - 08:01 Uhr
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