Enfo Oyj's interim report 3/2011 (1 January - 30 September 2011)
(Thomson Reuters ONE) -
Key points of the interim report
· Turnover in July-September increased by 2.5% and stood at EUR 30.8
million (30.0). In January-September, turnover rose by 1.2% to EUR 102.2 million
(101.0).
· Operating profit (EBIT) in July-September increased by 12.7% and stood
at EUR 1.6 million (1.5). In January-September, operating profit decreased by
34.3% and stood at EUR 4.1 million (6.3).
· Profit before taxes in July-September amounted to EUR 1.5 million
(1.2). In January-September, profit before taxes stood at EUR 3.9 million (5.8).
· Earnings per share in July-September were EUR 1.78 (1.62). Earnings
per share in January-September were EUR 4.89 (7.57).
· The twelve-month return on investment was 8.3% (12.6).
* In January-September, Enfo Group employed an average of 710 people (676). At
the end of September, the Group employed a total of 761 people (691).
· In January-September, cash flow from operating activities totalled
4.3 million (4.7).
* The company estimates the Group's 2011 operating profit to be lower than the
year before. Turnover is estimated to stay at the same level as last year.
Market
Market conditions became challenging during the third quarter. The general
uncertainty over future economic development arising from problems in debt-laden
countries within the euro area has affected the behaviour of customer companies
within the company's main market areas of 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.
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 5 September 2011, Enfo acquired all shares in Pointer Sweden AB, a Swedish
consultation company which specialises in Business Intelligence (BI). Through
the transaction, 50 new IT professionals were transferred to Enfo.
Business development
Demand for Enfo's IT Services in the domestic IT outsourcing market was positive
during the reporting period. The measures aimed at improving the business
efficiency of Finnish outsourcing services have had a clear impact on business
development within the highly competitive domestic IT market.
In IT Services, new IT service agreements were signed with the Finnish
Parliament, among others. This particular agreement covers workstation
management for 1,200 workstations, life cycle services and consultation. In
addition, the University of Jyväskylä signed a five-year service agreement with
Enfo on identity management services, covering the environment of more than
20,000 users. Enfo's Help Desk service obtained national recognition when it was
named Best Finnish Help Desk Customer Service in 2011 in a competition organised
by NDI Nordic Oy on 7 September.
Information Logistics Services are making good progress, with demand for
electronic invoicing products being particularly active. On 19 September 2011,
Information Logistics Services published a consumer survey on electronic
invoices, which supports the development of e-invoice services. New customer
agreements were signed with accounting service companies. Furthermore, automatic
meter reading (AMM) customers have expanded their agreements.
Uncertainty in the global economy was reflected in the Swedish IT market during
the reporting period, and demand for new projects has experienced a slight
decrease. However, there is demand for consultation services that reduce costs
quickly and improve the efficiency of business operations, such as integration
projects. In addition, demand for infrastructure consultation projects remained
positive. New agreements were signed, notably within the banking sector, as well
as with Tetra Pak Sverige AB and Ericsson AB. The launch of IT outsourcing
services has proceeded as planned in Sweden.
Turnover
Enfo Group's turnover in July-September increased by 2.5% and stood at EUR 30.8
million (30.0). The Group's turnover increased by 1.2% in January-September and
stood at EUR 102.1 million (101.0). The increase in the Group's turnover
reflects the progress of Information Logistics Services within the market.
Development of turnover by reporting segment
+------------------------------+--------+--------+--------+--------+---------+
| EUR million |7-9/2011|7-9/2010|1-9/2011|1-9/2010|1-12/2010|
+------------------------------+--------+--------+--------+--------+---------+
| IT Services | 22.5 | 22.3 | 77.4 | 77.8 | 105.8 |
+------------------------------+--------+--------+--------+--------+---------+
|Information Logistics Services| 8.9 | 8.1 | 26.5 | 24.3 | 33.2 |
+------------------------------+--------+--------+--------+--------+---------+
Turnover of Enfo's IT Services increased by 0.7% in July-September and stood at
EUR 22.5 million (22.3). In January-September, IT Services' turnover decreased
by 0.5% and stood at EUR 77.4 million (77.8). The decrease in turnover reflects
the deceleration in hardware sales.
Information Logistics Services' turnover in July-September increased by 2.5% and
stood at EUR 8.9 million (8.1). This signalled a growth of 9.2 %. The increase
in turnover has been affected by the willingness of companies to invest in
electronic services and expand their service selections. In January-September,
turnover increased by 9.1% and stood at EUR 26.5 million (24.3). The positive
development in turnover was also influenced by the adoption of the automatic
measurement data collection service (AMM) as a product of Information Logistics
Services.
Profitability
Enfo Group's operating profit increased by 12.7% in July-September and stood at
EUR 1.6 million, representing 5.3% of turnover (EUR 1.5 million and 4.9%). The
growth in operating profit in July-September was affected by the recovery of
domestic IT outsourcing operations, thanks to efficiency measures, and the
positive result of Information Logistics Services.
The Group's operating profit decreased by 34.3% in January-September due to a
poor performance in the first half of the year and stood at EUR 4.1 million
(6.3), comprising 4.0% of turnover (EUR 6.3 million and 6.2%). The result of the
first nine months was hindered by expenses arising from the launch of
outsourcing operations in Sweden and non-recurring reorganisation costs within
outsourcing services in Finland during the second quarter. In addition, the
Group result reflects the reorganisation costs arising from the new commitment
and incentive scheme for Enfo Zuite AB's personnel and costs associated with the
acquisition of Pointer Sweden AB.
The Group's profit before taxes in July-September stood at EUR 1.5 million
(1.2), comprising 4.7% of turnover (4.0%). In January-September, profit before
taxes amounted to EUR 3.9 million (5.8), comprising 3.9% of turnover (5.7%). The
Group's net financing costs stood at EUR 0.1 million (0.2) in July-September and
EUR 0.2 million (0.5) in January-September. The result in July-September was EUR
1.0 million (0.9). In January-September, the result was EUR 2.9 million (4.3),
comprising 2.8% of turnover (4.2%). Earnings per share in July-September were
EUR 1.78 (1.62). Earnings per share in January-September were EUR 4.89 (7.57).
Development of operating profit by reporting segment
+----------------------+--------+--------+--------+------------------+---------+
| EUR million |7-9/2011|7-9/2010|1-9/2011| 1-9/2010 |1-12/2010|
+----------------------+--------+--------+--------+------------------+---------+
| IT Services | 0.2 | 0.2 | 0.7 | 2.7 | 3.6 |
+----------------------+--------+--------+--------+------------------+---------+
|Information Logistics | 1.5 | 1.3 | 3.6 | 3.7 | 5.1 |
| Services | | | | | |
+----------------------+--------+--------+--------+------------------+---------+
The operating profit of Enfo's IT Services remained at the same level compared
with the same period last year. The operating profit of IT Services is limited
by non-recurring reorganisation costs within outsourcing services in Finland
during the second quarter and expenses arising from the launch of outsourcing
operations in Sweden.
The Information Logistics Services segment's operating profit in July-September
improved compared with the same period last year. The favourable development of
operating profit was affected by positive demand for electronic services and the
expansion of customers' services.
Financing and investments
Enfo's net financing costs stood at EUR 5.5 million (0.7) in July-September and
EUR 8.2 million (2.7) in January-September. The investments were mainly
allocated to the acquisition of Pointer Sweden AB. The company's equity ratio
was 42.4% (43.1%) at the end of September. Interest-bearing net liabilities at
the end of September amounted to EUR 30.0 million (29.3) and net gearing was
68.7% (69.8%).
Personnel
In January-September, Enfo Group employed an average of 710 people (676). At the
end of September, the Group employed a total of 761 people (691).
Enfo's IT Services unit employed an average of 618 people in January-September
(588), and the Information Logistics Services unit employed an average of 75
people (73). Of Enfo's personnel, 351 (359) were employed in Finland and 359
(317) 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; Marja Liisa Kaario,
partner of 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 Tero Kosunen (Finance and Communications), 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).
Shares
On 30 September 2011, Enfo Oyj had a total of 589,120 shares. At the end of
September, the company had a total of 108 shareholders. The company has one
series of shares. Enfo owned 78 of its treasury shares at the end of September
2011.
At the end of September, 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
The company estimates the Group's 2011 operating profit to be lower than the
year before. Turnover is estimated to stay at the same level as last year.
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 change in the economic situation.
Events after review period
Relacom, a company offering network services in Northern Europe, outsourced its
Swedish IT operations and service centre to Enfo Oyj through an agreement signed
on 7 October 2011. As a result, 24 Relacom employees were transferred to Enfo.
The company has adopted a new commitment and incentive scheme for the personnel
of Enfo Zuite AB, a Swedish company engaged in SAP consultation operations.
Through the new scheme, the corporate structure was reorganised, with key
employees becoming part owners within new business units. The change entered
into force on 1 October 2011.
Timetable for financial reporting in 2011
Enfo Oyj will publish a financial statement release on 28 February 12 concerning
the period 1 January - 31 December 2011. The timetable for financial reporting
in 2012 will be published in full in connection with the financial statement
release.
Tables
Tables available: http://www.enfo.fi/press_releases
For additional information, please contact: Managing Director Arto Herranen,
tel. +358 44 7193 000, or Finance Director Tero Kosunen, tel. +358 50 4441 200,
(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 800 top experts ensure that Enfo's customers get the best out of
their IT. 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: principal 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#1558448]
Unternehmensinformation / Kurzprofil:
Datum: 27.10.2011 - 08:01 Uhr
Sprache: Deutsch
News-ID 80837
Anzahl Zeichen: 15527
contact information:
Town:
Kuopio
Kategorie:
Business News
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