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Fri 16 Feb 2018 08:00:00 AM EET
SCANFIL PLC FINANCIAL STATEMENTS RELEASE 16 FEBRUARY 2018 8.00 A.M.
SCANFIL GROUP’S FINANCIAL STATEMENTS FOR 1 JANUARY – 31 DECEMBER 2017
Year 2017: Strong operating margin benefitted from increased sales and lighter cost structure
October – December 2017
- Turnover totalled EUR 144.4 million (Q4 2016: 122.3), up to 18.1%
- Operating profit EUR 9.6 million (2.8, before adjustment items 4.7),
6.6% (2.3%, before adjustment items 3.8%) of turnover
- Profit was EUR 10.5 million (1.3)
- Earnings per share amounted EUR 0.16 (0.02, before adjustment items 0.05)
January – December 2017
- Turnover totalled to EUR 529.9 million (1-12/2016: 508.0), up to 4.3%
- Operating profit EUR 31.3 million (7.2, before adjustment items 22.3 ),
5.9% (1.4, before adjustment items 4.4%) of turnover
- Profit for the review period was EUR 25.8 million (0.1)
- Earnings per share were EUR 0.40 (0.00, before adjustment items 0.25)
There are no reportable adjustment items during the financial year. Adjustments for the year 2016 include the costs of the reorganisation, sale and closure of poorly profitable units of PartnerTech AB's plant network and the Metal Precision business acquired in the year 2015.
Scanfil estimates, that its turnover for 2018 will be EUR 530 - 570 million and the operating profit will amount to EUR 33 - 37 million.
In 2020, Scanfil aims to reach sales of EUR 600 million and 7% operating profit level thru organic growth.
Petteri Jokitalo, CEO:
“The year ended with a strong fourth quarter. Excellent customer demand ensured the growth of the turnover with 18 % from the previous year with 6.6 % operating profit. During the whole year 2017, we went firmly forward; turnover grew 4.3 % and reported operating profit 31.3 million euro more than quadrupled compared to 2016. We managed to reach our targeted about 6% operating profit level for the whole year. Net cash flow from operating activities increased by 29% and return on equity was 22.2%.
We made headway in the implementation of our strategy. The optimization of the factory network was completed already in the first half of the year which now can be seen in lower cost structure and cost-benefits. Our investments were record-high; the extension of the electronics factory in Sieradz was completed in December, and our integration factory in Atlanta moved to a bigger facility during the summer. In practice, we doubled our space in both of these factories.
We purchased and took into use new SMT-lines in our electronics factories in Suzhou, Sieradz and Malmö. In Myslowice integration factory we invested in sheet metal parts manufacturing capacity. Investments have been made based on already visible customer demand and to enable that we reach our future growth targets. We are in a good position for 2018.
Our current broad customer base gives us a good foundation to increase our sales for long in the future. In new customer acquisition, we are active in especially in Nordic countries and Central Europe. Our target is to differentiate from the competition with our excellent performance and to be the trusted manufacturing partner to our customers. The needs of our customers are always in the center when developing our operations.
I am pleased with the development of Scanfil in 2017. I want to thank our dedicated personnel, customers and other stakeholders.”
The Group’s turnover for January - December was EUR 529.9 (508.0) million. The Group's operating profit for January – December was EUR 31.3 (7.2) million, representing 5.9% (1.4%) of turnover. The operating profit for the previous year includes adjustments total of EUR 15.1 million, consisting of the costs of the reorganisation, sale and closure of poorly profitable units of PartnerTech AB's plant network and the Metal Precision business acquired in the year 2015. Operating profit grew 40.2% compared to the adjusted operating profit of the corresponding period of the previous year. Operating profit without adjustments in January – December 2016 was EUR 22.3 million, 4.4% of turnover.
The net profit for the review period was EUR 25.8 (0.1) million. The net profit for the comparison period without adjustments was EUR 15.7 million. The result includes EUR 2.4 million non-recurring capital gains on discontinued units recognized in financial items. The batch has no impact to cash flow. In addition, deferred taxes include tax benefit related to the Polish special economic zone as well as withholding tax on dividends based on inter company dividend distribution plans for the coming years. Their positive net effect is EUR 0.5 million on the net profit.
Earnings per share for the review period were EUR 0.40 (0.00). In the previous year, the earnings per share without adjustments were EUR 0.25. Return on investment was 19.4 (4.6)%. The effect of booked translation differences and above mentioned taxes is EUR 0.05 on the earnings per share.
The Group's turnover for October–December amounted to EUR 144.4 (122.3) million, with the increase of 18.1% compared to the corresponding period of previous year. Operating profit was EUR 9.6 (2.8) million, or 6.6% (2.3%) of turnover. Operating profit more than tripled compared to the fourth quarter of the previous year. The previous year's fourth quarter included EUR 1.9 million adjustment items.
Annual General Meeting 2018 and Board of Directors’ proposals to the Annual General Meeting
Scanfil plc’s Annual General Meeting will be held on 25 April 2018 at the company’s head office in Sievi, Finland.
Dividend for 2017
The company aims to pay dividends amounting to approximately 1/3 of its annual result on a regular basis.
The parent company's distributable funds are EUR 37,164,484.87 including retained earnings EUR 8,785,218.25. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.11 (0.09) per share be paid for a total of EUR 7,028,498.29 for the financial year ending on 31 December 2017 .The dividend matching day is 27 April 2018. The dividend will be paid to those shareholders who, on the matching day, are entered in the Company’s Register of Shareholders, kept by Euroclear Finland Ltd. The dividend payment day is 7 May 2018.
No significant changes have taken place in the company’s financial position since the end of the financial year. In the view of the Board of Directors, the proposed dividend pay-out will not put the company’s liquidity at risk.
The proposal of Scanfil plc's nomination committee to the General Meeting for the composition of Scanfil plc's Board of Directors will be published in connection with the invitation to the General Meeting.
The company publishes a notice of the Annual General Meeting later separately.
Publication of financial releases
This stock exchange release is a summary of the Scanfil Group’s Financial Statements Release 1 January – 31 December, 2017 and includes the most relevant information of the report. The complete report is attached to this release as a pdf file and is also available on the company’s website at www.scanfil.com.
CEO Petteri Jokitalo
Tel +358 8 4882 111
Distribution NASDAQ OMX, Helsinki
Scanfil is an international contract manufacturer and system supplier for the electronics industry with 40 years of experience in demanding contract manufacturing. Scanfil provides its customers with an extensive array of services, ranging from product design to product manufacturing, material procurement and logistics solutions. Vertically integrated production and a comprehensive supply chain are the foundation of Scanfil’s competitive advantages: speed, flexibility and reliability.
Typical Scanfil products include mobile and communications network devices, automation system modules, frequency converters, lift control systems, analysers, various slot and vending machines, and devices related to medical technology and meteorology. Scanfil services are used by numerous international automation, energy, IT and health service providers, as well as companies operating in the field of urbanisation. Scanfil’s network of factories consists of 12 production units in Europe, Asia and North America. The total number of employees is 3,500.
Not to be published or distributed, directly or indirectly, in any country where its distribution or publication is unlawful. Forward looking statements: certain statements in this stock exchange release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Scanfil Oyj to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this stock exchange release, such statements use such words as "may," "will," "expect," "anticipate," "project," "believe," "plan" and other similar terminology. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of Scanfil Oyj to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking information contained in this stock exchange release is current only as of the date of this stock exchange release. There should not be an expectation that such information will in all circumstances be updated, supplemented or revised, except as provided by the law or obligatory regulations, whether as a result of new information, changing circumstances, future events or otherwise.
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