SCANFIL PLC          HALF YEAR FINANCIAL REPORT     9 AUGUST 2016             8.00 A.M.


April – June
– Turnover totalled EUR 133.6 million (Q2 2015: 52.8), up to 152.8%
– Operating profit EUR -3.8 million (2.3), -2.8% (4.3%) of turnover,
  adjusted operating profit* EUR 4.6 (3.0) million, 3.5% (5.8%) of turnover
– Profit was EUR -6.1 million (1.7)
– Earnings per share amounted EUR -0.10 (0.03),
  earnings per share without adjustment items* EUR 0.04 (0.04)

January – June
– Turnover totalled to EUR 263.9 million (H1 2015: 98.8), up to 167.2%
– Operating profit EUR -3.4 million (5.0), -1.3% (5.0%) of turnover,
  adjusted operating profit* EUR 9.7 million (5.8), 3.7% (5.9%) of turnover
– Profit for the review period was EUR -7.7 million (4.4)
– Earnings per share were EUR -0.12 (0.08),
  earnings per share without adjustment items* EUR 0.09 (0.09)

* Adjustments (previously referred to as ”non-recurring items”) include costs of reorganisation, sale and close-down of poorly profitable units of PartnerTech AB’s plant network and the Metal Precision business acquired the previous year. In 2015, adjustments for corresponding period consisted of costs related to the acquisition of PartnerTech AB.

Pro forma comparison January–June
– Turnover H1 2016: EUR 263.9 (H1 2015 pro forma: 237.6) million, up 11.1%
– Operating profit excluding adjustments H1 2016: EUR 9.7 (H1 2015 pro forma: 5.0) million, up to 94.7%
The pro forma comparison figures have been calculated to illustrate a scenario in which Scanfil plc and PartnerTech AB were merged on 1 January 2015.

Future prospects

Scanfil still estimates that its turnover for 2016 will be EUR 500–550 million and the operating profit before adjustment items will amount to EUR 22–28 million.

Petteri Jokitalo, CEO of Scanfil plc:

“Our turnover for the first half of 2016 was EUR 264 million, which represents an increase of around 11 per cent in comparison with our pro forma turnover of the previous year. Our adjusted operating profit totalled EUR 9.7 million, marking an increase of 95 per cent year-on-year (pro forma).

I am satisfied with the development of sales. It proves that our customers have given their support and faith to the acquisition and new Scanfil. Our most important task is to continuously develop our operations and competitiveness. An example of this is our decision to double the capacity of the Sieraz electronics plant in Poland. We aim to be the preferred contract manufacturing partner for our customers.

The integration of companies, elimination of overlap and restructuring of loss-making plants proceeded well. Operations of the Norwegian plant ended in June, and the English plant was closed down in July. PartnerTech Aerodyn AB and PartnerTech Karlskoga AB, both located in Sweden, were divested. We streamlined our operations in China, and as part of these measures, we decided to close down the PartnerTech Dongguan plant. The operating loss of the above-mentioned plants for 2015 amounted to approximately EUR 8.3 million. 

The restructuring has resulted in total of approximately EUR 14 million negative effect on operating profit level, of which approximately EUR 6.5 million with cash effects. As a result Scanfil’s cost structure is now much lighter and fixed costs on a monthly basis at the moment are more than one million euros lower level compared to the year before. The measures taken will have a positive effect on the company’s profitability from now on.”

Key Indicators      
  1 – 6 1 – 6 1 – 12
  2016 2015 2015
Return on equity, % -15,0 9,1 8,5
Return on investment, % -3,6 11,0 10,2
Interest-bearing liabilities, EUR million 74,8 7,0 83,4
Gearing, % 53,9 -12,7 60,3
Equity ratio, % 36,5 70,1 34,2
Gross investments, EUR million 2,4 2,5 54,3
% of net turnover 0,9 2,6 14,4
Personnel, average 3 760 1 798 2 690
Earnings per share, EUR -0,12 0,08 0,15
Shareholders´ equity per share, EUR 1,58 1,72 1,76
Number of shares at      
the end of period, 000´s      
 – not counting own shares 63 670 57 730 57 730
 – weighted average 63 670 57 730 57 730
Owing to the nature of the sector, the company´s order book covers only a short period of time and does not give an accurate picture of future development

Financial development

The Group’s turnover for January – June was EUR 263.9 (98.8) million.  The breakdown of turnover by regional segment was as follows: Europe and USA 80% (58%), Asia 20% (42%).

The Group’s operating profit for January – June  was EUR -3.4 (5.0) million, representing -1.3% (5.0%) of turnover. Adjusted operating profit was EUR 9.7 (5.8) million, representing 3.7% (5.9%) of turnover. The operating profit for the period under review includes adjustments of EUR 13.1 million, consisting of the restructuring and reorganisation costs of the plant network related to the divestment and closing down of subsidiaries with low profitability. The previous year, adjustments for the corresponding period consisted of EUR 0.9 million of costs related to the acquisition of PartnerTech AB. 

The Group’s tax rate is high due to the losses of the divested and closed down companies, closing down costs and the cancellation of the deferred tax receivables of Scanfil Ltd and PartnerTech China (Dongguan) Ltd.

The result for the period was EUR -7.7 million (4.4 million), and the result before adjustment items was EUR 5.9 (5.3) million. 

The Group’s turnover for April–June amounted to EUR 133.6 (52.8) million and operating profit was EUR -3.8 (2.3) million, or -2.8% (4.3%) of turnover. The second quarter includes a total of EUR 8.4 (0.8) million of adjustments. Operating profit excluding adjustments was EUR 4.6 (3.0) million, representing 3.5% (5.8%) of turnover.

Earnings per share were EUR -0.12 (0.08) for the period under review, and earnings per share excluding adjustments were EUR 0.09 (0.09). The return on investment was -3.6% (11.0%).

Publication of financial releases

This stock exchange release is a summary of the Scanfil Group’s Half Year Financial Report 1 January – 30 June, 2016 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


Petteri Jokitalo


Additional information:
CEO Petteri Jokitalo
Tel +358 8 4882 111


Distribution         NASDAQ OMX, Helsinki
                           Major Media


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 13 production units in Europe, Asia and North America. The total number of employees is 3,800.

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.