HELSINKI, Finland--(BUSINESS WIRE)--Regulatory News:
January - September 2015
· Net sales EUR 857.6 million (889.8), down 3.6%*, organic net sales increased 3.1%*
· Operative EBITA** EUR 41.7 million (43.6) or 4.9% of net sales (4.9)
· Non-recurring items EUR -1.7 million (-15.9), mainly IPO-related
· EBITA EUR 40.0 million (27.6) or 4.7% of net sales (3.1)
· Net financial expenses decreased to EUR 12.2 million (14.8)
· Net result EUR 25.9 million (2.4)
· Earnings per share EUR 0.42 (-0.05)
· Operative cash flow** EUR -44.6 million (42.0), strongly impacted by IPO-related cash payments in the first quarter
July - September 2015
Net sales EUR 310.8 million (330.9), down 6.1%*, organic net sales decreased 4.8%*
· Operative EBITA** EUR 22.5 million (25.7) or 7.2% of net sales (7.8)
· Non-recurring items EUR 0.9 million (-16.0)
· EBITA EUR 23.3 million (9.7) or 7.5% of net sales (2.9)
· Net financial expenses decreased to EUR 2.6 million (5.7)
· Net result EUR 25.2 million (0.9)
· Earnings per share EUR 0.39 (-0.02)
· Operative cash flow** EUR -7.4 million (19.4) impacted by seasonal working capital increase and acquisitions
Unless otherwise stated, figures in brackets refer to the same period in the previous year * Organic net sales excludes Norwegian communication business and Sønnico and Edi.Son acquisitions in 2015. For net sales comparability, see table on page 3 and Communication segment on page 5. ** see definitions on pages 11, 13 and 16
Comments by the CEO
Continued favourable market activity – good profitability but lower project volumes
In the third quarter, the market developed in line with earlier quarters in 2015. We continued to see high activity and demand from customers in all segments – Power, Communication and Transport & Security. We are satisfied with the development of Eltel’s profitability in the third quarter, particularly with the margins in the Transport& Security and the Communication segments and especially when taking into account the settlement in an African project in the Power segment that last year affected EBITA positively with approximately EUR 6 million.
Volumes in project-related business were slightly lower in the quarter, compared with the year-earlier period. This is partly due to more intense competition in some of our businesses and our decision not to compromise on profitability. Our project order backlog is strong and will over time support the reaching of our mid- to long-term financial targets.
Eltel works tirelessly to achieve continuous improvements and to further develop the Eltel Way. Currently, the focus is on the health and safety area. This is a tremendously important area for an Infranet company such as Eltel.
We continuously identify and evaluate a broad range of acquisition alternatives in the market. During this year we have executed a few important acquisitions. In the third quarter, we announced the strategically important buyout of Eltel Sønnico in Norway. This merger within our Communication segment is progressing according to plan and will further increase our efficiency moving forward. However, in the short term, there will be a slight margin dilution compared with the earlier ownership structure.
After the close of the third quarter, we also announced a minor acquisition in the Transport & Security business segment. Vete Signaltjenester AS is a small Norwegian company specialised in railway signalling systems. This is the type of acquisition that enables us to grow more organically, by gaining new contracts in this attractive area in the future.
The overall picture for the Infranet market going forward remains attractive. In the Power segment, transmission system operators in Sweden and Norway have announced a doubling of their grid investments over the next ten-year period. Similar indications apply for the German market and for several countries in Africa. Furthermore, there are plans to invest significantly in power distribution, especially in cabling projects and electrical meter installations. In the Communication segment, demand for fibre deployment has developed positively in several markets and for our Transport & Security business segment, healthy tender activity continue in the rail sector and in the area of security and aviation.
–Axel Hjärne, President and CEO
Eltel is a leading European provider of technical services for critical infrastructure networks – Infranets – in the segments of Power, Communication and Transport & Security, with operations throughout the Nordic and Baltic regions, Poland, Germany, the United Kingdom and Africa. Eltel provides a broad and integrated range of services, spanning from maintenance and upgrade services to project deliveries. Eltel has a diverse contract portfolio and a loyal and growing customer base of large network owners. The current number of employees is approximately 9 300. In 2014 Eltel’s net sales amounted to EUR 1 242 million. Since February 2015, Eltel AB is listed on Nasdaq Stockholm.
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