Andmed seisuga: 21.07.2024 20:54 (GMT+3)
Harju Elekter FINANCIAL RESULTS 03/02/2004
FINANCIAL RESULTS OF THE GROUP IN 2003
In the estimation of Andres Allikmäe, the Chairman of the Management
Board, the year 2003 was remarkable for Harju Elekter. All the important
resolutions for expanding the business activities led to the expected
result. The internationalisation of the Group provides a good basis for
securing a successful position in the Baltic and Scandinavian markets in
the years to come. The clients and shareholders as well as employees of
Harju Elekter Group have reason to be satisfied.
Since 17 February, the shares of Harju Elekter (HAE1T) are tradable in
the main list of the Tallinn Stock Exchange.
The annual general meeting of shareholders held on 11 April decided to
pay the owners dividends of EEK 2.00 (EUR 0.13) per share. The dividends
were paid on 9 May 2003.
In the third quarter, a production hall of 4500 m2 was made available to
PKC Eesti (the former cable harnesses factory of Harju Elekter). PKC
Eesti has been leasing production premises from Harju Elekter since July
2002.
In June, a project was launched to extend the factory of AS Keila Kaabel,
a related company, as a result of implementation of which the sales of
the factory’s own production will double within the next two years, the
production efficiency of the factory will increase, and the product range
and quality will improve. The annex to the production building was
completed at the end of 2003.
In July, Harju Elekter sold 105 shares of AS Keila Kaabel. Pursuant to a
resolution of the special general meeting of shareholders, a share issue
of AS Keila Kaabel directed to Draka NK Cables, the majority shareholder,
was carried out by issuing 200 new shares. After the issue and sale of
shares, the share capital of Keila Kaabel is EEK 26m (EUR 1.66m), which
is divided between the shareholders as follows: 34% Harju Elekter and 66%
Draka NK Cables.
In October, Harju Elekter acquired 51% of the shares of UAB Rifas, a
Lithuanian company. The main activity of UAB Rifas is the manufacture and
sale of electric controland distribution centres, and the design and
installation of industrial automatic equipment. Rifas Group comprises,
besides the parent company, subsidiaries UAB Automatikos Iranga and UAB
Birzu Montuotojas, with a 51% shareholding in them. The group employs 61
persons. After acquiring the subsidiary, Harju Elekter will have a
possibility, apart from a considerable market share in the automatic
equipment sector, to increase its market share also in the Lithuanian
energy distribution and construction sectors. To support sales, it is
intended to double the production capacity of Rifas factory. In the
fourth quarter of 2003, the construction of a new production building was
commenced. Close cooperation between the Estonian, Finnish and Lithuanian
subsidiaries of Harju Elekter Group provides a possibility to offer the
clients a broader product package.
Sales income
The sales income of the consolidated group was EEK 342.3m or EUR 21.9m in
2003 (EEK 271.2m or EUR 17.3m in 2002), the growth being 26.2%. Sales to
the Estonian market increased by 20.1%, forming 52.8% of the consolidated
turnover (2002: 55.5%). Sales to international markets amounted to EEK
161.5m or EUR 10.3m (2002: EEK 120.8m or EUR 7.7m), including EEK 134.2m
or EUR 8.6m to the Finnish market (2002: EEK 104.7m or EUR 6.7m). Sales
to the Lithuanian market increased by EEK 10m (EUR 0.62m). In October,
Harju Elekter purchased a Lithuanian subsidiary whose consolidated
turnover is included in the sales income of the consolidated group.
Profit
The operating profit of the consolidated group was EEK 19.9m or EUR 1.3m
in 2003 (2002: EEK 15.5m or EUR 1.0m), including EEK 5.7m or EUR 368k in
the fourth quarter (fourth quarter of 2002: EEK 3.0m or EUR 193k). The
profit margin of the Group was 5.8% (2002: 5.7%), which in the fourth
quarter was by 1.8 per cent points better than in the fourth quarter of
the preceding year (fourth quarter of 2002: 5.4%; fourth quarter of 2002:
3.6%).
The operating profit of the parent company increased by 16.3% in 2003 in
comparison with the same period of the previous year (2003: EEK 18.1m or
EUR 1155k; 2002: EEK 14.3m or EUR 915k). In the fourth quarter of 2003,
the operating profit to net sales ratio was 8.3% (2002: 5.6%).
Profit from financial activities was EEK 155.8m or EUR 10.0m (2002: EEK
7.2m or EUR 0.5m). Since 1 January 2003, the shares of PKC are valued at
market price in the balance sheet. The price on the last trading day of
the financial year ended on 31.12.2003 on the Helsinki Stock Exchange was
EUR 7.10, and as of 31.12.2003 — EUR 21.20. Thus, the market price
increased three times. The revaluation of the shares in PKC Group Oyj at
the end of the quarter as of 31.12.2003 resulted in an additional
financial income of EEK 56.5m (EUR 3.6m), totalling EEK 137.9m (EUR 5.2m)
in 12 months. To finance new investments, Harju Elekter sold altogether
40 thousand shares in PKC Group in September and October, receiving
additional financial income of EEK 3.0m (EUR 53k). PKC Group Oyj paid
dividends for 2002 in the amount of EEK 4.6m or EUR 291k, which was over
two times more than in the previous year (2002: EEK 2.1m or EUR 132k). A
total financial income of EEK 145.4m (EUR 5.5m) was earned from other
financial investments during the 12 months. The one-off financial income
from selling the shares in AS Keila Kaabel in July was EEK 7.1m (EUR
0.45m).
All in all, the net profit of the consolidated group in 2003 was EEK
175.3m or EUR 11.2m (2002: EEK 53.2m or EUR 3.4m). The return on net
profit was 51.2% (2002: 19.6%). The net profit per share was EEK 32.47 or
EUR 2.07 (2002: EEK 9.86 or EUR 0.63).
Cash flows, investments and capital use
Cash flow from operating activities was EEK 35.2m or EUR 2.2m (2002: EEK
6.1m or EUR 0.4m), cash outflow from investing activities was EEK 23.7m
or EUR 1.5m (2002: cash inflow EEK 11.3m or EUR 0.7m), and cash outflow
from financing activities was EEK 21.0m or EUR 1.3m (2002: EEK 16.8m or
EUR 1.1m). The balance of cash and cash equivalents increased by EEK
14.9m or EUR 952k (2002: EEK 627k or EUR 40k) over the 12 months.
During the accounting period, the Group’s investments in tangible and
intangible assets totalled EEK 51.9m or EUR 3.3m (2002: EEK 14.0m or EUR
0.9m), including construction and reconstruction works of buildings and
structures in the amount of EEK 41.9m or EUR 2.7m (2002: EEK 5.1m or EUR
0.3m). Land acquired for the Group totalled EEK 2.3m or EUR 147k,
machinery and equipment: EEK 6.0m or EUR 0.4m (2002: EEK 4.5m or EUR
285k).
In the first quarter, Harju Elekter purchased 9000 shares in PKC Group
Oyj, paying EEK 1061k (EUR 68k) for the investment. On 1 October 2003,
Harju Elekter purchased a 51% shareholding in UAB Rifas, a Lithuanian
company, paid a total of EEK 10.6m or EUR 0.68m for the shares and for
increasing the share capital. Harju Elekter paid EEK 3.4m (EUR 220k) on
the transaction to the former owners. As of the acquisition date 1
October 2003, the amount of money on the bank account of Rifas Group
totalled EEK 1.3m (EUR 81k). The acquisition of the subsidiary resulted
in a cash outflow from the Group in the amount of EEK 2.1m (EUR 130k).
In the second half-year, the sale of 105 shares in Keila Kaabel yielded
EEK 8.7m or EUR 559m, and the sale of 40,000 shares in PKC Group yielded
EEK 11.6m or EUR 740k. PKC Group OY paid dividends for 2002 in the amount
of EEK 4.6m or EUR 291k (2002: EEK 2.1m or EUR 132k) and the related
company Keila Kaabel paid dividends of EEK 3.0m or EUR 195k (2002: EEK
1.7m or EUR 111k).
To finance the annexes to PKC Eesti and Keila Kaabel, Harju Elekter
raised a long-term bank loan in a total amount of EEK 21.6m or EUR 1.38m.
Production equipment was acquired for the Group by means of financial
lease for a total of EEK 2.1m or EUR 134k. The long-term loan and
principal instalments of financial lease repaid during the accounting
period totalled EEK 8.5m or EUR 544k (2002: EEK 8.6m or EUR 550k). The
dividends paid to the shareholders for 2002 totalled EEK 10.8m or EUR
690k (2002: EEK 7.6m or EUR 483k), which did not impose any income tax
liability on AS Harju Elekter.
Balance sheet
In accordance with the new Accounting Act of the Republic of Estonia
applicable since 1 January 2003 and the guidelines of the Accounting
Standards Board, the consolidated group changed the accounting method
used for financial instruments. Since 2003, financial instruments are
reflected in the balance sheet on a fair value method. The financial
investments (the shares of PKC Group Oyj) in the balance sheet as of 31
December 2002 were revaluated at market value on the basis of the average
share price of the last trading day of 2002. The difference between the
fair value and balance-sheet value arising from revaluation was EEK 53.9m
(EUR 3.5m); this was the amount by which the initial balance of retained
earnings in the equity capital and the initial balance of other long-term
shares in long-term financial investments were increased. As a result,
the share of equity capital in the balance sheet increased from 76.2% as
of 31 December 2002 to 80.8% and fixed assets increased from 62.8% to
70.0% in the adjusted initial balance sheet of 2003.
During the year, the value of assets in the consolidated balance sheet
increased by EEK 205m or EUR 13m (2002: EEK 48m or EUR 3.08m), reaching
EEK 483m or EUR 30.9m as of 31 December 2003 (31 December 2002: EEK 225m
or EUR 14m). Within 12 months, the market value of the shares of PKC
Group OY has increased three times, from EUR 7.10 in the initial balance
sheet to EUR 21.20 as of the balance sheet date (31 December 2003). The
revaluation of securities resulted in a growth in the value of assets by
EEK 138m or EUR 5.2m in the balance sheet.
Employees
The average number of employees in the Group in 2003 was 302 (2002: 351),
including 175 (2002: 273) in the parent company. As of the balance sheet
date 31 December 2003, the number of employees in the Group was 353,
including 181 in the parent company. The number of employees in Estonia,
Finland, and Lithuania was 240, 51 and 62, respectively. A significant
change in the number of employees was caused by the purchase of the
Lithuanian subsidiary Rifas (+62 people). The Group employs 218 workers
and 135 engineers, technicians, and managers. By education, the Estonian
companies of the Group have 42 employees with higher education, 161
employees with secondary and vocational secondary education, and 37
employees with basic education.
Andres Allikmäe
Chairman of the Management Board
+372 6 747 400
BALANCE SHEETS
BALANCE SHEET OF THE GROUP, 31.12.2003
Consolidated, unaudited
in thousand EEK EUR
ASSETS 31.12.0331.12.0231.12.0331.12.02
Cash, bank 26 449 11 620 1 690 743
Total customer receivables 31 784 28 705 2 031 1 834
Other current receivables 6 106 2 035 390 130
Accrued income 67 14 4 1
Prepaid expenses 1 251 753 80 48
Total current receivables 39 208 31 507 2 506 2 013
Raw materials and inventories 37 721 35 527 2 411 2 271
Goods 6 344 4 616 405 295
Prepayments to suppliers 57 0 4 0
Total inventories 44 123 40 142 2 820 2 566
TOTAL CURRENT ASSETS 109 780 83 270 7 016 5 322
Stock and shares in assoc.comp. 26 476 26 587 1 692 1 699
Other shares 201 128 70 803 12 854 4 525
Other long-term receivables 19 379 1 24
Total financial investments 227 623 97 768 14 548 6 249
Investments for the real estate 86 896 0 5 554 0
Plant and equipment 28 308 77 556 1 809 4 957
Other equipment and fixtures 58 144 46 385 3 716 2 965
Other inventory 4 996 3 277 319 209
Accumulated depreciation -38 892 -35 288 -2 486 -2 255
Construction-in-progress 2 363 3 556 151 227
Prepayments for fixed assets 2 068 28 132 2
Total tangible assets 56 987 95 514 3 642 6 104
Licences 1 752 1 206 112 77
Prepayments for intangible assets 39 0 2 0
Goodwill -375 16 -24 1
Total intangible assets 1 416 1 222 90 78
TOTAL NON-CURRENT ASSETS 372 922 194 505 23 834 12 431
TOTAL ASSETS 482 702 277 774 30 850 17 753
LIABILITIES AND OWNERS' EQUITY
Debt obligations 14 366 12 360 918 790
Customer prepayments 1 065 193 68 12
Supplier payables 26 756 22 438 1 710 1 434
Other short-term borrowings 1 218 1 251 78 80
Tax liabilities 6 451 5 405 412 345
Accrued expenses 9 534 5 869 609 375
TOTAL CURRENT LIABILITIES 59 390 47 516 3 796 3 037
TOTAL NON-CURRENT LIABILITIES 20 800 5 707 1 329 365
TOTAL LIABILITIES 80 189 53 223 5 125 3 402
Minority interests 13 444 0 859 0
Share capital 54 000 54 000 3 451 3 451
Restricted reserves 8 600 8 600 550 550
Retained earnings 151 151 108 698 9 661 6 947
Net profit for the year 175 317 53 254 11 205 3 404
TOTAL OWNERS' EQUITY 389 069 224 551 24 866 14 351
TOT.LIABIL.AND OWNERS' EQUITY 482 702 277 774 30 850 17 753
BALANCE SHEET OF THE PARENT COMPANY, 31.12.2003
Consolidated, unaudited
in thousand EEK EUR
ASSETS 31.12.0331.12.0231.12.0331.12.02.
Cash, bank 15 105 11 165 965 714
Total customer receivables 13 003 12 075 831 772
Other current receivables 11 611 8 056 742 515
Accrued income 20 0 1 0
Prepaid expenses 682 564 44 36
Total current receivables 25 316 20 694 1 618 1 323
Raw materials and inventories 17 900 16 690 1 144 1 067
Goods 5 869 4 575 375 292
Prepayments to suppliers 39 0 2 0
Total inventories 23 808 21 265 1 522 1 359
TOTAL CURRENT ASSETS 64 229 53 124 4 105 3 395
Stock and shares in subsidiaries 24 829 13 759 1 587 879
Other long-term receiv.from subs. 1 734 6 780 111 433
Stock and shares in assoc.comp. 26 476 26 587 1 692 1 699
Other shares 201 128 70 803 12 854 4 525
Other long-term receivables 19 379 1 24
Total financial investments 254 186 118 308 16 245 7 561
Investments for the real estate 91 667 0 5 859 0
Plant and equipment 15 642 77 428 1 000 4 949
Other equipment and fixtures 30 843 26 033 1 971 1 664
Other inventory 1 900 1 751 121 112
Accumulated depreciation -22 242 -28 798 -1 422 -1 841
Construction-in-progress 1 351 3 556 86 227
Prepayments for fixed assets 868 28 55 2
Total tangible assets 28 362 79 998 1 813 5 113
Licences 490 750 31 48
Total intangible assets 490 750 31 48
TOTAL NON-CURRENT ASSETS 374 705 199 055 23 948 12 722
TOTAL ASSETS 438 935 252 179 28 053 16 117
LIABILITIES AND OWNERS' EQUITY
Debt obligations 4 612 5 516 295 353
Customer prepayments 559 193 36 12
Supplier payables 16 463 13 501 1 052 863
Other short-term borrowings 1 456 1 269 93 81
Tax liabilities 2 978 2 525 190 161
Accrued expenses 4 902 3 191 313 204
TOTAL CURRENT LIABILITIES 30 971 26 195 1 979 1 674
TOTAL NON-CURRENT LIABILITIES 18 895 1 433 1 208 92
TOTAL LIABILITIES 49 866 27 628 3 187 1 766
Share capital 54 000 54 000 3 451 3 451
Restricted reserves 8 600 8 600 550 550
Retained earnings 151 151 108 698 9 660 6 947
Net profit for the year 175 317 53 254 11 205 3 404
TOTAL OWNERS' EQUITY 389 069 224 551 24 866 14 351
TOT.LIABIL.AND OWNERS' EQUITY 438 935 252 179 28 053 16 117
INCOME STATEMENTS
INCOME STATEMENT OF THE GROUP, 2003
Consolidated,unaudited EEK EUR
in thousand 2003 2002 2003 2002
NET SALES 342 348 271 212 21 880 17 334
Cost of goods sold -278 881-222 367 -17 824 -14 212
Gross profit 63 468 48 845 4 056 3 122
Operating expenses, incl. -43 317 -33 063 -2 768 -2 113
Marketing expenses -17 722 -12 322 -1 133 -788
Administrative expenses -25 595 -20 741 -1 635 -1 326
Other revenue 396 381 25 24
Other expenses -692 -668 -44 -42
Operating profit 19 855 15 494 1 269 990
Financial income and expenses, incl.
- from associated companies 11 691 6 067 747 388
- from other holdings 145 433 2 247 9 294 144
- interest expense -1 464 -1 353 -94 -86
- profit/loss from foreign exchang -62 -46 -4 -3
- other financial income/expenses 186 247 12 16
Total financ.income and expenses 155 784 7 162 9 955 458
Profit from normal operations 175 639 22 656 11 225 1 448
External income 0 30 641 0 1 958
Corporate Income tax -283 -44 -18 -3
Minority interests -38 0
Net profit for the year 175 317 53 254 11 205 3 404
Basic earnings per share 32,47 9,86 2,07 0,63
Diluted earnings per share 31,89 9,86 2,04 0,63
INCOME STATEMENT OF THE GROUP, 2003 Q4
in thousand EEK EUR
Q4 2003 Q4 2002 Q4 2003 Q4 2002
NET SALES 106 966 84 576 6 836 5 405
Cost of goods sold -87 463 -70 044 -5 589 -4 477
Gross profit 19 504 14 532 1 247 929
Operating expenses, incl. -13 730 -11 356 -877 -726
Marketing expenses -5 757 -3 900 -368 -248
Administrative expenses -7 973 -7 456 -510 -477
Other revenue 227 91 15 6
Other expenses -247 -243 -16 -16
Operating profit 5 754 3 024 368 193
Financial income and expenses, incl.
- from associated companies 852 62 54 4
- from other holdings 58 702 -7 3 752 0
- interest expense -546 -451 -35 -29
- profit/loss from foreign exchang -24 -17 -2 -1
- other financial income/expenses 46 54 3 3
Total financial income and expense 59 030 -359 3 773 -23
Profit from normal operations 64 784 2 665 4 140 170
External income -250 -44 -16 -3
Corporate Income tax -38 0 -2 0
Net profit for the year 64 495 2 621 4 122 168
Basic earnings per share 11,94 0,49 0,76 0,03
Diluted earnings per share 11,70 0,49 0,75 0,03
INCOME STATEMENT OF THE PARENT COMPANY, 2003
Unaudited EEK EUR
in thousand 2003 2002 2003 2002
NET SALES 205 708 189 731 13 147 12 126
Cost of goods sold -161 696-151 715 -10 334 -9 696
Gross profit 44 012 38 016 2 813 2 430
Operating expenses, incl. -25 665 -23 426 -1 640 -1 497
Marketing expenses -10 153 -9 113 -649 -582
Administrative expenses -15 512 -14 313 -991 -915
Other revenue 320 262 20 17
Other expenses -590 -540 -38 -35
Operating profit 18 077 14 311 1 155 915
Financial income and expenses, incl.
- from subsidiaries 370 227 24 14
- from associated companies 11 691 6 067 747 388
- from other holdings 145 433 2 392 9 295 153
- interest expense -862 -664 -55 -42
- profit/loss from foreign exchang -19 -16 -1 -1
- other financial income/expenses 627 295 40 19
Total financial income and expense 157 240 8 301 10 049 531
Profit from normal operations 175 317 22 612 11 205 1 445
External income 0 30 641 0 1 958
Net profit for the year 175 317 53 253 11 205 3 404
Basic earnings per share 32,47 9,86 2,07 0,63
Diluted earnings per share 31,89 9,86 2,04 0,63
INCOME STATEMENT OF THE PARENT COMPANY 2003 Q4
in thousand EEK EUR
Q4 2003 Q4 2002 Q4 2003 Q4 2002
NET SALES 62 033 48 362 3 965 3 091
Cost of goods sold -48 870 -38 469 -3 123 -2 459
Gross profit 13 163 9 893 841 632
Operating expenses, incl. -8 003 -6 985 -513 -446
Marketing expenses -3 472 -2 613 -222 -167
Administrative expenses -4 532 -4 372 -290 -279
Other revenue 190 9 12 1
Other expenses -212 -215 -14 -14
Operating profit 5 138 2 702 328 173
Financial income and expenses, incl.
- from subsidiaries 79 -72 5 -4
- from associated companies 852 62 54 4
- from other holdings 58 702 138 3 752 9
- interest expense -390 -273 -25 -17
- profit/loss from foreign exchang -4 -4 0 0
- other financial income/expenses 120 68 8 4
Total financial income and expense 59 357 -81 3 795 -5
Profit from normal operations 64 495 2 621 4 122 168
External income 0 0 0 0
Net profit for the year 64 495 2 621 4 122 168
Basic earnings per share 11,94 0,49 0,76 0,03
Diluted earnings per share 11,70 0,49 0,75 0,03
Karin Padjus
Chief accountant
+372 6747 403
Moonika Vetevool
PR manager
+372 6712 761
Sisukaart