Andmed seisuga: 20.07.2024 01:09 (GMT+3)
VIISNURK FINANCIAL RESULTS 28.02.2005
Unaudited financial results, 2004
The year 2004 was characterised by important structural changes
for Viisnurk AS. By restructuring the company aimed at improving
sustainable profitability and a reinforced financial position.
Today it can be said that in general, restructuring of Viisnurk
has been successfully carried out. The Furniture and Building
Materials Divisions of Viisnurk AS show stable profits and
development; the divisions that used to make a loss have been
closed and the financial position of the company has improved
during the year. Viisnurk AS cash flows from operations were 31.2
million kroons (2 million euros) for 2004, which is 18.7 kroons
(1.2 million euros) more than for 2003 and the company’s loan
burden decreased by 33.8 million kroons (2.2 million euros) during
the year. Whereas in 2003 the loss of the company resulted mainly
both from extraordinary costs of restructuring and normal
operations, the results for 2004 were largely dependent on
extraordinary costs related to closure and sale of divisions.
Company’s current economic activities and cash flow are positive
thereby creating preconditions for rapid improvement in operations
for 2005.
Net Sales and Profit
Viisnurk AS ended the year 2004 with the sales revenue of 347.5
million kroons (22.2 million euros). The continuing activities
generated growing sales revenue during the reporting year: the
turnover of the Furniture Division was 156.5 million kroons/10
million euros (an increase by 2.1%) and that of the Buildings
Materials Division was 96.1 million kroons/6.1 million euros (an
increase by 4.1%). Closure of the Wood Division (mid-April) and
the Sports Goods Division (end of October) reduced the total
turnover of the company (11,4% compared to 2003) because the
turnover of these divisions did not reach that of 2003.
Viisnurk AS ended the year with a loss of 16.5 million kroons (1
million euros). In 2003, the loss of the company amounted to 68.8
million kroons (4.4 million euros). Just like the economic result
for 2003, the loss of Viisnurk for 2004 includes significant
extraordinary costs, mainly due to closure and sale of
unprofitable divisions. The largest amount of the annual loss is
comprised of the calculated loss from the sale of the Wood
Division amounting to 14 million kroons (0.9 million euros), which
was charged off in 2004. The divisions that are continuing their
activities made profit in 2004: the Building Material Division
ended the year with a profit of 18.5 million kroons (1.2 million
euros) and the Furniture Division with 2.9 million kroons (0.2
million euros).
Balance Sheet and Cash Flow Statement
The total assets of Viisnurk AS decreased by 25.7% in the
accounting period, amounting to 208.5 million kroons (13.3 million
euros) at 31.12.2004. As to the assets in the balance sheet, the
current assets decreased by 36.2% and the fixed assets by 18.2%
compared to 2003 due to closure of divisions. On the other hand,
liabilities of the company plummeted – current liabilities
decreased by 36 million kroons (2.3 million euros) and non-current
liabilities by 20 million kroons (1.3 million euros) or 56 million
kroons (3.6 million euros) in total, i.e. by 27% compared to 2003.
Viisnurk AS cash flows from operations were positive with 31.2
million kroons (2 million euros) for 2004. Operations yielded in
18.7 million kroons (1.2 million euros) more compared to 2003.
Operations-related investments amounted to 3.7 million kroons (0.2
million euros); proceeds from the sale of fixed assets, securities
and immovable not related to the main activities of the company
amounted to 9 million kroons (0.6 million euros). The balance of
Viisnurk AS loans decreased by 33.8 million kroons (2.2 million
euros) in 2004.
Business Units Review
Furniture Division
The Furniture Division of Viisnurk AS ended the year with the
sales revenue of 156.5 million kroons (10 million euros) and a
profit of 2.9 million kroons (0.2 million euros). In 2003, the
division gained a profit of 6.5 million kroons (0.4 million euros)
at the net sales of 153.5 million kroons (9.8 million euros).
Finland, Sweden, Russia and Germany have remained the most
important target markets for the Furniture Division; retail sale
of furniture in Estonia via Viisnurk’s subsidiary Skano OÜ has
been launched successfully.
Optimisation of the product portfolio by abandoning several
technically complicated and economically unprofitable product
lines and reducing difference of levels of fixed costs were the
most significant developments in 2004 for the Furniture Division.
Acquisition of the sales activities of a former customer Skano AG,
the Swiss company with its main activities in Germany and Austria
at the beginning of October, can be considered a key event. This
will enable the company to better reach the end users at one of
its largest target markets and apart from gaining better sales
margins it will also reduce dependence on single major customers.
Thereby the Furniture Division aim at stable increase of
production and sales volumes and significant growth of
profitability during the following periods.
Building Materials Division
Results of the Buildings Materials Division were excellent for
2004: it made a profit of 18.5 million kroons (1.2 million euros)
at the sales revenue of 96.1 million kroons (6.1 million euros).
The division gained a profit of 19.5 million kroons (1.25 million
euros) at the net sales of 92.2 million kroons (5.9 million euros)
last year. A slight reduction of profit was due to some increase
in the prices of production inputs (wood chips, power and heat).
However, the division ended the year much better than forecasted.
One of the reasons behind it was the increased sales of Isotex
interior finishing boards with a higher added value. Isotex-line
accounted for 33.7% of the sales portfolio in 2004 compared to 28%
in 2003. Production processes functioned well during the
accounting year: we succeeded in reducing the stoppage time of the
main line with uninterrupted cycle by approx. 10%. Future
strategies in the Building Material Division first and foremost
involve constant increase of the share of products with higher
value, both with regard to internal finishing boards and planned
new products based on basic boards.
Sports Goods Division
The Sports Goods Division that used to make a loss for Viisnurk AS
was closed on 29 October 2004 according to the resolution of the
Supervisory Board. All division’s contracts with customers had
been duly carried out by the closing day. The economic results of
the Sports Goods Division for 2004 expose a loss of 11.8 million
kroons (0.75 million euros) at the turnover of 61 million kroons
(3.9 million euros).
The potential buyer of the assets of the Sporting Goods has been
elected and negotiations for entering into a purchase-sales
contract of the assets are under way.
Wood Division
The Wood Division of Viisnurk AS was closed on 16 April 2004
pursuant to the restructuring plan of the company. The economic
results of the Wood Division for 2004 expose a loss of 18 million
kroons (1.15 million euros) at the sales revenue of 33.1 million
kroons (2.1 million euros).
A contract with Desparo OPÜ was signed on 22 September 2004 on
sale of the assets of the Wood Division. The possession of the
Wood Division was transferred to the buyer by the contract
concluded under the law of obligations. Possession of the assets
shall be transferred to the buyer after concluding a real right
contract, which will be signed after registration of the land
under the division as a separate registered immovable. Total value
of the transaction is 44 million kroons (2.8 million euros).
Viisnurk AS will receive a calculated loss of 14 million kroons
(0.9 million euros) from the transaction, which is reported fully
in the annual report for 2004.
INCOME STATEMENT
thousand kroons
unaudited IV quarter IV quarter 12 months 12 months
2004 2003 2004 2003
RETURN ON SALES 71 212 112 652 347 544 392 331
Cost of production (78 057) (159 104) (327 738) (414 156)
sold
Gross profit (6 845) (45 452) 19 806 (21 825)
Marketing expenses (6 059) (7 448) (22 584) (23 210)
General (1 792) (2 903) (8 520) (11 915)
administrative
expenses
Other income 61 943 4 851 6 864
Other expenses (4 059) (5 761) (5 293) (10 380)
Operating profit (18 694) (61 621) (11 740) (60 466)
Financial income and (1 385) (1 986) (4 806) (8 373)
financial expenses
NET PROFIT FOR THE (20 079) (63 607) (16 546) (68 839)
PERIOD
Basic earnings per (4,46) (14,14) (3,68) (15,30)
share
Diluted earnings per (4,46) (14,14) (3,68) (15,30)
share
INCOME STATEMENT
thousand euros
unaudited IV quarter IV quarter 12 months 12 months
2004 2003 2004 2003
RETURN ON SALES 4 522 7 200 22 212 25 074
Cost of production (4 989) (10 169) (20 946) (26 469)
sold
Gross profit (437) (2 969) 1 266 (1 395)
Marketing expenses (387) (476) (1 443) (1 483)
General (115) (185) (545) (762)
administrative
expenses
Other income 4 60 310 439
Other expenses (259) (368) (338) (664)
Operating profit (1 194) (3 938) (750) (3 865)
Financial income and (89) (127) (307) (535)
financial expenses
NET PROFIT FOR THE (1 283) (4 065) (1 057) (4 400)
PERIOD
Basic earnings per (0,28) (0,90) (0,23) (0,98)
share
Diluted earnings per (0,28) (0,90) (0,23) (0,98)
share
BALANCE SHEET
unaudited Thou. Kr. Thou. Kr. Thou. Thou.
euros euros
31.12.2004 31.12.2003 31.12.2004 31.12.2003
Cash and bank 3 870 1 141 247 73
Customer receivables 27 645 45 005 1 767 2 876
Other receivables 85 115 6 7
Prepayments 2 576 7 127 165 455
Inventories 40 419 63 819 2 583 4 080
Total current assets 74 595 117 207 4 768 7 491
Long-term financial 1 1 436 0 92
investments
Real estate 1 782 2 535 114 162
investments
Tangible fixed 129 263 156 102 8 261 9 977
assets
Intangible fixed 2 884 3 716 184 237
assets
Total fixed assets 133 930 163 789 8 560 10 468
TOTAL ASSETS 208 525 280 996 13 328 17 959
Debt obligations 76 061 90 011 4 861 5 753
Customer prepayments 11 186 219 715 14
Supplier payables 20 904 38 801 1 336 2 480
Taxes payable 3 443 6 956 220 445
Accrued expenses 8 547 17 514 546 1 119
Short-term 445 3 129 29 200
provisions
Total current 120 586 156 630 7 707 10 011
liabilities
Non-current debt 30 279 50 160 1 935 3 206
obligations
Total non-current 30 279 50 160 1 935 3 206
liabilities
Total liabilities 150 865 206 790 9 642 13 217
Share capital 44 991 44 991 2 875 2 875
(nominal value)
Issue premium 11 332 11 332 724 724
Mandatory capital 4 499 4 499 288 288
reserve
Retained profits 13 384 82 223 856 5 255
Net profit for the (16 546) (68 839) (1 057) (4 400)
year
Total equity 57 660 74 206 3 686 4 742
TOTAL LIABILITIES 208 525 280 996 13 328 17 959
AND EQUITY
Andrus Aljas
CFO
+372 447 8355
Sisukaart