Atnaujinta: 2024.11.25 13:00 (GMT+2)
Klementi FINANCIAL RESULTS 05.07.2005
CONSOLIDATED INTERIM REPORT FOR THE 4TH QUARTER OF 2004
Explanatory memorandum to interim report for the 4th
quarter of 2004
AS Klementi is a company operating in Estonia in the
field of design, manufacturing, retail sales and
wholesale of apparel. The company has been registered and
operates in Tallinn. The head office of the company is
located at Akadeemia tee 33, Tallinn.
Results for twelve months of the year 2004
The unaudited consolidated net sales of the AS Klementi
group in the year 2004 amounted to EEK 129.2 million
(€8.3 million) and the net loss was EEK 9.8 million (€0.6
million). The sales of the previous year amounted to EEK
133.6 million (€8.5 million) and the net loss was EEK
21.6 million (€1.4 million). The sales decreased in the
year 2004 by 3.3% compared to the previous year.
In comparison with the previous year, the structure of
sales has changed to some extent. Apparel sales made up
79.2% of the total sales (82.2% in the year 2003). The
percentage of subcontracted production in the sales
structure increased by 3.4% over the year 2004 and the
net sales of subcontracted production grew by EEK 3.8
million or 18%. Export sales decreased by EEK 3.3 million
(€0.4 million) over the year 2004.
Retail sales accounted for 59% of apparel sales in 2004.
In 2003 the share of retail sales was 37%. Compared to
the previous year, the average retail sales per square
metre increased by nearly 29%. As of the end of the year
2004, Klementi was using 2744 square metres of sales area
(compared to 2689 square metres of retail sales area a
year ago).
As the development of retail trade has been positive for
AS Klementi in 2004, the primary goals for the year 2005
include continuing the expansion of the retail trade
network under the PTA trademark in the Baltic States and
continuous improvement of the efficiency ratios of retail
trade of a calibre comparable to the year 2004.
As a result of the inappropriate positioning of apparel
marketed under the PTA trademark and the unsatisfactory
results of sales of the collection, wholesale in the
Scandinavian countries declined by almost 30%. By now, AS
Klementi has adjusted the positioning of the PTA
trademark and expects higher sales of the new collections
of the company in the Scandinavian countries starting
from the year 2006.
Compared to the year 2003, the company’s cash flow from
operating activities has improved by EEK 27.8 million
(€1.8 million) and external finance has decreased by more
than twice.
The group employed 458 people as of 31 December 2004 (487
in the year 2003), i.e. 6% less than at the end of the
year 2003.
Profit analysis
Operating profit for the year 2004 before depreciation of
fixed assets amounted to EEK 4.0 million (€0.3 million)
representing an increase by EEK 12.4 million (€0.8
million) when compared to the previous year. Loss
decreased in 2004 by EEK 11.9 million (€0.8 million) when
compared to the year 2003. In 2004, staff costs and
operating expenses decreased by 15.3% and 18%,
respectively, by the aggregate amount of EEK 14.5 million
(€0.9 million).
The operating profit for the 4th quarter of 2004 amounted
to EEK 0.05 million (€0.003 million). An accounting error
representing EEK 1.3 million (€0.08 million), which was
made in the recognition of semi-finished products in the
first half of the year 2004, had a negative impact on the
results for the 4th quarter and was corrected in the
report for the 4th quarter of the year 2004.
Balance Sheet and ratios
The consolidated Balance Sheet total of AS Klementi was
EEK 108.0 million (€6.9 million) as of 31 December 2004.
The Balance Sheet total has decreased by EEK 14.0 million
(€0.9 million) since the beginning of the year.
Trade receivables have decreased by EEK 3.8 million (€0.2
million) as of the end of the year due to the decreased
wholesale to Scandinavian customers. The group’s
inventories totalled EEK 30.4 million (€1.9 million) as
of the end of 2004. The decrease of inventories by EEK
2.9 million (€0.2 million) since the beginning of the
year is related to the adjustment of the cost of semi-
finished products in the 4th quarter and the active sales
of inventories of the previous season. Accounts payable
have decreased by EEK 0.3 million (€0.02 million) as of
the end of the year. Net variation in debts amounted to
EEK 4.4 million (€0.3 million) in the year 2004.
The main financial indicators and ratios that
characterise the consolidated data of the AS Klementi
group for the twelve months of the year 2004 are as
follows:
12 months 12 months Variation
Main financial indicators 2004 2003
Operating income, EEK thousand 133,509 135,884 -1.7%
Operating profit/loss before
depreciation of fixed assets 4010 -8346 12,356
(EBITDA), EEK thousand
Margin, % 3% -6% -
Operating loss (EBIT), EEK thousand -3,587 -15,918 12,331
EBIT to net sales, % -3% -12% -
Loss for the period, EEK thousand -9,774 -21,641 11,867
ROA, % -8.5% -24.2% -
ROE, % -39.7% -66.2% -
Earnings per share (EPS), EEK -5.15 -9.85 4.70
Increase (decrease) of sales, % -3.3% 39.9% -
Share of apparel sales in total 79.2% 82.3% -
sales, %
Current ratio 0.75 0.79 -
Quick ratio 0.26 0.30 -
Inventory turnover 4.06 4.01 -
The ratios were calculated as follows:
Return on assets (ROA): Net income / average total assets
Return on equity (ROE): Net income / average owners'equity
Earnings per share (EPS): et income/average number of ordinary shares
Current ratio: Current assets / current liabilities
Quick ratio: (Current assets – inventories) / current
liabilities
Inventory turnover: Net sales / average inventory for the period
Balance Sheet
Consolidated, unaudited
31.12 31.12 31.12 31.12
2004 2003 2004 2003
EEK th. EEK th. EUR th. EUR th.
ASSETS
Current assets
Cash at bank and in hand 3399 2916 217 186
Trade receivables 11,082 14,862 708 950
Other short-term 411 1097 26 70
receivables
Prepaid expenses 1280 945 82 60
Inventories 30,392 33,284 1943 2127
Total current assets 46,564 53,104 2976 3393
Fixed assets
Long-term financial 954 1173 61 75
investments
Tangible assets 52,905 60,403 3381 3861
Intangible assets 7574 7306 484 467
Total fixed assets 61,433 68,882 3926 4403
TOTAL ASSETS 107,997 121,986 6902 7796
LIABILITIES AND OWNERS’ EQUITY
Current liabilities
Debts 42,088 47,604 2690 3042
Prepayments received 56 470 4 30
for goods and services
Trade creditors 9469 9745 605 623
Other payables 1095 782 0 50
Taxes payable 4186 3242 267 207
Accrued expenses 4970 5064 318 324
Short-term provisions 12 12 71 1
Total current 61,876 66,919 3955 4277
liabilities
Long-term liabilities
Long-term debt 22,953 21,283 1467 1360
Other long-term 3317 4204 212 269
payables
Long-term provisions 68 68 4 4
Total long-term 26,338 25,555 1683 1633
liabilities
Total liabilities 88,214 92,474 5638 5910
Owners’ equity
Share capital 18,969 18,969 1212 1212
Share premium account 40,294 40,294 2575 2575
Revaluation reserve 13,876 15,578 887 996
Other reserves 1046 1046 67 67
Retained earnings -44,737 -24,798 -2859 -1585
Unrealised exchange-rate 109 64 7 4
differences
Net profit for the -9774 -21,641 -625 -1383
financial year
Total owners’ equity 19,783 29,512 1264 1886
TOTAL LIABILITIES AND 107,997 121,986 6902 7796
OWNERS’ EQUITY
Income Statement – 4th quarter
Consolidated, unaudited
2004 2003 2004 2003
4th Q 4th Q 4th Q 4th Q
EEK th. EEK th. EUR th. EUR th.
Operating revenue
Net sales 24,482 27,987 1565 1789
Other operating revenue 1042 4596 66 294
Total operating revenue 25,524 32,583 1631 2083
Operating expenses
Change in inventories 2985 -2285 191 -146
Goods, raw materials and 4543 9219 290 589
services
Other operating expenses 6336 15,292 405 977
Staff costs 10,703 11,775 684 753
Other operating charges 910 492 58 31
Total operating expenses 5,477 34,493 1628 2204
EBITDA 47 -1910 3 -121
Depreciation 1878 1961 120 125
Operating profit -1831 -3871 -117 -246
Financial income and expenses
Interest expense 1857 -1738 -119 -111
Gains (losses) on conversion -145 -182 -9 -12
of foreign currencies
Other financial income and 0 53 0 3
expenses
Total financial income and -2002 -1867 -128 -120
expenses
Net profit (loss) -3833 -5738 -245 -366
Earnings per share
Basic earnings per share -2.02 -3.02 -0.13 -0.19
(EEK/EUR)
Diluted earnings per share -2.02 -3.02 -0.13 -0.19
(EEK/EUR)
Income Statement – 12 months
Consolidated, unaudited
2004 2003 2004 2003
12months 12months 12months 12months
EEK th. EEK th. EUR th. EUR th.
Operating revenue
Net sales 129,208 133,630 8258 8541
Other operating revenue 4301 2254 275 144
Total operating revenue 133,509 135,884 8533 8685
Operating expenses
Change in inventories 3757 3220 240 206
Goods, raw materials and 49,527 50,634 3165 3236
services
Other operating expenses 29,102 35,504 1860 2269
Staff costs 44,650 52,720 2854 3369
Other operating charges 2463 2152 157 138
Total operating expenses 129,499 144,230 8276 9218
EBITDA 4010 -8346 257 -533
Depreciation 7597 7572 486 484
Operating loss -3587 -15,918 -229 -1017
Financial income and expenses
Interest expense -5916 -5754 -379 -368
Gains (losses) on conversion -265 45 -17 3
of foreign currencies
Other financial income and -6 -14 0 -1
expenses
Total financial income and -6187 -5723 -396 -366
expenses
Net profit (loss) -9774 -21,641 -625 -1383
Earnings per share
Basic earnings per share -5.15 -9.85 -0.33 -0.63
(EEK/EUR)
Diluted earnings per share -5.15 -9.85 -0.33 -0.63
(EEK/EUR)
Toomas Leis
CEO of AS Klementi
+372 671 0700
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