Atnaujinta: 2024.11.23 15:39 (GMT+2)
AS KLEMENTI FINANCIAL RESULTS 12.09.2005
RESULTS FOR SIX MONTHS OF 2005
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.
Material specification concerning the interim report for
the second quarter of 2005
The introduction of the new business software, “Microsoft
Axapta”, has proved to be remarkably more arduous and
time-consuming than the timeframe originally planned.
As a result of errors in the conversion of the initial
data regarding inventories from the previous software
programme into the new one, and due to the erroneous set-
up of the programme as regards finances, the accounting
of inventories was incorrect in the first quarter. Those
errors were detected and corrected at the end of the
second quarter.
Owing to the errors that had occurred in the set-up of
the business software and in the conversion of data, a
scrupulous stocktake of inventories was carried out at
the end of the second quarter, on the results of which
the inventories were recorded at their correct and fair
value.
In connection with the foregoing, AS Klementi has
retroactively corrected the performance result for the
first quarter of 2005, as well as the result for the
second quarter with a view to ensuring the correct
accounting of inventories.
Since the business software does not allow us to
precisely allocate said corrections to past quarters, the
changes made to the results of the first quarter are to
be viewed as the evaluation of the management rendered on
the basis its best knowledge, and the aggregate effect of
the accounting of inventories on the result of the half-
year is set out in the report for the first half-year.
Results for six months of 2005
The consolidated net sales of the AS Klementi group in
the first half-year 2005 amounted to EEK 58.0 million
(€3.7 million) and the net loss was EEK 5.6 million (€0.4
million). Sales for the same period in the previous year
amounted to EEK 63.6 million (€4.1 million) and the net
loss was EEK 4.7 million (€0.3 million). Sales decreased
in the first half-year 2005 by 8.8% compared to the
previous year.
Apparel sales made up 74% of total sales in the first
half-year (78% in the first half-year 2004). The
percentage of subcontracted production in the sales
structure increased by 3.2% in the first half-year 2005
compared to the same period of the previous year.
Compared to the same period of the previous year, export
sales decreased by EEK 6.0 million (€0.4 million) in the
first half-year 2005. The reason for the decline in net
sales lies in a decrease of wholesale to Sweden and
Norway.
In the first half-year 2005 the percentage of retail
sales in net sales increased by approximately 9% compared
to the same period of the previous year. Retail sales
accounted for more than 71% of apparel sales in the first
half-year 2005 (44% in the first half-year 2004).
Compared to the same period of the previous year, the
average retail sales per square metre increased by nearly
7.5%. As of the end of June 2005, Klementi was using
2,646 square metres of sales area (compared to 3,154
square metres of retail sales area a year ago).
Starting from 2005, AS Klementi is focusing more on the
development of retail trade. In the first half-year PTA
stores were opened in the Sola Centre in Daugavpils and
in the Mols Centre in Riga. The factory outlet operating
in Stockholm was closed at the end of June.
At the end of June, active operations of the subsidiaries
located in Finland and Sweden were terminated. Klementi
Trading OY commenced economic activities in October 1998
with the aim of wholesale of the production of AS
Klementi in Finland. Klementi Trading AB commenced
economic activities in August 2003 with the aim of
wholesale of the production of AS Klementi in Sweden. As
Estonia’s accession to the European Union has made
trading with other Member States markedly easier, the
need for the administration of operations in said
countries ceased to exist.
As of 30 June 2005, 420 employees worked for the Group
(479 employees as of 30 June 2004).
Profit analysis
Operating profit for the first half-year 2005 before
depreciation of fixed assets amounted to EEK 1.0 million
(€0.06 million), representing an increase by EEK 0.9
million (€0.05 million) when compared to the same period
of the previous year.
Balance Sheet and ratios
The consolidated Balance Sheet total of AS Klementi was
EEK 98.5 million (€6.3 million) as of 30 June 2005. The
Balance Sheet total has decreased by EEK 7.3 million
(€0.5 million) since the beginning of the year.
As of the end of the first half-year 2005, trade
receivables had decreased by EEK 4.3 million (€0.3
million) in connection with the payment of invoices for
spring season products by wholesale customers. Accounts
payable had increased by EEK 1.2 million (€0.1 million)
as of the end of the first half-year 2005. Total debts
decreased by EEK 3.4 million (€0.2 million) over the
first half-year 2005.
The main financial indicators and ratios that
characterise the consolidated data of the AS Klementi
group for the six months of 2005 are as follows:
First half-year First half-year Variation
Main financial indicators 2005 2004
Operating income, EEK thousand 58,158 64,796 -10.2%
Operating profit/loss before 964 1,818 -854
depreciation of fixed assets
(EBITDA), EEK thousand
Margin, % 1.7% 2.8% -
Operating loss (EBIT), EEK thousand -2,518 -2,003 -515
EBIT to net sales, % -4.3% -3.1% -
Loss for period, EEK thousand -5,639 -4,693 -946
ROA, % -5.5% -3.9% -
ROE, % -36.2% -17.2% -
Earnings per share (EPS), EEK -2.89 -2.47 -0.42
Share of apparel sales in total sales, % 73.9% 78.4% -
Current ratio 0,55 0.76 -
Quick ratio 0.17 0.25 -
Inventory turnover 2.06 1.81 -
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): Net 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
30.06.05 30.06.04 31.12.04 30.06.05 30.06.04 31.12.04
EEK EEK EEK EUR EUR EUR
thousand thousand thousand thousand thousand thousand
ASSETS
Current assets
Cash at bank and in 2,956 5,433 3,400 189 347 217
hand
Trade receivables 5,649 10,327 9,906 361 660 633
Other short-term 1,524 339 1,706 98 22 109
receivables
Prepaid expenses 2,144 1,534 1,141 137 98 73
Inventories 27,996 36,986 28,255 1,789 2,363 1,806
Total current assets 40,269 54,619 44,408 2,574 3,490 2,838
Fixed assets
Long-term financial 851 1,156 955 54 74 61
investments
Tangible assets 50,329 58,909 52,896 3,217 3,765 3,381
Intangible assets 7,084 6,678 7,574 453 427 484
Total fixed assets 58,264 66,743 61,425 3,724 4,266 3,926
TOTAL ASSETS 98,533 121,362 105,833 6,298 7,756 6,764
LIABILITIES AND OWNER`s EQUITY
Current liabilities
Debts 53,807 50,352 43,183 3,439 3,218 2,761
Prepayments received 50 20 223 3 1 14
for goods and servies
Trade creditors 10,435 14,244 9,189 667 910 586
Other payables 107 782 - 7 50 -
Taxes payable 2,683 2,724 1,399 171 174 90
Accrued expenses 5,475 2,704 7,747 350 173 495
Short-term provisions - 6 12 - 1 1
Total current 72,557 70,832 61,753 4,637 4,527 3,947
liabilities
Long-term
liabilities
Long-term debt 12,206 21,283 26,219 780 1,360 1,676
Other long-term 191 4,203 25 12 269 2
payables
Long-term provisions 148 68 148 10 4 9
Total long-term 12,545 25,554 26,392 802 1,633 1,687
liabilities
Total liabilities 85,102 96,386 88,145 5,439 6,160 5,634
Owners’ equity
Share capital 19,469 18,969 18,969 1,244 1,212 1,212
Share premium 40,994 40,294 40,294 2,620 2,575 2,575
account
Revaluation reserve 13,876 15,578 13,876 887 996 887
Other reserves 1,046 1,046 1,046 67 67 67
Retained earnings -56,636 -46,439 -44,735 -3,620 -2,968 -2,859
Unrealised exchange- 321 221 139 21 14 9
rate differences
Net profit for -5,639 -4,693 -11,901 -360 -300 -761
financial year
Total owners’ 13,431 24,976 17,688 859 1,596 1,130
equity
TOTAL LIABILITIES 98,533 121,362 105,833 6,298 7,756 6,764
AND OWNERS’ EQUITY
Income Statement – second quarter
Consolidated, unaudited
2005 2004 2005 2004
2nd quarter 2nd quarter 2nd quarter 2nd quarter
EEK EEK EUR EUR
thousand thousand thousand thousand
Operating revenue
Net sales 25,815 24,546 1,650 1,569
Other operating revenue 36 753 2 48
Total operating revenue 25,851 25,299 1,652 1,617
Operating expenses
Change in inventories -3,356 -1,731 -215 -111
Goods, raw materials and 8,192 8,235 524 526
services
Other operating expenses 6,310 7,623 403 487
Staff costs 10,602 10,446 678 668
Other operating charges 542 822 35 53
Total operating expenses 22,290 25,395 1,425 1,623
EBITDA 3,561 -96 227 -6
Depreciation 1,728 1,919 110 123
Operating profit 1,833 -2,015 117 -129
Financial income and expenses
Interest expense -1,491 -1,183 -95 -76
Gains (losses) on conversion 83 -109 5 -7
of foreign currencies
Other financial income and -424 -18 -27 -1
expenses
Total financial income and -1,832 -1,310 117 -84
expenses
Net profit (loss) 1 -3,325 0 -213
Earnings per share
Basic earnings per share 0.00 -1.75 0.00 -0.11
(EEK/EUR)
Diluted earnings per share 0.00 -1.75 0.00 -0.11
(EEK/EUR)
Income Statement – first half-year
Consolidated, unaudited
2005 2004 2005 2004
First half- First half- First half- First half-
year year year year
EEK EEK EUR EUR
thousand thousand thousand thousand
Operating revenue
Net sales 58,033 63,602 3,709 4,065
Other operating revenue 125 1,194 8 76
Total operating revenue 58,158 64,796 3,717 4,141
Operating expenses
Change in inventories 2,618 179 167 11
Goods, raw materials and 18,720 24,875 1,196 1,590
services
Other operating expenses 13,200 14,505 844 927
Staff costs 22,114 22,122 1,413 1,414
Other operating charges 542 1,297 35 83
Total operating expenses 57,194 62,978 3,655 4,025
EBITDA 964 1,818 62 116
Depreciation 3,482 3,821 223 244
Operating profit -2,518 -2,003 -161 -128
Financial income and expenses
Interest expense -2,557 -2,622 -163 -168
Gains (losses) on conversion -10 -65 -1 -4
of foreign currencies
Other financial income and -554 -3 -35 0
expenses
Total financial income and -3,121 -2,690 -199 -172
expenses
Net profit (loss) -5,639 -4,693 -360 -300
Earnings per share
Basic earnings per share -2.90 -2.47 -0.18 -0.16
(EEK/EUR)
Diluted earnings per share -2.90 -2.47 -0.18 -0.16
(EEK/EUR)
Toomas Leis
CEO of AS Klementi
tel. + 372 6 710 700
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