Revenio Group Corporation Stock Exchange Release 4 August 2014 at 09:00 hrs.
Revenio Group Corporation's Interim Report January 1-June 30, 2014: Q2 IN LINE
WITH EXPECTATIONS - NET SALES UP, OPERATING RESULT REMAINED AT THE PREVIOUS
YEAR'S LEVEL
Highlights for April-June, 2014:
* The Group's net sales were 6.8 MEUR (6.4), growth 6.2 % and operating profit
1.4 MEUR (1.5), decrease 2.3 %.
* Revenio Health Tech segment net sales grew by 10.6%. Investments made in
accordance with the strategy in research and development as well as in
marketing and approval processes increased costs. For this reason, the
segment's operating profit decreased compared to the second quarter of 2013
and was EUR 1.1 (1.3) million.
* Probe sales grew strongly, with an increase of 35.0% compared to the second
quarter of 2013.
* Demand for Health Tech segment products was high especially in the UK,
Japan, Australia, Scandinavia, Germany and Russia.
* Sales of tonometers designed for veterinarians grew strongly with an
increase of 23.6% compared to the second quarter of 2013.
* Despite the macroeconomic challenges, the Revenio Technology and Services
segment performed reasonably well in the first half of the year. The
segment's net sales were up 1.8% compared to the second quarter of 2013.
Operating profit grew significantly, with an increase of 53.3% compared to
the second quarter of 2013. Operating profit was boosted especially by the
successful actions taken to improve the efficiency of the production of
Boomeranger Boats, which are part of the Rigid Inflatable Boats business.
* The growth of sales in Health Tech is estimated to be stronger in the second
half of the year than the growth achieved during the first half of the year.
* The Group's financial guidance for 2014 remains unchanged:
Net sales and operating profit of continuing operations exclusive of non-
recurring items are expected to see year-on-year growth. The biggest growth
is seen in the Health Tech segment. The risks posed by growth in the
Technology and Services segment have increased due to economic uncertainty.
Highlights for January-June 2014:
* The development in the Revenio Health Tech segment continued to be positive
despite the significant investments in future growth. The segment's net
sales were EUR 7.3 (6.4) million, an increase of 14.4%. Operating profit was
EUR 2.5 (2.4) million, an increase of 1.7%.
* Net sales of the Revenio Technology and Services segment decreased to EUR
5.8 (6.4) million, a decrease of 9.6% compared to the first half of 2013.
Operating profit grew to EUR 0.6 million (0.5), an increase of 9.9%.
* The Annual General Meeting held on March 20, 2014 decided to distribute a
dividend of EUR 0.30 (0.20) per share.
* The Annual General Meeting elected Kyösti Kakkonen, LL.B. and Pekka Rönkä,
M.Sc. as new members of the Board of Directors.
Group key figures:
April-June 2014
* Net sales were EUR 6.8 (6.4) million, an increase of 6.2%
* Operating profit was EUR 1.4 (1.5) million, or 21.2 (23.0) percent of net
sales, a decrease of 2.3%.
* Net sales of the Revenio Health Tech segment totaled EUR 3.6 (3.2) million,
an increase of 10.6%.
* Operating profit of the Revenio Health Tech segment amounted to EUR 1.1
(1.3) million, representing 30.0 (40.1) percent of net sales, a change of
EUR -0.2 million, a decrease of 17.2%.
* Net sales of the Revenio Technology and Services segment totaled EUR 3.2
(3.1) million, a change of EUR 0.1 million and an increase of 1.8%.
* Operating profit of Revenio Technology and Services amounted to EUR 0.5
(0.4) million, representing 17.3 (11.5) percent of net sales, a change of
EUR 0.2 million, an increase of 53.3%.
* The net result for discontinued operations was EUR -0.1 (0.0) million.
* Diluted and undiluted earnings per share were EUR 0.16 (0.13).
January-June 2014
* Net sales were EUR 13.0 (12.7) million, an increase of 2.3%
* Operating profit was EUR 2.6 (2.6) million, or 20.0 (20.3) percent of net
sales, an increase of 0.9%
* Net sales of the Revenio Health Tech segment totaled EUR 7.3 (6.4) million,
a change of EUR 0.9 million, an increase of 14.4%.
* Operating profit of the Revenio Health Tech segment amounted to EUR 2.5
(2.4) million, representing 34.2 (38.5) percent of net sales, a change of
EUR 0.1 million, an increase of 1.7%.
* Net sales of the Revenio Technology and Services segment totaled EUR 5.8
(6.4) million, a change of EUR -0.6 million, a decrease of 9.6%.
* Operating profit of Revenio Technology and Services segment amounted to EUR
0.6 (0.5) million, representing 10.4 (8.6) percent of net sales, a change of
EUR 0.1 million, an increase of 9.9%.
* The net result for discontinued operations was EUR -0.1 (0.0) million.
* Pre-tax profit, continuing operations, EUR 2.6 million (2.6).
* Undiluted earnings per share, continuing operations EUR 0.30 (0.24).
* Diluted earnings per share, continuing operations EUR 0.30 (0.24).
* Cash flow from continuing operations EUR 1.7 (2.7) million.
Olli-Pekka Salovaara, President & CEO:
"The investments in our Health Tech segment, which were made in accordance with
our strategy, are proceeding according to plan and are visible as an increase in
costs in the second quarter. These development projects are very important to
the growth of our Health Tech segment in the coming years. Our investments in
research and product development as well as sales and marketing are among the
largest in the history of the Revenio group.
The growth of net sales in our Health Tech segment was not quite what we are
used to. This is due to the state of confusion in our main market in the US that
was caused to our customers by president Obama's health care system's renewal
process. The dip caused by the renewal has been publically recognized and
experienced also by other Health Tech companies in the US marketplace. However,
the situation has settled down and the future is again clearer. In line with the
seasonality that is typical for our Health Tech segment, the sales focuses
towards the end of the year.
The research and development projects that we launched have already yielded
several interesting development ideas, the potential of which we will be
studying during the upcoming months.
In June, the new Icare HOME tonometer was completed and the sales activities
were started in Europe and Asia. The feedback we have received has been very
encouraging. The sales activities of the new product are initially focused on
the local studies and tests carried out by leading universities and
ophthalmologists. In the US, we are still collecting clinical test results that
are needed as an attachment to the FDA application. Test subjects for these
clinical tests are required to meet strict criteria and have certain IOP, and
the effort required to find suitable test subjects has been greater than
anticipated. Despite measures to improve the efficiency of the process, the
daily number of patients meeting the exact criteria has been smaller than
expected and for this reason this phase, which is essential to the approval
process, will take longer than anticipated. When the tests are completed, we
will submit the application to the FDA.
Important for future growth is also that during the review period, we started
sales of the first serially manufactured Oscare Medical osteoporosis measurement
devices. In addition, we are already in the process of actively building the
distribution network in various countries.
As expected, the net sales of our Technology and Services segment were lower
than in the first half of 2013. However, there was a significant increase in
operating profit, which was mainly due to the actions taken to improve the
efficiency of the production of Boomeranger Boats, which are part of the Rigid
Inflatable Boats business. The Technology and Services business segment is still
sensitive to the general uncertainty prevailing in the market."
APRIL-JUNE 2014 COMMENTS:
REVENIO HEALTH TECH
Icare Finland Oy, which represents the Revenio Health Tech segment, had its
operational focus on global sales efforts, new research and development projects
as well as new sales opportunities, such as launching the Icare HOME tonometer.
The device received a CE marking in June. The Icare HOME tonometer, which is
designed to be used on the recommendation of an ophthalmologist as part of the
treatment process for self-monitoring of intraocular pressure is expected to be
a significant future growth area for Icare. Intraocular pressure may vary
significantly during the day. According to various clinical studies, IOP is
often higher during the night. Therefore, collecting IOP information during
different times of the day facilitates and specifies the work of the doctor
making the diagnosis. For the patient who needs several measurements during the
day, home monitoring is also financially more appealing than a stay at hospital.
Now, the doctors can lend patients a tonometer to be used at home as part of the
treatment process.
In the United States, the clinical studies related to the FDA approval process
have proceeded according to the plan, even though it was challenging to find
test subjects who met the strict criteria, especially in relation to intraocular
pressure. The daily number of patients at the Johns Hopkins Hospital has been
lower than estimated and for this reason the study has progressed slower than
anticipated. Clinical trials are an important part of the FDA approval process
and that is why we want to invest in them. Once the studies have been completed,
we will submit an application to the FDA.
In April-June, 2014, the sales of Revenio Health Tech segment were EUR 3.6
(3.2) million, growing by 10.6 % compared to the second quarter of 2013.
Operating profit was EUR 1.1 (1.3) million, which, as expected, was lower than
the operating profit in the second quarter of 2013. This was due to the
development projects that were implemented according to the strategy. The
research and development projects have already yielded interesting development
ideas, the potential of which we will be studying during the upcoming months.
In general, the market situation was good, especially in the UK, Japan,
Australia, Scandinavia, Germany and Russia. During the review period, it became
evident that there are certain challenges related to political changes in
health-care In the United States. However, we are convinced that the challenges
posed by the political change in the market are temporary. There have been no
changes in the competition and, according to the numerous signals we have
received, the entire industry has experienced similar challenges during the
first months of the year. We have taken actions to boost sales operations in the
United States, and are, among other things, increasing our sales power in this
market, as well as assessing the possibilities of a variety of commercial
partnerships with leading companies in this sector.
After the review period, as part of the intensification of the US sales and
marketing efforts, we have made the decision to open our own office in North
Carolina during the fall of 2014. With these measures we will ensure Icare a
strong foothold in the US market, and build the future growth.
The sales of the Icare VET tonometer, which is designed for measuring the
intraocular pressure in animals, were up 23.6% year-on-year. This product group
showed strong growth during the period, especially in the United States and
Europe.
Probe sales increased by 35.0% and in the future the importance of this market
is expected to grow even further. The increased use of devices, the increased
number of patient-oriented screenings, and the change in the user-profile of the
devices are boosting the growth of probe sales. Towards the end of the year, the
transfer of the central phases of probe production to Finland is expected to
have a positive effect on the probe production process, capacity and margin
structure.
In June, the Icare HOME was presented in Nice and Hong Kong to partners and
glaucoma specialists. The reception was very positive and the doctors were
extremely interested in our concept. We will continue to market the product this
fall by participating in the industry's major conferences and by taking part in
local and international studies.
In recent years, there has been a growing commercial and clinical interest in
around-the-clock measurement of intraocular pressure that the patient can
perform at home in their normal environment, and, based on the feedback we have
received, we believe our concept is an extremely competitive solution to cover
this need.
During this period, we started sales of the first serially manufactured Oscare
Medical osteoporosis measurement devices. At the same time, we mapped target
customer segments and started to build a distribution network. In addition,
training of the first distributors outside Finland was started, and we
established relationships to opinion leaders central to the development of our
business. Clinical studies in Finland proceeded in accordance with the plan and
the initial results support our previous understanding of the device benefits in
bone health screening. The Oscare Medical web site as well as the marketing
material were updated and we introduced the slogan Better Bone Health - Better
Life"."
REVENIO TECHNOLOGY AND SERVICES
During the period, the business areas in Revenio's Technology and Services
segment included the following: Contact Center business, Rigid Inflatable Boats
business and Software business.
In line with its strategy, the Revenio Technology and Services segment focuses
on maintaining a good profitability trend, organic growth and efficiency. The
segment's operating activities are sensitive to the general economic
developments, which is why the Revenio Group's guidance for 2014 states that the
risks related to the segment's business are higher due to the economic
uncertainty.
In April-June 2014, the segment recorded net sales of EUR 3.2 (3.1) million, an
increase of 1.8% compared to the second quarter of 2013. Operating profit
increased substantially and was EUR 0.5 million (0.4), growing by 53.3% year-on-
year. The operating result was significantly affected by the measures taken to
increase the production efficiency of the Rigid Inflatable Boats business and
the increased profitability obtained by these actions.
Contact Center business
The net sales of the Contact Center business increased year-on-year, but as a
result of the business development actions taken during the first months of the
year, operating profit fell slightly. The demand for professional services
remained good, despite the challenging market conditions in the industry. Midas
Touch, which represents the Contact Center business, has invested, in
particular, in the quality of the services it provides and in customer service
excellence, which has brought the company major new projects and customers.
Rigid Inflatable Boats business
Boomeranger Boats Oy, which represents the Rigid Inflatable Boats business,
increased both its net sales and operating profit. The main reasons for this
were the timing of project deliveries, which took place during the review
period, and measures to improve production efficiency. The operating model of
small, customer-specific production batches, which earlier presented challenges,
has been modified in order to make serial manufacturing more possible.
Software business
The net sales and operating profit of Done Software Solutions Oy, which
represents the software business, fell slightly compared to the second quarter
of 2013. The business environment has become more challenging because of the
general economic situation. However, even in challenging times, it is estimated
that companies will still invest in their internal logistics in order to improve
their production and economic efficiency. During the review period, the Software
business focused on growth in the small-scale development and expansion projects
for current customers.
NET SALES, PROFITABILITY AND PROFIT
Consolidated net sales from the Revenio Group's continuing operations for the
period January 1-June 30, 2014 totaled EUR 13.0 (12.7) million. This represented
a net sales growth of 2.3 %. Earnings before interest, taxes, depreciation and
amortization (EBITDA) from continuing operations amounted to EUR 2.9 (2.9)
million, or 22.3 (22.9) % of net sales. Consolidated operating profit (EBIT)
from continuing operations was EUR 2.6 (2.6) million, representing 20.0 (20.3)
percent of net sales. Profit before taxes for continuing operations totaled EUR
2.6 (2.6) million, or 20.1 (20.2) % of net sales. The net result for continuing
operations was EUR 2.3 (1.9) million, or 18.0% (14.8) percent of net sales. Net
result for discontinued operations totaled EUR -0.1 million (0.0). Net profit
for the period totaled EUR 2.2 million (1.9). Undiluted earnings per share from
continuing operations were EUR 0.30 (0.24) and diluted earnings per share were
EUR 0.30 (0.24). For discontinued operations, the undiluted and diluted earnings
per share were EUR -0.01 (0.00). Dilution-adjusted earnings per share for
continuing and discontinued operations during the period were EUR 0.29 (0.24).
Equity per share was EUR 1.91 (2.01).
The Revenio Health Tech segment's net sales grew by 14.4% during the review
period, while the net sales of the Technology and Services segment decreased by
9.6%. On the whole, the consolidated net sales of continuing operations saw a
year-on-year increase of 2.3% and totaled EUR 13.0 (12.7) million.
Operating profit of the Revenio Health Tech segment amounted to EUR 2.5 (2.4)
million, an increase of 1.7% year-on-year, despite the larger development
investments. The Technology and Services segment's operating profit was EUR 0.6
(0.5) million, which was 9.9% higher than the previous year. This was mainly due
to the successful actions taken to improve the efficiency of the production of
Rigid Inflatable Boats.
BALANCE SHEET, FINANCIAL POSITION AND INVESTMENTS
The consolidated balance sheet total stood at EUR 21.4 million (23.3) on
6/30/2014. Shareholders' equity came to EUR 15.1 million (15.8). Interest-
bearing net liabilities at the end of the review period totaled EUR -0.9 million
(-2.7) and gearing stood at -5.7% (-17.2). The consolidated equity ratio was
72.6% (69.8). The Group's liquid assets amounted to EUR 2.7 million (4.5) at the
end of the review period.
Despite the Health Tech segment's investments on future growth, the Group's
financial position remained stable throughout the review period.
Cash flow from continuing operations totaled EUR 1.7 (2.7) million. The Group's
purchases of PPE and intangible assets totaled EUR 0.6 million (0.3). These
investments were concentrated primarily on product development.
Net sales and segment's margin excluding non-recurring items were as
follows:
Segment Segment
profit profit
Net Sales Net Sales margin margin
1-6/2014 1-6/2013 1-6/2014 1-6/2013
MEUR share MEUR share MEUR % MEUR %
Revenio Health
Tech 7.3 56 6.4 44 % 2.5 34 2.4 37
Revenio
Technology and
Services 5.8 44 6.4 56 % 0.6 10 0.5 9
Total 13.0 100 12.7 100 % 3.1 24 3.0 24
Parent company
expenses -0.5 -0.4
Operating Profit, Group
Total 2.6 20 2.6 20
The net sales, margin, and profit, by segment and quarter
, excluding non-recurring items, were as follows:
MEUR Q2/14 Q1/14 Q4/13 Q3/13 Q2/13 Q1/13
Net sales:
Revenio Health Tech 3.6 3.7 4.1 3.0 3.2 3.1
Revenio Technology
and Services 3.2 2.6 3.0 2.8 3.1 3.3
Total 6.8 6.2 7.1 5.8 6.3 6.4
Segment profit margin:
Revenio Health Tech 1.1 1.4 1.7 1.2 1.3 1.1
Revenio Technology
and Services 0.5 0.1 0.2 0.4 0.4 0.2
Total 1.6 1.5 1.9 1.6 1.7 1.3
Parent co. expenses -0.2 -0.3 -0.2 -0.2 -0.2 -0.2
Operating profit 1.4 1.2 1.7 1.4 1.4 1.1
Operating profit-% 21 19 20 22 20 18
PERSONNEL
During the review period, the number of personnel employed by the Group in
continuing operations averaged 208 (212). At the end of the period, the number
of employees stood at 226 (230).
Average no. of employees by segments:
30 June 2014 30 June 2013 Change
Revenio Health Tech 24 17 7
Revenio Technology
and Services 179 191 -12
Parent Company 5 4 1
Group Total 208 212 -4
Wages, salaries, and other remuneration paid for continuing operations during
the period totaled EUR 3.7 million (3.6).
SHARES, SHARE CAPITAL AND MANAGEMENT HOLDINGS
On June 30, 2014, the Revenio Group Corporation's fully paid-up share capital
registered with the Trade Register was EUR 5,314,918.67 and the number of shares
totaled 7,883,019.
During the review period, the number of shares increased by 32,540 following
subscriptions made on the basis of the 2007 stock option scheme. Series 2007A
option rights were used to subscribe for 0 shares, 2007B option rights to
subscribe for 19,540 shares and 2007C options rights to subscribe for 13,000
shares. The subscription period for 2007A options ended on May 1, 2013. The
outstanding 2007B and 2007C options can be used to subscribe for a total of
92,390 shares until the close of the subscription period on November 1, 2014
(2007B) and May 1, 2016 (2007C).
The company has one class of share, and all shares confer the same voting
rights and an equal right to dividends and the company's funds. On June
30, 2014, the President & CEO, members of the Board of Directors and their
closely related parties held 11.9% of the company's shares (936,798 shares) and
0% of the option rights.
CHANGES IN SHAREHOLDING
On March 26, 2014, it was announced that Eyemaker's Finland Oy's share of the
total number of shares and voting rights in Revenio Group Corporation had fallen
under one twentieth (1/20). Eyemaker's Finland Oy now holds 4.45% of the shares
and voting rights in Revenio Group Corporation. Eyemaker's Finland Oy owns
350,000 shares in Revenio Group Corporation.
CURRENT OPTION RIGHTS
The company has a corporate option scheme that began in 2007. On the basis of
the share issue authorization approved by the Annual General Meeting of April
3, 2007, the Board of Revenio Group Corporation decided, on November 23, 2007,
on a new corporate option scheme comprising a maximum of 3,684,365 option
rights. Ten option rights entitle the holder to subscribe for one (1) Revenio
Group Corporation share. On June 30, 2014, the proportion of shares that can
still be subscribed for on the basis of the option rights issued represented a
maximum of 1.2 percent of the company's shares and votes, once all new shares
subscribed for with these option rights have been registered. New shares
subscribed for via the option program entitle the holder to a dividend from the
subscription year onwards.
The option rights have been divided into three series: Series A (1,684,365),
Series B (1,000,000) and Series C (1,000,000). The subscription periods are as
follows: Series A, May 1, 2009-May 1, 2013, Series B, November 1, 2010-November
1, 2014, and Series C, May 1, 2012-May 1, 2016. The share subscription price
will be the trade-weighted average price during the period November 1-30, 2007
multiplied by ten (EUR 5.99, Series A), April 1-30, 2009 multiplied by ten (EUR
1.75, Series B), and November 1-30, 2010 multiplied by ten (EUR 1.69, Series C).
No new options were issued to the personnel during the review period.
TRADING ON NASDAQ OMX HELSINKI
During January 1-June 30, 2014, the Revenio Group Corporation's share turnover
on the NASDAQ OMX Helsinki exchange totaled EUR 22.8 (11.3) million,
representing 1.6 (1.7) million shares or 20.4% (22.2) of all shares outstanding.
The highest trading price was EUR 17.20 (8.10) and the lowest EUR 11.32 (4.10).
At the end of the review period, the closing price was EUR 15.95 (7.55), and the
average share price EUR 14.22 (6.48). The Revenio Group Corporation's market
value stood at EUR 125.7 million (59.2) on 6/30/2014.
RISK MANAGEMENT
The Group's major business risks are presented in its financial statement
bulletin of 2/12/2014. No changes in these risks have occurred since the release
of the bulletin.
ANNUAL GENERAL MEETING AND BOARD AUTHORIZATIONS IN EFFECT
The Annual General Meeting held on 3/20/2014 approved the company's financial
statements and discharged the President & CEO and the members of the Board of
Directors from liability for the financial year January 1-December 31, 2013.
The Annual General Meeting decided to elect five members to the Board of
Directors. Rolf Fryckman, Ari Kohonen and Pekka Tammela were re-elected as Board
members, and Kyösti Kakkonen and Pekka Rönkä were elected as new members. At its
organization meeting, held after the Annual General Meeting, the Board of
Directors re-elected Pekka Tammela as Chairman.
The AGM decided that the Chairman of the Board should be paid a fee of EUR
36,000 per annum and other Board members EUR 18,000 per annum. A total of 40
percent of Board members' emoluments will be settled in the form of company
shares, while 60 percent will comprise a monetary payment.
The AGM re-elected PricewaterhouseCoopers Oy, Authorized Public Accountants, as
the company's auditors with Juha Tuomala, Authorized Public Accountant, as
principal auditor.
The AGM accepted the Board's proposal on profit distribution, according to
which the parent company's net result for the financial period, EUR -304,972.66,
will be added to retained earnings, and a dividend of EUR 0.30 per share will be
paid.
The Annual General Meeting rescinded the earlier authorization to buy back
771,107 of the company's own shares, and authorized the Board of Directors to
buy back a maximum of 785,047 of the company's own shares following the approval
of the reverse share split, either in one or several installments, using the
company's unrestricted equity, in which case any buyback will reduce the amount
of distributable earnings. The company may buy back shares in order to develop
its capital structure, in order to finance and implement any corporate
acquisitions or other transactions, and to implement share-based incentive plans
or otherwise dispose of or cancel them. This authorization is valid until
4/30/2015.
The AGM authorized the Board of Directors, following the approval of the
reverse share split, to decide on the issuance of a maximum of 3,000,000 shares
or to grant special rights (including stock options) conferring entitlement to
shares, as referred to in Section 1 of Chapter 10 of the Limited Liability
Companies Act, in one or several tranches. This authorization was granted for
the purpose of financing and implementing any prospective corporate acquisitions
or other transactions, implementing the company's share-based incentive schemes,
or for other purposes determined by the Board.
This authorization is valid until 4/30/2015. This authorization shall supersede
the authorization to decide on a share issue and on the granting of special
rights giving entitlement to shares granted at the AGM of March 21, 2013.
BOARD OF DIRECTORS AND AUDITORS
As of March 21, 2014, the Revenio Group Corporation's Board of Directors has
consisted of: Pekka Tammela, M.Sc. (Econ.), Authorized Public Accountant,
partner in PJ Maa Partners Oy (Chairman); Rolf Fryckman, optician, Chairman of
the Board of Eyemaker's Finland Oy; Ari Kohonen, M.Sc. (Eng.), M.Sc. (Econ.),
Chairman of the Board of Gerako Oy; and, as new members, Kyösti Kakkonen, LL.B.,
Chairman of the Board of Joensuun Kauppa ja Kone; and Pekka Rönkä, M.Sc. (Eng.).
PricewaterhouseCoopers Oy, Authorized Public Accountants, serves as the
company's auditor, with Juha Tuomala, Authorized Public Accountant, as principal
auditor.
MAJOR EVENTS AFTER THE REVIEW PERIOD
There have been no major events since the end of the review period.
OUTLOOK FOR 2014
Net sales and operating profit of continuing operations exclusive of non-
recurring items are expected to see year-on-year growth. The biggest growth is
foreseen in the Health Tech segment. The risks posed by growth in the Technology
and Services segment have increased due to financial uncertainty.
STATEMENT OF ACCOUNTING POLICIES
This interim report has been prepared in compliance with the requirements of IAS
34 Interim Financial Reporting. The figures are unaudited.
GROUP KEY FIGURES AND RATIOS (MEUR) 1-6/2014 1-6/2013 1-12/2013
Net sales, continuing operations 13.0 12.7 25.7
Ebitda, continuing operations 2.9 2.9 6.3
Ebitda-%, continuing operations 22.3 22.9 24.3
Operating profit, continuing operations 2.6 2.6 5.6
Operating profit-%, continuing operations 20.0 20.3 21.7
Pre-tax profit, continuing operations 2.6 2.6 5.5
Pre-tax profit-%, continuing operations 20.1 20.2 21.3
Net profit from discontinued operations -0.1 0.0 0.0
Net profit, continuing operations 2.3 1.9 4.3
Net profit-%, continuing operations 18.0 12.4 16.7
Gross capital expenditure 0.6 0.3 0.9
Gross capital expenditure-% 9.2 2.0 3.5
R&D costs 0.6 0.1 0.9
R&D costs-% from net sales 4.7 1.1 3.3
Gearing-% -5.7 -17.2 -16.8
Equity ratio-% 72.6 69.8 66.1
Return on investment-% (ROI) 28.3 25.9 29.7
Return on equity-% (ROE) 30.9 25.1 25.7
Undiluted earnings per share, EUR, continuing
operations 0.30 0.24 0.55
Diluted Earnings per share, EUR, continuing
operations 0.30 0.24 0.55
Undiluted earnings per share, EUR,
discontinued operations -0.01 0.00 0.00
Diluted Earnings per share, EUR, discontinued
operations -0.01 0.00 0.00
Equity per share, EUR 19.1 2.01 1.91
Average no. of employees, continuing
operations 208 212 209
Cash flow from operating activities 1.1 2.7 5.5
Cash flow from discontinued activities 0.2 -0.6 -0,1
Cash flow from investing activities -0.6 -0.3 0.1
Net cash used in financing activities -2.6 -2.3 -5.9
Total cash flow -1.9 -0.5 -0.4
CONSOLIDATED COMPREHENSIVE 1-6/2014 1-6/2013 1-12/2013
INCOME STATEMENT (MEUR)
NET SALES 13.0 12.7 25.7
Other operating income 0.0 0.0 0.1
Materials and services -3.2 -3.2 -6.5
Employee benefits -4.5 -4.3 -8.9
Depreciation/amortization -0.3 -0.3 -0.7
Other operating expenses -2.4 -2.3 -4.2
OPERATING PROFIT, CONTINUING OPERATIONS 2.6 2.6 5.6
Share of associates' results 0.0 0.0 0.0
Financial expenses (net) 0.0 0.0 -0.1
PRE-TAX PROFIT, CONTINUING OPERATIONS 2.6 2.6 5.6
Income tax expense -0.3 -0.7 -0.1
Net profit from continuing operations 2.3 1.9 5.5
Net profit from discontinued operations -0.1 0.0 -1.1
NET PROFIT 2.2 1.9 4.3
Other comprehensive income items 0.0 0.0 0.0
Income tax expense for comprehensive income 0.0 0.0 0.0
Other comprehensive income items
after taxes 0.0 0.0 0.0
TOTAL COMPREHENSIVE INCOME 2.2 1.9 4.3
Net profit attributable to:
Parent company shareholders 2.2 1.9 4.3
Total comprehensive income attributable to:
Parent company shareholders 2.2 1.9 4.3
Earnings per share, undiluted,EUR, continuing
operations 0.30 0.24 0.55
Earnings per share, diluted,EUR, continuing
operations 0.30 0.24 0.55
Earnings per share, undiluted,EUR,
discontinued operations -0.01 0.00 0,00
Earnings per share, diluted,EUR, discontinued
operations -0.01 0.00 0,00
INCOME STATEMENT (MEUR) Q2/2014 Q2/2013
NET SALES 6.8 6.4
Other operating income 0.0 0.0
Materials and services -1.8 -1.5
Employee benefits -2.2 -2.2
Depreciation/amortization -0.2 -0.2
Other operating expenses -1.2 -1.1
OPERATING PROFIT, CONTINUING OPERATIONS 1.4 1.5
Share of associates' results 0.0 0.0
Financial expenses (net) 0.0 0.0
PRE-TAX PROFIT, CONTINUING OPERATIONS 1.4 1.4
Income tax expense -0.1 -0.4
Net profit from continuing operations 1.3 1.0
Net profit from discontinued operations -0.1 0.0
NET PROFIT 1.2 1.0
Other comprehensive income items 0.0 0.0
Income tax expense for comprehensive income 0.0 0.0
Other comprehensive income items
after taxes 0.0 0.0
TOTAL COMPREHENSIVE INCOME 1.2 1.0
Net profit attributable to:
Parent company shareholders 1.2 1.0
Total comprehensive income attributable to:
Parent company shareholders 1.2 1.0
CONSOLIDATED BALANCE SHEET
(MEUR) 30 June 2014 30 June 2013 31 Dec 2013
ASSETS
NON-CURRENT ASSETS
Property. plant and equipment 1.3 1.5 1.3
Goodwill 7.0 8.1 7.0
Intangible assets 2.7 0.6 2.4
Shares in associates 0.0 0.0 0.0
Deferred tax assets 0.6 0.9 0.5
TOTAL NON-CURRENT ASSETS 11.6 11.2 11.3
CURRENT ASSETS
Inventories 1.2 1.7 1.1
Trade and other receivables 4.8 4.3 4.5
Cash and cash equivalents 2.7 4.5 4.6
TOTAL CURRENT ASSETS 8.7 10.5 10.2
Non-current assets held
for sale 1.1 1.7 1.2
TOTAL ASSETS 21.4 23.3 22.6
LIABILITIES AND SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY
Share capital 5.3 5.3 5.3
Share premium 2.4 2.4 2.4
Fair value reserve 0.3 0.3 0.3
Invested unrestricted capital
reserve 4.9 7.8 4.5
Retained earnings/loss 2.2 0.0 2.4
TOTAL EQUITY. attributable to holders
of parent company equity 15.1 15.8 15.0
TOTAL SHAREHOLDERS' EQUITY 15.1 15.8 15.0
LIABILITIES
NON-CURRENT LIABILITIES
Deferred tax liabilities 0.0 0.2 0.1
Provisions 0.1 0.1 0.1
Financial liabilities 1.3 1.0 1.3
TOTAL LONG-TERM LIABILITIES 1.4 1.3 1.6
CURRENT LIABILITIES
Advance payments 0.7 0.8 1.3
Trade and other payables 3.2 3.6 3.5
Financial liabilities 0.6 0.8 0.8
TOTAL SHORT-TERM LIABILITIES 4.5 5.2 5.6
Long-term liabilities held
for sale 0.4 1.1 0.5
TOTAL LIABILITIES 6.3 7.6 7.7
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 21.4 23.3 22.6
CONSOLIDATED STATEMENT OF CHANGE IN EQUITY (MEUR)
Share Share Other Retained Total
capital Premium Reserves Earnings Equity
Balance 1 Jan 2014 5.3 2.4 4.8 2.4 15.0
Dividend distribution 0.0 0.0 0.0 -2.2 -2.2
Options expense
adjustment 0.0 0.0 0.0 0.1 0.1
Net profit 0.0 0.0 0.0 2.3 2.3
Balance 30 June 2014 5.3 2.4 4.8 2.6 15.1
Share Share Other Retained Total
capital Premium Reserves Earnings Equity
Balance 1 Jan 2013 5.3 2.4 7.4 -0.4 14.7
Dividend distribution 0.0 0.0 0.0 -1.6 -1.6
Used option rights 0.0 0.0 0.8 0.0 0.8
Net profit 0.0 0.0 0.0 1.9 1.9
Balance 30 June 2013 5.3 2.4 8.2 -0.1 15.8
CONSOLIDATED CASH FLOW STATEMENT (MEUR) 1-6/2014 1-6/2013 1-12/2013
Net profit 2.2 1.9 4.3
Adjustments to net profit 0.6 1.4 0.9
Change in working capital -1.4 -0.6 0.3
Interest paid -0.3 0.0 0.0
Interest received 0.0 0.0 0.0
CASH FLOW FROM OPERATING ACTIVITIES 1.1 2.7 5.5
Cash flow from discontinued operations 0.2 -0.6 -0.1
Sales of subsidiaries
and associates' shares (net) 0.0 0.0 1.7
Purchase of subsidiary companies 0.0 0.0 -0.7
Purchase of PPE -0.1 -0.3 -0.3
Purchase of Intangible assets -0.5 0.0 -0.6
NET CASH USED IN INVESTING ACTIVITIES -0.6 -0.3 0.1
Used options rights 0.1 0.8 0.8
Paid dividends and repayments of capital -2.4 -1.6 -4.8
Repayments of long-term borrowings 0.0 -1.4 -1.7
Long-term loans received -0.3 0.0 0.0
Finance lease principal payment 0.0 -0.1 -0.1
Loans for associated companies granted 0.0 0.0 -0.0
NET CASH USED IN FINANCING ACTIVITIES -2.6 -2.3 -5.9
Net change in cash and equivalents -1.9 -0.5 -0.4
Cash and equivalents. period-start 4.6 5.0 5.0
Cash and equivalents. period-end 2.7 4.5 4.6
NET SALES AND OPERATING PROFIT BY QUARTER (MEUR)
Q2/2014 Q1/2014 Q4/2013 Q3/2013 Q2/2013 Q1/2013
Net sales 6.8 6.3 7.2 5.8 6.4 6.4
Oper. Profit 1.4 1.2 1.7 1.4 1.5 1.1
Oper. profit.-% 21 19 23 23 23 18
MAIN SHAREHOLDERS 30 June 2014
No. of shares %
1. Merivirta Jyri 950,000 12 %
2. Joensuun Kauppa ja Kone Oy 441,509 6 %
3. Eyemaker's Finland Oy 350,000 4 %
4. Gerako Oy 350,000 4 %
5. Sijoitusrahasto Evli Suomi Osake 338,087 4 %
6. Keskinäinen Eläkevakuutusyhtiö Etera 265,000 3 %
7. Alpisalo Mia 211,949 3 %
8. Sijoitusrahasto Danske Suomi kasvuosake 150,000 2 %
9. Salovaara Olli-Pekka 109,207 1 %
10. Kirkon Keskusrahasto 92,569 1 %
Revenio Group Corporation
Board of Directors
For additional information:
President & CEO Olli-Pekka Salovaara, tel. +358 40 567 5520
olli-pekka.salovaara@revenio.fi
http://www.revenio.fi
DISTRIBUTION:
NASDAQ OMX Helsinki
Financial Supervisory Authority (FIN-FSA)
Principal media
www.revenio.fi
The Revenio Group in brief
Revenio is a Finnish health tech group whose core business is tonometers. The
Revenio Health Tech segment comprises the business operations of Icare Finland
Oy. The widely patented Icare product family is the current cornerstone of the
Group's success. Revenio seeks vigorous growth in health technology, both
organically and through acquisitions and mergers.
The Revenio Group also includes other business operations, which are grouped
under the Technology and Services segment. This segment's operations have a
shared global market and represent the cutting edge of technology products and
services in their industry. These businesses are profitable in their industries
and generate positive cash flow.
In 2013, the Revenio Group's net sales totaled EUR 25.7 million, with its
operating margin standing at 21.7 %. The Revenio Group Corporation is listed on
NASDAQ OMX Helsinki.
[HUG#1846094]
Revenio Group Corporation's Interim Report January 1-June 30, 2014: Q2 IN LINE WITH EXPECTATIONS - NET SALES UP, OPERATING RESULT REMAINED AT THE PREVIOUS YEAR'S LEVEL
| Source: Revenio Group Oyj