Wulff’s profitability improvement continued: operating profit without non
-recurring items increased further
This is a summary of Wulff Group Plc’s annual accounts release for financial
year January 1 – December 31, 2015.
Wulff Group’s annual accounts for January-December 2015 is a PDF file attachment
to this stock exchange release and is available on the company’s website at the
address http://www.wulff.fi/en/wulff+group+plc/home/.
WULFF GROUP: KEY POINTS JANUARY – DECEMBER 2015
· In 2015, net sales totalled EUR 68.8 million (EUR 74.3 million). Net sales
decreased by -7.3 percent (-11.1 %).
· In 2015, EBITDA was EUR 2.0 million (EUR 2.1 million) being 2.9 percent (2.8
%) of net sales. In 2015, EBITDA included non-recurring write downs of
inventories and fixed assets of EUR 0.2 million. In 2014, EBITDA included non
-recurring income of EUR 1.4 million regarding sale of real estate and sale of
subsidiary.
· In 2015, EBITDA without non-recurring items was EUR 2.2 million (EUR 0.7
million) being 3.2 percent (1.0 %) of net sales.
· In 2015, the operating result (EBIT) amounted to EUR 0.5 million (EUR 1.1
million). In 2015, EBIT included non-recurring items downs of EUR 1.0 million
regarding goodwill impairment and inventory and fixed assets write downs. In
2014, EBIT included non-recurring income of EUR 1.4 million regarding sale of
real estate and subsidiary.
· In 2015, the operating result (EBIT) without non-recurring items amounted to
EUR 1.5 million (EUR -0.3 million).
· Earnings per share (EPS) was EUR -0.03 (EUR 0.11) in 2015. Earnings per
share (EPS) without non-recurring items was EUR 0.16 (EUR -0.10) in 2015.
· Topi Ruuska was appointed as the CEO of Wulff Group Plc starting 1st of
September, 2015. Long-term CEO and board member Heikki Vienola continues
developing the Group as a chairman of the Board of Directors.
· Equity-to-assets ratio increased to 46.4 percent (31.12.2014: 39.5 %).
· The Board of Directors proposes to the Annual General Meeting on April 7,
2016 that a dividend of EUR 0.10 per share will be paid.
· Wulff estimates 2016 operating profit to be positive.
+--------------------------------+---------+---------+----------+----------+
| |1-12/2015|1-12/2014|10-12/2015|12-12/2014|
+--------------------------------+---------+---------+----------+----------+
|Net sales, EUR million |68.8 |74.3 |18.6 |20.5 |
+--------------------------------+---------+---------+----------+----------+
|EBITDA, EUR million |2.0 |2.1 |0.8 |2.1 |
+--------------------------------+---------+---------+----------+----------+
|EBITDA without non-recurring |2.2 |0.7 |0.8 |0.7 |
|items, EUR million | | | | |
+--------------------------------+---------+---------+----------+----------+
|Operating profit (EBIT), EUR |0.5 |1.1 |0.5 |1.8 |
|million | | | | |
+--------------------------------+---------+---------+----------+----------+
|Operating profit (EBIT) without |1.5 |-0.3 |0.7 |0.5 |
|non-recurring items, EUR million| | | | |
+--------------------------------+---------+---------+----------+----------+
|Profit before taxes, EUR million|0.4 |0.5 |0.6 |1.5 |
+--------------------------------+---------+---------+----------+----------+
|Profit before taxes without non |1.4 |-0.9 |0.7 |0.2 |
|-recurring items, EUR million | | | | |
+--------------------------------+---------+---------+----------+----------+
|EPS, EUR |0,03 |0,11 |0,08 |0,22 |
+--------------------------------+---------+---------+----------+----------+
|EPS without non-recurring items,|0,16 |-0,10 |0,10 |0,01 |
|EUR | | | | |
+--------------------------------+---------+---------+----------+----------+
WULFF GROUP’S CEO TOPI RUUSKA
Wulff Group’s CEO Topi Ruuska:
We increased our profitability considerably in 2015. Group finances have
developed due to improved operating efficiency and cost saving measures. Our
most important goal is the continuous improvement of customer experiences and
the ease of our customers’ everyday purchases with a more comprehensive service
concept. The improvement of the service experience and customer profitability
produced has been possible by intensifying cooperation between our purchase and
sales operations.
Our strategy is to serve our customers using a multi-channel model. Our service
channels include the non-exclusive webstore Wulff.fi, the Contract Customer
model, a regional sales and service network and our stores. In an ever-changing
operating environment the channels must be constantly improved and renewed.
Digitalisation brings both possibilities and threats to the operating
environment: this change inevitably also affects the office supplies industry.
The office supplies market has declined in recent years due to the general
economic situation. Although a fast economical improvement is not to be
expected, I trust that Wulff will be among future success stories because we
strongly invest in development by also revising our own operations. The most
significant on-going internal development project is the reform of our financial
management services to make them more responsive and informative. This also
further improves our reporting to our customers. We are ready to grow fast when
the economy recovers: we have the industry’s best chance to do so thanks to our
personnel that are knowledgeable, adaptable and development oriented and also
due to our customers and partners that contribute to our development efforts.
KEY FIGURES
+-----------------------------------------+-----+---------+---------+---------+
| |IV |IV |I-IV |I-IV |
+-----------------------------------------+-----+---------+---------+---------+
|EUR 1000 |2015 |2014 |2015 |2014 |
+-----------------------------------------+-----+---------+---------+---------+
|Net sales |18 |20 471 |68 820 |74 262 |
| |585 | | | |
+-----------------------------------------+-----+---------+---------+---------+
|Change in net sales, % |-9,2 |-9,4 % |-7,3 % |-11,1 % |
| |% | | | |
+-----------------------------------------+-----+---------+---------+---------+
|EBITDA |807 |2 067 |2 019 |2 096 |
+-----------------------------------------+-----+---------+---------+---------+
|EBITDA margin, % |4,3 %|10,1 % |2,9 % |2,8 % |
+-----------------------------------------+-----+---------+---------+---------+
|Operating profit/loss |521 |1 831 |505 |1 109 |
+-----------------------------------------+-----+---------+---------+---------+
|Operating profit/loss margin, % |2,8 %|8,9 % |0,7 % |1,5 % |
+-----------------------------------------+-----+---------+---------+---------+
|Profit/Loss before taxes |558 |1 517 |354 |478 |
+-----------------------------------------+-----+---------+---------+---------+
|Profit/Loss before taxes margin, % |3,0 %|7,4 % |0,5 % |0,6 % |
+-----------------------------------------+-----+---------+---------+---------+
|Net profit/loss for the period |520 |1 420 |-195 |696 |
|attributable to equity holders of the | | | | |
|parent company | | | | |
+-----------------------------------------+-----+---------+---------+---------+
|Net profit/loss for the period, % |2,8 %|6,9 % |-0,3 % |0,9 % |
+-----------------------------------------+-----+---------+---------+---------+
|Earnings per share, EUR (diluted = non |0,08 |0,22 |-0,03 |0,11 |
|-diluted) | | | | |
+-----------------------------------------+-----+---------+---------+---------+
|Return on equity (ROE), % |4,3 %|12,5 % |-1,6 % |4,4 % |
+-----------------------------------------+-----+---------+---------+---------+
|Return on investment (ROI), % |3,4 %|7,5 % |2,7 % |3,5 % |
+-----------------------------------------+-----+---------+---------+---------+
|Equity-to-assets ratio at the end of |46,4 |39,5 % |46,4 % |39,5 % |
|period, % |% | | | |
+-----------------------------------------+-----+---------+---------+---------+
|Debt-to-equity ratio at the end of period|23,8 |36,9 % |23,8 % |36,9 % |
| |% | | | |
+-----------------------------------------+-----+---------+---------+---------+
|Equity per share at the end of period, |1,84 |1,95 |1,84 |1,95 |
|EUR * | | | | |
+-----------------------------------------+-----+---------+---------+---------+
|Net cash flow from operating activities |1 965|2 483 |1 693 |-205 |
+-----------------------------------------+-----+---------+---------+---------+
|Investments in non-current assets |3 |121 |161 |488 |
+-----------------------------------------+-----+---------+---------+---------+
|Investments in non-current assets, % of |0,0 %|0,6 % |0,2 % |0,7 % |
|net sales | | | | |
+-----------------------------------------+-----+---------+---------+---------+
|Treasury shares held by the Group at the |79 |79 000 |79 000 |79 000 |
|end of period |000 | | | |
+-----------------------------------------+-----+---------+---------+---------+
|Treasury shares, % of total share capital|1,2 %|1,2 % |1,2 % |1,2 % |
|and votes | | | | |
+-----------------------------------------+-----+---------+---------+---------+
|Number of total issued shares at the end |6 607|6 607 628|6 607 628|6 607 628|
|of period |628 | | | |
+-----------------------------------------+-----+---------+---------+---------+
|Personnel on average during the period |229 |262 |233 |268 |
+-----------------------------------------+-----+---------+---------+---------+
|Personnel at the end of period |226 |240 |226 |240 |
+-----------------------------------------+-----+---------+---------+---------+
* Equity attributable to the equity holders of the parent company / Number of
shares excluding the acquired own shares
RISKS AND UNCERTAINTIES IN THE NEAR FUTURE
The demand for office supplies is still affected by the organizations’ personnel
lay-offs and cost-saving initiatives made during the economic downturn. The
personnel lay-offs and cost-saving initiatives carried out in different
organizations during the economic downturn affect the purchasing behaviour of
our corporate customers. As economic uncertainty continues, the cost-saving
measures continue to affect the purchasing behaviour of our corporate customers.
The decreased amount of internationalization funding and the changes in the key
for granting it by the Ministry of Employment and The Economy affect the
companies’ chances to attend international fairs.
Half of the Group’s net sales come from other than euro-currency countries.
Fluctuation of the currencies affect the Group’s net result, however the effect
of the fluctuation is expected to be moderate.
EVENTS AFTER THE FINANCIAL YEAR
The Group sold a fleet of cars used by the personnel of Wulff Leasing Oy
Finland’s subsidiaries and rented a fleet of cars with a service leasing
agreement. The book value of the fleet of cars was EUR 0.3 million in December
31, 2015. The Group records a sales profit of EUR 0.1 million during the first
half year period. The Group records the cars sold at a book value of EUR 0.3
million in assets held for sale in the balance sheet.
The Group has not had such events after the financial year which would have a
material impact on 2015 financial statements.
BOARD OF DIRECTORS’ PROPOSAL FOR THE ANNUAL RESULT
The Group’s parent company Wulff Group Plc’s distributable funds totalled EUR
3.1 million. The Group’s net result attributable to the parent company
shareholders was EUR -0.2 million, i.e. EUR -0.03 per share (EUR 0.11 per
share). The Board of Directors proposes to the Annual General Meeting to be held
on April 7th, 2016 that a dividend of EUR 0.10 per share will be paid for the
financial year 2015 that is EUR 0.65 million and the remaining distributable
funds will be transferred in retained earnings in the shareholders’ equity.
MARKET SITUATION AND FUTURE OUTLOOK
Wulff is the most significant Nordic player in its field. Wulff’s mission is to
help its corporate customers to succeed in their own business by providing them
with leading-edge products and services in a way best suited to them. The
markets have been consolidating in the past few years and the Nordic markets are
expected to consolidate in the future as well. The Group is prepared to carry
out new strategic acquisitions and as a listed company Wulff has a great
opportunity to be a more active player than its competitors.
Wulff expects demand for office supplies not to increase rapidly in 2016. During
these uncertain times it is important to continue considering our cost structure
and improve operational efficiency. Wulff’s goal is to further improve the
profitability of its business activities. Wulff estimates the operating profit
(EBIT) for 2016 to be positive. It is typical of the business sector that the
annual profit and cash flow accumulate in the last quarter of the year.
WULFF GROUP PLC’S FINANCIAL REPORTING AND ANNUAL GENERAL MEETING 2016
Wulff Group Plc will release the following financial reports in 2016:
Statutory Financial Statements 2015 Week 11/2016
Interim Report, January-March 2016 Friday May 6, 2016
Interim Report, January-June 2016 Thursday August 4, 2016
Interim Report, January-September 2016 Thursday November 3, 2016
Wulff Group Plc’s Annual General Meeting will be held on Thursday April 7, 2016.
A separate notice to the Annual General Meeting will be published prior to the
meeting.
In Vantaa on February 18, 2016
WULFF GROUP PLC
BOARD OF DIRECTORS
Further information:
Chairman of the Board of Directors Heikki Vienola
tel. +358 9 5259 0050 or mobile: +358 50 65 110
e-mail: heikki.vienola@wulff.fi
DISTRIBUTION
NASDAQ OMX Helsinki Oy
Key media
www.wulff-group.com
