17 March 2008
POWERFLUTE OYJ
FINAL RESULTS FOR YEAR ENDED 31 DECEMBER 2007
(INCORPORATING UNAUDITED INTERIM RESULTS FOR THE PERIOD 30 JUNE TO 31 DECEMBER
2007)
London & Helsinki, 17 March, 2008 | Powerflute Oyj (the "Group" or
“Powerflute”), a manufacturer of premium quality Nordic semi-chem fluting, is
pleased to announce its first full year results as a public company. Powerflute
is listed on the AIM market of the London Stock Exchange (Ticker: POWR.L) and on
the First North list, the alternative market of the OMX Nordic Exchange
Stockholm AB (Ticker POW1V).
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| €m | FY 2007 | FY 2006 | Change |
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| Sales | 115,737 | 98,302 | +18% |
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| EBITDA1 | 20,418 | 12,817 | +59% |
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| EBITDA Margin | 18 % | 13% | +5% |
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| Operating profit | 15,156 | 8,012 | +89% |
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| Profit before tax | 12,520 | 5,775 | +117% |
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| Basic EPS | 10.3 cents | 4.9 cents | +110% |
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| Dividend per share | 3.366 cents (2.566p) | - | - |
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| Net debt | 25.6 | 33.4 | -23% |
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| Net debt to EBITDA | 1.25x | 2.61x | |
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1. EBITDA refers to operating profit on ordinary activities before depreciation,
amortisation and impairment of property, plant and equipment and intangible
assets and the release of negative goodwill. Although EBITDA is not a measure of
operating profit, operating performance or liquidity under IFRS, the Company has
presented this financial measure because it understands that EBITDA is used by
some investors to determine a Company's ability to service indebtedness and fund
ongoing capital expenditures. EBITDA should not, however, be considered in
isolation or as a substitute for operating profit as determined by IFRS, or as
an indicator of the Company's operating performance or of its cash flows from
operating activities as determined in accordance with IFRS.
Financial Highlights
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| | Net sales increased by 18 per cent. to €115.7 million (2006: €98.3 |
| | million, 2005: €85.4million) |
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| | EBITDA on ordinary activities increased by 59 per cent. to €20.4 |
| | million (2006: €12.8 million) |
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| | EBITDA margin 18 per cent. (2006: 13 per cent.) |
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| | Operating profit on ordinary activities before tax increased by of 89 |
| | per cent. to €15.2 million (2006: €8.0 million) |
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| | Basic EPS from ordinary activities increased by 110 per cent. to 10.3 |
| | cents per share (2006: 4.9) Reported basic EPS were 8.0 cents per |
| | share (2006: 4.3) |
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| | Net debt reduced by €7.8 million to €25.6 million |
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| | Final dividend of 3.366 cents (2.566p) per share proposed to be paid |
| | in May 2008. It is proposed that the Board be authorised to resolve |
| | and pay an additional dividend of 1.681 cents (at current €:GBP |
| | levels 1.28p) per share in October/ November 2008. Expected future |
| | dividend payment ratio, two thirds final, one third interim. |
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Strategic & Operating Highlights
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| | AIM IPO successfully completed in May 2007 |
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| | First North listing February 2008 - alternative market of the OMX |
| | Nordic Exchange Stockholm AB |
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| | Total sales volume increased by 5 per cent. to 262,792 tonnes, an |
| | (2006: 251,375 tonnes) |
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| | Agreement on new headbox and stock approach system to further improve |
| | operational efficiency was signed in August. |
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| | Wood supply joint venture agreed in February 2008 to deliver security |
| | of supply and improved efficiencies |
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Performance Review & Outlook
Powerflute Chairman, Dermot Smurfit commented:
“The Group reports a strong financial performance for the 2007 full year and
significant progress against every financial measure.
Overall, the outlook for 2008 is positive as we continue to improve the
efficiency and output capacity of the Mill. Demand for Nordic semi-chem fluting
remains strong. The Board views 2008 with confidence.”
Powerflute CEO, Don Coates commented:
“We are pleased with the advances that your Group has made during 2007. The
Group has delivered an improved operating profit, increased EBITDA margins and
strong cash flow during the period. Indeed the Savon Sellu mill had a record
year operationally, despite a number of challenges faced during the period in
review.
About Powerflute
Powerflute operates a currently 300,000 tonne per annum rated capacity paper
mill (the “Mill”) located near Kuopio, Finland on the shores of Lake Kallavesi,
manufacturing specialised high quality nordic semi-chem fluting.
Powerflute was established to make further acquisitions in the paper and paper
conversions market, typically of assets which are no longer regarded by their
parent groups as core businesses and where the Board believes that it can
further develop such assets or companies.
Powerflute‘s Chairman is Dermot Smurfit, (retired Chairman of Smurfit Europe and
joint Deputy Chairman of Jefferson Smurfit Group PLC), Don Coates is the CEO,
(previously the CEO of the St Regis Paper Company Limited owned by DS Smith plc)
and Ian Halliday is an Executive Director, (former senior manager at Mondi Paper
Group and Jefferson Smurfit Group). Non-executive directors include Juha
Niemelä, (previously the CEO of UPM-Kymmene Corporation, one of the largest pulp
and paper groups in the world), Tony Smith (former CEO of Smurfit UK operations)
and Christopher Knight. Together, the management team have over 150 years of
experience in the paper industry.
Powerflute's nominated adviser on AIM is Collins Stewart (Europe) Limited.
Powerflute's Certified Advisor on First North is E. Öhman J:or Fondkommission
AB. The Swedish Company Registration Number: 409596-1
Review of Financials and Performance
The following pages contain the information required to be included by the
applicable regulations in the form of Chairman's Statement, Annual Accounts for
the full year 2007 and the interim results for the six months ended 31 December
2007 all as approved by the Board of Directors of Powerflute, as well as the
Auditor's Report.
Forward Looking Statements
Some statements in this announcement are forward-looking. They represent
expectations for Powerflute's business, and involve risks and uncertainties.
These forward-looking statements are based on current expectations and
projections about future events. The Group believes that current expectations
and assumptions with respect to these forward-looking statements are reasonable.
However, because they involve known and unknown risks, uncertainties and other
factors, which are in some cases beyond the Group's control, actual results or
performance may differ materially from those expressed or implied by such
forward-looking statements.
Contacts
For additional information please contact:
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| Powerflute OYJ | | C/O Billy Clegg |
| Dermot Smurfit (Chairman) | | +44 (0)20 7269 7157 |
| Don Coates (Chief Executive | | |
| Officer) | | |
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| Collins Stewart Europe Ltd: | | +44 (0)20 7523 8319 |
| Nick Ellis | | |
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| E.Öhman J:or Fondkommission AB: | | +358 (9) 8866 6021 |
| Vesa Heikkilä | | |
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| Financial Dynamics: | | +44 (0)20 7831 3113 |
| Billy Clegg | | |
| Georgina Bonham | | |
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| K Capital Source | | +353 (1) 631 5500 |
| Mark Kenny | | |
| Jonathan Neilan | | |
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Final Results
| Source: Powerflute Oyj
Attachments
