Ramirent Plc Interim Report April 30, 2019 at 9:00 EET
January-March 2019 in brief
– Net sales EUR 163.0 (167.5) million, down by -2.7% or -0.7% at comparable exchange rates
– Comparable EBIT EUR 17.3 (21.2) million or 10.6% (12.7%) of net sales
– EBIT EUR 17.1 (21.2) million or 10.5% (12.7%) of net sales
– Comparable EPS EUR 0.11 (0.14)
– EPS EUR 0.12 (0.14)
– Comparable ROCE 15.9% (15.7%)
– ROCE 9.4% (15.1%)
– Gross capital expenditure EUR 43.3 (53.3) million
– Cash flow after investments EUR 32.0 (-13.7) million
– After the review period, Ramirent announced it had signed an agreement to acquire Stavdal AB and become the leading company in Swedish equipment rental market. The enterprise value of the transaction is approximately EUR 158 million. The closing of the transaction is expected by the end of Q3 2019.
Ramirent’s guidance for 2019 unchanged
In 2019, Ramirent’s comparable EBIT is expected to be at approximately the same level as in 2018.
| Key figures (MEUR) | 1-3/19 | 1-3/18 | Change | 1-12/18 |
| Continuing operations | ||||
| Net sales | 163.0 | 167.5 | -2.7% | 711.7 |
| EBITDA | 49.1 | 46.8 | 4.9% | 202.9 |
| % of net sales | 30.1% | 28.0% | 28.5% | |
| Comparable EBIT | 17.3 | 21.2 | -18.4% | 106.8 |
| % of net sales | 10.6% | 12.7% | 15.0% | |
| EBIT | 17.1 | 21.2 | -19.4% | 66.9 |
| % of net sales | 10.5% | 12.7% | 9.4% | |
| Comparable EPS, EUR | 0.11 | 0.14 | -19.0% | 0.74 |
| Comparable ROCE, % | 15.9% | 15.7% | 16.8% | |
| Comparable ROE, % | 26.7% | 24.6% | 26.7% | |
| Group including discontinued operations | ||||
| EPS, EUR | 0.12 | 0.14 | -11.1% | 0.44 |
| ROCE, % | 9.4% | 15.1% | 10.2% | |
| ROE, % | 16.6% | 24.7% | 16.6% | |
| Gross capital expenditure | 43.3 | 53.3 | -18.7% | 199.5 |
| Cash flow after investments | 32.0 | -13.7 | n/a | 40.7 |
| Capital employed | 689.8 | 629.8 | 9.5% | 653.7 |
| Net debt | 423.6 | 351.7 | 20.5% | 350.6 |
| Net debt to EBITDA ratio | 2.1x | 1.7x | 21.3% | 1.7x |
| Net debt excluding lease liabilities | 328.9 | 351.7 | -6.5% | 350.6 |
Ramirent’s President and CEO Tapio Kolunsarka:
“Ramirent’s performance continued to be solid in the first quarter of 2019, despite the strong comparable figures of the previous year. Performance in Norway, Eastern Europe and Finland remained good. However, that was not enough to fully compensate for the weakness in Sweden. Our comparable EBIT decreased to EUR 17.3 (21.2) million, or 10.6% (12.7%) of net sales. Cash flow after investments improved to EUR 32.0 (-13.7) million, driven by the completed divestment of our Danish rental operations as well as lower investments. Our comparable ROCE improved to 15.9% (15.7%).
Net sales decreased in Sweden mainly due to the divestment of the Temporary Space business. Also strong activity in large projects in the first quarter of 2018 negatively impacted the change in net sales. Our underlying equipment rental sales decreased by low single-digit percentages in the quarter, mainly in Stockholm. We continue to have a solid pipeline of large projects in Sweden and remain optimistic about the medium to long-term growth prospects of the Swedish equipment rental market.
Net sales increased strongly in Finland, partly due to the acquisition of SRV Kalusto. Performance was good in our rental operations, but profitability was negatively affected by the scaffolding business. In Norway, both sales and profit growth were solid and the previously announced restructuring has progressed as planned. Eastern European performance was stable, despite a slow January.
In March, we completed the divestment of our Danish equipment rental business. After this divestment, Ramirent has four operating segments and it operates in nine countries. We also operate in Russia and Ukraine through a 50% owned joint venture, Fortrent.
After the review period, we announced the acquisition of Stavdal AB, a general equipment rental company operating in Sweden and in the Oslo area in Norway with an enterprise value of approximately EUR 158 million. The acquisition is expected to be strongly synergistic and cash-generative. We will now redeploy funds from earlier completed divestments and strengthen our position in the Swedish equipment rental market, particularly in the growing metropolitan areas of Gothenburg and Stockholm.
Our business is in solid shape, and we continue to have opportunities for performance improvement in 2019. With our strong balance sheet and strengthening cash flow we are ready to accelerate our growth through synergistic acquisitions.”
Market outlook for 2019
Ramirent’s market outlook is based on the available forecasts disclosed by local construction and industry associations in its operating countries. The demand outlook for equipment rental in 2019 varies somewhat across Ramirent’s geographies. In Sweden, the market demand is expected to slow down in 2019, even though there are expected to be differences between regions. In Finland, market conditions are expected to be stable. In Norway, the Baltic countries, Poland, Czech Republic and Slovakia, market conditions are expected to remain favorable.
Webcast and conference call for investment analysts and press
A briefing for investment analysts and the press will be arranged on Tuesday, April 30, 2019 at 10:30 a.m. Finnish time (EET) through a live webcast viewable at www.ramirent.com combined with a conference call. The briefing will be hosted by CEO Tapio Kolunsarka and CFO Jukka Havia. The dial-in numbers are FI: +358 981 710 310, UK: +44 333 300 0804, SE: +46 856 642 651, US: + 1 631 913 1422. Numbers for other countries can be found . Participant code for conference call is 29367100#. A recording of the webcast and teleconference will be available at www.ramirent.com later the same day.
Financial calendar 2019
Ramirent observes a silent period during 30 days prior to the publication of annual, half year and interim financial results.
Half Year Financial Report 2019 July 31, 2019 at 9:00 a.m. EET
Interim report January-September 2019 October 30, 2019 at 9:00 a.m. EET
The financial information in this stock exchange release has not been audited.
For further information
Jukka Havia, EVP and CFO, Ramirent Plc, tel: +358 50 355 3757, jukka.havia@ramirent.com
Ramirent is a leading service company offering equipment rental for construction and other industries. Our mission is to help our customers gear up on safety and efficiency by delivering great equipment and smooth service with a smile. We have 2,800 co-workers at 292 customer centers across nine countries in northern and eastern Europe. In 2018, Ramirent Group net sales reached a total of EUR 712 million. Ramirent is listed on the Nasdaq Helsinki (RAMI). Ramirent – Gear Up. Equipment rental at your service
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