Vantaa, Finland, 2016-08-04 08:00 CEST (GLOBE NEWSWIRE) —
RAMIRENT PLC HALF YEAR FINANCIAL REPORT 4 AUGUST 2016 at 9:00
Note! Figures in brackets, unless otherwise indicated, refer to the corresponding period a year earlier.
Performance April-June 2016
- Net sales EUR 169.4 (159.4) million, up by 6.3% or 8.2% at comparable exchange rates
- EBITA EUR 16.6 (21.0) million or 9.8% (13.2%) of net sales
- Comparable EBITA EUR 17.5 (17.2) million or 10.3% (10.8%) of net sales
- Gross capital expenditure EUR 60.1 (46.8) million, an increase of 28.2%
- Cash flow after investments EUR -23.7 (-22.3) million
- Result for the period attributable to the owners of the parent company EUR 8.8 (13.2) million and EPS EUR 0.08 (0.12)
Performance January-June 2016
- Net sales EUR 315.4 (300.0) million, up by 5.1% or 7.0% at comparable exchange rates
- EBITA EUR 23.8 (25.2) million or 7.6% (8.4%) of net sales
- Comparable EBITA EUR 24.8 (21.3) million or 7.9% (7.1%) of net sales
- Return on equity (ROE)1) 12.6% (11.5%)
- Return on capital employed (ROCE)1) 9.0% (9.8%)
- Gross capital expenditure EUR 100.5 (65.0) million, an increase of 54.7%
- Cash flow after investments EUR -30.5 (-21.4) million
- Result for the period attributable to the owners of the parent company EUR 11.4 (13.1) million and EPS EUR 0.11 (0.12)
- Net debt EUR 354.4 (297.1) million and net debt to EBITDA 1) 2.1x (1.8x)
1) On a rolling 12 months basis
| KEY FIGURES | 4-6/16 | 4-6/15 | Change | 1-6/16 | 1-6/15 | Change | 1-12/15 |
| (MEUR) | |||||||
| Net sales | 169.4 | 159.4 | 6.3% | 315.4 | 300.0 | 5.1% | 635.6 |
| EBITDA | 42.2 | 46.0 | -8.3% | 74.1 | 74.6 | -0.7% | 168.1 |
| % of net sales | 24.9% | 28.9% | 23.5% | 24.9% | 26.4% | ||
| Comparable EBITA1) | 17.5 | 17.2 | 1.8% | 24.8 | 21.3 | 16.1% | 63.4 |
| % of net sales | 10.3% | 10.8% | 7.9% | 7.1% | 10.0% | ||
| EBITA | 16.62) | 21.03) | -21.1% | 23.82) | 25.23) | -5.3% | 66.8 |
| % of net sales | 9.8%2) | 13.2%3) | 7.6%2) | 8.4%3) | 10.5% | ||
| EBIT | 14.1 | 18.8 | -24.9% | 18.9 | 20.7 | -8.7% | 57.9 |
| % of net sales | 8.3% | 11.8% | 6.0% | 6.9% | 9.1% | ||
| EBT | 11.1 | 16.7 | -33.6% | 14.2 | 16.4 | -13.4% | 46.9 |
| % of net sales | 6.5% | 10.4% | 4.5% | 5.5% | 7.4% | ||
| Result for the period attributable to the owners of the parent company | 8.8 | 13.2 | -33.2% | 11.4 | 13.1 | -13.0% | 39.0 |
| Earnings per share (EPS), (basic and diluted), EUR | 0.08 | 0.12 | -33.2% | 0.11 | 0.12 | -13.0% | 0.36 |
| Gross capital expenditure on non- current assets | 60.1 | 46.8 | 28.2% | 100.5 | 65.0 | 54.7% | 139.2 |
| Gross capital expenditure, % of net sales | 35.5% | 29.4% | 31.9% | 21.7% | 21.9% | ||
| Cash flow after investments | -23.7 | -22.3 | -6.3% | -30.5 | -21.4 | -42.5% | -6.3 |
| Capital employed at the end of period | 641.5 | 602.4 | 6.5% | 600.5 | |||
| Return on capital employed (ROCE),%4) | 9.0% | 9.8% | 10.0% | ||||
| Return on equity (ROE),%4) | 12.6% | 11.5% | 12.1% | ||||
| Net debt | 354.4 | 297.1 | 19.3% | 280.9 | |||
| Net debt to EBITDA ratio4) | 2.1x | 1.8x | 20.0% | 1.7x | |||
| Gearing,% | 123.7% | 97.9% | 88.0% | ||||
| Equity ratio,% | 34.7% | 39.0% | 41.4% | ||||
| Personnel at end of period (FTE) | 2,757 | 2,682 | 2.8% | 2,654 |
1) Ramirent’s performance measure “EBITA excluding non-recurring items” was replaced with “comparable EBITA” as of first quarter of 2016. Comparable EBITA is disclosed to improve comparability between reporting periods.
2) In the second quarter 2016, items affecting comparability in EBITA included derecognition of a contingent consideration liability, EUR 0.3 million, and costs of EUR 1.2 million relating to the change of President and CEO.
3) The comparison period included derecognition of a contingent consideration liability, EUR 3.8 million, connected to the acquisition of weather shelter and scaffolding company DCC in 2014.
4) Rolling 12 months
Impacts of new ESMA guidelines
European Securities and Markets Authority (ESMA) has issued new guidelines regarding alternative performance measures to be implemented at the latest in the second quarter of 2016. Due to the new guidelines, Ramirent’s performance measure “EBITA excluding non-recurring items” was replaced with “comparable EBITA” as of first quarter of 2016. The content of adjustments equals items previously disclosed as non-recurring items including incomes and expenses arising activities that amend Ramirent’s business operations or are incurred outside its normal course of business such as restructuring costs, impairments, significant write-downs of assets and significant gains or losses on sale of assets and businesses. Comparable EBITA is disclosed to improve comparability between reporting periods.
Comments from CEO Magnus Rosén:
“Ramirent’s second-quarter net sales grew by 8.2% at comparable exchange rates based on growth in all segments, except for Europe East. Second-quarter comparable EBITA increased slightly to EUR 17.5 (17.2) million or 10.3% (10.8%) of net sales. On a rolling 12 months basis return on equity improved to 12.6% (11.5%), which was above our long-term financial target of 12% per fiscal year. We maintain high focus on improving cost efficiency and developing our operating models to enhance profitability. Especially in Sweden, where comparable EBITA is unsatisfactory, many of these developments are taking place and EBITA started to improve towards the end of the quarter.
During the past months, we have signed important rental agreements with large Nordic construction companies. In Finland, we signed a multi-year partnership agreement for YIT’s Tripla construction site, which is currently one of the largest sites in the country. In Sweden, Ramirent expanded its cooperation agreement with Skanska Maskin AB and signed its first frame agreement ever with JM AB.
In General Rental, growth in net sales was driven by improved demand especially in the Nordic construction sector. In Solutions, large construction and industrial projects continued to support sales growth especially in Sweden, Finland and Poland.
Since this is the last quarterly report that I publish as the President & CEO of Ramirent Plc, I would like to take this opportunity to thank all our customers, employees, shareholders, and other parties with whom I have had the pleasure to share this exciting journey. The equipment rental market provides interesting growth opportunities and possibilities for differentiation. Ramirent is well-positioned to take advantage of this development.”
Ramirent outlook for full year 2016 unchanged
In 2016, Ramirent’s net sales in local currencies and EBITA margin are expected to increase from the level in 2015.
Market outlook for 2016
Ramirent’s market outlook is based on the available forecasts disclosed by local construction and industry associations in its operating countries. Ramirent expects demand for equipment rental to grow in most of its markets in the second half of 2016. Overall increasing construction activity is driving demand especially in Sweden. In Finland, demand for equipment rental is supported by large projects in the building construction and in the industry sectors. The Norwegian equipment rental market remains challenging due to weak business climate in the oil & gas industry. In the Baltics, activity in the equipment rental market is estimated to remain stable supported by building and infrastructure construction. In Fortrent’s markets, Russia and Ukraine, the weakened situation in the construction market is expected to dampen demand for equipment rental. In Europe Central, the market demand is expected to improve in the second half of the year supported by EU funded infrastructure projects and favourable demand in the industrial sector.
Analyst and press briefing
A briefing for investment analysts and the press will be arranged 4 August, 2016 at 11:00 a.m. the Event Arena Bank, Unioninkatu 22, Helsinki, (Wall Street Cabinet 24-25).
Webcast and conference call
You can participate in the analyst briefing on Thursday 4 August 2016 at 11:00 a.m. Finnish time (EET) through a live webcast at and conference call. Dial-in number for conference call:+358 9 8171 0495 (FI), +46 8 5664 2702 (SE), +44 2031940552 (UK) and +1 8557161597(US). A recording of the webcast will be available at later the same day.
Financial calendar 2016
Ramirent observes a silent period during 30 days prior to the publication of annual and interim financial results.
Interim report January-September 2016
4 November 2016 at EET 9:00 a.m
For further information
CEO Magnus Rosén
tel. +358 20750 2845,
CFO Pierre Brorsson
tel. +46 8 624 9541,
SVP, Marketing, Communications and IR Franciska Janzon
tel. +358 20 750 2859,
Distribution
NASDAQ OMX Helsinki
Main news media
Ramirent is a leading equipment rental group combining the best equipment, services and know-how into rental solutions that simplify customer’s business. Ramirent serves a broad range of customer sectors including construction, industry, services, the public sector and households. Ramirent has operations in the Nordic countries and in Central and Eastern Europe. In 2015, Ramirent Group sales totalled EUR 636 million. The Group has 2,757 employees in 287 customer centres in 10 countries. Ramirent is listed on the NASDAQ Helsinki (RMR1V). Ramirent – More than machines®.
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