Vantaa, Finland, 2016-02-11 08:00 CET (GLOBE NEWSWIRE) —
Note! Figures in brackets, unless otherwise indicated, refer to the corresponding period a year earlier.
PERFORMANCE OCTOBER-DECEMBER 2015
- Net sales EUR 170.5 (160.7) million, up by 6.1% or 7.9% at comparable exchange rates
- EBITDA EUR 43.7 (40.0) million or 25.7% (24.9%) of net sales
- EBITA EUR 16.8 (14.5) million or 9.9% (9.0%) of net sales
- Gross capital expenditure EUR 42.0 (19.0) million or 24.6% (11.8%) of net sales
- Cash flow after investments EUR 5.3 (32.6) million
- Result for the period EUR 11.5 (4.5) million and EPS EUR 0.11 (0.04)
PERFORMANCE JANUARY-DECEMBER 2015
- Net sales EUR 635.6 (613.5) million, up by 3.6% or 6.0% at comparable exchange rates
- EBITDA EUR 168.1 (167.9) million or 26.4% (27.4%) of net sales
- EBITA EUR 66.8 (65.8) million or 10.5% (10.7%) of net sales
- EBITA excl. non-recurring items EUR 63.4 (71.5) million or 10.0% (11.7%) of net sales
- Result for the period EUR 39.0 (32.6) million and EPS EUR 0.36 (0.30)
- Return on invested capital (ROI) 12.3% (12.2%)
- Return on equity (ROE) 12.1% (9.4%)
- Gross capital expenditure EUR 139.2 (144.6) million or 21.9% (23.6%) of net sales
- Cash flow after investments EUR -6.3 (21.8) million
- Net debt EUR 280.9 (227.1) million and net debt to EBITDA 1.7x (1.4x)
DIVIDEND PROPOSAL
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.40 (0.40) per share be paid for the financial year 2015. The proposed dividend represents a 111% (132%) payout ratio for 2015 which is above Ramirent’s long-term financial target to payout at least 40% of net profit in dividend. The Board of Directors has decided not to utilise the authorisation received from the Annual General Meeting 2015 to pay an additional dividend based on the adopted financial statements for 2014.
RAMIRENT OUTLOOK FOR FULL YEAR 2016
In 2016, Ramirent’s net sales in local currencies and EBITA margin are expected to increase from the level in 2015.
| KEY FIGURES | 10-12/15 | 10-12/14 | Change | 1-12/15 | 1-12/14 | Change |
| (MEUR) | ||||||
| Net sales | 170.5 | 160.7 | 6.10% | 635.6 | 613.5 | 3.60% |
| EBITDA | 43.7 | 40 | 9.20% | 168.1 | 167.9 | 0.10% |
| % of net sales | 25.70% | 24.90% | 26.40% | 27.40% | ||
| EBITA excluding non-recurring items | 16.8 | 18.2 | -7.7% | 63.4 | 71.5 | -11.3% |
| % of net sales | 9.90% | 11.40% | 10.00% | 11.70% | ||
| EBITA | 16.8 | 14.5 | 15.70% | 66.8 | 65.8 | 1.40% |
| % of net sales | 9.90% | 9.00% | 10.50% | 10.70% | ||
| EBIT | 14.6 | 12.5 | 16.40% | 57.9 | 58.1 | -0.3% |
| % of net sales | 8.50% | 7.80% | 9.10% | 9.50% | ||
| EBT | 12.7 | 6.4 | 98.00% | 46.9 | 42.5 | 10.40% |
| % of net sales | 7.50% | 4.00% | 7.40% | 6.90% | ||
| Result for the period attributable to the owners of the parent company | 11.5 | 4.5 | 155.40% | 39 | 32.6 | 19.40% |
| Earnings per share (EPS), (basic and diluted), EUR | 0.11 | 0.04 | 155.30% | 0.36 | 0.3 | 19.40% |
| Gross capital expenditure on non-current assets | 42 | 19 | 121.40% | 139.2 | 144.6 | -3.7% |
| Gross capital expenditure, % of net sales | 24.60% | 11.80% | 21.90% | 23.60% | ||
| Cash flow after investments | 5.3 | 32.6 | -83.6% | -6.3 | 21.8 | n/a |
| Invested capital at the end of period | 600.5 | 555.2 | 8.20% | |||
| Return on invested capital (ROI),% | 12.30% | 12.20% | ||||
| Return on equity (ROE),% | 12.10% | 9.40% | ||||
| Net debt | 280.9 | 227.1 | 23.70% | |||
| Net debt to EBITDA ratio | 1.7x | 1.4x | 23.60% | |||
| Gearing,% | 88.00% | 69.90% | ||||
| Equity ratio,% | 41.40% | 43.70% | ||||
| Personnel at end of period (FTE) | 2,654 | 2,576 | 3.00% |
COMMENTS FROM CEO MAGNUS ROSÉN:
“Ramirent Group’s fourth-quarter sales increased by 6.1% or 7.9% at comparable exchange rates driven by strong service sales and good demand in General Rental in most of our markets. Group’s fourth-quarter EBITA increased by 15.7% to EUR 16.8 (14.5) million, representing an EBITA margin of 9.9% (9.0%).
Full-year 2015 net sales grew by 3.6%, or 6.0% at comparable exchange rates, to EUR 635.6 (613.5) million. Full-year 2015 EBITA amounted to EUR 66.8 (65.8) million, representing an EBITA margin of 10.5% (10.7%). A higher relative share of sales of services in the business mix, price pressure in Finland and Norway, as well as internal reorganisations hampered our profitability in 2015. Return on equity (ROE) improved to 12.1% (9.4%) in 2015. We have harmonised our operational model “One Ramirent” to be more efficient and flexible, and we will continue to focus on controlling costs and improving profitability.
In the fourth quarter, we saw in Finland both good growth and profitability despite a challenging market. In Sweden growth continued fuelled by excellent market conditions, however profitability was still burdened by organisational development costs. In Denmark, sales grew and profitability continued to improve based on successful turn-around of our operations and an improved underlying market. In Norway, our performance weakened further and the new management is executing a turnaround plan to adapt to the market which has weakened by the slowdown in the oil industry. In Europe Central, all markets improved both in terms of good sales growth and improved profitability. Also our performance in Baltics was solid, with a small growth and a good profitability level maintained.
In the fourth-quarter, we increased capital expenditure to EUR 42.0 (19.0) million to capture growth opportunities. To drive growth and profitability, we updated our long-term financial targets and strategic focus themes at the Capital Markets Day in December. We are targeting further growth by developing our group business mix through three distinct business areas: General Rental, Solutions and Temporary Space. Ramirent sees further opportunities to support profitable growth by realising the synergies of the “One Ramirent” platform as well as by optimising the flow, efficiency and service level in its fleet management and supply chain. Based on our solid financial position, Ramirent can also accelerate growth with selected outsourcing transactions and acquisitions.
Our new financial targets were adjusted to be in line with the industry level and ensure our competitiveness to pursue profitable growth in all business areas, whilst keeping a balanced risk-level.
In 2016, we expect to see stable and fair overall market conditions yet varying between the different geographical markets. I am therefore cautiously optimistic as we set out to pursue profitable growth in 2016 backed by accelerated capital expenditure, more common processes in Ramirent, a strong financial position, strong positions in our markets, and a highly capable and committed team.”
MARKET OUTLOOK 2016
Ramirent expects market conditions in the Finnish equipment rental market to be balanced in 2016. According to a forecast published in December 2015, Forecon expects the Finnish equipment rentalmarket to grow by 3.0% in 2016. Increasing residential construction and renovation are expected to support demand in General Rental while activity within infrastructure construction will remain sluggish. Ongoing large commercial building and hospital projects are expected to support demand in Solutions. Renovation is estimated to exceed the value of new construction also in 2016. According to a forecast published by Euroconstruct in December 2015, the Finnish construction output is expected to increase by 3.2% in 2016. In the industrial sector, demand for General Rental and Solutions is estimated to recover driven by projects in the energy, shipyard and pulp and paper sectors. The Confederation of Finnish Industries (EK) expects full-year industrial investments to grow by 12.9% in 2016, mainly due to projects in general manufacturing and in the energy sector.
Ramirent expects conditions in the Swedish equipment rental market to be favourable in 2016. According to a forecast published by Euroconstruct in December 2015, the Swedish construction market is expected to increase by 2.8% in 2016. High activity in residential construction and large ongoing infrastructure projects in Stockholm and Gothenburg are expected to support demand both in General Rental and in Solutions in 2016. Renovation construction is also expected to continue to increase driven by ageing building stock, energy efficiency requirements and government grants. Commercial and industrial construction projects are expected to support demand in Solutions. Market conditions for the Temporary Space business are expected to be favourable based on high demand from the public sector.
Ramirent expects market conditions for equipment rental to remain challenging in Norway in 2016. Modest economic growth, low oil prices and soft building construction activity continue to impact negatively on demand in General Rental as well as in Solutions. According to a forecast published by Euroconstruct in December 2015, the Norwegian construction market is expected to grow by 3.9% in 2016. However, the primary growth driver is infrastructure construction, while residential and non-residential construction, which are the main drivers for equipment rental, are estimated to remain close to the previous year’s level. According to an estimate by Norwegian Petroleum Directorate, investments in the oil and gas sector are estimated to decline by 10.0% in 2016. Ramirent expects demand in Temporary Space to be modest in the oil and gas sector but to improve in the public sector.
Ramirent expects the equipment rental market in Denmark to grow in 2016 supported by favourable activity in the construction sector. According to a forecast published by Euroconstruct, the Danish construction market is estimated to increase by 2.3% in 2016. In General Rental, demand is driven by urbanisation and strong underlying demand from residential and infrastructure construction. Market outlook in the industry sector remains positive as a result of healthy economic growth and improved industrial confidence. Ramirent expects demand in General Rental and Solutions to be supported by a large programme to build new hospitals in Denmark. In Temporary Space, the need for renovation of preschools, schools and healthcare centres supports demand in 2016.
Ramirent expects the overall demand in the Baltic equipment rental market to be balanced in 2016. According to a forecast published by Euroconstruct in December 2015, the total construction output in the Baltics is expected to increase by 1.5% in 2016. Infrastructure construction is estimated to grow in all Baltic countries supported by EU and public funding which will benefit General Rental and Temporary Space business areas. Increasing non-residential construction activity is expected to support demand in General Rental and in Solutions. Residential construction is expected to remain close to the previous year’s level in 2016.
The decline in the oil price has a negative impact on the economy and construction activity in Russia. The volatility of the rouble and the Russian financial market hinder economic growth in Russia. EU and US economic sanctions against Russia due to the Ukrainian crisis remain in place, creating further uncertainty over the development of the Russian economy. The weakened situation in the construction market, in turn, affects the demand for equipment rental and related services in Russia in 2016. According to the forecast published by Euroconstruct in December 2015, the Russian construction market is expected to decline by 2.6% in 2016. All construction sub-sectors, except infrastructure construction, are forecast to decline in 2016. In Ukraine, the outlook remains challenging.
Ramirent expects overall demand in Europe Central equipment rental markets to be favourable in 2016. According to a forecast published by Euroconstruct in December 2015, construction output in Europe Central is expected to grow by 5.8% in 2016. Demand in General Rental is expected to be fuelled by construction and renovation of power plants, wind power projects as well as EU funded infrastructure projects. Increasing activity especially in the non-residential construction sector is expect to support demand in Solutions.
CORPORATE GOVERNANCE STATEMENT
Ramirent has issued a Corporate Governance Statement for financial year 2015. The CorporateGovernance Statement has been composed in accordance with recommendation 51 of the newCorporate Governance Code. The Corporate Governance Statement is issued as a separate report which is available in Ramirent’s Financial Statements 2015 and on Ramirent’s web pages.
ANNUAL GENERAL MEETING 2016
Ramirent Plc’s Annual General Meeting will be held in Scandic Marina Congress Center, Fennia I, at the address of Katajanokanlaituri 6, 00160 Helsinki, Finland on Thursday 17 March 2014 at 10.00 a.m. The stock exchange release to convene the AGM 2016 will be published on the Company’s website 11 February 2016. Ramirent Plc’s Financial Statements will be published on the Company’s website on 11 February 2016.
DISCLOSURE PROCEDURE
Ramirent follows the disclosure procedure enabled by Disclosure obligation of the issuer (7/2013) published by the Finnish Financial Supervision Authority. This stock exchange release is a summary of Ramirent Plc’s financial statements bulletin 2015. The complete report is attached to this release in pdf format and is also available on Ramirent’s website at .
ANALYST AND PRESS BRIEFING
A briefing for investment analysts and the press will be arranged 11 February, 2016 at 11:00 a.m. Finnish time at Ramirent Group headquarters, (visiting address: Äyritie 16, 01510 Vantaa).
WEBCAST AND CONFERENCE CALL
You can participate in the analyst briefing on Thursday 11 February 2016 at 11:00 a.m. Finnish time (EET) through a live webcast at and conference call. Dial-in numbers are: +358 981 710 495 (FI), +46 8 566 42 702 (SE) +44 203 194 0552 (UK) and +1 855 716 1597 (US).
FINANCIAL CALENDAR UNTIL END OF 2016
Ramirent observes a silent period during 21 days prior to the publication of annual and interim financial results.
Financial Statements
11 February 2016
Annual General Meeting
17 March 2016
Interim report January-March 2016
4 May 2016
Interim report January-June 2016
4 August 2016
Interim report January-September 2016
4 November 2016
The financial information in this stock exchange release has not been audited.
Vantaa, 11 February 2016
RAMIRENT PLC
Board of Directors
FURTHER INFORMATION
Group President and CEO Magnus Rosén
tel.+358 20 750 2845,
CFO Pierre Brorsson
tel.+46 8 624 9541,
SVP, Marketing, Communications and IR Franciska Janzon
tel.+358 20 750 2859,
DISTRIBUTION
NASDAQ 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 2,654 employees in 288 customer centres in 10 countries. Ramirent is listed on the NASDAQ Helsinki (RMR1V). Ramirent – More than machines®.
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