Enedo Plc’s Financial Statements Release 1 January – 31 December
2021
ENEDO PLC Financial Statements Release February
18th, 2022 at 9.45 a.m.
This release is a summary of Enedo’s financial statements report
January -December 2021. The full report is a pdf attachment to this
stock exchange release and is available at company website at
www.enedopower.comENEDO PLC’S FINANCIAL
STATEMENTS RELEASE 1 JANUARY – 31 DECEMBER
2021 July – December
2021 in brief,
Continuing operations - Net sales EUR 18,3 million (EUR
18,8 million)- Operating
result EUR -3,7
million (EUR -2,4 million)- Adjusted operating result EUR -1,9
million (EUR -2,2 million)- EBITDA EUR -2,0 million (EUR –0,7
million)- Adjusted EBITDA EUR -0,2 million (EUR -0,5 million)-
Earnings per share EUR -0,06 (EUR -0,19)
Financial year 2021 in
brief, Continuing operations:- Net sales EUR 36,4 million
(EUR 38,5 million)- Operating
profit EUR -6,6
million (EUR -4,3 million)- Adjusted operating profit EUR -4,2
million (EUR -3,9 million)- EBITDA EUR -3,2 million (EUR -0,8
million)- Adjusted EBITDA EUR -0,8 million (EUR -0,4 million)-
Earnings per share EUR -0,08 (EUR -0,31)
The figures in the release are presented from continuing
operations unless otherwise noted.
|
7-12/21 |
7-12/20 |
1-12/21 |
1-12/20 |
Key indicators, EUR million |
6 mo |
6mo |
12 mo |
12 mo |
Continuing operations: |
|
|
|
|
Net Sales |
18,3 |
18,8 |
36,4 |
38,5 |
Led Drivers |
4,7 |
4,4 |
9,2 |
8,7 |
Power Supplies |
11,6 |
11,4 |
22,2 |
24,1 |
Systems |
2,1 |
3,0 |
5,1 |
5,7 |
Adjusted
EBITDA |
-0,2 |
-0,5 |
-0,8 |
-0,4 |
EBITDA |
-2,0 |
-0,7 |
-3,2 |
-0,8 |
Adjusted
operating profit/loss |
-1,9 |
-2,2 |
-4,2 |
-3,9 |
Operating
profit/loss |
-3,7 |
-2,4 |
-6,6 |
-4,3 |
Profit/loss
before taxes |
-4,2 |
-2,9 |
-4,6 |
-5,4 |
Profit/loss
for the period, continuing operations |
-4,1 |
-3,8 |
-4,5 |
-6,2 |
Earnings per
share, continuing operations, EUR* |
-0,06 |
-0,19 |
-0,08 |
-0,31 |
|
|
|
|
|
Continuing and discontinued operations |
|
|
|
|
Earnings per
share EUR* |
-0,06 |
-0,18 |
-0,08 |
-0,30 |
Net Gearing,
%** |
173 |
|
173 |
|
Solvency
ratio, % |
14,9 |
-7,4 |
14,9 |
-7,4 |
Cash flow from
operating activities |
-1,5 |
-0,4 |
-3,3 |
-2,3 |
|
|
|
|
|
|
|
|
|
|
Key indicators Half year, EUR million |
H2/2021 |
H1/2021 |
H2/2020 |
H1/2020 |
Continuing
operations: |
|
|
|
|
Net Sales |
18,3 |
18,1 |
18,8 |
19,7 |
Adjusted
EBITDA |
-0,2 |
-0,6 |
-0,5 |
0,1 |
EBITDA |
-2,0 |
-1,2 |
-0,7 |
-0,1 |
Adjusted
operating profit/loss |
-1,9 |
-2,3 |
-2,2 |
-1,7 |
Operating
profit/loss |
-3,7 |
-2,9 |
-2,4 |
-1,9 |
|
|
|
|
|
*
The number of outstanding shares of comparison periods have been
revised with the effect of the 2021 share issue |
**
The company will not present net gearing for 2020 due to negative
equity. |
|
|
|
|
|
|
|
|
7-12/21 |
7-12/20 |
1-12/21 |
1-12/20 |
ADJUSTED OPERATING PROFIT/LOSS, EUR million |
6 mo |
6mo |
12 mo |
12 mo |
Operating
profit/loss |
-3,7 |
-2,4 |
-6,6 |
-4,3 |
Adjustments in operating profit/loss |
|
|
|
|
Resctructuring
costs related to personnel |
1,3 |
|
1,6 |
|
Production
re-organisation |
|
0,1 |
|
0,2 |
Enedo planning
related expenses |
|
0,1 |
|
0,2 |
Cloud based
ERP implementation expenses |
0,3 |
|
0,3 |
|
Provision
release relating to a claim |
|
|
0,2 |
|
Sale of a
subsidiary |
0,3 |
|
0,3 |
|
Adjustments in operating profit/loss Total |
1,8 |
0,2 |
2,4 |
0,4 |
Adjusted operating profit/loss Total |
-1,9 |
-2,2 |
-4,2 |
-3,9 |
|
|
ok |
|
|
|
|
|
|
|
|
7-12/21 |
7-12/20 |
1-12/21 |
1-12/20 |
ADJUSTED EBITDA, EUR million |
6 mo |
6mo |
12 mo |
12 mo |
EBITDA |
-2,0 |
-0,7 |
-3,2 |
-0,8 |
Adjustments in EBITDA |
|
|
|
|
Resctructuring
costs related to personnel |
1,3 |
|
1,6 |
|
Production
re-organisation |
|
0,1 |
|
0,2 |
Enedo planning
related expenses |
|
0,1 |
|
0,2 |
Cloud based
ERP implementation expenses |
0,3 |
|
0,3 |
|
Provision
release relating to a claim |
|
|
0,2 |
|
Sale of a
subsidiary |
0,3 |
|
0,3 |
|
Adjustments in EBITDA Total |
1,8 |
0,2 |
2,4 |
0,4 |
Adjusted EBITDA Total |
-0,2 |
-0,5 |
-0,8 |
-0,4 |
Estimate of financial development in
2022
The company has decided not to give an estimate for 2022
financial development, due to the uncertainties linked to the
anticipated turnaround activities and the evolution of the Covid-19
situation.
Mikael Fryklund, Enedo President and
CEO
Enedo’s net sales of Eur 18,3 million for the second half of the
year was slightly better than the net sales of Eur 18,1 million
during the first half. The adjusted operating result of Eur -1,9
million was also slighty less negative than the adjusted operating
profit of Eur -2,3 million for the first half. The order intake
increased significantly during the second half of 2021, and was EUR
30.9 million, which is 74% higher than the order intake in the
second half last year. Accordingly, the order book at the end of
the year was Eur 28,7 million which is 184% higher than the order
book at the end of last year. The growth of the order book was
driven mostly by the strong demand of Enedo’s products. However the
component shortages on the market and earlier communicated cash
constraints before the Eur 5,0 million loan arrangement slowed the
deliveries and thus the growth of the net sales and EBIT.
The turnaround program is progressing but has shown more
challenging than anticipated, both in time and financially. During
the last quarter of the year 2021 signifigant restructuring
activities have been executed and the company expects the
opertating expenses to decrease year on year with around Eur 3,0
million.
Net sales in both Power Supply products and LED drivers
increased from the first half of the year whereas the net sales of
the Power Systems products decreased. Power Supplies growth was
mainly driven by the lighting and digital displays market, and the
test and measurement market. The growth of the LED drivers was
mostly driven by the improved demand for public areas lighting
which had decreased during last year and early 2021 due to the
effects of the Covid-19 pandemia.
Geographically the net sales from the American and Asian market
developed well but the sales for EMEA market declined both year on
year and compared to first half of the year 2021.
The growth of the American market year on year was 6% and for
the second half 26%. The Asian market showed a similar growth
pattern, and the growth year on year was 3% and for the second half
24%. The net sales for EMEA declined 10% both year on year and
compared to first half of 2021.
The Group's new and unified ERP system went live in finance
function beginning of May. Work on the implementation of the other
areas of the new ERP system continued and starting 1st January the
new ERP is fully implemented in Finland. Full implementation work
continues during 2022.
Late in December 2021 Enedo signed a new Eur 5,0 million loan
arrangement to enable and secure the execution of the Turnaround
program, and pay overdues on accounts payables. The loan
arrangement has a maturity date of 30th September 2022. Based on
the current strong order intake and reduced future cost levels due
to the turnaround program the company aims to either agree with the
loan provider to prolong the maturity date, negotiate a new loan
with some other financing institution or to raise sufficient equity
financing to repay the loan. The final solution may also be a
combination of the above mentioned options.
July-December net sales, operating profit and adjusted
operating profit
Net sales were EUR 18,3 million (EUR 18,8 million).
Operating profit decreased from the comparison period to EUR
-3,7 million (EUR -2,4 million). The decline in operating profit
was mainly due to provision recorded for the personnel dismissal
process according to the turnaround plan, and due to component
shortages and severe cash constraints resulting in decrease of the
net sales. Adjusted operating profit was EUR -1,9 million (EUR -2,2
million).
The adjustments affecting the adjusted operating profit consist
mainly of the dismissal process expenses and expenses related to a
sale of non operating subsidiary.
Business development
Enedo's products are divided into three product categories which
are Power Supplies, Led Drivers and Systems. The Power Supplies
product category consists of industrial power supplies, the Led
Drivers category of lighting solutions, and the Systems category
includes DC system products and rail power supply solutions.
The net sales of the Power Supplies product category in the
second half of the year were EUR 11,6 million, EUR 0,2 million
better than same period of last year. The net sales of the Led
Drivers product category were EUR 4,7 million, an increase of EUR
0,3 million compared to the same period of last year. The Systems
product category, on the other hand, saw decline of Eur 0,9 million
compared with the same period last year. The net sales of Systems
products in the second half of the year was Eur 2,1 million
compared with the sales of Eur 3,0 million same period last
year.
Net sales of the Power Supplies product category during the
financial year were EUR 22,2 million, EUR 1,9 million weaker than
at the same time last year. The net sales of the Led Drivers
product category were EUR 9,2 million, EUR 0,5 million stronger
than in 2020. The net sales for Systems product category declined
with Eur 0,6 million compared to last year.
Short-term risks and uncertainties
General economic developments may affect the company's business
environment. Due to the nature of the business, Enedo is subject to
risks related to component shortages which are expected to continue
at least during the H1 2022. Covid-19 is still creating lock downs
of certain suppliers and the increased the level of uncertainty due
to Covid-19 is still in place and the pandemic may also have
potential effects on our customers' ability to operate, the demand
for their end products and the general industrial operating
environment.
Certain business risk are related to the success of key
customers' products in the market. The progress of Enedo's product
development projects depends in part on the schedules of customers'
own projects. In addition, the fluctuations in demand typical of
the market cause rapid changes in Enedo's business.
A substantial risk is the required improvements of production
planning and procurement procedures in Tunis and capacity
constraints in respect of machine capacity, which in a growing
market with shortage of components makes the situation even more
challenging. Improvement actions are taking place in this
respect.
Due to the nature of the business, Enedo is subject to claims,
of which the final solution cannot be predicted. Based on current
information, there are no claims that are expected to have a
material impact on the Group's financial position.
The delivery times of the components required by the company are
partly long and there may be difficulties in obtaining certain
components from time to time, which may affect the delivery
capacity. Covid-19 has also increased the level of uncertainty in
each country, which may affect our delivery capacity.
There are risks relating to the adequacy of funding, that the
company seeks to manage through active planning and implementation
of various alternatives. The company signed an Eur 5,0 million loan
arrangement in December 2021 which has a maturity period of 9
months. The company does not expect to be able to repay the loan on
such maturity date from its operating cash-flow. However, based on
the current strong order intake and reduced future cost levels due
to the turnaround program the company aims to either (i) agree with
the loan provider to prolong the maturity date or (ii) negotiate a
new loan with some other financing institution and / or (iii) to
raise sufficient equity financing to repay the loan. According to
the terms of the loan arrangement Inission AB has guaranteed the
payback of the loan in case none of the above mentioned three
alternatives is executed by 30 September 2022.
Board of Directors’ proposal for the distribution of
dividend
The Board of Directors will propose to the Annual General
Meeting on April 27th, 2022 that no dividend will be
distributed.
Events after the end of the financial
year
There has been no material events after the end of the financial
year.
ENEDO PLC Board of Directors
For further information please contact Mr. Hannu
Hiillos, CFO, tel. +358 40 523 5383, on 18th February at
12:00-13:00 or Mr. Mikael Fryklund, CEO, tel. +358 40 500
6864,on 21st of February at 12:00–13:00.
DISTRIBUTION Nasdaq Helsinki
OyPrincipal mediaEnedo Enedo is a European designer and producer of
high-quality electronic power supplies and systems for critical
equipment even in the most demanding environments. Enedo´s mission
is to make electricity better – more reliable, more secure, more
energy efficient – and just right to fit its purpose. Enedo´s three
main product categories are Led Drivers, Power supplies and Power
Systems. In 2021 the group´s revenue was EUR 36,4 million. Enedo
has 330 employees and its main functions are located in Finland,
Italy, Tunisia and USA. The group´s head office is in Finland and
parent company Enedo Oyj is listed on Nasdaq Helsinki Oy.
www.enedopower.com
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