ROBIT PLC'S IFRS FINANCIAL STATEMENTS FOR THE YEAR 2016 PUBLISHED - CORRECTION

12.5.2017, 13:30 CET

ROBIT PLC COMPANY RELEASE 12 MAY 2017 AT 2.30 P.M.

ROBIT PLC'S IFRS FINANCIAL STATEMENTS FOR THE YEAR 2016 PUBLISHED - CORRECTION

Robit Plc's IFRS company release published today on 12 May 2017 at 12.20 p.m. has been corrected as follows:

Original release "Basic and diluted earnings per share" column 2016 IFRS (audited) -67, column 2015 IFRS (unaudited) 1,138, column 2015 FAS (audited) 1,103 and column 2015 FAS (unaudited) 2,468.

The corrected line is: column 2016 IFRS (audited) 0,26 and column 2015 IFRS (unaudited) 0,13.

Also unnecessary line stating the yearly Net sales figure has been removed.

Below is the corrected company release in its entirety.

Robit Plc has previously announced that it will start applying IFRS in its financial reporting as of financial year 2017. The company publishes the audited IFRS financial statements for the financial year 2016, which are available on the Robit website at http://www.robit.fi/investors/financial-information/.

Future Prospects and Profit Forecast

In connection with the approval of the IFRS financial statements, the company has confirmed the prospects and the profit forecast for the year 2017. The net sales of the company are expected to continue to grow. The company believes that the weak market environment is starting to pick up after a flat period of several years and the company aims to take advantage of that expected positive market change with the platform of the company's 21 sales and service points together with the six manufacturing plants. The company believes that the new supplemented offering gives good opportunities to increase the market share in the drilling consumables business segment.

Robit has started applying IFRS in its financial reporting in 2017. Calculated on a basis of the financial statements for the financial year ended on 31 December 2016 prepared in accordance with IFRS, the company's EBITA as percentage of net sales (without items affecting comparability) was 11.7 %. The management of the company estimates that the company's EBITA as percentage of net sales will be maintained at the same level, i.e. at the level of the year 2016, provided that the market demand stays at the current level and there are no other market disruptions.[1]

IFRS financial statements

The following tables present a summary of the company's income statement, balance sheet, and key figures for the financial years ended on 31 December 2016, 31 December 2015 and 31 December 2014. The information presented below is based on the company's audited consolidated financial statements for the financial years ended on 31 December 2016, 31 December 2015 and 31 December 2014. In addition, the summary of the company's income statement and balance sheet for the first and second half of the financial year 2016 are presented below.

In addition to the half-yearly reports and financial statements release, the company will continue reporting its net sales for the first and third quarter. The net sales for the three-month period ended on 31 March 2017 were EUR 20,049 thousand.

CONSOLIDATED INCOME STATEMENT 1.1.-31.12.
EUR 1,000 2016

(IFRS)

(tilintarkas-tettu)

 
2015

(IFRS)
2015

(FAS)
2014

(FAS)
  (audited) (unaudited) (audited) (unaudited)
         
Net sales 64,050 45,573 45,588 38,272
Changes in inventories of finished goods and work in progress -67 1,138 1,103 2,468
Work performed by the Group and capitalized 201 232 232 94
Other operating income 241 163 169 175
Materials and services -32,651 -27,789 -27,789 -24,746
Employee benefit expense -11,113 -7,643 -7,339 -5,753
Depreciation, amortization and impairment -3,233 -1,145 -1,676 -1,005
Other operating expenses -13,167 -7,770 -6,899 -5,745
Operating profit 4,262 2,758 3,389 3,761
         
Finance income 3,316 494 444 438
Finance cost -2,411 -853 -851 -522
Finance income and costs net 906 -359 -406 -84
         
Profit before income tax 5,168 2,399 2,983 3,677
         
Income taxes -1,128 -695 -7391 -7692
         
Profit for the year 4,040 1,704 2,244 2,925
         
         
Attributable to:        
Owners of the parent 4,040 1,704 - -
         
Other comprehensive income        
Items that may be reclassified to profit or loss in subsequent periods:        
Translation differences 43 101 - -
Other comprehensive income, net of tax 43 101    
Total comprehensive income 4,083 1,804 2,244 2,925
         
Attributable to:        
Owners of the parent 4,083 1,804 - -
Earnings per share attributable to the owners of the parent during the year:        
Basic and diluted earnings per share 0,26 0,13    

1) Unaudited. The figure includes changes in deferred income taxes (EUR 12 thousand).

2) Unaudited. The figure includes changes in deferred income taxes (EUR 9 thousand).

 

 

CONSOLIDATED BALANCE SHEET  31.12.
EUR 1,000 2016 2015 2015 2014
  (IFRS)

(audited)
(IFRS)

(unaudited)
(FAS)

(audited)
(FAS)

(audited)
ASSETS        
Non-current assets        
Goodwill 25,469 88 29 88
Other intangible assets 8,333 1,297 3,6911 6542
Property, plant and equipment 16,611 7,752 7,047 4,970
Loan receivables 720 744 7173 7434
Other receivables 157 150 2415 2456
Deferred tax assets 720 339 -7 -7
Total non-current assets 52,011 10,369 11,7258 6,7009
         
Current assets        
Inventories 30,176 11,873 11,679 11,838
Account and other receivables 21,248 10,431 10,55710 7,53011
Loan receivables 48 26 21 31
Income tax receivable - 10 15912 7812
Cash and cash equivalents 10,519 33,310 33,38413 1,58914
Total current asset 61,991 55,650 55,80015 21,06616,
Total assets 114,002 66,019 67,525 27,767
EQUITY AND LIABILITIES        
Equity attributable to owners of the parent        
Share capital 705 705 705 705
Share premium 202 202 202 202
Reserve for invested unrestricted equity 32,368 32,322 33,693 599
Cumulative translation difference 144 101 -267 15
Retained earnings 12,597 11,526 11,348 8,530
Profit for the year 4,040 1,704 2,244 2,925
Total equity 50,056 46,559 47,924 12,976
         
Liabilities        
Non-current liabilities        
Borrowings 36,601 5,262 7,058 5,207
Deferred tax liabilities 2,093 - -17 -17
Derivative financial instruments - 49 - -
Employee benefit obligations 947 430 43021 34922
Total non-current liabilities 39,641 5,741 7,48823 5,55624
         
Current liabilities        
Borrowings 10,828 6,224 4,257 3,248
Derivative financial instruments 38 - - -
Advances received 282 132 132 289
Income tax liabilities 736 103 22418 13118
Account payables and other liabilities 12,421 7,260 7,50019 5,56720
Total current liabilities 24,305 13,720 12,113 9,235
Total liabilities 63,946 19,460 19,601 14,791
Total equity and liabilities 114,002 66,019 67,525 27,767

1) The figure consists of the following items disclosed separately under FAS balance sheet: intangible rights (EUR 165 thousand) and other capitalised long-term expenses (EUR 3,527 thousand).

2) The figure consists of the following items disclosed separately under FAS balance sheet: intangible rights (EUR  69 thousand) and other capitalised long-term expenses (EUR 585 thousand).

3) Unaudited. The figure consists of long term receivables disclosed as current assets under FAS balance sheet and including accrued income (EUR 0 thousand) and loan receivables (EUR 717 thousand).

4) Unaudited. The figure consists of long term receivables disclosed as current assets under FAS balance sheet and including accrued income (EUR 5 thousand) and loan receivables (EUR 738 thousand).

5) The figure consists of the following items disclosed separately under FAS balance sheet: other receivables (EUR 238 thousand) and other shares and similar rights of ownership (EUR 3 thousand).

6) The figure consists of the following items disclosed separately under FAS balance sheet: other receivables (EUR 241 thousand) and other shares and similar rights of ownership (EUR 4 thousand).

7) Deferred tax assets is disclosed as short term assets under FAS balance sheet.

8) Unaudited. The figure consists of the following items disclosed separately under FAS balance sheet: Non-current assets total (EUR 11 008 thousand) and long-term receivables (EUR 717 thousand).

9) Unaudited. The figure consists of the following items disclosed separately under FAS balance sheet: Non-current assets total (EUR 5 957 thousand) and long-term receivables (EUR 743 thousand).

10) The figure consists of the following items disclosed separately under FAS balance sheet: trade receivables (EUR 9 219 thousand), receivables from group companies (EUR 0 thousand), other receivables (EUR 809 thousand) and accrued income (EUR 528 thousand).

11) The figure consists of the following items disclosed separately under FAS balance sheet: trade receivables (EUR 6 335 thousand), receivables from group companies (EUR 0 thousand), other receivables (EUR 598 thousand) and accrued income (EUR 597 thousand).

12) Income tax receivable is disclosed as calculated tax claim under FAS balance sheet.

13) The figure consists of the following items disclosed separately under FAS balance sheet: cash in hand and at banks (EUR 33 353 thousand) and funding papers (EUR 31 thousand).

14) The figure consists of the following items disclosed separately under FAS balance sheet: cash in hand and at banks (EUR 1 559 thousand) and funding papers (EUR 30 thousand).

15) Unaudited. The figure consists of the FAS balance sheet item current assets total (EUR 56 517 thousand) less long-term receivables (EUR 717 thousand).

16) Unaudited. The figure consists of the FAS balance sheet item current assets total (EUR 21 809 thousand) less long-term receivables (EUR 743 thousand).

17) Deferred tax liabilities are disclosed as short-term liabilities under FAS balance sheet.

18) Income tax liabilities are disclosed as item calculated tax debt.

19) The figure consists of the following items disclosed separately under FAS balance sheet: accounts payable (EUR 5 609 thousand), payables to group companies (EUR 0 thousand), other liabilities (EUR 574 thousand) and accrued liabilities (EUR 1 318 thousand).

20) The figure consists of the following items disclosed separately under FAS balance sheet: accounts payable (EUR 3 984 thousand), payables to group companies (EUR 22 thousand), other liabilities (EUR 346 thousand) and accrued liabilities (EUR 1 215 thousand).

21) Employee benefit obligations are disclosed as mandatory reserves under FAS balance sheet.

22) Employee benefit obligations are disclosed as mandatory reserves under FAS balance sheet.

23) Unaudited. The figure includes mandatory reserves (EUR 430 thousand) disclosed separately under FAS balance sheet.

24) Unaudited. The figure includes mandatory reserves (EUR 349 thousand) disclosed separately under FAS balance sheet.

Key Figures

The company tracks several indicators to measure the development of its business performance. The following table sets forth key figures of the company for the financial years ended on 31 December 2016, 31 December 2015 and 31 December 2014 as well as for the first and second half of the financial year 2016.

CONSOLIDATED KEY FIGURES 1.7.-31.12. 1.1.-30.6. 1.1.-31.12.  
  2016

(IFRS)
2016

(IFRS)
2016

(IFRS)
2015

(IFRS)
2015

(FAS)
2014

(FAS)
  (unaudited)
Net sales, EUR 1,000 42,974 21,076 64,050* 45,573 45,588* 38,272*  
Net sales growth, per cent - - 40.5 19.1 19.1 12.7  
Gross profit, EUR 1,000 17,405 7,747 25,152 14,683 14,683 11,337  
Gross profit, per cent of net sales 6.6 32.7 39.3 32.2 32.2 29.6  
EBITDA, EUR 1,000 5,308 2,187 7,495 3,903 5,066 4,765  
EBITDA, per cent of net sales 12.4 10.4 11.7 11.1 11.1 12.5  
Adjusted EBITDA, EUR 1,000 8,064 2,187 10,251 4,793 5,066 4,765  
Adjusted EBITDA, per cent of net sales 18.8 10.4 16.0 10.5 11.1 12.5  
EBITA, EUR 1,000 3,213 1,508 4,721 2,758 3,448 3,819  
EBITA, per cent of net sales 7.5 7.2 7.4 6.7 7.6 10.0  
Adjusted EBITA, EUR 1,000 5,960 1,508 7,468 3,648 3,448 3,819  
Adjusted EBITA, per cent of net sales 13.9 7.2 11.7 8.0 7.6 10.0  
Operating profit, EUR 1,000 2,754 1,508 4,262* 2,758 3,389* 3,761*  
Operating profit, per cent of net sales 6.4 7.2 6.7 6.1 7.4 9.8  
Net income of review period, EUR 1,000 2,581 1,502 4,083* 1,804 2,244* 2,925*  
Net income of review period, per cent of net sales 6.0 7.1 6.4 4.0 4.9 7.6  
Earnings per share (EPS), EUR - - 0.26* 0.13 0.17 0.29  
Return on equity, per cent - - 9.9 7.4 7.4 25.4  
Return on capital employed (ROCE), per cent - - 4.7 5.3 9.5 21.2  
Net interest-bearing debt, EUR 1,000 36,910 11,042 36,910 -21,824 -22,070 6,866  
Equity ratio, per cent 43.9 42.5 43.9 70.5 71.1 47.4  
Gearing, per cent 73.7 23.3 73.7 -46.9 -46.1 52.9  
Gross investments, EUR 1,000 24,755 33,272 58,027 3,926 7,732 1,731  
Gross investments, per cent of net sales - - 90.6 8.6 17.0 4.5  
Gross investments, excl. acquisition, EUR 1,000 - - 2,641 3,926 7,732 1,731  
Research and development costs, EUR 1,000 1,062 444 1,505 1,367 1,368 804  
Research and development costs, per cent of net sales 2.5 2.1 2.3 3.0 3.0 2.1  
Average number of employees 239 129 199 124 124 109  
Employees at end of period 263 134 263 134 134 109  
*Audited      
                             

Business Units

Currently, the company's business is divided into three strategic business units, which are Top Hammer (TH), Down the Hole (DTH) and Digital Services.

The table below indicates the allocation of the company's net sales across the strategic business units. The business units were established in early 2016. The allocation of net sales prior to this has been indicated in relation to the TH product category and the DTH product category.

 

  IFRS

(unaudited)
FAS

(unaudited)
Million euros 1.1. - 31.12.2016 1.1. - 31.12.2015 1.1. - 31.12.2015 1.1. - 31.12.2014
Top Hammer (TH) 33.7 29.9 29.9 21.9
Down the Hole (DTH) 30.4 15.7 15.7 16.3
Digital Services - - - -
Total 64.1* 45.6 45.6* 38.3*

*Audited

The TH and DTH business units were nearly of the same size in terms of net sales: Top Hammer at 33.7 million euros and Down the Hole at 30.4 million euros in 2016. The third business unit, Digital Services, did not yet generate any net sales in 2016, its year of establishment.

Geographic sales areas

In 2016, the percentage of Europe, Africa and the Middle East out of the company's overall net sales amounted to 45.5 per cent. As a result of a corporate acquisition carried out in Australia, the percentage of Asia and Oceania out of the aggregate group net sales amounted to 36.1 per cent. The percentage of Russia and the CIS countries out of the aggregate group net sales amounted to 5.1 per cent. The percentage of the area of North and South America amounted to 13.3 per cent out of the aggregate group net sales.

The table below illustrates the geographic allocation of the company's net sales. As a result of the corporate acquisitions that took place in 2016, the net sales have become more centralised in the area of Asia and Oceania, as well as Europe, Africa and Middle East. It should be noted that DTA's net sales has been recorded in the company's net sales as of 30 June 2016, and Bulroc's net sales as of 5 July 2016.

  IFRS FAS
Million euros  2016 2015* 2015* 2014*
North and South America 8,5 13 % 8,5 19 % 8,5 19 % 5,8 15 %
Europe, Africa and Middle East 29,1 45 % 25,0 55 % 25,0 55 % 22,0 57%
Russia and the CIS countries 3,3 5 % 3,1 7 % 3,1 7 % 3,2 8 %
Asia and Oceania 23,1 36 % 9,0 20 % 9,0 20 % 7,3 19 %
Total   64,1 45,6   45,6   38,3  

*The figures are unaudited, with the exception of the aggregate amount

ROBIT PLC

Board of Directors

Further information

Robit Plc

Harri Sjöholm, Chairman of the Board of Directors

+358 400 622 092

harri.sjöholm@robit.fi

Skandinaviska Enskilda Banken AB (publ) Helsinki Branch acts as the company's certified advisor

Tel. +358 9 616 28 101

Robit is a strongly internationalized growth company selling and servicing global customers in drilling consumables for applications in mining, construction and contracting, tunneling and well drilling. The company's offering is divided into three product and service range: Top Hammer and Down-the-Hole products as well as Digital Services. Robit has 21 own sales and service points as well as active sales networks in 115 countries. The manufacturing units are located in Finland, South Korea, Australia, UK and USA.

Distribution:

Nasdaq Helsinki Ltd

Key media

www.robitgroup.com

 


[1] The company calculates EBITA profitability key ratio as follows: Operating profit (EBIT) added with the depreciations of customer relationships and brand value recorded on the balance sheet in connection with the acquisitions. Items affecting comparability are defined as material items outside ordinary course of business, such as costs related to the reversion of the current assets during 2016 as well as direct transaction costs related to business acquisitions and the listing.