Quarterly Report • Aug 18, 2015
Quarterly Report
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| 4–6/2015 | 4–6/2014 | change % | 1–6/2015 | 1–6/2014 | change % | 2014 | |
|---|---|---|---|---|---|---|---|
| Key figures and ratios | 3 mths | 3 mths | 6 mths | 6 mths | 12 mths | ||
| INCOME STATEMENT | |||||||
| Revenue, EUR million | 51.9 | 32.8 | 58 | 99.8 | 64.3 | 55 | 148.9 |
| EBITDA excluding non-recurring items, EUR million |
3.0 | 3.5 | –13 | 6.1 | 6.7 | –9 | 14.0 |
| EBITDA % excluding non-recurring items | 5.8% | 10.5% | –45 | 6.1% | 10.4% | –41 | 9.4% |
| EBITDA, EUR million | 2.1 | 3.0 | –31 | 5.1 | 6.2 | –18 | 11.8 |
| EBITDA % | 4.0% | 9.1% | –56 | 5.1% | 9.7% | –47 | 7.9% |
| Operating profit excluding non | |||||||
| recurring items (EBIT), EUR million | 1.0 | 2.0 | –50 | 2.3 | 3.9 | –41 | 8.2 |
| Operating profit % excluding non-recurring items |
1.9% | 6.1% | –68 | 2.3% | 6.1% | –62 | 5.5% |
| Operating profit (EBIT), EUR million | 0.1 | 1.6 | –96 | 1.3 | 3.5 | –62 | 6.0 |
| Operating profit % | 0.1% | 4.7% | –97 | 1.3% | 5.4% | –76 | 4.0% |
| Profit before tax, EUR million | –0.7 | 0.4 | –253 | –0.1 | 1.9 | –106 | 2.9 |
| SHARE RELATED INFORMATION | |||||||
| Earnings per share, EUR | –0.05 | 0.00 | –2056 | –0.02 | 0.08 | –129 | 0.11 |
| Equity per share, EUR | 3.46 | 0.67 | 419 | 0.70 | |||
| OTHER INFORMATION | |||||||
| Return on capital employed, % (ROCE) | 2.6 | 8.6 | 7.1 | ||||
| Return on equity, % (ROE) | 0.1 | 11.9 | 7.7 | ||||
| Equity ratio, % | 39.8 | 8.8 | 8.0 | ||||
| Gearing, % | 36.6 | 655.1 | 691.1 | ||||
| Net debt / adjusted EBITDA, 12 mths | 1.8 | 5.1 | 5.1 | ||||
| Interest bearing net debt, EUR million | 24.5 | 65.0 | –62 | 71.6 | |||
| Gross investments, EUR million | 15.9 | 13.0 | 22 | 28.3 | |||
| Cash flow from operating activities | 2.6 | 2.5 | 9.5 | 4.3 | 123 | 9.4 | |
| Cash flow after investments | –1.8 | –2.6 | 1.0 | –3.9 | –8.1 | ||
| Average number of personnel | 2,247 | 1,524 | 47 | 1,619 | |||
| Personnel at the end of the period | 2,525 | 1,649 | 53 | 1,714 |
Pihlajalinna Group is at the strongest growth stage in its operational history. During the first six months of 2015 revenue grew by 55 per cent reaching EUR 99.8 million. Majority of this came through organic growth, such as the start of service provision under the Parkano healthcare and social care outsourcing contract (since 1 January 2015).
All business areas of the Group are growing, but most of the short-term increase in revenue is due to complete outsourcings of healthcare and social care in municipalities and in federations of municipalities. During 1 January 2015 – 1 January 2016 there has begun and will begin new contracts, which will generate an aggregate revenue exceeding the whole Group's revenue in 2014. Nearly 80 per cent of the revenue from the new contracts will be generated after 1 September 2015.
The profitability during the period was significantly influenced by reinforcement of the administration and other supporting functions, opening of the new private clinics, which at launching still had lower capacity utilisation rates, and costs from taking over the above-mentioned forthcoming large outsourcings. Since the spring in 2015 Pihlajalinna has been preparing future healthcare and social care outsourcings in Jämsä, Kuusiokunnat and Soini. Revenue and profit from these contracts will, however, be generated only after taking over. Healthcare and social care outsourcings in Parkano (since 1 January 2015) and in Kihniö (since 1 May 2015) have started according to the contracts.
Increases in resources and significant development projects are crucial for strengthening the Group for strong future growth in accordance with the strategy. Listing of the company on OMX Helsinki caused considerable non-recurring costs in the reporting period. I am especially pleased by the improvement in cash flow from operating activities and by the notable decrease in financial costs since the listing in June.
Our Initial Public Offering was in all successful and the shares were oversubscribed multifold. As a result of the Initial Public Offering we strengthened our balance sheet, raised equity for future growth investments and increased our awareness in all interest groups. The number of our shareholders at the end of the reporting period was 2,869 (174).
In 2015 Pihlajalinna will focus in taking over large complete healthcare and social care outsourcings and developing our operations widely. During the present financial year we have further developed many processes in seamless care chain and outlines in different fields of healthcare. By putting these in operation, our clients can both increase the performance in their operation and improve the quality of their services.
During the past ten years, Pihlajalinna has executed dozens of acquisitions. Since 1 January 2014 the activity in acquisitions has been especially high (21 acquisitions). Regardless of the strong and on-going growth, overlapping functions have developed due to numerous acquisitions and taking over outsourcing contracts. Restructuring of the Group will be carried out during the autumn in 2015. The objective of the restructuring is to simplify the corporate structure and to reduce the amount of the overlapping functions.
Restructuring of the Group will be carried out during the autumn in 2015. Its objective is to simplify the company structure and to reduce the amount of overlapping functions. In connection of the restructuring the management and administration structure as well as a correct level of personnel resources of the various branches, that best serves business operations and segment division will be implemented. Possible administrative and operational overlaps will be discussed in cooperation with the personnel. We will proceed already in August 2015 in Dental Care and Care -services units and concentrate the private and public operations under the same management.
The outlook in the market for Pihlajalinna maintain positive, and the company's market position is strong. In the complete healthcare and social care outsourcings the company is the market leader, and it is delightful to see, that the positive results in the outsourcings that have already taken place, have also stimulated interest in complete outsourcings in medium-sized municipalities. Numerous smaller municipalities have already become active in decision making.
The Company continues strong growth also in occupational healthcare and proceeds according to the strategy in expanding Dextra units to largest cities and towns nationwide.
Cutting of the national health insurance reimbursement levels are estimated to influence the C&S segment somewhat however the impact is estimated to be significantly lower that the short term customer flow of the segment. On the other hand as the customer flow may partly move to the public healthcare it is estimated to increase P&S segment's customer flow.
Pihlajalinna's consolidated revenue is expected to exceed EUR 200 million in 2015.
Pihlajalinna's revenue during the reporting period ended 30 June 2015 amounted to EUR 99.8 million, an increase of EUR 35.5 million or 55 per cent, over the revenue of EUR 64.3 million during the corresponding period ended 30 June 2014. Organic growth amounted to about EUR 22.6 million, including the new healthcare and social care services outsourcings.
M&A transactions accounted for about 36 per cent or EUR 12.8 million of the growth in revenue.
The group's materials and services represented 38.6 per cent (33.2%) of consolidated revenue or EUR 38.5 million (EUR 21.3 million). The Group's employee benefit expenses represented 45.0 per cent (46.5%) of consolidated revenue or EUR 44.9 million (EUR 29.9 million). Other operating expenses totalled 11.7 per cent (11.4%) of revenue or EUR 11.7 million (7.3 million).
Depreciation and amortisation for the reporting period totalled EUR 3.8 million (EUR 2.7 million). Amortisation of intangible assets during the reporting period was EUR 1.4 million (EUR 1.0 million), of which the amortisation of the intangible assets separate from goodwill, allocated from the costs of business combinations at the date of
acquisition, totalled EUR 1.1 million (EUR 0.9 million). Depreciation of property, plant and equipment totalled EUR 2.4 million (EUR 1.7 million).
Pihlajalinna's operating profit amounted to EUR 1.3 million, a decrease of EUR 2.2 million, or 62 per cent, over the operating profit of EUR 3.5 million during the corresponding period ended 30 June 2014. Operating profit represented 1.3 per cent of revenue in the reporting period (5.4%).
Operating profit includes EUR 0.9 million non-recurring costs relating to the Initial Public Offering of the Company.
Operating profit excluding non-recurring items was EUR 2.3 million (EUR 3.9 million).
The decline in operating profit was due to increased depreciation and amortisation related to the Group's investments for growth (in total EUR 1.0 million) and weaker than expected results of the new private clinic openings during the reporting period, the reinforcement of the Group's administration, the introduction of new ICT infrastructure and Parempaa huomista! marketing campaign (in total EUR 1.0 million). Increasing resources and carrying out significant development projects are crucial for strengthening the Group for future growth.
Private Clinics and Specialised Care (C & S)
The Private Clinics and Specialised Care segment (C & S) provides general practitioner and medical specialist consultation services, surgical services and occupational healthcare services and dental care services. The segment's customers comprise private persons in all age groups, companies, entrepreneurs, public enterprises, cities, municipalities, other public entities, and associations and foundations. The units of Pihlajalinna Group's Private Clinics and Specialised Care segment are operated under the Dextra brand and the specialised care services are provided to private and public sector customers under
Dextra and Pihlajalinna brands. The Private Clinics and Specialised Care segment is divided into four service areas: Private Clinics, Surgical Operations and Public Specialised Care, Dental Care and Occupational Healthcare.
C & S segment's revenues during the reporting period amounted to EUR 60.7 million, an increase of EUR 24.8 million, or 69 per cent, over the revenue of EUR 35.9 million during the corresponding period ended 30 June 2014.
The increase of the segment's revenue was mainly due to the growth in the Surgical Operations and Public Specialised Care service area's revenue (an increase EUR 17.3 million over to the corresponding period). The growth was due to, among other factors, the extension of
Mänttä-Vilppula's contract in December 2014, the start of the outsourcing contract of Parkano and the acquisition of Laser Tilkka Oy's shares in July 2014. The increase of the revenue in Dental Care service area amounted to EUR 3.8 million, the increase of the revenue in Occupational Health Care service area EUR 2.5 million and the increase in Private Clinics service area EUR 2.5 million.
C & S segment's operating profit during the reporting period amounted to EUR 1.9 million, a decrease of EUR 1.1 million, or 36 per cent, over the operating profit of EUR 3.0 million during the corresponding period ended 30 June 2014.
The Private Clinics and Specialised Care segment's operating profit was burdened especially by the increased depreciation and amortisation (EUR 0.9 million) related to the Group's investments for growth, but in addition the reinforcement of the Group's operative management and administration and the introduction of scalable IT infrastructure.
The relative weakening of the profitability was due to lower than anticipated capacity utilisation rates in the Occupational Healthcare service area and the lower than expected profitability of the new units in the Dental Care service area. In addition, the relative profitability of the segment is decreased by public specialised care that has remarkably grown along with healthcare and social care services outsourcing compared to the previous year's corresponding period.
Operating profit for the reporting period was positively affected by volume growth in Surgical Operations and Public Specialised Care service area and Private Clinics service area and by the acquisition of Keinojuuriklinikka.
In April-May a national Dextra – Parempaa huomista! advertising campaign was carried out. In addition Dextra opened a new full service Private Clinic in Jyväskylä in May.
The Primary and Social Care segment (P & S) provides services under the Pihlajalinna brand to public entities. The supply of services include primary healthcare and
social care services that are provided through complete outsourcings, staffing services or in separate care service units. Services for municipalities are mainly provided in the premises determined by them. The Primary and Social Care segment is divided into four service areas: Complete Social and Healthcare Outsourcings, Health Centre Outsourcings, Staffing and Care Services.
P & S segment's revenues during the reporting period amounted to EUR 40.6 million, an increase of EUR 11.4 million, or 39 per cent, over the revenue of EUR 29.1 million during the corresponding period ended 30 June 2014. The growth was mainly due to the start of the Parkano and Kihniö healthcare and social care services outsourcing contracts during the reporting period.
P & S segment's operating profit during the reporting period amounted to EUR 0.8 million, a decrease of EUR 0.2 million, or 19 per cent, over the revenue of EUR 1.0 million during the corresponding period ended 30 June 2014.
The decrease in operating profit was due to the lower relative profitability in Complete Social and Healthcare Outsourcings service area during the first half of the year and a partial decline in the Care Services service area's capacity utilisation rates. The reinforcement of the Group's operative management and administration and the introduction of scalable IT infrastructure also burden the profitability of the Primary and Social Care segment. The acquisition of care homes in Southwest Finland affected, as anticipated, positively to the profitability of Primary and Social Care segment.
Mänttä-Vilppula is planning to invite to tender for healthcare and social care services. Pihlajalinna is a service provider for healthcare and social care services for Mänttä-Vilppula through a temporary contract.
Pihlajalinna has set the following long-term financial targets for its operations
| Performance of the segments | C & S | P & S | ||||
|---|---|---|---|---|---|---|
| 4–6/2015 | 4–6/2014 | change % | 4–6/2015 | 4–6/2014 | change % | |
| Revenue, EUR million | 30.8 | 18.5 | 67 | 22.0 | 14.7 | 50 |
| Operating profit, EUR million | 0.4 | 1.3 | –73 | 0.9 | 0.6 | 37 |
| Operating profit, % | 1.2% | 7.2% | 4.0% | 4.4% | ||
| 1–6/2015 | 1–6/2014 | change % | 1–6/2015 | 1–6/2014 | change % | |
| Revenue, EUR million | 60.7 | 35.9 | 69 | 40.6 | 29.1 | 39 |
| Operating profit, EUR million | 1.9 | 3.0 | –36 | 0.8 | 1.0 | –19 |
| Operating profit, % | 3.1% | 8.4% | 2.1% | 3.6% |
Along with the successful Initial Public Offering Pihlajalinna has reached the level of net debt to EBITDA being below three times EBITDA.
The Group's net financial expenses totalled EUR –1.4 million (EUR –1.6 million). The increase in the net financial expenses in the corresponding period January – June 2014 was due to non-recurring financial expenses EUR 0.7 million relating mainly to the extensive restructuring and refinancing arrangement in summer 2014.The Group repaid prematurely its interest bearing liabilities by EUR 30.0 million right after the Initial Public Offering.
Pihlajalinna's profit before tax for the reporting period amounted to EUR –0.1 million, a decrease of EUR 2.0 million, or 106 per cent, over the profit of EUR 1.9 million in the comparative period ended 30 June 2014.
The Group's taxes in the reporting period totalled EUR 0.1 million (EUR –0.5 million). Profit for the reporting period totalled EUR 0.0 million (EUR 1.4 million). Earnings per share was EUR –0.02 (EUR 0.08). The presented comparative figure is the earnings per share of Pihlajalinna Terveys Oy in January – June 2014, which is an adjusted like-for-like figure that reflects the terms and conditions of the directed share issue carried out in July 2014.
At the end of the reporting period the Pihlajalinna Group's total statement of financial position was EUR 172.9 million (EUR 116.3 million). Consolidated cash and cash equivalents stood at EUR 32.6 million (EUR 9.8 million).
The Group's net cash flow from operating activities during the reporting period amounted to EUR 9.5 million (EUR 4.3 million). A total of EUR 5.8 million in working capital was released (EUR 0.5 million tied up).
Net cash flow from investing activities totalled EUR –8.5 million (EUR –8.2 million). The impact of the acquisitions of subsidiaries on net cash flow in the reporting period was EUR –13.0 million (EUR –1.2 million). Disposals of subsidiaries during the period amounted to EUR 1.3 million (EUR –0.6 million). Investments in property, plant and equipment and intangible assets during the reporting period totalled EUR –4.9 million (EUR –5.2 million), and proceeds from the disposals of property, plant and equipment totalled EUR 7.8 million (EUR 0.0 million). Pihlajalinna financed the share acquisitions of the care homes in Southwest Finland carried out on 31 March 2015 by selling the Group's care home properties (proceeds from the property, plant and equipment) and the property companies (disposal of subsidiaries).
Net cash flow from financing activities totalled EUR 20.7 million (EUR 2.5 million). In the reporting period net cash flow from financing activities includes EUR 58.2 million
net assets received in the Initial Public Offering. During the reporting period the Group withdrew new loans within its credit limit EUR 4.4 million and repaid financial liabilities EUR 39.3 million in total.
Pihlajalinna leased the care home properties sold on 1 April 2015 immediately back to its own use through lease agreements classified as finance leases. The lease term is fifteen (15) years.
The Group's solvency improved remarkably in the reporting period. The Group's equity ratio in the end of the reporting period was 39.8 per cent (8.8%). The increase in the equity ratio was due to net assets received in the Initial Public Offering. The low equity ratio in the corresponding period was due to the extensive restructuring arrangement and refinancing arrangement carried out during the summer of 2014. Gearing of the Group was 36.6 per cent (655.1%) in the end of the reporting period.
Interest-bearing liabilities amounted to EUR 57.2 million (EUR 74.9 million). Return on capital employed was 2.6 per cent (8.6%), and return on equity was 0.1 per cent (11.9%).
The Group's key loan covenants are reported to the financiers on a quarterly basis. The Group fulfilled the loan covenant terms at 30 June 2015. The loan margins were temporarily raised by 0.5 percentage points due to the acquisition of the care homes in Southwest Finland. This increase in the loan margins were valid from 1 April 2015 until the Company's stock exchange listing.
The Group's financial agreement was amended so that after the stock exchange listing the Group was released from Cashflow Cover and Capital Expenditure covenants. In connection to the listing the Group was also released from the restrictions on its dividend payout, certain premature loan repayments required under the loan agreement and certain disclosure obligations.
Capital Expenditure in the reporting period totalled EUR 15.9 million (EUR 13.0 million). The Company's gross investments in property, plant and equipment and intangible assets, which consisted of normal additional and replacement investments required for growth, amounted to EUR 3.1 million (EUR 2.6 million) during the reporting period. Capital Expenditure relating to the opening of new units totalled EUR 2.0 million (EUR 3.0 million). Gross investments in tangible and intangible assets attributable to M&A transactions, including goodwill, totalled EUR 10.8 million (EUR 7.5 million).
The Group's investment commitments are related to the opening of a new private clinic in Jyväskylä, the opening of a new occupational healthcare clinic in Vantaa, the renovation of the business location in Pietarsaari, IT system development projects for financial and human resources administration and the procurement of new imaging
systems. In total, these investment commitments amount to about EUR 1.1 million.
The Group's personnel numbered 2,247 on average (1,524) during the reporting period, an increase of 47 per cent. At the end of the reporting period the number of personnel stood at 2,525 (1,649). The number of Group personnel grew by over 200 employees due to M&A transactions during the reporting period. The other increase in personnel is attributed to the Group's organic growth, including new healthcare and social care outsourcing contracts. The Group's employee benefit expenses totalled EUR 44.9 million (EUR 29.9 million), an increase of 50 per cent.
The Group expanded through several M&A transactions during the reporting period. Pihlajalinna signed an agreement for acquiring the entire share capital of Suomen Keinojuuriklinikka in February 2015. As a result of this acquisition, Keinojuuriklinikka became a part of the nationwide Dextra chain from the beginning of March. In January 2015 Dextra opened a new dental clinic on the 7th floor of the Stockmann department store in Helsinki.
The Group also strengthened its dental care business in Jyväskylä by acquiring Wiisuri Oy's entire share capital in early February 2015.
The arbitration process concerning the MediLappi Oy share transaction was concluded on 19 February 2015. The transaction price confirmed in the arbitration process was EUR 0.2 million higher than the management's estimate in the 2014 financial statements.
The operations of Pietarsaaren Medicenter Oy were consolidated from the beginning of February 2015.
Pihlajalinna acquired three care homes in Southwest Finland on 31 March 2015 (Hoitokoti Matinkartano Oy, Hoitokoti Setälänpiha Oy and Raision Oiva Oy). In conjunction with the transaction the care homes were given new marketing names Ikipihlaja Oiva, Ikipihlaja Matinkartano and Ikipihlaja Setälänpiha. The business acquisition almost doubles the revenue of Pihlajalinna's Care Services service area. As a part of financing the care home acquisitions the Group sold its care home properties and the property company Hämeenlinnan Nuutintupa.
Pihlajalinna bought the non-controlling interest in its subsidiary Dextra Suunterveydenhoito Oy on 1 April 2015. After that the Group's share in the company is 100 per cent.
The total costs of the business combinations in the reporting period was EUR 16.8 million, totally paid in cash. The acquisitions generated a total of EUR 8.5 million in goodwill. The business combinations were financed by drawing down new non-current loans from the Group's
credit limit EUR 4.3 million and by the sale of care premises owned by the Group EUR 9.1 million.
Joni Aaltonen was appointed Chief Operating Officer (COO) of the Pihlajalinna Group as of 14 April 2015. He had previously served as the Group's Chief Financial Officer (CFO). In his new position, Aaltonen is responsible for the Group's strategic development and M&A transactions and for ensuring the profitable growth of business operations. The Group's procurement unit will also report to him.
Virpi Holmqvist was appointed Chief Financial Officer (CFO) of the Pihlajalinna Group as of 14 April 2015. Holmqvist is responsible for managing the Group's financial administration function and developing its processes. She previously served on the management team of Attendo Finland Group beginning from 2008, initially as Financial Director and for the last two years as Director of Outsourced Social and Health Care Services.
Pekka Utriainen has been appointed to a VP of the Dental Care service area starting immediately. Utriainen (Ph.D. in Philosophy, Licentiate of Dentistry and Specialist in Dental Care) has previously worked as Deputy Mayor responsible of social and healthcare of City of Jyväskylä and in several other leadership positions in Jyväskylä and Seinäjoki among others. He has also worked as researcher in the Academy of Finland and as a dentist.
VP of Care Services, Hanna Aschan (M.Sc. Health Sci., MBA) will retire 1.2.2016. The new VP of Care Services will be appointed by the end of the financial year 2015.
The Pihlajalinna Group's management team has seven members: Mikko Wirén, CEO, Leena Niemistö, Deputy CEO and Director of the Private Clinics and Specialised Care segment, Joni Aaltonen, Chief Operating Officer, Juha Rautio, Director of the Primary and Social Care segment, Virpi Holmqvist, Chief Financial Officer, Terhi Kivinen, Senior Vice President Communications and Marketing, and Kimmo Saarinen, Medical Director.
At the end of the reporting period Pihlajalinna Oy's share capital amounted to EUR 80,000 and the total number of shares outstanding was 19,113,146. The Company has one share series, with each share entitling its holder to one vote at a general meeting of the Company. All shares vest their holders with equal rights to dividends and other distribution of the Company's assets. At the end of the reporting period, the Company had 2,869 (174) shareholders. The Company does not hold any treasury shares. The list of largest shareholders is available on the investor's website of the Company www.pihlajalinna-konserni.fi.
The trading of Pihlajalinna shares commenced on the pre-list of NASDAQ OMX Helsinki Ltd on 4 June 2015 and on the official list on 8 June 2015. During the first trading month 4,961,193 shares1 were traded, the trading value in total was EUR 55,462,043. The highest price of the period was EUR 14.00, the lowest price EUR 11.38, the average price EUR 12.13 and the ending price EUR 12.25. The market value of the share capital based on the ending price was EUR 234.1 million.
Pihlajalinna Oyj received on 17 June 2015 a disclosure notice under chapter 9, section 5 of the Securities Market Act regarding MWW Yhtiö Oy holdings of Pihlajalinna Oyj stock that on 17 June 2015 have increased to 11.23 per cent of total Pihlajalinna stock and voting rights.
According to information published in the Offering Circular of Pihlajalinna Oyj, MWW Yhtiö Oy and Sinister Oy shareholders signed agreements on 7 May 2015 and 8 May 2015 according to which MWW Yhtiö Oy will buy the shares of Sinister Oy should the listing of Pihlajalinna Oyj be realised. The acquisition of the shares has been realised with the payment of the purchase price of the shares on 17 June 2015. Pihlajalinna Oyj CEO Mikko Wirén and his family own about 90 per cent of MWW Yhtiö Oy.
Pihlajalinna's Annual General Meeting held on 12 March 2015 adopted the financial statements and the Board of Directors' report for 1 January 2014 – 31 December 2014, and resolved that no dividend will be paid for the 2014 financial year. The Annual General Meeting discharged the members of the Board and the CEO from liability.
In the Annual General Meeting on 12 March 2015 former board members Aarne Aktan, Heikki Dunder, Leena Niemistö, Veli-Matti Qvintus, Marjatta Rytömaa and Mika Uotila were re-elected, and Jari Sundström was elected as a new member, to Pihlajalinna Oy's Board of Directors, which has seven members. The Extraordinary General Meeting held on 22 May 2015 made a decision of the number of the Board Members being eight (8) and elected Martti Ala-Härkönen to be a new Member of the Board of Directors for the term starting 1 June 2015 and continuing to the end of the next Annual General Meeting.
The Annual General Meeting on 12 March 2015 decided to keep its compensation unchanged, with each Board member being paid a monthly remuneration of EUR 1,000. In addition, a meeting fee of EUR 1,000 will be paid
for each Board meeting to all members who are present, and a meeting fee of EUR 500 for each committee meeting to all members who are present.
The firm of authorised public accountants KPMG Oy, with Frans Kärki, APA, as the principal auditor, were elected as the Company's auditors.
The Company's Extraordinary General Meeting decided on 22 May, 2015 to change the Articles of Association and the company form. The business name of the Company was changed to Pihlajalinna Oyj and the redemption clause and the notice clause according to the former Articles of Association were removed. The removal of these clauses was registered in connection to the listing on 4 June 2015.
In addition the Extraordinary General Meeting decided on 22 May 2015 to increase the capital stock with a bonus issue from EUR 2,500 to EUR 80,000 from the reserve for invested unrestricted equity.
Pihlajalinna's Extraordinary General Meeting on 22 May 2015 authorised the Board of Directors to decide on directed share issue and its terms in relation to the listing of the Company including the subscription price and price range of the shares.
The number of the shares issued under the authorisation may be in total maximum 9,000,000. The authorisation is valid to the end of the next Annual General Meeting, at most until 30 June 2016. The Board has under the authorisation issued 5,714,286 new shares in connection to the Initioal Public Offering of the Company.
In addition Pihlajalinna's Extraordinary General Meeting on 22 May 2015 authorised the Board of Directors to decide on issuance of option rights and other special rights conferring entitlement to the shares referred to in Chapter 10, Section 1 of the Finnish Companies Act as follows: Based on authorisation the Board of Directors may issue option rights or other special rights which entitle to subscribe in total 800,000 shares of the Company. The Board of Directors has right to decide on all terms including the terms of the option programs directed to the key management persons of the Pihlajalinna Group. The authorisation is valid 18 months from the authorisation decision.
The Board of Directors has in its meeting 18 June 2015 resolved upon members of its committees for a term ending at the end of the next Annual General Meeting.
Mika Uotila was elected as a chairman of the Audit Committee, other members are Marjatta Rytömaa, Aarne
Aktan and Martti Ala-Härkönen. 1 Includes 1,918,409 shares sold by certain shareholders of the Company in connection to the listing and full exercise of the Over-Allotment Option 978,000 shares.
Aarne Aktan was elected as a chairman of the Nomination and Remuneration Committee, other members are Veli-Matti Qvintus, Marjatta Rytömaa and Jari Sundström.
The Company announced on 4 May 2015 its plan for an Initial Public Offering and listing on NASDAQ OMX Helsinki. The Board of the Company decided under the authorisation given by the Extraordinary General Meeting on 22 May 2015 to arrange the Initial Public Offering and to file the listing application.
In the Initial Public Offering the Company offered for subscription ("Share Issue") and certain shareholders of the Company offered for purchase ("Share Sale") in total preliminary maximum 7,607,076 shares of the Company. Preliminary maximum 500,000 shares were offered to private individuals and organisations in Finland ("Public offering") and preliminary maximum 7,107,076 shares to institutional investors in Finland and internationally ("Institutional offering").
According to the terms and conditions of the Initial Public Offering in the event of an oversubscription, Sentica Buyout III Ky and Sentica Buyout III Co-Investment Ky (together "Institutional Sellers") and the Lead Manager Danske Bank may agree on granting the Lead Manager an over-allotment option exercisable within 30 days from the publication of the final subscription price to subscribe up to 978,000 additional shares. In addition in the terms and conditions of the Initial Public Offering was agreed on stabilisation measures, which the Lead Manager may, within 30 days of the publication of the final subscription price engage in measures that stabilise, maintain or otherwise affect the price of the shares.
The Lead Manager carried out the Share Lending Agreement with Institutional Sellers related to stabilisation according to the terms and conditions of the Initial Public Offering. According to the Share Lending Agreement the Lead Manager borrowed the shares of the Company for the number equal to the over-allotment option.
The Public Offering was discontinued due to oversubscribtion on 1 June 2015 and the Institutional offering was discontinued due to oversubscribtion on 3 June 2015. The final subscription price of Pihlajalinna was set at EUR 10.50 per share on 3 June, 2015. In the Initial Public Offering 5,714,286 new shares were issued corresponding about 43 per cent of the total amount of the shares before the share issue. In the share issue certain shareholders of the Company sold 1,918,409 shares. The over-allotment option was exercised in total. The Lead Manager Danske Bank bought 978,000 shares from the Institutional Sellers on 11 June 2015. In the same connection Danske Bank
redelivered 978,000 shares of Pihlajalinna borrowed on the basis of a Share Lending Agreement to the Institutional Sellers.
No stabilisation measures were carried out since the listing, and due to Pihlajalinna's share price development, the Lead Manager discontinued the stabilisation period.
In the Initial Public Offering in total 749,997 shares were allocated to private individuals and organisations in Finland and 6,882,698 shares for institutional investors in Finland and internationally. The total number of the shares of the Company amounted to 19,113,146 shares. The shares were registered in the trade register on 4 June 2015.
As the population ages and the structures of health care services change, social policies may have a material impact on the private health care sector's business environment both in the short and long term. New policies may impact business opportunities in the future, particularly with respect to the availability of skilled expert personnel.
In addition to the aforementioned factors, the Pihlajalinna Group's operational risks and uncertainties in the long term concern the continuity of key existing customer relationships and contracts and the financial impacts of new commitments and contracts, which are continuously increasing in value. The competitive situation in the Pihlajalinna Group's business areas is estimated to remain unchanged.
Political decision-making and structural reforms in the public sector also affect social care and healthcare services and may directly or indirectly impact the Company's business and growth opportunities. The purpose of the planned Social and Healthcare Reform is to guarantee equal social and healthcare services to all citizens of Finland. The future overall effects of the Social and Healthcare Reform and any other possible changes in the arrangement of social and healthcare services are difficult to predict. Reforms may hamper the Company's operations in some areas of social and healthcare services but, on the other hand, the Company's extensive operations in different operating areas may partially balance the effects of reforms.
No significant events have occurred after the balance sheet date.
This Interim Report has been prepared in accordance with IAS 34 (Interim Financial Reporting) and in compliance with the same accounting policies and methods used in the preparation of the consolidated financial statements
for 2014. All of the figures presented in the condensed financial statements and the notes have been rounded, due to which the actual total of individual figures may differ from the total presented.
The preparation of the financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the valuation of the reported assets and liabilities and contingent assets and liabilities on the statement of financial position, and the recognition of the amount of income and expenses. Although the estimates are based on the management's best knowledge of current events and actions, actual results may differ from the estimates.
In the 2014 financial year, the Pihlajalinna Group carried out an extensive restructuring and refinancing arrangement. Prior to the restructuring arrangement, the Group's parent company was Pihlajalinna Terveys Oy (former Pihlajalinna Oy, business ID 2303024–5). The Group's new parent company, Pihlajalinna Oy (former Sorbuscast Oy, business ID 2617455–1), was registered on 29 April 2014. In July 2014, Pihlajalinna Oy carried out a directed share issue for the holders of Series A shares in Pihlajalinna Terveys Oy, who exchanged their shares for new shares in Pihlajalinna Oy. As a result of the share swap, Pihlajalinna Oy holds the entire share capital of Pihlajalinna Terveys Oy, and the parties that held a stake in Pihlajalinna Terveys Oy prior to the restructuring became shareholders of Pihlajalinna Oy.
The information presented in this January–June 2015 interim report is unaudited.
| EUR million | 4–6/ 2015 |
4–6/ 2014 |
change % | 1–6/ 2015 |
1–6/ 2014 |
change % | 2014 |
|---|---|---|---|---|---|---|---|
| 3 mths | 3 mths | 6 mths | 6 mths | 12 mths | |||
| Revenue | 51.9 | 32.8 | 58 | 99.8 | 64.3 | 55 | 148.9 |
| Other operating income | 0.3 | 0.3 | –11 | 0.4 | 0.5 | –11 | 0.9 |
| Materials and services | –20.3 | –11.0 | 85 | –38.5 | –21.3 | 81 | –58.7 |
| Employee benefit expenses | –23.6 | –15.6 | 51 | –44.9 | –29.9 | 50 | –62.2 |
| Other operating expenses | –6.2 | –3.6 | 74 | –11.7 | –7.3 | 59 | –17.1 |
| EBITDA | 2.1 | 3.0 | –31 | 5.1 | 6.2 | –18 | 11.8 |
| Depreciation, amortisation and impairment |
–2.0 | –1.4 | 39 | –3.8 | –2.7 | 38 | –5.8 |
| Operating profit (EBIT) | 0.1 | 1.6 | –96 | 1.3 | 3.5 | –62 | 6.0 |
| Financial income | 0.1 | 0.0 | 42 | 0.1 | 0.1 | 47 | 0.1 |
| Financial expenses | –0.8 | –1.2 | –29 | –1.5 | –1.6 | –7 | –3.2 |
| Profit before tax | –0.7 | 0.4 | –253 | –0.1 | 1.9 | –106 | 2.9 |
| Income taxes | 0.1 | –0.1 | –164 | 0.1 | –0.5 | –126 | –1.0 |
| Profit for the period ** | –0.6 | 0.3 | –297 | 0.0 | 1.4 | –99 | 1.9 |
| Total comprehensive ncome for the period |
–0.6 | 0.3 | –297 | 0.0 | 1.4 | –99 | 1.9 |
| Total comprehensive income for the period attributable |
|||||||
| To the owners of the parent | –0.7 | 0.1 | –1075 | –0.3 | 1.0 | –133 | 1.5 |
| To non-controlling interests | 0.2 | 0.2 | –28 | 0.4 | 0.4 | –7 | 0.4 |
| Earnings per share calculated on the basis of the profit for the period attributable to owners of the parent (EUR) |
|||||||
| Basic and diluted | –0.05 | 0.00 | –0.02 | 0.08 | 0.11 |
** The Group has not had any other comprehensive income
| EUR million | 6/2015 | 6/2014 | change% | 12/2014 |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Property, plant and equipment | 39.8 | 30.1 | 35.3 | |
| Goodwill | 64.6 | 50.6 | 56.2 | |
| Other intangible assets | 11.0 | 8.4 | 9.7 | |
| Interests in associates | 0.0 | 0.1 | 0.0 | |
| Available-for-sale financial assets | 0.1 | 0.1 | 0.1 | |
| Other receivables | 2.7 | 0.6 | 1.6 | |
| Deferred tax assets | 2.3 | 0.9 | 1.1 | |
| Total non-current assets | 120.4 | 90.8 | 33 | 104.2 |
| Current assets | ||||
| Inventories | 1.6 | 0.8 | 1.3 | |
| Trade receivables and other receivables | 17.8 | 14.4 | 14.1 | |
| Current tax assets | 0.4 | 0.5 | 0.1 | |
| Cash and cash equivalents | 32.6 | 9.8 | 11.0 | |
| Total current assets | 52.5 | 25.5 | 106 | 26.5 |
| Total assets | 172.9 | 116.3 | 49 | 130.7 |
| EQUITY AND LIABILITIES | ||||
| Equity attributable to owners of the parent | ||||
| Share capital | 0.1 | 0.0 | 0.0 | |
| Reserve for invested unrestricted equity | 62.6 | 5.1 | 5.1 | |
| Retained earnings | 3.7 | 2.8 | 2.8 | |
| Result for the review period | –0.3 | 1.0 | 1.5 | |
| 66.1 | 8.9 | 9.4 | ||
| Non-controlling interests | 1.0 | 1.0 | 1.0 | |
| Total equity | 67.0 | 9.9 | 575 | 10.4 |
| Non-current liabilities | ||||
| Deferred tax liabilities | 4.4 | 3.7 | 4.1 | |
| Financial liabilities | 54.6 | 69.3 | 73.6 | |
| Other non-current liabilities | 2.0 | 0.9 | 0.8 | |
| Total non-current liabilities | 61.0 | 73.9 | –17 | 78.5 |
| Current liabilities | ||||
| Trade and other payables | 37.9 | 25.2 | 26.5 | |
| Current tax liabilities | 0.6 | 0.6 | 0.9 | |
| Financial liabilities | 6.3 | 6.6 | 14.4 | |
| Total current liabilities | 44.9 | 32.4 | 38 | 41.8 |
| Total liabilities | 105.9 | 106.4 | 0 | 120.3 |
| Total equity and liabilities | 172.9 | 116.3 | 49 | 130.7 |
| Reserve for invested |
Non | ||||
|---|---|---|---|---|---|
| EUR million | Share capital |
unrestricted equity |
Retained earnings |
controlling interests |
Total equity |
| Total equity, 1 Jan 2014 | 0.0 | 31.0 | 6.2 | 1.1 | 38.3 |
| Profit for the period | 1.0 | 0.4 | 1.4 | ||
| Total comprehensive income for the period | 1.0 | 0.4 | 1.4 | ||
| Share issue | 3.7 | 3.7 | |||
| Dividends paid | –3.3 | –3.3 | |||
| Repayment of capital | –29.6 | –0.5 | –30.1 | ||
| Total transactions with the owners of the parent | –25.9 | –3.3 | –29.2 | ||
| Changes in non-controlling interests | 0.0 | 0.0 | |||
| Total equity, 30 June 2014 | 0.0 | 5.1 | 3.8 | 1.0 | 9.9 |
| Total equity, 1 Jan 2015 | 0.0 | 5.1 | 4.3 | 1.0 | 10.4 |
| Profit for the period | –0.3 | 0.4 | 0.0 | ||
| Total comprehensive income for the period | –0.3 | 0.4 | 0.0 | ||
| Bonus issue | 0.1 | –0.1 | |||
| Share issue * | 57.6 | 57.6 | |||
| Dividends paid | –0.5 | –0.5 | |||
| Total transactions with the owners of the parent | 57.6 | 57.6 | |||
| Changes in non-controlling interests resulting no change in control |
–0.6 | 0.1 | –0.5 | ||
| Total equity, 30 June 2015 | 0.1 | 62.6 | 3.4 | 1.0 | 67.0 |
* The emission costs EUR 2.4 million for the new shares and the related tax have been recorded in in the reserve for invested unrestricted equity.
| 4–6/2015 | 4–6/2014 | 1–6/2015 | 1–6/2014 | 2014 | |
|---|---|---|---|---|---|
| EUR million | 3 mths | 3 mths | 6 mths | 6 mths | 12 mths |
| Cash flow from operating activities | |||||
| Cash receipts from sales | 52.5 | 32.4 | 101.6 | 62.8 | 145.6 |
| Cash receipts from other operating income | 0.3 | 0.2 | 0.4 | 0.3 | 0.7 |
| Operating expenses paid | –49.3 | –29.0 | –91.4 | –57.6 | –135.6 |
| Operating cash flow before financial items and taxes | 3.5 | 3.6 | 10.6 | 5.5 | 10.7 |
| Interest received | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 |
| Taxes paid | –1.0 | –1.1 | –1.1 | –1.2 | –1.4 |
| Net cash flow from operating activities | 2.6 | 2.5 | 9.5 | 4.3 | 9.4 |
| Cash flow from investing activities | |||||
| Investments in property, plant and | |||||
| equipment and intangible assets | –1.6 | –4.4 | –4.9 | –5.2 | –10.4 |
| Proceeds from disposal of property, plant and equipment and intangible assets and prepayments |
–1.2 | 7.8 | |||
| Changes in other investments | 0.0 | 0.0 | 0.4 | 0.0 | 0.0 |
| Changes in loan receivables | –0.1 | 1.1 | –0.1 | –1.2 | –1.3 |
| Dividends received | 0.0 | 0.0 | |||
| Acquisition of subsidiaries less cash and cash | |||||
| equivalents at date of acquisition | –2.8 | –1.9 | –13.0 | –1.2 | –5.1 |
| Disposal of subsidiaries less cash and cash equivalents | 1.3 | 0.0 | 1.3 | –0.6 | –0.6 |
| Net cash flow from investing activities | –4.3 | –5.2 | –8.5 | –8.2 | –17.5 |
| Cash flow from financing activities | |||||
| Proceeds from issuing shares | 58.2 | 0.0 | 58.2 | 3.7 | 3.7 |
| Repayment of capital | –29.6 | –29.6 | –29.6 | ||
| Changes in non-controlling interests | –0.5 | –0.5 | |||
| Proceeds from borrowings | 0.1 | 62.3 | 4.4 | 62.3 | 69.7 |
| Repayment of borrowings | –33.1 | –28.5 | –39.3 | –29.2 | –29.2 |
| Repayment of finance lease liabilities | –0.3 | 0.1 | –0.5 | –0.6 | |
| Interest and other operational financial expenses | –0.7 | –0.5 | –1.2 | –0.9 | –2.4 |
| Dividends paid and other profit distribution | –0.5 | –3.3 | –0.5 | –3.8 | –3.8 |
| Net cash flow from financing activities | 23.2 | 0.5 | 20.7 | 2.5 | 7.7 |
| Changes in cash and cash equivalents | 21.4 | –2.1 | 21.7 | –1.5 | –0.4 |
| Cash at the beginning of the financial period | 11.2 | 12.0 | 11.0 | 11.3 | 11.3 |
| Cash at the end of the financial period | 32.6 | 9.8 | 32.6 | 9.8 | 11.0 |
| 4–6/2015 | 4–6/2014 | change% | 1–6/2015 | 1–6/2014 | change% | 2014 | |
|---|---|---|---|---|---|---|---|
| EUR million | 3 mths | 3 mths | 6 mths | 6 mths | 12 mths | ||
| Revenue | |||||||
| L & E | 30.8 | 18.5 | 67 | 60.7 | 35.9 | 69 | 92.9 |
| P & S | 22.0 | 14.7 | 50 | 40.6 | 29.1 | 39 | 57.9 |
| Unallocated | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||
| Eliminations | –0.9 | –0.3 | –1.5 | –0.7 | –1.9 | ||
| Total consolidated revenue | 51.9 | 32.8 | 58 | 99.8 | 64.3 | 55 | 148.9 |
| EBITDA | |||||||
| L & E | 1.9 | 2.5 | –24 | 5.0 | 5.2 | –3 | 11.2 |
| P & S | 1.3 | 0.9 | 48 | 1.5 | 1.6 | –5 | 2.8 |
| Unallocated | –1.1 | –0.4 | –1.4 | –0.5 | –2.2 | ||
| Consolidated EBITDA | 2.1 | 3.0 | –31 | 5.1 | 6.2 | –18 | 11.8 |
| EBITDA, % of revenue | |||||||
| L & E | 6.2% | 13.6% | –54 | 8.2% | 14.4% | –43 | 12.1% |
| P & S | 5.9% | 6.0% | –1 | 3.7% | 5.5% | –32 | 4.8% |
| Consolidated EBITDA, % of revenue | 4.0% | 9.1% | –56 | 5.1% | 9.7% | –47 | 7.9% |
| Operating profit | |||||||
| L & E | 0.4 | 1.3 | –73 | 1.9 | 3.0 | –36 | 6.3 |
| P & S | 0.9 | 0.6 | 37 | 0.8 | 1.0 | –19 | 1.9 |
| Unallocated | –1.2 | –0.4 | –1.4 | –0.6 | –2.2 | ||
| Consolidated operating profit | 0.1 | 1.6 | –96 | 1.3 | 3.5 | –62 | 6.0 |
| Operating profit, % of revenue | |||||||
| L & E | 1.2% | 7.2% | –84 | 3.1% | 8.4% | –62 | 6.7% |
| P & S | 4.0% | 4.4% | –8 | 2.1% | 3.6% | –42 | 3.3% |
| Consolidated operating | |||||||
| profit, % of revenue | 0.1% | 4.7% | –97 | 1.3% | 5.4% | –76 | 4.0% |
| Reconciliation | 4–6/2015 | 4–6/2014 | change% | 1–6/2015 | 1–6/2014 | change% | 2014 |
| Revenue | |||||||
| Operating segments' revenue | 52.8 | 33.2 | 59 | 101.3 | 65.0 | 56 | 150.8 |
| Elimination of inter-segment revenue | –0.9 | –0.3 | 179 | –1.5 | –0.7 | 122 | –1.9 |
| Total consolidated revenue | 51.9 | 32.8 | 58 | 99.8 | 64.3 | 55 | 148.9 |
| EBITDA | |||||||
| Operating segments' EBITDA | 3.2 | 3.4 | –5 | 6.5 | 6.8 | –4 | 8.2 |
| Items unallocated to the segments | –1.1 | –0.4 | 192 | –1.4 | –0.5 | 160 | –2.2 |
| Consolidated EBITDA | 2.1 | 3.0 | –31 | 5.1 | 6.2 | –18 | 6.0 |
| Operating profit | |||||||
| Operating segments' operating profit | 1.2 | 2.0 | –37 | 2.8 | 4.0 | –32 | 8.2 |
| Items unallocated to the segments | –1.2 | –0.4 | 181 | –1.4 | –0.6 | 151 | –2.2 |
| Consolidated operating profit | 0.1 | 1.6 | –96 | 1.3 | 3.5 | –62 | 6.0 |
| EUR million | 1–6/2015 | 1–6/2014 | 2014 |
|---|---|---|---|
| Cost at the beginning of the period | 45.1 | 29.6 | 29.6 |
| Additions | 13.9 | 4.1 | 9.6 |
| Business Combinations | 0.6 | 4.8 | 7.8 |
| Disposals | –8.4 | –1.9 | –1.9 |
| Cost in the end of the period | 51.2 | 36.7 | 45.1 |
| Accumulated depreciation at the beginning of the period | –9.7 | –4.9 | –4.9 |
| Depreciation in the period | –2.4 | –1.7 | –3.5 |
| Business Combinations | 0.0 | –0.1 | –1.4 |
| Accumulated depreciation on disposals | 0.7 | 0.1 | 0.1 |
| Accumulated depreciation in the end of the period | –11.4 | –6.6 | –9.7 |
| Carrying amount in the end of the period | 39.8 | 30.1 | 35.3 |
| EUR million | 1–6/2015 | 1–6/2014 | 2014 |
|---|---|---|---|
| Cost at the beginning of the period | 70.6 | 58.1 | 58.1 |
| Additions | 1.0 | 0.7 | 1.4 |
| Business Combinations | 10.2 | 3.6 | 11.1 |
| Disposals | –0.2 | 0.0 | 0.0 |
| Cost in the end of the period | 81.7 | 62.4 | 70.6 |
| Accumulated amortisation at the beginning of the period | –4.7 | –2.3 | –2.3 |
| Amortisation in the period | –1.4 | –1.0 | –2.3 |
| Business Combinations | 0.0 | 0.0 | 0.0 |
| Accumulated amortisation on disposals | –6.1 | –3.3 | –4.7 |
| Accumulated amortisation in the end of the period | 75.6 | 59.1 | 66.0 |
| EUR million | 30.6.2015 | 30.6.2014 31.12.2014 | |
|---|---|---|---|
| Collateral given on own behalf | |||
| Pledged collateral notes | 520.6 | 312.6 | 416.6 |
| Properties | 4.6 | 4.6 | |
| Other shares | 2.4 | 2.5 | 2.5 |
| Bank accounts and other receivables | 26.8 | 3.9 | 5.1 |
| Collateral given on behalf of associates | |||
| Other contingent liabilities | 2.1 | 1.9 | 2.3 |
| Other contingent liabilities | |||
| Lease commitments | 23.2 | 8.3 | 15.9 |
| Value added tax (VAT) adjustment liability on property investments | 0.1 | 0.1 | 0.1 |
The following information on business combinations is presented consolidated, since the acquisitions are not individually material:
| EUR million | 1–6/2015 |
|---|---|
| Consideration transferred | |
| Cash | 16.8 |
| Total cost of combinations | 16.8 |
At the date of acquisition, the values of assets acquired and liabilities assumed were as follows:
| EUR million | 1–6/2015 |
|---|---|
| Property, plant and equipment | 0.6 |
| Intangible assets | 1.7 |
| Non-current receivables | 0.0 |
| Inventories | 0.2 |
| Trade receivables and other receivables | 1.3 |
| Cash and cash equivalents | 5.4 |
| Total assets | 9.3 |
| Deferred tax liability | –0.3 |
| Financial liabilities | –0.1 |
| Other liabilities | –0.5 |
| Total liabilities | –1.0 |
| Net assets | 8.3 |
Goodwill generated in the acquisition
| Consideration transferred | 16.8 |
|---|---|
| Net identifiable assets of acquiree | –8.3 |
| Goodwill | 8.5 |
| Transaction price paid in cash | 16.8 |
| Cash and cash equivalents of acquiree | –5.4 |
| Effect on cash flow | 11.4 |
The acquisition-related expenses, a total of EUR 333 thousand have been recorded under other operating expenses.
The revenues and profit from the business combinations since the dates of acquisition total revenues EUR 4.6 million and total operating profit EUR 0.3 million, are included in the consolidated statement of comprehensive income. Had the business combinations during the financial year been consolidated since the beginning of the 2015 reporting period, consolidated revenues would have amounted to EUR 102.6 million and operating profit for the period would have amounted to EUR 1.4 million.
| EUR million | 1–6/2105 | 1–6/2014 | 1–12/2014 |
|---|---|---|---|
| Key management personnel | |||
| Rents paid | 0.53 | 0.31 | 0.60 |
| Services procured | 0.29 | ||
| Payments received | 0.23 | 0.44 | |
| Receivables | 0.12 | ||
| Trade payables | 0.00 | 0.01 | 0.00 |
| Other related parties | |||
| Services procured | 0.07 | 0.05 | 0.11 |
| Trade payables | 0.00 | 0.00 | 0.01 |
| Associates | |||
| Services procured | 0.12 | 0.09 | 0.22 |
| Trade payables | 0.08 | 0.06 | |
| Loan receivables | 1.45 | 1.15 | 1.34 |
| EUR million | Q2/15 | Q1/15 | Q4/14 | Q3/14 | Q2/14 | Q1/14 |
|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
||||||
| Revenue | 51.9 | 47.9 | 51.9 | 32.6 | 32.8 | 31.5 |
| Other operating income | 0.3 | 0.1 | 0.3 | 0.1 | 0.3 | 0.2 |
| Materials and services | –20.3 | –18.2 | –27.5 | –9.8 | –11.0 | –10.4 |
| Employee benefit expenses | –23.6 | –21.3 | –17.5 | –14.8 | –15.6 | –14.3 |
| Other operating expenses | –6.2 | –5.5 | –4.2 | –5.5 | –3.6 | –3.8 |
| EBITDA | 2.1 | 3.0 | 3.0 | 2.6 | 3.0 | 3.2 |
| EBITDA excluding non-recurring items | 3.0 | 3.1 | 3.6 | 3.8 | 3.5 | 3.2 |
| Depreciation, amortisation and impairment | –2.0 | –1.8 | –1.6 | –1.5 | –1.4 | –1.3 |
| Operating profit (EBIT) | 0.1 | 1.3 | 1.4 | 1.1 | 1.6 | 1.9 |
| Operating profit (EBIT) excluding | ||||||
| non-recurring items | 1.0 | 1.3 | 1.9 | 2.3 | 2.0 | 1.9 |
| Financial income | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Financial expenses | –0.8 | –0.7 | –0.7 | –0.9 | –1.2 | –0.5 |
| Profit before tax | –0.7 | 0.6 | 0.7 | 0.2 | 0.4 | 1.5 |
| Income taxes | 0.1 | 0.0 | –0.2 | –0.3 | –0.1 | –0.3 |
| Profit for the period | –0.6 | 0.6 | 0.5 | –0.1 | 0.3 | 1.1 |
| Personnel at the end of the period | 2,525 | 2,261 | 1,714 | 1,688 | 1,649 | 1,466 |
The interim report for January-September 2015 will be published on Wednesday, 11 November 2015.
Helsinki, 18 August 2015
Pihlajalinna Oyj's Board of Directors
The press and analyst meeting for the announcement of financial results of the second quarter 2015 will be held on August 18, 2015 at 10:00 the Kämp hotel congress center, meeting room Paavo Nurmi, Pohjoisesplanadi 29, 00100, Helsinki.
An audio webcast and teleconference in English will be held on the same day starting at 13.30 p.m. EET. UK: 020 3059 8125 International: +44 20 3059 8125
Participant password: Pihlajalinna
The event can be followed live as an audio webcast at www.pihlajalinna-konserni.fi/investors. The event will be recorded and can be accessed on the website later the same day.
Mikko Wirén, managing director, tel. +358 50 3220 927
Virpi Holmqvist, CFO, tel. +358 40 537 6133
Terhi Kivinen, SVP, Communications, Marketing and IR, tel. +358 40 848 4001
NASDAQ OMX Helsinki Major media www.pihlajalinna-konserni.fi
Pihlajalinna is one of the leading private social and healthcare services providers in Finland. The Company provides social and healthcare services for households, companies, insurance companies and public sector entities in private clinics, health centres, dental clinics and hospitals around Finland. Pihlajalinna provides general practitioner and specialised care services, including emergency and on-call services, a wide range of surgical services as well as occupational healthcare and dental care services, in private clinics and hospitals operating under the Dextra brand. Under the Pihlajalinna brand the Company, in cooperation with the public sector, offers social and healthcare service provision models to public sector entities with the aim of providing high quality services for public pay healthcare customers.
| Profit for the period | ||||
|---|---|---|---|---|
| Return on equity (ROE), % | Equity (average) | x 100 | ||
| Profit before taxes + interest and other financial expenses | ||||
| Return on capital employed (ROCE), % | Total statement of financial position – non-interest-bearing liabilities (average) |
|||
| Interest-bearing net debt | ||||
| Gearing, % | Equity | x 100 | ||
| Equity ratio, % | Equity | |||
| Total statement of financial position – prepayments received | x 100 | |||
| Earnings per share (EPS), EUR | Profit for the period attributable to owners of the parent | |||
| Average number of shares during the period | ||||
| Equity per share, EUR | Equity attributable to owners of the parent | |||
| Number of shares at period end | ||||
| EBITDA | Operating result + depreciation, amortisation and impairment | |||
| EBITDA, % | EBITDA | |||
| Revenue | x 100 | |||
| Net debt / Adjusted EBITDA (rolling 12 months) |
Interest bearing net debt | |||
| EBITDA excluding non-recurring items (rolling 12 months) | ||||
| Cash Flow after investments | Cash flow from operating activities + Cash flow from investing activies |
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