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Studsvik — Interim / Quarterly Report 2015
Apr 29, 2015
3208_10-q_2015-04-29_afdcfa53-dd24-4654-9b06-5dff7815c492.pdf
Interim / Quarterly Report
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Interim Report January–March 2015
- • Sales in the first quarter decreased to SEK 201.1 (219.7) million. In local currencies the decrease was 13.5 per cent.
- • Operating profit for the first quarter decreased to SEK –5.0 (5.3) million, including items affecting comparability of SEK 0 (1.3) million.
- • Cash flow after investments was SEK –5.6 (–18.4) million.
| January– March 2015 |
January– March 2014 |
Full year 2014 |
|
|---|---|---|---|
| Sales, SEK million | 201.1 | 219.7 | 909.6 |
| Operating profit, SEK million | –5.0 | 5.3 | 30.5 |
| Profit after tax, SEK million | –5.7 | 1.6 | 5.2 |
| Profit per share after tax, SEK | –0.69 | 0.20 | 0.63 |
| Cash flow after investments, SEK million | –5.6 | –18.4 | –54.8 |
| Equity per share, SEK | 34.98 | 33.95 | 35.64 |
| Interest-bearing net debt, SEK million | 107.0 | 86.5 | 105.7 |
| Net debt/equity ratio. % | 37.2 | 31.0 | 36.1 |
Sales
Sales in the first quarter decreased to SEK 201.1 (219.7) million. In local currencies the decrease was 13.5 per cent. The decreased sales primarily relate to the Waste Treatment business area.
Profit
Operating profit for the first quarter decreased to SEK –5.0 (5.3) million. Items affecting comparability were SEK 0 (1.3) million. Adjusted for these, the operating margin was –2.5 (2.4) per cent.
Net financial income for the first quarter was SEK –1.9 (–6.6) million. Profit/loss after tax for the first quarter was SEK –5.7 (1.6) million.
Fuel and Materials Technology
In the first quarter sales increased to SEK 55.4 (51.7) million. In local currencies the increase was 3.1 per cent.
Operating profit for the first quarter increased to SEK 3.3 (–0.8) million. The operating margin was 6.0 (–1.6) per cent.
Sales of the software in the first quarter were good and sales of services in Materials Technology continued to develop well, with rising margins.
Consultancy Services
In the first quarter sales decreased to SEK 94.9 (95.4) million. In local currencies the decrease was 8.7 per cent.
Operating profit for the first quarter decreased to SEK 2.6 (9.1) million. The decrease is attributable to weak demand for consulting services in ventilation in the UK. Items affecting comparability amounted to SEK 0 (1.7) million. Adjusted for these, the operating margin for the first quarter was 2.7 (7.8) per cent.
Demand for consulting services for THOR technology has increased.
Waste Treatment
In the first quarter sales decreased to SEK 44.7 (86.1) million. In local currencies the decrease was 34.6 per cent.
Operating profit in the first quarter decreased to SEK –3.2 (9.1) million. The operating margin was –7.2 (13.7) per cent.
Sales and earnings were unusually high in 2014 due to the large Berkeley project that continued for most of 2014. The first quarter this year was also negatively affected by weak demand for treatment of material in the Swedish facility. Demand for treatment at the facility in the UK is good and the actions taken is resulting in improvements. The order book for processing large metal components and material for incineration in the Swedish facility continues to be low.
Investments
The Group's investments in the first quarter were SEK 6.4 (4.4) million.
Cash flow
Working capital decreased in the first quarter by SEK 12.9 (increased 11.5) million. Cash flow from operating activities before changes in working capital amounted to SEK –12.1 (–2.5) million and after investments to SEK –5.6 (–18.4) million.
Financial position and liquidity
Cash and cash equivalents at the end of the first quarter amounted to SEK 122.8 (191.5) million. Interest-bearing liabilities were SEK 229.8 (278.0) million. Net interest-bearing debt was SEK 107.0 (86.5) million, which means a net debt/equity ratio of 37.2 (31.0) per cent.
Personnel
The average number of employees at the end of March was 828 (915). The decrease is attributable to the Waste Treatment and Consultancy Services business areas as well as the functions at the head office and Shared Services. As at December 31, 2014 the number of employees was 857.
Transactions with related parties
During the quarter a dividend of SEK 0.8 million was received from UK Nuclear Waste Management Ltd.
Parent company
Parent company operations comprise the co-ordination of tasks for the Group. Parent company sales in the first quarter amounted to SEK 3.0 (3.5) million. The operating loss amounted to SEK –8.9 (–12.0) million. Items affecting comparability related to restructuring impacted earnings by SEK 0 (–0.4) million. Loss after financial items was SEK –9.3 (–15.3) million.
Cash and cash equivalents, including current investments, amounted to SEK 37.4 (110.9) million.
Risks and uncertainties
An overall analysis of the Group's risks and how they are dealt with is given in the Annual Report, which is available on the company's website. Apart from these risks, no further significant risks are estimated to have arisen.
Accounting policies
The consolidated accounts for the Studsvik Group have been prepared in accordance with the Annual Accounts Act, the Swedish Financial Reporting Board recommendation RFR 1, Supplementary accounting rules for groups, International Financial Reporting Standards (IFRS) and interpretations by the IFRS Interpretations Committee (IFRIC) as adopted by the EU. There is a description of these accounting policies in the annual report. The consolidated accounts have been prepared in accordance with the historical cost method except as regards financial assets and liabilities carried at fair value through profit or loss.
The interim report for the parent company was prepared in accordance with the Annual Accounts Act and the Swedish Financial Reporting Board recommendation RFR 2 "Accounting for legal entities".
Stockholm, April 29, 2015
Michael Mononen President
This report has not been reviewed by the company's auditors.
Time schedule for financial information
| Interim Report January–June 2015 | July 21, 2015 |
|---|---|
| Interim Report January–September 2015 | October 21, 2015 |
| Year-end Report January–December 2015 | February 2016 |
For further information please contact
Michael Mononen, President and Chief Executive Officer, +46 155 22 10 86 or Pål Jarness, Chief Financial Officer, +46 155 22 10 09.
The interim report will be presented at a telephone conference to be held in English, on April 29 at 2:30 pm. Further information for those interested in participating is available at www.studsvik.se.
Consolidated statement of profit or loss and other comprehensive income
| Amounts in SEK million | January– March 2015 |
January– March 2014 |
Full year 2014 |
|---|---|---|---|
| Net sales | 201.1 | 219.7 | 909.6 |
| Cost of services sold | –153.0 | –164.7 | –660.5 |
| Gross profit | 48.1 | 55.0 | 249.1 |
| Selling and marketing expenses | –13.3 | –11.2 | –47.6 |
| Administrative expenses | –35.2 | –39.6 | –146.9 |
| Research and development costs | –5.7 | –6.2 | –25.8 |
| Share in earnings from associated companies | 3.1 | 5.0 | 11.5 |
| Other operating income | 1.0 | 3.1 | 5.4 |
| Other operating expenses | –3.0 | –0.8 | –15.2 |
| Operating profit | –5.0 | 5.3 | 30.5 |
| Financial income | 4.7 | 0.4 | 0.2 |
| Financial expenses | –8.1 | –4.4 | –17.1 |
| Fair value gain/loss (realized and unrealized) | 1.5 | –2.6 | –2.0 |
| Profit/loss before tax | –6.9 | –1.3 | 11.6 |
| Income tax | 1.2 | 2.9 | –6.4 |
| Profit/loss for the period from continuing operations | –5.7 | 1.6 | 5.2 |
| Operations held for sale | |||
| Profit/loss for the period from operations held for sale | – | –9.4 | –17.2 |
| NET PROFIT/LOSS FOR THE PERIOD | –5.7 | –7.8 | –12.0 |
| Other comprehensive income | |||
| Items that may later be reversed in the income statement | |||
| Translation differences on foreign subsidiaries | 4.2 | 0.5 | 19.1 |
| Cash flow hedging | –5.5 | –0.9 | –0.6 |
| Income tax on items recognized in other comprehensive income | 1.0 | 0.2 | 0.1 |
| Other comprehensive income for the period, net after tax | 0.3 | –0.2 | 18.6 |
| Total profit/loss and other comprehensive income for the period | –5.4 | –8.0 | 6.6 |
| Income for the period attributable to | |||
| Parent company's shareholders | –5.7 | –7.8 | –12.0 |
| Non-controlling interests | – | – | – |
| Total comprehensive income attributable to | |||
| Parent company's shareholders | –5.4 | –8.0 | 6.6 |
| Non-controlling interests | – | – | – |
| Earnings per share calculated on income attributable to the parent company's shareholders during the period, SEK |
|||
| Earnings per share before and after dilution | |||
| Profit/loss from continuing operations | –0.69 | 0.20 | 0.63 |
| Profit/loss from operations for sale | – | –1.15 | –2.09 |
| NET PROFIT/LOSS FOR THE PERIOD | –0.69 | –0.95 | –1.46 |
Group statement of financial position
| Amounts in SEK million | |||
|---|---|---|---|
| ------------------------ | -- | -- | -- |
| Amounts in SEK million | March | March | December |
|---|---|---|---|
| 2015 | 2014 | 2014 | |
| ASSETS | |||
| Intangible assets | 178.7 | 161.8 | 177.2 |
| Property, plant and equipment | 355.8 | 327.9 | 350.0 |
| Other non-current assets | 152.3 | 123.5 | 128.4 |
| Total non-current assets | 686.8 | 613.2 | 655.6 |
| Inventories | 2.2 | 1.7 | 1.9 |
| Trade receivables | 131.6 | 159.0 | 183.3 |
| Other current receivables | 77.7 | 106.1 | 80.5 |
| Cash and cash equivalents | 122.8 | 191.5 | 120.1 |
| Total current assets | 334.3 | 458.3 | 385.8 |
| TOTAL ASSETS | 1,021.1 | 1,071.5 | 1,041.3 |
| EQUITY AND LIABILITIES | |||
| Equity attributable to parent company's shareholders | 287.2 | 278.7 | 292.6 |
| Non-controlling interests | 0.3 | 0.3 | 0.3 |
| Borrowing | 202.3 | 264.3 | 203.0 |
| Provisions and other non-current liabilities | 246.5 | 225.4 | 241.0 |
| Total non-current liabilities | 448.8 | 489.7 | 444.0 |
| Trade and other payables | 257.3 | 289.1 | 281.6 |
| Borrowing | 27.5 | 13.7 | 22.8 |
| Total current liabilities | 284.8 | 302.8 | 304.4 |
| TOTAL EQUITY AND LIABILITIES | 1,021.1 | 1,071.5 | 1,041.3 |
| Pledged assets | 159.2 | 148.9 | 157.9 |
| Contingent liabilities | 60.8 | 55.1 | 60.7 |
Changes in equity
| Amounts in SEK million | Equity | |||||||
|---|---|---|---|---|---|---|---|---|
| Other | to the parent | Non | ||||||
| Share | contributed | Retained | company's | controlling | ||||
| capital | capital | Reserves | earnings | shareholders | interest | Total equity | ||
| Equity at December 31, 2013 | 8.2 | 225.3 | –6.0 | 58.5 | 286.0 | 0.3 | 286.3 | |
| Changes January 1 – March 31, 2014 | ||||||||
| Comprehensive income for the period | – | – | 0.5 | –7.8 | –7.3 | – | –7.3 | |
| Equity at March 31, 2014 | 8.2 | 225.3 | –5.5 | 50.7 | 278.7 | 0.3 | 279.0 | |
| Changes April 1 – December 31, 2014 | ||||||||
| Comprehensive income for the period | – | – | 18.1 | –4.2 | 13.9 | – | 13.9 | |
| Equity at December 31, 2014 | 8.2 | 225.3 | 12.6 | 46.5 | 292.6 | 0.3 | 292.9 | |
| Changes January 1 – March 31, 2015 | ||||||||
| Comprehensive income for the period | – | – | 0.3 | –5.7 | –5.4 | – | –5.4 | |
| Equity at March 31, 2015 | 8.2 | 225.3 | 12.9 | 40.8 | 287.2 | 0.3 | 287.5 |
Group statement of cash flow
| Amounts in SEK million | January– | January– | Full year |
|---|---|---|---|
| Total operations | March 2015 | March 2014 | 2014 |
| Cash flow from operating activities | |||
| Operating profit | –5.0 | –4.2 | 17.9 |
| Adjustment for non-cash items | –1,6 | 4.9 | 17.3 |
| –6.6 | 0.7 | 35.2 | |
| Financial items, net | –3.0 | –3.9 | –17.6 |
| Income tax paid | –2.5 | 0.7 | 1.1 |
| Cash flow from operating activities before change in | |||
| working capital | –12.1 | –2.5 | 18.7 |
| Change in working capital | 12.9 | –11.5 | –39.5 |
| Cash flow from operating activities | 0.8 | –14.0 | –20.8 |
| Investing activities | |||
| Acquisition of property, plant and equipment | –6.4 | –4.4 | –34.0 |
| Divestment of subsidiaries | – | 93.9 | 93.9 |
| Other cash flow from investing activities | 0.8 | –6.1 | 10.8 |
| Cash flow after investments | –4.8 | 69.4 | 49.9 |
| Financing activities | |||
| Change in borrowing | 4.0 | –29.2 | –92.6 |
| Dividend to shareholders | – | – | – |
| Cash flow from financing activities | 4.0 | –29.2 | –92.6 |
| Changes in cash and cash equivalents | –0.8 | 40.2 | –42.6 |
| Cash and cash equivalents at the beginning of the period | 120.1 | 151.4 | 151.4 |
| Translation difference | 3.5 | –0.1 | 11.3 |
| Cash and cash equivalents at the end of the period | 122.8 | 191.5 | 120.1 |
Financial ratios for the Group
| Amounts in SEK million | January– | January– | Full year |
|---|---|---|---|
| March 2015 | March 2014 | 2014 | |
| Margins | |||
| Operating margin, % | –2.5 | 2.4 | 3.3 |
| Profit margin, % | –3.4 | –0.6 | 1.3 |
| Return on investment | |||
| Return on capital employed, % | 0.9 | 4.0 | 5.5 |
| Return on equity, % | –2.0 | 0.6 | 1.8 |
| Capital structure | |||
| Capital employed | 517.3 | 556.9 | 518.7 |
| Equity | 287.5 | 279.0 | 292.9 |
| Interest-bearing net debt | 107.0 | 86.5 | 105.7 |
| Net debt/equity ratio, % | 37.2 | 31.0 | 36.1 |
| EBITDA/Net financial items, rolling 12 months | 3.8 | 2.4 | 3.2 |
| Equity/assets ratio, % | 28.2 | 26.0 | 28.1 |
| Employees | |||
| Average number of employees | 828 | 915 | 895 |
| Net sales per employee | 1.0 | 1.0 | 1.0 |
| Data per share | January– March 2015 |
January– March 2014 |
Full year 2014 |
|---|---|---|---|
| Number of shares at the end of the period | 8,218,611 | 8,218,611 | 8,218,611 |
| Average number of shares | 8,218,611 | 8,218,611 | 8,218,611 |
| Earnings per share before and after dilution | |||
| Profit/loss from continuing operations | –0.69 | 0.20 | 0.63 |
| Profit/loss from operations held for sale | – | –1.15 | –2.09 |
| Profit/loss for the period | –0.69 | –0.95 | –1.46 |
| Equity per share, SEK, total operations | 34.98 | 33.95 | 35.64 |
Net sales per geographical area
| Amounts in SEK million | January– | January– | Full year |
|---|---|---|---|
| March 2015 | March 2014 | 2014 | |
| Sweden | 47.2 | 35.5 | 182.9 |
| Europe, excluding Sweden | 122.5 | 160.5 | 616.0 |
| North America – from continuing operations | 29.3 | 14.7 | 84.9 |
| Asia | 2.1 | 9.0 | 20.3 |
| Other | – | – | 5.6 |
| Total | 201.1 | 219.7 | 909.6 |
Quarterly review
| Amounts in SEK million | 2013 | 2014 | 2015 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | ||
| Net sales | 250.9 | 266.5 | 216.9 | 266.9 | 219.7 | 217.0 | 225.1 | 247.8 | 201.1 | |
| Operating expenses | –243.6 | –253.4 | –211.2 | –277.0 | –214.4 | –216.9 | –212.2 | –235.6 | –206.1 | |
| Operating profit | 7.3 | 13.1 | 5.7 | –10.1 | 5.3 | 0.1 | 12.9 | 12.2 | –5.0 | |
| Financial items, net | –4.9 | –9.5 | –0.3 | –4.1 | –6.6 | –4.1 | –4.9 | –3.3 | –1.9 | |
| Profit/loss after financial items | 2.4 | 3.6 | 5.4 | –14.2 | –1.3 | –4.0 | 8.0 | 8.9 | –6.9 |
Financial data per segment
Amounts in SEK million
| Amounts in SEK million | Fuel and | |||||
|---|---|---|---|---|---|---|
| Waste | Consultancy | Materials | ||||
| January–March 2015 | Treatment | Services | Technology | Other | Elimination | Group |
| External sales revenue | 44.3 | 94.4 | 55.4 | 7.0 | – | 201.1 |
| Revenue from segment | 0.4 | 0.5 | – | 2.7 | –3.6 | 0.0 |
| Operating profit | –3.2 | 2.6 | 3.3 | –7.7 | – | –5.0 |
| Assets | 318.4 | 334.2 | 201.0 | 418.8 | –251.3 | 1,021.1 |
| Liabilities | 248.3 | 272.7 | 109.8 | 354.1 | –251.3 | 733.6 |
| Investments | 3.7 | 0.4 | 1.7 | 0.6 | – | 6.4 |
| Depreciation/amortization | 3.6 | 0.6 | 2.1 | 1.8 | – | 8.1 |
| Average number of employees | 119 | 496 | 121 | 92 | – | 828 |
| January–March 2014 | Waste Treatment |
Consultancy Services |
Fuel and Materials Technology |
Other | Elimination | Group |
|---|---|---|---|---|---|---|
| External sales revenue | 66.8 | 94.5 | 51.6 | 6.8 | – | 219.7 |
| Revenue from segment | – | 0.9 | 0.1 | 4.7 | –5.7 | 0.0 |
| Operating profit | 9.1 | 9.1 | –0.8 | –12.1 | – | 5.3 |
| Assets | 356.3 | 330.3 | 177.7 | 463.2 | –256.0 | 1,071.5 |
| Liabilities | 281.8 | 266.7 | 137.3 | 362.7 | –256.0 | 792.5 |
| Investments | 2.0 | 0.1 | 2.0 | 0.3 | – | 4.4 |
| Depreciation/amortization | 4.6 | 0.6 | 2.1 | 1.2 | – | 8.5 |
| Average number of employees * | 144 | 541 | 125 | 105 | – | 915 |
| Waste Treatment |
Consultancy Services |
Fuel and Materials Technology |
Other | Elimination | Group |
|---|---|---|---|---|---|
| 240.3 | 397.7 | 239.5 | 32.1 | – | 909.6 |
| 0.8 | 2.0 | 0.0 | 14.7 | –17.5 | 0.0 |
| 2.9 | 36.8 | 31.4 | –40.6 | – | 30.5 |
| 320.8 | 359.5 | 227.4 | 414.6 | –281.0 | 1,041.3 |
| 255.3 | 305.3 | 108.5 | 360.5 | –281.0 | 748.4 |
| 21.7 | 0.3 | 5.3 | 5.4 | – | 32.8 |
| 16.0 | 2.2 | 8.5 | 7.2 | – | 33.5 |
| 148 | 527 | 120 | 100 | – | 895 |
* Reclassification of 26 employees between the segments for the full year 2014 (33 in January–March 2014) was made for comparability with 2015.
| Parent company income statement Amounts in SEK million |
January– March 2015 |
January– March 2014 |
Full year 2014 |
|---|---|---|---|
| Net sales | 3.0 | 3.5 | 11.9 |
| Cost of services sold | –0.3 | –0.6 | –2.2 |
| Gross profit | 2.7 | 2.9 | 9.7 |
| Other operating income and costs | –11.6 | –14.9 | –53.6 |
| Operating profit | –8.9 | –12.0 | –43.9 |
| Result from participations in Group companies | – | – | 42.8 |
| Net financial items | –0.3 | –3.3 | –7.4 |
| Profit/loss before tax | –9.3 | –15.3 | –8.5 |
| Income tax | 2.0 | 3.2 | 2.4 |
| NET PROFIT/LOSS FOR THE PERIOD | –7.2 | –12.1 | –6.1 |
Parent company balance sheet
| Amounts in SEK million | March | March | December |
|---|---|---|---|
| 2015 | 2014 | 2014 | |
| ASSETS | |||
| Property, plant and equipment | 0.0 | 0.1 | 0.0 |
| Financial non-current assets | 627.1 | 567.0 | 612.1 |
| Total non-current assets | 627.1 | 567.1 | 612.1 |
| Current assets | 12.3 | 66.2 | 53.3 |
| Cash and cash equivalents | 37.4 | 110.9 | 35.6 |
| Total current assets | 49.7 | 177.1 | 88.9 |
| TOTAL ASSETS | 676.8 | 744.2 | 701.0 |
| EQUITY AND LIABILITIES | |||
| Equity | 234.1 | 277.1 | 284.1 |
| Non-current liabilities | 272.2 | 310.5 | 282.6 |
| Current liabilities | 170.5 | 156.5 | 134.3 |
| Total liabilities | 442.7 | 467.1 | 416.9 |
| TOTAL EQUITY AND LIABILITIES | 676.8 | 744.2 | 701.0 |
| Major shareholders, March 31, 2015 | ||
|---|---|---|
| Number of shares | Share, % | |
| The Karinen Family | 1,769,552 | 21.5 |
| Briban Invest AB | 1,285,492 | 15.6 |
| Avanza Pensionsförsäkring AB | 465,981 | 5.7 |
| Credit Agricole Suisse SA | 346,098 | 4.2 |
| Invus Investment AB | 276,594 | 3.4 |
| Malte Edenius | 240,000 | 2.9 |
| Eikos AB | 225,000 | 2.7 |
| Nordnet Pensionsförsäkring AB | 209,836 | 2.6 |
| Leif Lundin | 181,850 | 2.2 |
| Unionen | 152,709 | 1.9 |
| Total ten largest shareholders – holdings | 5,153,112 | 62.7 |
| Other shareholders | 3,065,499 | 37.3 |
| Total | 8,218,611 | 100.0 |
The Studsvik share
In the first quarter the share price varied between a high of SEK 34.70 on February 12, and a low of SEK 30.80 on February 20, 2015. The opening price was SEK 32.80 at the beginning of the year and the closing price on March 31 was SEK 31.90. In the first quarter 456 thousand shares were traded.
Facts about Studsvik
Studsvik offers a range of advanced technical services to the international nuclear power industry in such areas as waste treatment, consultancy services and fuel and materials technology. The company has over 65 years' experience of nuclear technology and radiological services. Studsvik has 800 employees in 7 countries and the company's shares are listed on the Nasdaq Stockholm.
This report is a translation of the Swedish statutory report. In the event of any discrepancies between this document and the Swedish original, the latter shall govern. The content of this interim report may not, in whole or part, be reproduced or stored in a machine-readable medium without the previous permission of Studsvik AB (publ).
Production/Graphic design: Studsvik AB Photo: Studsvik
Studsvik AB
SE-611 82 Nyköping, SWEDEN Telephone +46 155 22 10 00 Fax +46 155 26 30 70 E-mail [email protected] www.studsvik.se