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Source: Aspocomp Group Oyj

Aspocomp's Half-Year Financial Report 2018

Aspocomp Group Plc, Half-Year Financial Report, August 9, 2018 at 9:00 a.m.
 
Key figures 4-6/2018 in brief

- Net sales: EUR 7.7 million (EUR 5.7 million)
- EBITDA: EUR 1.1 million (0.4)
- Operating result: EUR 0.8 million (0.1)
- Earnings per share: EUR 0.12 (0.01)

Key figures 1-6/2018 in brief

- Net sales: EUR 13.8 million (EUR 11.6 million)
- EBITDA: EUR 1.6 million (0.9)
- Operating result: EUR 1.1 million (0.3)
- Earnings per share: EUR 0.15 (0.05)
- Operational cash flow: EUR 0.7 million (1.1)
- Order book at the end of period: EUR 3.1 million (2.4)

In 2018, net sales are expected to grow over 10 percent and the operating result to double compared with 2017 (Company Announcement, July 30, 2018). In 2017, net sales amounted to EUR 23.9 million and the operating result to EUR 0.8 million.


CEO’S REVIEW

“Sales growth picked up in the second quarter. Net sales amounted to EUR 7.7 million, a year-on-year increase of 35 percent. Net sales in the first half of the year increased by 19 percent compared to last year’s reference period, amounting to EUR 13.8 million.

Sales grew in almost all customer segments, with the exception of the security and defense segments. The largest growth in the first half of the year was generated by the automotive industry, but the second-quarter pick-up was boosted particularly by the increased demand for next-generation 5G telecommunications networks. The industrial electronics and semiconductor testing segments continued to enjoy good steady growth. The order book strengthened clearly and amounted to EUR 3.1 million.

The operating result for April-June grew to EUR 0.8 million. The operating profit margin rose to over 10 percent. The positive development of the operating result was mainly due to growth in net sales and the focus on more demanding PCBs in the product mix. Cumulatively, the operating result for the first half of the year amounted to EUR 1.1 million, representing nearly 8 percent of net sales. Cash flow from operations amounted to EUR 0.7 million, and it weakened by EUR 0.4 million compared to last year’s reference period because growth in net sales tied up more working capital.

The investment program announced in December 2017 is proceeding on schedule and the first equipment is already in production use. The program aims to improve the Oulu plant’s technological capabilities and capacity in order to bolster the company’s position as a partner to the world’s leading technology companies.”

NET SALES AND EARNINGS

April-June 2018
Second-quarter net sales amounted to EUR 7.7 million (EUR 5.7 million), a year-on-year increase of 35 percent. Sales developed in the second quarter in almost all customer segments and the pick-up was boosted by the increased demand for next-generation 5G telecommunications networks in particular.

The five largest customers accounted for 56 percent of net sales (51%). In geographical terms, 96 percent of net sales were generated in Europe (96%), 2 percent in Asia (1%) and 2 percent in North America (3%).

The operating result for the second quarter amounted to EUR 0.8 million (EUR 0.1 million). The positive development of the operating result was mainly due to growth in net sales and the focus on more demanding PCBs. Second-quarter operating result was 10.2 percent of net sales.

Net financial expenses amounted to EUR 0.0 million (EUR 0.0 million). Earnings per share were EUR 0.12 (EUR 0.01).

The order book at the end of the review period was EUR 3.1 million (EUR 2.4 million), representing a year-on-year increase of about EUR 0.6 million.

First half of 2018
First-half net sales amounted to EUR 13.8 million (EUR 11.6 million), a year-on-year increase of 19.3 percent. The largest growth in net sales in the first half of the year was generated by the automotive industry and in the second-quarter the pick-up was boosted by the increased demand for next-generation 5G telecommunications networks.

The five largest customers accounted for 51 percent of net sales (51%). In geographical terms, 96 percent of net sales were generated in Europe (97%), 2 percent in Asia (1%) and 2 percent in North America (2%).

First-half operating result amounted to EUR 1.1 million (EUR 0.3 million). The positive development of the operating result was mainly due to growth in net sales and the focus on more demanding PCBs in the product mix.

Net financial expenses amounted to EUR 0.0 million (EUR 0.0 million). Earnings per share were EUR 0.15 (EUR 0.05).

THE GROUP’S KEY FIGURES

  4-6/18 4-6/17 Change 1-6/18 1-6/17 Change
Net sales, M€ 7.7 5.7 35 % 13.8 11.6 19.3 %
EBITDA, M€ 1.1 0.4 0.7 M€ 1.6 0.9 0.7 M€
Operating result, M€ 0.8 0.1 0.7 M€ 1.1 0.3 0.7 M€
  % of net sales 10% 2% 8.5 ppts 8% 3% 4.8 ppts
Pre-tax- profit/loss, M€ 0.8 0.1 0.7 M€ 1.0 0.3 0.7 M€
  % of net sales 10% 1% 9 ppts 7% 3% 5 ppts
Profit/loss for the period, M€ 0.8 0.1 0.7 M€ 1.0 0.3 0.7 M€
  % of net sales 10% 1% 9 ppts 7% 3% 5 ppts
Earnings per share, € 0.12 0.01 0.11 0.15 0.05 0.10
Investments, M€ 0.6 0.2 0.4 M€ 2.0 0.3 1.6 M€
  % of net sales 7% 3% 3.8 ppts 14% 3% 11.4 ppts
Cash, end of the period 1.6 0.5 1.1 M€ 1.6 0.5 1.1 M€
Equity / share, € 1.90 1.68 0.22 1.90 1.68 0.22
Equity ratio, % 58% 70% -12 ppts 58% 70% -12 ppts
Gearing, % 22% 4% 18 ppts 22% 4% 18 ppts
Personnel, end of the period 116 113 3 persons 116 113 3 persons
                 
* The total may deviate from the sum totals due to rounding up and down.  

OUTLOOK FOR THE FUTURE

In 2018, net sales are expected to grow over 10 percent and the operating result to double compared with 2017 (Company Announcement, July 30, 2018). In 2017, net sales amounted to EUR 23.9 million and the operating result to EUR 0.8 million.

The cornerstones of Aspocomp's growth include, for instance, next-generation 5G telecommunications and government networks, the e-revolution in the automotive industry, the development of testing requirements for semiconductor components as well as the spread of artificial intelligence and mechanical applications in the industry.

A major share of Aspocomp’s net sales is generated by quick-turn deliveries and R&D series, and thus the company’s order book is short. The company's aim is to systematically expand its services to cover the PCB needs of customers over the entire life cycle and thereby balance out variations in demand and the order book.

PUBLICATION OF FINANCIAL RELEASES

This stock exchange release is a summary of the Aspocomp Group’s half-year financial report 2018 and includes the most relevant information of the report. The complete report is attached to this release as a pdf file and is also available on the company’s website at www.aspocomp.com.

ASPOCOMP GROUP PLC
Board of Directors

For further information, please contact Mikko Montonen, President and CEO,
tel. +358 40 5011 262, mikko.montonen(at)aspocomp.com.

Aspocomp – a service company specializing in PCB technologies

A printed circuit board (PCB) is used for electrical interconnection and as a component assembly platform in electronic devices. Aspocomp provides PCB technology design, testing and logistics services over the entire lifecycle of a product. The company’s own production and extensive international partner network guarantee cost-effectiveness and reliable deliveries.

Aspocomp’s customers are companies that design and manufacture telecommunication systems and equipment, automotive and industrial electronics, and systems for testing semiconductor components for security technology. The company has customers around the world and most of its net sales are generated by exports.

Aspocomp is headquartered in Espoo and its plant is in Oulu, one of Finland’s major technology hubs.

www.aspocomp.com

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