WULFF GROUP PLC’S ANNUAL ACCOUNTS FOR JANUARY 1 – DECEMBER 31, 2014

Wulff Group Plc improved its results from the previous year; however, the market situation remained difficult 

This is a summary of Wulff Group Plc’s annual accounts release for financial year January 1 – December 31, 2014. 

Wulff Group is adopting a new disclosure procedure in accordance with Regulations and Guidelines 7/2013 (Disclosure obligation on issuers) of the Financial Supervisory Authority and is publishing the annual accounts for January-December 2014 as an attachment to this stock exchange release. Wulff Group’s annual accounts for January-December 2014 is a PDF file attachment to this stock exchange release and is available on the company’s website at the address http://www.wulff.fi/en/wulff+group+plc/home/.

KEY POINTS JANUARY – DECEMBER 2014

  • In January-December 2014, net sales totalled EUR 74.3 million (EUR 83.5 million) and EUR 20.5 million (EUR 22.6 million) in the fourth quarter. Net sales decreased by 11.1 percentages in January-December and 9.4 percentages in the fourth quarter.
  • In January-December, EBITDA was EUR 2.1 million (EUR 0.0 million) being 2.8 percentages (0.0 %) of net sales. EBITDA included non-recurring income of EUR 1.4 million recognised in the fourth quarter. In the fourth quarter, EBITDA was EUR 2.1 million (EUR 0.33 million) being 10.1 percentages (1.5 %) of net sales.
  • In January-December, the operating result (EBIT) amounted to EUR 1.1 (EUR -2.7 million including a non-recurring goodwill impairment of EUR 1.6 million). In the fourth quarter, the operating result (EBIT) was EUR 1.8 million including non-recurring income of EUR 1.4 million (EUR -0.9 million including a non-recurring goodwill impairment of EUR 1.0 million).
  • Earnings per share (EPS) was EUR 0.11 (EUR -0.59) in January-December and EUR 0.22 (EUR -0.32) in the fourth quarter.
  • The Board of Directors propose to the Annual General Meeting on April 9, 2015 not to pay dividend for the financial year 2014.

WULFF GROUP’S CEO HEIKKI VIENOLA

Wulff Group’s CEO Heikki Vienola:

“Serving our customers in the best possible way has been the most important value in our operations at all times. This value has motivated our operations this year, just like in all of our years of operations. We here at Wulff today recognize having done a good job in the same way as our predecessors did 125 years ago – by appreciating our existing, continuous customer relationships and the new customerships we win. Our recipe for improving our result from the previous year is clear. We have continued our cost saving measures, invested in sales and its development, and listened to our customers. As our customers adapt their operations to the challenging economic situation, it also means that we have to improve our services even more vigorously. Through our different sales divisions, the Wulff Group is a flexible and efficient partner to businesses of all sizes. In 2015, we will focus on still improving our result positively. The decrease in the 2014 net sales, in comparison to the previous year, was affected by the decline in volumes as contract customers reduced their purchases, and the concentration of the operations of the Groups subsidiaries to profitable and promising business activities.”

GROUP’S NET SALES AND RESULT PERFORMANCE

In January-December 2014 net sales totalled EUR 74.3 million (EUR 83.5 million) and EUR 20.5 million (22.6 million) in the fourth quarter. In January-December EBITDA was EUR 2.1 million (EUR 0.0 million) being 2.8 percentages (0.0 %) of net sales. In the fourth quarter, EBITDA was EUR 2.1 million (EUR 0.33 million) being 10.1 percentages (1.5 %) of net sales. The fourth quarter 2014 EBITDA included a sales profit of EUR 1.3 million relating to the property sale of November 2014 and a sales profit of EUR 0.1 million relating to the sale of a subsidiary in December 2014. 

In January-December the operating profit (EBIT) amounted to EUR 1.1 (EUR -2.7 million). In the fourth quarter the operating profit (EBIT) was EUR 1.8 million (EUR -0.9 million). The previous year’s third quarter was impacted by a non-recurring goodwill impairment of EUR 0.6 million in the Groups promotional gifts business. The previous year’s fourth quarter was impacted by a non-recurring goodwill impairment of EUR 1.0 million in the Finnish office supplies business. Typically in the industry and in the Group, the annual profit is made in the last quarter of the year.

In January-December 2014 employee benefit expenses amounted to EUR 15.9 million (EUR 17.8 million) and EUR 4.1 million (EUR 4.8 million) in the fourth quarter. Other operating expenses amounted to EUR 9.4 million (EUR 10.6 million) in January-December and EUR 2.4 million (EUR 2.6 million) in the fourth quarter. Employee benefit and other operating expenses were affected by the cost-saving program performed at the end of 2013. The cost-saving program was continued during the financial year of 2014. To improve its profitability, The Wulff Group continues to examine its cost structure as a part of ongoing reforms.

In January-December the financial income and expenses totalled (net) EUR -0.6 million (EUR -0.7 million) including interest expenses of EUR 0.2 million (EUR 0.2 million) and mainly currency-related other financial items (net) EUR -0.3 million (EUR -0.3 million). In the fourth quarter the financial income and expenses totalled (net) EUR -0.3 million (EUR -0.3 million).

In January-December the result before taxes was EUR 0.5 million (EUR -3.4 million) and EUR 1.5 million (EUR -1.2 million) in the fourth quarter. In January-December the net profit after taxes was EUR 0.6 million (EUR -3.9 million) and EUR 1.5 million (EUR 2.1 million) in the fourth quarter. Earnings per share (EPS) was EUR 0.11 (EUR -0.59) in January-December and EUR 0.22 (EUR -0.32) in the fourth quarter.

  IV IV I-IV I-IV
EUR 1000 2014 2013 2014 2013
Net sales 20 471 22 585 74 262 83 543
Change in net sales, % -9,4 % -10,0 % -11,1 % -7,4 %
EBITDA 2 067 328 2 096 3
EBITDA margin, % 10,1 % 1,5 % 2,8 % 0,0 %
Operating profit/loss 1 831 -930 1 109 -2 721
Operating profit/loss margin, % 8,9 % -4,1 % 1,5 % -3,3 %
Profit/Loss before taxes 1 517 -1 242 478 -3 395
Profit/Loss before taxes margin, % 7,4 % -5,5 % 0,6 % -4,1 %
Net profit/loss for the period attributable to equity holders of the parent company 1 420 -2 113 696 -3 874
Net profit/loss for the period, % 6,9 % -9,4 % 0,9 % -4,6 %
Earnings per share, EUR (diluted = non-diluted) 0,22 -0,32 0,11 -0,59
Return on equity (ROE), % 12,5 % -15,07 % 4,4 % -25,6 %
Return on investment (ROI), % 7,5 % -5,5 % 3,5 % -13,9 %
Equity-to-assets ratio at the end of period, % 39,5 % 38,3 % 39,5 % 38,3 %
Debt-to-equity ratio at the end of period 36,9 % 45,4 % 36,9 % 45,4 %
Equity per share at the end of period, EUR * 1,95 1,80 1,95 1,80
Net cash flow from operating activities 2 483 3 357 -205 567
Investments in non-current assets 121 83 488 778
Investments in non-current assets, % of net sales 0,6 % 0,4 % 0,7 % 0,9 %
Treasury shares held by the Group at the end of period 79 000 79 000 79 000 79 000
Treasury shares, % of total share capital and votes 1,2 % 1,2 % 1,2 % 1,2 %
Number of total issued shares at the end of period 6 607 628 6 607 628 6 607 628 6 607 628
Personnel on average during the period 262 303 268 311
Personnel at the end of period 240 295 240 295

RISKS AND UNCERTAINTIES IN THE NEAR FUTURE

The demand for office supplies is still affected by the organizations’ personnel lay-offs and cost-saving initiatives made during the economic downturn. The ongoing economic uncertainties impact especially the demand for business and promotional gifts. During uncertain economic periods, corporations may also minimize attending fairs. As the ongoing economic uncertainty continues, the cost saving measures will have an effect on the ordering behaviour of corporate customers. 

Half of the Group’s net sales come from other than euro-currency countries. Fluctuation of the currencies affect the Group’s net result, however the effect of the fluctuation is expected to be moderate.

EVENTS AFTER THE FINANCIAL YEAR

The Group has not had such events after the financial year end which would have a material impact on 2014 financial statements.

BOARD OF DIRECTORS’ PROPOSAL FOR THE ANNUAL RESULT      

The Group’s parent company Wulff Group Plc’s distributable funds totalled EUR 2.6 million. The Group’s net result attributable to the parent company shareholders was EUR 0.7 million i.e. EUR 0.11 per share (EUR -0.59 per share). The Board of Directors proposes to the Annual General Meeting being held on April 9th, 2015, that no dividend will be distributed for the financial year 2014 and the financial year’s loss will be transferred in the retained earnings in the shareholders’ equity.

MARKET SITUATION AND FUTURE OUTLOOK

Wulff is the most significant Nordic player in its field. Wulff’s mission is to help its corporate customers to succeed in their own business by providing them with leading-edge products and services in a way best suitable to them. The markets have been consolidating in the past few years and the Nordic markets are expected to consolidate in the future as well. Wulff is prepared to carry out new strategic acquisitions, and as a listed company Wulff has a good opportunity to be a more active player than its competitors. 

Wulff estimates the office supplies’ demand to increase as the economy starts to recover by the end of 2015 at the earliest. Therefore it is important to continue to implement the cost structure and improve efficiency of the operations. Wulff’s goal is to further improve profitability of its businesses. Wulff estimates the 2015 operating profit to be positive. Typically in the industry, the annual profit and cash flow are made in the last quarter of the year.

WULFF GROUP PLC’S FINANCIAL REPORTING AND ANNUAL GENERAL MEETING 2015  

Wulff Group Plc will release the following financial reports in 2015:

Statutory Financial Statements 2014 Week 12/2015
Interim Report, January-March 2015 Thursday May 7, 2015
Interim Report, January-June 2015 Thursday August 6, 2015
Interim Report, January-September 2015 Thursday November 5, 2015

Wulff Group Plc’s Annual General Meeting will be held on Thursday April 9, 2015. A separate notice to the Annual General Meeting will be published prior to the meeting.

In Vantaa on February 4, 2015

WULFF GROUP PLC

BOARD OF DIRECTORS

Further information:

CEO Heikki Vienola

tel. +358 9 5259 0050 or mobile: +358 50 65 110

e-mail: heikki.vienola@wulff.fi

DISTRIBUTION

NASDAQ OMX Helsinki Oy

Key media

www.wulff-group.com