AS VIISNURK FINANCIAL REPORT 16.04.2006
Financial results, 3 months 2006
The results of Viisnurk AS in the 1st quarter of 2006 were significantly
influenced by an extremely cold weather in January and February that
brought along higher heating costs and work stoppages in the Building
Materials Division (around 15 % of the working time of the main production
line was lost). Except for the impact caused by weather conditions, the
main activities of Viisnurk AS in the 1st quarter have proceeded as
planned. Regardless of the results of the 1st quarter, the Management of
Viisnurk see no need for changing the planned profit for 2006 which was a
consolidated profit of 16-18 mil. kroons (1-1,15 mil. euros). In terms of
profit, based on the initial results of April and May, the enterprise is
proceeding within the budget.
The net sales of Viisnurk AS for the 1st quarter of 2006 were 53 mil.
kroons (3.4 mil. euros) and the net profit 1.9 mil. kroons (0.12 mil.
euros). In 2005, within the same period the turnover of the enterprise totalled
61.9 mil. kroons (4 mil. euros) and the profit 3.9 mil. kroons (0.25 mil.
euros), whereas the profit of 2005 included among other things the
exceptional items - the sales of real estate investments in the amount of
1.4 mil. kroons (0.09 mil. euros).
As of the end of March the total assets of Viisnurk AS amounted to 157.6
mil. kroons (10.1 mil. euros), the liabilities of the enterprise made up
57 % of it.
Divisional review:
(th EEK) Net sales Profit
2006 3k 2005 3k 2006 3k 2005 3k
Furniture Division 32.017 32.634 2.236 2.413
Building Materials 21.026 29.275 1.658 5.250
Division
Terminated business (881)
activities
TOTAL 53.043 61.909 3.894 6.782
Unallocated expenses 1.513 1.623
OPERATING PROFIT 2.381 5.159
Net financial costs 483 1.172
NET PROFIT 1.898 3.987
(th EUR) Net sales Profit
2006 3k 2005 3k 2006 3k 2005 3k
Furniture Division 2.046 2.086 143 154
Building Materials 1.344 1.871 106 336
Division
Terminated business ( 56)
activities
TOTAL 3.390 3.957 249 434
Unallocated expenses (97) (104)
OPERATING PROFIT 152 330
Net financial costs (31) (75)
NET PROFIT 121 255
Furniture Division
The three-month net sales of the Furniture Division of Viisnurk AS were 32
mil. kroons (2 mil. euros) and the profit 2.2 mil. kroons (0.14 mil.
euros). Compared to the same period last year, the turnover of the
division has remained the same but the profit has significantly increased
because the profit of 2005 (2.4 mil. kroons / 0.15 mil. euros) included
the above mentioned exceptional items in the amount of 1.4 mil. kroons
(0.09 mil. euros).
The results of the Furniture Division for the 1st quarter were as
estimated. Sales in the enterprise's basic target markets in Finland and
Russia have proceeded according to the plans. It is especially positive
that while in the 1st quarter of the past year the division sold furniture
to its former largest subcontractor IKEA for 7.1 mil. kroons (0.45 mil.
euros), by today, after finishing the cooperation with IKEA in the end of
last year, they have been able to replace the total sales to other
customers. At the same time the profitability of the division has improved
in an environment of increased expenditure. Retail sale of furniture in
the domestic market shows a rising tendency and, according to the
strategy, the division is preparing itself for the expansion of retail
business to nearest markets.
Building Materials Division
The Building Materials Division earned a profit of 1.7 mil. kroons (0.1
mil. euros) at the net sales of 21 mil. kroons (1.3 mil. euros) in three
months. Last year, the turnover of the division totalled 29.3 mil. kroons
(1.9 mil. euros) and the profit 5.2 mil. kroons (0.3 mil. euros) within
the same period.
In the 1st quarter the activity of the division was significantly
influenced by extraordinary weather conditions which, on one hand
decreased the general demand for the division's production and on the
other hand seriously disturbed the division's supply with heat energy. The
above mentioned problem repeatedly stopped the work of the main production
line with uninterrupted cycle – in total more than 15 % of the possible
working time was lost through the stoppage time. In addition, due to some
stiffening in competition in the second half of last year the decision was
made to begin the independent sales of the production of the main
production line (mainly the wind protection boards used in general
construction) in the largest target market in Finland under our own
trademark. The decision that is aimed at achieving long-term success in
the market decreased the sales in short term perspectives in the 1st
quarter of 2006 while the contracts in the market of building materials
are mainly long-term. The sales volumes and efficiency of Isotex interior
finishing boards achieved the planned levels. The output, sales and
profitability of the division have rapidly improved since the beginning of
the 2nd quarter.
INCOME STATEMENT
Consolidated, unaudited th EEK th EEK th EUR th EUR
3 months 3 months 3 months 3 months
2006 2005 2006 2005
REVENUE 53.043 61.909 3.390 3.957
Cost of sales (44.314) (50.795) (2.832) (3.247)
Gross profit 8.729 11.114 558 710
Distribution expenses (4.837) (5.463) (309) (349)
Administrative expenses (1.513) (1.623) (97) (104)
Other operating income 73 1.466 5 94
Other operating expenses (71) (335) (5) (21)
Operating profit 2.381 5.159 152 330
Financial income and (483) (1.172) (31) (75)
financial expenses
NET PROFIT FOR THE 1.898 3.987 121 255
PERIOD
Basic earnings per share 0,42 0,89 0,03 0,06
Diluted earnings per 0,42 0,89 0,03 0,06
share
BALANCE SHEET
Consolidated, unaudited th EEK th EEK th EUR th EUR
31.3.2006 31.12.2005 31.3.2006 31.12.2005
Cash and cash 7.285 5.552 466 355
equivalents
Short-term financial 0 6.785 0 434
assets
Trade receivables 23.432 21.938 1.498 1.402
Other receivables 134 522 8 33
Prepayments 3.515 3.290 225 210
Inventories 48.914 42.160 3.126 2.695
TOTAL CURRENT ASSETS 83.280 80.247 5.323 5.129
Long-term financial 1 1 0 0
assets
Investment property 15.521 15.521 992 992
Property, pland and 57.203 58.235 3.656 3.722
equipment
Intangible assets 1.587 1.818 101 116
TOTAL NON-CURRENT ASSETS 74.312 75.575 4.749 4.830
TOTAL ASSETS 157.592 155.822 10.072 9.959
Loans and borrowings 6.780 8.909 433 569
Customer advances 157 492 10 32
Trade payables 22.823 23.649 1.459 1.512
Tax liabilities 2.954 2.980 189 191
Accrued expenses 8.530 5.232 545 334
Provisions 320 430 21 27
TOTAL CURRENT 41.564 41.692 2.657 2.665
LIABILITIES
Provisions 430 430 27 27
Loans and borrowings 47.920 47.920 3.063 3.063
TOTAL NON-CURRENT 48.350 48.350 3.090 3.090
LIABILITIES
TOTAL LIABILITIES 89.914 90.042 5.747 5.755
Share capital at par 44.991 44.991 2.875 2.875
value
Share premium 11.332 11.332 724 724
Statutory capital 4.499 4.499 288 288
reserve
Retained earnings 4.958 (4.817) 317 (308)
Profit for the period 1.898 9.775 121 625
TOTAL EQUITY 67.678 65.780 4.325 4.204
TOTAL LIABILITIES AND 157.592 155.822 10.072 9.959
EQUITY
Andrus Aljas
Member of Management Board
+372 447 8355