Bifogade filer
Cramo continuing operations tables
Kurs & Likviditet
Beskrivning
| Land | Finland |
|---|---|
| Lista | Mid Cap Helsinki |
| Sektor | Tjänster |
| Industri | Industri |
Stock Exchange Release 4 June 2019 at 09:00 am EET
Cramo publishes illustrative financial information for its continuing operations for 2018 and first quarter 2019
On 18 February 2019, Cramo announced that the Board of Directors has approved a demerger plan concerning the spin-off of Modular Space business into a new listed company. Cramo will demerge so that all the assets, debts and liabilities belonging to Cramo’s Modular Space business are transferred to a new independent company named Adapteo Plc (“Adapteo”) to be established in the demerger (“Demerger”). In the Demerger, Cramo’s Equipment Rental business will remain in the current company, which continues to operate under the Cramo name.
The Demerger will become effective when Cramo’s Extraordinary General Meeting on 17 June 2019 approves the Demerger, and its implementation is recorded in the Finnish Trade Register. The planned registration date is 30 June 2019, after which Adapteo shares will be admitted for public trading on the main market of Nasdaq Stockholm.
The prospectus relating to Adapteo is published on 4 June 2019 and is available on Cramo’s website (www.cramogroup.com).
Basis of preparation of unaudited illustrative financial information
The unaudited illustrative financial information is presented to illustrate the results of operations and financial position for Cramo’s continuing operations had the Demerger taken place on 1 January 2018. The information is based on financial data derived from Cramo’s audited consolidated financial statements as of and for the year ended 31 December 2018, and from Cramo’s unaudited consolidated business review as of and for the three months period ended 31 March 2019.
Cramo adopted new IFRS 16 Leases standard on 1 January 2019 using the non-retrospective approach where comparative periods were not restated. This unaudited illustrative financial information takes also into account the illustrative non-IFRS impacts on IFRS 16 standard for the year ended 31 December 2018 consistently as previously published in the Stock Exchange Release dated on 29 March 2019, which can be found on Cramo’s website (www.cramogroup.com).
This information is presented for illustrative purposes only. Because of its nature, it addresses a hypothetical situation and does not represent the actual results of operations or the financial position of Cramo had the Demerger been completed on 1 January 2018; nor is it intended to project the results of operations or the financial position of Cramo as of any future date.
Management believes, that the illustrative information presented in this release provides a relevant basis to present the result of operations and financial position of the continuing Cramo Group. The adjustments made in preparing the illustrative information are based on available information and assumptions, and there is no certainty that these assumptions would prove to be correct.
Assumptions applied in preparation of the illustrative financial information
The following significant assumptions and adjustments to historical information have been made in the preparation of the illustrative financial information for Cramo’s continuing operations:
- All the income and expenses, as well as assets and liabilities relating to the Modular Space business to be spun off, have been excluded from Cramo’s reported consolidated financial information.
- In connection with the Demerger, part of Cramo’s existing borrowings will transfer to Adapteo. The borrowings and related financial income and expenses attributable to Adapteo in accordance with the demerger plan, have been adjusted from the balance sheet and income statements of Cramo’s continuing operations for all periods presented using the principles as applied in the demerger plan. Cramo has received consent and waivers from the noteholders and loanholders and its existing financing agreements will continue after the Demerger, and related finance costs are not expected to materially change after the Demerger.
- The total amount of equity adjusted from the historical Cramo’s equity balance in the illustrative consolidated balance sheets represents the amount of net assets attributable to the Adapteo business. The adjustments made to equity reflect Adapteo Group’s contemplated equity structure and the decrease in Cramo’s share capital in accordance with the demerger plan.
- The illustrative non-IFRS information on IFRS 16 impacts on 2018 financials for comparison purposes is based on reported note disclosures on operational leases, i.e. lease contracts previously treated as off-balance sheet commitments. There are differences between the definitions of items formerly reported as off-balance sheet commitments and IFRS 16 lease liabilities. The main material differences identified by Cramo relate to the discounting of lease liabilities compared to the nominal amounts of commitments, definition of the lease term especially regarding the treatment of open-end contracts and extension options, mostly outside commitments, and utilising the two IFRS 16 exemptions mostly recognised in commitments. The illustrative non-IFRS information on IFRS 16 impacts based on the reported note disclosures is adjusted to reflect the differences in principles between IFRS 16 and reported financial notes.
The amount of transferring borrowings is based on the assumption of the total amount of borrowings to be transferred in the Demerger. The final amount of assets and liabilities, including borrowings transferred to Adapteo in the Demerger may differ from those presented in this illustrative financial information as such balances will be determined based on the carrying values of the transferring assets and liabilities on the effective date of the Demerger. This could result in a significant variation to the results of operations and financial position of Cramo presented in this unaudited illustrative financial information.
Cramo’s Equipment Rental segments have been adjusted to reflect Cramo’s continuing operations after the Demerger. Cramo’s operations in Estonia and Lithuania remain entirely within Cramo after the Demerger. Earlier part of these operations have been reported as part of Cramo’s Modular Space segment.
Accounting treatment of the demerger
The Demerger will be accounted for as a disposal in accordance with IFRIC 17, Distributions of non-cash assets to owners. Once the Demerger has taken place, the difference between the fair value of the Adapteo business and its carrying value in Cramo’s consolidated balance sheet will be recorded as a gain on distribution through the income statement. The Adapteo business to be spun off through the Demerger will be presented as discontinued operations separately from continuing operations in Cramo’s financial reporting after shareholders have approved the Demerger and the comparative income statement information for the year ended 31 December 2018 and interim periods for the year 2019 will be restated accordingly.
The illustrative financial information presented herein differs from the presentation of the continuing operations in accordance with IFRS standards, mainly because under IFRS the balance sheet information will not be restated for the comparative periods and Cramo has not applied IFRS 16 standard retrospectively. This unaudited illustrative financial information should not be viewed in isolation or as a substitute to the information presented in accordance with IFRS standards.
More details can be found in the attached tables and at www.cramogroup.com/investors.
| Continuing operations | with IFRS 16 impact* | with IFRS 16 impact* | ||
| KEY FIGURES AND RATIOS (MEUR) | 1-3/19 | 1-3/18 | Change % | 2018 |
| Sales | 148.4 | 143.8 | 3.2% | 631.9 |
| EBITDA | 46.0 | 43.7 | 5.1% | 215.4 |
| Comparable EBITA 1) | 11.8 | 14.9 | -20.4% | 94.8 |
| % of sales | 8.0% | 10.4% | 15.0% | |
| EBITA | 13.1 | 14.0 | -6.5% | 93.9 |
| % of sales | 8.8% | 9.7% | 14.9% | |
| Comparable profit for the period 1) | 5.7 | 9.0 | -36.5% | 61.9 |
| Profit for the period | 6.5 | 8.2 | -19.8% | 61.3 |
| Comparable earnings per share (EPS), EUR 1) | 0.13 | 0.20 | -36.5% | 1.39 |
| Earnings per share (EPS), EUR | 0.15 | 0.18 | -19.8% | 1.38 |
| Comparable ROCE, % 1), 2) | 10.0% | 10.5% | ||
| ROCE, % 2) | 10.2% | 10.4% | ||
| Comparable ROE, % 1), 3) | 15.8% | 15.3% | ||
| ROE, % 3) | 16.0% | 15.2% | ||
| Net debt / EBITDA | 1.92 | 1.99 | ||
| Net interest-bearing liabilities | 418.8 | 417.8 | 0.2% | 428.5 |
| Gross capital expenditure (incl. acquisitions) 4) | 16.7 | 63.1 | -73.5% | 185.1 |
| of which acquisitions/business combinations | 41.0 | 43.6 | ||
| Capital employed | 835.2 | 797.3 | 4.8% | 876.9 |
| Total assets | 1 005.3 | 978.7 | 2.7% | 1 021.7 |
| Total equity and liabilities | 1 005.3 | 978.7 | 2.7% | 1 021.7 |
| Average number of personnel (FTE) | 2 609 | 2 418 | 7.9% | 2 546 |
| Continuing operations | Reported | Reported | ||
| KEY FIGURES AND RATIOS (MEUR) | 1-3/19 | 1-3/18 | Change % | 2018 |
| Sales | 148.4 | 143.8 | 3.2% | 631.9 |
| EBITDA | 46.0 | 35.9 | 28.2% | 185.4 |
| Comparable EBITA 1) | 11.8 | 14.2 | -16.6% | 92.1 |
| % of sales | 8.0% | 9.9% | 14.6% | |
| EBITA | 13.1 | 13.3 | -1.7% | 91.2 |
| % of sales | 8.8% | 9.3% | 14.4% | |
| Comparable profit for the period 1) | 5.7 | 9.0 | -36.5% | 61.9 |
| Profit for the period | 6.5 | 8.2 | -19.8% | 61.3 |
| Comparable earnings per share (EPS), EUR 1) | 0.13 | 0.20 | -36.5% | 1.39 |
| Earnings per share (EPS), EUR | 0.15 | 0.18 | -19.8% | 1.38 |
| Comparable ROCE, % 1), 2) | 10.8% | 11.7% | ||
| ROCE, % 2) | 11.0% | 11.6% | ||
| Comparable ROE, % 1), 3) | 15.8% | 15.3% | ||
| ROE, % 3) | 16.0% | 15.2% | ||
| Net debt / EBITDA | 2.14 | 1.68 | ||
| Net interest-bearing liabilities | 418.8 | 309.3 | 35.4% | 311.6 |
| Gross capital expenditure (incl. acquisitions) 4) | 16.7 | 63.1 | -73.5% | 185.1 |
| of which acquisitions/business combinations | 41.0 | 43.6 | ||
| Capital employed | 835.2 | 688.8 | 21.3% | 760.1 |
| Total assets | 1 005.3 | 870.2 | 15.5% | 904.9 |
| Total equity and liabilities | 1 005.3 | 870.2 | 15.5% | 904.9 |
| Average number of personnel (FTE) | 2 609 | 2 418 | 7.9% | 2 546 |
* Presented 2018 figures with IFRS 16 impact are based on illustrative non-IFRS calculations from reported financial notes to form a comparison basis for IFRS 16 figures in 2019. These calculations have been implemented from the opening balance of 2017. Figures are non-IFRS additional financial information and are not be considered as reported IFRS figures.
The impact for applying IFRS 16 lessee accounting is significant for the Group’s figures, especially on balance sheet where right-of-use assets and lease liabilities were recognised since opening balance sheet. Together with material changes between lines of income statement and impact on net profit in a single period, the impact to the Group’s KPIs such as ROCE and net debt / EBITDA was significant.
1) excluding items affecting comparability, more information on IACs presented in tables attached
2) Cramo changed the calculation method of ROCE’s capital employed component into 12 months average in Q4/2018. The change has been applied into comparison figures. 12 months average reflects better the long-term development of capital employed compared to previous 2-point average calculation.
3) ROE% is calculated based on net result (rolling 12 months) divided by the total equity at the end of period.
4) Gross capital expenditure only includes the capital expenditure for owned assets.
Continuing Cramo in brief
Following the demerger of Adapteo, Cramo’s continuing operations will comprise one of the leading European equipment rental services business with annual revenues of EUR 632 million serving approximately 150,000 customers through 301 depots across 11 markets with a full range of machinery, equipment and related services. Cramo enjoys solid market positions in all key markets and has a strong focus on the most sophisticated customers primarily within the renovation and new-build construction, industrial and public sector end-markets. Cramo takes pride in being at the forefront of the industry and through long-term commitment to digital innovation, Cramo’s customers today have easy and direct access to a modern and comprehensive equipment fleet through digital channels. Cramo remains dedicated to its framework of sustainable development and sustainable competitiveness achieved through responsiveness to customer needs, development of sustainable products and services and by conducting operations with sustainability considerations.
“As one of the leading European rental services company, with diversified geographic presence across 11 markets, we have a robust platform to navigate through varying market conditions and continuously review demand outlooks in our markets to right-size the equipment fleet and ensure optimal capital allocation. Cramo remains well-positioned to benefit from the long-term structural trends characterising the market which will drive continued growth through increasing conversion into the equipment rental model and support continued value creation for our shareholders.”
Leif Gustafsson, President and of Cramo
Update on strategy and financial targets to be presented at Cramo’s capital markets day in mid-September 2019
In view of the Demerger, Cramo is currently reviewing its strategy and financial targets with respect to its continuing operations. The outcome of such review will be presented at Cramo’s capital markets day planned to take place in mid-September 2019.
An invitation with full details on the capital markets day will be circulated in due course.
CRAMO PLC
Aku Rumpunen
CFO
Further information:
Mr Aku Rumpunen, CFO, tel: +358 40 556 3546, email: aku.rumpunen@cramo.com
Distribution:
Nasdaq Helsinki Ltd.
Main media
www.cramogroup.com
Cramo is Europe’s second largest rental services company specialising in construction machinery and equipment rental and rental-related services as well as the rental of modular space. Cramo operates in about 300 depots in 14 countries. With a group staff around 2,700, Cramo's consolidated sales in 2018 were EUR 780 million. Cramo shares (CRA1V) are listed on Nasdaq Helsinki Ltd.
Read more: www.cramogroup.com, www.twitter.com/cramogroup
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