Ramirent Plc's Interim Report January-March 2019: Solid underlying performance continued
Ramirent Plc Interim Report April 30, 2019 at 9:00 EET
January-March 2019 in brief
- Net sales EUR 163.0 (167.5) million, down by -2.7% or -0.7% at comparable exchange rates
- Comparable EBIT EUR 17.3 (21.2) million or 10.6% (12.7%) of net sales
- EBIT EUR 17.1 (21.2) million or 10.5% (12.7%) of net sales
- Comparable EPS EUR 0.11 (0.14)
- EPS EUR 0.12 (0.14)
- Comparable ROCE 15.9% (15.7%)
- ROCE 9.4% (15.1%)
- Gross capital expenditure EUR 43.3 (53.3) million
- Cash flow after investments EUR 32.0 (-13.7) million
- After the review period, Ramirent announced it had signed an agreement to acquire Stavdal AB and become the leading company in Swedish equipment rental market. The enterprise value of the transaction is approximately EUR 158 million. The closing of the transaction is expected by the end of Q3 2019.
|Key figures (MEUR)||1-3/19||1-3/18||Change||1-12/18|
|% of net sales||30.1%||28.0%||28.5%|
|% of net sales||10.6%||12.7%||15.0%|
|% of net sales||10.5%||12.7%||9.4%|
|Comparable EPS, EUR||0.11||0.14||-19.0%||0.74|
|Comparable ROCE, %||15.9%||15.7%||16.8%|
|Comparable ROE, %||26.7%||24.6%||26.7%|
|Group including discontinued operations|
|Gross capital expenditure||43.3||53.3||-18.7%||199.5|
|Cash flow after investments||32.0||-13.7||n/a||40.7|
|Net debt to EBITDA ratio||2.1x||1.7x||21.3%||1.7x|
|Net debt excluding lease liabilities||328.9||351.7||-6.5%||350.6|
Net sales decreased in Sweden mainly due to the divestment of the Temporary Space business. Also strong activity in large projects in the first quarter of 2018 negatively impacted the change in net sales. Our underlying equipment rental sales decreased by low single-digit percentages in the quarter, mainly in Stockholm. We continue to have a solid pipeline of large projects in Sweden and remain optimistic about the medium to long-term growth prospects of the Swedish equipment rental market.
Net sales increased strongly in Finland, partly due to the acquisition of SRV Kalusto. Performance was good in our rental operations, but profitability was negatively affected by the scaffolding business. In Norway, both sales and profit growth were solid and the previously announced restructuring has progressed as planned. Eastern European performance was stable, despite a slow January.
In March, we completed the divestment of our Danish equipment rental business. After this divestment, Ramirent has four operating segments and it operates in nine countries. We also operate in Russia and Ukraine through a 50% owned joint venture, Fortrent.
After the review period, we announced the acquisition of Stavdal AB, a general equipment rental company operating in Sweden and in the Oslo area in Norway with an enterprise value of approximately EUR 158 million. The acquisition is expected to be strongly synergistic and cash-generative. We will now redeploy funds from earlier completed divestments and strengthen our position in the Swedish equipment rental market, particularly in the growing metropolitan areas of Gothenburg and Stockholm.
Our business is in solid shape, and we continue to have opportunities for performance improvement in 2019. With our strong balance sheet and strengthening cash flow we are ready to accelerate our growth through synergistic acquisitions."
Webcast and conference call for investment analysts and press
A briefing for investment analysts and the press will be arranged on Tuesday, April 30, 2019 at 10:30 a.m. Finnish time (EET) through a live webcast viewable at www.ramirent.com combined with a conference call. The briefing will be hosted by CEO Tapio Kolunsarka and CFO Jukka Havia. The dial-in numbers are FI: +358 981 710 310, UK: +44 333 300 0804, SE: +46 856 642 651, US: + 1 631 913 1422. Numbers for other countries can be found here. Participant code for conference call is 29367100#. A recording of the webcast and teleconference will be available at www.ramirent.com later the same day.
Financial calendar 2019
Ramirent observes a silent period during 30 days prior to the publication of annual, half year and interim financial results.
Half Year Financial Report 2019 July 31, 2019 at 9:00 a.m. EET
Interim report January-September 2019 October 30, 2019 at 9:00 a.m. EET
The financial information in this stock exchange release has not been audited.
For further information
Jukka Havia, EVP and CFO, Ramirent Plc, tel: +358 50 355 3757, email@example.com
Ramirent is a leading service company offering equipment rental for construction and other industries. Our mission is to help our customers gear up on safety and efficiency by delivering great equipment and smooth service with a smile. We have 2,800 co-workers at 292 customer centers across nine countries in northern and eastern Europe. In 2018, Ramirent Group net sales reached a total of EUR 712 million. Ramirent is listed on the Nasdaq Helsinki (RAMI). Ramirent - Gear Up. Equipment rental at your service
Distribution: NASDAQ OMX Helsinki, main news media, www.ramirent.com