ROBIT PLC STOCK EXCHANGE RELEASE 21 FEBRUARY 2024 AT 9.00 EET
ROBIT PLC FINANCIAL STATEMENTS RELEASE 1 JANUARY–31 DECEMBER 2023: CASH FLOW STRENGTHENED AND PROFITABILITY IMPROVED IN THE LAST QUARTER OF THE YEAR
In the text, ‘review period’ or ‘last quarter of the year’ refers to 1 October–31 December 2023 (Q4), and ‘January–December’ refers to 1 January–31 December 2023. Figures from the corresponding time period in 2022 are given in parentheses. All the figures presented are in euros. Percentages are calculated from thousands of euros.
1 October–31 December 2023 in brief
- Net sales EUR 22.9 million (26.2); change -12.6 percent
- EBITDA EUR 2.4 million (0.4); 10.5 percent of net sales (1.4)
- Comparable EBITDA EUR 2.0 million (0.4); 8.6 percent of net sales (1.4)
- EBITA EUR 1.5 million (-0.8); 6.3 percent of net sales (-3.1)
- Comparable EBITA EUR 1.0 million (-0.8); 4.4 percent of net sales (-3.1)
- EBIT EUR 1.2 million (-1.0); 5.2 percent of net sales (-4.0)
- Review period net income EUR -0.3 million (-2.2); -1.4 percent of net sales (-8.3)
- Net cash flow for operating activities EUR 7.0 million (1.6)
1 January–31 December 2023 in brief
- Net sales EUR 92.9 million (112.0); change -17.0 percent
- EBITDA EUR 5.2 million (8.9); 5.6 percent of net sales (7.9)
- Comparable EBITDA EUR 5.0 million (8.9); 5.4 percent of net sales (7.9)
- EBITA EUR 0.8 million (4.0); 0.9 percent of net sales (3.5)
- Comparable EBITA EUR 0.7 million (4.0); 0.7 percent of net sales (3.5)
- EBIT EUR 0.1 million (3.1); 0.1 percent of net sales (2.7)
- Review period net income EUR -3.0 million (0.9); -3.2 percent of net sales (0.8)
- Net cash flow for operating activities EUR 8.4 million (5.6)
- Equity ratio at the end of the review period 48.5 percent (46.5)
| Key financials |
Q4 2023 |
Q4 2022 |
Change% |
2023 |
2022 |
Change% |
| Net sales, EUR 1,000 |
22 901 |
26 210 |
-12.6% |
92 917 |
111 962 |
-17.0% |
| EBITDA, EUR 1,000 |
2 409 |
379 |
535.9% |
5 172 |
8 851 |
-41.6% |
| EBITDA, % of net sales |
10.5% |
1.4% |
|
5.6% |
7.9% |
|
| Comparable EBITDA, EUR 1,000 |
1 961 |
379 |
417.8% |
5 004 |
8 851 |
-43.5% |
| Comparable EBITDA, % of net sales |
8.6% |
1.4% |
|
5.4% |
7.9% |
|
| EBITA, EUR 1,000 |
1 451 |
-822 |
276.5% |
829 |
3 959 |
-79.1% |
| EBITA, % of net sales |
6.3% |
-3.1% |
|
0.9% |
3.5% |
|
| Comparable EBITA, EUR 1,000 |
1 004 |
-822 |
222.0% |
660 |
3 959 |
-83.3% |
| Comparable EBITA, % of net sales |
4.4% |
-3.1% |
|
0.7% |
3.5% |
|
| EBIT, EUR 1,000 |
1 192 |
-1 039 |
214.7% |
116 |
3 071 |
-96.2% |
| EBIT, % of net sales |
5.2% |
-4.0% |
|
0.1% |
2.7% |
|
| Result for the period, EUR 1,000 |
-332 |
-2 166 |
-84.7% |
-3 019 |
885 |
-441.0% |
| Result of the period, % of net sales |
-1.4% |
-8.3% |
|
-3.2% |
0.8% |
|
| Earnings per share (EPS), EUR 1,000 |
-0,01 |
-0,09 |
|
-0,14 |
0,04 |
|
| Return on equity (ROE), % |
|
|
|
-6.3% |
1.6% |
|
| Return on capital employed (ROCE), % |
|
|
|
-0.4% |
3.5% |
|
MARKET OUTLOOK FOR 2024
Robit expects the global mining industry demand to remain at the current good level. Demand in the construction industry is expected to remain at the current satisfactory level in the short term. Project activity in the construction industry has picked up after bottoming out in 2023. With the projects progressing, demand is expected to develop positively in the second half of the year.
GUIDANCE FOR 2024
Robit estimates that, in 2024, net sales will increase and comparable EBIT profitability in euros will improve compared to 2023.
BACKGROUND FOR THE GUIDANCE
The guidance is based on the estimate that the mining industry demand remains at good level and market in the construction sector develops positively in the second half of 2024. The guidance is based on the assumption that there will be no significant changes in the exchange rates from the level at the end of 2023.
In 2024, Robit will transition to use comparable EBIT in its guidance instead of the previously used comparable EBITDA profitability.
CEO ARTO HALONEN
Market demand weakened during 2023, which affected the construction industry in Europe and Asia in particular. Customer demand in the mining industry remained at a good level during the year, but the high stock levels of customers and distributors, and de-stocking, weakened Robit’s sales also in the mining industry. Orders received stood at EUR 93.0 million (105.3) in 2023. The company’s net sales for 2023 declined by 17.0 percent to EUR 92.9 million (112.0). In constant currencies, the decline was 13.7 percent. A significant reason for the decreased sales was the closure of the Russian business, which had an 8.3 percent impact on the declined net sales.
In the last quarter of the year, the company’s orders totalled EUR 22.3 million (23.1), a decrease of 3.3 percent. Net sales for the review period were EUR 22.9 million (26.2). In constant currencies, there was a decrease of 9.3 percent. The company’s net sales increased clearly in the Australasia region. The company has won several new customers in the region, and the resulting effect was evident in the last quarter of the year. In the other market areas, net sales declined over the comparison period. Customer demand was low in the construction, prospection drilling and well drilling segments at the end of the year. Of the business units, Geotechnical experienced growth in the last quarter of the year, when a major project delivery was carried out to North America.
The company’s full-year EBITDA decreased from the 2022 level. Profitability was weak, especially in the early part of the year, but the company managed to improve it with the help of the austerity measures implemented during the year. The impact of the austerity measures was evident particularly in the profitability of the fourth quarter or the year. Comparable EBITDA for the review period improved clearly over the comparison period to EUR 2.0 million (0.4), representing 8.6 percent of net sales.
Robit’s net cash inflow from operating activities strengthened significantly during the review period, amounting to EUR 7.0 million. The result was made possible by implementation of the Fit for Service programme, which focused on strengthening cash flow. The programme helped to reduce stocks in the review period by EUR 4.3 million and during 2023 by EUR 8.3 million. The programme and inventory optimisation will continue in 2024.
The year 2023 was a year of structural changes for the company. We discontinued manufacturing at the Australian plant at the end of the third quarter, resulting in a positive impact of EUR 0.7 million on the company’s EBITDA. Centralising manufacturing to the company’s other plants will strengthen our competitiveness in the Down the Hole business. In future, the Australian unit will focus on sales, maintenance, and distribution on the local market. We also clarified the sales structure of the Down the Hole SBU; we will sell products only under the Robit brand. Previously, the company was active in the Down the Hole SBU under both the Robit and the Halco brands. This brand change enables the simplification of the organisation, company structure and product offering. The measures taken were part of the company’s EUR 5 million cost-savings programme.
Work to achieve the sustainability goals continued. Robit’s sustainability work focuses on four key themes: responsible partnerships, reducing carbon dioxide emissions in the value chain, a happy and healthy workplace, and efficiency throughout the product lifecycle. We made good progress in many areas. The systematic work to enhance occupational safety was reflected, for example, in the record number of proactive occupational safety observations that were made and processed during 2023.
During the year, we launched new products on the market that enable efficiency throughout the product lifecycle. Robit’s new H-series hammers were introduced on the Nordic well drilling market during the year. The H-series hammers have helped customers save up to 25 percent in fuel consumption, thereby significantly reducing the costs and emissions from drilling. The launch of the H-series hammers will advance to other markets and applications during 2024.
Thanks to the structural changes implemented, we are starting 2024 in a stronger position. A clearer structure and a more cost-competitive supply chain have strengthened, in particular, the competitiveness of the Down the Hole SBU and the prerequisites for profitable growth.
In 2024, we will focus particularly on ensuring profitable growth. The measures to strengthen profitability will continue. The company seeks growth by further strengthening the distributor network and, in the company’s direct sales countries, by focusing especially on increasing mining sales. The Fit for Service programme, which focuses on working capital management, will continue in 2024. However, in 2024, the company’s stock level is not expected to decrease as significantly as in 2023. We will focus on developing operating models and processes for maintaining optimised stock levels and for improving inventory turnover as the company grows.
SUSTAINABILITY
The measures taken to improve work safety bore fruit. The lost-time injury frequency rate decreased during the year, and the company made a record number of safety observations. In terms of emission intensity, the trend improved towards the latter part of the year, yet we fell somewhat short of the comparison year. The number of consultative sales hours increased significantly during the year, and we were able to raise the number of responsible suppliers and distributors.
| |
Emission
intensity |
Waste |
Consultative sales hours per year |
LTIF |
Sustainable suppliers |
Sustainable distributors |
| 12/2023 |
-25.7% |
88.1% |
1 919 h |
4.7 |
99.3% |
86.0% |
| 12/2022 |
-26.0% |
89.9% |
714 h |
6.4 |
92.0% |
82.0% |
| Target |
-50.0% |
>90.0% |
>1 000 h |
0.0 |
>90.0% |
>90.0% |
NET SALES
Net sales by product area
| EUR thousand |
Q4 2023 |
Q4 2022 |
Change% |
2023 |
2022 |
Change% |
| Top Hammer |
13 544 |
16 748 |
-19.1% |
54 406 |
66 834 |
-18.6% |
| Down the Hole |
4 864 |
5 827 |
-16.5% |
20 862 |
24 897 |
-16.2% |
| Geotechnical |
4 493 |
3 635 |
23.6% |
17 648 |
20 231 |
-12.8% |
| Total |
22 901 |
26 210 |
-12.6% |
92 917 |
111 962 |
-17.0% |
The Group’s net sales in the fourth quarter of the year totalled EUR 22.9 million (26.2), representing a decrease of 12.6 percent (-0.3) over the comparison period. In constant currencies, the change was -9.3 percent (-4.2). The Group’s net sales in January–December totalled EUR 92.9 million (112.0), representing a decrease of 17.0 percent (11.1) over the comparison period. In constant currencies, the change was -13.7 percent (6.2).
Top Hammer net sales decreased by 19.1 percent in the last quarter of the year, and net sales for the review period were EUR 13.5 million (16.7). The decreased net sales were affected particularly by the discontinuation of sales to Russia and weakened demand in the contracting sector in Asia region. Positive development of net sales was seen in the Australasia region, where the company has won several new customers.
Down the Hole net sales decreased by 16.5 percent in the fourth quarter of the year, and net sales for the review period were EUR 4.9 million (5.8). Net sales grew in the EMEA region but declined especially in the Americas region, where deliveries to certain distributors were lower than in the comparison period.
Geotechnical net sales grew strongly by 23.6 percent in the fourth quarter of the year, and net sales for the review period were EUR 4.5 million (3.6). The last quarter of the year saw a major project delivery to North America.
Net sales by market area
| EUR thousand |
Q4 2023 |
Q4 2022 |
Change% |
2023 |
2022 |
Change% |
| EMEA |
10 820 |
12 546 |
-13.8% |
47 279 |
48 651 |
-2.8% |
| Americas |
5 433 |
6 156 |
-11.7% |
20 840 |
26 349 |
-20.9% |
| Asia |
2 293 |
2 767 |
-17.1% |
8 950 |
11 686 |
-23.4% |
| Australasia |
4 031 |
3 227 |
24.9% |
14 835 |
13 892 |
6.8% |
| East |
324 |
1 514 |
-78.6% |
1 012 |
11 384 |
-91.1% |
| Total |
22 901 |
26 210 |
-12.6% |
92 917 |
111 962 |
-17.0% |
PROFITABILITY
Key figures
| EUR thousand |
Q4 2023 |
Q4 2022 |
Change% |
2023 |
2022 |
Change% |
| EBITDA, EUR 1,000 |
2 409 |
379 |
535.9% |
5 172 |
8 851 |
-41.6% |
| EBITDA, % of net sales |
10.5% |
1.4% |
|
5.6% |
7.9% |
|
| Comparable EBITDA, EUR 1,000 |
1 961 |
379 |
417.8% |
5 004 |
8 851 |
-43.5% |
| Comparable EBITDA, % of net sales |
8.6% |
1.4% |
|
5.4% |
7.9% |
|
| EBIT, EUR 1,000 |
1 192 |
-1 039 |
214.7% |
116 |
3 071 |
-79.1% |
| EBIT, % of net sales |
5.2% |
-4.0% |
|
0.1% |
2.7% |
|
| Result for the period, EUR 1,000 |
-332 |
-2 166 |
84.7% |
-3 019 |
885 |
-441.0% |
| Result for the period, % of net sales |
-1.4% |
-8.3% |
|
-3.2% |
0.8% |
|
Comparable EBITDA for the fourth quarter was EUR 2.0 million (0.4). The proportion of comparable EBITDA in net sales was 8.6 percent (1.4). The company’s EBIT was EUR 1.2 million (-1.0). EBIT was -5.2 percent
(-4.0) of the review period net sales.
Comparable EBITDA for January–December was EUR 5.0 million (8.9). The proportion of comparable EBITDA in net sales was 5.4 percent (7.9). The company’s EBIT was EUR 0.1 million (3.1). EBIT was 0.1 percent (2.7) of the January–December net sales.
The weakened profitability for the financial year was due mainly to lower sales. In addition, the company was not able to fully pass on the increased costs to sales prices. During the last quarter, the company’s cost-savings programme started to bear fruit and profitability improved significantly over the early part of the year. The company will continue investing in developing sales and in managing fixed costs in order to improve profitability.
Financial income and expenses in the fourth quarter of the year totalled EUR -0.8 million (-0.5), of which interest expenses accounted for EUR -0.7 million (-0.3) and exchange rate changes accounted for EUR -0.1 million (-0.1). The company had a EUR 10 million interest rate swap in effect, which helped reduce the cash flow effect of rising interest rates. In addition, the breaking of the interest-bearing net debt/EBITDA covenant of the company’s financing agreement increased the company’s financing costs. The company received consent from its main financier to break the covenant in advance. Tax expense for the review period was EUR -0.8 million (-0.6). The company re-assessed the probability of utilising certain withholding tax receivables and, on that basis, wrote down a total of EUR -0.4 million in withholding tax receivables from the balance sheet. Review period net income was EUR -0.3 million (-2.2).
Financial income and expenses in January–December totalled EUR -2.5 million (-1.7), of which interest expenses accounted for EUR -2.2 million (-1.3) and exchange rate changes for EUR -0.2 million (-0.2). Tax expense was EUR -0.6 million (0.5). Review period net income was EUR -3.0 million (0.9).
CASH FLOW AND INVESTMENTS
Consolidated cash flow statement
| EUR thousand |
Q4 2023 |
Q4 2022 |
2023 |
2022 |
| Net cash flows from operating activities |
|
|
|
|
| Cash flows before changes in working capital |
2 178 |
1 129 |
4 509 |
10 063 |
| Cash flows from operating activities before financial items and taxes |
8 282 |
2 009 |
11 074 |
7 326 |
| Net cash inflow (outflow) from operating activities |
7 019 |
1 594 |
8 353 |
5 606 |
| Net cash inflow (outflow) from investing activities* |
1 511 |
-75 |
1 102 |
743 |
| Net cash inflow (outflow) from financing activities |
-2 970 |
-612 |
-4 069 |
-6 421 |
| Net increase (+)/decrease (-) in cash and cash equivalents |
5 560 |
908 |
5 386 |
-72 |
| Cash and cash equivalents at the beginning of the financial year |
5 751 |
5 394 |
6 085 |
6 073 |
| Exchange gains/losses on cash and cash equivalents |
-110 |
-216 |
-269 |
84 |
| Cash and cash equivalents at end of the year |
11 201 |
6 085 |
11 201 |
6 085 |
*The company has adjusted in the comparative period the Other financial assets item from Cash and cash equivalents and its effects also on the cash flow statement. The adjustment from Cash and cash equivalents to Other financial assets was EUR 1.6 million.
The Group’s cash flow before changes in working capital during the fourth quarter was EUR 2.2 million (1.1). Net cash flow for operating activities was EUR 7.0 million (1.6). The changes in working capital had an impact of EUR 6.1 million (0.9). Net cash flow from operations in the financial year was EUR 8.4 million (5.6).
Net cash flow from investing activities in the fourth quarter was EUR 1.5 million (-0.1) as the company received proceeds from the sale of production machinery at the Australian factory. Gross investments in production totalled EUR 0.0 million (0.2). The proportion of investments in net sales was 0.3 percent (0.9). Net cash flow for investment activities in the financial year was EUR 1.1 million (0.8).
Net cash inflow (outflow) from financing activities for the last quarter of the year was EUR -3.0 million (-0.6). Net changes in loans totalled EUR -1.6 million (-1.8). The change in bank overdrafts was EUR 0.1 million (1.6). Net cash flow from financing activities in the financial year was EUR -4.1 million (-6.4).
Depreciation, amortisation and write-downs in the fourth quarter totalled EUR -1.3 million (-1.4). Depreciation, amortisation and write-downs in the financial year totalled EUR -5.5 million (-5.8).
FINANCIAL POSITION
| |
31.12.2023 |
31.12.2022 |
| Cash and cash equivalents, EUR thousand* |
11 201 |
6 085 |
| Interest-bearing liabilities, EUR thousand |
32 532 |
36 345 |
| of which short-term interest-bearing financial liabilities: |
6 463 |
8 922 |
| Net interest-bearing liabilities, EUR thousand |
21 331 |
30 260 |
| Undrawn credit facility, EUR thousand |
4 000 |
4 218 |
| Gearing,% |
46.7% |
59.5% |
| Equity ratio,% |
48.5% |
46.5% |
*The company has adjusted in the comparative period the Other financial assets item from Cash and cash equivalents and its effects also on the cash flow statement. The adjustment from Cash and cash equivalents to Other financial assets was EUR 1.6 million.
The Group had EUR 32.5 million (36.3) in interest-bearing liabilities, EUR 5.2 million (7.0) of which were IFRS 16 interest-bearing liabilities. The company had EUR 11.2 million (6.1) in cash and cash equivalents, EUR 1.6 million in other financial assets and, in addition, an undrawn credit facility of EUR 4.0 million. Interest-bearing net liabilities amounted to EUR 21.3 million (30.3), and interest-bearing net bank liabilities excluding IFRS 16 liabilities stood at EUR 16.1 million (23.3).
The Group’s equity at the end of the review period was EUR 45.6 million (50.8). The Group’s equity ratio improved and was 48.5 percent (46.5). Gearing was 46.7 percent (59.5).
PERSONNEL AND MANAGEMENT
The number of personnel decreased by 34 from the end of the comparison period, and at the end of the review period it was 225 (259). At the end of the review period, 69 percent of the company’s personnel were located outside Finland.
The company’s Management Team at the end of the reporting period was composed of Arto Halonen (CEO), Perttu Aho (VP Down the Hole), Ville Iljanko (VP Distributor Sales), Jorge Leal (VP Top Hammer), Ville Peltonen (CFO), Ville Pohja (VP Geotechnical) and Jaana Rinne (HR Director).
FINANCIAL TARGETS
Robit’s long-term target is to achieve organic net sales growth of 15 percent annually and comparable EBITDA profitability of 13 percent.
| |
Long-term target |
2021 |
2022 |
2023 |
| Net sales growth p.a., % |
15 % |
10,0 % |
11,1 % |
-17,0 % |
| Comparable EBITDA, % of net sales |
13 % |
7,5 % |
7,9 % |
5,4 % |
Robit will update its long-term financial targets during the first quarter of 2024.
SHARE-BASED INCENTIVE PROGRAMMES
Share-based incentive scheme 2020–2022
On 25 February 2020, Robit’s Board of Directors decided on a share-based incentive scheme for the Group’s management and key personnel. The share scheme had three elements: the key personnel’s own investment in the company (base share plan), reward shares by the company (matching share plan) and performance-based additional share plan (performance matching plan). The share-based incentive scheme covered 12 individuals. The company’s matching shares were paid in April 2023. No performance matching shares were paid. After payment, the shares are subject to a transfer restriction of one year. In total, 38,500 shares were paid, representing 0.2 percent of the company’s current share capital.
Share-based incentive scheme 2021–2023
On 15 June 2021, Robit Plc’s Board of Directors decided on a performance-based share reward scheme for the company’s key personnel. The share scheme includes earning periods of one year and two years. The first earning period of the share scheme comprises the year 2021 and the second earning period comprises the years 2022–2023. The share scheme’s potential reward for the one-year earning period 2021 is based on the company’s predetermined EBITDA target in the financial statements for 2021. The remuneration that may be paid under the share scheme for the 2022–2023 two-year earning period is based on the company’s predetermined average earnings per share in the financial statements for the years 2022 and 2023. The share scheme’s potential reward for both earning periods will be paid in May 2024.
The share scheme covers 11 individuals. The total amount of the share rewards payable on the basis of the 2021 and 2022–2023 earning periods corresponds to a maximum of 155,000 Robit Plc shares, representing 0.7 percent of the company’s current share capital.
Share-based incentive scheme 2022–2024
On 15 February 2022, Robit Plc’s Board of Directors decided on a performance-based share reward scheme for the company’s key personnel. On 24 March 2022, Robit’s Board of Directors decided to increase the maximum size of the share reward scheme due to the change of CEO.
The share scheme includes earning periods of one year and two years. The first earning period of the share scheme comprises the year 2022 and the second earning period comprises the years 2023–2024. The remuneration that may be paid under the share scheme for the 2022 one-year earning period is based on the company’s predetermined net cash inflow target in the 2022 financial statements. The remuneration that may be paid under the share scheme for the 2023–2024 two-year earning period is based on the company’s predetermined average earnings per share in the financial statements for the years 2023 and 2024. The share scheme’s potential reward for both earning periods will be paid in May 2025.
The share scheme covers 20 individuals. The total amount of the share rewards payable on the basis of the 2022 and 2023–2024 earning periods corresponds to a maximum of 240,000 Robit Plc shares, representing 1.1 percent of the company’s current share capital.
Share-based incentive scheme 2023–2025
On 20 February 2023, Robit Plc’s Board of Directors decided on a performance-based share reward scheme for the company’s key personnel. The share scheme includes earning periods of one year and two years. The first earning period of the share scheme comprises the year 2023 and the second earning period comprises the years 2024–2025. The reward for the 2023 earning period is divided into a guaranteed part and a performance-based part. The guaranteed part is 50 percent of the base share allocation defined for the participant. The remuneration that may be paid under the share scheme for the 2024–2025 two-year earning period is based on the company’s predetermined average earnings per share in the financial statements for the years 2024 and 2025. The share scheme’s potential reward for both earning periods will be paid in May 2026.
The share scheme covers 18 individuals. The total amount of the share rewards payable on the basis of the 2023 and 2024–2025 earning periods corresponds to a maximum of 240,000 Robit Plc shares, representing 1.1 percent of the company’s current share capital.
RESOLUTIONS OF THE ANNUAL GENERAL MEETING 2023
Robit Plc’s Annual General Meeting was held in Tampere on 15 March 2023. The decisions and other materials related to the meeting are available on the company’s website at https://www.robitgroup.com/investor/corporate-governance/general-meeting/.
SHARES AND SHARE TURNOVER
On 31 December 2023, the company had 21,179,900 shares and 5,405 shareholders. The trading volume in January–December was 9,518,786 shares (8,082,989).
The company holds 47,190 treasury shares (0.2 percent of total shares). On 31 December 2023, the market value of the company’s shares was EUR 32.0 million. The closing price of the share was EUR 1.51. The highest price in the review period was EUR 1.55 and the lowest price was EUR 1.20.
RISKS AND BUSINESS UNCERTAINTIES
The ‘net interest-bearing liabilities/EBITDA’ covenant in the Robit parent company’s financing agreement did not meet the terms of the financing agreement on 31 December 2023. The company obtained from its main financier consent to breach of the covenant on 26 September 2023. This increased the company’s financial expenses and financial risk. The company has hedged against interest rate risk with a EUR 10 million interest rate swap agreement, which entered into force on 30 June 2023 and will expire on 30 June 2026.
Escalation of the geopolitical situation poses a risk to the company’s business. The war in Ukraine and the sanctions imposed on Russia affect the development of net sales and of profitability especially in Russia, Belarus and Ukraine, which accounted for approximately 8 percent of the company’s sales in the 2022 financial year. The company has no business operations in Russia or Belarus in 2023.
Other uncertainty factors include exchange rate development, the functioning of information systems, risks related to the security of supply and logistics, and IPR risks. Passing on the increase in raw material costs fully to customer prices may pose a financial risk. Changes in export countries’ tax and customs legislation may adversely impact the company’s export trade or its profitability. Risks related to information security and cyber threats may also have a detrimental effect on Robit’s business. Potential changes in the business environment may adversely impact the payment behaviour of the Group’s customers and increase the risk of litigation, legal claims and disputes related to Robit’s products and other operations.
CHANGES IN GROUP STRUCTURE
There were no changes in the Group structure during the review period.
OTHER EVENTS IN OCTOBER–DECEMBER 2023
On 23 October 2023, Robit Plc published its interim report for 1 January–30 September 2023.
On 23 October 2023, the company published its 2024 financial reporting and Annual General Meeting schedule.
The acquisition of treasury shares launched by Robit Plc on 20 September 2023 ended on 14 November 2023. During this period, the company acquired 100,000 treasury shares at an average price of €1.37576 per share. The shares were acquired at market price, effective at the moment of acquisition, established in public trading organised by Nasdaq Helsinki Ltd. The acquisition of shares was based on the authorisation given by Robit Plc’s Annual General Meeting on 15 March 2023 to the Board of Directors to decide on the acquisition of a maximum of 2,117,990 of the company’s treasury shares using the company’s distributable unrestricted shareholders’ equity for the purpose of implementing the company’s share-based incentive schemes or for other purposes as decided by the Board of Directors. At its meeting held on 18 September 2023, the company’s Board of Directors decided to acquire up to 100,000 shares, representing approximately 0.5 percent of the company’s shares outstanding at the moment of publication of the release. At the moment of publication of the release, Robit Plc had 21,179,900 shares and votes. After the acquisition, the company had a total of 116,308 treasury shares, representing approximately 0.6 percent of the company’s all issued shares.
At its meeting on 15 December 2023, the company’s Board of Directors decided to transfer a total of 60,294 company shares to the members of the Board of Directors as Board remuneration on the basis of the Board’s 2023 term of office. The transfer was based on the authorisation given by the Annual General Meeting on 15 March 2023. At the closing price of 13 December 2023, the total value of the shares to be transferred was EUR 82,000. It was decided to transfer a total of 8,824 shares to CEO Arto Halonen as part of the fixed annual salary. This transfer was based on the CEO agreement. At the closing price of 13 December 2023, the total value of the shares to be transferred was EUR 12,000. The total number of shares to be transferred was 69,118, and their total value at the 13 December 2023 closing price was EUR 94,000. The share rewards were paid with the company’s treasury shares held by Robit Plc, which is why the total number of the company’s shares remained changed. Before the transfer, Robit Plc held 116,308 treasury shares, representing 0.5 percent of the total number of the company’s shares, and after the transfers it held 47,190 treasury shares, representing 0.2 percent of the total number of the company’s shares. The share rewards were paid by 20 December 2023.
TREATMENT OF RESULT FOR THE FINANCIAL YEAR
The Board of Directors proposes to the Annual General Meeting that the parent company’s loss for the financial year that ended on 31 December 2023, EUR -10,373,717.93, be transferred to cumulative loss.
DISTRIBUTION OF FUNDS TO SHAREHOLDERS
The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the 2023 financial year.
EVENTS AFTER THE REVIEW PERIOD
On 19 January 2024, the company published the proposals of Robit Plc’s Shareholders’ Nomination Board for the 2024 Annual General Meeting, available at the company’s website at https://www.robitgroup.com/investor/corporate-governance/general-meeting/.
Lempäälä, 21 February 2024
ROBIT PLC
Board of Directors
For more information, contact:
Arto Halonen, CEO
+358 40 028 0717
arto.halonen@robitgroup.com
Ville Peltonen, CFO
+358 40 759 9142
ville.peltonen@robitgroup.com
Distribution:
Nasdaq Helsinki Ltd
Key media
www.robitgroup.com
Robit is a strongly international growth company servicing global customers and selling drilling consumables for applications in mining, construction, geotechnical engineering and well drilling. The company’s offering is divided into three product and service ranges: Top Hammer, Down the Hole and Geotechnical. Robit has sales and service points in seven countries as well as an active sales network in more than 100 countries. Robit’s manufacturing units are located in Finland, South Korea and the UK. Robit’s share is listed on Nasdaq Helsinki Ltd. Further information is available at www.robitgroup.com.
CONDENSED FINANCIAL STATEMENTS
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
|
|
|
|
|
| EUR thousand |
10–12/2023 |
10–12/2022 |
2023 |
2022 |
| Net sales |
22 901 |
26 210 |
92 917 |
111 962 |
| Other operating income |
791 |
300 |
1 882 |
4 117 |
| Materials and services* |
-14 954 |
-17 609 |
-61 625 |
-73 729 |
| Employee benefit expense |
-3 694 |
-4 536 |
-15 388 |
-17 075 |
| Depreciation and amortisation |
-1 217 |
-1 418 |
-5 055 |
-5 779 |
| Impairment |
283 |
-61 |
-205 |
-339 |
|
| Other operating expense* |
-2 918 |
-3 925 |
-12 409 |
-16 086 |
| EBIT (Operating profit/loss) |
1 192 |
-1 039 |
116 |
3 071 |
| |
|
|
|
|
| Finance income and costs |
|
|
|
|
| Interest income and finance income |
10 |
5 |
214 |
2 277 |
| Interest cost and finance cost |
-772 |
-533 |
-2 758 |
-4 010 |
| Finance income and costs net |
-762 |
-528 |
-2 544 |
-1 733 |
| Profit/loss before tax |
430 |
-1 568 |
-2 427 |
1 338 |
| |
|
|
|
|
| Taxes |
|
|
|
|
| Income tax |
-450 |
-375 |
-444 |
-533 |
| Change in deferred taxes |
-311 |
-223 |
-148 |
80 |
| Income taxes |
-762 |
-598 |
-592 |
-453 |
| Result for the period |
-332 |
-2 166 |
-3 019 |
885 |
| |
|
|
|
|
| Attributable to: |
|
|
|
|
| Parent company shareholders |
-225 |
-1 968 |
-3 048 |
819 |
| Non-controlling interest** |
-107 |
-198 |
29 |
66 |
| |
-332 |
-2 166 |
-3 019 |
885 |
| |
|
|
|
|
| Other comprehensive income |
|
|
|
|
| Items that may be reclassified to profit or loss in subsequent periods: |
|
| Cash flow hedges |
-298 |
46 |
-223 |
633 |
| Translation differences** |
-357 |
-766 |
-1 402 |
41 |
| Other comprehensive income, net of tax |
-654 |
-720 |
-1 624 |
674 |
| Total comprehensive income |
-987 |
-2 886 |
-4 644 |
1 560 |
| |
|
|
|
|
| Attributable to: |
|
|
|
|
| Parent company shareholders |
-972 |
-3 084 |
-4 630 |
1 501 |
| Non-controlling interest** |
-14 |
198 |
-14 |
58 |
| Consolidated comprehensive income |
-987 |
-2 886 |
-4 644 |
1 560 |
| |
|
|
|
|
| Earnings per share |
|
|
|
|
| Basic earnings per share |
-0,01 |
-0,09 |
-0,14 |
0,04 |
*In the condensed income statement, changes in inventories are presented in Materials and services, and manufacture for own use in Other operating expenses.
**Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA.
*** The Group has internal loans that are treated as net investments in foreign entities in accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates.
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
|
| EUR thousand |
31.12.2023 |
Restated 31.12.2022 |
Restated 1.1.2022 |
| ASSETS |
|
|
|
| Non-current assets |
|
|
|
| Goodwill |
5 308 |
5 203 |
5 487 |
| Other intangible assets |
817 |
1 498 |
2 695 |
| Property, plant and equipment |
19 561 |
24 929 |
27 396 |
| Loan receivables |
276 |
248 |
287 |
| Other receivables |
0 |
6 |
0 |
| Derivatives |
569 |
848 |
56 |
| Deferred tax assets |
1 417 |
1 859 |
1 926 |
| Total non-current assets |
27 948 |
34 590 |
37 847 |
| |
|
|
|
| Current assets |
|
|
|
| Inventories |
36 054 |
44 311 |
43 538 |
| Account and other receivables |
16 820 |
22 342 |
25 337 |
| Loan receivables |
70 |
80 |
100 |
| Current tax assets |
323 |
108 |
57 |
| Other financial assets* |
1 628 |
1 603 |
3 452 |
| Cash and cash equivalents |
11 201 |
6 085 |
6 073 |
| Total current assets |
66 096 |
74 529 |
78 557 |
| Total assets |
94 043 |
109 119 |
116 403 |
| |
|
|
|
| EQUITY AND LIABILITIES |
|
|
|
| Equity |
|
|
|
| Share capital |
705 |
705 |
705 |
| Share premium |
202 |
202 |
202 |
| Reserve for invested unrestricted equity |
82 147 |
82 570 |
82 570 |
| Translation differences |
-3 103 |
-1 744 |
-1 793 |
| Fair value reserve |
455 |
678 |
45 |
| Retained earnings |
-32 054 |
-32 748 |
-33 738 |
| Profit/loss for the year |
-3 048 |
819 |
843 |
| Equity attributable to parent company shareholders in total |
45 304 |
50 482 |
48 833 |
| Non-controlling interests* |
325 |
339 |
281 |
| Capital and reserves in total |
45 629 |
50 822 |
49 114 |
| |
|
|
|
| Liabilities |
|
|
|
| Non-current liabilities |
|
|
|
| Borrowings |
22 123 |
22 085 |
25 209 |
| Lease liabilities |
3 946 |
5 338 |
5 813 |
| Deferred tax liabilities |
389 |
690 |
694 |
| Employee benefit obligations |
504 |
732 |
725 |
| Total non-current liabilities |
26 962 |
28 846 |
32 441 |
| Current liabilities |
|
|
|
| Borrowings |
5 180 |
7 278 |
8 619 |
| Lease liabilities |
1 283 |
1 644 |
1 881 |
| Advances received |
22 |
145 |
771 |
| Income tax liabilities |
130 |
321 |
259 |
| Account payables and other liabilities |
14 742 |
19 916 |
23 278 |
| Other provisions |
97 |
147 |
40 |
| Total current liabilities |
21 453 |
29 451 |
34 848 |
| Total liabilities |
48 415 |
58 297 |
67 289 |
| Total equity and liabilities |
94 043 |
109 119 |
116 403 |
* Company has restated the Other financial assets from Cash and cash equivalents
** Founded in 2015 by Robit SA, Black Employees Empowerment Trust owns 26% of the shares of Robit SA
| CONSOLIDATED CASH FLOW STATEMENT |
|
|
|
|
| EUR thousand |
Q4 2023 |
Restated
Q4 2022 |
2023 |
Restated 2022 |
| Cash flows from operating activities |
|
|
|
|
| Profit before tax |
430 |
-1 568 |
-2 427 |
1 338 |
| Adjustments: |
|
|
|
|
| Depreciation, amortisation, and impairment |
1 217 |
1 418 |
5 055 |
5 779 |
| Finance income and costs |
829 |
528 |
2 610 |
1 733 |
| Share-based payments to employees |
-72 |
22 |
-139 |
115 |
| Loss (+)/Gain (-) on sale of property, plant and equipment |
-699 |
-50 |
-959 |
-74 |
| Other non-cash transactions |
473 |
778 |
369 |
1 171 |
| Cash flows before changes in working capital |
2 178 |
1 129 |
4 509 |
10 063 |
| |
|
|
|
|
| Change in working capital |
|
|
|
|
| Increase (-) in account and other receivables |
4 492 |
-479 |
3 629 |
2 975 |
| Increase (-)/decrease (+) in inventories |
3 893 |
740 |
6 836 |
-606 |
| Increase (+) in account and other payables |
-2 282 |
639 |
-3 900 |
-5 107 |
| Cash flows from operating activities before financial items and taxes |
8 282 |
2 029 |
11 074 |
7 326 |
| |
|
|
|
|
| Interest and other finance expenses paid |
-1 034 |
-529 |
-2 200 |
-1 250 |
| Interest and other finance income received |
52 |
16 |
100 |
20 |
| Income taxes paid |
-280 |
78 |
-621 |
-490 |
| Net cash inflow (outflow) from operating activities |
7 019 |
1 594 |
8 353 |
5 606 |
| |
|
|
|
|
| Cash flows from investing activities |
|
|
|
|
| Other financial assets increase (-) / decrease (+) |
0 |
0 |
0 |
1 800 |
| Purchases of property, plant and equipment |
71 |
-185 |
-379 |
-1 194 |
| Purchases of intangible assets |
-5 |
-52 |
-64 |
-131 |
| Proceeds from the sale of property, plant and equipment |
1 341 |
69 |
1 571 |
150 |
| Proceeds from loan receivables |
103 |
93 |
-26 |
119 |
| Net cash inflow (outflow) from investing activities |
1 511 |
-75 |
1 102 |
743 |
| |
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
| Acquisition of own shares |
-140 |
0 |
-150 |
0 |
| Dividend payment |
-48 |
-30 |
-441 |
-30 |
| Drawdowns of non-current loans |
0 |
0 |
3 500 |
0 |
| Amortizations of non-current loans |
-1 636 |
-1 771 |
-3 352 |
-3 187 |
| Change in bank overdrafts |
-112 |
1 588 |
-1 782 |
-1 480 |
| Payment of leasing liabilities |
-1 032 |
-398 |
-1 844 |
-1 723 |
| Net cash inflow (outflow) from financing activities |
-2 970 |
-611 |
-4 069 |
-6 421 |
| |
|
|
|
|
| Net increase (+)/decrease (-) in cash and cash equivalents |
5 560 |
908 |
5 386 |
-72 |
| Cash and cash equivalents at the beginning of the financial year |
5 751 |
5 394 |
6 085 |
6 073 |
| Exchange gains/losses on cash and cash equivalents |
-110 |
-216 |
-269 |
84 |
| Cash and cash equivalents at end of the year |
11 201 |
6 085 |
11 201 |
6 085 |
*Company has restated Other financial assets from Cash and cash equivalents
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
|
|
|
|
|
| A = Share capital |
|
|
|
|
|
|
|
|
|
| B = Share premium |
|
|
|
|
|
|
|
|
|
| C = Reserve for invested unrestricted equity |
|
|
|
|
|
|
|
|
| D = Cumulative translation difference |
|
|
|
|
|
|
|
|
|
| E = Fair value reserve |
|
|
|
|
|
|
|
|
|
| F = Retained earnings |
|
|
|
|
|
|
|
|
|
| G = Equity attributable to parent company shareholders |
|
|
|
|
|
|
|
| H = Non-controlling interests |
|
|
|
|
|
|
|
| I = Capital and reserves in total |
|
|
|
|
|
|
|
|
|
| EUR thousand |
A |
B |
C |
D |
E |
F |
G |
H |
I |
| Equity as at 1 January 2022 |
705 |
202 |
82 570 |
-1 793 |
45 |
-32 896 |
48 833 |
281 |
49 114 |
| Profit for the period |
|
|
|
|
|
820 |
820 |
66 |
885 |
| Other comprehensive income |
|
|
|
|
|
|
|
|
|
| Cash flow hedges |
|
|
|
|
633 |
|
633 |
|
633 |
| Translation differences |
|
|
|
49 |
|
|
49 |
-8 |
41 |
| Total comprehensive changes |
|
|
|
49 |
633 |
820 |
1 502 |
58 |
1 559 |
| Other adjustments |
|
|
|
|
|
51 |
51 |
|
51 |
| Share-based payments to employees |
|
|
|
|
|
46 |
46 |
|
46 |
| Use of treasury shares in the remuneration of the Board of Directors
|
|
|
|
|
80 |
80 |
|
80 |
| Dividend distribution |
|
|
|
|
|
-30 |
-30 |
|
-30 |
| Total transactions with owners, recognised directly in equity |
|
|
|
|
|
147 |
147 |
|
147 |
| Equity as at 31 December 2022 |
705 |
202 |
82 570 |
-1 744 |
678 |
-31 928 |
50 483 |
339 |
50 822 |
| |
|
|
|
|
|
|
|
|
|
| EUR thousand |
A |
B |
C |
D |
E |
F |
G |
H |
I |
| Equity as at 1 January 2023 |
705 |
202 |
82 570 |
-1 744 |
678 |
-31 928 |
50 483 |
339 |
50 822 |
| Profit for the period |
|
|
|
|
|
-3 048 |
-3 048 |
29 |
-3 109 |
| Other comprehensive income |
|
|
|
|
|
|
|
|
|
| Cash flow hedges |
|
|
|
|
-223 |
|
-223 |
|
-223 |
| Translation differences |
|
|
|
-1 359 |
|
|
-1 359 |
-43 |
-1 402 |
| Total comprehensive changes |
|
|
|
-1 359 |
-223 |
-3 048 |
-4 630 |
-14 |
-4 644 |
| Share-based payments to employees |
|
|
|
|
|
-46 |
-46 |
|
-46 |
| Acquisition of treasury shares |
|
|
|
|
|
-150 |
-150 |
|
-150 |
| Use of treasury shares in the remuneration of the Board of Directors
|
|
|
|
|
88 |
88 |
|
88 |
| Dividend distribution |
|
|
-423 |
|
|
-17 |
-441 |
|
-441 |
| Total transactions with owners, recognised directly in equity |
|
|
-423 |
|
|
-125 |
-548 |
|
-548 |
| Equity as at 31 December 2023 |
705 |
202 |
82 147 |
-3 103 |
455 |
-35 102 |
45 304 |
325 |
45 629 |
NOTES
Contents
- Scope and principles of the interim report
- Key figures and calculation
- Breakdown of net sales
- Financing arrangements
- Changes to property, plant and equipment
- Given guarantees
- Goodwill impairment testing
- Derivatives
1. SCOPE AND PRINCIPLES OF THE INTERIM REPORT
This financial statement release has been prepared in accordance with the IAS 34 ‘Interim Financial Reporting’ standard using the same principles as are used in the annual financial statements. The financial statement release and interim reports have not been audited.
Robit reports 2023 net sales for three business units: Top Hammer, Down the Hole and Geotechnical. Previously, the company reported the Geotechnical unit as part of the Down the Hole unit. The Geotechnical unit focuses on drill piling, which is a support method used in different types of construction projects. Down the Hole focuses on DTH drilling equipment used in mines, quarries and well drilling. Top Hammer focuses on top hammer drilling equipment used in mines, quarries, construction projects and tunnelling.
All figures in the condensed financial statements and in the notes are rounded, which is why the sum of individual figures may deviate from the sum presented.
2.1 KEY FIGURES
| Consolidated key figures |
Q4 2023 |
Q4 2022 |
2023 |
2022 |
| Net sales, EUR 1,000 |
22 901 |
26 210 |
92 917 |
111 962 |
| EBIT, EUR 1000 |
1 192 |
-1 039 |
116 |
3 071 |
| EBIT, per cent of sales |
5,2 % |
-4,0 % |
0,1 % |
2,7 % |
| Earnings per share (EPS), EUR |
-0,01 |
-0,09 |
-0,14 |
0,04 |
| Return on equity (ROE), % |
|
|
-6,3 % |
1,6 % |
| Return on capital employed (ROCE), % |
|
|
-0,4 % |
3,5 % |
| Equity ratio, % |
|
|
48,5 % |
46,5 % |
| Net gearing, % |
|
|
46,7 % |
56,4 % |
| Gross investments, EUR 1,000 |
67 |
237 |
443 |
1 326 |
| Gross investments, % of net sales |
0,3 % |
0,9 % |
0,5 % |
1,2 % |
| Number of shares (outstanding shares) |
|
|
21 132 710 |
21 127 592 |
| Treasury shares (owned by the Group) |
|
|
47 190 |
52 308 |
| Percentage of votes/shares |
|
|
0,22 % |
0,24 % |
2.2 CONSOLIDATING ALTERNATIVE KEY FIGURES
Robit presents alternative key figures to supplement the key figures given in the IFRS-compliant consolidated profit and loss accounts, consolidated balance sheets and consolidated cash flow statements. Robit considers that the alternative figures provide significant extra insight into Robit’s performance, financial position and cash flows. These figures are often used by analysts, investors and other parties.
The alternative key figures should not be examined separate from the IFRS key figures or as replacing the IFRS key figures. Not all companies calculate their alternative key figures in u uniform manner and, therefore, Robit’s alternative figures may not be directly comparable to those presented by other companies, even if they carry the same headings.
The following events affect comparability: costs relating to being listed on the stock exchange and share issue, acquisition costs and business restructuring costs.
| Comparable EBITDA ja EBITA
|
|
|
|
|
|
| EUR thousand |
Q4 2023 |
Q4 2022 |
2023 |
|
2022 |
| EBIT (Operating profit) |
1 192 |
-1 039 |
116 |
|
3 071 |
| Depreciation, amortization and impairment |
1 217 |
1 418 |
5 055 |
|
5 779 |
| EBITDA |
2 409 |
379 |
5 172 |
|
8 851 |
| Items affecting comparability |
-448 |
0 |
-168 |
|
0 |
| Comparable EBITDA |
1 961 |
379 |
5 004 |
|
8 851 |
| |
|
|
|
|
|
| EBIT (Operating profit) |
1 192 |
-1 039 |
116 |
|
3 071 |
| Amortisation of acquisitions |
34 |
217 |
487 |
|
888 |
| Impairments |
225 |
0 |
225 |
|
|
| EBITA |
1 451 |
-822 |
829 |
|
3 959 |
| Items affecting comparability |
-448 |
0 |
-168 |
|
0 |
| Comparable EBITA |
1 004 |
-822 |
660 |
|
3 959 |
| |
|
|
|
|
|
2.3 CALCULATION OF KEY FIGURES
| EBITDA: |
| EBIT + Depreciation, amortization and impairment |
| |
| EBITA |
| EBIT + Amortisation of customer relationships |
| |
| Net working capital |
| Inventory + Accounts receivables and other receivables – Accounts payables and other liabilities |
| |
| Earnings per share (EPS), EUR |
|
| Profit (loss) for the financial year |
|
| Amount of shares adjusted with the share issue (average during the financial year) |
|
| |
| Return on equity (ROE), % |
| Profit (loss) for the financial year |
x 100 |
| Equity (average during the financial year) |
| |
| Return on capital employed (ROCE), % |
| Profit before taxes + Interest expenses and other financing expenses |
x 100 |
| Equity (average during the financial year) + Interest-bearing financial liabilities (long-term and short-term loans from financial institutions, average during the financial year) |
| |
| Net interest-bearing financial liabilities |
| Long-term and short-term loans from financial institutions – Cash and cash equivalents – Short-term financial securities |
|
| |
| Equity ratio, % |
| Equity |
x 100 |
| Balance sheet total – Advances received |
| |
| Gearing, % |
| Net interest-bearing financial liabilities |
x 100 |
| Equity |
3. BREAKDOWN OF NET SALES
The IFRS 15 recognition of entries as revenue is identical within each business unit and market area.
| NET SALES |
|
|
|
|
|
|
| Net sales by business unit |
| EUR thousand |
Q4 2023 |
Q4 2022 |
Change % |
2023 |
2022 |
Change % |
| Top Hammer |
13 544 |
16 748 |
-19,1 % |
54 406 |
66 834 |
-18,6 % |
| Down the Hole |
4 864 |
5 827 |
-16,5 % |
20 862 |
24 897 |
-16,2 % |
| Geotechnical |
4 493 |
3 635 |
23,6 % |
17 648 |
20 231 |
-12,8 % |
| Total |
22 901 |
26 210 |
-12,6 % |
92 917 |
111 962 |
-17,0 % |
| |
|
|
|
|
|
|
| Net sales by market area |
|
|
|
|
|
|
| EUR thousand |
Q4 2023 |
Q4 2022 |
Change % |
2023 |
2022 |
Change % |
| EMEA |
10 820 |
12 546 |
-13,8 % |
47 279 |
48 651 |
-2,8 % |
| Americas |
5 433 |
6 156 |
-11,7 % |
20 840 |
26 349 |
-20,9 % |
| Asia |
2 293 |
2 767 |
-17,1 % |
8 950 |
11 686 |
-23,4 % |
| Australasia |
4 031 |
3 227 |
24,9 % |
14 835 |
13 892 |
6,8 % |
| East |
324 |
1 514 |
-78,6 % |
1 012 |
11 384 |
-91,1 % |
| Total |
22 901 |
26 210 |
-12,6 % |
92 917 |
111 962 |
-17,0 % |
4. FINANCING ARRANGEMENTS
The company’s cash and cash equivalents totalled EUR 11.2 million on 31 December 2023. In addition, the company has EUR 1.6 million in other financial assets and an undrawn credit facility of EUR 4.0 million. The company’s sufficient liquidity is secured by way of cash and cash equivalents, other financial assets and the credit facility.
The covenants of the parent company’s loans are based on the company’s net liabilities/EBITDA ratio and the company’s equity ratio. The covenants are tested on a quarterly basis. According to the financing agreement, the ratio of net liabilities to EBITDA at the rime of review of the covenant condition on 31 December 2023 may not be more than 3.50. The ratio of net liabilities to EBITDA on 31 December 2023 was 3.81 and therefore did not meet the covenant. The company obtained the consent of its main financier to the breach of the covenant in advance. The company has agreed with its main financier that other financial assets are included in the calculation of net liabilities.
The ‘net interest-bearing liabilities/EBITDA’ covenant of Robit Plc’s financing agreement did not meet the terms of the financing agreement on 31 December 2023. The company obtained from its main financier consent to breach of the covenant on 26 September 2023.
| INTEREST-BEARING LOANS |
| EUR thousand |
31.12.2023 |
31.12.2022 |
| Non-current borrowings |
|
|
| Loans from credit institutions |
22 111 |
22 073 |
| Other loans |
12 |
11 |
| Lease liabilities |
3 946 |
5 338 |
| Total non-current borrowings |
26 069 |
27 423 |
| |
|
|
| Current borrowings |
|
|
| Loans from credit institutions |
5 179 |
5 462 |
| Other loans |
0 |
10 |
| Bank overdrafts |
0 |
1 782 |
| Lease liabilities |
1 284 |
1 669 |
| Total current borrowings |
6 463 |
8 922 |
| |
|
|
| Total borrowings |
32 532 |
36 345 |
| 5. CHANGES TO PROPERTY, PLANT AND EQUIPMENT
|
|
| EUR thousand |
31.12.2023 |
31.12.2022 |
| Cost at the beginning of period |
55 562 |
53 794 |
| *Other changes |
-1 188 |
|
| Additions |
903 |
2 251 |
| Disposals |
-6 356 |
-195 |
| Reclassification |
-969 |
0 |
| Exchange differences |
-1 469 |
-288 |
| Cost at the end of period |
46 483 |
55 562 |
| |
|
|
| Accumulated depreciation and impairment at the beginning of period |
-30 634 |
-26 398 |
| *Other changes |
1 000 |
|
| Depreciation |
-4 082 |
-4 477 |
| Disposals |
5 128 |
131 |
| Reclassification |
969 |
0 |
| Exchange differences |
697 |
110 |
| Accumulated depreciation and impairment at the end of period |
-26 922 |
-30 634 |
| Net book amount at the beginning of period |
24 928 |
27 396 |
| Net book amount at the end of period |
19 561 |
24 928 |
| *Adjustments resulting from corrections to IFRS 16 calculations |
|
|
| |
|
|
| 6. GIVEN GUARANTEES
|
|
|
|
| EUR thousand |
31.12.2023 |
|
31.12.2022 |
| Guarantees and mortgages given on own behalf |
49 505 |
|
48 425 |
| Other guarantee liabilities |
48 |
|
49 |
| Total |
49 553 |
|
48 474 |
7. GOODWILL IMPAIRMENT TESTING
The amount of goodwill is reviewed at least annually in accordance with the IFRS provisions. The values of the goodwill testing variables are also revised if there have been material changes in business, competition, the market or other goodwill testing assumptions.
The company reorganised its Down the Hole business, dividing it into two separate business units, from the start of 2023: Down the Hole business, and Geotechnical business. In the situation at 31 December 2023, the company has carried out annual goodwill testing for the Top Hammer, Down the Hole and Geotechnical cash flow-generating units. In connection with this testing, the company has assessed the changes in the company’s operating environment and their impact on the company’s long-term profitability and cash flows. Based on the impairment testing, there is no need for goodwill write-downs.
8. DERIVATIVES
The company hedges the most significant net currency positions that can be forecast for time, volume and interest rate risk.
There were no open currency derivatives at the end of the review period.
On 8 June 2021, the company concluded a EUR 30 million financing agreement and, in connection with this, a EUR 10 million interest rate swap with an interest rate cap in order to hedge part of its exposure to variable interest rates. The company applies hedge accounting to the interest rate swap in accordance with IFRS 9. This effectively leads to recording the interest expenses of the hedged floating rate loan at a fixed rate in the profit and loss account.
The company’s main interest rate risk arises from long-term loans with floating interest rates that expose the Group’s cash flow to interest rate risk. The Group’s policy is to use, if necessary, a floating to fixed interest rate swap.
| Interest derivatives |
|
|
|
| EUR thousand |
31.12.2023 |
|
31.12.2022 |
| Interest rate swaps |
|
|
|
| Nominal value |
10 000 |
|
10 000 |
| Fair value |
569 |
|
848 |
