Ceo has the word
The comprehensive improvement investments and structural changes made during the fall/winter of 2016 begins to slowly but surely produce results.
Adjusted for extraordinary Income/expenses have the operation during the first quarter of 2017 for the group on both revenue and earnings improved compared with the corresponding period of 2016 & 2015.
Compared with 2016, the revenues have been 55 % higher, and the result, the EBIT is now 19 % better.
Compared to 2015, the revenues have been approximately equal, but the result, the EBIT is now 49 % better
Trend of increase in orders received continues and quarter 2 looks to further improve compared with the previous year. In particular, the Parent company PolyPlank AB and the Subsidiary Polyfiber AS make significant improvements.
June 2017 will be an all-time record month intäktsmässigt for PolyPlank and several major orders is close to a, hopefully, for us positively crucial.
The applicable Subsidiary Fröseke Panel AB has the volume increased by 180 %, and profit, EBIT is 22 % better than the corresponding period in 2016. Panelmarknaden is, however, enormously expensive, and it requires a substantial increase in volumes or a completely different customer segments in order to achieve profitability and positive cash flow. The parent company has provided a group contribution at the end of march.
In order to develop Fröseke Panel to a profitable unit requires a completely different focus, and supplementing of other products that don’t really fit in PolyPlanks actual business model. At each meeting of the board be taken into consideration in the first instance, is best for the shareholders in the PolyPlank with regard to earnings and cash flow for the group.
Management and the Board of directors has therefore decided on a divestment/closure of Fröseke Panel AB of Negotiation with an interested party has commenced and a solution is expected to be ready during quarter 2, 2017. Regardless of which option the parent company’s board of directors decides on regarding Frösekes future, any earnings effects to be taken into account in the quarterly report for the second quarter of 2017.
Cay Strandén, CEO
The first quarter of 2017, the group
-
Sales for the period amounted to 7.2 MILLION (5.6).
-
The result after depreciation amounted to sek 2.0 MILLION (negative 0.5). The previous year’s results improved due to the impairment of the convertible loan of SEK 1.7 million.
-
The result after net financial items and tax amounted to sek -2,3 MILLION (negative 0.7). Earnings per share amounted to sek 0.05 (loss: 0.04). The number of shares at the end of the period amounted to sek 48 323 976 (19 032 370).
Introduction
Seasonal variations
Depending on the turnover of the content relating to products and markets, these seasonal variations is smoothed.
Important events in the group and the parent company
Thanks to the big bets and investments in the production plant and organization, you can now see the positive effects. New sales channels have been processed, and expectations greatly exceed last year’s outcome is on track to be met.
PolyPlank acquired the Norwegian sales company Polyfiber AS. Through the acquisition, the company has received, starting from 1 January 2017, a valuable base in Norway, through which the company’s systems products can be sold. Through the purchase of Polyfiber AS has PolyPlank signed an exclusive agreement for the Nordic region, with a German komposittillverkare, NATURinFORM GmbH. PolyPlank extends hereby their product range from 6 st to 32 st profiles of kompositplank.
PolyPlank has through its subsidiary Fröseke Panel AB signed a 1 year agreement with byggvaruhandelskedjan Byggmax with over 100 stores in the Nordic region. The agreement relates to the ongoing delivery of the wall panels in the MDF. Initially, it involves the annual delivery of approximately 2.0 MILLION. The potential is assessed large for increased volumes in the coming years. The agreement is strategically important for the Fröseke Panel and is expected to generate an increase in sales in Sweden, where the use of wall panels of MDF is expected to increase in the coming years. In addition, the company has received new orders from its Norwegian customer Bees European AS. The agreement relates to the ongoing delivery of wall and roof panel in the MDF during the period February to June 2017. Order value of about SEK 0.9 million. The potential is assessed large for the continued supply.
PolyPlank has received a new order from K&R Carlsberg in Gothenburg AB worth about MSEK 1.0. PolyPlank will deliver and assemble the two “eco-buildings” to Skandiafastigheter-Rammer.
PolyPlank AB (publ) at the end of 2016, the accumulated tax loss carryforwards of approximately 195 M, not used for offsetting or other purposes. These loss carry forwards can be a great financial asset if used right, which shall accrue to the company and its shareholders will benefit. Therefore, the company has given Abelco Investment Group AB (publ), mandated to identify alternative proposals for how PolyPlank be able to capitalize on and maximize the tax loss carryforwards in the short term, rather than to use them for offset of future profits.
Important events after the end of the reporting period
PolyPlank and Stora Enso have agreed to extend the contract 1 year starting from 1 June 2017 the current weekly supplies of hylsplugg. The total order value is about SEK 10 million. Together with Stora Enso, PolyPlank developed a återtagssystem for hylsplugg where PolyPlank first produces hylsplugg and send to Stora Enso, they are used in their products are sent out around the world, use the plug is then sent back to PolyPlank as recondition or recyklar them as needed. This closed loop system reduces environmental impact and gives the product long life and high quality of a sentence and a financial gain for the customer. PolyPlank has delivered hylsplugg to Stora Enso over 17 years and have a very close and effective cooperation.
PolyPlank has received a new order from NCC Sverige AB worth approximately SEK 0.9 million. PolyPlank will deliver 3 pcs of “eco-buildings” to the P-house BRF Arena in Luleå, sweden. The delivery takes place in June 2017. This was PolyPlanks first large order in Luleå and we spread out more and more across the country.
PolyPlank has received a new order from Skanska in Kalmar, sweden current delivery and assembly of balkongfronter to BRF Kalmarhus 22 hosted by 980 THOUSAND. The delivery is distributed over a number of months in 2017.
Sustainability and the Environment
Polyplank is one of the most developed companies in the Swedish manufacturing industry in respect of production that follow the circular economy grounds.
By the customer to choose our products so we can help them to reach their environmental goals.
PolyPlanks founder realized early on that the planet has finite resources, while the amount of waste increases. They were then the pioneers in the processing of residual waste and today, role models for the transition towards a more climate-resilient and resource-efficient manufacturing industries. Their foresight makes to the group today, through a unique process, is able to offer a materialåtervinningsbaserat materials consisting of thermoplastics and organic fibres. Termoplasterna and the organic fibers come from the use of commodities that fall from households and industry. Instead of the potential avfallsmiljöproblem they become valuable components that can substitute for virgin natural resources. The unique process also allows that it made the material simple and resource-efficient can be recycled.
One of the company groups, hylspluggen, included in a closed loop system where the PolyPlank has developed a system for the withdrawal of their products, and after a reconditioning process to sell them again if they have maintained quality. Damaged plug can also be processed on to the new plug.
PolyPlankmaterialet also has other physical properties that generate environmental benefits. Examples of these are that the material does not need to be painted and it can withstand moisture. These properties make the products as directed against the whole people we did not receive long and maintenance-free life cycles.
PolyPlank want to continue being at the forefront of climate-smart and economically advantageous products and solutions. Through collaborative research Mistra-REES so we have, together with Academia and Industry the opportunity to deepen our knowledge and find new solutions, but also the opportunity to share our experience as a climate-smart producers. Ericsson, Volvo Cars, Linköping University, Chalmers and Lund University are some of the other participants. Industrial symbiosis, functional sales, and life cycle assessment are examples of the areas for development that are being studied.
Overall, this gives to PolyPlankmaterialet and products made of this, in addition to reduced environmental impact, also creates long-term cost savings for the customer.
Business and Market
The business
PolyPlank bases its activities on a process technology for the production of a composite material consisting of wood fibers and recycled thermoplastics. This composite is manufactured of extruded, injection moulded and pressed products. Customers are in both the public and private sector.
The market
The group focuses on five main product groups:
-
System for the real estate sector
-
System for noise reduction
-
Profiles for other applications
-
Hylsplugg to the paper industry
-
Panels for indoor use
System to the real estate sector
The business area includes a number of different application systems: environmental building, Terassavskiljare, Screens, Balconies & external corridors and Poly Laundry Systems (PLS). The company’s focus has in recent years intensified within this area. Significant investments have been carried out have also given a position in which the awareness of our systems products increased. In 2011 we developed a new system where polyplankprofiler be combined with aluminium profiles. The combination provides the opportunity to create new designs and develop the design.
The market potential within the product group is very large, then all real estate companies will always have significant renovation needs during each fiscal year.
System for noise reduction
Polyplank has a well-developed range of products for the reduction of noise. The company will continue to process the customers in this segment. The market for noise attenuation will increase as greater demands from governments and individuals regarding the reduction of harmful noise levels in the society.
Profiles for other applications
The business area includes the profiles for further processing in a number of areas.
Also the homogeneous träkompositprofilen BeachPlank to terassgolv included in this business area. Terassplankor in träkomposit has gained a strong foothold in many countries outside the Nordic region, primarily in north America but also western Europe. The product can with advantage replace the wood trallvirke and stone materials, e.g. patios.
Hylsplugg to the paper industry
The company is currently supplying under contract to a large company in the paper industry where hylspluggen is used as the load and a transport in the pappersbalar.
The ambition is to continue to develop our hylspluggar to further strengthen our position as a competitive player in this field.
Panels for indoor use
In the wholly-owned subsidiary Fröseke Panel AB produced panels in MDF, solid chipboard, for use as panels indoors. An automatic machining process of various types of panelstrukturer for wall and ceiling coverings. The discs are coated and are fully ready for the set of buyers/users. Sanding and painting on location has thereby been reduced, which gives a great deal of time.
Prospects
The market potential in the real estate sector is considered as large and the company believes that our competitive advantages over existing materials on the market gives us good prospects for the future. The products are manufactured by raw materials that have already been out in the consumer market or fall from the industry. Buying customers cherish through conscious purchasing choices about their own immediate environment and in the big picture, even the global environment.
PolyPlank will continue to develop competitive products with functional design, based on customer needs, that are economically and environmentally more favourable alternative than the equivalent based on, inter alia, pressure-treated wood, tropical hardwood and coated wood. Polyplank shall also serve to reduce customers ‘ maintenance costs.
Funding and liquidity
The liquid assets amounted at the end of the reporting period to sek 0.6 MILLION (1.2).
The group’s interest-bearing liabilities amounted at the end of the reporting period to 11.3 M (10.3). These consist of long-term liabilities MSEK 1.9 (0), loans from the principal owner Stångåkonsult in Kalmar HB 4,2 (5,4) and other short-term interest-bearing liabilities of SEK 5.2 million (sek 4.9 m).
Investment
Investments in tangible fixed assets during the first quarter amounted to SEK 1.3 million (0.9 million).
PolyPlank acquired the Norwegian sales company Polyfiber AS. Through the acquisition, the company has received, starting from 1 January 2017, a valuable base in Norway, through which the company’s systems products can be sold. The purchase price amounts to a fixed proportion of 0.6 MNOK, and a variable component which is the max amount of 0.6 MNOK, depending on the result for the year 2017. The acquisition analysis is preliminary.
Taxes
Polyplank AB (publ) has tax loss accumulated tax loss carry-forwards amounted to amounted to sek 178.7 M at the 2016 tax year. OFK Plast AB has tax loss accumulated tax loss carry-forwards amounted to SEK 3.3 million at the 2016 tax year. The equivalent for the Fröseke Panel 8.9 MILLION. The group’s tax loss accumulated tax loss carry forwards amounts to SEK 190.9 million. Valuation price of unutilized loss carryforwards is capitalized only to the extent that it is very likely that these will entail lower tax payments in the future. Of prudence, is not recognised any deferred tax assets in PolyPlank AB (publ) or its subsidiaries.
Transactions with related parties
Owner Stångåkonsult in Kalmar HB has a claim on the company is about 4.2 M (5,4) march 31, 2017, which relates to borrowed funds.
Purchases from RA in Hogsby AB, where Stångåkonsult in Kalmar HB is the largest shareholder, has in the first quarter of 2017 amounted to eur 0.5 MILLION (0.8). Polyplank use the RA’s patented bearing design in some of their products for the real estate sector.
All purchases and sales to related parties were made at market conditions.
The parent company
Sales for the first quarter amounted to SEK 5.6 m (5,1). The result after depreciation amounted to MSEK-0.8 (was 1.0). Liquidity as per 31 march amounted to SEK 0.4 m (0.4).
The number of employees in the parent company was, on average, 17 (13) during the reporting period.
Risks and uncertainties
The group’s risk exposure is described in the annual report for 2015 (page 15 and page 49-50).
Accounting principles
This interim report is prepared in accordance with IAS 34 “Interim financial reporting” and the Swedish annual accounts Act. The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU and RFR 1 Supplementary accounting rules for groups. The parent company applies the annual accounts Act and the Swedish financial reporting board’s recommendation RFR 2 “Accounting for legal entities”. The same accounting policies and methods of computation applied in the interim report as in the latest annual report.
New accounting principles
The contents of the new or revised IFRS and interpretation statements from IFRIC that came into force on 1 January 2017 has no effect on the group’s or parent company’s financial position or results of operations.
The board of directors and the managing director hereby certify that the interim report gives a true and fair overview of the group’s operations, position and results and describes significant risks and uncertainties that the company faces.
Färjestaden 19 may 2017
The board of directors
Leif Jilkén Annika Fernlund
Chairman Of The Board
Henrik von Heijne Mette Wichman
Member Board Member Board Member
Cay Strandén
Executive director
Auditors ‘ review report
This interim report has not been subject to auditors ‘ review.
Upcoming financial reports
-
Interim report January-June 2017, August 18, 2017
-
Interim report January-september 2017, 17 november 2017
For further information
Cay Strandén, CEO, tel 0485-66 44 80
Marina Abrahamsson, financial manager, tel 0485-66 44 80
This information is such information that the Company is obliged to publish under the EU marknadsmissbruksförordning. The information was submitted, by the above contact person in the government, for publication on 19 may 2017 there is 09:00 CET.
Polyplank AB (publ)
Storgatan 123, SE-386 35 Färjestaden
Tel 0485-66 44 80 Fax 0485-66 44 89.
E-mail info@polyplank.se, www.polyplank.se
Org.no 556489-7998
Statement of comprehensive income for the group
The statement of financial position for the group
As at 31 march 2017 (THOUSAND)
2017-03-31
2016-03-31
2016-12-31
Assets
Non-current assets
Intangible assets
Capitalized expenditure for development etc
574
528
399
Patents, licenses and trademarks
P:a intangible assets
574
528
399
Tangible fixed assets
Buildings and land
2 058
2 144
2 079
Machinery and other technical facilities
10 909
12 305
10 852
Leasehold improvements
155
257
180
Equipment, tools and installations
3 193
1 280
2 193
S: (a) tangible fixed assets
16 315
15 986
15 304
Financial assets
Participations in associated companies
S: (a) financial assets
Total non-current assets
16 889
16 514
15 703
Current assets
Inventories
7 115
4 961
4 013
Accounts receivable
635
1 337
649
Tax assets
252
310
198
Other receivables
1 685
4 239
1 762
Prepaid costs and accrued income
744
595
377
Cash and cash equivalents
600
1 156
559
Total current assets
11 031
12 598
7 558
Total assets
27 920
29 112
23 261
(SEK in thousands)
2017-03-31
2016-03-31
2016-12-31
Equity
Share capital (48 323 976 shares, preceding year 19 032 370 shares)
2 416
952
2 416
Other paid-in capital
67 159
45 495
67 159
Other reserves
1 398
1 398
1 398
Retained earnings including
-2 258
-58 907
-64 209
Equity attributable to owners of the parent
4 506
306
6 764
Liabilities
Long-term interest-bearing liabilities
1 874
2 393
Deferred tax liability
S: (a) long-term liabilities
1 874
2 393
Short-term interest-bearing liabilities
9 382
10 261
4 185
Accounts payable
4 903
8 984
3 786
Other current liabilities
2 423
4 825
1 752
Accrued expenses and deferred income
Provisions
4 692
140
4 596
140
4 241
140
Current liabilities
21 540
28 806
14 104
Total liabilities
22 709
28 806
16 497
Total equity and liabilities
27 920
29 112
23 261
Interest-bearing liabilities
11 256
10 261
6 758
Consolidated statement of changes in equity
Attributable to Parent company shareholders
Amounts in KSEK
The share capital of the
Other
paid-in capital
Other
reserves
Retained earnings incl.
this year’s results
Total shareholders ‘ equity
Opening equity, 1 January 2016
5 427
44 891
1 398
-58 148
-5 598
The end result
–
–
-759
-759
Total comprehensive income
5 427
44 891
1 398
-58 907
-6 357
Transactions with owners
New issue
920
6 704
–
–
7 624
Issue costs
-705
-705
Write-down of share capital
-5 395
-5 395
Total contribution from and distributions to Shareholders recognised directly in equity
-4 475
604
6 919
Closing equity 31 march 2016
952
45 495
1 398
-58 907
306
Opening equity, 1 January 2017
2 416
67 159
1 398
-64 209
6 764
The end result
–
–
-2 258
-2 258
Total comprehensive income
5 427
44 891
1 398
66 467
4 506
Transactions with owners
–
–
–
–
–
Total contribution from and distributions to Shareholders recognised directly in equity
–
–
–
–
–
Closing equity 31 march 2016
5 427
44 891
1 398
66 467
4 506
The parent company’s income statement
(SEK in thousands)
Jan-March
2017
Jan-March
2016
The full year
2016
Sales
5 757
5 113
21 023
Change in inventories of products in progress, finished goods and work in progress on behalf of others
1 562
542
964
Other income
66
1 797
6 814
7 385
7 452
28 801
Raw materials and consumables
-2 830
-2 080
-9 727
Other external costs
-2 285
-2 123
-9 872
Personnel costs
-2 741
-1 894
-9 094
Depreciation, amortisation and impairment of tangible and intangible fixed assets
-295
-380
-1 209
Impairment of current assets
-555
Other operating expenses
-7
Operating profit
-773
974
-1 656
Financial income
1
Financial expenses
-134
-216
-652
Net financial items
-34
-216
-651
Profit after financial items
-907
758
-2 307
Appropriations
Paid
-1 130
-6 750
Profit before tax
-2 037
758
-9 057
Tax
This year’s results
-2 037
758
-9 057
Earnings per share (SEK), before and after dilution
Loss: 0.04
0,04
-0,18
Number of outstanding shares in thousands
48 323
19 032
48 291
The average number of shares in thousands
48 323
14 508
22 366
The Parent Company’s Balance Sheet
(SEK in thousands)
2017-03-31
2016-03-31
2016-12-31
Assets
Non-current assets
Intangible assets
Capitalized expenditure for development etc
356
528
399
Patents, licenses and trademarks
P:a intangible assets
356
528
399
Tangible fixed assets
Buildings and land
2 074
2 160
2 095
Machinery and other technical facilities
1 455
1 432
1 230
Leasehold improvements
155
257
180
Equipment, tools and installations
3 193
1 280
2 193
S: (a) tangible fixed assets
6 877
5 129
5 698
Financial assets
Participations in group companies
1 407
485
485
S: (a) financial assets
1 407
485
485
Total non-current assets
8 640
6 142
6 582
Current assets
Inventories
5 271
3 139
3 319
Accounts receivable
333
1 097
422
Receivables from group companies
3 355
7 574
2 666
Tax assets
187
187
147
Other short-term receivables
683
2 132
1 325
Prepaid costs and accrued income
719
553
369
Cash and cash equivalents
383
394
502
Total current assets
10 931
15 076
8 750
Total assets
19 571
21 218
15 332
(SEK in thousands)
2017-03-31
2016-03-31
2016-12-31
Restricted equity
Share capital (48 323 976 shares)
(last year, 19 032 370 shares)
2 416
952
2 416
Revaluation reserve
1 360
1 360
1 360
Total share capital and reserves
3 776
2 312
3 776
The accumulated loss
Premium
65 071
54 196
65 071
Balanced loss
-64 794
-55 738
-55 738
The end result
-2 037
758
-9 057
Subtotal
-1 761
-782
276
Total shareholders ‘ equity
2 015
1 530
4 052
Provisions
Guarantees
140
140
140
Total provisions
140
140
140
Liabilities
Long-term interest-bearing liabilities
600
713
Total long-term liabilities
600
713
Short-term interest-bearing liabilities
8 280
7 822
3 431
Accounts payable
2 844
5 211
2 444
Liabilities to group companies
386
144
386
Other current liabilities
1 577
3 035
733
Accrued expenses and deferred income
3 729
3 336
3 433
Total current liabilities
16 816
19 548
7 501
Total equity and liabilities
19 571
21 218
15 332
Of which interest-bearing liabilities
8 880
7 822
4 144
The parent company’s egetkapitalräkning
Amounts in KSEK
Share capital
Uppskriv – revaluation
Share premium reserve
Retained earnings
This year
results
Total
Opening equity, 1 January 2016
5 427
1 360
42 803
-33 130
-22 608
-6 148
This year’s results
–
–
758
758
Other comprehensive income
–
–
–
–
Total comprehensive income
5 427
1 360
42 803
-33 130
-21 850
-5 390
Transactions with shareholders
New issue
920
6 704
7 624
Issue costs
–
-705
–
–
-705
Write-down of share capital
-5 395
5 395
Total contribution from and distributions to Shareholders, recognised directly in equity
-4 475
11 394
–
–
6 919
Closing shareholders ‘ equity
31 march 2016
952
1 360
54 197
-33 130
-21 850
1 530
Opening equity, 1 January 2017
2 416
1 360
65 071
-55 738
-9 057
4 052
This year’s results
–
–
-2 037
-2 037
Total comprehensive income
5 427
1 360
42 803
-33 130
-11 094
2 015
Transactions with shareholders
–
–
–
–
–
–
Total contribution from and distributions to Shareholders, recognised directly in equity
–
–
–
–
–
–
Closing shareholders ‘ equity
31 march 2017
5 427
1 360
42 803
-33 130
-11 094
2 015
Consolidated statement of cash flows in summary
Amounts in KSEK
Jan-March
2017
Jan-March
2016
The full year
2016
Cash flow operating activities
-1 484
-1 552
-10 969
Changes in working capital
-1 723
-1 482
917
Cash flow investing activities
-1 430
-912
-2 416
Cash flow financing activities
4 678
2 850
12 707
Net cash flow
41
-1 096
239
Cash and cash equivalents at beginning of period
559
2 252
320
Cash and cash equivalents at end of period
600
1 156
559
Parent company cash flow statement in summary
Jan-March
2017
Jan-March
2016
The full year
2016
Cash flow operating activities
-539
-423
-7 077
Changes in working capital
-2 504
-2 609
-2 578
Cash flow investing activities
-1 812
-912
-2 183
Cash flow financing activities
4 736
2 940
12 144
Net cash flow
-119
-1 004
306
Cash and cash equivalents at beginning of period
502
1 398
196
Cash and cash equivalents at end of period
383
394
502
Data per share
Mother-
the company
Mother-
the company
Mother-
the company
The group
The group
The group
2017-03-31
2016-03-31
2016-12-31
2017-03-31
2016-03-31
2016-12-31
Number of shares at the end of the
of period, thousands
48 324
19 032
48 324
48 324
19 032
48 324
Earnings per share, SEK
Loss: 0.04
-0,05
-0,18
-0,05
Loss: 0.04
-0,14
Shareholders ‘ equity per share
0,04
0,04
0,08
0,09
neg
0,14
Key performance indicators
The parent company
The parent company
The parent company
The group
The group
The group
Jan-March
2017
Jan-March
2016
The full year
2016
Jan-March
2017
Jan-March
2016
The full year
2016
Return on total capital, %
neg
neg
neg
neg
neg
neg
Operating margin, %
neg
neg
neg
neg
neg
neg
Profit margin, %
neg
neg
neg
neg
neg
neg
Gross profit margin, %
78,0
63,2
52,2
70,0
64,9
53,4
Equity / assets ratio %
10,3
7.2 the
26,4
16,1
neg
29,1
Debt / equity ratio
2,5
5.11 the
neg
2,49
neg
1,0
Interim report q1 2017
