DGAP-News: Financial results, 1-6/2011

Harju Elekter

03.08.2011 13:37
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Overview with the balance sheet and the income statement

Estonia, 2011-08-03 13:37 CEST (GLOBE NEWSWIRE) —
The financial indicators of the Group in the reporting period demonstrated
improvement trends. In Q2, the sales revenue of the Group increased by one
third to 11.1 million euros and during the 6 months by more than one fifth to
20.5 million euros. At the same time, the operating profit in Q2 2011 was
540,000 euros increasing three times compared to the same period a year before
and in H1 700,000 euros, increasing 2.8 times compared to the H1 2010.

Key figures (EUR–000) Q2 2011 Q2 2010 H1 2011 H1 2010 2010
Sales revenue 11,112 8,338 20,539 16,909 40,885
EBITDA 898 526 1,397 946 2,898
Operating profit 540 178 700 250 1,519
Net profit for the current period 1,164 640 1,329 1,163 2,295
Incl. equity holders of the parent 1,077 588 1,258 1,160 2,173
EPS (EUR) 0.06 0.03 0.07 0.07 0.13

The sales revenue of the production segment increased by more than 37% in the
reporting quarter and over 23% within 6 months, traditionally amounting to the
largest share – 88.7% (87.1%) of the sales revenue. The sale of miscellaneous
electrical installations increased by 45% to 9.2 million euros in the Q2,
accounting for 93% of the sales revenue of the reporting quarter, and increased
by more than 24% to 16.4 million euros within 6 months, making up 90% of the
sales revenue of the production segment.

An increase in economic growth in the EU countries at the end of 2010, and at
the beginning of this year, has resulted in improvement of the economic
situation in the domestic markets of the Group. Sales have increased the most
to the Finnish market -in Q2 more than 58% up to 5.1 million euros and during
the 6 months by 46% up to 9.3 million euros. At the same time, also the sales
of production companies of the Estonian segment to the Finnish market increased
by over 75%. In the reporting quarter, the sales of products and services to
the Estonian market amounted to 4.3 million euros, increasing by 44% compared
to the reference period and by 7.6 million euros within 6 months, representing
growth of over 30% relative to the reference period. Developments in the
Lithuanian market have been more modest. Totally, the domestic markets
(Estonia, Lithuania and Finland) of the Group–s companies prevailed, where
91.8% (83.8%) of the Group–s products and services were sold. 63% (65%) of
Group products were sold outside of Estonia.

In the second quarter, expenses of the operating activities increased by 29.3%,
which was by 4 percentage points lower than the growth rate of sales revenue
and expenses increased by 18.8% within six months, which was by 2.7 percentage
points lower than the growth rate of sales revenue.

In the second quarter, there was an average of 421 (Q2 2010:423) and in H1 2011
an average of 419 (H1 2010:427) people working in the Group. As at the balance
day on 30 June, there were 457 people working in the Group, which were 17
employees more than on the beginning of the year and 11 employees more than a
year before. Within 6 months, a total of 3,768 (3,363) thousand euros was paid
in wages and paymentsto the employees and the average wage per employee was
1,472 (1,311) euros.

Operating profit of Q2 2011 was 540,000 (Q2 2010: 178,000) euros and EBITDA was
898,000 (Q2 2010: 526,000) euros. Return of sales for the period was 4.9%,
which was 2.8 per cent point better compared to the same period last year and
return of sales before depreciation was 8.1%, improving by 1.8 per cent point
comparing to the Q2 2010. Operating profit of the H1 2011 was 700,000 euros,
which was 2.8 times more thank comparing period and EBITDA was 1,397,000 euros,
growth 47.6%. Return of sales before depreciation in H1 was 6.8% (H1 2010:
5.6%) and return of sales for the period 3.4%, which was 1.9 per cent point
better than a year before.

In the accounting quarter the Group consolidated from the related company a
profit of 79,000 (Q2 2010: 102,000) euros and within the 6 months 109,000 (H1
2010: 57,000) euros. In the Q2, net financial income increased by 229,000 euros
to 781,000 euros, but declined by 294,000 euros to 775,000 euros within 6
months. In the reporting period, dividend income was received more by 235,000
euros, totalling 795,000 euros. At the same time, 80,000 shares in PKC Group
Oyj were sold in the Q1 2010 and financial income from selling the shares was
522,000 euros.

Overall, the consolidated net profit of the Q2 2011 was 1,164,000 (Q2 2010:
640,000) euros, of which the share of the owners of the parent company was
1,077,000 (Q2 2010: 588,000) euros. In Q2 EPS were 0.06 (Q2 2010: 0.03) euros.
In the H1 2011, earnings per share amounted 0.07 euros. The consolidated net
profit increased during the first half of the year by 14.2% and was 1,329,000
euros, of which the share of the owners of the parent company was 1,258 (H1
2010: 1,160) thousand euros.

In H1 2011 the Group invested 1,057,000 euros in real estate, 294,000 euros in
tangible fixed assets and 67,000 euros in intangible fixed assets, totally
1,418,000 euros. During the compared period the Group invested 245,000 in real
estate, 2,051,000 in tangible fixed assets and 31,000 euros in intangible fixed
assets, totally 2,327,000 euros, of which 1.9 million was acquired subject to
financial lease conditions.

Andres Allikmäe
Member of the Board

For more information: Interim report 1-6/2011; Mrs Karin Padjus, FO, phone +372
674 7403

AS HARJU ELEKTER
BALANCE SHEET, 30.06.2011
Consolidated, unaudited

Group
in thousands EUR
ASSETS 30.06.11 31.12.10
Cash and cash equivalents 478 2 400
Trade receivables and other receivables 6 957 6 479
Prepayments 109 123
Prepaid income tax 27 0
Inventories 7 668 5 411
TOTAL CURRENT ASSETS 15 239 14 413
Investments in associates 789 680
Other long-term financial investments 21 847 21 539
Investment property 9 566 8 711
Property, plant and equipment 9 201 9 350
Intangible assets 436 421
Total non-current assets 41 839 40 701
TOTAL ASSETS 57 078 55 114
LIABILITIES AND OWNERS– EQUITY
Interest-bearing loans and borrowings 1 643 1 539
Trade payables and other payables 6 3775 178
Tax liabilities 930 915
Income tax liabilities 11 19
Short-term provision 66 79
TOTAL CURRENT LIABILITIES 9 027 7 730
NON-CURRENT LIABILITIES 1 869 1 838
TOTAL LIABILITIES 10 896 9 568
Share capital 11 760 10 737
Paid-in capital over/under par 0 384
Restricted reserves 21 701 21 396
Retained earnings 11 104 11 440
TOTAL OWNERS– EQUITY 44 565 43 957
Minority interests 1 617 1 589
TOTAL EQUITY 46 182 45 546
TOT.LIABILIT.AND OWNERS– EQUITY 57 078 55 114

INCOME STATEMENT, 1-6/2011
Consolidated,unaudited

EUR–000
GROUP Q2 2011 Q2 2010 H1 2011 H1 2010

NET SALES 11 112 8 338 20 539 16 909
Cost of goods sold -9 183 -7 079 -17 208 -14 488

Gross profit 1 929 1 259 3 331 2 421

Marketing expenses -542 -436 -1 035 -841
Administrative expenses -819 -641 -1 561 -1 334
Other revenue 4 5 5 24
Other expenses -32 -9 -40 -20

Operating profit 540 178 700 250

Net financial incomes/expenses 781 552 775 1 069
Income from subsidiaries 79 102 109 57

Profit from normal operations 1 400 832 1 584 1 376

Corporate Income tax -236 -192 -255 -213
Profit after taxes, incl 1 164 640 1 329 1 163

Net profit for the year 1 077 588 1 258 1 160
Non-controlling interest 87 52 71 3

Basic earnings per share 0,06 0,03 0,07 0,07
Diluted earnings per share 0,06 0,03 0,07 0,07

Karin Padjus
FO
Tel +372 674 7403

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Language: English
Company: Harju Elekter

Estonia
Phone:
Fax:
E-mail:
Internet:
ISIN: EE3100004250
WKN:

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