Annual Report 2007 - Panostaja

36 | Directors’ report
Directors’ report
THE GROUP’S FINANCIAL PERFORMANCE
Panostaja Group’s net turnover was EUR 90.8 million (EUR 57.8
million). Growth was the result of an increase in net turnover in all
business segments and of completed acquisitions.
The Group’s operating profit increased by 51.6% from the previous
year’s EUR 5.5 million to EUR 8.3 million, while profit before taxes
grew by 51.6% from EUR 4.9 million to EUR 7.5 million.
Profit for the financial year was EUR 5.9 million (EUR 8.6 million),
with EUR 5.6 million and EUR 0.3 million attributable to continuing
and discontinued operations respectively. Profit from discontinued
operations consisted of an additional purchase price for the
disposal of Pajakulma Oy.
The Group’s average number of employees during the financial year
was 571 (526). The payroll at year-end included 719 employees.
Panostaja Oyj
Parent company Panostaja Oyj’s net turnover amounted to EUR
0.02 million (EUR 0.02 million). Other operating income amounted
to EUR 0.49 (EUR 4.68 million).
Operating loss was EUR 1.04 million (the previous year showed
a profit of EUR 3.61 million). The parent company’s profit before
appropriations and taxes stood at EUR 0.61 million (EUR 5.17
million). The parent company’s profit for the financial year
amounted to EUR 0.62 million (EUR 5.17 million).
PANOSTAJA GROUP’S BUSINESS SEGMENTS
The Group has twelve business areas, which are reported under
five different segments.
Industrial construction
The industrial construction segment comprises Arme Group, which
is a subgroup operating in Kulloo, Naantali and Kouvola, carrying
out industrial insulation, exterior cladding, construction sheet-metal
panelling and scaffolding work. Panostaja Oyj’s holding in Arme Oy
is 69.9%. The company’s Managing Director is Jukka Pyykkönen.
The subgroup comprises Renetor Oy and Estonian-based Renetor
Oü, which provide industrial insulation and scaffolding installation
services.
The industrial construction segment’s net turnover increased
during the financial year to EUR 21.6 million (EUR 19.7 million)
and operating profit was excellent, standing at EUR 5.2 million
(EUR 4.4 million). The average number of employees during the
financial year was 161 (156). The 9.9% increase in net turnover
resulted from significant investments by industries operating in
Finland and growth in demand for scaffolding work. The segment’s
net turnover is expected to remain at the previous year’s level and
profitability is projected to remain healthy during the 2007/2008
period.
Wholesale trade
The wholesale trade segment consists of Eurotermo Group, KL-Parts
Group, Novacausa II Group and Ollinvara III Group. During the
financial year, Panostaja Group acquired KL-Parts Group, Novacausa
II Group and Ollinvara III Group.
Eurotermo Group is a wholesaler of heating, plumbing and
ventilation equipment operating in Helsinki, Espoo, Vantaa and
Tampere. Panostaja Group owns 59.7% of Eurotermo Oy. In all,
Eurotermo Oy has more than 400 shareholders. The subgroup’s
operating company is Lämpö-Tukku Oy, which is 100% owned by
Eurotermo Oy. The company’s Managing Director is Jouko Tyrkkö.
KL-Parts Group is a subgroup specialising in the supply of OEM
spare parts for Mercedes-Benz and BMW cars, with operations in
Tampere, Jyväskylä and Rovaniemi. Panostaja Group owns 100% of
KL-Parts Oy. The operating companies are KL-Varaosat Kari Lindfors
Oy, Jyväskylän KL-Varaosat Oy and Rovaniemen KL-Varaosat Oy,
which are 100% owned by KL-Parts Oy. The Managing Director of
the operating companies is Kari Lindfors.
Novacausa II Group is a Seinäjoki-based subgroup specialising
in fittings wholesale and services. Panostaja Group owns 100%
of Novacausa II Oy. The operating companies are Seinäjoen
Rakennustarvike ja Lukko Oy and Suomen Helakeskus Oy, which
are both 100% owned by Novacausa II Oy. The Managing Directors
of the operating companies are Juhani Lehtinen at Seinäjoen
Rakennustarvike ja Lukko Oy and Pekka Koskenkorva at Suomen
Helakeskus Oy.
Ollinvara III Group is a subgroup offering fastenings supplies and
related services, with operations in Helsinki, Tampere and Pori.
Panostaja Group owns 100% of Ollinvara III Oy. The operating
companies within Ollinvara III Group are Helsingin Laaturuuvi Oy,
Ruuvipojat Oy and Porin Pultti Oy, which are 100% owned by
Ollinvara III Oy. The Managing Directors of the operating companies
are Ari Suomalainen at Helsingin Laaturuuvi Oy and Porin Pultti Oy
and Harri Lahtinen at Ruuvipojat Oy.
During the last financial year, the wholesale trade segment’s net
turnover increased to EUR 29.7 million (EUR 12.6 million), while
operating profit for the period stood at EUR 1.5 million (EUR 0.2
million). The average number of employees during the financial
year was 133 (31). Acquisitions carried out during the period
significantly increased the segment’s net turnover and operating
profit. The segment’s net turnover and operating profit are
expected to grow during the 2007/2008 period.
Joinery industry
The company operating as the parent for the entire joinery industry
segment is Suomen Puunjalostus Oy, which is 100% owned by
Panostaja Oyj. The Managing Director of all companies within the
Suomen Puunjalostus Group is Tapani Harjunen.