Finnish entrant into the 60th Eurovision song contest
to be held in Vienna, Austria towards the end of May
is Pertti Kurikan Nimipäivät (Pertti Kurikka's Name Day).
The punk music playing band consist in its entirity
of people with Down syndrome. Their song Aina Mun Pitää
("I always have to...") won by getting 36,2% of the popular
vote in the televoting, besting its closest rival Satic Circus
by over 10%.
Eurovision song contest has come to known
in a forum to raise social issues and other
controversial subjects. Just last year the
winner was an openly gay drag artist Conchita Wurst.
Members of Pertti Kurikan Nimipäivät met at a workshop for the mentally
disabled. Their aim is to raise awareness for people with Down's Syndrome
Saturday, 28 February 2015
Tallink's ship order from Turku yard confirmed
A binding contract for the construction of a new cruise ferry has now been signed between Tallink Silja Oy, a Finnish subsidiary of Estonian AS Tallink Grupp (TAL: TAL1T) and Meyer Turku Oy, the recently acquired Finnish arm of Meyer Werft GmbH. Teollisuussijoitus (Industry Investment, Finnish government-owned investment firm) has 30% minority stake in Meyer Turku. The parties had signed a Letter Of Intent in December. Tallink is ordering a 230-million 212-metre long LNG-powered fast ferry designed to carry 2800 passengers.
The deal is important for the large subcontractor network in the area. Many small to medium sized engineering firms deliver much of their revenues from the sector and maintain critical competences, one of the reasons why maintaining Turku’s shipyard as well as Rauma’s, Pori’s and Helsinki’s is seen so vital for the entire Finnish maritime cluster. Local steel firms such as SSAB [OMXS, OMXH: (SSAB A, SSAB B)] and Outokumpu (OMXH: OUT1V) could vie for some materials deliveries.
Things are looking up in Turku for the moment, with much of the current layoffs presumably ending and new temp recruits coming with 30% more work next year. In total building the ship requires an estimated 2000 man hours of work. Over 80% of the total value of labour and components is expected to be created locally. Delivery is expected in early 2017 and Tallink has an option for a sister ship. The ferry is expected to serve Tallinn-Helsinki route.
The deal is important for the large subcontractor network in the area. Many small to medium sized engineering firms deliver much of their revenues from the sector and maintain critical competences, one of the reasons why maintaining Turku’s shipyard as well as Rauma’s, Pori’s and Helsinki’s is seen so vital for the entire Finnish maritime cluster. Local steel firms such as SSAB [OMXS, OMXH: (SSAB A, SSAB B)] and Outokumpu (OMXH: OUT1V) could vie for some materials deliveries.
Things are looking up in Turku for the moment, with much of the current layoffs presumably ending and new temp recruits coming with 30% more work next year. In total building the ship requires an estimated 2000 man hours of work. Over 80% of the total value of labour and components is expected to be created locally. Delivery is expected in early 2017 and Tallink has an option for a sister ship. The ferry is expected to serve Tallinn-Helsinki route.
Tuesday, 24 February 2015
Savo-Solar IPO, planned listing
Finnish solar thermal collectors manufacturer Savosolar is conducting an Initial Public Offering. It has also left an application to be listed in Nasdaq First North Sweden. The expected ticker is SAVOS and trading is expected to commence on or about April 2 2015. S. If the FN Listing occurs, the Company expects trading to commence on First North Sweden on or about 2 April 2015. Financial advisor is Mangold Fondkommission AB. Finnish side is handled by FIM Sijoituspalvelut Oy.
In 2014 the company had sales of just over a million Euros in 2014 (nearly doubled from a year ago). Operating loss climbed to 2.08 million from 1.67 million in 2013. Reported result improved to -1.2 million from -1.8 million on account of an approximately one million extraordinary income from capital adjustments related to ongoing restructuring. This since in late 2013 the company sought corporate reorganization after losing its equity. The courts accepted the plan in early 2014. The big order from Denmark worth a total of 1.6 million, which is mostly delivered by now, was a transformational going forward following the debt reorganization. The company says has to invest in more capacity to be able respond to tenders on multiple projects it has been asked to make an offer for since landing that deal.
Savosolar’s products are based on a nano-technology assisted vacuum coating process; coating the entire absorber structure post assembly. The company promises highest efficiency available in the market. Some reference customers include Ruukki Construction, now a member of SSAB and Løgumkloster Fjernvarme district heat plant. Seventeen counties and four continents have been supplied with solutions used in buildings, industrial processes and water heating. The company says its main competitors delivering large systems and having their own production can be counted with one hand.
Currently the company has 3,258,960 shares divided into two different classes. Up to 2,036,850 new shares (and a maximum of 750,000 more if the Offering is oversubscribed) are being offered at 2 Euros per share (SEK amount to be announced later). All shares will be converted into class A shares if the Offering is successful and the share is listed. Currently B-share holders have some special rights in regaining their investment. In total new shares represent a maximum of about 38.5% (46.1%) of total shares. This would translate to a market value of around 10.6 million Euros (12.1 million).
Regarding shareholders, Finnish government-backed Cleantech Finland has invested in the firm through Cleantech Invest Oyj (18.53% of shares and votes as per 19.2.2015). Finnish Innovation Fund Sitra is the largest owner (28.35%). Other notable owners include Saar-Savon Osuuspankki (12.43%), Clean Future Fund Ky (5.89%) and company CTO Kai Pischow (also 5.89%). Sitra has commited to subscribe 28.35% of the offer shares. Suur-Savon Osuuspankki and Cleantech Invest have made a smaller commitment. Assuming full subscription, their shareholdings according to Savo-Solar would be 27.25 %, 12.82 % and 10.01 %. Shares held before the offering will be locked up for 12 months.
Revenue target for 2015 is 4 million and operating profit can be positive by earlier in H1 2016. Long-term targets are gross margin of >30%, EBITDA margin of 17-18% and net margin of 11% Without the expected further funding from the Offering, the current working capital would not have been sufficient to fulfil working capital needs arising in the next 12 months.
Current shareholders have the ability to pay their subscriptions by setting off loans they have given to the company proportionate to the subscription price. Assuming 2,036,850 new shares are subscribed, Offer expenses are expected to reach 0.6 million Euros, half of which go to underwriting commitments. Out of the remaining expected net proceeds of 3.5 million, a maximum of 1.1 million may be paid by offsetting loans. This would mean 2.4 million of cash-in that would cover expected 1.7 million working capital need for the next 12 months. The remaining 0.7 million is earmarked to production capacity investments in collector assembly and other required machinery.
Company Is yet to prove it can operate a profitable business. Much of its early development has been enabled by loans and grants, such as over 2 million from Tekes. Much of the current debt is being written down with restructuring going on until 2018. Current working capital is sufficient until early April, so you could say Offering is being done in the nick of time. The Offering is fully underwritten.
In 2014 the company had sales of just over a million Euros in 2014 (nearly doubled from a year ago). Operating loss climbed to 2.08 million from 1.67 million in 2013. Reported result improved to -1.2 million from -1.8 million on account of an approximately one million extraordinary income from capital adjustments related to ongoing restructuring. This since in late 2013 the company sought corporate reorganization after losing its equity. The courts accepted the plan in early 2014. The big order from Denmark worth a total of 1.6 million, which is mostly delivered by now, was a transformational going forward following the debt reorganization. The company says has to invest in more capacity to be able respond to tenders on multiple projects it has been asked to make an offer for since landing that deal.
Savosolar’s products are based on a nano-technology assisted vacuum coating process; coating the entire absorber structure post assembly. The company promises highest efficiency available in the market. Some reference customers include Ruukki Construction, now a member of SSAB and Løgumkloster Fjernvarme district heat plant. Seventeen counties and four continents have been supplied with solutions used in buildings, industrial processes and water heating. The company says its main competitors delivering large systems and having their own production can be counted with one hand.
Currently the company has 3,258,960 shares divided into two different classes. Up to 2,036,850 new shares (and a maximum of 750,000 more if the Offering is oversubscribed) are being offered at 2 Euros per share (SEK amount to be announced later). All shares will be converted into class A shares if the Offering is successful and the share is listed. Currently B-share holders have some special rights in regaining their investment. In total new shares represent a maximum of about 38.5% (46.1%) of total shares. This would translate to a market value of around 10.6 million Euros (12.1 million).
Regarding shareholders, Finnish government-backed Cleantech Finland has invested in the firm through Cleantech Invest Oyj (18.53% of shares and votes as per 19.2.2015). Finnish Innovation Fund Sitra is the largest owner (28.35%). Other notable owners include Saar-Savon Osuuspankki (12.43%), Clean Future Fund Ky (5.89%) and company CTO Kai Pischow (also 5.89%). Sitra has commited to subscribe 28.35% of the offer shares. Suur-Savon Osuuspankki and Cleantech Invest have made a smaller commitment. Assuming full subscription, their shareholdings according to Savo-Solar would be 27.25 %, 12.82 % and 10.01 %. Shares held before the offering will be locked up for 12 months.
Revenue target for 2015 is 4 million and operating profit can be positive by earlier in H1 2016. Long-term targets are gross margin of >30%, EBITDA margin of 17-18% and net margin of 11% Without the expected further funding from the Offering, the current working capital would not have been sufficient to fulfil working capital needs arising in the next 12 months.
Current shareholders have the ability to pay their subscriptions by setting off loans they have given to the company proportionate to the subscription price. Assuming 2,036,850 new shares are subscribed, Offer expenses are expected to reach 0.6 million Euros, half of which go to underwriting commitments. Out of the remaining expected net proceeds of 3.5 million, a maximum of 1.1 million may be paid by offsetting loans. This would mean 2.4 million of cash-in that would cover expected 1.7 million working capital need for the next 12 months. The remaining 0.7 million is earmarked to production capacity investments in collector assembly and other required machinery.
Company Is yet to prove it can operate a profitable business. Much of its early development has been enabled by loans and grants, such as over 2 million from Tekes. Much of the current debt is being written down with restructuring going on until 2018. Current working capital is sufficient until early April, so you could say Offering is being done in the nick of time. The Offering is fully underwritten.
Monday, 23 February 2015
Detection Technology contemplates IPO and stock market listing
Global X-ray imaging products maker Detection Technology is considering a 20 million Initial Public Offering followed with a possible First North Helsinki listing. The IPO proceeds would be used to finance further growth and business development. Existing shareholders would also sell some of their holdings. The largest shareholder with a 71% share is Oy G.W.Sohlberg Ab, a Finnish family holding company which is also a major shareholder in Glaston (HEL: GLA1V) and Staffpoint. Institutions such as Bocap SME Achievers Fund and Veritas Pension Insurance hold about 15% and key personnel hold about 14% of shares.
For the past five years, the company has shown around 30% annual sales growth. That same pace continued in 2014, with sales reaching 33 million Euros. Operating profit is expected to print a hair under 3 million for a margin of 9% (comparable margin 12%). Operating profit in 2013 was 3.8 million and in 2012 it was some 3.3 million Euros. Net results for those years were 2.7 million and 1.0 million (including a 1.1 million extraordinary item). Debt maturities run currently to the end of 2016.
Company's products are used in medical technology, security and industrial solutions. Medical applications counted for 38% of 2014 sales with the remainder going to the other business area security & industrial. Key competences are technological, long-term customer relations where the firm has maintained preferred supplier status and specific market knowledge in Asia The percentage of Asia in total sales has constantly grown and last year over half of Detection Technology's revenues came from that region. Europe's share stayed at about one fifth whereas North-America came down to a similar number from over 30% a year before.
The Espoo-based company was founded in 1991 and has offices & production sites in Espoo, Oulu, Beijing, Hong Kong and Boston. In total it employs around 280 people. The firm has close to 150 active customers in 38 counties. Nordea (OMX: NDA, OMXH: NDA1V) is the company advisor and would be the lead manager of the IPO.
For the past five years, the company has shown around 30% annual sales growth. That same pace continued in 2014, with sales reaching 33 million Euros. Operating profit is expected to print a hair under 3 million for a margin of 9% (comparable margin 12%). Operating profit in 2013 was 3.8 million and in 2012 it was some 3.3 million Euros. Net results for those years were 2.7 million and 1.0 million (including a 1.1 million extraordinary item). Debt maturities run currently to the end of 2016.
Company's products are used in medical technology, security and industrial solutions. Medical applications counted for 38% of 2014 sales with the remainder going to the other business area security & industrial. Key competences are technological, long-term customer relations where the firm has maintained preferred supplier status and specific market knowledge in Asia The percentage of Asia in total sales has constantly grown and last year over half of Detection Technology's revenues came from that region. Europe's share stayed at about one fifth whereas North-America came down to a similar number from over 30% a year before.
The Espoo-based company was founded in 1991 and has offices & production sites in Espoo, Oulu, Beijing, Hong Kong and Boston. In total it employs around 280 people. The firm has close to 150 active customers in 38 counties. Nordea (OMX: NDA, OMXH: NDA1V) is the company advisor and would be the lead manager of the IPO.
Saturday, 21 February 2015
Momentum day-traders get hosed second time within a week in Nordic small-cap
Troubled mining exploration company Nunaminerals (CPH: NUNA) said weeks ago its cash situation is critical. Since then it has already had a couple of run-ups on speculation of a lifeline being thrown. The topsy-turvy struggle involves government of Greenland as a major shareholder and creditor, so far failing in its bid to de-list and nationalize the firm as a majority shareholder. Also NunaMineral's President & CEO has already given notice but has a 12-month notice period.
In this Friday's trading Nunaminerals was up 45% on especially high volume before trading was halted pending an announcement. A couple hours later the company basically reiterated its critical situation where it is unable to meet its debt obligations towards the government on a loan that was already due and now trading is suspended. Those who bought in on the run and weren't in time to get out have to hope a solution is found, something which is by no means certain. Nunaminerals Boards is promising a new update early next week, with insolvency proceedings a real possibility.
Just a little more than a week ago we had a massive uptick in the shares of Vaahto plc (HEL: WAT1V) heading to a trading halt. Even the local Financial Supervisory Authority woke up and suspected something might have been leaked. Trading was halted for a few days until the company came up with a notice of a major directed share issue that was a necessary condition on debt forgiveness and conversion of portion of debts to subordinated capital loans, an arrangement without which the company would have went belly up. Some but not all of the gains of the day of the trading halt were instantly wiped out on account of the size of the share issue and the subscription price far below market price, leaving some of those buying on the run-up banking a big loss to get out.
One of participant in the targeted issue, Lombard International Assurance S.A., sold a big chunk of its holdings it had acquired prior to the issue the next day at still a nice plus to what it pays, both in the issue if the aim was to keep ownership portion the same, and versus a couple months earlier when it had bought into Vaahto with a deal with one of the other participants in the targeted issue. This shows diverse measures with which savvy institutions can book gains multiple ways. Since the debt forgiveness and conversion became binding, Vaahto's share has again been making some headway, allowing the more patient speculators to get out unscathed.
In this Friday's trading Nunaminerals was up 45% on especially high volume before trading was halted pending an announcement. A couple hours later the company basically reiterated its critical situation where it is unable to meet its debt obligations towards the government on a loan that was already due and now trading is suspended. Those who bought in on the run and weren't in time to get out have to hope a solution is found, something which is by no means certain. Nunaminerals Boards is promising a new update early next week, with insolvency proceedings a real possibility.
Just a little more than a week ago we had a massive uptick in the shares of Vaahto plc (HEL: WAT1V) heading to a trading halt. Even the local Financial Supervisory Authority woke up and suspected something might have been leaked. Trading was halted for a few days until the company came up with a notice of a major directed share issue that was a necessary condition on debt forgiveness and conversion of portion of debts to subordinated capital loans, an arrangement without which the company would have went belly up. Some but not all of the gains of the day of the trading halt were instantly wiped out on account of the size of the share issue and the subscription price far below market price, leaving some of those buying on the run-up banking a big loss to get out.
One of participant in the targeted issue, Lombard International Assurance S.A., sold a big chunk of its holdings it had acquired prior to the issue the next day at still a nice plus to what it pays, both in the issue if the aim was to keep ownership portion the same, and versus a couple months earlier when it had bought into Vaahto with a deal with one of the other participants in the targeted issue. This shows diverse measures with which savvy institutions can book gains multiple ways. Since the debt forgiveness and conversion became binding, Vaahto's share has again been making some headway, allowing the more patient speculators to get out unscathed.
Tuesday, 17 February 2015
Piippo Oyj seeks First North listing
Agricultural twines and net wraps manufacturer and distributor Piippo Oy has decided to seek listing in First North Helsinki. The recently listed United Bankers (HEL:UNIAV) is handling the IPO that is mainly geared toward local Finnish investors. United Bankers should net close to 300 000. A maximum of 550 000 shares are offered with a price of 7.5 Euros. Piippo is aiming at 10th of March 2015 as its first day of trading subject to approval.
The 73-year old family firm is headquartered in Outokumpu, Finland. Its products are sold in over 30 countries and make it a top five agricultural net seller. It has some 90 employees. Former Elcoteq-founder Antti Piippo is the Chairman of the firm. Antti & Pekka Piippo both have 433 500 shares and CEO Kari Hirvonen owns 153 000 shares. Together these represent the entire stock of the company shares prior to the IPO. Assuming full subscription, their combined ownership would be just under 65%. A total number of 1 570 000 shares at a price of 7.5 Euros would implicate a valuation of 11 775 000 Euros for the firm.
For 2014 the company reported sales of just under 15.6 million and EBIT of about 567 000. Balance sheet assets consists mainly of tangible assets of some 4.8 million Euros. Long-term debt is rather limited at 1.385 million Euros. On the short term side there is a lot of capital tied up in inventory valued at nearly 4 million Euros. Given the oil price coming down of late, there is some risk of a write-down for these.
With very little cash at hand and over 6.2 million in short-term debt vs. 1.8 million in cash & equivalents, one clear use for equity financing could be short-term debt repayment. However, current credit lines would allow to company to refinance through them as well if that was the chosen method. The proceeds are expected to substantiate a quicker growth pace through a stronger balance sheet and liquidity position. Since 2007 the company has maintained strongest in Finland credit classification at asiakastieto.fi, for which about the strongest 12% of companies can qualify.
Piippo expects demand to remain healthy in 2015 but prices to be under some pressure. EBITDA margin is still guided to remain in 2014 levels. A financial goal is to reach 20 million Euros in annual sales by the end of 2017. EBITDA target is 8% and a 4-year average equity ratio target is 40%. The company aims to pay out at least 50% of the annual result as dividends bearing in mind other concerns. A dividend proposal for 2014 fiscal year would suggest 2.5% yield.
***UDPDATE AFTER IPO***
Piippo has released details of the Initial Public Offering subscriptions. A total of 272 747 new shares were subscribed. This means that the IPO was undersubscribed. (just under 55%). Close to two thirds of the subscriptions were done by institutional investors with a total of 250 investors taking part. If all subscription are paid for, the company will have 1 292 747 shares. At 7.5 Euros per share this implicates a valuation of just under 9.7 million Euros. Nasdaq OMX has announced that Piippo has been accepted for trading in First North. First day of trading is 10th of March 2015.
The 73-year old family firm is headquartered in Outokumpu, Finland. Its products are sold in over 30 countries and make it a top five agricultural net seller. It has some 90 employees. Former Elcoteq-founder Antti Piippo is the Chairman of the firm. Antti & Pekka Piippo both have 433 500 shares and CEO Kari Hirvonen owns 153 000 shares. Together these represent the entire stock of the company shares prior to the IPO. Assuming full subscription, their combined ownership would be just under 65%. A total number of 1 570 000 shares at a price of 7.5 Euros would implicate a valuation of 11 775 000 Euros for the firm.
For 2014 the company reported sales of just under 15.6 million and EBIT of about 567 000. Balance sheet assets consists mainly of tangible assets of some 4.8 million Euros. Long-term debt is rather limited at 1.385 million Euros. On the short term side there is a lot of capital tied up in inventory valued at nearly 4 million Euros. Given the oil price coming down of late, there is some risk of a write-down for these.
With very little cash at hand and over 6.2 million in short-term debt vs. 1.8 million in cash & equivalents, one clear use for equity financing could be short-term debt repayment. However, current credit lines would allow to company to refinance through them as well if that was the chosen method. The proceeds are expected to substantiate a quicker growth pace through a stronger balance sheet and liquidity position. Since 2007 the company has maintained strongest in Finland credit classification at asiakastieto.fi, for which about the strongest 12% of companies can qualify.
Piippo expects demand to remain healthy in 2015 but prices to be under some pressure. EBITDA margin is still guided to remain in 2014 levels. A financial goal is to reach 20 million Euros in annual sales by the end of 2017. EBITDA target is 8% and a 4-year average equity ratio target is 40%. The company aims to pay out at least 50% of the annual result as dividends bearing in mind other concerns. A dividend proposal for 2014 fiscal year would suggest 2.5% yield.
***UDPDATE AFTER IPO***
Piippo has released details of the Initial Public Offering subscriptions. A total of 272 747 new shares were subscribed. This means that the IPO was undersubscribed. (just under 55%). Close to two thirds of the subscriptions were done by institutional investors with a total of 250 investors taking part. If all subscription are paid for, the company will have 1 292 747 shares. At 7.5 Euros per share this implicates a valuation of just under 9.7 million Euros. Nasdaq OMX has announced that Piippo has been accepted for trading in First North. First day of trading is 10th of March 2015.
Sunday, 15 February 2015
Lexington company coming to First North
Home textiles maker The Lexington Company AB (STO:LEX) will be listed in First North Stockholm from February 18th 2015. Its sales have grown steadily since the inception. Average compound annual sales growth rate from 2008 to 2013 was a hair under 14%. This resulted in sales of 234 million SEK for the fiscal year 2013. Gross margin has remained above 50% for the entire time with 2013 number printing 64,8%. EBIT growth has been less stellar but company has constantly been in the black with an 11 million SEK result for 2013. The company's equity was at 59 million and assets at 119 million in the end of 2013.
In the first 9 months of 2014, sales were about 184 million SEK and EBIT just a touch under 13 million SEK. Profit for the period came in a 7.9 million SEK. Financial goals are an annual sales growth or at least 10%, EBITDA at 10% or more and an equity ratio above 40%. The company carries very little debt at the moment. Presuming successful listing and offering, in total the company will have 4 890 000 shares when it is being listed. Kristina and Tommy Lindhe will control a bit less than 2 million shares or 39.2%. Investor Staffan Persson has just under a third of shares at 1.5 million plus. The subscription price in the IPO is 40 SEK per share. This values the company at 195.6 million SEK
Lexington Company was founded in 1997. First own store started in 2007 in Stockholm. Nowadays the company has nearly 900 dealers in Europe, Asia and the United States. Its multi-channel approach includes own stores, franchise stores, independent retailers and custom web commerce. Apparel products for women and men are also on the offing. The premium segment products draw inspiration from New England, USA, as the company name would suggest.
In addition to the founder Christina and Tommy Lindhe, strong women are at the helm with the an the remainder of the executive team being all female. Together with the Board they visualize the company as a leading international lifestyle brand that will expand strongly into new areas and also in existing markets. By end of September 2014 the company had 97 employees, of which 83 were women. Most of the production is done in Europe to keep better taps of the entire value chain to maintain production ethics and prime materials.
In the first 9 months of 2014, sales were about 184 million SEK and EBIT just a touch under 13 million SEK. Profit for the period came in a 7.9 million SEK. Financial goals are an annual sales growth or at least 10%, EBITDA at 10% or more and an equity ratio above 40%. The company carries very little debt at the moment. Presuming successful listing and offering, in total the company will have 4 890 000 shares when it is being listed. Kristina and Tommy Lindhe will control a bit less than 2 million shares or 39.2%. Investor Staffan Persson has just under a third of shares at 1.5 million plus. The subscription price in the IPO is 40 SEK per share. This values the company at 195.6 million SEK
Lexington Company was founded in 1997. First own store started in 2007 in Stockholm. Nowadays the company has nearly 900 dealers in Europe, Asia and the United States. Its multi-channel approach includes own stores, franchise stores, independent retailers and custom web commerce. Apparel products for women and men are also on the offing. The premium segment products draw inspiration from New England, USA, as the company name would suggest.
In addition to the founder Christina and Tommy Lindhe, strong women are at the helm with the an the remainder of the executive team being all female. Together with the Board they visualize the company as a leading international lifestyle brand that will expand strongly into new areas and also in existing markets. By end of September 2014 the company had 97 employees, of which 83 were women. Most of the production is done in Europe to keep better taps of the entire value chain to maintain production ethics and prime materials.
Saturday, 14 February 2015
Shootings in Copenhagen
Danish media is reporting that one person has died following a shooting at a public meeting of Lars Vilks committee called Kunst, Blasfemi og Ytringsfrihed (Art, Blasphemy and Freedom of Speech) at the Krudttønden theatre in Østerbro, Copenhagen. At least three people, apparently law enforcement, were injured. The suspect fled the scene in a car and is still at large.
A second shooting incident took place hours later past midnight in a synagogue near Nørreport. Copenhagen's police is asking people to stay indoors and has released images of a suspect on its twitter account. A young Jewish man has been shot dead while two policemen took a bullet in their extremities. Areas near the metro station in Nørreport were closed and with helicopters in the scene, the situation appeared chaotic. The suspect again fled the scene.
Finally in a third shootout with the police close by the other two incidents early in the Sunday morning, the suspect was killed. Law enforcement officials say that everything points to this person being solely responsible for both attacks.
In addition to the apparent target of the afternoon shooting, the famous Swedish Prophet Mohammed cartoonist Lars Vilks, Inna Shevchenko of the feminist group FEMEN and Passion for Freedom Arts Festival visual artist and curator Agnieszka Kolek were scheduled to lead the discussion. French ambassador Francois Zimeray had just spoken at the event when the shooting took place.
The discussions in the gathering were supposed to delve into the limits of political messages in art, if artists should put their life at risk as activists and do we have the right to be blasphemous. Just around a month ago, 17 people were killed in France on an attack on satirical weekly magazine Charlie Hebdo, which had also been utilizing controversial images of Mohammad. Reuters reports that French Interior Minister Bernard Cazeneuve will head to Denmark as soon as possible.
A second shooting incident took place hours later past midnight in a synagogue near Nørreport. Copenhagen's police is asking people to stay indoors and has released images of a suspect on its twitter account. A young Jewish man has been shot dead while two policemen took a bullet in their extremities. Areas near the metro station in Nørreport were closed and with helicopters in the scene, the situation appeared chaotic. The suspect again fled the scene.
Finally in a third shootout with the police close by the other two incidents early in the Sunday morning, the suspect was killed. Law enforcement officials say that everything points to this person being solely responsible for both attacks.
In addition to the apparent target of the afternoon shooting, the famous Swedish Prophet Mohammed cartoonist Lars Vilks, Inna Shevchenko of the feminist group FEMEN and Passion for Freedom Arts Festival visual artist and curator Agnieszka Kolek were scheduled to lead the discussion. French ambassador Francois Zimeray had just spoken at the event when the shooting took place.
The discussions in the gathering were supposed to delve into the limits of political messages in art, if artists should put their life at risk as activists and do we have the right to be blasphemous. Just around a month ago, 17 people were killed in France on an attack on satirical weekly magazine Charlie Hebdo, which had also been utilizing controversial images of Mohammad. Reuters reports that French Interior Minister Bernard Cazeneuve will head to Denmark as soon as possible.
Friday, 13 February 2015
Abysmal year culminating, Stockmann Oulu to be closed?
Historic department store chain Stockmann (OMX: STCAS, STCBV) may have finally gotten sufficiently rude awakening to the new realities of business. Its
2014 operating result plummeted to -42.9 million Euros even not accounting for non-recurring items. Revenues were
down 9.5% to 1.844 billion. Losses are expected to continue in 2015, albeit to a lesser extent.
In recent times the company has communicated news on how to monetize its own department stores Helsinki, St Petersburg, Tallinn and Riga. It is now reporting their fair value. The reported value is 908.3 million. This will increase 2015 depreciation. Part of the monetization is to attract new tenants and consequently remove some own product offerings. A deal with home appliances chain Expert ASA was recently announced.
With the fair value assessment of the department stores, and the fact that Stockmann paid almost a similar amount on Lindex in 2007, some investors have been considering the sum of parts value to look attractive considering the current market value hovering around 500 million. There are however balance sheet issues that worry others. With a carrying amount of goodwill of almost 750 million (about the same as current equity) and current liabilities of nearly 500 million and the expected losses on 2015 piling on. Of course the fair value reporting of department stores from 2015 onwards can be seen as somewhat off-setting.
Stockmann also said it is starting co-determination negotiations in Oulu with the entire department store staff. The company has been operating in the northern town since 2001 on a lease with CBRE Global Investors on the other side of it since 2001. The current lease is set to expire in 2017 and negotiations on an extension have supposed to been going on since early last year. Stockmann Oulu has 90 full-time employees and a total of 230 people counting part-timers.
All 16 Lindex stores will be closed in Russia. Stockmann still foresees Lindex as a truly global fashion chain and aims to grow in other markets. Lindex will be operating independently. A murky letter of intent to sell Seppälä to current management has also been communicated. So far no taker has been found for the Hobby Hall distance retail business. The Stockmann Beauty cosmetics stores will be closed down by the end of May. Department store closures will also happen in Russia. With no dividend from 2014 and equally bleak prospects for this year, some of the trust that are long-term investors that have been relying on steady cashflows to fund their operations must be thinking what to do.
In recent times the company has communicated news on how to monetize its own department stores Helsinki, St Petersburg, Tallinn and Riga. It is now reporting their fair value. The reported value is 908.3 million. This will increase 2015 depreciation. Part of the monetization is to attract new tenants and consequently remove some own product offerings. A deal with home appliances chain Expert ASA was recently announced.
With the fair value assessment of the department stores, and the fact that Stockmann paid almost a similar amount on Lindex in 2007, some investors have been considering the sum of parts value to look attractive considering the current market value hovering around 500 million. There are however balance sheet issues that worry others. With a carrying amount of goodwill of almost 750 million (about the same as current equity) and current liabilities of nearly 500 million and the expected losses on 2015 piling on. Of course the fair value reporting of department stores from 2015 onwards can be seen as somewhat off-setting.
Stockmann also said it is starting co-determination negotiations in Oulu with the entire department store staff. The company has been operating in the northern town since 2001 on a lease with CBRE Global Investors on the other side of it since 2001. The current lease is set to expire in 2017 and negotiations on an extension have supposed to been going on since early last year. Stockmann Oulu has 90 full-time employees and a total of 230 people counting part-timers.
All 16 Lindex stores will be closed in Russia. Stockmann still foresees Lindex as a truly global fashion chain and aims to grow in other markets. Lindex will be operating independently. A murky letter of intent to sell Seppälä to current management has also been communicated. So far no taker has been found for the Hobby Hall distance retail business. The Stockmann Beauty cosmetics stores will be closed down by the end of May. Department store closures will also happen in Russia. With no dividend from 2014 and equally bleak prospects for this year, some of the trust that are long-term investors that have been relying on steady cashflows to fund their operations must be thinking what to do.
Thursday, 12 February 2015
OrganoClick AB to be listed on First North
Swedish cleantech company OrganoClick AB (STO: ORGC) will be traded on Nasdaq First North from Monday 16th of February 2015. Its CEO Mårten Hellberg will ring the trading bell that morning. This comes on the heels of an equity raising in a private placement of 75 million SEK this week to Nordic institutional and other qualified investors. In the private placement 1,029,412 were issues at SEK 6.80 per share. The total number of shares following the placement is 66,067,861. The proceeds go to scale up sales & marketing and to support continued growth.
OrganoClick develops functional materials based on fibre chemistry. This allows for the green modification of cellulose-based materials to enhance their capabilities. Products are available mainly for paper & packaging, fibre composites, wood and textiles industries in the Nordic countries. The applications provided can render materials anti-fungal properties, fire retardancy, increased strength and water repellence.
In 2013 the company had sales of about 10.8 million SEK and posted a result of -13.1 million SEK before taxes. For the first nine months of 2014, sales had gone up to 20.9 million SEK while before tax results posted in at -11.7 million. The company has communicated that full-year 2014 revenues will print around 25 million SEK. Total invested capital since foundation is some 76 million SEK. The company says its business plan is based on expectations to be cash-flow positive by H2 2016 and the proceeds from private placement should carry until then.
The science is based on the work of university researchers Jonas Hafrén and Armando Córdova. CEO Mårten Hellberg founded the company in 2006 and early business angels joining in were business partners Saeid Esmaeilzadeh and Ashkan Pouya through Serenpidity Innovations. All of them as well as former Tetra Pak/Alfa Laval and SinterCast executive Bertil Hagman and investor Anders Wall through Beijerinvest AB will hold a chunk in between 10-20% of the company shares following the private placement. Their shares will be locked up for 365 days following the placement.
OrganoClick develops functional materials based on fibre chemistry. This allows for the green modification of cellulose-based materials to enhance their capabilities. Products are available mainly for paper & packaging, fibre composites, wood and textiles industries in the Nordic countries. The applications provided can render materials anti-fungal properties, fire retardancy, increased strength and water repellence.
In 2013 the company had sales of about 10.8 million SEK and posted a result of -13.1 million SEK before taxes. For the first nine months of 2014, sales had gone up to 20.9 million SEK while before tax results posted in at -11.7 million. The company has communicated that full-year 2014 revenues will print around 25 million SEK. Total invested capital since foundation is some 76 million SEK. The company says its business plan is based on expectations to be cash-flow positive by H2 2016 and the proceeds from private placement should carry until then.
The science is based on the work of university researchers Jonas Hafrén and Armando Córdova. CEO Mårten Hellberg founded the company in 2006 and early business angels joining in were business partners Saeid Esmaeilzadeh and Ashkan Pouya through Serenpidity Innovations. All of them as well as former Tetra Pak/Alfa Laval and SinterCast executive Bertil Hagman and investor Anders Wall through Beijerinvest AB will hold a chunk in between 10-20% of the company shares following the private placement. Their shares will be locked up for 365 days following the placement.
Monday, 1 July 2013
Bloomberg: Nokia to buy out Siemens?
According to a Bloomberg report, Nokia (OMXH: NOK1V, NYSE: NOK) is set to announce an acquisition of Siemens' (FWB: SIE) stake in their 50-50% telecommunications equipment joint venture Nokia Siemens Networks (NSN) as early as this morning. The companies have long been seeking ways to resolve the ownership, with Siemens wanting to be more focused on its other escapades. An aggressive cost cutting program has finally turned NSN profitable although quarter-on-quarter and cyclical swings are likely to continue. According to sources, Nokia would pay Siemens under 2 billion Euros for the stake and assume all its responsibilities.
This potential deal could be a catalyst for further moves involving NSN with a possible new owner or a spin-off among potential options. Speculation about Nokia's future direction and potential deals involving some of its divisions seem to be an almost daily occurrence in the last few weeks as analysts continue to view the sum of parts to be greater than the combined entity valuation. As an only move, Nokia would have to take on some more debt to finance the deal, further lessening room for error.
This potential deal could be a catalyst for further moves involving NSN with a possible new owner or a spin-off among potential options. Speculation about Nokia's future direction and potential deals involving some of its divisions seem to be an almost daily occurrence in the last few weeks as analysts continue to view the sum of parts to be greater than the combined entity valuation. As an only move, Nokia would have to take on some more debt to finance the deal, further lessening room for error.
Wednesday, 8 May 2013
Bridge collapses in Trondheim
A bridge under construction in Trondheim, Norway has collapsed killing two and injuring several people according to NRK. A construction worker and a driver were buried under under massive amount of ruble. In total some 200 tons of concrete go into the bridge.
Vehicles were travelling on the busy Ladetangenten road under the bridge. A traffic chaos ensued in the region right next to local IKEA store. A representative of Reinertsen AS, the company in charge of the project, told newspaper VG that its likely that the cause of the accident was formwork failure.
Vehicles were travelling on the busy Ladetangenten road under the bridge. A traffic chaos ensued in the region right next to local IKEA store. A representative of Reinertsen AS, the company in charge of the project, told newspaper VG that its likely that the cause of the accident was formwork failure.
Tuesday, 30 April 2013
MultiClient Geophysical ASA to start trading on Oslo Axess from this Thursday
Oslo Børs has said that & Gas Equipment & Services MultiClient Geophysical ASA will start trading on the alternate Oslo Axess list from Thursday 2:dn of May onwards with a ticker MCG. This is the fourth new listing on Oslo Børs’ market places in 2013 following Asetek ASA, EAM Solar ASA and Serodus ASA. Offsetting this gain are delisting of Dockwise, Pronova BioPharma and Codfarmers.
Yesterday MultiClient Geophysical announced a successful initial public offering yielding gross proceeds of around 80 million NOK to be used to strengthen organization and invest in 2D multi-client library both via internal development and potential acquisitions. The market cap of the company based on the IPO valuation is 371 million NOK. It aims to provide oil and gas industry companies seismic information that de-risks their development projects.
Yesterday MultiClient Geophysical announced a successful initial public offering yielding gross proceeds of around 80 million NOK to be used to strengthen organization and invest in 2D multi-client library both via internal development and potential acquisitions. The market cap of the company based on the IPO valuation is 371 million NOK. It aims to provide oil and gas industry companies seismic information that de-risks their development projects.
Rautaruukki the only Ruukki
A settlement has been reached between Rautaruukki (OMXH: RTKRS) and Ruukki Group (OMXH: RUG1V) over Ruukki trademark. The companies have agreed that Ruukki Group will change its name and Rautaruukki gains all the rights associated with the name and derivatives. A compensation will be made that Rautaruukki calls immaterial while Ruukki Group does not comment on the size of it and the companies will cover their own legal expenses. Ruukki Group will naturally suffer costs in updating its communication materials etc.
Workers' Day celebrations begin without pay in Denmark
An error in the connection between NemKonto software of local IT company KMD and Nordea bank has left over 100 000 Danes without their wages in time for the public holiday. Customers of other financial institutions could also be affected if their public employer is Nordea's customer. The bugs behind the matter have reportedly been identified and payments should be made tomorrow. The most recent error follows another large scale problem just last month and underscores a worrying trend of increasing unreliability of timely wage and benefit payments in the Nordic region.
Thursday, 25 April 2013
Newsflow on divestments, loan facilities and Terni expected
Steelmaker Outokumpu (OMX:OUT1V) was heavily loss making on Q1 2013 but that wasn’t a surprise to anyone. Synergy savings are on track and further cost cuts are coming ferrochrome expansion was touted as going very well. Calmert investment related purchases affected operating cash flow negatively, turning it slightly to the red overall. Net result was around -150 million with operating result narrowly positive.
Second quarter 2013 underlying result is expected on par or slightly weaker than Q1 as the company says the European market is softer than on Q1 at the moment. There will likely be one-off items related to cost cutting programme as well. From second half more benefits are expected to be realized while demand visibility is low as usual.
Terni deadline has been extended for a certain period of time with Outokumpu extremely tight-lipped not to reveal any more details. Regulatory issues should be once more behind this and if I were to speculate, such issues could be potential competition authorities concerns with Aperam (LuxSE: APAM) and or aversion on accepting bids from outside of the Euro area.
The debt situation of the company has been worrying investors. There is still some room with e covenants at 115% and ThyssenKrupp (FWB: TKA, LSE: THK) debt also counted in the current numbers despite not actually affecting that. The company is negotiating two loan facilities, with news on another expected by the end of June. It sounds like some divestment may be close by too as the management seemed to downplay any imminent rights issue.
Second quarter 2013 underlying result is expected on par or slightly weaker than Q1 as the company says the European market is softer than on Q1 at the moment. There will likely be one-off items related to cost cutting programme as well. From second half more benefits are expected to be realized while demand visibility is low as usual.
Terni deadline has been extended for a certain period of time with Outokumpu extremely tight-lipped not to reveal any more details. Regulatory issues should be once more behind this and if I were to speculate, such issues could be potential competition authorities concerns with Aperam (LuxSE: APAM) and or aversion on accepting bids from outside of the Euro area.
The debt situation of the company has been worrying investors. There is still some room with e covenants at 115% and ThyssenKrupp (FWB: TKA, LSE: THK) debt also counted in the current numbers despite not actually affecting that. The company is negotiating two loan facilities, with news on another expected by the end of June. It sounds like some divestment may be close by too as the management seemed to downplay any imminent rights issue.
Tuesday, 23 April 2013
More was expected of Sandvik
Engineering sector barometer Sandvik (OMX: SAND) reported Q1 2013 earnings this morning. The Swedish behemoth painted a mixed picture with slight improvement over most of the sectors compared to the end of last year. Development was best in oil&gas and construction. Mining segment however was under pressure as weak demand and furthering uncertainty in the industry led to a lower activity. Its 30% lower order intake vs. last year’s Q1 was the main culprit for an 18% dip in the company orders. The 22.3 SEK billion in intakes is slightly above quarterly invoiced sales, which in turn were 5% below Q1 2012m at 22.1 billion.
If only this was the whole story but obviously profit numbers came in proportionally even weaker. Operating profit fell a third to 2.5 billion and reported profit for the period came in under 1.5 billion. The company sees strong Swedish krona as a major reason for the weak development overall. Cash flow fared better as the company continues to manage inventories and man hours. Analysts following the company were way off making this a major miss.
If only this was the whole story but obviously profit numbers came in proportionally even weaker. Operating profit fell a third to 2.5 billion and reported profit for the period came in under 1.5 billion. The company sees strong Swedish krona as a major reason for the weak development overall. Cash flow fared better as the company continues to manage inventories and man hours. Analysts following the company were way off making this a major miss.
Friday, 19 April 2013
TeliaSonera looks at ways to become a growth companny
Swedish telecommunications firm TeliaSonera (OMX: TLSN) reported underwhelming numbers from Q1 2013. Net Sales were down 4.5% compared to last year at 24.5 billion SEK. EBITDA margin stayed firm just below 35%. Net income was nearly flat at 4.5 billion translating to earnings per share of 0.95 SEK (0.11 EUR). Currency effects were rather large. Severe winter and calendar effects existed as well. The company isn't sure what the effect of an earlier Easter had on comparisons
Due to topline pressure, particularly from voice and broadband struggles lead to continued efficiency measures. Not unexpectedly, much of the focus continues to be on ethical issues. The company is starting numerous internal and external projects to look into its practises in the Far East. The company thinks that there were growing pains in fibre installation process but that signs are increasingly pointing to the right call having being made here with fibre offering demand growing strongly.
TeliaSonera is taking a leading role to try to bring North American-esque pricing model of data usage charges to Europe. It will be difficult to manage that in Europe. The first step will be taken in Sweden and the company foresees duplicating that model elsewhere later. The plan is to have flat voice and texting where as mobile data charges come from the amount of data use. One invoice can contain several devices and persons in family accounts. Price competition seems to be toughest in Finland. TeliaSonera also thinks it cannot compete with Tele2 (OMX: TEL2 B) with prices in Norway and needs to have different value proposition.
Acting CEO Per-Arne Blomquist stressed many times that the industry can return to a growth industry once the increased mobile data use can be monetized. Regarding consolidation in Denmark the company thinks that the joint venture with Telenor (OSE: TEL) was a good decision but that he does not see any market consolidation in Denmark due to regulatory concerns. The company would certainly love to see countries such as Sweden and Denmark to have only two companies, but does not foresee Brussels signing off on that.
Given that Yoigo divestment is now seemingly no longer in the agenda since the company said it was not happy with the offers and regulatory difficulties, and dividends from Turkcell (ISE: TCELL, NYSE: TKC) seemingly no closer than before, any extra dividend hope seem lower. The stock is down just over 2% heading into final hour of trading.
Due to topline pressure, particularly from voice and broadband struggles lead to continued efficiency measures. Not unexpectedly, much of the focus continues to be on ethical issues. The company is starting numerous internal and external projects to look into its practises in the Far East. The company thinks that there were growing pains in fibre installation process but that signs are increasingly pointing to the right call having being made here with fibre offering demand growing strongly.
TeliaSonera is taking a leading role to try to bring North American-esque pricing model of data usage charges to Europe. It will be difficult to manage that in Europe. The first step will be taken in Sweden and the company foresees duplicating that model elsewhere later. The plan is to have flat voice and texting where as mobile data charges come from the amount of data use. One invoice can contain several devices and persons in family accounts. Price competition seems to be toughest in Finland. TeliaSonera also thinks it cannot compete with Tele2 (OMX: TEL2 B) with prices in Norway and needs to have different value proposition.
Acting CEO Per-Arne Blomquist stressed many times that the industry can return to a growth industry once the increased mobile data use can be monetized. Regarding consolidation in Denmark the company thinks that the joint venture with Telenor (OSE: TEL) was a good decision but that he does not see any market consolidation in Denmark due to regulatory concerns. The company would certainly love to see countries such as Sweden and Denmark to have only two companies, but does not foresee Brussels signing off on that.
Given that Yoigo divestment is now seemingly no longer in the agenda since the company said it was not happy with the offers and regulatory difficulties, and dividends from Turkcell (ISE: TCELL, NYSE: TKC) seemingly no closer than before, any extra dividend hope seem lower. The stock is down just over 2% heading into final hour of trading.
Sunday, 14 April 2013
China Iceland FTA near
Newspaper China Daily writes that Prime Minister Jóhanna Sigurðardóttir believes her country will enter into a free trade agreement with China this coming week. The head of the Government of Iceland is visiting Beijing from April 13 to April 18th. Such an agreement would make Iceland the first European country to remove the bulk of the trade barriers with China. China Daily says that would lead to lower prices of Chinese products in Iceland and provide further business opportunities for both nations.
Friday, 12 April 2013
Atlas Copco to acquire Saltus
Swedish engineering firm Atlas Copco (OMX: ATCO A, ATCO B) has agreed to acquire german tool maker Saltus-Werk Max Forst GmbH for an undisclosed price. The Solingen-based company has a near 100-year history and currently employs 65 people. Last year its sales were around 8 million Euros. Expected closing of the acquisition is in May this year.
Its products are mainly various kinds of torque wrenches with multiple types of electronic, mechatronic and signal emitting solutions available in addition to standard mechanical types. The company also has a software offering and its own accredited calibration laboratory.. Torque wrenches are used when it is imperative to maintain certain level of tightness of screws or bolts. Saltus customers come from a variety of industries such as automobile, mechanical and systems engineering and aerospace engineering.
Its products are mainly various kinds of torque wrenches with multiple types of electronic, mechatronic and signal emitting solutions available in addition to standard mechanical types. The company also has a software offering and its own accredited calibration laboratory.. Torque wrenches are used when it is imperative to maintain certain level of tightness of screws or bolts. Saltus customers come from a variety of industries such as automobile, mechanical and systems engineering and aerospace engineering.
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