Martela Corporation’s Interim Report 1 January – 31 March
The January–March 2021 revenue decreased and operating result improved compared to previous year.
January–March 2021
- Revenue was EUR 19.9 million (21.7), representing a change of -8.2 %
- Comparable operating result was EUR -1.4 million (-2.8)
- Operating result was EUR -2.0 million (-2.8)
- Operating profit per revenue was -10.1 % (-13.1%)
- The result for the period was EUR -2.3 million (-3.5 )
- Earnings per share amounted to EUR -0.56 (-0.84)
Outlook
Outlook for 2021
The Martela Group anticipates that its revenue and operating result in 2021 will improve compared to the previous year. Traditionally Group’s operating result accumulates during the second half of the year.
Key figures, EUR million
| 2021 | 2020 | Change | 2020 | |
| 1-3 | 1-3 | % | 1-12 | |
| Revenue | 19.9 | 21.7 | -8.2 % | 88.4 |
| Operating result | -2.0 | -2.8 | -4.0 | |
| Operating result % | -10.1 % | -13.1 % | -4.5 % | |
| Result before taxes | -2.4 | -3.5 | -4.8 | |
| Result for the period | -2.3 | -3.5 | -4.8 | |
| Earnings/share, euro | -0.56 | -0.84 | -1.16 | |
| Return on investment % | -7.9 | -37.4 | -13.4 | |
| Return on equity % | -23.2 | -24.1 | -35.7 | |
| Equity ratio % | 21.0 | 29.5 | -28.9 % | 22.7 |
| Gearing % | 56.7 | 64.3 | -11.8 % | 37.9 |
Artti Aurasmaa, CEO:
“First quarter this year was defined by still continuing corona pandemic and related strong remote work recommendation as well as general uncertainty in the market. Our revenue decreased by 8.2 % in the first quarter compared to same period last year. Revenue in the first quarter was EUR 19.9 million.
As expected also the new orders continued to decrease in the first quarter. Orders decreased especially in the commercial sector. Like in decrease of revenue, uncertainty in the market caused by the pandemic also impacted the volume of new orders. The timetable of the recovery in the demand will be strongly dependent on the progress of the pandemic and how that will affect decisions of our customers on returning to offices.
Our operating result improved in the first quarter compared to the same period last year and was EUR -2.0 million. Operating result includes onetime expenses of EUR 0.6 million, which relates to layoffs resulting from cooperation negotiations concluded earlier this. Our comparable operating result was EUR -1.4 million which is a significant improvement to same period last year where our operating result was EUR -2.8 million. Improvement was related to cost efficiency, temporary layoffs cause by the Pandemic as well as decrease in our fixed expenses.
We have renewed our organisation structure and announced in February a new Management Team, which will further imporve our position as a leading sustainable workplace specialists. We have also today announced result of share issue published in March. In the share issue almost 40 key employees subscribed in total 352 440 shares from the offered amount of 432 260 shares. I am extremely pleased with the result of the share issue, which demonstrates during these extreme times a strong commitment of our key employees to the company and to our position as a leading workplace specialists. Commited and professional employees are the most important asset which will enable us to rise from last years loss making cycle back to porfitable operations and strenghten our position in workplace development area driven by the circular economy.
The coronavirus pandemic and the uncertainty caused by it is still impacting negatively to the market situation. We are not expecting the market conditions to imporove during the first six months of this year. It is still difficult to estimate how the current conditions will impact our midterm revenue and operating result development. However I believe that turn for the better is closer and we are ready to meet the increase in demand driven by the positive market development. Despite the Pandemic we have maintained excellent delivery accuracy and customer satisfaction level and this gives us good foothold to spring for new growth when Pandemic and remote work recommendations finally end.
We believe that working environments will permanently change in the future. The coronavirus pandemic has accelerated the process of changing the way we work. The office is just one of the many places where we work from, and for some of us the amount of remote work will increase for good. This will increase the demand for multipurpose working spaces and the need to invest to remote working conditions. We will continue together with our customers to be a forerunner in creating user centric working environments, which will improve user experience, efficiency and innovation capabilities as well as lower the overall costs. We will meet our customers needs for increased flexibility in workplace with our WaaS concept, which we have piloted and actively developed further during the last winter. Interest towards our concept has been encouraging and we expect it to have an positive impact to our business in the second half of this year.”
Market situation
The coronavirus pandemic has had a negative impact on the whole market environment of Martela, both in Scandinavia and in other countries. This has impacted especially the commercial sector. The negative impact has been slightly smaller on the public sector. At the moment it is challenging to say what the midterm impacts to general market conditions will be and how long the uncertainty in the markets will continue.
BRIEFING
A briefing will not be held due to the prevailing pandemic situation, but additional information can be asked by telephone from Artti Aurasmaa and Kalle Lehtonen on Friday 7th of May 2021 from 11 a.m. to 1 p.m. EET.
Martela Corporation
Board of Directors
Artti Aurasmaa
CEO
Further information
Artti Aurasmaa , CEO, +358 45 186 1775
Kalle Lehtonen, CFO, tel. +358 400 539 968
Distribution
Nasdaq OMX Helsinki
Key news media
www.martela.com
Our strategic direction is defined by our mission “Better working” and our vision “People-centric workplaces”. Martela supplies user-centric workplaces where the users and their wellbeing are what matter most. We focus on the Nordic countries because, based on our common open work culture and needs, the Nordic countries are leaders in hybrid workplaces.
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