Enfo Oyj

Enfo Oyj's interim report 3/2010 (1 January - 30 September 2010)

Lehdistötiedote   •   Loka 28, 2010 11:35 EEST

Key points of the interim report
   ·         Turnover in July-September increased by 5.6% and stood at EUR 30.0
million (28.5). In January-September, turnover rose by 2.2% to EUR 101.0 million
(98.8).
   ·         Operating profit (EBIT) in July-September decreased by 14.3% and
stood at EUR 1.5 million (1.7). In January-September, operating profit rose by
36.0% to EUR 6.3 million (4.6).
   ·         Profit before taxes in July-September amounted to EUR 1.2 million
(1.3). In January-September, profit before taxes stood at EUR 5.8 million (2.9).
   ·         Earnings per share in July-September were EUR 1.62 (1.74). Earnings
per share in January-September were EUR 7.57 (3.88).
   ·         The twelve-month return on investment was 12.6% (8.5).


   ·         In January-September, Enfo Group employed an average of 676 people
(674). At the end of September, the Group employed a total of 691 people (686).
   ·         In January-September, cash flow from operating activities totalled
4.7 million (4.7).


   ·         As the company's emphasis has shifted more strongly to continuous
IT services, the turnover of hardware and software sales will clearly fall in
Finland. The company estimates the Group's turnover in 2010 to decrease slightly
from last year, but operating profit will increase compared with 2009.

Market

A clear turn in the economic situation was seen in the company's main market
areas in Finland and Sweden during the second quarter. More and more IT projects
that were postponed because of the economic slump are now being launched. The
company estimates the Finnish IT service market to grow by more than 2% in 2010
compared with the previous year. Market growth in Sweden is expected to be
faster than in Finland especially due to growth in the outsourcing market.

Group structure

Enfo Oyj is the parent company of Enfo Group. Enfo's business operations are
divided into two separately reported lines of business: IT Services and
Information Logistics Services. Enfo's Swedish business operations are reported
as part of the IT Services unit.

Business development

Demand for Enfo's IT Services in the Finnish IT outsourcing market was strong
during the reporting period, despite the tight price competition. Martela Oyj, a
leading supplier of working environment and public area solutions in Finland,
centralised its IT services to Enfo during the period. The companies signed an
agreement according to which Martela's new IT environment will be built in the
Enfo data centre. Furthermore, Lassila & Tikanoja Oyj (L&T), a company
specialising in support services for buildings and institutions, signed a three-
year outsourcing agreement covering its basic IT services with Enfo. Through the
agreement, five employees who have previously been responsible for L&T's IT
services were transferred to Enfo. Cooperation agreements were also signed with
Jot Automation Ltd. IT expert services are in strong demand for Windows 7 and
identity management projects.

Information Logistics Services continued their steady progress on the market.
Customers expanded their service acquisitions with active demand for electronic
services. Companies are launching new projects and developing their business
operations, which can be seen particularly in electronic invoicing. Information
Logistics Services signed new agreements with, e.g., Pohjois-Suomen Energiatieto
Oy.

In Sweden, demand for IT services has developed positively. Competition over
agreements remains to be fierce but demand for IT services that improve the
efficiency of business operations and lower related costs continues to grow.
During the reporting period, Enfo Sweden AB released its first large, five-year
outsourcing business agreement with Poolia, an international recruitment
corporation: Enfo Sweden will be fully responsible for Poolia Group's central IT
infrastructure. The City of Stockholm's major Windows 7 transition project is
being completed.

Turnover
Enfo Group's turnover in July-September increased by 5.6% and stood at EUR 30.0
million (28.5). The Group's turnover increased by 2.2% in January-September and
stood at EUR 101.0 million (98.8). The increase in consolidated turnover was
affected by the strong development of Information Logistics Services on the
market and the clear revival on the Swedish IT market. The growth of the Group's
business operations was decelerated by the emphasis of Finnish operations
shifting from hardware and software sales towards continuous IT services.
Development of turnover by reporting segment

+------------------------------+--------+--------+--------+--------+---------+
| EUR million |7-9/2010|7-9/2009|1-9/2010|1-9/2009|1-12/2009|
+------------------------------+--------+--------+--------+--------+---------+
| IT Services | 22.3 | 21.8 | 77.8 | 78.2 | 112.8 |
+------------------------------+--------+--------+--------+--------+---------+
|Information Logistics Services| 8.1 | 7.2 | 24.3 | 22.3 | 29.9 |
+------------------------------+--------+--------+--------+--------+---------+

The turnover of Enfo's IT Services increased by 2.4% in July-September and stood
at EUR 22.3 million (21.8). In January-September, the turnover of IT Services
decreased by 0.5% to EUR 77.8 million (78.2) as a result of the company's
emphasis in Finland shifting from hardware and software sales to continuous IT
services.
Turnover of Enfo's Information Logistics Services in July-September increased
well and amounted to EUR 8.1 million (7.2), This signalled a growth of 12.3%. In
January-September, turnover rose by 9.1% to EUR 24.3 million (22.3). This
positive development was affected by companies' will to invest in electronic
services and expand their services.
Profitability

Enfo Group's operating profit decreased by 14.3% in July-September and stood at
EUR 1.5 million, representing 4.9% of turnover (EUR 1.7 million and 6.0%). The
decrease in turnover in July-September was influenced by investments in the
personnel incentive scheme and training. The Group's profitability improved by
36.0% in January-September compared with the same period last year. The Group's
operating profit in January-September amounted to EUR 6.3 million (4.6),
comprising 6.2% of turnover (4.7%). The positive development in profitability
was sped up by the good result in Information Logistics Services and the revived
demand for IT services in Sweden.

The Group's profit before taxes in July-September stood at EUR 1.3 million
(1.3), comprising 4.0% of turnover (4.6%). In January-September, profit before
taxes amounted to EUR 5.8 million (2.9), comprising 5.7% of turnover (3.0%). The
Group's net financing costs stood at EUR 0.3 million (0.4) in July-September,
and EUR 0.5 million (1.7) in January-September. Finance income in January-
September included a non-recurring item of EUR 0.5 million related to a
financial liability measurement. Result in January-September was EUR 0.9 million
(1.0). In January-September, the result was EUR 4.3 million (2.2), comprising
4.2% of turnover (2.2%). Earnings per share in July-September were EUR 1.62
(1.74). Earnings per share in January-September were EUR 7.57 (3.88).


Development of operating profit by reporting segment

+----------------------+--------+--------+--------+------------------+---------+
| EUR million |7-9/2010|7-9/2009|1-9/2010| 1-9/2009 |1-12/2009|
+----------------------+--------+--------+--------+------------------+---------+
| IT Services | 0.2 | 0.6 | 2.7 | 1.7 | 2.9 |
+----------------------+--------+--------+--------+------------------+---------+
|Information Logistics | 1.3 | 1.1 | 3.7 |         3.1      | 4.1 |
| Services | | | | | |
+----------------------+--------+--------+--------+------------------+---------+

Enfo IT Services' operating profit decreased in July-September from the same
period last year. The decrease in operating profit was affected by strong
investments in personnel training and costs related to the incentive scheme.
Profit in January-September was better than last year because of the revived
demand on the IT market. In Finland, the increase was affected by the emphasis
shifting from hardware and software sales towards continuous IT services.
In Information Logistics Services, operating profit increased in July-September
compared with the previous year. In addition, operating profit in the first nine
months has developed favourably. The positive development of operating profit
has been influenced by good demand for electronic services on the market, and
service expansions.
Financing and investments

Enfo's net financing costs stood at EUR 0.7 million (0.2) in July-September and
EUR 2.7 million (1.0) in January-September. The company's equity ratio was
43.1% (34.5%) at the end of September. Interest-bearing net liabilities at the
end of September amounted to EUR 29.3 million (31.0) and net gearing was 69.8%
(92.3%).

Personnel

In January-September, Enfo Group employed an average of 676 people (674). At the
end of September, the Group employed a total of 691 people (686).

Enfo's IT Services and Solutions unit employed an average of 588 people in
January-September (578), and the Information Logistics Services unit employed an
average of 73 people (82). Of Enfo's personnel, 359 (409) were employed in
Finland and 317 (265) in Sweden.
Board of Directors and management

Enfo Oyj's Chairman of the Board of Directors is Tapio Hakakari, Managing
Director of Webstor Oy. The other members of the Board of Directors are Hannu
Isotalo, Chairman of the Board of Directors of Lujatalo Oy; Ossi Saksman,
Chairman of the Board of Directors of Osuuskunta KPY; Jorma Tammenaho, Senior
Portfolio Manager of Ilmarinen Mutual Pension Insurance Company; and Marja Liisa
Kaario, partner in Unicus Oy.

The Enfo Group Management Team includes Arto Herranen, Managing Director; Kati
Kokkonen, Finance Director; Maria Lundell, HR Director; Pertti Silén,
Development Director; Osmo Wilska, Director of Finnish Operations; and Johan de
Verdier, Director of Swedish Operations.
Shares

On 30 September 2010, Enfo Oyj had a total of 568,556 shares. At the end of
September, the company had a total of 95 shareholders. The company has one
series of shares The company owned 78 of its treasury shares at the end of
September 2010.

As of the end of September, the company's ten largest owners were Osuuskunta
KPY, Pohjola Insurance Ltd, Ilmarinen Mutual Pension Insurance Company, Suomi
Mutual Life Assurance Company, Enfo Oyj's Personnel Fund HR, Einari Vidgrén Oy,
Keskisuomalainen Oyj, Kuopio Cooperative Bank, Hannu Isotalo Oy and Savon Voima
Oyj. Osuuskunta KPY's share of ownership is 84.9%.
Forecast for likely future development
As the company's emphasis has shifted more strongly to continuous IT services,
the turnover of hardware and software sales will clearly fall in Finland. The
company estimates the Group's turnover in 2010 to decrease slightly from last
year, but operating profit will increase compared with 2009.

Risks and uncertainties

Short-term risks and uncertainties are related to the preservation of a good
invoicing rate in Sweden after large consultation projects are wrapped up at the
end of the year and to the maintenance of price competitiveness in the highly
competitive Finnish outsourcing market. In the long-term, the termination of the
commitment arrangements for key personnel in the Swedish operations may expose
the company to a key personnel risk, which is typical in the industry.
Timetable for financial reporting in 2010

Enfo Oyj will publish a financial statement release on 24 February 2011
concerning the period of 1 January - 31 December 2010. The timetable for
financial reporting in 2011 will be published in full, in connection with the
financial statement release.

Tables

Tables available: http://http://www.enfo.fi/press_releases">http://www.enfo.fi/press_releases

For additional information, please contact: Arto Herranen, Managing Director,
tel. +358 44 7193 000 and Kati Kokkonen, Finance Director, tel.
+358 44 7193 015 (e-mail format: firstname.lastname@enfo.fi)

Enfo is a Nordic IT service company which provides companies and organisations
with easy-to-use IT services. In its services, Enfo utilises more than 45 years
of experience in IT and the competence of its expert IT professionals.
Approximately 700 top experts ensure that Enfo's customers get the most out of
their IT. Enfo's annual turnover is more than EUR 140 million. For further
information about Enfo, please visit http://www.enfo.fi">www.enfo.fiand http://www.enfo.se">www.enfo.se
Distribution: Key media and http://www.enfo.fi">www.enfo.fi
Enfo Oyj
Business ID: 2081212-9
Visiting address: Kiveläntie 4, Kuopio, Finland
Postal address: P.O. Box 1582, FI-70461 Kuopio, Finland
Billing address: P.O. Box 5005, FI-70701 Kuopio, Finland
Switchboard: +358 20 54321
Fax: +358 20 543 2355
Email:firstname.lastname@enfo.fi


[HUG#1456098]








This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Enfo via Thomson Reuters ONE

Source: Millistream / Hug