The numbers in brackets refer to the same period of the previous year unless otherwise indicated.
The numbers in the financial statements bulletin are unaudited.
This release is a summary of the report
GROWTH IN A CHALLENGING OPERATING ENVIRONMENT
YEAR 2023 IN BRIEF
- Net sales MEUR 29.0 (16.2), increase of 79.2%
- Operating margin (EBITDA) MEUR 0.2 (0.6)
- Operating result (EBIT) MEUR -0.5 (0.1)
-
Earnings per share -0.10
(-0.01) euros - Orders received MEUR 33.8 (16.9), growth 100.2%
-
Moving to new premises in Ylöjärvi,
Finland -
The most important achievements in the market:
- A significant repeat order for the American power quality market for data centers
-
Order for a
20-million-euro energy storage for Taaleri Energia - Order for an energy storage for Sallila Energia
-
Modernization of an electric arc furnace compensator system at Ovako steel plant in
Finland -
Order for an SVC modernization at ArcelorMittal steel mill in
Poland - Order for an energy storage for Herrfors
JULY-
- Net sales MEUR 15.5 (9.9), increase of 56.4%
- Operating margin (EBITDA) MEUR 0.6 (0.8)
- Operating result EBIT MEUR 0.2 (0.5)
-
Earnings per share 0.00
(0.07) euros - Orders received MEUR 13.7 (9.1), increase of 51.2%
-
The most important achievements in the market:
-
Modernization of an electric arc furnace compensator system at Ovako steel plant in
Finland -
Order for an SVC modernization at ArcelorMittal steel mill in
Poland -
Order of energy storage for Herrfors to operate on the
Fingrid reserve market Merus Power announced onDecember 12, 2023 that it will refine the forecast of the net sales and lower its EBITDA guidance: the company's net sales will increase significantly in 2023 compared to 2022 and will be around MEUR 28-30 and the EBITDA will be positive.
-
Modernization of an electric arc furnace compensator system at Ovako steel plant in
Key FIGURES
1 | 7-12/2023 | 7-12/2022 | Change % | 2023 | 2022 | Change % |
|
|
|
|
|
|
|
Net sales | 15 472 | 9 895 | 56.4% | 29 031 | 16 204 | 79.2% |
Operating margin (EBITDA)
| 581 | 809 | -28.3% | 187 | 591 | -68.3% |
% of net sales | 3.8% | 8.2% |
| 0.6% | 3.6% |
|
Operating result (EBIT) | 200 | 528 |
| -509 | 106 |
|
% of net sales | 1.3% | 5.3% |
| -1.8% | 0.7% |
|
Profit (loss) for the financial year | 28 | 529 |
| -798 | -108 |
|
Earnings per share, eur (undiluted) | 0.00 | 0.07 |
| -0.10 | -0.01 |
|
Earnings per share, eur (diluted) | 0.00 | 0.07 |
| -0.10 | -0.01 |
|
Equity / share, eur | 1.58 | 1.69 |
| 1.58 | 1.69 |
|
Balance sheet total | 21 189 | 24 531 |
| 21 189 | 24 531 |
|
Equity | 12 092 | 12 889 |
| 12 092 | 12 889 |
|
Equity profit-% | 0.2% | 4.2% |
| -6.4% | -0.8% |
|
Interest-bearing net liabilities | 1 400 | -1 445 |
| 1 400 | -1 445 |
|
Net gearing ratio-% | 11.6% | -11.2% |
| 11.6% | -11.2% |
|
Equity ratio-% | 57.1% | 52.5% |
| 57.1% | 52.5% |
|
Liquid assets | 2 615 | 5 287 |
| 2 615 | 5 287 |
|
Cash flow from operating activities | 1 382 | -6972 |
| 42 | -4 965 |
|
Number of shares, 1 000 pcs | 7 645 | 7 645 |
| 7 645 | 7 645 |
|
Average number of shares, 1 000 pcs | 7 645 | 7 645 |
| 7 645 | 7 645 |
|
|
|
|
|
|
|
|
Order intake | 13 718 | 9 075 | 51.2% | 33 805 | 16 884 | 100.2% |
Order book | 13 841 | 9 068 | 52.6% | 13 841 | 9 068 | 52.6% |
Number of personnel on average | 94 | 71 | 32.4% | 88 | 67 | 31.3% |
PROPOSAL FOR THE USE OF PROFITS BY THE BOARD OF DIRECTORS
The Board of Directors proposes that the loss be transferred to the profit/loss account and no dividend be paid.
DISTRIBUTION OF PROFIT FOR THE SHAREHOLDERS
The Board of Directors proposes to the Annual General Meeting that no dividend be paid.
GUIDANCE FOR 2024
CEO KARI TUOMALA COMMENTS ON YEAR 2023:
Energy storages and sustainability as the drivers of our significant growth and operation
The pressure to step up the pace of achieving more renewable energy caused by climate change is increasing day by day.
The transition in energy production poses challenges to the operation of the power system and there is a need for companies like
Growth and investments in the future
During 2023,
In a difficult world situation, we have, however, made investments with an eye to future growth. Our personnel has grown considerably while at the same time employee turnover has been small. We have succeeded in retaining our top experts and also attracted new, talented personnel.
In 2023, the
We have also continued our significant investment in product and software development. Our products are and will continue to be both technologically high quality and state of the art.
Our long-term strategy on the energy storage market is working and also supports the growth of our service business
Development on the energy storage market has continued positive. Our operation has expanded from traditional equipment deliveries to comprehensive partnership with the customer, when, in consultation with the customer, we plan the entire business operation of the energy storage, while simultaneously helping right from the necessary permit applications.
The forthcoming energy storage ordered by Taaleri Energia, the biggest energy storage on the Finnish frequency reserve market, exemplifies such a turnkey delivery, with
The 1.7 MW / 1.7 MWh energy storage ordered by Sallila Energia in June and the 7 MW / 7 MWh energy storage of Herrfors are examples of a more traditional equipment delivery and of a service and maintenance contract. Both have their place in in our operation.
Energy storages are a part of the critical grid infrastructure, where ensuring availability creates a need for services and spare parts. Our services business is therefore growing steadily, as customers need and want support services. In addition to the traditional service business, we are developing and offering smart IoT services for our customers. These include the Merus® MERUSCOPE(TM) remote monitoring and control software, which opens up new opportunities to expand our service business. In addition to the remote monitoring and control software, MERUSCOPE(TM) will also be offering a trading platform for our energy storage customers.
SVC modernizations play an increasingly important role in our sustainable operation
In the power quality market, we have maintained our market share and reached the same level as last year. In 2023, we have carried out several SVC modernizations. Targeting the market's aging installed base, the SVC modernizations constitute an important market for the company. At the same time, we remain true to our sustainability values. In the modernizations, we make use of components already in use but with a longer service life. The customer can maintain and continue to use of these passive components, but the smart components and control systems, which are among our core competencies are renewed.
In all we do, we want to be responsible and communicate openly with our stakeholders. In 2023, we published our first sustainability report covering year 2022 and targeted at investors. We are currently modifying our communications to comply with the new ESG reporting requirements, which will involve us in the near future with the CSRD directive.
FINANCIAL REVIEW 2023 AND JULY-
2023
Net sales of
2023 BALANCE SHEET, FINANCING AND CASH FLOW
Balance sheet total of
Net sales of
PERSONNEL AND MANAGEMENT
The Company employed 97 people at the end of the review period (in 2022, 70 people).
Merus Power Plc Board of Directors was formed by Vesa Sadeharju (Chair),
STRATEGY AND FINANCIAL TARGETS
Our strategy is to increase the sales and profitability of the Company and strengthen its market position in the sustainable energy transition.
The cornerstones of
- Scalable product portfolio
- Our multichannel sales strategy
-
Growth of energy storages in
Europe - Local and global presence of the power quality solutions
-
Increasing the share of services
- Achieve
80 million euro net sales in 2026 primarily through organic growth - On the average over 15 percentage operating profit margin (EBITDA)
- Over 35 percentage equity ratio
OPTION PROGRAMS
On
These share acquisitions based on the option programs must take place in the period
GENERAL MEETING
The Company's Annual General Meeting was held in
The remuneration policy of the Board of Directors and CEO was discussed and approved. The General Meeting also decided on the number of Board members and decided to appoint three members for the next financial period. Vesa Sadeharju (Chair),
The meeting approved the audit fee of the auditor and appointed
SHARES, SHARE CAPITAL, AND SHAREHOLDERS
7 644 966 (7 644 966). The company has only one class of shares, all with equal voting rights, dividend, and the company's assets. The company did not possess any own shares during the review period.
At the end of the review period, the company had 5 019 registered shareholders.
SUMMARY OF TRADING ON NASDAQ FIRST NORTH GROWTH MARKET
Year 2023 | Shares exchanged, pcs |
| Highest rate, EUR |
| Average exchange rate | Closing rate, EUR |
Market value, MEUR | Lowest rate, EUR | |||||
MERUS | 2 207 207 | 11.78 | 6.98 | 3.50 | 5.34 | 4.04 |
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Market value, | 30 886 | 31 612 |
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Shareholders | 5 019 | 5 271 |
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Near future risks and uncertainties
Weak economic growth, inflation, and the rise in interest rates were prominent economic trends during 2023. According to some experts, economic uncertainty may also slow down the pace of investments in the green economy. According to the
Growth driven by the green transition continues strong, however, and climate goals remain as before. For example, the
Availability challenges have so far caused the company some delivery delays, but these have been systematically overcome by the delivery chain. In project-based business, risk management related to component availability and delivery times is always important and we constantly develop our project management process and systems.
The rapid proliferation of the energy transition and the electrification of vehicles have caused increased demand for Lithium ion batteries, hence the manufacturing chain encountered challenges to meet the growing demand. This in turn affects the availability, delivery times, and prices of batteries used as a component in energy storage equipment and constitutes a risk to our energy storage business. During 2023, the availability of batteries was better than in previous years.
The war in
Cyber security is one of the greatest challenges to a modern society. Due to their large size and far-reaching effects, energy grids and the entire energy sector are among the most critical development targets in continuous information technology. Software and electronics also play a key role in the operations of
Our listing brochure published on
CHANGES IN CORPORATE STRUCTURE
OTHER REVIEWS AND EVENTS JULY-
24.8.2023
2.10.2023
27.10.2023
22.11.2023 Static Var Compensator modernization at ArcelorMittal Warszawa steel mill in
12.12.2023 Negative profit warning:
20.12.2023
FINANCIAL REPORTING
Press conference
https://events.teams.microsoft.com/event/7231fb5b-defb-446d-9257-14ff9962c394@eb19cf28-ccec-4816-b423-0b1fd1cedaca
Materials relating to the event will be published on the Company's website after the event at
https://sijoittajat.meruspower.fi/sijoittajatietoa/tiedotteet/.
Publishing of the financial statements
The Financial Statements, Report by the Board of Directors, and the Annual Report for 2023 will be published on
https://sijoittajat.meruspower.fi/sijoittajatietoa/tiedotteet/
The Company's Annual General Meeting is to be held on
https://sijoittajat.meruspower.fi/sijoittajatietoa/hallinto/yhtiokokous/
The Company's Half-year Report will be published on
Board of Directors
For more information:
Certified Adviser:
Distribution:
Key media
The original of this document has been made in Finnish. In case of any discrepancy, the Finnish version will prevail.
https://news.cision.com/merus-power-oyj/r/merus-power-plc-financial-statements-bulletin-1-1----31-12-2023--growth-in-a-challenging-operating-e,c3924471
https://mb.cision.com/Main/20561/3924471/2589727.pdf
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