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ENEDO PLC   Half year financial report August 12th, 2021   at 9.45 a.m.


JanuaryJune 2021 in brief, Continuing operations
- Net sales EUR 18,1 million (EUR 19,7 million)
- Operating profit        EUR -2,9 million (EUR -1,9 million)
- Adjusted operating profit EUR -2,3 million (EUR -1,7 million)
- EBITDA EUR -1,2 million (EUR -0,1 million)
- Adjusted EBITDA EUR -0,6 million (EUR 0,1 million)
- Profit/loss for the period, continuing operations EUR -0,4 million (EUR -2,4 million)*
- Earnings per share EUR -0,01 (EUR -0,28)

The figures in the release are presented from continuing operations unless otherwise noted.

Key indicators, EUR million6mo6mo12mo
Continuing operations:   
Net Sales18,119,738,5
Led Drivers4,54,28,7
Power Supplies10,612,724,1
Power Systems3,02,75,7
Adjusted EBITDA-0,60,1-0,4
Adjusted operating profit/loss-2,3-1,7-3,9
Operating profit/loss-2,9-1,9-4,3
Profit/loss before taxes*-0,4-2,4-5,4
Profit/loss for the period, continuing operations*-0,4-2,4-6,2
Earnings per share, continuing operations, EUR*-0,01-0,28-0,74
Continuing and discontinued operations:   
Earnings per share EUR*-0,01-0,28-0,70
Solvency ratio, %27,14,1-7,4
Net Gearing, %58,51182 
Cash flow from operating activities-1,8-1,9-2,3

*1-6/2021 figures include gross EUR 3,3 million benefit from loan cancellation as part of the completed loan arrangement and related transaction expenses EUR 0,4 million. Net impact EUR 2,9 million.
Key indicators Half year, EUR millionH1/2021H2/2020H1/2020
Continuing operations:   
Net Sales18,118,819,7
Adjusted EBITDA-0,6-0,50,1
Adjusted operating profit/loss-2,3-2,2-1,7
Operating profit/loss-2,9-2,4-1,9

Operating profit/loss-2,9-1,9-4,3
Adjustments in operating profit/loss   
Resctructuring costs related to personnel0,30,0 
Production re-organisation 0,10,2
Enedo planning related expenses 0,10,2
Provision related to a claim0,2  
Adjustments in operating profit/loss Total0,60,20,4
Adjusted operating profit/loss Total-2,3-1,7-3,9
ADJUSTED EBITDA, EUR million6mo6mo12mo
Adjustments in EBITDA   
Resctructuring costs related to personnel0,30,0 
Production re-organisation 0,10,2
Enedo planning related expenses 0,10,2
Provision related to a claim0,2  
Adjustments in EBITDA Total0,60,20,4
Adjusted EBITDA Total-0,60,1-0,4

Estimate of financial development in 2021

Old estimate

The company estimates net sales from continuing operations to exceed EUR 40 million in 2021. EBITDA (adjusted for items affecting comparability) for 2021 is estimated to be positive and operating profit (adjusted for items affecting comparability) to improve from 2020 but to remain negative.

New estimate

The company has decided to retract the previous estimate and not to give a new estimate for 2021 financial development, due to the uncertainties linked to the anticipated turnaround activities and the evolution of the Covid-19 situation.

Mikael Fryklund, Enedo President and CEO

Enedo’s first half net sales of EUR 18,1 million fell EUR 1,6 million behind last year and our loss for the period was also worse than last year by EUR 0,9 million at EUR -3,3 million excluding the net impact of the loan cancellation of EUR 2,9 million. Although the performance in the first half was not a surprise for us, the result is not satisfactory, and we need to accelerate our cost reduction measures to reach a sustainable turn-around. We see that the recovery from the Covid-19 has already begun in some areas of our business, however there is still a long way to go before business returns to normal. We need to secure that our business is profitable even with the current volumes and we collect the benefits of increased volume as increased profits to our bottom line.

In connection with the share issues completed in April, we announced a turnaround program aimed at a total of approximately EUR 4,0 million permanent savings. There is a requirement to speed up and also simplify some of the plans in the turn-around. Turn-around requires clear responsibilities and I have divided our businesses into three responsible units which are Italy, Finland and Operations starting from beginning of July. Italy is headed by Carlo Rosati, Finland by Jussi Vanhanen and Operations by Giampiero Tasselli located in Tunis. In connection with this change, we also changed how we manage our Tunisia plant. We moved Italy operations management to Tunisia and took one big step in making Tunisia fully independent and excellent EMS production plant. We follow our turn-around activities with the above business division respectively. The full updated turn-around plan is still in progress. However it is clear that a significant part of the cost reduction measures will impact our fixed costs base and reducing it in accelerated speed.

The Group's new and unified ERP system went live in finance function beginning of May. The new system will enable cost savings in financial management, the effects of which will start to be visible in the second half of the year. Work on the implementation of the other areas of the new ERP system will continue however the top priority is cost reduction and full ERP completion will follow.

On April 7, 2021, we announced the final result of the rights and directed share issue with gross proceeds of EUR 12 million. Loan arrangement was completed after the new shares were registered on 9th of April 2021. As a result Enedo paid back EUR 5,3 million of loans and EUR 3,3 million of the loans were cancelled. The share issues, together with the loan arrangement have improved the company's balance sheet position.

The Covid-19 situation and the resulting progressing recovery of our customer’s business activities continue to entail significant risks that have effect on Enedo’s business development in the coming months. There is also a shortage of critical components in the market impacting lead-times and thereby business growth. However, I believe that as the Covid-19 situation slowly improves, there is increased demand for our products. Determined execution of anticipated turnaround activities will improve our profitability and eventually make us profitable. Further communication on turnaround activities and anticipated impact will be made separately.

January-June net sales, operating profit and adjusted operating profit

Net sales were EUR 18,1 million (EUR 19,7 million).

Operating loss increased from the comparison period to EUR -2,9 million (EUR -1,9 million). The decline in profitability was mainly due to decrease in business volume and partly by increased component prices eroding product margins. Adjusted operating profit was EUR -2,3 million (EUR -1,7 million).

Business development

The net sales of the Power Supplies product category in the first half of the year were EUR 10,6 million, EUR 2,1 million weaker than at the same time last year. Main driver of the net sales decrease was reduced demand by one customer relating to power supplies for ventilators and extracorporeal oxidizers (ECMO) which accounted for appr. EUR 1,6 million of the decrease.

The net sales of the Led Drivers product category was EUR 4,5 million, EUR 0,3 million higher than in the comparison period of the previous year driven by a stabilization in the leisure and sport related demand.

The Systems product category continued to grow. The net sales of Systems products during the review period was EUR 3,0 million, EUR 0,3 million higher than in the comparison period of the previous year.

The most significant factors affecting business volume in the first half of the year were continuing uncertainty and slow demand in the Led Drivers product category due to Covid-19, weak demand of some Power Supplies category’s customers and continuing growth in the Power Systems product category supported by the MHE product.

Market outlook

In the industrial business, power supplies for LED lighting, measuring devices, healthcare equipment and infrastructure continue to provide many opportunities for growth. The company invests in customer segments where high reliability and long product life cycles are the determining factors.

Short-term risks and uncertainties

General economic developments may affect the company's business environment. Covid-19 has increased the level of uncertainty in the industry and, depending on the development of the pandemic, may have potential effects on our customers' ability to operate, the demand for their end products and the general industrial operating environment. In the Led Drivers and Power Supplies product categories, the effects of Covid-19 may be reflected in a postponement of demand for leisure and sports-related lighting systems when spectator capacity is underutilized. Opening of new retail stores e.g. in the clothing retail business has at least temporarily slowed down, which may affect the demand for new lighting solutions and the renewal of old ones.

The most significant business risks are related to the success of key customers' products in the market. The progress of Enedo's product development projects depends in part on the schedules of customers' own projects. In addition, the fluctuations in demand typical of the market cause rapid changes in Enedo's business. Due to the nature of the business, Enedo is subject to claims, of which the final solution cannot be predicted. Based on the current information, these claims are not expected to have a material impact on the Group's financial position.

The delivery times of the components required by the company are partly long and there may be difficulties in obtaining certain components from time to time, which may affect the delivery capacity. Covid-19 has also increased the level of uncertainty in each country, which may affect our delivery capacity. The effects of Covid-19 can be reflected in an unforeseen change in behavior in both supply chains and the company's customers. Examples of this can be e.g. changes in payment terms and orders. The company's relatively high indebtedness, relatively low liquidity and the use of receivables financing increase the company's sensitivity to negative market changes.

The company’s own production is concentrated in one factory in Tunisia. Tunisian production is exposed to a general country risk. Tunisia's national Covid-19 actions, the political environment and other factors affecting the plant's viability are partly beyond the company's control.

Despite the completed share issues and loan arrangements, there are risks relating to the adequacy of financing, that the company seeks to manage through active planning and implementation of various alternatives. Due to the continued financial uncertainty caused by the Covid-19 pandemic, the Group has updated its estimates on uncertainties relating to liquidity risk, credit and counterparty risk as well as business continuity.


Throughout the review period, we have continued to take active internal measures to ensure the health of our employees and continuity of business. We have implemented internal guidelines and followed the guidelines of the local authorities in each country. Enedo has operations in Tunis (production), Italy (product development, sales), Finland (headquarters, product development, sales) and the United States (sales). Our management team monitors the development of Covid-19 and responds to changes immediately if necessary.

As the Covid-9 pandemic continues and business environment adjusts to the new situation, it is challenging to differentiate the effects of the pandemic from other factors influencing business. Global recovery from Covid-19 has resulted in a global shortage of critical components in the market impacting lead-times and thereby business growth.

Investments and product development        

Investments in the Group's continuing operations during the financial year were EUR 1,3 million (EUR 1,0 million), of which product development capitalizations accounted for EUR 0,7 million (EUR 0,6 million). At the end of the review period, capitalized product development costs in the balance sheet were EUR 4,9 million (EUR 5,1 million).

During the review period, capitalized product development costs were impaired by a total of EUR 0,2 million (EUR 0,1 million) due to Strato Evo product performance.

In total, product development costs during the financial year were EUR 2,2 million (EUR 2,1 million), of which EUR 0,7 million (EUR 0,6 million) were capitalized in the balance sheet and EUR 1,5 million (EUR 1,5 million) were recognized as expenses which was 8,3 % (7,8 %) of net sales.


The net interest-bearing liabilities were EUR 5,1 million (EUR 15,5 million) at the end of the financial period. The net interest-bearing liabilities include EUR 0,8 million (EUR 1,1 million) of IFRS 16 lease liabilities. Main driver in the reduction of net interest bearing liabilities has been the completed share issues and loan arrangement in the first half of the year.

The cash flow from operating activities during the review period was EUR -1,8 million (EUR -1,9 million). In addition to generated loss, the negative cash flow was caused by increased need for working capital as the sales volumes were low and paying aged payables after the share issues. The cash flow after investing activities was EUR -3,1 million (EUR -2,7 million). The Group's solvency ratio was 27,1 % (4,1 %), net gearing 58,5% (1181,9%) and the closing balance sheet was EUR 32,5 million (EUR 32,0 million).

The cash position without undrawn credit facilities totaled EUR 3,6 million (EUR 1,0 million). At the end of the period, the Group had EUR 1,0 million (EUR 1,4 million) of undrawn credit facilities excluding factoring limits.

On April 7, 2021, we announced the final result of the rights and directed share issue with gross proceeds of EUR 12 million. Loan arrangement was completed after the new shares were registered on 9th of April 2021. As a result Enedo paid back EUR 5,3 million of loans and EUR 3,3 million of the loans were cancelled. Share issues and loan arrangement improved Enedo’s cash position by a net of EUR 5,5 million after loan payments and paying fees and transaction expenses. The share issues, together with the loan arrangement improved company's balance sheet position.


Board of Directors

For further information please contact Mr. Mikael Fryklund, CEO, tel. +358 40 500 6864,
On 12th of August at 15:00 – 16:00

Nasdaq Helsinki Oy
Principal media


Enedo is a European designer and producer of high-quality electronic power supplies and systems for critical equipment even in the most demanding environments. Enedo´s mission is to make electricity better – more reliable, more secure, more energy efficient – and just right to fit its purpose. Enedo´s three main product categories are Led Drivers, Power supplies and Power Systems. In 2020 the group´s revenue was EUR 38,5 million. Enedo has 354 employees and its main functions are located in Finland, Italy, Tunisia and USA. The group´s head office is in Finland and parent company Enedo Oyj is listed on Nasdaq Helsinki Oy.