Kati Niemelä, CFO, Nordic Morning Plc
“The more profitable our business is, the more added value we can produce for our stakeholders. We achieved an excellent result in 2013, with strong development in our cash situation and solvency.”
Financial responsibility
For Nordic Morning, financial responsibility means producing financial added value for the company’s key stakeholders, personnel, customers and owner. Important target groups for added value also include partners, investors and the countries and municipalities in which we operate.
The more profitable our business is, the more added value we can produce to our stakeholders.
In 2013, Nordic Morning sold products and services to its customers for the total amount of EUR 123.6 million (115.5) and spent EUR 65.6 million (58.6) on buying goods and services from partners.
Nordic Morning produced financial added value for stakeholders totaling EUR 58.0 million (56.9). Most of this value, EUR 48.4 million (51.2), was distributed to personnel in the form of salaries, pensions and social costs. No dividend was distributed to the owner.
The year 2013
We achieved an excellent result, with strong development in our cash situation and solvency. The operating profit was EUR 4.0 million (EUR -4.1 million). The equity-to-assets ratio increased to 42.2 percent (36.8 percent). Cash and cash equivalents stood at EUR 10.1 million (6.7) and net indebtedness was17 percent (46 percent). We continued to amortize loans according to plan, and new loan financing was not needed.
Internal control and risk management
Good governance, along with active internal control and risk management, effectively secure the profitability of business operations.
In 2013, we revised many of our internal processes and the reporting system to better support the Group companies’ operations. We paid particular attention to working capital efficiency by implementing measures such as speeding up our invoicing processes and agreeing on shorter payment terms with customers. This contributed to the positive development of the cash situation.
We carry out an extensive risk analysis twice a year. Risks are reported and dealt with immediately. Internal auditing helps us predict and recognize future risks ahead of time.
Goals for 2014
We will continue to develop the Group’s administrative processes and the financial reporting system. We will focus on setting, measuring and monitoring strategic goals and developing goal management.
A strong cash situation and a good equity-to-assets ratio enable business development even in a time of market instability. We are confident that Nordic Morning’s profitability in 2014 will be at least at the same level as in 2013, and that we will continue to be successful in the future in increasing added value for our stakeholders.
Added value for stakeholders
| Stakeholder | Indicator | 2013 | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|
| Customers | Sales | 123 576 | 115 491 | 107 611 | 110 882 |
| Suppliers | Cost of goods, materials and services purchased | 65 590 | 58 634 | 50 443 | 50 745 |
| Added value created | 57 986 | 56 857 | 57 168 | 60 137 | |
| Stakeholder | Indicator | 2013 | 2012 | 2011 | 2010 |
| Employees | Wages and salaries, pensions, social costs | 48 393 | 51 273 | 48 798 | 50 342 |
| Public sector | Direct taxes | 123 | -255 | -40 | 244 |
| Financers | Net financing costs | -19 | 600 | 707 | 923 |
| Charitable organizations | Donations | 124 | 125 | 119 | 128 |
| Owners | Dividends | 0 | 0 | 990 | 1 740 |
| Investors | Investments | 3 379 | 7 368 | 5 017 | 3 312 |
| Total added value distributed to stakeholders | 52 200 | 59 111 | 55 591 | 56 689 | |
| Value added remaining in the company | 5 786 | -2 254 | 1 577 | 3 448 | |
| Added value created / FTE (tEUR) | 87 | 81 | 77 | 73 | |
Operating profit and itemization of income taxes by country
| Finland | Sweden | Other countries | Group | |||||
|---|---|---|---|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
| Profit before taxes (EUR 1 000) | 2 744 | -300 | 1 147 | -3 711 | 134 | -104 | 4 025 | -4 115 |
| Income tax for the financial year (EUR 1 000) | -38 | -155 | -123 | -44 | -45 | -4 | -206 | -203 |
Result 2013
Continued growth and
significantly improved results
Nordic Morning Group’s net revenue increased by EUR 8.1 million, and the operative result was EUR 4.0 million. Operating cash flow was EUR 7.6 million. According to its strategy, the Group will continue to reinforce its position as a provider of diverse communication services in the Nordic countries.
Read about Nordic Morning's result 2013 »