Fortaco completes the sale of its marine and energy business in Kalajoki and Sepänkylä in Finland
Fortaco Group Holdco Plc | PRESS RELEASE | 1 October 2024 at 14.30 EEST
Meet Our Premium Guest
Join Ari Vatanen at Subcontracting Trade Fair next week.
Ari will be sharing his experiences in business and rally and why he has decided to be a part of the Fortaco journey. You can meet him at our stand on 1-3 October.
Ari joined the Fortaco team in 2022 when he became an ambassador for Fortaco. Sharing the same values, always pushing the limits in a car and business, and looking at how to improve performance has been a great match for everyone.
Fortaco aims to be a premium service and product provider for our customers, and having Ari Vatanen onboard is well-aligned and an exciting chance for cooperation.
We are excited to spend the coming days with Ari and warmly welcome you to have a chat and a cup of coffee with him!
Gathering of industry leaders in Tampere
Autumn is here and so will soon be Subcontracting Trade Fair.
Welcome to meet Team Fortaco at the annual Subcontracting Trade Fair in Tampere on 1-3 October. Have a chat with our professionals and let us explore how Fortaco can support your business on its journey to success.
The event venue is the Tampere Exhibition and Sports Center, and you can find our team at the stand A 630.
For three days, Subcontracting Trade Fair, Finland’s leading industrial event will offer visitors a unique overview of the industry’s prospects and future. At the expo are present metal, electronics, plastics and rubber industries, industrial ICT solutions, as well as design and consulting within these fields.
See you soon in Tampere!
[Register for free entrance, click here]
Fortaco Group Holdco Plc’s Half-Year Review January–June 2024: Strategy implementation continues – core business and efficiency improvements progressing as planned
Fortaco Group Holdco Plc | Half-Year Review | 26 August 2024 at 5:00 p.m. EESTCategories: Stock exchange releases
More Than a Collaboration
Fortaco x Toyota
Our partnership with Toyota is strongly driven by our shared values, and for years, the Fortaco team has been learning Lean Management from the best.
Business Site Holic had an honor to host Toyota Lean Management Centre. This time, focusing on the implementation, coaching, and training of the TPS or Toyota Production System.
Innovation and excellence are the cornerstones of our business, and having Toyota coaching us in these, helps us to transfer the gained value to our customers.
Toyota’s approach values its employees and encourages their input, helping us to support our teams’ engagement in our processes.
Why do we work with Toyota?
Because we care about innovation.
Because we strive for excellence.
Because we are a strategic partner.
Because we shape the future together.
Because we are unlike traditional suppliers.
Together we shape the future.
Business Site Narva Growing
Exciting times at Narva Business Site.
Fortaco Estonia will open a new facility by the end of this year, which is an important milestone for the factory and Narva town development.
Advanced production specialization line, prefabrication equipment, welding robots, and CNC-machinery centers offer customers competitive solutions and strong operational excellence.
This important factory extension will offer jobs for 40-50 new employees in the beginning.
Extension creates 8,000 m2 additional floor space for Narva Business Site operations, in addition to the current 35,000 m2 located in Narva city centre - with the total land area of approx. 100,000 m2.
Fortaco’s five steel fabrication factories located in Estonia, Finland, and Poland offer manufacturing capabilities with the best-in-class equipment, including design, engineering, and aftermarket services.
Capacity expansion
Business Site Holic capacity extension project is soon ready.
The new factory is a solid cornerstone for the current and future growth of the vehicle cabin business.
The extension is a critical platform to further support our customers by offering vehicle cabin assembly and production capacity based on a high degree of automation and strong operational excellence. Investing in automatization means investing in the future.
The 4000m2 factory extension will be finalized in autumn when operations in the factory will start.
Our factory in Holic, Slovakia offers vehicle cabin manufacturing capabilities to the world’s leading OEM customers, including design & engineering and aftermarket services.
Four vehicle cabin plants, four nice locations, four teams, and a common target: the best-in-class vehicle cabins and services for our customers.
ZAPYTANIA OFERTOWE z dnia 20.05.2024 r.
This is a tender inquiry for our new Business Site in Poland.
W związku z planowaną realizacją projektu pn. “Fortaco smart factory – utworzenie nowego zakładu w Knurowie” finansowanego w ramach:
KRAJOWEGO PLANU ODBUDOWY I ZWIĘKSZENIA ODPORNOŚCI,
Komponent A „Odporność i konkurencyjność gospodarki”,
Cel szczegółowy: Rozwój narodowego systemu innowacji: wzmocnienie koordynacji, stymulowanie potencjału innowacyjnego oraz współpracy pomiędzy przedsiębiorstwami i organizacjami badawczymi, w tym w zakresie technologii środowiskowych,
Reforma: A 2.1. Przyśpieszenie procesów robotyzacji i cyfryzacji i innowacji,
Inwestycja: A 2.1.1.
Data publikacji zapytań ofertowych: 29.05.2024 r
Ostateczny termin składania ofert upływa dnia: 01.07.2024 r.
Komunikacja w postępowaniu o udzielenie zamówienia, składanie ofert, wymiana informacji (składanie pytań do zamówienia) oraz przekazywanie dokumentów i oświadczeń odbywa się pisemnie za pomocą maila: fortacokn@bldg.pl
1. Zapytanie_ofertowe nr 25_2024_Zestaw stacji roboczych i punktów dostępowych
2. Zapytanie_ofertowe nr 28_2024_Przenośne ramię pomiarowe
Fortaco Group announces the successful completion of its Written Procedure to waive certain terms under the terms and conditions of the Bonds and certain security agreements
Fortaco Group Holdco Plc (the "Company") today announces the successful completion of the written procedure (the "Written Procedure") that was initiated on 10 May 2024 in relation to the Company's outstanding senior secured bonds due 2027 with ISIN NO0012547274 (the "Bonds"), regarding waiving certain terms under the terms and conditions of the Bonds and certain security agreements relating to, inter alia, the Bonds, as specified in the notice of Written Procedure dated 10 May 2024 (the "Proposal"). The last time and day for the holders of the Bonds (the "Bondholders") to vote in respect of the Proposal was 15.00 (CEST) on 27 May 2024.
In the Written Procedure, a sufficient number of Bondholders participated in order to form a quorum, and a requisite majority of the Bondholders voted in favour to approve the Proposal, i.e. (i) carrying out a divestment of the shares in Fortaco Zrt with a transaction structure consisting of inter alia: (A) converting certain group internal loans granted to Fortaco Zrt to equity contributions, (B) the Group acquiring certain equipment and giving Fortaco Zrt the right to use such equipment, without any compensation, while retaining full ownership until equipment is paid by Fortaco Zrt to the Group in full and (C) the granting of certain long-term loans to Fortaco Zrt, (ii) releasing the transaction security over seven real estate properties located in Finland for the purposes of facilitating a disposal of such properties, (iii) an asset sale whereby Fortaco Oy (being an obligor and subject to transaction security) will dispose of all or a substantial part of its assets, and (iv) carrying out certain mergers between members of the Group, in each case on the principle terms and as further described in more detail in the notice of the Written Procedure.
The waivers in respect of the Proposal shall be effective as per 27 May 2024.
For further information
Lars Hellberg
+358 40572 9488
lars.hellberg@fortacogroup.com
Categories: Stock exchange releases
Fortaco Group Holdco Plc’s Business Review January–March 2024: Market demand remained soft – actions to improve efficiency progressing
This release is a summary of Fortaco Group Holdco Plc’s Business Review January–March 2024. The full release is attached and available on our website at https://investors.fortacogroup.com.
Unless otherwise stated, the comparison figures in brackets refer to the corresponding period of the previous year.
Financial highlights: January–March 2024
Reported financials
Note: Comparison figures do not include MauserCABS and Buisard Cabins that were acquired
in Autumn 2023.
- Order intake was EUR 109.7 (96.1) million.
- Net sales were EUR 105.8(96.1) million.
- Recurring EBITDA was EUR 4.3 (8.2) million, i.e. 4.0 (8.5) per cent of net sales.
- EBITDA was EUR 3.2 (7.4) million, i.e. 3.1 (7.7) per cent of net sales.
Pro forma financials
Note: Pro forma financials are based on the “New Fortaco” scope, i.e. excluding the marine, energy and heavy project business that are under strategic review. Comparison figures are not shown as MauserCABS did not report intra-year financials prior to the acquisition by Fortaco.
- Pro forma order intake was EUR 99.4 million.
- Pro forma net sales were EUR 96.7 million.
- Pro forma Recurring EBITDA was EUR 5.2 million, i.e. 5.4 per cent of net sales.
- Pro forma EBITDA was EUR 4.2 million, i.e. 4.3 per cent of net sales.
Operational highlights
- In February, Fortaco announced it had started a strategic evaluation of its marine, energy, and heavy project businesses, while these three business sites are not considered strategic anymore.
- After the review period in May, the first part of the strategic review was completed as Fortaco announced the sale of its heavy project business in Jászberény, Hungary to Cyclus GmbH (50%) and Ask US Management s.r.o. (50%). Fortaco’s EBIT and equity were negatively impacted by the classification of Fortaco Zrt in Hungary to consitute asset held for sale and resulting an impairment loss of EUR 9.6 million during the review period. The estimated short-term negative cash-flow impact originating directly from the transaction is EUR 6.5 million. The business has been clearly loss making. During the last 12 months ending March 2024, the recurring EBITDA and EBITA losses from this business amounted to EUR -3.9 million and EUR -5.0 million, respectively. Additionally, the incurred non-recurring costs amounted to EUR 0.6 million during the same period. The transaction is subject to the approval of Fortaco’s bondholders and some customary closing conditions, and it is expected to be closed by the end of June 2024. For further information, please see the press release about the divestment, published on 10 May 2024.
- In March, Fortaco successfully placed a subsequent bond issue in the amount of EUR 25.0 million and by received an equity injection of EUR 10 million from the owner One Equity Partners.
- Strategic investment programs as well as efficiency and capacity alignment programs progressing.
Key figures
Fortaco Group key financials
|
MEUR |
01-03/24 |
01-03/23 |
1-12/23 |
Last 12 months |
|
Net sales |
105.8 |
96.1 |
373.8 |
383.5 |
|
EBITDA |
3.2 |
7.4 |
17.3 |
13.1 |
|
% of net sales |
3.1 % |
7.7 % |
4.6 % |
3.4 % |
|
EBITA |
-10.1 |
4.9 |
5.1 |
-9.8 |
|
% of net sales |
-9.5 % |
5.0 % |
1.4 % |
-2.6 % |
|
Non-recurring items – EBITDA impact |
1.0 |
0.8 |
7.1 |
7.4 |
|
Recurring EBITDA |
4.3 |
8.2 |
24.4 |
20.5 |
|
% of net sales |
4.0 % |
8.5 % |
6.5 % |
5.3 % |
|
Non-recurring items – EBITA impact |
10.6 |
0.8 |
7.1 |
17.0 |
|
Recurring EBITA |
0.5 |
5.7 |
12.3 |
7.2 |
|
% of net sales |
0.5 % |
5.9 % |
3.3 % |
1.9 % |
|
Balance sheet ratios |
||||
|
Return on Capital Employed % (ROCE) |
0.9 % |
15.4 % |
5.7 % |
2.9 % |
|
Equity ratio % |
20.7 % |
24.4 % |
24.8 % |
20.7 % |
|
Net debt |
94.0 |
51.3 |
91.2 |
94.0 |
|
Net gearing |
136.2 % |
89.2 % |
119.9 % |
136.2 % |
|
Net debt / last 12 months recurring EBITDA |
4.6x |
1.9x |
3.7x |
4.6x |
Note: MauserCABS and Buisard Cabins included in the financials from the closing of the respective acquisition onwards (MauserCABS closing in September and Buisard Cabins in October 2023).
Guidance for 2024
Fortaco does not provide guidance for the financial year 2024.
Lars Hellberg, President & CEO comments
The market demand in Fortaco’s main markets remained soft in the first quarter of the year. Net sales increased by 10 per cent to EUR 105.8 (96.1) million, driven by the successful acquisitions of MauserCABS and Buisard Cabins in autumn 2023. The underlying market growth excluding the impact of the acquisitions was clearly negative. This was mainly due to the reduction of customer orders in most of Fortaco’s main market segments.
In the first quarter, recurring EBITDA was EUR 4.3 million, i.e. 4.0per cent of net sales. Excluding the marine, energy, and heavy project businesses that are under strategic review, recurring EBITDA was EUR 5.2million. The profitability was burdened by declining market conditions, losses incurred in the businesses that are under strategic review and negative currency impact due to strengthening Polish Zloty. We are continuing our actions to further increase the efficiency of operations, adjust capacity and improve profitability. We are also carrying out price increases to compensate for the inflationary pressures on our cost base.
OEMs (Original Equipment Manufacturers) and their distributors are still digesting their abnormally high inventories and the continuing geopolitical uncertainty, combined with the postponement of interest rate cuts by the central banks, are keeping our customers cautious and prolonging sales processes. However, our customer pipeline looks strong and we are confident that when the market situation improves, we will be in a good position to benefit from the ensuing growth.
Investing for growth
Fortaco continues to execute investments e.g. in a steel fabrication capacity in our new factory in Gliwice, expanding a vehicle cabin capacity in the Holic factory, Slovakia, and expanding operations in Narva, Estonia. These investments will support our strategy to expand technology offerings and to ensure we can serve our customers’ ever-expanding needs. At the same time, we are making our contribution to ensuring Europe has a competitive and future-proof manufacturing industry so we can grow and win together. These investments ensure that we can maintain our excellent delivery accuracy and have the needed capacity to fulfil our customers’ needs when the markets eventually pick up.
In March, we further strengthened our financial position by successfully placing a subsequent bond issue in the amount of EUR 25.0 million and by receiving an equity injection of EUR 10 million from the owner. The bond issue was met with a strong demand from primarily new and existing institutional investors based in the Nordics and continental Europe. Following the bond issue, the outstanding amount under the bonds is EUR 127.5 million.
A solid financial position enables us to carry out our expansion strategy, including the target of expanding our geographical footprint beyond Europe and extending our offering to cover new customer segments.
Strategic review progressing as planned
In February, we announced that Fortaco had started a strategic evaluation of its marine, energy, and heavy project businesses, while these businesses are not considered strategic anymore. In May, the first part ofthe review was completed as we announced the sale of our heavy project business in Jászberény, Hungary to Cyclus GmbH (50%) and Ask US Management s.r.o. (50 %). I’m happy that we have found a good new home for this business. The review regarding also the remaining business is proceeding as planned and the evaluation is still expected to be completed during the first half of 2024.
Getting ready for the Corporate Sustainability Reporting Directive (CSRD)
We are making good progress with our Sustainability Agenda that was launched in 2023. In the first quarter, the focus was on preparing the Group’s Climate Program and getting ready for the CSRD reporting by conducting a double materiality assessment. Fortaco’s Top 100 leaders have also been intensively trained in sustainability. Going forward, we are continuing to raise awareness of sustainability internally and externally, as well as creating a structure for sustainability-related processes.
Committed to deliver a solid financial performance in 2024
I’m happy to see the professionalism of the Fortaco team with our never-ending Make Tomorrow Safer and Better enthusiasm. Fortaco’s decentralised governance model enables business sites to run their daily operations independently and effectively. I’m confident that Fortaco is in a good position to take advantage of the emerging opportunities when the markets eventually pick up.And we are fully committed to delivering a solid financial performance also in 2024.
Events after the reporting period
On 10 May 2024, Fortaco announced the sale of the heavy project business in Jaszbereny, Hungary. The transaction is part of the strategic evaluation of Fortaco’s marine, energy and heavy project business announced on 28 February 2024.
On 10 May 2024 and connected to the above mentioned announcement, Fortaco called for a written procedure to request certain consents from its bondholders to execute needed actions as part of the strategic evaluation. The last day for voting in the written procedure is 27 May 2024.
Financial reporting in 2024
Fortaco publishes the Half-Year Review for January-June 2024 on Monday 26 August 2024.
Fortaco Group Holdco Plc
Board of Directors
Further information
Lars Hellberg
President & CEO
+358 40572 9488
lars.hellberg@fortacogroup.com
Kimmo Raunio
Senior Executive Vice President & CFO
+358 40593 6854
kimmo.raunio@fortacogroup.com
Categories: Stock exchange releases