Enedo Plc


Enedo Plc’s Financial Statements Release 1 January – 31 December 2020

ENEDO PLC  Financial Statements Release  February 18th, 2021  at 9.45 a.m.

Enedo Plc’s Financial Statements Release 1 January – 31 December 2020

This release is a summary of Enedo's financial statement report January - December 2020. The full report is a pdf attachment to this stock exchange release and is available at company website at

July – December 2020 in brief, Continuing operations
- Net sales EUR 18,8 million (EUR 20,3 million)
- Operating profit EUR -2,4 million (EUR -1,5 million)
- Adjusted operating profit EUR -2,2 million (EUR -1,5 million)
- EBITDA EUR -0,7 million (EUR 0,2 million)
- Adjusted EBITDA EUR -0,5 million (EUR 0,2 million)
- Earnings per share EUR -0,46 (EUR -0,19)

Financial year 2020 in brief, Continuing operations:
- Net sales EUR 38,5 million (EUR 43,3 million)
- Operating profit EUR -4,3 million (EUR -2,6 million)
- Adjusted operating profit EUR -3,9 million (EUR -2,4 million)
- EBITDA EUR -0,8 million (EUR 1,1 million)
- Adjusted EBITDA EUR -0,4 million (EUR 1,2 million)
- Earnings per share EUR -0,74 (EUR -0,31)

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

Key indicators, EUR million6 mo6mo12 mo12 mo
Continuing operations:    
Net Sales18,820,338,543,3
Led Drivers4,45,28,711,5
Power Supplies11,412,924,127,5
Adjusted EBITDA-0,50,2-0,41,2
Adjusted operating profit/loss-2,2-1,5-3,9-2,4
Operating profit/loss-2,4-1,5-4,3-2,6
Profit/loss before taxes-2,9-1,7-5,4-2,7
Profit/loss for the period, continuing operations-3,8-1,6-6,2-2,6
Earnings per share, continuing operations, EUR*-0,46-0,19-0,74-0,31
Continuing and discontinued operations    
Earnings per share EUR*-0,41-0,32-0,70-0,60
Net Gearing, %** 342,1 342,1
Solvency ratio, %-7,411,5-7,411,5
Cash flow from operating activities-0,4-2,6-2,3-0,5
Key indicators Half year, EUR millionH2/2020H1/2020H2/2019H1/2019
Continuing operations:    
Net Sales18,819,720,323,0
Adjusted EBITDA-0,50,10,21,0
Adjusted operating profit/loss-2,2-1,7-1,5-0,9
Operating profit/loss-2,4-1,9-1,5-1,1
* The number of outstanding shares of comparison periods have been revised to correspond the number of outstanding shares after the reverse split.
** The company will not present net gearing for 2020 due to negative equity.  
ADJUSTED OPERATING PROFIT/LOSS, EUR million6 mo6mo12 mo12 mo
Operating profit/loss-2,4-2,4-4,3-4,3
Adjustments in operating profit/loss    
Resctructuring costs related to personnel   0,1
Production re-organisation0,10,20,20,2
Provision release relating to a claim -0,2 -0,2
Enedo planning related expenses0,10,10,20,1
Adjustments in operating profit/loss Total0,20,00,40,2
Adjusted operating profit/loss Total-2,2-2,3-3,9-4,1
ADJUSTED EBITDA, EUR million6 mo6mo12 mo12 mo
Adjustments in EBITDA    
Resctructuring costs related to personnel   0,1
Production re-organisation0,10,10,20,2
Provision release relating to a claim -0,2 -0,2
Enedo planning related expenses0,10,10,20,1
Adjustments in EBITDA Total0,20,00,40,2
Adjusted EBITDA Total-0,5-0,7-0,4-0,6

Estimate of financial development in 2021

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.

Vesa Leino, Enedo President and CEO

Enedo's second half of the year was better than the first half, but clearly worse than expected in terms of net sales and earnings development. The company's own operational improvement actions and planned change projects proceeded, however business development was slower than expected, mainly due to Covid-19 restrictions and impacts.

The supply chain challenges that overshadowed the first half of the year were fully remedied during the second half of the year, and in Tunisia our production remained operational throughout the second half of the year. Delayed deliveries in the first half of the year were largely delivered by the end of September.

Net sales in both LED drivers and especially Systems products increased from the first half of the year. The development of the Systems category business was a bright spot throughout the financial year including the second half of the year. The stronger recovery in customer demand for LED drivers moved forward all the time during the second half of the year and as a result, we lowered our guidance on net sales and profitability in October.

Despite the positive launch of the new sales organization changed in the beginning of 2020 and the growth of the Systems product category, full-year net sales were EUR 38,5 million, EUR 4,8 million behind last year. Adjusted operating profit for the financial year was EUR 3,9 million negative due to low net sales.

For the full financial year, demand for entertainment and culture-related LED drivers decreased significantly from the comparison period and totaled EUR 8,7 million (2019 EUR 11,5 million). The Systems product category's full-year net sales, on the other hand, strengthened by a third to EUR 5,7 million (2019 EUR 4,3 million). The positive development of the Systems category's net sales was mainly due to the completion of the MHE product family's portfolio and sales development, new product orders for train systems and the start of sales in the United States. In the Power Supply category, net sales were EUR 24,1 million, EUR 3,4 million lower compared to the previous year especially due to the delivery challenges in the first half of the year and the temporary decline in demand for customer products.

Geographically, the biggest change was seen in net sales from the Americas market, which in 2018 was EUR 10,7 million, EUR 11,1 million in 2019 and EUR 7,0 million in 2020. Uncertainty in the U.S. market, which began in the latter part of the first half, continued throughout the second half. This was due in particular to the slowdown in the start of sales of new customer relationships already established, the movement restrictions imposed by companies in the United States and the general corona situation in the United States. To respond to the uncertainty in the U.S. market, distributors also continued to optimize inventory levels. However, despite the challenges in the American market, sales of Systems products got off to a good start there.

We responded to the slow recovery in net sales and the postponement of growth by continuing the cost-saving measures initiated in the first half of the year, the most significant of which was the temporary layoffs of Italian personnel. These continued throughout the second half. During the second half of the year, we achieved approximately EUR 0,4 million with the temporary cost savings.

On February 16, 2021, we announced the planning of a EUR 12 million rights issue and a directed issue and the conditional cancellation of EUR 3,3 million of debts. The company intends to implement a financial turnaround program with which the company aims for a significant positive change in its financial result by the end of 2023. The main elements of the turnaround program are the estimated permanent annual savings of more than EUR 4 million in direct and indirect costs over 2021-2023 period compared to the 2020 cost level (excluding layoffs and other temporary savings), 5-10% annual sales growth and a clear improvement in balance sheet and financing structure.

July-December net sales, operating profit and adjusted operating

Net sales were EUR 18,8 million (EUR 20,3 million).

Operating profit decreased from the comparison period to EUR -2,4 million (EUR -1,5 million). The decline in operating profit was mainly due to production restrictions due to Covid-19 and the resulting decrease in net sales. Adjusted operating profit was EUR -2,2 million (EUR -1,5 million).

The net result of EUR 0,3 million originates from release of the escrow funds related to the divestment of telecommnunication business.

Business development

At the beginning of the year, we renewed our business monitoring in accordance with the new product category division and present the development of net sales separately for these three product categories in the financial statements. Enedo's new product categories are Power Supplies, Led Drivers and Systems. The Power Supplies product category consists of industrial power supplies, the Led Drivers category of lighting solutions, and the Systems category includes DC system products and rail power supply solutions.

The net sales of the Power Supplies product category in the second half of the year were EUR 11,4 million, EUR 1,5 million weaker than at the same time last year. The net sales of the Led Drivers product category was EUR 4,4 million, EUR 0,8 million weaker than in the comparison period of the previous year. The Systems product category, on the other hand, saw growth. The net sales of Systems products during the review period were EUR 3,0 million, EUR 0,7 million higher than in the comparison period of the previous year. The most significant factors affecting business volume in the second half of the year were increased uncertainty and slow demand in the Led Drivers product category as a result of Covid-19, delivering delayed orders in the Power Supplies category and good growth in the Systems product category supported by MHE product.

Net sales of the Power Supplies product category during the financial year were EUR 24,1 million, EUR 3,4 million weaker than at the same time last year. The net sales of the Led Drivers product category were MEUR 8,7, EUR 2,8 million weaker than in the last financial year. The Systems product category, on the other hand, saw growth. Net sales of Systems products during the financial year were EUR 5,7 million, which is EUR 1,3 million higher than in the previous financial year.

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 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 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 corona actions, the political environment and other factors affecting the plant's viability are partly beyond the company's control.

The completion of the rights issue, directed issue and debt arrangements involve uncertainty, with the exception of irrevocable subscription commitments. The development of the general stock market and the participation of investors have a material effect on the completion of the rights issue.

There are risks relating to the adequacy of funding, that the company seeks to manage through active planning and implementation of various alternatives. Due to the increased financial uncertainty caused by the Covid-19 pandemic, the Group has updated its estimates related to liquidity risk, credit and counterparty risk as well as business continuity.


Throughout the financial year, we have continued to take active internal measures to ensure the health of our employees and continuity 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 in weekly calls and responds to changes immediately if necessary.
The estimated impact of Covid-19 on net sales during the financial year was negative EUR 3,0 – 4,0 million mainly due to the restrictions on Tunisian production by Tunisian government. There were additional costs associated with Covid-19 prevention, particularly in Italy and Tunisia. The temporary lay-offs of employees due to Covid-19 reduced the Group's operating costs during the financial year. The impact of Covid-19 on the result as a whole was estimated to be negative EUR 0,6 – 1,1 million. As a result of Covid-19 economic stimulus measures, the company raised loans guaranteed by the state-owned MCC in Italy. In Finland and Italy, the company has agreed to postpone certain taxes and employment pension contributions.

Board of Directors’ proposal for the distribution of dividend

The Board of Directors will propose to the Annual General Meeting on April 29th, 2021 that no dividend will be distributed.

Events after the end of the financial year

16.2.2021 - Enedo Plc has agreed conditionally on cancellation of its debts totalling MEUR 3,3, is planning a directed issue and a rights issue totalling approximately MEUR 12, and intends to execute a turnaround program in order to improve its result

16.2.2021 - Notice is given to the shareholders of Enedo Plc to the Extraordinary General Meeting to be held on Tuesday,9 March 2021 at 10.00 a.m. at the head office of the company, address Martinkyläntie 43, Vantaa.


Board of Directors

For further information please contact Mr. Vesa Leino, CEO, tel. +358 40 759 8956,
On 18th of February at 12:00–13:00

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.


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