Page 22 - Restamax Plc Annual Report 2017

22

GROUP’S BUSINESS ACTIVITIES

2017 IN BRIEF In terms of the level of profitability, Restamax’s
restaurant business and labour hire business are at the
Entire Group: spearhead of their sectors. Due to the nature of the
business, the relative profitability of the labour hire
The Group’s turnover was MEUR 185.9 (MEUR 130.1), business is slightly lower than the restaurant business.
growth of 42.9 per cent. EBITDA was MEUR 22.4 (MEUR As the labour hire business is growing relatively faster
19.4), growth of 15.5 per cent. Operating profit was than the restaurant business, the overall group relative
MEUR 10.8 (MEUR 9.0), growth of 19.7 per cent. profitability is influenced due to this change.

Restaurant business: Especially in the restaurant business, most of the prof-
its are made in the second half of the year due to the
The turnover of the restaurant business segment was seasonal nature of the business.
MEUR 122.2 (MEUR 107.5), growth of 13.6 per cent.
EBITDA was MEUR 16.3 (MEUR 16.5), decrease of 0.9
per cent. Operating profit was MEUR 6.9 (MEUR 7.4), PROSPECTS FOR 2018
decrease of 6.5 per cent.

Profit guidance (as of 20 February 2018):
Labour hire business:

The turnover of the labour hire business segment In accordance with its strategy, Restamax expects
was MEUR 75.6 (MEUR 34.1), growth of 121.5 per cent. the Group’s turnover to increase and profitability to
EBITDA was MEUR 6.6 (MEUR 3.4), growth of 91.9 remain on a good level in both segments in the 2018
per cent. Operating profit was MEUR 3.8 (MEUR 1.6), financial period. The restaurant segment is expected
growth of 140.1 per cent. to reach a turnover of approximately MEUR 140 and
in labour hire a turnover of approximately MEUR 110
Figures in parentheses refer to the same period last is expected, the total turnover being some MEUR 240
year, unless otherwise stated. after eliminations.

Summary Restamax’s goal is to reach a turnover of approximately
MEUR 400 by the end of 2020 after internal elimina-
Restamax Plc’s result for January–December 2017 tions. The goal of the restaurant segment is to reach
was clearly better than the previous year, as had been a turnover of approximately MEUR 200, and the goal
expected. The turnover of the entire Group increased of the labour hire segment is to reach a turnover of
by 42.9 per cent from last year, EBITDA by 15.5 per cent approximately MEUR 220, by the end of 2020.
and operating profit by 19.7 per cent.
Abnormally cold and rainy weather in the summer
put a strain on the Group’s restaurant business in the
second and third quarter of the year, affecting the
result and relative profitability of the 2017 financial
period of the entire Group. The growth rate of business
operations accelerated towards the end of the year, and
with a successful Christmas party season the Group’s
October–December 2017 result was rather good.

Turnover increased due to acquisitions and, especially
in the last part of the year, the increased focus and
investments in sales and marketing. The whole Group
EBITDA and EBIT increased compared to last year.

Job Services One Oy (currently Smile Job Services Oy),
which was acquired to the labour hire business in the last
quarter, executed a stronger than expected result. This
increased the purchase price of the company through
the earn-out mechanism, leading to a significant
non-recurring item of MEUR 1.7 in financial expenses.
EBITDA for the labour hire segment also includes capital
transfer taxes of EUR 300,000 as non-recurring costs
related to the acquisition of the businesses.

Restamax Plc