Welcome to JSA Consultancy Services

A business consultancy, based in London, England, John Sacks' JSA Consultancy Services provides expert, in-depth, information advice and guidance as to how to exploit successfully the office furniture and interiors markets in Europe, North America, Australasia and Japan.

Martela Corp Interim Report

Monday 5 August 2013

Consolidated revenue for the second quarter was EUR 29.3 million (35.1), a
decrease of 16.6 % on the previous year. Net revenue for the 6 months to 30 June 2013 was EUR 61.1 million (67.1), a decline of 8.9% %. Most of the decline
took place in Finland, where revenue was affected by lower demand and by the fact that customer projects were timed more towards the second half of the year. In Poland, however, revenue remained at the 2012 level, while in Sweden revenue was significantly higher than in 2012. In the other markets, the transfer of the Danish business at the end of 2012 from the Martela subsidiary to a dealer slightly reduced (2.1%) consolidated revenue for the period. In Russia, significant year-on-year revenue growth continued, but revenue still remains low in terms of euros.

The operating result for the second quarter was EUR -2.6 million (--0.9). The
operating for January--June was EUR -4.0 million (-1.8). The consolidated
operating result was substantially lower than the previous year due to lower
revenue and a reduced sales margin on products. The lower sales margin is the
result of a different product breakdown compared to the comparison period. In the second quarter, profitability in Finland was also weakened by the new ERP system implemented at the beginning of May. The issues have since been resolved and the system is now fully operational and should improve productivity in the future.

The management guidance for the current year has been revised as follows:
The Martela Group expects its revenue for 2013 to be down year on year and its operating result to be at or slightly below the 2012 level.


In Finland, the demand for office furniture in the first half of 2013 was lower than in 2012. At present, demand focuses largely on various office alteration
and enhancement projects instead of new offices. Among the other market areas Poland still showed some positive signs, and in Sweden the market was somewhat positive in the first half of the year, but there also were some signs of uncertainty. Over the last 12 months, demand from major corporations in Finland and Sweden in particular has increasingly focused on comprehensive solutions, which include both products and services.

Statistics on office construction are available for the first quarter of 2013,
and according to these, 68 % fewer office buildings were completed in
Finland in terms of square metres in the first quarter of 2013 than the
previous year. At the same time, however, only very few building permits (-94%) were granted, and there were 82 % fewer new office building starts. In
other words, the construction of office buildings was at a very low level in
the first quarter. On the other hand it is not possible to make significant
conclusions based on one quarter's statistics because there might be big
variances in quarterly statistics.

The Group's result has not developed in a satisfactory manner and it is
apparent that economic conditions will remain uncertain in the near future. At
the same time Group's operational environment has changed. Importance of
customized, service and trading products has clearly increased. As a
consequence, Martela will adjust its operations to correspond to the changing
conditions. The Group has begun planning for measures to reduce its costs. The goal is to reduce costs by an annual level of EUR 6 million by the end of 2014. In addition to reducing fixed costs, the Group is also preparing measures to improve its delivery and supply chains in order to reduce its variable costs.
Opportunities to lower costs will be sought in various cost groups and it is
likely that there will be an effect on personnel. The principal measures under
consideration are transfers of production between business locations and
merging of support functions, and reorganising and improving the productivity
of poorly performing businesses. At the same time, the Group will invest
resources in improving its ability to offer even better comprehensive
solutions, including services, especially to meet the growing customer need for
Activity Based Office solutions.

Profit before taxes for January--June was EUR -4.6 million (-2.3), and profit
after taxes was EUR -4.5 million (-2.3).

Subscribe to our News Page

Enter your email here and we will tell you when this page is updated.



moreLatest News

Thursday 8 March 2018 Herman Miller International exec to retire

ZEELAND — A member of the executive team at Herman Miller Inc. has announced

Tuesday 27 February 2018 Naughtone Placed No. 22 in the Sunday Times Lloyds SME Export Track 100

naughtone, a furniture design and manufacturing company based in Knaresborough, North Yorkshire,

Wednesday 21 February 2018 Takkt AG acquires Brittish Equip4Work

Takkt AG has acquired 100 percent of the shares of Equip4Work Ltd. Signing and closing of the tra

Tuesday 20 February 2018 Steelcase survey reveals informal space trend

A recent study by office furniture vendor Steelcase has shed some light on what people really wan

Contact Us

JSA Consultancy Services
4-5 Gray’s Inn Square, Gray’s Inn,
London, WC1R 5AH, England

+44 (0) 20 7688 1928