Interesting case, too bad analyst coverage no longer opens-
So 6 million euros comes from machines, spare parts, brand.
With this, according to its announcement, the company becomes net debt-free
Remaining for shareholders (1.293 million pcs)
-Manilla Oy, which with a turnover of 1.8 million euros makes a zero profit
-finished product inventory / net working capital 4.2 million euros
-premises in Outokumpu and Lempäälä. Buildings and structures on the balance sheet 1.4 million euros
-shell for those considering listing
? what has happened since 30.9.2024, and what will happen before customer commitments are delivered? Clearance sale of finished product inventories? On the other hand, customer commitments are said to be fulfilled
-administrative costs, shutdown costs ?
-interest expenses ?
Perhaps someone could estimate the remaining value, it would seem crazy for example
-Manilla Oy: 0.0 million euros (not making money)
-net working capital 4.2 million euros -30% discount and write-down = 3.0 million euros
-buildings 1.4 million euros -30% discount and write-down: 1.0 million euros
-shell company: +1.0 million euros
-shutdown costs, administration -1.0 million euros
-interest -0.5 million euros
=> 0+3.0+1.0+1.0-1.0-0.5 = 3.5 million euros
3.5 million euros / 1.293 million shares = 2.71 eur/share
The above calculation is thus based on estimates, please calculate it properly, someone who knows how!
The funds received from the planned Transaction would significantly improve the Company’s financial position, and the Company estimates that with the funds received from the Transaction, the Company will be able to pay its debts to the Company’s main financiers, so that the Company would be net debt-free after the Transaction is completed.
Effects on the Company’s Business
If the planned Transaction is completed, the Company’s agri-product, i.e., baling net, production would be discontinued in Outokumpu. According to the preliminary plan, the Company would continue its production until the end of the year, and the Company is committed to fulfilling all current production needs and orders agreed with its customers for at least the financial year 2025 and partly for the financial year 2026. If the preliminary plan is implemented, the Company would ensure that any potential shutdown of production would be carried out in accordance with these commitments, and that any potential transfer of the Transaction’s subject to Portugal would be carried out thoughtfully, so that the Company could ensure the delivery of high-quality products expected by its customers.
Piippo’s subsidiary Manilla Oy will continue the Company’s consumer business as normal. Established in 2019, Manilla Oy imports and distributes consumer products related to tying, fastening, and lifting in Finland and neighboring areas. Manilla’s turnover for the financial year 2024 was 1.8 million euros and operating profit was 6 thousand euros. Manilla Oy employs 3 people and purchases its necessary warehousing, administrative, and premises services from the Company. In addition, the Company’s balance sheet will retain the current finished product inventory, the Company’s owned premises in Outokumpu, and the property located in Lempäälä, which the Company’s board is evaluating in its study.
As a result of the potential arrangement, Piippo’s board will begin a study on the future of the remaining parent company and Manilla Oy, and it intends to decide on the future strategy by the time the second phase of the Transaction is implemented. The board is evaluating the possibility of continuing business operations, as well as, among other things, the possibility of selling the remaining business or the Company’s entire share capital to a Company planning a so-called reverse listing.
The Company’s net working capital on 30.9.2024 was 4,155 thousand euros.
