Wulff-yhtiöt Plc

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Arttu has written about Wulff’s Q1. :slight_smile:

Wulff’s revenue growth was strong, but profit clearly weakened. The challenging nature of the workplace product market continues, but accounting firm acquisitions, the ramp-up of Wulff Works, and the growth of other services create good preconditions for the group’s profit growth. However, we reiterate our reduce recommendation due to a neutral valuation outlook and lower our target price to 3.0 euros (previously 3.1 euros) due to forecast changes. Uncertainty related to profit development and return on capital, as well as high indebtedness, increase risks, which keeps us out of the stock at the current valuation.

Quoted from the report:

Wulff’s free cash flow (-1.7 MEUR) turned negative in a seasonally weak quarter. Without the impact of acquisitions, free cash flow in Q1 was -0.5 MEUR. The company’s balance sheet position remained quite tight, with net debt to EBITDA at 3.2x. The equity ratio was a reasonable 38%. The debt situation is not alarming, but we would like to see the balance sheet situation improve to a more sustainable level.

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Here are Sale’s comments when Wulff sold its Espoo property. :slight_smile:

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Arttu has prepared a pre-company report as Wulff publishes its results on Thursday :slight_smile:

We anticipate revenue growth to have continued, driven by services, while declining product sales volumes will weigh down the operating result to the comparison period’s level. We included the impact of the real estate transaction in our forecasts during the update. We reiterate our target price of 3.0 euros and our reduce recommendation, as the expected return is too narrow relative to the risks.

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Wulff Achieves Company’s Highest Revenue in History – Profitability Dipped

today at 09:45 ∙ Arvopaperi

Office services provider Wulff Group published its April-June results on Thursday. The company’s revenue grew significantly, and comparable operating profit remained at the level of the comparison period.

Wulff’s second-quarter revenue improved to 31.0 million euros from 25.5 million euros in the comparison period of last year. Inderes, which follows the company, had expected the figure to be 28.1 million euros.

Comparable operating profit remained at 1.2 million euros, the same level as the comparison period. Inderes’ estimates were 1.1 million euros. The operating profit margin as a percentage of revenue decreased to 3.9 percent from 4.6 percent in the comparison period.

Profitability dipped slightly.

Wulff’s comparable earnings per share decreased to 0.07 euros from 0.20 euros a year ago.

Wulff keeps its broad guidance unchanged: the company estimates revenue to grow and comparable operating profit to remain at a good level in 2025.

The company expects service businesses, in particular, to grow from 2024.

In the earnings release, Wulff’s CEO Elina Rahkonen describes the second quarter as record-breaking. The company achieved the highest revenue in its history.

“Growth has been strong for a year now: this was already the fourth consecutive quarter in which revenue has grown by double digits,” Rahkonen states.

The operating profit of the Workplace Services segment more than sextupled during the first half of the year, and in Workplace Services, it grew significantly and in line with our expectations.

Staffing and Consulting also grew. The company has accelerated the growth of accounting services through acquisitions.

“In the Products for the Workplace segment, the market situation remains cautious, and this is reflected in purchasing decisions. The segment’s revenue decreased by 3.0 percent in the second quarter compared to the previous year,” Rahkonen states.

Wulff Achieves Company’s Highest Revenue in History – Profitability Dipped

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Kurssien ja niiden muutosten kyselyt, kauhistelut ja hehkuttelut (Osa 4)
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Arttu has made a new company report on Wulff after Q2. :slight_smile:

Wulff’s Q2 operating profit remained at the comparison period’s level despite strong sales growth. The sales distribution is developing in a more favorable direction for the company, but in the short term, the cyclical product business is weighing on the company’s earnings development. We raise Wulff’s target price to 3.2 euros (previously 3.0e) in line with increased forecasts. We see the stock’s valuation as neutral and the upside limited, which is why we reiterate our reduce recommendation.

Quoted from the report:

Forecast risks are concentrated in the product business

The key forecast risks are concentrated in the expected market turnaround for the product business (2026-27) and the resulting earnings growth of the volume-dependent segment. Products for work environments is currently Wulff’s largest segment, so its development largely determines the group’s direction while the service businesses are in their most aggressive growth phase.

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Wulff expands operations again:

It’s great that Wulff has the courage in this economic climate to expand its operations into ever new business areas. As the economic situation improves, there could be many growing businesses. Of course, a pessimist already sees quite a hodgepodge around working life and its own risks.

Wulff is also at a quite interesting stage right now. The last report was relatively unsurprising in terms of its main lines, but it concealed the good growth and profitability of Wulff Works. Workplace services (including Works as the largest component) already generated half of Wulff’s total operating profit, growing by 118.8% compared to the corresponding quarter of the previous year. If growth continues strongly and profitably in the future, and the economic situation also helps, then there is potential for good figures. Sami Asikainen, who came from Eezy, has done a good job. The new consulting business was also already profitable starting from April.

On the other side of the scale, there is the “Products for Work Environments” segment, where development has been sluggish, but it too has naturally suffered from the poor economic climate.

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So, a question: how much of the reported Wulff Works profit flows to Wulff’s shareholders? Is it that 51%? @Arttu_Heikura was apparently going on parental leave and Olli is finishing up, so who will be following Wulff now?

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Minority interests are a steady -0.6 million euros in the forecasts for the coming years. One would think these should rather grow as Works and Consulting grow?

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“The total estimated value of the framework arrangements announced with this notice EUR 55,000,000” A framework agreement for office supplies made through Hansel 2025-2027(2029). However, it probably didn’t exceed the notification thresholds for the company…

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Yesterday, Wulff announced new members of its

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Here are Arttu’s preliminary comments as Wulff publishes its Q3 report on Monday. :slight_smile:

We expect revenue to have continued its growth, supported by service businesses. The volume growth of services should efficiently convert into operating profit, although we expect an operating result in line with the comparison period, as the negative earnings leverage from product business offsets the earnings growth brought by services. We believe the company will reiterate its guidance, which indicates revenue growth and a good profit level. Other key factors in the report, in our opinion, are market outlook, the realization of cost savings on the income statement, and the progress of selection optimization measures.

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“Wulff Q3: revenue and operating profit at record levels”

JULY–SEPTEMBER 2025 IN BRIEF

Revenue was EUR 31.2 million (26.2), revenue grew by 19.4%

EBITDA was EUR 3.1 million (1.4) and comparable EBITDA was EUR 2.2 million (1.4)

Operating profit (EBIT) was EUR 2.3 million (0.8) and comparable operating profit (EBIT) was EUR 1.5 million (0.8). Operating profit % was 7.5 (3.1) and comparable operating profit % was 4.7 (3.1)

Earnings per share (EPS) was EUR 0.26 (0.04) and comparable earnings per share (EPS) was EUR 0.14 (0.04)

Equity ratio was 39.4% (41.5)

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By the way, Wulff had a strong report this morning. In Services, Works continued its strong performance, consulting was profitable, and in Products, profitability turned for the better, while demand was commented to have recovered in September.
Last year’s Q4 was not very strong. Services made an operating profit of €0.1 million, and within that, consulting had a -€0.1 million impact. It’s not a seasonal quarter for Works, but it has still grown so much from last year that one can well assume comparable operating profit in Services will rise to €0.5 million as consulting no longer brings a negative impact on results. This, of course, also includes the acquired accounting firms. Products, on the other hand, made €0.7 million in Q4 last year, and profitability has now improved this year (e.g., Turku store closed). In addition, demand was commented to have improved in September. Inderes predicted a comparable operating profit of €1.2 million for Q4 before the report, but now there are certainly good chances to exceed that. This year’s comparable EPS could settle somewhere around a good €0.3.

Q1 still faces a weak comparison period, so I can easily see an adjusted EPS of over €0.4 for next year if development continues as it is. If the economic cycle also supports growth, Wulff has good cards for the future.

It’s a shame that Inderes seems to be a bit unsure right now about who is following Wulff, as positive things are happening rapidly in the company. I felt the same way about Tekova earlier.

EDIT. I was completely wrong to complain. Arttu is apparently busy at work and has even interviewed the CEO. I thought Arttu was on a longer vacation. Hand up as a sign of error :raised_hand:

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Arttu interviewed Wulff’s CEO Elina Rahkonen regarding Q3. :slight_smile:

Topics:

00:00 Introduction
00:09 Strong performance in the beginning of the year
01:22 Staffing services have grown strongly
02:52 Acquisition strategy for accounting firms
05:23 Fewer acquisitions seen recently
06:03 Profitability of the Products for Work Environments segment improved
07:04 Effects of assortment renewal on margins
08:27 Signs of recovery in the Products for Work Environments segment
09:25 Updated strategy
13:54 Drivers behind the guidance

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Arttu has published a new company report on Wulff after Q3. :slight_smile:

Wulff reported a stronger-than-expected improvement in results. The sales distribution is developing in a more favorable direction for the company, and the uncertainty related to the turnaround in results has slightly eased in our view. We raise Wulff’s target price to 3.50 euros (previously 3.20 e) in line with increased forecasts. We see the stock’s valuation as moderate and the risk-reward ratio attractive, which is why we raise our recommendation to ‘add’ (previously ‘reduce’).

Excerpt from the report:

Cash Flow Increased and Balance Sheet Position Improved

*Operating cash flow for the first three quarters improved to EUR 3.8 million (Q1-Q3’24: EUR 1.8 million), driven by the improvement in results. Free cash flow, considering acquisitions, was around zero (excl. M&A EUR 2 million), whereas in the comparison period, the figure was negative. The sale of a property released over EUR 6 million in cash, part of which was used to repay interest-bearing debts. Thanks to reduced net debt (EUR 14.6 million incl

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Apologies for the low activity on Wulff’s forum. I am indeed currently on paternity leave and will return to work in the second week of December.

The monitoring of Wulff will indeed be transferred to me, and I came in for one day to digest the Q3 results. The company has seen positive development in relation to our expectations from recent quarters. Now, operating profit has also increased at the group level, the outlook for service businesses seems strong, and it appears that the decline in product sales is also behind us. For this reason, I believe that the predictability of the results has improved somewhat, which increases confidence in the company’s turnaround. The report provides more detailed justifications for why we changed our view from negative to positive, but an estimated P/E of 8x for next year doesn’t seem very challenging when earnings appear to be growing from here on.

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Wulff Works expands into a new industry sector with Wulff Doctors:

“Roslund has already worked in the medical personnel leasing industry for over 20 years.” Roslund was recruited from Eezy, from where also Works’ leader Asikainen and most likely

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Wulff has experienced stronger-than-usual buying pressure for a couple of days. Has Wulff been featured somewhere recently?

By the way, Wulff’s CEO Elina Rahkonen was nominated to Duell’s board. She has previously been on Lapwall’s board, at least.

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The continuation of September-like development would provide Wulff Works with more support for growth.

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Atte reported on Wulff’s new acquisition in Turku :slight_smile:

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Regarding relevant buzz for Wulff Works in the Finnish economy, in Eezy’s thread:

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