Stock exchange release
December 17, 2018 at 4 p.m.
ASPO RECOGNIZES AN IMPAIRMENT LOSS OF KAUKO'S GOODWILL AND LOWERS GUIDANCE
Aspo Plc has decided to reorganize the business of Kauko Ltd either by divesting or discontinuing the energy business and by rearranging the mobile knowledge work of Kauko (rugged computers, audiovisual equipment and information technology for the healthcare sector) and the administration of Kauko. Aspo will also discontinue to report Kauko as a separate segment from the beginning of 2019.
Aspo has concluded an impairment test for Kauko's goodwill and will recognize an impairment loss of approximately EUR 5 million. This decreases the goodwill arisen in connection with the Kauko-Telko acquisition in 2008 and allocated to the Kauko segment, from the current EUR 9.5 million to less than EUR 5 million. The impairment loss is permanent and has no effect on cash flow. The remaining goodwill of Kauko will be tested annually.
Kauko has not been able to develop in line with the targets, even though its profitability has started improving in 2018 when e.g. the cost efficiency has been improved and unprofitable businesses have been discontinued, such as application business in summer 2018.
Aspo has previously issued guidance that Aspo's operating profit will be EUR 25-31 (23.1) million in 2018.
Aspo's new, lower guidance is: "Aspo estimates that the operating profit will be EUR 20-22 (23.1) million in 2018, including the impairment loss of approximately EUR 5 million of Kauko's goodwill." Other factors affecting the guidance have remained unchanged.
Board of Directors
For further information, please contact:
Aki Ojanen, CEO of Aspo Plc, +358 400 106 592, email@example.com
Aspo is a conglomerate that owns and develops business operations in the Northern Europe and growth markets focusing on demanding B-to-B customers. Our strong company brands - ESL Shipping, Leipurin, Telko and Kauko - aim to be the market leaders in their sectors. They are responsible for their own operations, customer relationships, and the development of these. Together they generate Aspo's goodwill. Aspo's Group structure and business operations are continually developed without any predefined schedules. www.aspo.com