Reka Industrial Oyj

Reka Industrial Oyj released its unaudited interim report for Q1 and Q3 of 2024. The company has been undergoing a strategic transformation since selling Reka Cables Ltd in April 2023, which resulted in a EUR 31.0 million gain. The group's turnover for January-September 2024 was EUR 20.7 million, a significant decrease from EUR 84.6 million the previous year, largely due to the exclusion of Reka Cables' figures. EBITDA also fell to EUR 0.1 million from EUR 38.0 million. The company's cash and financial assets totaled EUR 26.0 million, with investments in low-risk assets. Reka Rubber, the primary business segment, saw a decrease in turnover to EUR 20.7 million from EUR 23.6 million and a drop in EBITDA to EUR 0.8 million from EUR 1.4 million. Challenges include lower order volumes and increased costs, although efforts to improve efficiency and pass on cost increases are underway. The company is also focusing on sustainability initiatives, including reducing emissions and improving energy efficiency. Reka Industrial aims to grow into a medium-sized listed company within five years through strategic acquisitions, leveraging its expertise in industrial manufacturing and international operations. The company is also seeking a new Managing Director for Reka Rubber Ltd, with the current President and CEO, Sari Tulander, temporarily filling the role. No major events occurred after the review period, and the challenging market conditions are expected to persist in the near term.

Reka Industrial Oyj released its unaudited half-year financial report for January-June 2024. The report highlights the company's financial performance following the sale of Reka Cables to Nexans Group in April 2023, which resulted in a notable increase in cash equivalents and subsequent investments in low-risk instruments and short-term deposits. The company paid EUR 12.0 million in dividends in May 2024, and at the end of the review period, cash and cash equivalents stood at EUR 26.7 million. Reka Industrial's current industrial business focuses on Reka Rubber, a leading manufacturer of industrial rubber products in Northern Europe. The Rubber segment reported a turnover of EUR 14.7 million, down from EUR 17.1 million the previous year, due to market uncertainties affecting order volumes and lead times. Profitability was impacted by decreased volumes and delays in transferring cost increases to customers. The company is actively working on improving productivity and profitability, including ongoing investments in production capacity and efficiency. Key financial figures for the first half of 2024 include a turnover of EUR 14.7 million, an EBITDA of EUR -0.1 million, and a result for the period of EUR -0.2 million. The balance sheet total at the end of the review period was EUR 61.9 million, with interest-bearing liabilities of EUR 6.9 million. Reka Industrial is committed to sustainability, aligning its efforts with the UN Global Compact initiative and focusing on reducing emissions, improving energy efficiency, and minimizing rubber waste. The Rubber segment achieved a bronze rating in the EcoVadis sustainability assessment and is part of the chemical industry's Responsible Care program. The company's strategy aims to grow its turnover to become a medium-sized listed company within five years, leveraging its industrial manufacturing expertise and international operations. The board has set criteria for the next stages of strategy work, with Sisu Partners as the financial advisor. The company continues to invest mainly in low-risk instruments and short-term deposits during the strategy process. No major events occurred after the review period, and the challenging market situation is expected to persist throughout the year. The full half-year report is available on Reka Industrial's website.

On June 11, 2024, Reka Industrial Plc announced the initiation of a recruitment process to appoint a new Managing Director for its subsidiary, Reka Kumi Oy. Until a new Managing Director is appointed, Sari Tulander, the President and CEO of Reka Industrial, will temporarily assume the role in addition to her current duties. The Board of Directors expressed their gratitude to the former Managing Director, Tero Manner, for his contributions. The change aims to enhance efficiency, profitability, and future growth. Further information is available from Leena Saarinen, Chair of the Board of Directors, and Sari Tulander, President and CEO. Reka Industrial's class B shares are listed on Nasdaq Helsinki Ltd.

Reka Industrial Plc held its Annual General Meeting (AGM) on 23 April 2024, where it approved the financial accounts for 2023 and granted discharge from liability to the Board and Managing Director for the same period. A dividend of EUR 2.00 per share will be paid for the financial year 2023 on 3 May 2024. The Board is authorised to decide on an additional dividend of up to EUR 1.20 per share, with the authorisation valid until the next AGM. The AGM approved the 2023 remuneration report and the updated version of the Remuneration Policy for governing bodies. The Board's annual remuneration, auditors’ fees, and travel expenses were also approved. Four members were elected to the Board and KPMG Ltd was elected as the Company’s auditor. The Board has been authorised to decide on the acquisition of the Company’s own shares, with the maximum number of class B shares to be acquired not exceeding 588,076. This authorisation replaces the previous one given at the AGM on May 24, 2023. The Board is also authorised to decide on the handover of own shares, with a maximum of 588,076 B shares. This authorisation also replaces the one given at the previous AGM.

Reka Industrial Plc has released its interim report for Q1 and Q3 of 2024. The company's financial situation is reflected in the order volumes of its Rubber segment. The report indicates that Reka Industrial's cash and cash equivalents totalled at EUR 38.7 million, and it is proposed to share EUR 12.0 million by dividends in May 2024. The company's industrial business consists of Reka Rubber, which saw a decrease in turnover due to market uncertainties. The Rubber segment's turnover was EUR 7.4 million, down from EUR 8.8 million. Despite the challenging market situation, Reka Rubber maintains a strong position in its selected market segments. The company's strategy work continues, with investments made mainly to low-risk instruments and short-term deposits. No major events occurred during the financial period, and the company's strategy process continues.

Reka Industrial Plc's shareholders, representing over 50% of the votes, have proposed a resolution to the Annual General Meeting (AGM) on 23 April 2024. The proposal includes confirming the number of board members at four, with no deputy members to be elected. The shareholders have also suggested the re-election of Päivi Marttila, Eeva Raita, Markku E. Rentto, and Leena Saarinen to the board, with Leena Saarinen as Chairperson and Päivi Marttila as Vice Chairperson. The proposed annual remuneration for board members is EUR 25,000, EUR 50,000 for the chairperson, and EUR 2,500 for committee members. Travel expenses for board members will be compensated, and voluntary pension insurance contributions will be paid. No separate meeting fees are to be paid.