Interim / Quarterly Report • Jun 14, 2007
Interim / Quarterly Report
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Roblon A/S PO box 120 Nordhavnsvej 1 9900 Frederikshavn Denmark
Tel: +45 9620 3300 Fax: +45 9620 3399 [email protected] www.roblon.com
CVR no. 5706 8515
Stock Exchange Notification no 4 – 2007
June 14, 2007
At its meeting on June 14, 2007 the Board of Directors of Roblon considered and approved the unaudited interim accounts of the company for the period November 1, 2006 – April 30, 2007. The interim report is presented in accordance with the same accounting policies as in 2006.
Frederikshavn, June 14, 2007 Roblon A/S
Klaus Kalstrup Chairman of the Board The main figures for this period compared to the same period of the previous year are as follows:
| Financial Highlights (tDKK): | 2006/07 | 2005/06 | 31/10 2006 |
|---|---|---|---|
| Turnover | 114,182 | 91,214 | |
| Profit on primary activities |
17,439 | 11,563 | |
| Net financing etc. |
462 | 38 | |
| Profit on ordinary activities before tax | 17,901 | 11,601 | |
| Profit for the period | 12,890 | 8,353 | |
| Total assets |
201,254 | 191,849 | 211,805 |
| Capital and reserves, beginning of period. | 169,799 | 150,660 | 150,660 |
| Distributed dividend | -17,691 | -10,615 | -10,615 |
| Sale of own shares | 0 | 11,599 | 11,599 |
| Transferred from profit for the period | 12,890 | 8,353 | 18,155 |
| Capital and reserves, end of period |
164,998 | 159,997 | 169,799 |
| Investment in tangible fixed assets | 4,156 | 862 | |
| Key Figures: | |||
| EPS (Earnings per share of DKK 100) |
36.4 | 24.2 | |
| Profit ratio |
15.3 | 12.7 | |
| ROIC/Return on average invested capital | |||
| (%) |
13.2 | 9.1 | |
| Equity ratio (%) | 82.0 | 83.4 | |
| Return on equity (%) | 7.7 | 5.4 | |
| Intrinsic value of shares |
466 | 452 | 480 |
| Stock-exchange listing, 30/4 |
880 | 770 | 855 |
Key figures are based on the interim accounts.
Comments to the development in the first halfyear
During the half-year Roblon A/S achieved a turnover of DKK 114.2 million and a profit before tax of DKK 17.9 million, which is considerably better than expected.
Turnover increased by 25.2% in total compared to last year.
The primary reason for the improvement of the result is a considerable increase in turnover in Engineering, which was not expected at the beginning of the year. Likewise the two other divisions experienced higher turnover and better results than expected.
In Industrial Fiber sales to the cable industry and to the offshore industry increased compared to last year. The result is better than last year and better than expected.
In Lighting the turnover is also higher than last year. The result is a bit lower than last year, but better than expected.
In Engineering the turnover is significantly higher than last year. Profits are considerably higher than last year and higher than expected.
Investments in tangible fixed assets amount to DKK 4.2 million compared to DKK 0.9 million last year. The major part of the investments concerns tools for Lighting.
Roblon's profit before tax is considerably better than expected at the beginning of the year and the Board of Directors considers the result to be very satisfactory.
Compared to the first half-year, the expectations for the second half-year for the divisions are as follows:
In Roblon Industrial Fiber the turnover and result for the second half-year is also expected to be considerably higher than expected at the beginning of the year, though not reaching the same level as the turnover and result for the first half-year.
In Roblon Lighting the turnover and result for the second half-year is expected to be at the level of the first half-year.
In Roblon Engineering the turnover will be affected by a major project sale with a lower margin than normal. However, the turnover is expected to be lower than that of the first half-year. The result is expected to be considerably lower than in the first half-year.
The above circumstances and the strategy of organic growth with increasing costs will affect the earnings for the second half-year. Roblon A/S as a whole expects a result for the second half-year to be lower than the result of the first half-year. However, the result for the second half-year will be at the level anticipated at the beginning of the year.
The profit after tax will be positively affected by the reduction of the corporation tax from 28% to 25%.
Roblon now expects the turnover for the full year 2006/07 to be in the region of DKK 225 million compared to the earlier estimated DKK 210 million and profit before tax to be in the range DKK 30-32 million against the earlier estimated DKK 24-26 million.
In the following report for the divisions, the profit on primary activities before joint expenditure is stated. Undistributed joint expenditure amounts to tDKK 1,656.
| (tDKK) | 06/07 | 05/06 |
|---|---|---|
| Turnover Profit on primary activities before |
41,131 | 33,515 |
| joint expenditure Profit ratio (%) |
7,573 18.4 |
5,646 16.8 |
Realised turnover to the cable industry as well as to the offshore industry and other industries is higher than last year.
Demand in the market for communication cables, which is by far the most significant for this division, is stable and the turnover to this area is higher than last year and higher than expected. Turnover to the offshore segment and other industries has been considerably higher than last year and than expected. The segment still constitutes a limited part of the activity in the division. The earnings for the above-mentioned product segments are higher than last year and than expected.
Higher contribution margin and slightly lower costs than expected means that the primary result is better than last year and better than expected.
After a high turnover in the first half-year, we now expect slightly lower turnover of products to the market for communication cables as well as products to the offshore segment and other industries in the coming half-year.
Further increase in costs is expected, while the result for the entire year is expected to be higher than anticipated at the beginning of the year.
| (tDKK) | 06/07 | 05/06 |
|---|---|---|
| Turnover | 33,383 | 31,438 |
| Profit on primary activities before | ||
| joint expenditure | 5,295 | 5,673 |
| Profit ratio (%) | 15.8 | 18.0 |
Turnover has increased compared to last year and is also higher than expected. Especially an increase in sale of OEM-products (fibre light used in the products of other companies), has contributed to the increase in turnover.
Large costs are paid for marketing actitivites, and the development of a completely new series of fittings has been completed and the fittings are already marketed.
The result is lower than last year, but better than anticipated at the beginning of the year.
The activity level and thereby the turnover is still expected to be at the same level. The result is also expected to be at the same level as in the first half-year. Focus on sales and marketing will continue and therefore a higher level of costs will be maintained.
For the full year, we now expect slightly higher turnover and a better result than anticipated at the beginning of the year.
| (tDKK) | 06/07 | 05/06 |
|---|---|---|
| Turnover | 39,668 | 26,261 |
| Profit on primary activities before | ||
| joint expenditure | 6,227 | 1,990 |
| Profit ratio (%) | 15.7 | 7.6 |
In the first half-year, Engineering has experienced an unexpectedly large volume of incoming orders, which has contributed to a considerable increase in turnover. There has been an increase within all machine categories. The greatest increase has been experienced with Twister machines.
Turnover as well as result is considerably better than last year and than expected.
For the full year, we expect higher sales than anticipated at the beginning of the year. Despite of expected delivery of a major order with a lower contribution margin than usual, the turnover is expected to be lower in the second half-year than in the first half-year. This also applies for the earnings. For the entire year Engineering expects considerably higher earnings than anticipated at the beginning of the year.
The Board of Directors and Management today considered and approved the interim report for the period November 1, 2006 – April 30, 2007.
The interim report is unaudited and presented in accordance with the provisions of the Danish Financial Statements Act and the Danish requirements for interim reporting for listed companies.
We consider the chosen accounting policies to be appropriate and find that the interim report gives a true and fair view of the company´s assets, liabilities and financial position as at April 30, 2007 and the result of the company´s activities for the period November 1, 2006 – April 30, 2007.
Frederikshavn, June 14, 2007
Klaus Kalstrup Niels Bach
Chairman Deputy Chairman
Henrik Hougaard Ole Krogsgaard Eva Lyngen Jeppe Skovgaard Sørensen
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