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Earnings Release • May 6, 2005

News Details

Corporate | 6 May 2005 08:00

ARQUES publishes audited accounts and annual report for 2004

Corporate-news processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Starnberg, May 6, 2005 ARQUES publishes audited accounts and annual report for 2004 Provisional figures confirmed – Record sales and profits The Starnberg-based equity investment company ARQUES Industries AG (ISIN DE0005156004) today published its audited consolidated financial statements for the 2004 business year. The Supervisory Board has endorsed the annual financial statements of the parent company and the consolidated financial statements prepared by the Executive Board. Thus the annual financial statements are approved. The 2004 annual report will be available for download in PDF format on http://www.arques.de shortly. As already announced when the provisional results were published on March 21, 2005, ARQUES achieved a record in terms of both revenues and profits. Consolidated revenues climbed from EUR 28.7 million to EUR 128.6 million (+ 348.1%), with EUR 80 million of the total contributed by the revenues of the companies consolidated for the first time in the 2004 business year. ARQUES added teutonia Kinderwagenfabrik GmbH, SKW Stahl-Metallurgie Holding GmbH, sound and thermal insulation specialist E. Missel GmbH & Co. KG and Colordruck Pforzheim GmbH & Co. KG to its portfolio of subsidiaries during 2004. Annualised consolidated revenues, assuming all the subsidiaries had been consolidated from January 1, 2004, even reached EUR 262.6 million compared with EUR 70 million in the previous year (+275.1%). A regional breakdown shows 33.4% of revenues generated in Germany, 38.6% in the rest of Europe and the remaining 28.0% outside of Europe. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to EUR 10.4 million compared with EUR 5.6 million (+ 85.7%). Since most acquisitions were not consolidated until the second half of 2004, these results reflect merely part of the ARQUES Group’s strong performance. Consolidated profit rose from EUR 5.0 million to EUR 38.7 million (+ 667.8%). This total includes what are known as bargain purchases worth EUR 33.4 million. This is the negative goodwill that arises when the actual value of the participating interest acquired exceeds the purchase price paid, even after all the related risks have been taken into account and any necessary provisions set up. Since April 1, 2004, a new IFRS regulation (IFRS 3.57, 2004) requires any residual negative goodwill to be recognised immediately as an extraordinary gain once the acquired assets and liabilities have been remeasured. Earnings per share adjusted for minority interest totalled EUR 20.95. After adjustment for minority interest, earnings per share amounted to EUR 20.71 compared with EUR 3.16 last year (+ 555.4%). This positive result led to an increase in shareholders’ equity of EUR 7.6 million to EUR 53.2 million (+ 599.6%). The Group equity capital ratio rose from 19.5% to 37.5%. The cash flow from operating activities totalled EUR 10,6 million in the year just completed. The ARQUES Group employed an average of 997 people during the year. A list of further key data is included in the table at the end of this press release. The success of the 2004 business year enables the Executive Board and the Supervisory Board to propose to the Annual General Meeting of Shareholders on July 14, 2005 that the dividend payout be increased 15% compared with the previous year, to EUR 1.15 per share. “We can look back with some pride on an extremely successful business year in 2004. We were able to add further high-potential subsidiaries to our portfolio and achieve huge success with restructuring in a very short period of time”, says Dr. Peter Löw, the Chairman of the Executive Board of ARQUES Industries AG. “We’ve already successfully completed three acquisitions in 2005, with yearly revenues in excess of EUR 100 million on an annualised basis. Our pipeline is full of further high-potential projects.” EUR millions 2003 2004 Change (%) Consolidated revenues 28.7 128.6 + 348.1 EBITDA 5.6 10.4 + 85.7 EBIT 5.0 7.1 + 40.8 Profit from ordinary activities 4.8 6.8 + 40.7 Consolidated profit 5.0 38.7 + 667.8 Earnings per share (EUR ) 3.16 20.71 + 555.3 Total assets 38.9 141.7 + 263.8 Shareholders’ equity 7.6 53.2 + 599.6 Equity capital ratio (%) 37.5% 19.5% ARQUES Industries AG ( http://www.arques.de ) specialises in the acquisition and development of corporate spin-offs and companies in transitional situations. The Starnberg-based equity investment company buys companies on the basis of net asset valuations, before restructuring them under its own managers and with the help of a task force comprising specialist in-house consultants. Measures concerning active management and development range from revising the product portfolio and enhancing operations to boost efficiency through to implementing new technologies. The shares of ARQUES Industries AG are traded on the OTC market under the code “AQU” (ISIN: DE0005156004). End of announcement (c)DGAP 06.05.2005 —————————————————————————— WKN: 515600 ; ISIN: DE0005156004; Index: Listed: Freiverkehr in Frankfurt, Berlin, München und Stuttgart 060800 Mai 05