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Francotyp-Postalia Holding AG — Earnings Release 2011
May 26, 2011
162_rns_2011-05-26_96fff1bb-074d-42bf-a4cf-5213e1edbbe0.html
Earnings Release
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Corporate | 26 May 2011 07:00
Francotyp-Postalia Holding AG: Francotyp-Postalia: First quarter of 2011 dominated by restructuring
Francotyp-Postalia Holding AG / Key word(s): Quarter Results/Quarter Results
26.05.2011 / 07:00
Corporate News
Francotyp-Postalia: First quarter of 2011 dominated by restructuring
- Revenue rises to EUR 41.8 million
- One-off effects resulting from setting up of new production line
- Confirmation of outlook for 2011
Birkenwerder, 26 May 2011. Francotyp-Postalia Holding AG, the first multi-channel provider for mail communication, increased its revenue during the first quarter of 2011 by a substantial EUR 8.2 million to EUR 41.8 million, compared with EUR 33.6 million for the same quarter of the previous year. A change in reporting logic as part of the new regulations for sales tax on postal services in Germany that came into effect on 1 July 2010 resulted in a positive revenue effect of EUR 6.7 million. Furthermore, the FP Group also benefited from its success in becoming a complete service provider. As a result, it saw an increase in recurring income from service agreements, leasing and the sale of consumables as well as postal services and software solutions from 73.6% of total revenue in the prior-year period to 77.2%.
Setup of new production line in Wittenberge, Brandenburg
During the first three months of 2011, the company achieved EBITDA of EUR 6.3 million before restructuring costs. During the same quarter of the previous year, EBITDA (earnings before interest, tax, net financial income, depreciation and amortisation) was EUR 7.1 million. At the beginning of 2011, the Management Board decided to set up a new production line in Wittenberge, Brandenburg for the new Phoenix franking system. Planned restructuring costs of EUR 2.3 million were incurred for this new production line and the pending closure of the Birkenwerder production site during the first quarter of 2011. In addition, the company has also made a provision of EUR 0.3 million for cost adjustments at its Dutch subsidiary. These two factors meant that EBITDA after restructuring costs amounted to EUR 3.7 million for the first quarter of 2011.
Due to these restructuring costs, the consolidated net result was EUR -0.9 million compared with EUR -0.7 million for the first quarter of 2010. 'The realignment of production is a measure of key importance in securing the future of the entire FP group. Although impacting on our result in the short term, it will form the basis for a sustained improvement in our financial and earnings power over the coming years', explains Hans Szymanski, CEO and CFO of Francotyp-Postalia Holding AG.
At EUR 1.5 million during the first quarter of 2011, free cash flow, the sum of cash inflows from operating activities and cash outflows from investing activities, remained below the previous year's level of EUR 5.0 million. The FP Group has on the one hand kept its trade payables down, compared with the same period of the previous year, and on the other has seen a significant temporary increase in its trade receivables as a result of accounting effects in the Netherlands and the USA. The FP Group expects to see increased cash flow from operating activities over the course of the year, with the company continuing to invest heavily in expanding its range of fully electronic products, accessing new markets and the new franking system.
FP Group continues to anticipate EBITDA of between EUR 25 and 27 million
Overall, the FP Group's operating business for the first quarter of 2011 was positive. An important contributory factor here was the future-orientated Services business. The FP Group also focused its investment on the USA and Sweden especially in order to extend its market share in these important markets in the medium term. As a result, the company is confirming its February forecast for 2011 as a whole. The FP Group is anticipating revenue of EUR 160 to 165 million and EBITDA of between EUR 25 and 27 million before restructuring costs. In addition to the increase in revenue resulting from the new VAT legislation, the FP Group is still likely to benefit from ongoing development to become a complete service provider for mail communication.
More information: www.francotyp.com
Contact
Francotyp-Postalia Holding AG
Corporate Communications
Sabina Prüser
Tel: +49 (0)3303 525 410
Fax: +49 (0)3303 53707 410
E-mail:[email protected]
The FP Group in Brief
Francotyp-Postalia Holding AG is the first multi-channel-provider provider for mail communications. The FP Group's range of products and services includes franking and inserting machines, the direct collection of business mail to hybrid-mail and full digital mail solutions for private and commercial users. Headquartered in Birkenwerder near Berlin, the Group's wide product spectrum enables it to provide tailored mail management services. With a corporate history that goes back over 85 years and local branches in many industrialised countries, the FP Group currently holds around 10% of the worldwide franking machine market. Today it is profiting in all its segments from the increasing liberalisation of mail markets and the trend for businesses to outsource their outbound mail processes to professional service providers. Total revenue in financial 2010 came to 147.3 million euros. Worldwide, the Group employs over 1,000 people.
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| Language: | English |
| Company: | Francotyp-Postalia Holding AG |
| Triftweg 21-26 | |
| 16547 Birkenwerder | |
| Deutschland | |
| Phone: | +49 (0)3303 525 777 |
| Fax: | +49 (0)3303 53 70 77 77 |
| E-mail: | [email protected] |
| Internet: | www.francotyp.com |
| ISIN: | DE000FPH9000 |
| WKN: | FPH900 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart |
| End of News | DGAP News-Service |
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| 126264 26.05.2011 |