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Roblon Interim / Quarterly Report 2019
3456_rns_2019-09-11_7c27a466-7c09-4c0f-9315-c960adab571e.pdf
Interim / Quarterly Report
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Interim report for Q3 2018/2019
Roblon Company Announcement no. 8/2019
Full-year guidance for 2018/19 maintained
Interim report – Q3 2018/19 (the period 1 November 2018 – 31 July 2019)
The Board of Directors of Roblon A/S has today considered and approved the interim report for Q3 2018/19
Summary:
- Order intake for Q1-Q3 2018/19 of DKKm 204.2 (DKKm 178.2). For Q3, the order intake was DKKm 72.3 (DKKm 96.2).
- Order book at 31 July 2019 of DKKm 83.1 (DKKm 71.4).
- Revenue of DKKm 173.0 (DKKm 156.9). Q3 revenue amounted to DKKm 60.8 (DKKm 48.4).
- Operating loss (EBIT) of DKKm 40.1 (a profit of DKKm 5.9). For Q3, EBIT was a loss of DKKm 3.1 (a loss of DKKm 4.9).
- Loss before tax of DKKm 37.3 (a profit of DKKm 8.2). For Q3, the loss before tax was DKKm 2.3 (a loss of DKKm 4.2).
- Loss for the period from continuing operations of DKKm 29.1 (a profit of DKKm 6.4).
The performance for the first three quarters of 2018/19 was adversely impacted by an overall loss of DKKm 26 on a project contract with wind turbine manufacturer Senvion. Roblon has entered into a standstill agreement with Senvion, under which Senvion acknowledges claims in an amount equivalent to USDm 3.6 (approx. DKKm 24.0), provided that Roblon refrains from further legal action until 4 October 2019. For now, the outcome for Roblon of this agreement is subject to considerable uncertainty, and in its guidance for 2018/19 Management has therefore not included the USDm 3.6 in acknowledged claims.
The performance for Q1-Q3 was also affected by unsatisfactory profitability for the FOC product group due to an inexpedient production set-up. The Group has identified and launched initiatives which are expected to lift profitability considerably over the coming 6-12 months.
Roblon
Roblon A/S
Nordhavnsvej 1
DK-9900 Frederikshavn
CVR no. 57 06 85 15
The product mix development adversely affected Roblon's results before tax for Q1-Q3 2018/19. However, for Q3 2018/19 seen in isolation, the product mix effect was positive.
For Q3 2018/19, Management forecast revenue of around DKKm 69 and a profit of around DKKm 0. The lower-than-expected revenue was explained by a few orders that could not be effected due to a global shortage of a critical raw material. Roblon stocked up on this raw material in July and August.
Outlook for 2018/19:
At the end of Q3 2018/19, Management maintains its full-year guidance for 2018/19. Management forecasts revenue of around DKKm 270 (DKKm 221.8) and a loss before tax of around DKKm 20 (a profit of DKKm 9.6).
In connection with the publication of the interim financial statements for H1 2018/19, Management forecast Q4 revenue of around DKKm 88.8 and a profit of around DKKm 15. Management's revised Q4 forecast is revenue of around DKKm 97 and a profit before tax of around DKKm 17.3. Of the expected DKKm 97 revenue for Q4, some DKKm 83 was covered by the existing order book at the end of August 2019 to be executed in Q4 plus revenue realised in August 2019. The remaining approx. DKKm 14 is expected to be realised through the September and October order intake, primarily in the FOC product group.
Frederikshavn, 11 September 2019
Roblon A/S
Jørgen Kjær Jacobsen
Chairman of the Board
Lars Østergaard
Managing Director and CEO
Enquiries regarding this announcement should be addressed to:
Managing Director and CEO Lars Østergaard, tel. +45 9620 3300
Quarterly revenue (DKKm)
Quarterly EBIT (DKKm)
Interim report for Q3 2018/2019
Roblon Company Announcement no. 8/2019
Financial highlights
for the Roblon Group
| Unit | Q3 2018/19¹ | Q3 2017/18¹ | Q1-Q3 2018/19¹ | Q1-Q3 2017/18¹ | FY 2017/18¹ | |
|---|---|---|---|---|---|---|
| Orders | ||||||
| Order intake | DKKm | 72.3 | 96.2 | 204.2 | 178.2 | 226.9 |
| Order book | DKKm | 83.1 | 71.4 | 83.1 | 71.4 | 54.7 |
| Income statement | ||||||
| Revenue | DKKm | 60.8 | 48.4 | 173.0 | 156.9 | 221.8 |
| Gross profit | DKKm | 29.5 | 19.8 | 71.0 | 74.4 | 97.5 |
| Operating profit/loss (EBIT) | DKKm | -3.1 | -4.9 | -40.1 | 5.9 | 5.8 |
| Financial income, net | DKKm | 0.8 | 0.7 | 2.8 | 2.3 | 3.8 |
| Profit/loss before tax from continuing operations | DKKm | -2.3 | -4.2 | -37.3 | 8.2 | 9.6 |
| Profit/loss for the period from continuing operations | DKKm | -1.8 | -3.4 | -29.1 | 6.4 | 7.7 |
| Profit/loss for the period from discontinued operations | DKKm | - | -0.3 | - | 6.9 | 6.9 |
| Profit/loss for the period | DKKm | -1.8 | -3.7 | -29.1 | 13.3 | 14.5 |
| Balance sheet | ||||||
| Cash and securities | DKKm | 60.7 | 121.8 | 60.7 | 121.8 | 122.3 |
| Total assets | DKKm | 238.1 | 276.0 | 238.1 | 276.0 | 290.8 |
| Equity | DKKm | 201.7 | 246.8 | 201.7 | 246.8 | 248.3 |
| Working capital | DKKm | 61.5 | 59.5 | 61.5 | 59.5 | 55.9 |
| Cash flow statement | ||||||
| Cash flow from operating activities | DKKm | -3.6 | 8.1 | -28.5 | 32.7 | 37.1 |
| Cash flow from investing activities | DKKm | 5.4 | -3.9 | 33.2 | -19.1 | -22.2 |
| Of which investment in marketable securities | DKKm | 8.0 | 0.1 | 50.0 | -26.0 | -26.5 |
| Of which investment in property plant and equipment | DKKm | -2.3 | -2.4 | -10.4 | 5.1 | 6.0 |
| Cash flow from financing activities | DKKm | - | - | -17.9 | -17.9 | -17.9 |
| Cash flow for the period | DKKm | 1.8 | 4.2 | -13.2 | -4.3 | -3.0 |
| Unit | Q3 2018/19¹ | Q3 2017/18¹ | Q1-Q3 2018/19¹ | Q1-Q3 2017/18¹ | FY 2017/18¹ | |
| --- | --- | --- | --- | --- | --- | --- |
| Ratios | ||||||
| Book-to-bill ratio | % | 118.9 | 198.8 | 118.0 | 113.6 | 102.3 |
| Revenue growth | % | 25.6 | -19.1 | 10.3 | 7.2 | 11.7 |
| Gross margin | % | 48.5 | 40.9 | 41.0 | 47.4 | 44.0 |
| EBIT margin | % | -5.1 | -10.1 | -23.2 | 3.8 | 2.6 |
| ROIC/return on average invested capital² | % | -9.4 | -15.1 | -40.5 | 6.1 | 4.7 |
| Equity ratio | % | 84.7 | 89.4 | 84.7 | 89.4 | 85.4 |
| Return on equity² | % | -3.2 | -5.5 | -17.1 | 3.4 | 5.8 |
| Employment³ | ||||||
| Average no. of full-time employees | No. | 155 | 92 | 142 | 91 | 96 |
| Gross profit per full-time employee | DKKm | 0.2 | 0.2 | 0.5 | 0.8 | 1.0 |
| Per share ratios | ||||||
| Earnings per DKK 20 share (EPS)² | DKK | -1.0 | -2.1 | -16.3 | 7.4 | 8.1 |
| Price/earnings ratio (PE) | DKK | -179.8 | -135.2 | -11.1 | 38.2 | 32.2 |
| Cash flow from operations per DKK 20 share | DKK | -2.0 | 4.5 | -15.9 | 18.3 | 20.7 |
| Book value of shares² | DKK | 112.8 | 138.0 | 112.8 | 138.0 | 139.0 |
| Market price per share | DKK | 181.0 | 284.0 | 181.0 | 284.0 | 261.0 |
| Price/book value | 1.6 | 2.1 | 1.6 | 2.1 | 1.9 |
¹ The interim report has not been audited or reviewed by the company's auditors.
² The ratio is calculated on a full-year basis.
³ Continuing operations.
The ratios are defined in note 37 to the 2017/18 annual report, Financial ratio definitions and formulas.
Interim report for Q3 2018/2019
Roblon Company Announcement no. 8/2019
Management's review
Consolidated income statement
The business area of the Roblon Group comprises development, production and sales in the industrial fibres industry. The Group has the following two product groups:
- FOC (comprising cable materials and cable machinery for the fibre optic cable industry)
- Composite (comprising composite materials for onshore and offshore industries)
Order intake
The Group's order intake for Q1-Q3 2018/19 was DKKm 204.2 (DKKm 178.2).
For Q3 2018/19, the Group's order intake was DKKm 72.3, against DKKm 96.2 in the year-earlier period. The Q3 2017/18 order intake included DKKm 51.8 from the mentioned project contract with Senvion, which has since then been suspended. Adjusted for this, the order intake was DKKm 72.3 (DKKm 44.4).
Revenue
For Q1-Q3 2018/19, the Group realised revenue of DKKm 173.0, against DKKm 156.9 in the same period last year. Of the DKKm 16.1 improvement, DKKm 9.2 was attributable to FOC and DKKm 6.9 to Composite. Adjusted for the Senvion contract, revenue totalled DKKm 147.6 (DKKm 144.1).
In Q3 2018/19, revenue rose to DKKm 60.8 (DKKm 48.4), and of the increase DKKm 7.9 was attributable to FOC and DKKm 4.5 to Composite. Adjusted for the Senvion contract, revenue totalled DKKm 60.8 (DKKm 36.5).
For Q3 2018/19, Management expected revenue of around DKKm 69, and the lower realised level was due to a few orders not being effected due to a global shortage of a critical raw material. Roblon stocked up on this raw material in July and August.
Operating profit/loss (EBIT)
For Q1-Q3 2018/19, EBIT was a loss of DKKm 40.1, against a profit of DKKm 5.9 in the year-earlier period. The Group's EBIT was adversely impacted by a loss on the Senvion contract totalling approx. DKKm 26, including impairment of intangible assets and working capital amounting to approx. DKKm 17.
The Group's EBIT was also negatively affected by unsatisfactory profitability for the FOC product group due to an inexpedient production set-up. The Group has identified and launched initiatives which are expected to lift profitability considerably over the coming 6-12 months.
Management is still of the opinion that the FOC industry is supported by favourable market conditions and that Roblon is well positioned to lift profitability after launching new initiatives.
EBIT for Q1-Q3 was furthermore adversely affected by the product mix development.
EBIT for Q3 2018/19 was a loss of DKKm 3.1, against a loss of DKKm 4.9 in the year-earlier period. A deferral of revenue to the subsequent quarter due to a shortage of a critical raw material had a negative impact of DKKm 4-5.
Profit/loss before tax
The Group realised a loss before tax of DKKm 37.3 for Q1-Q3 2018/19, against a profit of DKKm 8.2 in the year-earlier period.
For Q3 2018/19, the Group realised a loss before tax of DKKm 2.3 (a loss of DKKm 4.2), against an expected break-even result. The reason for the deviation is the lower than expected revenue in Q3.
Profit/loss for the period from continuing operations
A loss of DKKm 29.1 was realised for Q1-Q3 2018/19, against a profit of DKKm 6.4 in the year-earlier period.
Gross profit and gross margin
The Group's gross profit for Q1-Q3 2018/19 was DKKm 71.0 (DKKm 74.4). The realised gross profit was adversely impacted by an inventory write-down of approx. DKKm 8.4 relating to the previously mentioned loss on the customer Senvion.
The gross margin for Q1-Q3 2018/19 was 41.0%, against 47.4% in the same period last year. For the current financial year, salaries for the US subsidiary's production staff are no longer included, as these are reported under staff costs. In 2017/18, production staff was sourced via an external partner and included in cost of sales. The Senvion inventory write-down has reduced the gross margin by 4.9 percentage points in 2018/19. Another factor in the adverse development was a product mix with a substantially higher cost of sales.
The Group's gross profit for Q3 2018/19 amounted to DKKm 29.5 (DKKm 19.8), and the gross margin was 48.5% (40.9%). The gross profit was favourably affected by an improved product mix, but adversely affected by the above-mentioned lower-than-expected revenue.
Other external costs
Other external costs for Q1-Q3 2018/19 was DKKm 34.3 (DKKm 26.3). The increase was due to increased costs relating to an external service partner in the USA, minor acquisitions, etc. for production due to a substantially higher level of activity in the US subsidiary. Increased travel expenses and selling costs also contributed to the increase.
In Q3, other external costs fell to DKKm 8.1 (DKKm 9.5).
Staff costs
Staff costs amounted to DKKm 63.5 for Q1-Q3 2018/19 (DKKm 38.1). The increase was mainly due to the takeover of production staff in the US subsidiary, who were previously sourced via the aforementioned external partner, and thus
Corporate governance and investor information
Roblon Company Announcement no. 8/2019
previously recognised in cost of sales. Additional hiring in Roblon US also contributed to the increase.
In Q3, staff costs amounted to DKKm 21.8 (DKKm 13.8), and the increase over the year-earlier period mainly related to the takeover of production staff in the US subsidiary.
Depreciation, amortisation and impairment
The Group's depreciation, amortisation and impairment for Q1-Q3 2018/19 amounted to DKKm 17.5 (DKKm 7.9) and included the residual value of intangible assets relating to investments in the wind turbine project with Senvion in the amount of DKKm 8.5. The increase in depreciation, amortisation and impairment was otherwise attributable to the US subsidiary.
For Q3 2018/19, depreciation, amortisation and impairment was DKKm 3.1, against DKKm 3.3 in the same period last year.
Net financial items
Financial items for Q1-Q3 amounted to net income of DKKm 2.8, against DKKm 2.3 in the same period last year. Q3 financial income amounted to DKKm 0.8 (DKKm 0.7).
Tax
Tax is calculated at a rate of 22% of profit for the year before tax.
Consolidated balance sheet
The Group's total assets at 31 July 2019 amounted to DKKm 238.1 (DKKm 276.0).
The Group's working capital at 31 July 2019 amounted to DKKm 61.5 (DKKm 59.5). Total investments in intangible assets amounted to DKKm 6.4 at 31 July 2019 (DKKm 13.0). Investments in property, plant and equipment amounted to DKKm 10.4 (DKKm 9.7).
As reported in Company Announcement no. 5/2019 of 12 April 2019, Roblon recognised a write-off of the residual value of intangible assets, an expected loss on inventories and receivables relating to Senvion in the total amount of DKKm 18.5.
Roblon has furthermore regularly performed impairment tests of the investment in Roblon US, including in connection with the preparation of the interim report for Q3 2018/19. These impairment tests have not given rise to any further adjustments to the financial statements.
The Group's equity stood at DKKm 201.7 at 31 July 2019, against DKKm 246.8 at the same date last year. The equity ratio at 31 July 2019 was 84.7%, against 89.4% at the same date last year.
Consolidated cash flows
The Group's net cash flow from operating activities in Q1-Q3 2018/19 was an outflow of DKKm 28.5 (DKKm 32.7).
The Group's total cash flow from investing activities for Q1-Q3 2018/19 was an inflow of DKKm 33.2 (an outflow of DKKm 19.1). Investing activities comprised sale of securities representing a net inflow of DKKm 50.0 (an outflow of DKKm 26.0), while investment in intangible assets and property plant and equipment represented an outflow of DKKm 16.8 (an inflow of DKKm 6.9, which included the DKKm 9.6 proceeds from the sale of a division).
Cash flow from financing activities, relating to dividend payments, was an outflow of DKKm 17.9 in Q1-Q3 2018/19, in line with the year-earlier period.
Capital resources
At 31 July 2019, marketable securities and net cash amounted to DKKm 62.4, against DKKm 118.3 at 31 July 2018. In addition to this, Roblon has an undrawn credit facility of DKKm 10.0 with the Group's bankers.
Matters of note in Q1-Q3 2018/19
In Company Announcement no.5/2019 of 12 April 2019, Roblon reported that one of the Group's largest customers, German wind turbine manufacturer Senvion, was in financial difficulty and had announced to the public that it was exploring options for a reconstruction of the company's business.
This situation poses significant uncertainty in relation to Roblon's 2018/19 revenue and earnings. As a consequence, Management has written off and expensed the full residual value of intangible assets related to investments amounting to DKKm 8.5 and Roblon's working capital related to the Senvion exposure amounting to DKKm 8.4. The total adverse effect on Roblon's performance is thus DKKm 16.9.
As a consequence of Senvion's situation, as of 12 April 2019 Management eliminated previously forecast revenue and earnings concerning this customer.
This issue was a contributing factor to the downgrade of Management's full-year revenue and earnings guidance for 2018/19, as stated in Company Announcement no. 5/2019.
On 17 April 2019, Senvion secured a financing commitment of EURm 100 from its lenders to stabilise its operations and explore the possibilities of continuing the company's business operations. In the meantime, Roblon's Management has been informed that the Senvion Group's production has been resumed and will continue to some extent. Roblon's Management has not so far been able to obtain more specific information on any forecasts.
In accordance with the contract with Senvion, Roblon has calculated preliminary claims in
Interim report for Q3 2018/2019
Roblon Company Announcement no. 8/2019
terms of costs incurred due to reduced production at Senvion's blade factory and non-performance of the agreed minimum purchases in the first year of the project contract for the period April 2018 to April 2019. Moreover, Roblon has based its claims on the fact that Senvion is not currently purchasing the agreed volumes, and that additional claims for compensation will be made with respect to the remaining two years of the project contract expiring in April 2021 if Senvion fails to purchase the agreed volumes during that period.
In a press release dated 28 August 2019, Senvion announced that it had received several offers for substantial parts of the group. A conclusion with respect to the offers is expected on 10 September 2019. Senvion further announced that its financial situation had improved.
With the assistance of a German attorney, Roblon has sought to secure payment of contractual claims made in the spring of 2019 and has been in dialogue with Senvion. This has resulted in an agreement under which Senvion acknowledges claims in the equivalent amount of USDm 3.6 (approx. DKKm 24.0), provided that Roblon refrains from further legal action until 4 October 2019.
For now, the outcome for Roblon of this agreement with Senvion is subject to considerable uncertainty, and in its guidance for 2018/19 Management has therefore not included the USDm 3.6 in acknowledged claims.
Outlook for 2018/19
At the end of Q3 2018/19, Management maintains its full-year guidance for 2018/19. Management forecasts revenue of around DKKm 270 (DKKm 221.8) and a loss before tax of around DKKm 20 (a profit of DKKm 9.6).
In connection with the publication of the interim financial statements for H1 2018/19, Management forecast Q4 revenue of around DKKm 88.8 and a profit of around DKKm 15. Management's revised Q4 forecast is revenue of around DKKm 97 and a profit before tax of around DKKm 17.3. Of the expected DKKm 97 revenue for Q4, some DKKm 83 was covered by the existing order book at the end of August 2019 to be executed in Q4 plus revenue realised in August 2019. The remaining approx. DKKm 14 is expected to be realised through the September and October order intake, primarily in the FOC product group.
Forward-looking statements
The above forward-looking statements, in particular revenue and earnings projections, are inherently uncertain and subject to risk. Many factors are beyond Roblon's control and, consequently, actual results may differ significantly from the projections expressed in this interim report. Such factors include, but are not limited to, changes in market and competitive situation, changes in demand and purchasing behaviour,
foreign exchange and interest rate fluctuations and general economic, political and commercial conditions.
Roblon's sales are characterised by a structure based on project sales. This makes it difficult at any given time to forecast future revenue for a specific period, i.e. three-month, six-month or 12-month periods.
Financial calendar
| 20/12 2019: | Preliminary statement 2018/19 |
|---|---|
| 23/1 2019: | Annual General Meeting |
Announcements - NASDAQ Copenhagen
During the period 1 November 2018 to 11 September 2019, the company sent the following announcements to NASDAQ Copenhagen; these can be found on the company's website, www. roblon.com.
| No. 11/2018: | Downgrade 2017/18 |
|---|---|
| No. 12/2018: | Preliminary Statement 2017/18 |
| No. 13/2018: | Notice convening AGM |
| No. 1/2019: | Decisions of the Annual General Meeting |
| No. 2/2019: | Interim report for Q1 2018/19 |
| No. 3/2019: | Managers' transactions |
| No. 4/2019: | Managers' transactions |
| No. 5/2019: | Downgrade 2018/19 |
| No. 6/2019: | Interim report for Q2 2018/19 |
| No. 7/2019: | Roblon and wind turbine manufacturer Senvion sign standstill agreement |
Roblon Company Announcement no. 8/2019
Statement by the Management
The Board of Directors and Executive Management have today considered and approved the interim report of Roblon A/S for Q3 2018/19 and the period 1 November 2018 to 31 July 2019.
The interim report, which has not been audited or reviewed by the company's auditor, is presented in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU and additional requirements under the Danish Financial Statements Act.
It is our opinion that the interim financial statements provide a true and fair view of the Group's assets, liabilities and financial position as of 31 July 2019 as well as of the results of the Group's activities and cash flows for the period 1 November 2018 to 31 July 2019.
Furthermore, in our opinion the management's review includes a fair review of the development and performance of the Group's business, results for the period and the Group's financial position together with a description of the principal risks and uncertainties that the Group faces.
Frederikshavn, 11 September 2019
Executive Management
Lars Østergaard
Managing Director and CEO
Board of Directors
Jørgen Kjær Jacobsen
Chairman
Randi Toftlund Pedersen
Carsten Michno
Chief Financial Officer (CFO)
Ole Lønsmann Andersen
Deputy Chairman
Nita Svendsen
Employee representative
Kim Müller
Chief Operating Officer (COO)
Peter Sloth Vagner Karlsen
Flemming Nielsen
Employee representative
Interim report for Q3 2018/2019
Roblon Company Announcement no. 8/2019
Consolidated income statement
for the period 1 November 2018 to 31 July 2019
| DKKm | Note | Q3 2018/19 | Q3 2017/18 | Q1-Q3 2018/19 | Q1-Q3 2017/18 | FY 2017/18 |
|---|---|---|---|---|---|---|
| Revenue | 4 | 60.8 | 48.4 | 173.0 | 156.9 | 221.8 |
| Cost of sales | -31.3 | -28.6 | -102.0 | -82.5 | -124.3 | |
| Gross profit | 29.5 | 19.8 | 71.0 | 74.4 | 97.5 | |
| Work carried out for own account and capitalised | 0.2 | 1.1 | 2.8 | 2.3 | 3.1 | |
| Other operating income | 0.2 | 0.8 | 1.4 | 1.5 | 2.2 | |
| Other external costs | -8.1 | -9.5 | -34.3 | -26.3 | -35.2 | |
| Staff costs | -21.8 | -13.8 | -63.5 | -38.1 | -51.6 | |
| Depreciation, amortisation and impairment | -3.1 | -3.3 | -17.5 | -7.9 | -10.2 | |
| Operating profit/loss (EBIT) | -3.1 | -4.9 | -40.1 | 5.9 | 5.8 | |
| Financial income, net | 0.8 | 0.7 | 2.8 | 2.3 | 3.8 | |
| Profit/loss before tax (PBT) | -2.3 | -4.2 | -37.3 | 8.2 | 9.6 | |
| Tax on profit/loss for the period | 0.5 | 0.8 | 8.2 | -1.8 | -1.9 | |
| Profit/loss for the period from continuing operations | -1.8 | -3.4 | -29.1 | 6.4 | 7.7 | |
| Profit/loss for the period from discontinued operations | - | -0.3 | - | 6.9 | 6.9 | |
| Profit/loss for the period | -1.8 | -3.7 | -29.1 | 13.3 | 14.6 | |
| Earnings per share (DKK) | ||||||
| Earnings per share (EPS), continuing operations | -1.0 | -1.9 | -16.3 | 3.6 | 4.3 | |
| Earnings per share, diluted (EPS-D), continuing operations | -1.0 | -1.9 | -16.3 | 3.6 | 4.3 |
Consolidated statement of comprehensive income
for the period 1 November 2018 to 31 July 2019
| DKKm | Note | Q3 2018/19 | Q3 2017/18 | Q1-Q3 2018/19 | Q1-Q3 2017/18 | FY 2017/18 |
|---|---|---|---|---|---|---|
| Profit/loss for the period | -1.8 | -3.7 | -29.1 | 13.3 | 14.6 | |
| Items that may be recycled to profit or loss: | ||||||
| Fair value adjustment of available-for-sale financial assets | 0.1 | 0.9 | 0.4 | -1.0 | -1.7 | |
| Foreign exchange adjustment of foreign subsidiaries | -0.1 | 0.7 | - | -0.2 | 0.7 | |
| Tax on other comprehensive income | - | -0.2 | -0.1 | 0.2 | 0.4 | |
| Comprehensive income | -1.8 | -2.3 | -28.8 | 12.3 | 14.0 |
Interim report for Q3 2018/2019
Roblon Company Announcement no. 8/2019
Consolidated balance sheet
at 31 July 2019
| DKKm | Note | 31.07.19 | 31.07.19 | 31.10.18 |
|---|---|---|---|---|
| ASSETS | ||||
| Completed development projects | 0.5 | 1.2 | 1.0 | |
| Development projects in progress | 5.7 | - | 5.0 | |
| Trademarks, licenses and customer relations | 7.6 | 16.2 | 17.1 | |
| Other intangible assets | 9.7 | 6.7 | 4.6 | |
| Intangible assets | 23.5 | 24.1 | 27.7 | |
| Land and buildings | 21.4 | 23.1 | 22.7 | |
| Plant and machinery | 21.9 | 21.2 | 21.7 | |
| Other fixtures and fittings, tools and equipment | 1.2 | 0.8 | 0.9 | |
| Property, plant and equipment in progress | 6.9 | 1.4 | 2.1 | |
| Property, plant and equipment | 51.4 | 46.5 | 47.4 | |
| Financial assets | 2.5 | - | - | |
| Total non-current assets | 77.4 | 70.6 | 75.1 | |
| Inventories | 43.7 | 40.4 | 41.5 | |
| Trade receivables | 43.2 | 36.6 | 47.8 | |
| Corporation tax receivable | 9.3 | - | - | |
| Other receivables | 2.1 | 6.6 | 4.0 | |
| Securities | 62.4 | 111.7 | 110.8 | |
| Cash and cash and cash equivalents | - | 10.1 | 11.5 | |
| Total current assets | 160.7 | 205.4 | 215.6 | |
| TOTAL ASSETS | 238.1 | 276.0 | 290.7 | |
| DKKm | Note | 31.07.19 | 31.07.18 | 31.10.18 |
| --- | --- | --- | --- | --- |
| EQUITY AND LIABILITIES | ||||
| Share capital | 35.8 | 35.8 | 35.8 | |
| Other reserves | -1.4 | -2.1 | -1.7 | |
| Retained earnings | 167.3 | 213.1 | 214.3 | |
| Equity | 201.7 | 246.8 | 248.4 | |
| Deferred tax | 4.7 | 4.9 | 4.6 | |
| Other provisions | 0.4 | 0.5 | 0.4 | |
| Total non-current liabilities | 5.1 | 5.4 | 5.0 | |
| Overdraft facility | 1.7 | - | - | |
| Advance payments from customers | 1.3 | 1.5 | 2.3 | |
| Trade payables | 21.2 | 15.6 | 27.1 | |
| Income tax | - | 0.2 | 0.4 | |
| Other payables | 7.1 | 6.5 | 7.5 | |
| Total current liabilities | 31.3 | 23.8 | 37.3 | |
| Total liabilities | 36.4 | 29.2 | 42.3 | |
| TOTAL EQUITY AND LIABILITIES | 238.1 | 276.0 | 290.7 |
Interim report for Q3 2018/2019
Roblon Company Announcement no. 8/2019
Consolidated statement of changes in equity
| DKKm | Share capital | Currency translation reserve | Reserve for available-for-sale financial assets | Retained earnings | Proposed dividends | Total equity |
|---|---|---|---|---|---|---|
| Q3 2018/19 | ||||||
| Equity at 1 November 2018 | 35.8 | -1.6 | -0.1 | 196.4 | 17.9 | 248.4 |
| Comprehensive income for the period | ||||||
| Profit/loss for the period | - | - | - | -29.1 | - | -27.3 |
| Other comprehensive income | - | - | 0.3 | - | - | 0.3 |
| Total comprehensive income for the period | - | - | 0.3 | -29.1 | - | -28.8 |
| Transactions with owners | ||||||
| Dividends paid | - | - | - | - | -17.9 | -17.9 |
| Equity at 31 July 2019 | 35.8 | -1.6 | 0.2 | 167.3 | - | 201.7 |
| Q3 2017/18 | ||||||
| Equity at 1 November 2017 | 35.8 | -2.3 | 1.2 | 199.8 | 17.9 | 252.4 |
| Comprehensive income for the period | ||||||
| Profit/loss for the period | - | - | - | 13.3 | - | 13.3 |
| Other comprehensive income | - | -0.2 | -0.8 | - | - | -1.0 |
| Total comprehensive income for the period | - | -0.2 | -0.8 | 13.3 | - | 12.3 |
| Transactions with owners | ||||||
| Dividends paid | - | - | - | - | -17.9 | -17.9 |
| Equity at 31 July 2018 | 35.8 | -2.5 | 0.4 | 213.1 | - | 246.8 |
| DKKm | Share capital | Currency translation reserve | Reserve for available-for-sale financial assets | Retained earnings | Proposed dividends | Total equity |
| --- | --- | --- | --- | --- | --- | --- |
| 2017/18 | ||||||
| Equity at 1 November 2017 | 35.8 | -2.3 | 1.2 | 199.8 | 17.9 | 252.4 |
| Comprehensive income for the period | ||||||
| Profit/loss for the period | - | - | - | -3.4 | 17.9 | 14.5 |
| Other comprehensive income | - | 0.7 | -1.3 | - | - | -0.6 |
| Total comprehensive income for the period | - | 0.7 | -1.3 | -3.4 | 17.9 | 13.9 |
| Transactions with owners | ||||||
| Dividends paid | - | - | - | - | -17.9 | -17.9 |
| Equity at 31 October 2018 | 35.8 | -1.6 | -0.1 | 196.4 | 17.9 | 248.4 |
Roblon
Company Announcement no. 8/2019
Statement of cash flows
for the period 1 November 2018 – 31 July 2019
| DKKm | Spec. | Q3 2018/19 | Q3 2017/18 | Q1-Q3 2018/19 | Q1-Q3 2017/18 | FY 2017/18 |
|---|---|---|---|---|---|---|
| Operating profit/loss (EBIT) from continuing operations | -3.1 | -4.9 | -40.1 | 5.9 | 5.8 | |
| Operating profit/loss (EBIT) from discontinued operations | - | - | - | -0.8 | -0.8 | |
| Operating profit/loss (EBIT) | -3.1 | -4.9 | -40.1 | 5.1 | 5.0 | |
| Adjustment for non-cash items | A | 1.1 | 2.9 | 25.4 | 7.5 | 10.1 |
| Change in working capital | B | -1.9 | 9.5 | -13.9 | 24.2 | 25.8 |
| Cash generated from operations | -3.9 | 7.5 | -28.6 | 36.8 | 40.9 | |
| Financial income received | 0.4 | 0.6 | 1.8 | 3.2 | 3.6 | |
| Financial expenses paid | -0.1 | - | -0.2 | - | - | |
| Income tax paid | - | - | -1.5 | -7.3 | -7.3 | |
| Cash flow from operating activities | -3.6 | 8.1 | -28.5 | 32.7 | 37.2 | |
| Purchase of intangible assets | -0.3 | -1.2 | -6.4 | -13.0 | -16.6 | |
| Sale of intangible assets | - | - | - | 5.2 | 5.2 | |
| Purchase of securities | -0.5 | -8.2 | -3.9 | -54.9 | -60.0 | |
| Sale of securities | 8.5 | 8.3 | 53.9 | 28.9 | 33.5 | |
| Proceeds from sale of division | - | -0.4 | - | 9.6 | 9.6 | |
| Purchase of property, plant and equipment | -2.3 | -2.4 | -10.4 | -9.7 | -9.3 | |
| Sale of property, plant and equipment | - | - | - | 14.8 | 15.3 | |
| Cash flow from investing activities | 5.4 | -3.9 | 33.2 | -19.1 | -22.3 | |
| Dividends paid | - | - | -17.9 | -17.9 | -17.9 | |
| Cash flow from financing activities | 0.0 | 0.0 | -17.9 | -17.9 | -17.9 | |
| Change in cash and cash equivalents | 1.8 | 4.2 | -13.2 | -4.3 | -3.0 | |
| Cash and cash equivalents at beginning of period | -3.5 | 5.9 | 11.5 | 14.6 | 14.6 | |
| Value adjustment of cash and cash equivalents | - | - | - | -0.2 | -0.1 | |
| Cash and cash equivalents at end of period | -1.7 | 10.1 | -1.7 | 10.1 | 11.5 | |
| DKKm | Q3 2018/19 | Q3 2017/18 | Q1-Q3 2018/19 | Q1-Q3 2017/18 | FY 2017/18 | |
| --- | --- | --- | --- | --- | --- | |
| Spec. A: Adjustments for non-cash items | ||||||
| Depreciation, amortisation and impairment | 3.1 | 3.3 | 17.4 | 8.2 | 10.5 | |
| Provisions | -0.1 | -0.3 | - | -0.2 | -0.3 | |
| Foreign exchange adjustment | -0.2 | -0.1 | -0.4 | -0.5 | -0.1 | |
| Transfers regarding write-off of inventories and receivables relating to Senvion | -1.7 | - | 8.4 | - | - | |
| 1.1 | 2.9 | 25.4 | 7.5 | 10.1 | ||
| Spec. B: Change in working capital | ||||||
| Change in inventories | -5.7 | -0.6 | -2.3 | 35.9 | 32.7 | |
| Change in receivables | -1.0 | 10.7 | 4.1 | 7.9 | 0.7 | |
| Adj., current portion of seller financing | - | - | - | 1.3 | - | |
| Change in current liabilities | 3.1 | -0.6 | -7.3 | -20.9 | -7.6 | |
| Transfers to adjustments for non-cash items regarding write-off of inventories and receivables relating to Senvion | 1.7 | - | -8.4 | - | - | |
| -1.9 | 9.5 | -13.9 | 24.2 | 25.8 |
Interim report for Q3 2018/2019
Roblon Company Announcement no. 8/2019
Notes to the financial statements
- Accounting policies
- Estimates
- Seasonality
- Segment information
Note 1 – Accounting policies
The interim report is presented in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU and Danish disclosure requirements for listed companies. No interim report has been prepared for the parent company.
The accounting policies applied in the interim report are consistent with those applied in Roblon's annual report for 2017/18, which was prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports of listed companies. For a more detailed description of the accounting policies, see the annual report for 2017/18.
New or amended standards and interpretations which have come into force effective for the financial year 2018/19 have no effect on recognition and measurement.
Note 2 – Estimates
The preparation of interim reports requires Management to make accounting estimates that will affect the accounting policies and recognised assets, liabilities, income and costs. Actual results may differ from these estimates.
The most significant estimates made by Management in applying the Group's accounting policies and the most significant uncertainties associated therewith in preparing the condensed interim report are identical to those applying to the preparation of the annual report for 2017/18.
Note 3 – Seasonality
The Group's activities in the interim report have not been affected by seasonal or cyclical fluctuations.
Note 4 – Segment reporting
Roblon's management reporting is based on one segment comprising the following product groups:
- FOC (comprising cable materials and cable machinery for the fibre optic cable industry)
- Composite (comprising composite materials for onshore and offshore industries)
| DKKm | Q3 2018/19 | Q3 2017/18 | Q1-Q3 2018/19 | Q1-Q3 2017/18 | FY 2017/18 |
|---|---|---|---|---|---|
| 4. Segment reporting, continued | |||||
| Revenue from external customers: | |||||
| By product groups | |||||
| FOC | 38.1 | 29.9 | 103.7 | 94.1 | 125.5 |
| Composite | 22.7 | 18.5 | 69.3 | 62.8 | 96.3 |
| Total | 60.8 | 48.4 | 173.0 | 156.9 | 221.8 |
| By geographical markets | |||||
| Denmark | 0.7 | 0.5 | 2.6 | 8.6 | 12.3 |
| United Kingdom | 6.4 | 7.2 | 20.9 | 28.8 | 37.0 |
| Portugal | - | 2.1 | 25.9 | 2.1 | 17.6 |
| Rest of Europe | 16.5 | 11.3 | 41.4 | 43.2 | 54.6 |
| Asia | 7.0 | 4.9 | 16.6 | 10.2 | 15.6 |
| Brazil | 10.6 | 0.7 | 14.5 | 20.0 | 27.8 |
| Latin America | 4.3 | 3.8 | 13.4 | 12.3 | 17.0 |
| USA | 15.3 | 17.9 | 37.7 | 31.7 | 39.9 |
| Total | 60.8 | 48.4 | 173.0 | 156.9 | 221.8 |
Of the Group's non-current assets, DKKm 56.2 were located in Denmark (DKKm 44.9) and DKKm 18.7 in the USA (DKKm 25.7).
The Group's revenue largely derived from the sale of goods.
Of the Group's total revenue, DKKm 45.6 (DKKm 15.9) could be attributed to one customer. Revenue from individual customers thus constituted more than 10% of the Group's total revenue for Q1-Q3 2018/19 and 2017/18, respectively.