AI assistant
Roblon Interim / Quarterly Report 2023
3456_rns_2024-06-18_e5548bcc-1a42-4028-a7a0-e710ecc22e52.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Roblon
Roblon A/S | Fabriksvej 7, Gærum | DK-9900 Frederikshavn | CVR no. 57 06 85 15
Contents
02 Highlights
03 Financial highlights
04 Interim report for H1 2023/24
06 Full-year guidance for 2023/24
06 Financial calendar and company announcements
07 Statement by Management
08 Income statement and statement of comprehensive income
09 Balance sheet for gain and return
10 Statement of changes in equity
11 Statement of cash flows
12 Notes to the financial statements
Interim report for H1 2023/24
Roblon Interim report for Q2 2023/24
Roblon's revenue and earnings for the first half of 2023/24 were in line with expectations
Selected financial highlights
- The Group's order intake amounted to DKKm 185.9 in H1 2023/24 (DKKm 175.6), and at 30 April 2024, the Group's order book stood at DKKm 106.0 (DKKm 118.6).
- Revenue of DKKm 155.0 (DKKm 171.7).
- Gross margin of 52.3% (49.5%).
- Operating profit before depreciation, amortisation and impairment and special items (EBITDA) of DKKm 4.4 (DKKm 6.3).
H1 Revenue (DKKm)
H1 EBITDA before special items (DKKm)
Full-year guidance for 2023/24
Management maintains the previously announced guidance of revenue of around DKKm 370, an operating profit before depreciation, amortisation and impairment and before special items (EBITDA) of around DKKm 25 and an operating profit before special items (EBIT) of around DKKm 0.
H1 EBIT before special items (DKKm)
Roblon Interim report for Q2 2023/24
Financial highlights
for the Group
| Unit | Q2 2023/24¹ | Q2 2022/23¹ | H1 2023/24¹ | H1 2022/23¹ | FY 2022/23 | |
|---|---|---|---|---|---|---|
| Orders | ||||||
| Order intake | DKKm | 104.9 | 75.5 | 185.9 | 175.6 | 308.7 |
| Order book | DKKm | 106.0 | 118.6 | 106.0 | 118.6 | 71.3 |
| Income statement | ||||||
| Revenue | DKKm | 82.5 | 90.4 | 155.0 | 171.7 | 350.1 |
| Gross profit | DKKm | 43.1 | 42.2 | 81.0 | 85.0 | 169.3 |
| Operating profit/loss before depreciation, amortisation and impairment and special items (EBITDA) | DKKm | 5.2 | 2.9 | 4.4 | 6.3 | 10.9 |
| Operating profit/loss before special items (EBIT) | DKKm | -1.3 | -3.9 | -8.7 | -7.5 | -16.0 |
| Net special items | DKKm | - | - | - | - | 17.9 |
| Operating profit/loss after special items (EBIT) | DKKm | -1.3 | -3.9 | -8.7 | -7.5 | 1.9 |
| Net financial items | DKKm | -0.4 | -1.0 | -2.1 | -3.0 | -5.0 |
| Profit/loss before tax from continuing operations | DKKm | -1.7 | -4.9 | -10.8 | -10.5 | -3.2 |
| Profit/loss for the period from continuing operations | DKKm | -3.2 | -3.7 | -12.0 | -7.9 | -4.6 |
| Profit/loss for the period from discontinued operations | DKKm | 0.5 | - | 0.5 | 0.1 | - |
| Profit/loss for the period | DKKm | -2.7 | -3.7 | -11.6 | -7.9 | -4.6 |
| Balance sheet | ||||||
| Cash and cash equivalents | DKKm | 5.6 | 12.1 | 5.6 | 12.1 | 33.2 |
| Assets | DKKm | 290.0 | 333.8 | 290.0 | 333.8 | 368.1 |
| Working capital | DKKm | 104.6 | 130.4 | 104.6 | 130.4 | 141.1 |
| Invested capital | DKKm | 185.8 | 189.0 | 185.8 | 189.0 | 174.1 |
| Equity | DKKm | 196.3 | 206.5 | 196.3 | 206.5 | 209.6 |
| Cash flows | ||||||
| Cash flow from operating activities | DKKm | 45.2 | 23.6 | 35.0 | 24.5 | 17.8 |
| Cash flow from investing activities | DKKm | -3.1 | -5.2 | -4.4 | -8.0 | 5.5 |
| Cash flow from financing activities | DKKm | -39.0 | -14.5 | -58.2 | -16.2 | -1.9 |
| Depreciation, amortisation and impairment, total | DKKm | -6.5 | -6.8 | -13.0 | -13.9 | -26.9 |
| Cash flow for the period | DKKm | 3.1 | 4.0 | -27.6 | 0.3 | 21.4 |
| Unit | Q2 2023/24¹ | Q2 2022/23¹ | H1 2023/24¹ | H1 2022/23¹ | FY 2022/23 | |
| --- | --- | --- | --- | --- | --- | --- |
| Ratios | ||||||
| Book-to-bill ratio | % | 127.1 | 83.5 | 120.0 | 102.3 | 88.2 |
| Revenue growth | % | -8.7 | -9.4 | -9.8 | -3.6 | -8.1 |
| Gross margin | % | 52.2 | 46.7 | 52.3 | 49.5 | 48.4 |
| EBIT margin | % | -1.5 | -4.3 | -5.6 | -4.4 | -4.6 |
| ROIC/return on average invested capital² | % | -3.0 | -8.7 | -10.1 | -8.3 | -8.4 |
| Equity ratio | % | 67.7 | 61.9 | 67.7 | 61.9 | 57.0 |
| Return on equity² | % | -5.7 | -6.5 | -10.7 | -6.9 | -2.2 |
| Employees | ||||||
| Average no. of full-time employees | No. | 250 | 274 | 265 | 274 | 271 |
| Gross profit per full-time employee | DKKm | 0.2 | 0.2 | 0.3 | 0.3 | 0.6 |
| Per share ratios | ||||||
| Earnings per DKK 20 share (EPS)² | DKK | -1.8 | 2.1 | -6.7 | -4.4 | -2.6 |
| Price/earnings ratio (PE) | DKK | -45.0 | -67.7 | -12.1 | -32.1 | -38.7 |
| Cash flow from operations per DKK 20 share | DKK | 25.3 | 13.2 | 19.6 | 13.7 | 9.9 |
| Book value of shares² | DKK | 109.8 | 115.5 | 109.8 | 115.5 | 117.2 |
| Quoted year-end market price | DKK | 81.0 | 140.0 | 81.0 | 140.0 | 99.8 |
| Price/book value | 0.7 | 1.2 | 0.7 | 1.2 | 0.9 |
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.
The ratios are defined in note 33 to the 2022/23 annual report, Financial ratio definitions and formulas.
Roblon Interim report for Q2 2023/24
4
Interim report for H1 2023/24
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)
Order intake and order book
The Group's order intake amounted to DKKm 185.9 in H1 2023/24 (DKKm 175.6). The DKKm 10.3 net increase covered a DKKm 32.8 improvement in the Composite product group and a DKKm 22.5 decline in the FOC product group.
The reduced order intake in the FOC product group had been expected and related principally to the market downturns in the USA and Europe, which were driven by much too high inventories at the fibre optic cable manufacturers and their customers.
All players in the FOC value chain have struggled with substantial repercussions from the Covid pandemic, and collapsed supply chains resulting in price increases caused several businesses in 2022 to build sufficient inventories to secure materials for their production. During the same period, rising interest rates and inflation caused subdued investment appetite.
Several of Roblon's market-leading customers, including Corning, CommScope and Prysmian have confirmed the explanation for the market downturn in the FOC industry. For example, in its annual report for 2023 Prysmian stated that "Both the multimedia solutions business and the optical and copper cable business are suffering a slowdown due to overstocking in our customers' warehouses". According to CRU², the market downturn has been slowing since November 2023, and since January 2024 markets have recovered, especially in the USA and, on a smaller scale, in Europe.
The improvement in Composite is driven by a higher order intake in energy transmission as well as in offshore oil and gas. The Group expects to record a rising intake of orders for components for energy transmission projects. Concrete future projects are well-known, but even in the short term the Group expects unpredictability in the exact timing of project execution and, by extension, the execution of orders in the Roblon Group.
At the end of April 2024, the Group's order book stood at DKKm 106.0 (DKKm 118.6), distributed with DKKm 35.8 (DKKm 51.7) in the FOC product group and DKKm 70.2 (DKKm 66.9) in the Composite product group.
Consolidated income statement
Revenue
Roblon reported revenue of DKKm 155.0 (DKKm 171.7) for H1 2023/24, which was in line with Management's expectations. USD and CZK exchange rate developments had a positive impact of DKKm 0.4 on reported revenue for H1 2023/24 (negative impact of DKKm 2.6).
The DKKm 16.7 year-on-year revenue decline covered a DKKm 26.6 decline in the FOC product group and a DKKm 9.9 increase in the Composite product group. As expected, revenue for H1 2023/24 was adversely impacted by market conditions in the FOC industry. In line with expectations, the Composite product group developed favourably driven by an increase in customer enquiries and sales activity in this part of the business.
Gross profit and gross margin
The Group's gross profit was DKKm 81.0 (DKKm 85.0) and the gross margin for H1 2023/24 was 52.3% (49.5%), supported by a favourable product mix. This more than compensated for the intensified price competition in the squeezed FOC market in the USA, which reduced the gross margin in the company's US subsidiary by about 4 percentage points.
Other external costs
Other external costs amounted to DKKm 18.7 (DKKm 20.6) in H1 2023/24. A DKKm 1.9 reduction as a result of a lower level of activity and implemented cost savings.
Staff costs
Staff costs amounted to DKKm 58.4 (DKKm 59.6) in H1 2023/24, a DKKm 1.2 year-on-year reduction as a result of staff reductions.
Operating profit/loss before depreciation, amortisation and impairment and special items (EBITDA)
In H1 2023/24, EBITDA amounted to a profit of DKKm 4.4 (a profit of DKKm 6.3), which was in line with Management's expectations.
¹ https://www.prysmian.com/sites/www.prysmian.com/files/media/documents/investors/Integrated-Annual-Report-2023.pdf, page 66
² CRU analyses various industries, including the FOC industry, and provides business intelligence services. For more information, go to https://www.crugroup.com/
Roblon Interim report for Q2 2023/24
Depreciation, amortisation and impairment
The Group's depreciation, amortisation and impairment for H1 2023/24 was DKKm 13.0 (DKKm 13.9). The decrease compared with last year was mainly due to the sale in the autumn of 2023 of the Company's building in Frederikshavn, which is thus no longer depreciated.
Operating profit/loss before special items (EBIT)
In H1 2023/24, profit before special items (EBIT) amounted to a loss of DKKm 8.7 (a loss of DKKm 7.5), which was in line with Management's expectations.
Net financial items
The Group's net financial items for H1 2023/24 amounted to a net expense of DKKm 2.1 (net expense of DKKm 3.0). The net amount was made up of DKKm 2.0 in interest expenses and DKKm 0.1 in negative foreign exchange adjustments.
A one percentage point change in interest rates on Roblon's interest-bearing debt, which does not carry a fixed rate of interest, would affect the Group's profit/loss before tax by approximately DKKm 0.3 compared with the underlying plans and budgets supporting Management's earnings guidance.
Profit/loss before tax from continuing operations
For H1 2023/24, the Group realised a loss before tax of DKKm 10.8 (a loss of DKKm 10.5).
Profit/loss from discontinued operations
In 2019/20, Roblon wrote off a receivable relating to the sale of a former Roblon division. In the current financial year, Roblon has received a partial repayment of DKKm 0.6 (DKKm 0.1) on the receivable, and at the end of H1 2023/24 the profit from discontinued operations after tax was recognised at DKKm 0.5.
Profit/loss after tax
For H1 2023/24, the Group realised a net loss of DKKm 11.6 (a net loss of DKKm 7.9). Tax for the period has been calculated at the applicable tax rates in the countries in which the Group has operations. Tax on profit/loss for H1 2023/24 has been expensed in the amount of DKKm 1.3, while a tax income of DKKm 2.6 was recognised in the same period of last year. No deferred tax is recognised in respect of the loss in Roblon's US subsidiary in the first half of the 2023/24 financial year, as the timing of its utilisation is uncertain. In H1 2022/23, an amount of DKKm 2.6 was recognised and capitalised concerning deferred tax in Roblon US. The amount recognised was reversed in connection with the presentation of the annual report for 2022/23.
Developments in the US dollar (USD/DKK) and the Czech koruna (CZK/DKK) exchange rates had a combined adverse impact of DKKm 0.1 on profit/loss in H1 2023/24.
Consolidated balance sheet
The Group's total assets at 30 April 2024 amounted to DKKm 290.0 (DKKm 333.8).
Investments in property, plant and equipment amounted to DKKm 4.3 (DKKm 7.5) in H1 2023/24.
The investments in Roblon's subsidiaries were tested for impairment, which did not give rise to any write-down.
Inventories amounted to DKKm 80.7 (DKKm 99.9) at 30 April 2024, a DKKm 17.3 reduction since 31 October 2023.
The Group regularly performs analyses, implements decisions and actions with a view to reducing working capital tied up in, among other things, inventories. These include initiatives targeting the commercial terms and conditions with customers and suppliers, optimisation of sales and operational processes and ongoing monitoring of slow-moving inventories.
The Group's equity at 30 April 2024 amounted to DKKm 196.3 (DKKm 206.5). The equity ratio at 30 April 2024 was 67.7% (61.9%).
Consolidated cash flows
The Group's cash flow from operating activities for H1 2023/24 was a net inflow of DKKm 35.0 (an inflow of DKKm 24.5), positively affected by a reduction in working capital. The company has been prioritising activities to reduce the Group's total inventories, which during the period from 1 November 2023 to 30 April 2024 were reduced by DKKm 17.3. During the same period, the Group's trade receivables were reduced by DKKm 22.9.
Total cash flow from investing activities was a net outflow of DKKm 4.4 (a net outflow of DKKm 8.0).
Cash flow from financing activities for H1 2023/24 was a net outflow of DKKm 58.2 (a net outflow of DKKm 16.2), consisting primarily of reduced drawings on operating credit facilities and repayment of debt to credit institutions.
Roblon Interim report for Q2 2023/24
Capital resources
At 30 April 2024, net deposits of cash amounted to DKKm 5.6 (DKKm 12.1).
The Group's total credit facilities amounted to DKKm 88.0 (DKKm 88.0), and at 30 April 2024, the Group had an undrawn credit facility of DKKm 88.0 (DKKm 18.7).
Total cash resources at 30 April 2024 amounted to DKKm 93.6 (DKKm 30.8).
Product development
In H1 2023/24, the Group incurred product development costs of DKKm 3.6 (DKKm 3.1).
Sustainability reporting
From the 2025/26 financial year, Roblon will be subject to the new statutory reporting requirements under the EU Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy. The Group has prepared an implementation plan for these new reporting requirements and will, among other things, carry out the double materiality assessment to identify and prioritise the Group's most significant sustainability impacts, risks and opportunities.
Guidance for 2023/24
In the annual report for 2022/23, Management guided for revenue of around DKKm 370, an operating profit before depreciation, amortisation and impairment and before special items (EBITDA) of around DKKm 25 and operating profit before special items (EBIT) of around DKKm 0.
This guidance is maintained at the end of the first half.
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 the market and competitive situation, changes in demand and purchasing behaviour, foreign exchange and interest rate fluctuations and general economic, political and commercial conditions.
Financial calendar
| 17/9 2024: | Interim report for Q3 2023/24 |
|---|---|
| 19/12 2024: | Annual report 2023/24 |
| 30/1 2025: | Annual general meeting |
Announcements - NASDAQ Copenhagen
During the period 20 December 2023 to 18 June 2024, the Company sent the following announcements to NASDAQ Copenhagen; these can be found on the Company's website:
| → | Roblon's website
roblon.com |
| --- | --- |
| No. 14 | 20 December 2023 | Annual report 2022/23 |
| --- | --- | --- |
| No. 15 | 22 December 2023 | Notice of Annual General Meeting |
| No. 16 | 28 December 2023 | Reporting of related party transactions in Roblon A/S shares |
| No. 1 | 26 January 2024 | Minutes of the annual general meeting in Roblon A/S |
| No. 2 | 13 March 2024 | Interim report for Q1 2023/24 |
| No. 3 | 27 March 2024 | Roblon to terminate market maker agreement with Danske Bank |
| No. 4 | 13 May 2024 | Roblon announces changes to the Executive Management |
—
Roblon Interim report for Q2 2023/24
Statement by Management
The Board of Directors and Executive Management have today considered and approved the interim report of Roblon A/S for H1 2023/24 (the period 1 November 2023 to 30 April 2024).
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 30 April 2024 as well as of the results of the Group's activities and cash flows for the period 1 November 2023 to 30 April 2024.
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, 18 June 2024
Executive Management
Kim Müller
CEO
Carsten Michno
Co-CEO/CFO
Board of Directors
Jørgen Kjær Jacobsen
Chairman
Ole Lønsmann Andersen
Deputy Chairman
Randi Toftlund Pedersen
Mikael Staal Axelsen
Anita Skovgaard Pedersen
Employee representative
Anette Frost Hansen
Employee representative
Roblon Interim report for Q2 2023/24
Income statement
for the period 1 November 2023 to 30 April 2024
| Amounts in DKK'000 | Note | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|---|
| Revenue | 4 | 82,547 | 90,417 | 154,952 | 171,717 | 350,094 |
| Cost of sales | -39,441 | -48,168 | -73,921 | -86,764 | -180,795 | |
| Gross profit | 43,106 | 42,249 | 81,031 | 84,953 | 169,299 | |
| Work carried out for own account and capitalised | 281 | 373 | 426 | 1,203 | 3,220 | |
| Other operating income | 46 | 164 | 17 | 353 | 717 | |
| Other external costs | -9,777 | -11,157 | -18,676 | -20,638 | -40,674 | |
| Staff costs | -28,472 | -28,736 | -58,434 | -59,551 | -121,694 | |
| Operating profit/loss before depreciation, amortisation and impairment and special items (EBITDA) | 5,184 | 2,893 | 4,364 | 6,320 | 10,868 | |
| Depreciation, amortisation and impairment | -6,456 | -6,798 | -13,036 | -13,853 | -26,899 | |
| Operating profit/loss (EBIT), continuing operations before special items | -1,272 | -3,905 | -8,672 | -7,533 | -16,031 | |
| Special items | - | - | - | - | 17,912 | |
| Operating profit/loss (EBIT), continuing operations after special items | -1,272 | -3,905 | -8,672 | -7,533 | 1,881 | |
| Net financial items | -433 | -1,028 | -2,095 | -2,965 | -5,042 | |
| Profit/loss before tax from continuing operations | -1,705 | -4,933 | -10,767 | -10,498 | -3,161 | |
| Tax on profit/loss for the period from continuing operations | -1,493 | 1,231 | -1,280 | 2,560 | -1,449 | |
| Profit/loss for the period from continuing operations | -3,198 | -3,702 | -12,047 | -7,938 | -4,610 | |
| Profit/loss for the period from discontinued operations | 5 | 482 | - | 482 | 78 | - |
| Profit/loss for the period | -2,716 | -3,702 | -11,565 | -7,860 | -4,610 | |
| Earnings per share (DKK) | ||||||
| Earnings per share (EPS), continuing operations | -1.8 | -2.1 | -6.7 | -4.4 | -2.6 | |
| Earnings per share, diluted (EPS-D), continuing operations | -1.8 | -2.1 | -6.7 | -4.4 | -2.6 |
Statement of comprehensive income
for the period 1 November 2023 to 30 April 2024
| Amounts in DKK'000 | Note | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|---|
| Profit/loss for the period | -2,716 | -3,702 | -11,565 | -7,860 | -4,610 | |
| Foreign exchange adjustment on translation of invested capital in subsidiary | 480 | 2,714 | -243 | -3,650 | -2,488 | |
| Foreign exchange adjustment on translation of foreign subsidiaries | -336 | -2,472 | -1,571 | -1,644 | -2,674 | |
| Tax on other comprehensive income | -105 | -597 | 54 | 803 | 547 | |
| Comprehensive income | -2,677 | -4,057 | -13,325 | -12,351 | -9,225 |
Roblon Interim report for Q2 2023/24
Balance sheet
at 30.04.2024
| Amounts in DKK'000 | Note | 30.04.2024 | 30.04.2023 | 31.10.2023 |
|---|---|---|---|---|
| ASSETS | ||||
| Completed development projects | 4,151 | 5,279 | 5,223 | |
| Development projects in progress | 2,476 | 3,221 | 2,361 | |
| Trademarks, licenses and customer relations | 4,078 | 5,149 | 4,698 | |
| Other intangible assets | 2,062 | 6,115 | 3,707 | |
| Intangible assets | 12,767 | 19,764 | 15,989 | |
| Land and buildings | 49,443 | 59,921 | 48,234 | |
| Plant and machinery | 53,139 | 48,798 | 47,492 | |
| Other fixtures and fittings, tools and equipment | 829 | 1,475 | 1,035 | |
| Property, plant and equipment in progress | 2,817 | 7,757 | 15,740 | |
| Lease assets | 6,731 | 8,375 | 7,466 | |
| Property, plant and equipment | 112,959 | 126,326 | 119,967 | |
| Deferred tax assets | 13,384 | 6,220 | 13,640 | |
| Financial assets | 13,384 | 6,220 | 13,640 | |
| Total non-current assets | 139,110 | 152,310 | 149,596 | |
| Inventories | 80,735 | 99,908 | 98,007 | |
| Trade receivables | 59,465 | 61,391 | 83,585 | |
| Prepaid income tax | 1,293 | 4,690 | 1,140 | |
| Other receivables | 1,821 | 1,511 | 1,457 | |
| Prepayments | 1,928 | 1,846 | 1,032 | |
| Receivables | 64,507 | 69,438 | 87,214 | |
| Cash and cash equivalents | 5,612 | 12,146 | 33,235 | |
| Total current assets | 150,854 | 181,492 | 218,456 | |
| TOTAL ASSETS | 289,964 | 333,802 | 368,052 | |
| Amounts in DKK'000 | Note | 30.04.2024 | 30.04.2023 | 31.10.2023 |
| --- | --- | --- | --- | --- |
| EQUITY AND LIABILITIES | ||||
| Share capital | 35,763 | 35,763 | 35,763 | |
| Other reserves | -6,521 | -4,637 | -4,761 | |
| Retained earnings | 167,047 | 175,362 | 178,612 | |
| Equity | 196,289 | 206,488 | 209,614 | |
| Deferred tax liability | 7,481 | 4,814 | 8,057 | |
| Lease liability | 4,467 | 6,145 | 5,201 | |
| Debt to credit institutions | 33,132 | 8,870 | 35,870 | |
| Non-current liabilities | 45,080 | 19,829 | 49,128 | |
| Current portion of lease liability | 2,860 | 2,834 | 2,891 | |
| Current portion of debt to credit institution | 3,990 | 381 | 3,990 | |
| Operating credits | 0 | 69,286 | 54,973 | |
| Other provisions | 901 | 239 | 590 | |
| Advance payments | 5,744 | 4,230 | 2,829 | |
| Trade payables | 21,318 | 19,418 | 23,691 | |
| Income tax | 2,360 | 727 | 4,479 | |
| Other payables | 11,422 | 10,370 | 15,867 | |
| Total current liabilities | 48,595 | 107,485 | 109,310 | |
| Total liabilities | 93,675 | 127,314 | 158,438 | |
| TOTAL EQUITY AND LIABILITIES | 289,964 | 333,802 | 368,052 |
Roblon Interim report for Q2 2023/24
Statement of changes in equity
for the Group
| Amounts in DKK'000 | Share capital | Currency translation reserve | Retained earnings | Total equity |
|---|---|---|---|---|
| H1 2023/24 | ||||
| Equity at 1 November 2023 | 35,763 | -4,761 | 178,612 | 209,614 |
| Profit/loss for the period | - | - | -11,565 | -11,565 |
| Other comprehensive income | - | -243 | - | -243 |
| Tax on other comprehensive income | - | 54 | - | 54 |
| Foreign exchange adjustment on translation of foreign subsidiary | - | -1,571 | - | -1,571 |
| Comprehensive income for the period | - | -1,760 | -11,565 | -13,325 |
| Equity at 30 April 2024 | 35,763 | -6,521 | 167,047 | 196,289 |
| H1 2022/23 | ||||
| --- | --- | --- | --- | --- |
| Equity at 1 November 2022 | 35,763 | -146 | 183,222 | 218,839 |
| Profit/loss for the period | - | - | -7,860 | -7,860 |
| Other comprehensive income | - | -3,650 | - | -3,650 |
| Tax on other comprehensive income | - | 803 | - | 803 |
| Foreign exchange adjustment on translation of foreign subsidiary | - | -1,644 | - | -1,644 |
| Total comprehensive income for the period | - | -4,491 | -7,860 | -12,351 |
| Equity at 30 April 2023 | 35,763 | -4,637 | 175,362 | 206,488 |
| Amounts in DKK'000 | Share capital | Currency translation reserve | Retained earnings | Total equity |
| --- | --- | --- | --- | --- |
| 2022/23 | ||||
| Equity at 1 November 2022 | 35,763 | -146 | 183,222 | 218,839 |
| Profit/loss for the year | - | - | -4,610 | -4,610 |
| Other comprehensive income | - | -2,488 | - | -2,488 |
| Tax on other comprehensive income | - | 547 | - | 547 |
| Foreign exchange adjustment on translation of foreign subsidiary | - | -2,674 | - | -2,674 |
| Total comprehensive income for the period | - | -4,615 | -4,610 | -9,225 |
| Equity at 31 October 2023 | 35,763 | -4,761 | 178,612 | 209,614 |
Roblon Interim report for Q2 2023/24
Statement of cash flows
for the period 1 November 2023 to 30 April 2024
| Amounts in DKK'000 | Spec. | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|---|
| Operating profit/loss (EBIT) from continuing operations | -1,272 | -3,905 | -8,672 | -7,533 | 1,881 | |
| Operating profit/loss (EBIT) from discontinued operations | 618 | - | 618 | 100 | - | |
| Operating profit/loss (EBIT) | -654 | -3,905 | -8,054 | -7,433 | 1,881 | |
| Adjustment for non-cash items | A | 7,298 | 7,133 | 12,685 | 10,148 | 7,455 |
| Change in working capital | B | 39,278 | 22,070 | 36,230 | 25,085 | 14,579 |
| Cash generated from operations | 45,922 | 25,298 | 40,861 | 27,800 | 23,915 | |
| Financial income received | -56 | 15 | 1 | 85 | 54 | |
| Financial expenses paid | -624 | -842 | -1,778 | -1,743 | -3,742 | |
| Income tax paid | -59 | -822 | -4,116 | -1,777 | -2,536 | |
| Income tax received | - | - | - | 88 | 88 | |
| Cash flow from operating activities | 45,183 | 23,649 | 34,968 | 24,453 | 17,779 | |
| Purchase of intangible assets | -83 | -153 | -114 | -644 | -749 | |
| Purchase of property, plant and equipment | -2,988 | -5,013 | -4,320 | -7,459 | -21,196 | |
| Sale of property, plant and equipment | -13 | - | 35 | 138 | 27,439 | |
| Cash flow from investing activities | -3,084 | -5,166 | -4,399 | -7,965 | 5,494 | |
| Operating credits used | -37,706 | -13,555 | -54,973 | -13,495 | -27,808 | |
| Lease payments | -255 | -844 | -1,175 | -2,468 | -3,458 | |
| Raising of debt with credit institution | - | - | - | - | 29,754 | |
| Repayment of debt to credit institution | -1,003 | -99 | -2,010 | -210 | -381 | |
| Cash flow from financing activities | -38,964 | -14,498 | -58,158 | -16,173 | -1,893 | |
| Amounts in DKK'000 | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 | |
| --- | --- | --- | --- | --- | --- | |
| Change in cash and cash equivalents | 3,135 | 3,985 | -27,589 | 315 | 21,380 | |
| Cash and cash equivalents at beginning of period | 2,504 | 8,166 | 33,235 | 11,884 | 11,884 | |
| Value adjustment of cash and cash equivalents | -27 | -5 | -34 | -53 | -29 | |
| Cash and cash equivalents at end of period | 5,612 | 12,146 | 5,612 | 12,146 | 33,235 | |
| Spec. A: Adjustments for non-cash items | ||||||
| Profit/loss from sale of property, plant and equipment | 12 | -149 | 59 | -126 | - | |
| Depreciation, amortisation and impairment | 6,456 | 6,947 | 13,057 | 13,986 | 9,057 | |
| Provisions | 432 | 7 | 311 | -118 | 233 | |
| Foreign exchange adjustment | 398 | 328 | -742 | -3,594 | -1,835 | |
| 7,298 | 7,133 | 12,685 | 10,148 | 7,455 | ||
| Spec. B: Change in working capital | ||||||
| Change in inventories | 6,578 | 12,498 | 17,272 | 14,546 | 16,460 | |
| Change in receivables | 18,157 | 9,419 | 22,860 | 21,019 | -300 | |
| Change in current liabilities | 14,543 | 153 | -3,902 | -10,480 | -1,581 | |
| 39,278 | 22,070 | 36,230 | 25,085 | 14,579 |
Roblon Interim report for Q2 2023/24
12
Notes
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 2022/23, 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 2022/23.
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 2022/23.
3. Seasonality
As expected, the Group's activities have been adversely affected by the market downturn in the fibre optic cable industry. Other than this, the Group's activities have not been affected by seasonal or cyclical fluctuations in the interim report.
4. Revenue
| Amounts in DKK'000 | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|
| Net revenue from external customers | |||||
| By product group | |||||
| FOC | 45,043 | 55,572 | 75,971 | 102,627 | 192,504 |
| Composite | 37,504 | 34,845 | 78,981 | 69,090 | 157,590 |
| Total | 82,547 | 90,417 | 154,952 | 171,717 | 350,094 |
| By geographical market | |||||
| Denmark | 2,601 | 211 | 4,994 | 1,711 | 9,540 |
| United Kingdom | 10,875 | 14,285 | 26,408 | 26,885 | 58,075 |
| Italy | 15 | 8,582 | 563 | 10,877 | 12,215 |
| Rest of Europe | 24,602 | 20,576 | 52,085 | 40,571 | 91,334 |
| Asia | 5,011 | 6,734 | 6,860 | 13,500 | 24,093 |
| Brazil | 11,223 | 6,674 | 15,984 | 15,361 | 35,598 |
| Latin America | 1,482 | 1,192 | 1,478 | 3,062 | 5,624 |
| USA | 26,738 | 32,163 | 46,580 | 59,750 | 113,615 |
| Total | 82,547 | 90,417 | 154,952 | 171,717 | 350,094 |
Of the Group's non-current assets, DKKm 40.8 (DKKm 55.6) were located in Denmark, DKKm 27.6 (DKKm 32.0) in the USA and DKKm 57.2 (DKKm 58.5) in the Czech Republic.
The Group's revenue largely derived from the sale of goods.
Several of Roblon's customers are groups comprising several production companies. The revenue of individual customers is determined as the total revenue of all companies within the individual customer's group.
Of the Group's total revenue, two individual customers accounted for more than 10% in the first half of 2023/24. Revenue from these customers was DKKm 22.8 and DKKm 22.4, respectively. Last year, one individual customer accounted for more than 10% of the Group's total revenue for the first half of 2022/23. Revenue from this customer amounted to DKKm 23.5.
The USD/DKK exchange rate development had a favourable impact of DKKm 0.6 on reported revenue for H1 2023/24.
The Czech koruna exchange rate (CZK/DKK) development had a negative effect of DKKm 0.2 on reported revenue in H1 2023/24.
—
Roblon Interim report for Q2 2023/24
Notes
5. Discontinued operations
| Amounts in DKK'000 | Q2 2023/24 | Q2 2022/23 | H1 2023/24 | H1 2022/23 | FY 2022/23 |
|---|---|---|---|---|---|
| Income statement | |||||
| Net proceeds from divestment of operation | 618 | - | 618 | 100 | - |
| Tax on profit/loss for the year | -136 | - | -136 | -22 | - |
| Profit/loss for the period | 482 | - | 482 | 78 | - |
As part of the agreement to sell Roblon Lighting in 2017, the Group provided a loan of DKKm 2.6. In the financial year 2019/20, due to elevated risk of default on the loan, Roblon made a DKKm 3.1 loss provision for the full amount of the loan, including accrued interest.
In 2024, Roblon has entered into an agreement with the buyer of Roblon Lighting that payment of DKKm 1.6, as agreed, can be made in full and final settlement of the total amount due. Roblon received the first instalment of DKKm 0.8 in 2024. Due to uncertainty with respect to further payments, a full loss provision remains with respect to the outstanding receivable, which falls due for payment in 2027.
6. Events after the balance sheet date
In Company Announcement no. 4 2024, Roblon announced changes to the Executive Management, including that Roblon is reducing the Executive Management from three members to two as part of the strategy execution. In this connection, former CEO Lars Østergaard resigned his position on 13 May 2024.
Other than as set out in this interim report, the Group is not aware of events occurring after 30 April 2024 which are expected to have an impact on the Group's financial position or outlook.
Roblon A/S
Fabriksvej 7, Gærum
DK-9900 Frederikshavn
Denmark
CVR no. 57 06 85 15
Roblon.com
Roblon
WITH EVERY FIBER