SP Group A/S - Annual Report 2016

Summary:SP Group’s 2006 results were better than expected.The organic growth ended at 12.1% and revenue increased by 11.2%.Growth accelerated in the course of the year.Earnings were burdened by the integration of acquired business and the start-up of two plants in Poland.Nevertheless, EBITDA increased 48.4% to DKK 73.4 million due to increased sales, more efficient utilisation of our capacity and a better product mix.Profit before tax and minority interests nearly doubled to DKK 20.6 million.In 2007 we expect a growth in revenue of 4-8% and profit before tax and minority interests of DKK 25-30 million.

Annual report 2006

Today the Supervisory Board of SP Group considered and adopted the Annual Report 2006 which is attached in its entirety. The annual report features the following main items:

2006

Revenue increased 11.2% to DKK 825.4 million. Adjusted for acquisitions and divestments organic growth was 12.1%. Growth is higher than expected and accelerated in the course of the year to 14,8% in Q4.
This growth was primarily generated outside Denmark, where revenue increased 20.1% as aresult of the efforts to cultivate new markets and new clients. Revenue in Denmark increased 6%.
Sales to medical customers have doubled over three years and amounted to DKK 164.5 million.(+20,3%). The sale of the Group’s own brands increased 12.7% to DKK 111 million.
SP Group has realised several acquisitions of which the most important were the activities in Danfoss Plast with 35 injection moulding machines. Activities in Poland have been enhanced with an injection moulding plant and plant with clean room production for medical customers. Also in China are we enhancing our capacity.
The two new plants in Poland and the integration of Danfoss Plast have affected earnings adversely. Nevertheless, EBITDA increased 48,4% to DKK 73.4 million due to the increased sales, more efficient utilisation of our capacity, a better product mix and increasing sales of complex, but high-margin production work. EBIT increased from DKK 19.1 million to DKK 36.0 million, while the profit before tax and minority interests nearly doubled to DKK 20.6 million.

2007

SP Group expects its revenue to increase 4-8%.
Profit before tax and minority interests is expected to rise to DKK 25-30 million.
Changes in the Group’s activities, commodity and electricity prices, currency conditions and business trends may affect these expectations.

Financial objectives

Within three years profit before tax and minority interests is to account for 5% of the Group’s revenue.
In 2009 revenue is expected to at the level of DKK 1 billion.
The EBITDA-margin is to be increased to over 10%.
The net interest-bearing debt must be reduced so that the debt corresponds to 3-4 times EBITDA in 2009.

Download the Annual report 2006 here

Best regards

Niels K. Agner Chairman	Frank Gad Chief Executive Officer

Incase of any discrepancies, the Danish version shall prevail.

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