Interim report - first quarter of 2008

Summary: Although it had been expected that SP Group would record a profit decline relative to the year earlier period, the decline proved to be more pronounced than anticipated. Accordingly, SP Group posted a loss before tax and minority interests of DKK 5.2m, including an unrealised foreign exchange loss on CHF of DKK 5.3m. In April, the unrealised foreign exchange loss decreased by DKK 3m. The full-year forecast is retained, but it is subject to greater uncertainty than before.

The Supervisory Board of SP Group A/S has today considered and adopted the interim report for the three months ended 31 March 2008.

Highlights of the interim report:

Revenue was up by 1.0% to DKK 228m. Organic growth was negative.
EBITDA was DKK 17.3m compared with DKK 23.8m in Q1 2007.
EBIT was DKK 6.8m, down from DKK 14.7m in Q1 2007.
The Injection Moulding business area (including SP Medical) performed better than expected, recording an EBIT improvement of almost DKK 4m to DKK 8.1m on the back of a slight revenue increase.
Conversely, the Accoat coating business and the Polyurethane business area posted revenue and earnings that were somewhat below expectations.
The Vacuum business area recorded a revenue improvement as a result of the acquisition of DKI Form, but earnings declined.
Cash flows from operating activities amounted to an outflow in Q1, as a major customer failed to pay amounts due until mid-April. Funds were used to acquire DKI Form, a 10% stake in TPI Polytechniek and two large machines previously held under operating leases.
The Group retains the forecast for the 2008 profit before tax and minorities of DKK 30m. The forecast for the consolidated revenue is retained at 3%-7%, assuming unchanged exchange rates and raw materials prices.

For further information please contact CEO Frank Gad

Read the entire interim report here

Med venlig hilsen

Niels K. Agner Bestyrelsesformand	Frank Gad Adm. direktør

Incase of any discrepancies, the Danish version shall prevail.

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