Interim report - First half year of 2009

Summary: As expected, the H1 financial results were strongly affected by the extreme conditions in SP Group’s markets in general. SP Group incurred a loss before tax and minority interests of DKK 19.5m in the first half year of 2009. Revenue fell by 25% relative to H1 2008 to DKK 338.7m and EBITDA was DKK 7.3m, but the results were better in the second quarter than in the first quarter. The recession has impacted the entire Group, but tight cost management and capacity adjustments combined with higher sales to customers in the medical devices industry in particular partially offset the fall in sales to other industries.

The Supervisory Board of SP Group A/S has today considered and approved the interim report for the six months ended 30 June 2009. Highlights of the interim report:

Revenue fell by DKK 113.4m (25%) in H1 2009 relative to the year-earlier period to DKK 338.7m.
EBITDA was DKK 7.3m compared with DKK 33.6m in H1 2008. EBITDA was DKK 6.1m in Q2 and DKK 1.2m in Q1.
All four business areas reported EBITDA profits in the second quarter.
EBIT was a loss of DKK 12.8m in H1 2009, down from a DKK 13.1m profit in H1 2008.
Net financial items were a DKK 6.6m loss in H1 2009, a DKK 8.5m improvement over H1 2008.
SP Group incurred a H1 loss before tax and minority interests of DKK 19.5m as against a DKK 2.0m loss in H1 2008. In Q2, the loss amounted to DKK 6.8m, a substantial improvement from the Q1 loss of DKK 12.7m.
The injection moulding businesses, SP Moulding and SP Medical, suffered a 32% downturn in revenue and a drop in earnings. EBITDA was a profit and it improved in the second quarter relative to the first quarter.
The Polyurethane business area reported a 31% revenue decline in the first half year. The Q2 EBITDA was a profit and more than offset the Q1 loss.
The Vacuum business area reported a 29% fall in revenue and a smaller loss than had been expected. The Q2 EBITDA was a profit, but it was not large enough to offset the Q1 loss.
The coating business, Accoat, generated a decent, 22% revenue increase and lifted the operating profit.
There was a cash inflow from operating activities of DKK 16.3m, against a cash inflow of DKK 19.2m in H1 2008.
We expect to record a loss in 2009 but a profit in 2010.

Read the Report here.

Med venlig hilsen

Niels K. Agner Bestyrelsesformand	Frank Gad Adm. direktør

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