Interim report - Third quarter of 2010

Summary: SP Group generated a profit before tax and minority interests of DKK 22.0m in 9M 2010 as against a DKK 20.5m loss in 9M 2009. Revenue was up by 26.2 % to DKK 631.2m and EBITDA improved from DKK 19.6m to DKK 65.4m, as the positive trend in revenue and earnings achieved in H2 2009 continued into 2010.

Full-year guidance is upgraded: Full-year 2010 profit before tax and minority interests is now expected to be about DKK 25m.

The Supervisory Board of SP Group A/S has today considered and approved the interim report for the three months ended 30 September 2010. Highlights of the interim report:

Revenue improved by DKK 130.9m (26.2%) in 9M 2010 relative to the year-earlier period to DKK 631.2m. In Q3 2010, revenue grew by 30.1%.
EBITDA for 9M 2010 was DKK 65.3m, up from DKK 19.6m in 9M 2009. EBITDA for Q3 2010 was DKK 22.6m, up from DKK 12.3m, in Q3 2009.
Earnings before interest and tax (EBIT) came to DKK 33.3m in 9M 2010 against a DKK 10.3m loss in 9M 2009.
Net financial items were an expense of DKK 11.3m in 9M 2010, a DKK 1.1m decline on 9M 2009.
The profit before tax and minority interests amounted to DKK 22.0m in 9M 2010 against a DKK 20.5m loss in 9M 2009. In Q3 2010, profit before tax and minority interests amounted to DKK 9.0m – a significant improvement from the Q3 2009 loss of DKK 1.0m.
The injection moulding businesses, SP Moulding and SP Medical, reported decent revenue improvements as well as significant earnings improvements. EBITDA for 9M 2010 was DKK 40.9m, up from DKK 10.9 million in 9M 2009.
The Polyurethane business area reported substantial improvements to revenue and earnings in 9M 2010, as EBITDA was DKK 25.0m, up from DKK 5.4m in 9M 2009.
The Vacuum Forming business area incurred a slight improvement in revenue. EBITDA was a loss of DKK 4.0m in 9M 2010, a DKK 2.5m deterioration from 9M 2009.
The coating business, Accoat reported a revenue increase in 9M 2010. EBITDA improved to DKK 11.8m from 11.2m in 9M 2009.
There was a cash inflow from operating activities of DKK 32.9m, up from DKK 31.6m in 9M 2009.
The full-year 2010 profit before tax and minority interests is now expected to be about DKK 25m after startup costs for 3 new production units, in China, Brazil and Poland. This is higher than in 2006 and 2007, the Group's best years to date. The previous forecast was a profit of just over DKK 20m. We continue to expect full-year revenue of around DKK 850m.

Read the entire report here

Best regards

Niels K. Agner

Chairman of the Supervisory Board

Frank Gad

Chief Executive Officder

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