Annual report 2010

Summary: SP Group generated a profit before tax and minority interests of DKK 6.8m in Q4 2010. In FY 2010, SP Group generated a profit before tax and minority interests of DKK 28.8m, which was an improvement of DKK 43.3m relative to 2009. Revenue improved from DKK 681,9m in 2009 to DKK 851.9m in 2010 equal to an organic growth of approx 25 %.

Annual report 2010

The Supervisory Board of SP Group today considered and approved the annual report for 2010, which is attached.

Q4 2010

SP Group generated revenue of DKK 220.7m in Q4 2010, which was 21.5% more than in the sameperiod of last year.
EBITDA fell to DKK 17.7m from DKK 20.6m in the year-earlier period. The 2009 figures include sale of a property amounting to DKK 8.6m.
Profit before tax and minority interests improved by DKK 0.8m to DKK 6.8m.
Cash flows from operating activities were DKK 24.9m in Q4 2010. The cash flows for investing activities were DKK 15.6m, and the Group raised long-term debt in the net amount of DKK 25.6m.
Accordingly, overall cash flows were positive with DKK 34.9m.

FY 2010

Revenue improved to DKK 851.9m, up by 24.9% relative to 2009.
Sales to the medical devices industry rose by 27.2% and now make up 34% of revenue.
Sales abroad now make 46.4 % of the revenue.
EBITDA improved to DKK 83.0m from DKK 40.2m in 2009.
EBIT improved to DKK 41.7m from a loss of DKK 1.0m in 2009.
Profit before tax and minority interests improved by DKK 43.3m to DKK 28.8m.
Cash flows from operating activities were an inflow of DKK 57.8m, a DKK 12.5m improvement from2009.
Net interest-bearing debt was reduced by DKK 9.5m to DKK 367.4m at 31 December 2010.

Outlook for 2011

Global economy is expected to grow in 2011, but it is still fragile.
In the close markets in Europe a low growth rate is expected in general
A number of countries have very large deficits on public finances and a large debt.
SP Group is going to launch a number of new products and solutions, especially in health care, cleantech and food-related industries. These new solutions are expected to contribute to growth and earnings.
The largest single investment is expected to be made in the medical device activities.
Depreciation/amortisation is expected to be realised at a higher level than in 2010.
Financial expenses are expected to be in line with 2010.
A strict cost control and early capacity adjustment as well as continued strong focus on risk management, cash management and capital management contributes to creating a good basis for the Group in future
A slightly larger profit before tax and minority interests and a level of activity slightly higher than in 2010 are expected for 2011 but too early to be quantified as market prospects still remain unclear.

Chief Executive Officer Frank Gad says: ‘2010 was our best year ever measured on both profits and cash flow from operations. We expect to do a little better in 2011, if the global economy continues to develop positively.’

Read the report here

Best regards

Niels K. Agner

Chairman of the Supervisory Board

Frank Gad

Chief Executive Officder

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