Interim report - First quarter of 2011

Summary: SP Group generated a profit before tax and minority interests of DKK 10.1m in Q1 2011 as againstDKK 4.5m in Q1 2010. Revenue was up by 23.2% to DKK 249.2m and EBITDA improved from DKK 16.8m to DKK 25.7m (53 %), as the positive trend in revenue and earnings achieved in 2010 has continued into 2011. Full-year guidance is maintained: The full-year 2011 profit before tax and minority interests is expected to exceed DKK 30m.

The Board of Directors of SP Group A/S has today considered and approved the interim report for the three months ended 31 March 2011. Highlights of the interim report:

Revenue improved by DKK 47.0m (23.2%) in Q1 2011 relative to the year-earlier period to DKK 249.2m.
EBITDA for Q1 2011 was DKK 25.7m, up from DKK 16.8m in Q1 2010 (53 %).
Earnings before interest and tax (EBIT) came to DKK 14.8m in Q1 2011 against DKK 7.0m in Q1 2010.
Net financial items were an expense of DKK 4.8m in Q1 2011, a DKK 2.3m decline relative to Q1 2010.
The profit before tax and minority interests was DKK 10.1m in the first quarter as against DKK 4.5m in Q1 2011.
The coating business (Accoat) reported a DKK 0.6m drop in Q1 2011 revenue. EBITDA was DKK 2.2m, down from 3.9m in Q1 2010.
The Plastics businesses (SP Moulding, SP Medical, Tinby, TPI, Ergomat and Gibo Plast) reported a decent combined revenue improvement and a substantial increase in operating profit. Their EBITDA for Q1 2011 was DKK 28.0m, up from DKK 16.0m in Q1 2010.
There was a cash outflow from operating activities of DKK 12.9m, against a DKK 10.7m cash inflow in Q1 2010.
The full-year 2011 profit before tax and minority interests is still expected to be about DKK 30m, after running-in costs for four new production units, in China, Brazil, Denmark and Poland, respectively. We continue to expect full-year revenue of more than DKK 850m, but it is still too early to quantify the amount, as market prospects remain unclear.

CEO Frank Gad said: “We are pleased to see that our customers are buying more of our products and that our earnings have continued to improve. The EUR appreciation against USD and the Asian currencies combined with the rising prices of raw materials and higher energy taxes render our customers' and our own exports out of Europe difficult and this is a big cause for concern in the long term.”

Read the entire report here

Best regards

Niels K. Agner

Chairman of the Supervisory Board

Frank Gad

Chief Executive Officder

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