Interim report - Third quarter of 2011

Summary: SP Group generated profit before tax and minority interests of DKK 25.6 million in 9M 2011, against DKK 22.0 million in 9M 2010. Relative to the 9M 2010 period, revenue was up by 15.1% to DKK 726.5 million and EBITDA improved by 10.4% from DKK 65.3 million to DKK 72.1 million, as the positive trend in revenue and earnings achieved in 2010 has continued into 2011. The full-year guidance is maintained: We continue to expect full-year 2011 profit before tax and minority interests of DKK 30–35 million.

The Board of Directors of SP Group A/S has today considered and approved the interim report for the nine months ended 30 September 2011. Highlights of the interim report:

The 9M 2011 revenue was up by DKK 95.3 million to DKK 726.5 million, equal to a 15.1% improvement over the year-earlier period. In Q3 2011, revenue grew by 17.9%.
EBITDA for 9M 2011 was DKK 72.1 million, up from DKK 65.3 million in 9M 2010. EBITDA was DKK 26.4 million in Q3 2011 and DKK 22.6 million in Q3 2010.
Earnings before interest and tax (EBIT) came to DKK 39.6 million in 9M 2011 against DKK 33.3 million in 9M 2010. EBIT was DKK 15.4 million in Q3 2011 against DKK 12.6 million in Q3 2010.
Net financial items were an expense of DKK 14.0 million in 9M 2011, a DKK 2.7 million fall relative to 9M 2010. The figure breaks down into a Q1 expense of DKK 4.8 million, a Q2 expense of DKK 3.8 million and a Q3 expense of DKK 5.4 million.
The profit before tax and minority interests amounted to DKK 25.6 million in 9M 2011 against DKK 22.0 million in 9M 2010. The Q3 profit was DKK 9.9 million against DKK 9.0 million in Q3 2010.
The coating business (Accoat) reported a DKK 0.1 million increase in revenue to DKK 99.3 million in 9M 2011. EBITDA fell to DKK 8.2 million from 11.8 million in 9M 2010.
The Plastics businesses (SP Moulding, SP Medical, Tinby, TPI, Ergomat and Gibo Plast) all reported decent revenue improvements by a total of DKK 92.0 million (16.9%) to DKK 636.4 million and a substantial increase in operating profit. EBITDA for 9M 2011 was DKK 73.1 million, up from DKK 61.9 million in 9M 2010. The Q3 EBITDA was DKK 24.9 million against DKK 21.0 million in Q3 2010.
There was a cash outflow from operating activities of DKK 0.1 million in 9M 2011, against a cash inflow of DKK 32.9 million in 9M 2010. Cash flows from operating activities were an inflow of DKK 13.9 million in Q3 2011 against DKK 10.9 million in Q3 2010.
Net interest-bearing debt amounted to DKK 407.6 million at 30 September 2011 against DKK 375.3 million at 30 September 2010.
We maintain the upgraded guidance announced at the release of our H1 interim report. Accordingly, we continue to expect full-year 2011 profit before tax and minority interests of DKK 30–35 million, after commissioning costs for four new production units in China, Brazil, Denmark and Poland, respectively. We continue to expect full-year revenue in excess of DKK 900 million, but the market outlook remains unclear.

CEO Frank Gad said: “We are pleased to see that our customers are buying more products from us and that our earnings have continued to improve. However, global economic growth has lost momentum. Fortunately, our customers in the medical devices, cleantech and food industries, accounting for almost 80% of our consolidated revenue, continue to perform well.”

Read the entire report here.

Best regards

Niels K. Agner

Chairman of the Supervisory Board

Frank Gad

Chief Executive Officder

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