Interim report – First quarter of 2014

Summary: SP Group generated profit before tax and non-controlling interests of DKK 7.2 million in Q1 2014, against DKK 9.4 million in Q1 2013. Year-on-year revenue was down by 4.7% to DKK 273.0 million and EBITDA fell to DKK 24.1 million from DKK 24.7 million. We maintain the FY 2014 guidance announced in the 2013 Annual Report. We continue to expect a slight increase in profit before tax and non-controlling interests in 2014 relative to 2013 (DKK 50.2 million) and slightly higher revenue than in 2013 (DKK 1,102 million), but market prospects remain unclear.

The Board of Directors of SP Group A/S has today considered and approved the interim report for the three months ended 31 March 2014.

Highlights of the interim report:

The Q1 2014 revenue was up by DKK 12.3 million to DKK 273.0 million, or by 4.7% relative to the year-earlier period. Several business areas reported a very sluggish start to the year due to the unclear global market conditions.
Earnings before depreciation, amortisation and impairment losses (EBITDA) for Q1 2014 were DKK 24.1 million, as against DKK 24.7 million in Q1 2013. Earnings were adversely affected by the cost of acquiring Bröderna Bourghardt AB (DKK 0.4 million), the cost of starting up SP Extrusion A/S (DKK 1.0 million) and the start-up of production by Tinby and Ergomat in the USA (DKK 1.0 million).
Earnings before interest and tax (EBIT) came to DKK 10.8 million in Q1 2014, against DKK 11.9 million in Q1 2013.
Net financials were an expense of DKK 3.6 million in Q1 2014, a DKK 1.1 million deterioration relative to Q1 2013 resulting from the slightly higher debt and exchange rate adjustments.
Profit before tax and non-controlling interests was DKK 7.2 million in Q1 2014, as against DKK 9.4 million in
Q1 2013.
Earnings per share (diluted) came to DKK 2.78 in Q1 2014, against DKK 3.55 in Q1 2013.
The Coating business (Accoat) reported a DKK 0.5 million drop in Q1 2014 revenue and a fall in EBITDA to DKK 5.2 million from DKK 5.9 million in Q1 2013.
The Plastics businesses (SP Moulding, SP Medical, Tinby, TPI, Ergomat, Gibo Plast, SP Extrusion and Bröderna Bourghardt) reported a revenue improvement of DKK 13.6 million. EBITDA improved by 6.8% to DKK 22.4 million in Q1 2014 from DKK 20.9 million in Q1 2013.
There was a cash inflow from operating activities of DKK 0.1 million in Q1 2014, against DKK 2.9 million in Q1 2013.
Net interest-bearing debt (NIBD) amounted to DKK 459.1 million at 31 March 2014, against DKK 407.1 million at 31 March 2013. At 31 December 2013, NIBD was DKK 430.0 million.
We continue to expect a slight increase in profit before tax and non-controlling interests in 2014 relative to 2013 (DKK 50.2 million) and slightly higher revenue than in 2013 (DKK 1,102 million), but market prospects remain unclear.

CEO Frank Gad said: “2013 was our best year to date in terms of operating profit. We expect to perform even better in 2014 if the global economy continues to improve.”

Read the entire report here

Incase of any discrepancies, the Danish version shall prevail.

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