Interim report - First half year of 2014

Summary: SP Group generated profit before tax and non-controlling interests of DKK 21.2 million in H1 2014, against DKK 21.2 million in H1 2013. Year-on-year, revenue was up by 6.7% to DKK 573.0 million and EBITDA improved to DKK 54.4 million from DKK 53.0 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 today considered and approved the interim report for the six months ended 30 June 2014.

Highlights of the interim report:

The H1 2014 revenue was up by DKK 36.2 million to DKK 573.0 million, a 6.7% improvement on the yearearlier period. Revenue was up by 8.6% in the second quarter to DKK 300 million, the best ever in a single quarter.
Profit before depreciation, amortisation and impairment losses (EBITDA) for H1 2014 was DKK 54.4 million, as against DKK 53.0 million in H1 2013. Earnings were adversely affected by the costs of acquiring Bröderna Bourghardt AB (DKK 0.4 million), of starting up SP Extrusion A/S (DKK 2.1 million) and of the production start-up by Tinby and Ergomat in the USA (DKK 1.5 million). The Q2 EBITDA was DKK 30.3 million, the best ever in a second quarter and the second best of any quarter ever in SP Group history.
Profit before net financials (EBIT) came to DKK 27.4 million in H1 2014, against DKK 27.5 million in H1 2013. EBIT for the second quarter was DKK 16.6 million, as against DKK 15.6 million in Q2 2013.
Net financials were an expense of DKK 6.2 million in H1 2014, a DKK 0.2 million improvement on H1 2013 resulting from the slightly lower level of interest rates and exchange rate adjustments. Net financials for the second quarter were an expense of DKK 2.6 million, against an expense of DKK 3.8 million in Q2 2013.
Profit before tax and non-controlling interests was DKK 21.2 million in H1 2014, as against DKK 21.2 million in H1 2013. The Q2 2014 profit before tax and minority interests was DKK 14.0 million, an 18.8% improvement from DKK 11.8 million in Q2 2013.
Earnings per share (diluted) came to DKK 7.87 in H1 2014, against DKK 8.46 in H1 2013. The fall was mainly due to a reduction in the holding of treasury shares resulting from the exercise of warrants.
The Coating business (Accoat) reported unchanged revenue at DKK 88.9 million. EBITDA fell to DKK 10.7 million from DKK 11.8 million in H1 2013.
The Plastics businesses (SP Moulding, SP Medical, Tinby, TPI, Ergomat, Gibo Plast, SP Extrusion and Bröderna Bourghardt) reported an aggregate revenue improvement of DKK 36.4 million. EBITDA improved by 7.4% to DKK 49.2 million in H1 2014 from DKK 45.8 million in H1 2013.
There was a cash inflow from operating activities of DKK 21.5 million in H1 2014, against DKK 26.2 million in H1 2013.
Net interest-bearing debt (NIBD) amounted to DKK 467.8 million at 30 June 2014, against DKK 408.5 million at 30 June 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: “The H1 2014 period was our best ever first-half performance in terms of revenue and EBITDA. We continue to expect to improve on our performance in 2014 relative to 2013, which is our best year to date, provided the positive developments in the global economy continue.”

See the entire report here

Incase of any discrepancies, the Danish version shall prevail.

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