Interim report - Third quarter of 2014

Summary: SP Group generated profit before tax and non-controlling interests of DKK 38.4 million in 9M 2014, against DKK 36.4 million in 9M 2013. Year-on-year, revenue was up by 7.2% to DKK 871.2 million and EBITDA improved to DKK 84.8 million from DKK 84.4 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 30 September 2014.

Highlights of the interim report:

The 9M 2014 revenue was up by DKK 58.3 million to DKK 871.2 million, equal to a 7.2% improvement on the year-earlier period. Q3 revenue was up by 8.0% year-on-year to DKK 298.2 million.
Earnings before depreciation, amortisation and impairment losses (EBITDA) for the 9M 2014 period were DKK 84.8 million, as against DKK 84.4 million in 9M 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 3.2 million) and of the production start-up by Tinby and Ergomat in the USA (DKK 1.5 million). EBITDA for Q3 2014 was DKK 30.4 million, compared with DKK 31.3 million in Q3 2013.
Earnings before financial items (EBIT) came to DKK 45.0 million in the 9M 2014 period, against DKK 46.7 million in 9M 2013. EBIT for the third quarter was DKK 17.6 million, as against DKK 19.2 million in Q3 2013.
Net financials were an expense of DKK 6.6 million in 9M 2014, a DKK 3.8 million improvement on 9M 2013 resulting from the slightly lower level of interest rates and exchange rate adjustments. Net financials for the third quarter were an expense of DKK 0.4 million, against an expense of DKK 4.0 million in Q3 2013.
Profit before tax and non-controlling interests amounted to DKK 38.4 million in 9M 2014, against DKK 36.4 million in 9M 2013. The Q3 2014 profit before tax and minority interests was DKK 17.2 million, up from DKK 15.2 million in Q3 2013 and the best quarterly result ever.
Earnings per share (diluted) came to DKK 14.51 in 9M 2014, against DKK 14.60 in 9M 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 revenue of DKK 126.2 million for the 9M 2014 period, against DKK 134.4 million in 9M 2013. EBITDA fell to DKK 13.5 million from DKK 18.5 million in 9M 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 66.5 million to DKK 750.2 million. EBITDA was up by 8.1% to DKK 78.9 million in the 9M 2014 period from DKK 73.0 million in 9M 2013.
There was a cash inflow from operating activities of DKK 50.9 million in the 9M 2014 period, against DKK 35.0 million in 9M 2013.
Net interest-bearing debt (NIBD) amounted to DKK 454.3 million at 30 September 2014, against DKK 416.4 million at 30 September 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 Q3 2014 period was our best ever quarterly bottom-line performance. 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.”

Read the entire report here

Incase of any discrepancies, the Danish version shall prevail.

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