Annual report 2014

Summary: In 2014, SP Group realised a profit before tax and non-controlling interests of DKK 51.5 million, which is an increase of 2.6% compared to 2013. EPS increased by 2.7%. Revenue increased from DKK 1,102.1 million in 2013 to DKK 1,164.9 million in 2014, corresponding to an increase of 5.7%. In Q4 2014, the Company realised a profit before tax and non-controlling interests of DKK 13.0 million.

Annual report 2014

The Board of Directors of SP Group has today discussed and approved the annual report for 2014, which is enclosed in its entirety.

Q4 2014

In Q4 2014, SP Group sold for DKK 293.8 million, which is 1.6% more than in the same period the year before.
EBITDA amounted to DKK 28.7 million, which is a decrease of 3.9% compared to the same period the year before.
Profit before tax and non-controlling interests amounted to DKK 13.0 million, which is a decrease of DKK 0.8 million compared to the same period the year before.
In Q4, cash flows from operating activities amounted to DKK 13.2 million. Cash flows from investing and financing activities amounted to a positive DKK 29.1 million. The change in cash and cash equivalents was therefore positive by DKK 42.3 million.

2014

Revenue increased by 5.7% to DKK 1,164.9 million compared to 2013.
Sales to the healthcare industry increased by 8.0% and now account for 38.9% of revenue.
Foreign sales increased by 5.8% and now account for 50.2% of revenue.
EBITDA decreased with DKK 0.7 million to DKK 113.5 million.
EBIT decreased with DKK 5.1 million to DKK 60.2 million.
Profit before tax and non-controlling interests was improved by DKK 1.3 million, totalling DKK 51.5 million.
Diluted earnings per share increased by 2.7% to DKK 19.25 per share.
Cash flows from operating activities were positive, amounting to DKK 64.1 million.
Net interest-bearing debt increased by DKK 37.2 million to DKK 467.2 million at the end of 2014.
The Board of Directors proposes distribution of dividends of DKK 3.50 per share (2013: DKK 3.00) to the Company's general meeting.
A new share buy-back programme of DKK 10.0 million will be initiated.

Follow-up on previously published expectations

Profit for the year of DKK 51.5 million corresponds to the most recently published expectations on 4 November 2014 of 'a slightly larger profit before tax and non-controlling interests compared to 2013 (DKK 50.2 million)'.
Revenue amounted to DKK 1,164.9 million, which corresponds to the most recently published expectations on 4 November 2014 of 'a slightly higher level of activity than in 2013 (DKK 1,102 million)'.
Cash flows were adversely affected by the decreasing by inventory building.
NIBD/EBITDA amounted to 4.1, which is slightly higher than the most recently published expectations (between 3 and 4).

Outlook for 2015

Global economy is also expected to grow in 2015, but it is still fragile.
In the neighbouring markets in Europe, a low growth rate is expected in the economy in general.
A number of countries still have very large deficits on public finances and a large debt.
SP Group will launch a number of new products and solutions to customers, particularly in the healthcare, cleantech, food-related and oil and gas industries. These new solutions are expected to contribute to both growth and earnings.
The largest single investment is expected to be made in the medical device activities.
Depreciation and amortisation are expected to be realised at a somewhat higher level than in 2014.
Financial expenses are expected to be realised at the same level as in 2014.
Strict cost control, early capacity adjustment and continued strong focus on risk management, cash management and capital management provide a good basis for SP Group in the future.
A slightly larger profit before tax and non-controlling interests and a level of activity slightly higher than in 2014 are expected for 2015, but the market prospects for the year are still uncertain.

CEO Frank Gad says: '2014 was our best year so far in terms of profit before tax and minorities. We expect to perform even better in 2015 if the global economy continues its positive development.'

Read the entire report here

Incase of any discrepancies, the Danish version shall prevail.

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