Interim report - Third quarter of 2013

Summary: SP Group generated profit before tax and non-controlling interests of DKK 36.4 million in 9M 2013, against DKK 28.3 million in 9M 2012. Revenue was down by 1.2% year on year to DKK 812.9 million, while EBITDA was up by 13.5% to DKK 84.4 million from DKK 74.3 million. EPS jumped 38.3% to DKK 14.18. We upgrade our guidance for FY 2013 and narrow the guidance range relative to the guidance provided in Annual Report 2012: We now expect profit before tax and non-controlling interests for 2013 of DKK 45–50m instead of the previous guidance of 'a slight increase relative to 2012 (DKK 41.6m)' and slightly higher revenue than in 2012 (DKK 1,109 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 nine months ended 30 September 2013.

Highlights of the interim report:

Revenue for the 9M 2013 period was down by DKK 9.7 million to DKK 812.9 million, or by 1.2%, relative to the year-earlier period. Sales outside Denmark were up by 7.3%, while sales in the Danish market were down by 8.4% due to a drop in the number of large projects. In Q3 2013, revenue grew by 0.6%.
Earnings before depreciation, amortisation and impairment losses (EBITDA) for the 9M 2013 period were DKK 84.4 million, as against DKK 74.3 million in 9M 2012. EBITDA was better than we had expected at the beginning of the year. EBITDA was DKK 31.3 million in Q3 2013, a 22.8% increase on Q3 2012.
Earnings before financial items (EBIT) came to DKK 46.7 million in the 9M 2013 period, against DKK 39.6 million in 9M 2012. EBIT was DKK 19.2 million in Q3 2013, a 31.8% increase on Q3 2012.
Net financials for the 9M 2013 period were an expense of DKK 10.4 million, a DKK 0.9 million improvement on 9M 2012.
Profit before tax and non-controlling interests amounted to DKK 36.4 million in 9M 2013, against DKK 28.3 million in 9M 2012. The Q3 2013 profit was DKK 15.2 million, a 46.6% improvement on Q3 2012.
Earnings per share (diluted) came to DKK 14.18 in 9M 2013, against DKK 10.25 in 9M 2012. This marked an increase of 38.3%.
The Coating business (Accoat) reported a DKK 13.3 million drop in revenue in the 9M 2013 period. EBITDA fell to DKK 18.5 million from DKK 28.2 million in 9M 2012. Revenue and earnings were affected by a drop in the number of major projects relative to last year's historical high.
The Plastics businesses (SP Moulding, SP Medical, Tinby, TPI, Ergomat and Gibo Plast) reported a slight overall revenue increase. EBITDA for the 9M 2013 period was DKK 73.0 million, as against DKK 56.9 million in 9M 2012. The Plastics businesses reported a good third quarter with improvements in both revenue and earnings.
There was a cash inflow from operating activities of DKK 35.0 million in the 9M 2013 period, against DKK 39.5 million in 9M 2012.
Net interest-bearing debt (NIBD) amounted to DKK 416.4 million at 30 September 2013, against DKK 430.3 million at 30 September 2012. At 31 December 2012, NIBD was DKK 395.4 million.
The full-year 2013 guidance is upgraded and the guidance range narrowed: We now expect profit before tax and non-controlling interests for 2013 of DKK 45–50m instead of the previous guidance of 'a slight increase relative to 2012 (DKK 41.6m)' and slightly higher revenue than in 2012 (DKK 1,109 million), but market prospects remain unclear.

CEO Frank Gad said: "We are pleased to see that our earnings have continued to improve even with global economic growth remaining weak. Fortunately, our customers in the medical devices, cleantech and food-related industries, accounting for more than 80% of our consolidated revenue, continue to perform well."

Read the entire report here

In case of any discrepancies, the Danish version shall prevail.

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