schlott gruppe Aktiengesellschaft / Final Results/Dividend
11.01.2008
Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Supervisory Board meeting of schlott gruppe AG for the adoption of
financial statements
- Confirmation of preliminary results for 2006/7 financial year
- Proposal to AGM of unchanged dividend of 1.00 per share
- Werner Reiser to step down from Management Board for personal reasons on
expiry of contract
Freudenstadt, January 11, 2008. Adoption of 2006/7 financial statements. At
today's meeting the Supervisory Board of schlott gruppe AG approved the
consolidated financial statements and annual accounts of the company,
thereby adopting the financial statements for the annual period 2006/7. The
preliminary results for the 2006/7 financial year (October to September),
as announced on November 9, 2007, have thus been confirmed.
As published, the group posted a net profit of 33.7 million, compared with
11.8 million a year ago. Within this context, the gain on disposal of the
company's direct marketing division as well as the mandatory capitalisation
of corporation tax credits and the effects of Germany's corporate tax
reform had a positive impact on bottom-line results.
The group's reported value-added sales and earnings before taxes (EBT) are
not consistent with those published as part of the preliminary announcement
due to the fact that the profit contribution from operations as well as
from the gain on disposal of the direct marketing division was reclassified
in the financial statements as profit of discontinued operations, in
accordance with the provisions set out in IFRS 5. Correspondingly, the
amounts reported in the following sections with regard to value-added sales
and EBT refer solely to continuing operations.
In the 2006/7 financial year, value-added sales for the group as a whole
amounted to 251.7 million, compared with 244.6 million in 2005/6. Group
revenue stood at 482.2 million, in contrast to 425.6 million a year ago.
Both value-added sales and revenue were buoyed by the initial consolidation
of Dutch-based biegelaar. Owing to significant pressure on prices within
the European gravure printing industry, EBT receded to 11.0 million, down
from 26.7 million in 2005/6.
Benefiting from the favourable tax effects outlined above, post-tax profit
from continuing operations rose to 18.9 million, up from 17.8 million.
The result from discontinued operations amounted to plus 14.8 million in
the reporting period, after minus 6.0 million in the previous year.
Earnings per share improved accordingly for continuing operations, up from
2.87 a year ago to 3.04 for the annual period just ended. Including the
contribution attributable to direct marketing, earnings per share rose to
5.42 in the reporting period, up from 1.91 a year ago.
The progression of continuing operations was dominated mainly by the print
business unit, which generated value-added sales of 247.8 million in the
financial year just ended, up from 240.2 million in 2005/6. EBT amounted
to 12.9 million, after 31.1 million a year ago. The corporate services
unit, which operates as an intra-group service provider and thus generates
insignificant external revenues, improved its EBT from minus 3.8 million a
year ago to minus 2.7 million in 2006/7.
Net debt at group level was reined back to 168.4 million, down from 191.1
million, benefiting from positive free cash flow amounting to 11.8 million
in 2006/7, in contrast to minus 6.7 million a year ago, as well as from
the disposal of the direct marketing unit.
In view of the continued malaise of the industry as a whole, the Management
Board of schlott gruppe has initiated far-reaching measures aimed at
streamlining the company's cost structures. The prime objective is to
counteract current and foreseeable pricing pressures, achieve a significant
improvement in EBT for the 2008/9 financial year, and subsequently return
to solid double-digit pre-tax profits together with a satisfactory level of
ROE.
The one-off costs associated with this programme have been budgeted at
approx. 15 million in FY 2007/8. With value-added sales forecast to
decline slightly year on year and competitive pressures expected to remain
at an elevated level, the Management Board of schlott gruppe is targeting a
break-even result before taxes and the aforementioned non-recurring charges
for the current financial year. The cost-reduction programme currently
being implemented will be outlined in greater detail at the financial press
conference and analysts' meeting on January 23, 2008.
Appropriation of profits proposed to the AGM
The Supervisory Board and the Management Board propose to the Annual
General Meeting of Shareholders on February 26, 2008, an unchanged dividend
of 1.00 per share. The proposal represents a continuation of the policy of
consistent dividend payments and will allow shareholders to participate at
an appropriate level in the disposal of the direct marketing unit, a
transaction that contributed to the reduction in net debt and the
strengthening of schlott gruppe's balance sheet. At the same time, schlott
gruppe wishes to reaffirm its confidence in the cost-reduction programme
initiated by the company, targeting a significant and sustainable
improvement in the group's profitability as early as the 2008/9 financial
year.
Changes to the Management Board
Furthermore, schlott gruppe announces Mr. Werner Reiser's decision to step
down from the Management Board of schlott gruppe AG on expiry of this
contract on May 31, 2008, after 15 years of service. In future, he will act
as an independent consultant.
Werner Reiser joined the company formerly known as Schlott Tiefdruck GmbH
in 1993, holding a senior management position equipped with commercial
power of attorney. He was subsequently appointed as a member of the
Management Board of schlott gruppe AG in 1997 and was responsible from 2000
onwards for the areas of general administration, financial accounting and
human resources.
Werner Reiser made a significant contribution to the successful development
of the company. His commitment to schlott gruppe went far beyond the scope
of his immediate area of responsibility. As early as 1997, he played a
pivotal role in the initial public offering of schlott AG and subsequently
shaped the many changes seen within the group as part of an acquisition-led
strategy of growth.
Both the Supervisory Board and the Management Board deeply regret Werner
Reiser's decision to leave the company. The rapport established between him
and the members of both boards was outstanding in every respect. At the
same time the company fully respects his wish to step down from his duties
as a Management Board member after such an extensive period of service.
Upon Werner Reiser's resignation effective from May 31, 2008, the
Management Board duties of financial accounting and human resources will be
covered by Heiko Arnold in addition to his existing responsibilities within
the area of treasury, controlling and investor relations. In addition to
his duties relating to technology and production, Adam Valeri will assume
responsibility for group procurement, while Bernd Rose will take charge of
internal auditing and risk management alongside his duties within the area
of business development and sales. This will ensure continuity and an
effective transition of Management Board duties.
The Supervisory Board, Management Board and members of staff would like to
take this opportunity to thank Werner Reiser for the many years of
outstanding service and wish him continued success and good health.
Notes to financial data:
Alongside 'revenue/sales', schlott gruppe uses so-called 'value-added
sales' (VAS) as a financial indicator both in its external communications
and as part of its internal controlling mechanisms. Revenue is subject to
fluctuations that are attributable to the volume of paper supplied by
customers as raw material for certain projects. In contrast to paper
purchased directly by the company, paper supplied by customers is not
included in the accounts of schlott gruppe. In the 2006/7 financial year,
the so-called paper provision ratio stood at 72.5 per cent. As a financial
indicator, 'value-added sales' eliminates fluctuations relating to paper
supplied by customers, thus reflecting the actual sales performance.
schlott gruppe AG
Marco Walz
Investor Relations & PR
Wittlensweilerstr. 3
72250 Freudenstadt
Germany
Tel.: +49 7441 531 230
Fax : +49 7441 531 204
marco.walz@schlottgruppe.de
www.schlottgruppe.de
DGAP 11.01.2008
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Language: English
Issuer: schlott gruppe Aktiengesellschaft
Wittlensweilerstraße 3
72250 Freudenstadt
Deutschland
Phone: +49 (0)7441 531-230
Fax: +49 (0)7441 531-204
E-mail: marco.walz@schlottgruppe.de
Internet: www.schlottgruppe.de
ISIN: DE0005046304
WKN: 504630
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, Düsseldorf
End of News DGAP News-Service
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DGAP-News: Supervisory Board meeting of schlott gruppe AG for the adoption of financial statements
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