Announcement no. 03 - 2008/09 June 12, 2008
ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED APRIL 30, 2008
The Board of Directors of Thrane & Thrane A/S - the world's leading provider of
global mobile communication equipment and systems - today approved the
company's annual report for the financial year ended April 30, 2008.
Performance 2007/08
• Thrane & Thrane reported a 59% improvement of the operating profit to DKK 188
million before restructuring and integration costs against DKK 118 million in
2006/07.
• Revenue increased by 12% to DKK 1,253 million against DKK 1,121 million last
year. The improvement was 25% in the maritime market, the Group's largest
business area.
• Exchange rate movements had an adverse impact on the company's revenue for
the year, with USD depreciating more than 18% against DKK. Assuming unchanged
exchange rates, revenue would have been 3% higher.
• Cash flows from operating activities were DKK 209 million (DKK 151 million),
and the free cash flow from operating and investing activities excluding
acquisitions and funding was DKK 26 million (DKK 22 million).
• The merger of the Norwegian and Danish operations progressed as planned. From
the 2009/10 financial year onwards the closing down of operations in Norway is
expected to generate additional synergies of around DKK 90 million per year.
Actual and anticipated restructuring costs totalling DKK 126 million have been
fully provided in the Group financial statements for 2007/08.
• DKK 216 million was charged in respect of product development and product
maintenance in 2007/08 (DKK 168 million), equivalent to 17.2% of revenue
(15.0%).
• Equity amounted to DKK 758 million at April 30, 2008, and the equity ratio
was 44%.
• Return on invested capital before restructuring and integration costs was
14.4% (15.7%).
• For the financial year ending April 30, 2009, Thrane & Thrane expects
operating profit of around DKK 170 million based on revenue of around DKK
1,300-1,325 million. The operating margin is thus expected to be around 13%
(2007/08: 15.0%). The lower operating margin relative to 2007/08 is mainly
attributable to lower systems revenue and a significant increase in
amortisation on capitalised development projects.
• Thrane & Thrane's Board of Directors intends to recommend to the shareholders
at the annual general meeting to be held on June 26, 2008 that a dividend of
DKK 5.50 per share of DKK 20 be paid (unchanged).
Thrane & Thrane will hold an investor presentation at 1 p.m. today at the OMX
Nordic Exchange Copenhagen, Nikolaj Plads 6, Copenhagen K. At the presentation,
the Management Board will review the company's performance, outlook for 2008/09
and the perspectives for the further development of the company.
The company's annual report is available for download at www.thrane.com. A
webcast of the Management Board's presentation of the annual report will also
be available at the website from 1 p.m.
About Thrane & Thrane
Thrane & Thrane is the world's leading manufacturer of equipment and systems
for global mobile satellite and radio communication. Since inception in 1981,
the company has achieved a leading position within global mobile satellite
services based on the Inmarsat system. Today, it provides equipment for use
everywhere - on land, at sea and in the air. The company's communication
products are marketed globally by distributors and business partners under the
Thrane & Thrane, EXPLORER and SAILOR brands. The company's shares are listed on
the OMX Nordic Exchange Copenhagen (symbol: THRAN). www.thrane.com.
Further information:
John Alexandersen, Vice President, Group Communications
Tel. (+45) 39 55 88 35 or (+45) 22 72 38 22 (mobile)
E-mail investor@thrane.com
