Comments on the financial results for 2008
TOPSIL'S CONSOLIDATED REVENUE for 2008 grew by 49.8% against 2007 to DKK
289.4m, of which just under DKK 30m derived from the Polish company Cemat
Silicon S.A. This was marginally higher than the most recent guidance.
Operating profit for 2008 was DKK 64.2m (2007: DKK 52.1m), corresponding to a
profit margin of 22.2% (2007:27.0%).
PROFIT BEFORE TAX FOR 2008 was DKK 62.1m, in line with the most recent
forecast, and an increase of DKK 14.0m on 2007. Profit for the year after tax
was DKK 45.9m (2007: DKK 34.9m).
This was the BEST PROFIT reported in group history, and the Board of Directors
and Management consider it to be very satisfactory.
THE STRONG MARKET GROWTH within float zone silicon continued in 2008, and at
the beginning of 2009, Topsil's intake of orders for delivery within the
following 12 months was the highest ever.
IN 2008, TOPSIL COMPLETED the acquisition of 95.92% of Cemat Silicon S.A.,
Poland, at a purchase price of DKK 153.7m. As a result of the acquisition,
Topsil established a position within Czochralski silicon and acquired its own
wafering and wafer polishing facilities.
IN LATE 2008, TOPSIL SIGNED A NEW LONG-TERM AGREEMENT for delivery of
polysilicon with a view to expanding its float zone production. The agreement
runs from 2010 to 2017 and supplements the existing long-term agreement which
runs up until 2012. Over time, the agreement will add 30% to Topsil's float
zone silicon capacity.
IN ORDER TO MEET GROWING DEMAND, Topsil initiated a process to expand
production capacity at Frederikssund, Denmark. The first phase of the expansion
will be implemented in 2010.
Outlook for 2009
Overall, consolidated REVENUE for 2009 is expected to grow by about 50% to
approximately DKK 430-450m.
The group is expected to report a PROFIT MARGIN of approximately 18% for 2009
and PROFIT BEFORE TAX in the region of DKK 65-75m.
The full announcement is attached in PDF
