(2009 comparative figures are stated in brackets)
In spite of negative organic growth in 2010, Solar increased EBITA by 35% whereas earnings before tax was more than doubled compared to 2009.
In 2010, Solar realised revenue of € 1,401.5m (€ 1,431.4m) and EBITA of € 49.0m (€ 36.2m). This corresponds to the upper part of guidance for 2010 in terms of revenue and to the middle part of guidance for 2010 in terms of EBITA.
As a result of changed AFP (early retirement benefit) rules in Norway, pension obligations as at 31.12.2010 were reduced by € 1.2m. The amount was recognised under staff costs.
Contrary to this, EBITA was negatively affected by restructuring costs pertaining to staff reductions of € 1.4m.
| Selected highlights (€ million) | 2010 | 2009 |
| Interest-bearing debt, net | 98.5 | 102.8 |
| Cash flow from operating activities | 46.6 | 118.2 |
| Earnings before tax | 35.4 | 17.4 |
| Net profit for the year after tax | 24.6 | 10.1 |
| Selected financial ratios (%) | ||
| Organic growth | -4.8 | -12.1 |
| EBITA | 3.5 | 2.5 |
| Net working capital | 15.9 | 15.0 |
Dividend
A dividend of DKK 10.00 (DKK 4.25) per share is proposed.
Q4 2010
In Q4 2010, Solar realised revenue of € 397.7 (€ 379.9), corresponding to organic growth of 2.2% (-10.1%). Earlier this year, the group saw improved market conditions in most markets and this upward trend continued in Q4. Particularly, our industry-derived revenue has proved positively affected by these increasing activity levels.
In Q4 2010, EBITA was € 17.1m (€ 11.5m), corresponding to 4.3% of revenue.
Expectations for 2011
Increasing exchange rates on SEK, NOK and PLN as well as acquisitions of operations in Q4 2010 entail that 2011 expectations are changed to revenue between € 1,485m and € 1,525m and EBITA between € 59m and € 66m. Compared with 2010, the changed expectations still correspond to organic growth between 3-6%.
The previously announced expectations for 2011 showed revenue of between € 1,420m and € 1,460m and EBITA between € 57m and € 64m.
As previously announced, expected costs of € 5.0m to the roll-out of Solar 8000 are included in the expectations.
Solar 8000
On the basis of our experiences from the implementation of the business concept Solar 8000 in Norway, we are preparing the master plan for roll-out in the remaining countries. In spite of the delay in Norway, the goal is to roll out the concept in both the Netherlands and Denmark in 2011 and in Sweden and Germany in 2012.
Therefore, we will try to accelerate the roll-outs so that we make up for lost time. For this reason, we have, among other thing, initiated the build-up of a group SAP competency centre in Poland. Work with the roll-out master plan is expected to be complete during Q2 2011.
Webcast
An English presentation of Annual Report 2010 will be transmitted online today at 11:00 CET and is available at www.solar.eu.
Solar has updated its corporate governance guidelines
Solar views the recommendations of the Committee on Corporate Governance in Denmark as a valuable tool for ensuring sound management, good transparency for shareholders and other stakeholders and for efficient risk management.
Solar, therefore, basically follows the recommendations relevant to the company. We have just updated our guidelines with respect to the most recent recommendations. The updated guidelines have been approved by the company’s Supervisory Board.
A summary of the updated guidelines is included in Annual Report 2010 and the guidelines will be available at www.solar.eu.
Best regards,
Solar A/S
Flemming H. Tomdrup
