Interim report for H1 2014

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| Source: Dantherm
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Skive, Denmark, 2014-08-29 15:44 CEST (GLOBE NEWSWIRE) --  

Dantherm’s continuing operations realised revenue of DKK 138m in H1 2014 against DKK 158m in H1 2013. Due to the lower revenue, an operating loss (EBIT) of DKK 7.4m was posted against a profit of DKK 1.1m in H1 2013. Activity levels are expected to increase in H2 2014, where activity levels are traditionally higher, and the outlook for the year is maintained. Closing related to the divestment of the Telecom business segment is still expected to be completed in near future.


Torben Duer, President & CEO: 

“H1 2014 was weaker than expected, primarily due to lower revenue within dehumidification and Telecom spare parts sales, while ventilation posted growth in sales. Completion of the divestment of the Telecom business segment is expected in near future and the focus is thus on the strategic development of the remaining business areas with a view to increasing revenue and profitability.”

 

Divestment of Telecom business segment

  • As mentioned in company announcement no. 9 of 5 August 2014, the closing related to the divestment of the Telecom business was expected to be completed in near future. This is still the expectation.
  • On a debt-free basis, the selling price is expected to be approx. DKK 136m, which is expected to lead to an accounting loss in 2014 of approx. DKK 15m (DKK -14.4m of which was recognised in H1 2014), including costs for the sales process and the impact on results in 2014 of the divested activities until closing.

Development in Q2 2014

  • Revenue from continuing operations totalled DKK 69m relative to DKK 80m in Q2 2013.
  • An operating loss (EBIT) of DKK 2.8m was posted for the continuing operations against an operating profit of DKK 2.1m in Q2 2013.
  • Cash flows from operating activities were negative at DKK 2m against positive cash flows of DKK 7m in Q2 2013.

Development in H1 2014

  • Revenue from continuing operations came to DKK 138m against DKK 158m in H1 2013.
  • An operating loss (EBIT) of DKK 7.4m was posted for the continuing operations against an operating profit of DKK 1.1m in H1 2013.
  • Cash flows from operating activities were negative at DKK 4m against positive cash flows of DKK 1m in H1 2013.

Financial structure

  • In February 2014 Dantherm concluded its agreement with the primary credit institutions on extension of the existing committed facilities until 31 March 2015. The agreement comprises the usual covenants. The covenants on June 30 2014 were calculated under the assumption that closing related to the divestment of the Telecom business segment was completed before this date. Due to delay in the closing process Dantherm was not able to meet these covenants and has received a waiver. Dantherm is in a good dialogue with its credit institutions on the credit facilities and closing is still expected to be completed in near future.
  • After closing of the divestment of the Telecom business segment, Dantherm will settle the facilities related to operations under the committed facilities agreed with the credit institutions, and net interest-bearing debt will be reduced to approx. DKK 90m (year-end 2013: DKK 203m), which is primarily associated with property financing in Denmark and Norway.

Outlook for 2014

Dantherm is maintaining the outlook for the year of revenue of DKK 300-325m from the continuing operations and an operating profit (EBIT) of DKK 5–10m.

H1 2014 has been weaker than expected. The activity level in H2 2014 is traditionally higher.  Realising the outlook for 2014 requires a little higher revenue in the remaining part of 2014 compared to H2 2013 and a better operating profit (EBIT) as a result of cost reductions carried out.

Any enquiries concerning this announcement can be directed to President & CEO Torben Duer on tel. +45 99 14 90 14.