Auriga Industries A/S, Harboøre, Denmark, 2015-02-20 08:00 CET (GLOBE NEWSWIRE) --
Company announcement no. 2/2015
February 20, 2015
HIGHLIGHTS 2014
Auriga had a satisfactory year with the divestment of Cheminova as the key event. 5% organic growth lifted the reported revenue to DKK 6.8 billion with improved operating margins in Cheminova. The cash flow was impacted by a significant reduction in factoring/securitization, leading to increased leverage.
- 2014 was impacted by the divestment of Cheminova, now awaiting competition clearances to close the transaction.
- Until closing, Cheminova will be consolidated in Auriga’s accounts as discontinuing operations, while Auriga is presented as continuing operations.
- In 2014, the net profit from continuing operations (Auriga) totaled DKKm -61, following an increase in administrative cost of DKKm 32 to DKKm 49 due to expenses related to the divestment process.
- Discontinuing operations (Cheminova) had a satisfactory year with 5% organic growth, lifting the reported revenue 2% to DKKm 6,755. The gross margin improved 0.8 percentage points to 30.8% resulting in an EBIT increase of 9% when adjusting for the cost related to the divestment of Cheminova in 2014 and the sale of Stähler Switzerland in 2013.
- Revenue and earnings from discontinuing operations improved, despite a negative impact from the drought and challenging market conditions in Brazil, significantly curtailing the performance in Q4.
- The negative cash flow was impacted by the significantly lower use of factoring/securitization as well as higher inventories, leading to a higher debt by year-end.
- The divestment of Cheminova is expected to be closed in March or April.
- Distribution methods are still being assessed to determine the most efficient method. The outcome will be communicated at a later stage.
- The Annual General Meeting will be held on April 30, 2015, where Auriga expects to be able to give more information about the expected distribution of proceeds from the divestment.
- The outlook of expected net proceeds in the range of DKK 323-325 per share to be distributed to the shareholders in 2015 is maintained. The range is still subject to some uncertainty.
Expected timeline for the divestment
2015 Closing of the transaction (expectedly in March or April)
2015 Notice to convene the (Annual and/or Extraordinary) General Meeting to
approve the cash distribution and method
2015 Distribution of excess cash proceeds to Auriga’s shareholders
2015-16 Delisting and liquidation of Auriga
The expected timeline should be regarded as an indication of the stages in the process, which is conditional on the closing of the transaction. A delay in closing will postpone the subsequent stages.
AURIGA INDUSTRIES A/S
CONTACT:
René Schneider, Chief Financial Officer (CFO)
Tel. +45 40 80 99 50
Lene Faurskov, Manager, Investor Relations
Tel. +45 41 64 05 04
www.auriga-industries.com - investor@auriga.dk
Tlf. 70 10 70 30
No audiocast/conference call will be held in connection with the Annual Report 2014.
