As a consequence of the expected divestment of the activities in Solar Deutschland GmbH, the stated figures for both 2013 and 2014 in this announcement relate to the continuing activities.
2014 revenue and EBITA for the Solar Group were in line with the most recently announced expectations. The Board of Directors will ask for approval from the annual general meeting to pay dividends for 2014 of DKK 7.00 per share.
CEO Anders Wilhjelm says:
”2014 was a year of change in Solar. We have made a lot of changes and taken several hard but necessary decisions. Decisions that have meant saying goodbye to many employees, a closing of our historical headquarters, and significant costs that have led to an unsatisfactory financial result, among other things. We are, however, convinced that the transformation into a sourcing and services company is both right and necessary, and the journey has gotten off to a good start.”
| Select key figures (DKK million) |
Q4 2014 |
Q4 2013 |
2014 |
2013 |
| Revenue | 2,773 | 2,766 | 10,252 | 10,463 |
| EBITA | -3 | 116 | 117 | 225 |
| Normalised EBITA | 102 | 123 | 250 | 279 |
| Earnings before tax | -166 | 87 | -122 | 106 |
| Cash flow from operating activities | 306 | 278 | 187 | 310 |
| Select key ratios (%) | ||||
| Organic growth | 2.2 | -5.2 | 0.4 | -5.4 |
| EBITA margin | -0.1 | 4.2 | 1.1 | 2.2 |
| Year-end net working capital/revenue (LTM) | 10.8 | 10.7 | 10.8 | 10.7 |
| Average net working capital /revenue (LTM)* | 12.4 | 13.2 | 12.4 | 13.2 |
* Calculated as an average of the last four quarters’ inventories, debtors and creditors.
2014 Revenue
- The group’s total revenue was in line with the most recently announced expectations.
-
In 2014, organic growth amounted to 0.4% against -5.4% in 2013.
2014 EBITA
- EBITA was in line with the most recently announced expectations.
-
2014 EBITA from continuing activities was affected by restructuring costs of
DKK 86m, write-down of property of DKK 31m, Solar 8000 costs of DKK 13m and an adjustment of the variable part of the selling price for Aurora Group of DKK 3m. -
In comparison, 2013 EBITA from continuing activities was affected by restructuring costs of DKK 38m, Solar 8000 costs of DKK 27m and a profit from the divestment of Aurora Group of DKK 11m.
Distribution of dividends
- In 2014, Solar managed to generate positive cash flows and reduce debt. Furthermore, the divestment of Solar Deutschland will release additional capital.
-
Thus, the Board of Directors will ask for approval from the annual general meeting to pay dividends for 2014 of DKK 7.00 per share.
Expectations for 2015
- We confirm our preliminary expectations for 2015.
- For the continuing activities we expect 2015 revenue between DKK 10.0-10.3bn and EBITA between DKK 200-250m.
- Revenue and EBITA for the continuing activities are negatively affected by falling exchange rates on NOK and SEK. The effect makes up approximately DKK 250m in relation to revenue and approximately DKK 10m in relation to EBITA compared to 2014.
- Given that Solar Deutschland is transferred to Sonepar at the end of April 2015, EBITA for Solar Deutschland for the first four months is expected to amount to approximately DKK 30m, including the profit of DKK 50m.
- Finalisation of the transaction is subject to usual conditions, including approval by relevant authorities. We have achieved approval from the competition authorities.
- For Solar in total, we expect growth in 2015 to be between approximately 0% and approximately 2.5%.
Q4 presentation – audio webcast and teleconference today
The presentation of Annual Report 2014 will be transmitted online on Wednesday 25 February 2015 at 11:00 CET. The presentation will be transmitted as audio webcast and will be accessible via www.solar.eu. It will be possible to make comments and ask questions via teleconference.
Teleconference numbers:
DK: tel. +45 354 455 83
UK: tel. +44 203 194 0544
US: tel. +1 855 269 2604
Yours faithfully
Solar A/S
Anders Wilhjelm
Appendixes: Annual Report 2014 pages 1-85 + Q4 2014 Quarterly information pages 1-8. Please see Annual Report 2014 for comments on Q4 2014.
Facts about Solar
Solar A/S is a listed company and one of Northern Europe’s leading sourcing and services companies, mainly within electrical, heating, plumbing and ventilation technologies. Solar offers products, knowledge and solutions.
The Solar Group, which is based in Denmark, employs around 3,000 employees. Solar is listed on Nasdaq Copenhagen with the short designation SOLAR B and has been listed since 1953. For more information, please visit: www.solar.eu
Disclaimer
This announcement was published in Danish and English today via Nasdaq Copenhagen. In case of any discrepancy between the two versions, the Danish version shall prevail.
