Skive - Denmark, 2015-03-27 14:12 CET (GLOBE NEWSWIRE) --
In 2014, Dantherm realised revenue of DKK 441m compared with DKK 482m in 2013. An operating loss (EBIT) of DKK 18.8m was posted against a profit of DKK 5.2m in 2013. The operating result for 2014 was negatively affected by impairment of goodwill of DKK 11.0m, severance payments of DKK 3.0m and costs associated with the divestment of Telecom of DKK 2.2m.
Torben Duer, President & CEO:
’Overall, Dantherm’s operating result in 2014 was unsatisfactory, primarily attributable to the unprofitable Telecom business segment. The HVAC business segment generated reasonably satisfactory results, with H2 2014 outperforming H2 2013. We still expect the divestment of the Telecom business to be completed once the buyer obtains the necessary approvals from the authorities, but due to the postponed completion of the divestment, Dantherm has been granted an extension of its current credit facilities until January 2016.’
Agreement on divestment of the Telecom business segment
- As reported in company announcement no. 3 of 24 March 2014, Dantherm has entered into an agreement on the divestment of the Telecom business segment. The activities in the Telecom segment were therefore classified as discontinuing operations, and this classification was used in the interim reports in 2014. Contrary to expectations, the buyer has not yet been unable to obtain the necessary approvals for the deal to go ahead, and it has thus been assessed that the criteria for the classification of the activities in the Telecom business segment as discontinuing operations have not been satisfied. The classification of activities into continuing and discontinuing operations has thus not been maintained in the annual report.
- The buyer is still working on getting the approvals for the deal to go ahead.
Financial affairs
- As a consequence of the postponed closing of the Telecom divestment, in March Dantherm renegotiated its agreement on committed facilities with the primary credit institutions, which expires on 31 March 2015. The credit institutions have undertaken to extend the committed facilities until January 2016. The agreed credit facilities are on a par with the expected cash needs.
- The scope for strengthening Dantherm’s capital resources will be subject to continuous assessment.
Developments in 2014
- Revenue amounted to DKK 441m against DKK 482m in 2013.
- An operating loss (EBIT) of DKK 18.8m was posted against a profit of DKK 5.2m in 2013. The operating result for 2014 was negatively affected by impairment of goodwill of DKK 11.0m, severance payments of DKK 3.0m and costs associated with the divestment of Telecom of DKK 2.2m.
- Dantherm’s most recent outlook was based on a classification of activities into continuing and discontinuing operations. In accordance with this classification, revenue and operating profit (EBIT) were DKK 306m and DKK 2.0m, respectively, and thus slightly better than the most recently announced outlook of revenue of approx. DKK 300m and an operating profit (EBIT) of approx. DKK 0m.
- Dantherm posted a net loss of DKK 28.5m against DKK 28.0m in 2013.
Outlook for 2015
- The outlook for 2015 is based on the divestment of the Telecom business being completed.
- Market growth within HVAC is expected to remain moderate and impacted by developments in the European economy. Within several business areas, a certain growth is expected to be driven by increased focus on the indoor climate and energy efficiency, but growth within HVAC will primarily depend on winning market share.
- With the cost cuts achieved in 2014 within the HVAC business segment, in 2015, Dantherm expects to post an improved operating profit (EBIT) to the level of DKK 5-10m based on the same cost level of turnover as in 2014.
- If, contrary to expectations, the divestment of the Telecom business is not completed, the operating profit (EBIT) outlook before any impairment of goodwill will not be affected.
Annual general meeting
The annual general meeting will be held on 29 April 2015 at 3 pm at Dantherm A/S, Marienlystvej 65, Skive, Denmark. The Board of Directors proposes that no dividend be paid for 2014.
The complete annual report is enclosed with this company announcement and is also available on the Dantherm A/S website, www.dantherm.com.
Any enquiries concerning this announcement can be directed to President & CEO Torben Duer on tel. +45 99 14 90 14.
