Skive, Denmark, 2015-08-19 15:44 CEST (GLOBE NEWSWIRE) --
In H1 2015, Dantherm realised revenue of DKK 196m compared with DKK 205m in H1 2014. An operating loss (EBIT) of DKK 12.6m was posted (H1 2014: DKK -21.2m), negatively impacted by DKK 12.8m (H1 2014: DKK -13.8m) from the Telecom segment. As announced in 2014, an agreement on the divestment of the Telecom segment has been concluded, with the closing not yet having been completed. The outlook for the entire year is maintained.
Torben Duer, President & CEO:
“Overall, Dantherm’s operating results in H1 2015 were unsatisfactory due to the loss-making Telecom business segment. In H1 2015, the HVAC business segment posted an operating profit which was better than in 2014, primarily as a result of the cost cuts implemented. The first half of the year is traditionally characterised by low activity levels, which are expected to increase during the rest of the year.”
Agreement on divestment of the Telecom business segment
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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 to China Technologies
Holdings Group. Contrary to expectations, the buyer has not yet been able to complete the transaction, and it has thus been assessed that the criteria for classifying the activities in the Telecom business segment as discontinuing operations have not been satisfied. Dantherm is in close dialogue with the buyer on the completion of the transaction and expects clarification in Q3 2015. - The value of the Telecom business segment, including goodwill, is, as in the 2014 annual report and the Q1 2015 interim report, based on the share transfer agreement concerning the divestment of Telecom. If the closing is not completed, the valuation of the Telecom business segment will have to be assessed on the basis of an updated business plan, and write-downs including impairment losses of goodwill will have to be recognised, by a considerable amount.
Financing and capital structure
- As reported in company announcement no. 2 of 27 March 2015, in March Dantherm renegotiated the agreement on committed facilities with its primary credit institutions. The credit institutions have undertaken to extend the facilities until January 2016, subject to certain conditions. Dantherm’s liquidity is negatively impacted by the delay of the divestment of the Telecom business segment and by the current operating situation in this business segment, and a number of liquidity-enhancing initiatives have been initiated with a view to maintaining operating activities at current levels.
- Due to the postponed closing of the divestment of the Telecom business segment and the group’s general financing situation, Dantherm’s management has stepped up efforts to further strengthen the group’s capital base.
Developments in Q2 2015
- Revenue amounted to DKK 103m against DKK 105m in Q2 2014.
- An operating loss (EBIT) of DKK 6.5m was posted (Q2 2014: DKK -2.9m), negatively impacted by DKK 6.6m (Q2 2014: DKK 0.0m) from the Telecom segment.
Developments in H1 2015
- Revenue totalled DKK 196m relative to DKK 205m in H1 2014.
- An operating loss (EBIT) of DKK 12.6m was posted (H1 2014: DKK -21.2m), negatively impacted by DKK 12.8m (H1 2014: DKK -13.8m) from the Telecom segment.
Outlook for 2015
Dantherm maintains the outlook for 2015 of an improved operating profit (EBIT) of DKK 5-10m with the same level of revenue as in 2014. The outlook for 2015 is based on the divestment of the Telecom business being completed.
If, contrary to expectations, the divestment is not completed, the valuation of the Telecom business will have to be assessed on the basis of an updated business plan, and the operating results (EBIT) will be negatively affected by write-downs including impairment losses of goodwill, of a considerable amount.
Any enquiries concerning this announcement can be directed to President & CEO Torben Duer on tel. +45 99 14 90 14.
