Skive, Denmark, 2015-10-28 17:10 CET (GLOBE NEWSWIRE) --
Dantherm realised revenue of DKK 303m in Q1-Q3 2015 against DKK 321m in the prior-year period. An operating loss (EBIT) of DKK 17.7 million was posted (Q1-Q3 2014: DKK -18.3m), negatively impacted by DKK 20.3m (Q1-Q3 2014: DKK 14.4m) from the Telecom segment. As announced in 2014, an agreement on the divestment of the Telecom segment has been signed with closing still pending. The outlook for the year as a whole is maintained.
Torben Duer, President & CEO:
“Overall, Dantherm’s operating results for Q1-Q3 2015 were unsatisfactory due to the loss-making Telecom business segment. In Q3 2015, the HVAC business segment posted an operating profit, and continues to develop more positively in 2015 than in 2014, primarily as a result of cost cuts cutbacks implemented. The development in operations and the delayed closing of the divestment of the Telecom business segment mean that intense efforts are still going into initiatives aimed at strengthening the company’s capital structure."
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 maintains a close dialogue with the buyer on the completion of the transaction and is working on a clarification. - The value of the Telecom business segment, including goodwill, is, as in the 2014 annual report and the Q1 and Q2 2015 interim reports, based on the share transfer agreement concerning the divestment of Telecom. If closing contrary to expectations 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, which in these circumstances may result in capital losses for the company under the rules set out in the Danish Companies Act (Selskabsloven).
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 delayed divestment of the Telecom business and by the current operating situation within this segment, and a number of liquidity-enhancing initiatives are still being implemented with a view to maintaining operating activities at current levels going forward.
- Due to the postponed closing of the divestment of the Telecom business and the group’s general financing situation, the Dantherm management is continually stepping up its efforts to further strengthen the group’s capital base.
Developments in Q3 2015
- Revenue amounted to DKK 107m against DKK 116m in Q3 2014.
- An operating loss (EBIT) of DKK 5.1m was posted against a profit of DKK 2.9m in Q3 2014.
- An operating profit (EBIT) of DKK 4.2m was posted for the HVAC business segment (2014: DKK 5.5m), while the operating profit (EBIT) was negatively impacted by DKK 7.5m (Q3 2014: DKK 0.6m) from the Telecom segment.
Developments in Q1-Q3 2015
- Revenue amounted to DKK 303m against DKK 321m in the prior-year period.
- An operating loss (EBIT) of DKK 17.7m was posted against a loss of DKK 18.3m in the prior-year period.
- An operating profit (EBIT) of DKK 7.9m was posted for the HVAC business segment (2014: DKK 2.1m), while the operating profit (EBIT) was negatively impacted by DKK 20.3m (Q1-Q3 2014: DKK 14.4m) from the Telecom segment.
Outlook for 2015
Dantherm maintains the outlook for 2015 of an improved operating profit (EBIT) of DKK 5-10m and revenue on a par with 2014. The outlook for 2015 is based on the divestment of the Telecom business segment being completed and thus on the results of the Telecom business segment being classified as profit/loss from discontinued operations.
If, contrary to expectations, the divestment is not completed, the valuation of the Telecom business segment will have to be based on 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.
