DGAP-News: SURTECO SE / Key word(s): Final Results/Dividend
SURTECO SE: SURTECO proposes dividend increase of 14 % for 2015
29.04.2016 / 11:00
The issuer is solely responsible for the content of this announcement.
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Press Release
SURTECO proposes dividend increase of 14 % for 2015
- New record sales of EUR 638 million
- EBIT increases by 13 % to EUR 31 million
- Free cash flow increases by 51 % to more than EUR 40 million
- Confidence for 2016: Modest sales increase anticipated and significant
improvement in EBIT to EUR 38 - 42 million
Buttenwiesen-Pfaffenhofen, 29 April 2016 - SURTECO SE - one of the world's
leading manufacturers of decorative surface materials - is confident of
being able to increase sales and earnings once more in 2016. During the
reporting year 2015, the Group once again generated a record level of sales
at EUR 638.4 million (2014: EUR 618.5 million). Although substantial
integration costs were entailed for the concentration of the German
decorative printing activities, SURTECO achieved an increase in the
earnings before financial result and income tax (EBIT) of 13 % to EUR 31.1
million compared with 2014 (EUR 27.6 million). A substantially improved
financial result led to an increase in the pre-tax result from EUR 22.3
million in 2014 to EUR 26.8 million. Net profit after tax amounted to EUR
17.7 million, which translates into earnings per share of EUR 1.14. Against
this background, the Board of Management and the Supervisory Board will
recommend that the Annual General Meeting pay out a dividend increased from
EUR 0.70 to EUR 0.80 per share. SURTECO has forecast a modest increase in
sales and an improvement in EBIT to EUR 38 - 42 million for 2016.
"In 2016, we will strive to achieve another modest increase in Group sales.
Since the integration of Süddekor has now been largely completed, we
believe that there are good opportunities to generate a significantly
greater increase in earnings than in the previous year. Thanks to the
quality of our balance sheet and the high level of free cash flow, we are
in an excellent financial position for the planned future growth. In view
of this, expectations of positive news from SURTECO over the upcoming years
are undoubtedly justified," according to the Chairman of the Board of
Management of SURTECO SE, Dr. Herbert Müller.
Increase in sales and earnings for both segments
The sales of the Strategic Business Unit Plastics improved by 7 % to EUR
243.7 million (2014: EUR 227.2 million) due to the introduction of new
service offerings, innovative products and dynamic business in North
America. The paper segment underwent a moderate rise of 1 % to EUR 394.7
million (2014: EUR 391.2 million). EBIT also went up substantially in both
segments (papers +7 %, plastics +12 %) despite a sustained high level of
raw material costs for papers and plastics. The integration of the Süddekor
activities was largely completed during the year under review. Once again,
this led to one-off burdens on earnings amounting to EUR 11.4 million.
Free cash flow increased by more than 50 % to EUR 40.7 million
In 2015, SURTECO once again succeeded in improving a balance sheet quality
that was already very robust. Accordingly, the equity ratio once again rose
slightly from 50.4 % to 51.0 %. The free cash flow climbed by 51 % from EUR
26.9 million to EUR 40.7 million on the back of operating improvements, and
net financial debt fell by 13 % to EUR 126.6 million. The level of debt -
defined as the ratio of net financial debt and equity - correspondingly
came down by 7 percentage points to 38 %. This means that the Group has a
sound platform for the growth trajectory being pursued by the company.
Further profitable growth is the focus for 2016
In view of the sound economic development and cautious optimism from the
most important group of customers in the form of the furniture industry,
SURTECO is forecasting a further slight improvement in sales for the Group
for 2016. In spite of the sustained high costs of raw materials, the
projected operating improvements should result in a notably
disproportionate rise in earnings compared to the substantially lower
one-off negative impacts from the integration of Süddekor. The Board of
Management is therefore anticipating an increase in EBIT of EUR 31.1
million to a value between EUR 38 million and EUR 42 million. The Group
also perceives additional potential for growth over the medium and
long-term owing to the planned optimization of sales channels and
structural improvements, alongside a stronger focus on innovations. Given
the perspective of external growth, SURTECO will continue to pursue an
active role in the consolidation of the sector.
You can find the Annual Report for 2015 and additional information on
SURTECO SE on the Internet at www.surteco.com.
Profile of SURTECO
SURTECO SE, Buttenwiesen-Pfaffenhofen, is a leading international
specialist for surface technologies. The product portfolio includes papers
printed with decorative designs, impregnated products, release paers,
decorative flat foils and edgebandings based on specialist papers for
technical applications and plastics. The extensive product portfolio is
completed by skirtings made of plastic, technical extrusions for industry
and do-it-yourself ranges and shutter systems.
The Group currently has a workforce of appr. 2,700 and manufactures at 20
sites on four continents, currently generating approximately 29 % of sales
in Germany, 44 % in European countries outside Germany and the remainder in
America, Asia and Australia. Customers of SURTECO generally come from the
wood based materials, flooring and furnishing industry and the interior
industry.
The shares of SURTECO SE are listed on the official market (Prime Standard)
of the Frankfurt and Munich Stock Exchanges under the ticker symbol SUR and
ISIN DE0005176903. They are also traded on the stock markets in Berlin,
Düsseldorf, Stuttgart Hamburg and Hannover.
Cautionary note regarding forward-looking statements
This press release contains statements of future forecasts or expectations
and other forward-looking statements and involves known and unknown risks
and uncertainties. There is therefore no guarantee for the statements and
expectations expressed herein. The actual results and developments may
differ substantially. The company does not intend to - and assumes no
obligation - to update any forward looking statements contained herein or
to adapt such information to future results or developments.
Contact:
<pre>
SURTECO SE
Andreas Riedl Martin Miller
Chief Financial Officer Investor Relations and Press Office
+ 49 (0) 8274/99 88-563 + 49 (0) 8274/99 88-508
Internet www.surteco.com
Email ir@SURTECO.com
Fax + 49 (0) 8274/99 88-515
</pre>
Important indicators of SURTECO SE
(in EUR million)
<pre>
2014 2015 Variation
Consolidated sales 618.5 638.4 +3 %
- of which paper 391.2 394.7 +1 %
- of which plastics 227.2 243.7 +7 %
Foreign sales in % 72 72 -
EBITDA 62.8 65.0 +3%
EBITDA margin in % 10.2 10.2 -
EBIT 27.6 31.1 +13 %
EBIT margin in % 4.5 4.9 +9 %
EBT 22.3 26.8 +20 %
Consolidated net profit 18.5 17.7 -4 %
Earnings per share in EUR 1 1.19 1.14 -4 %
Dividend per share in EUR 2 0.70 0.80 +14 %
</pre>
<pre>
31/12/2014 31/12/2015 Variation
Balance sheet total 636.7 656.1 +3 %
Equity 321.1 334.9 +4 %
Net debt 145.8 126.6 -13 %
Level of debt in % 3 45 38 -7 pts.
Equity ratio in % 50.4 51.0 +0.6 pts.
Cash flow from current business operations 54.3 69.2 +27 %
Free cash flow 26.9 40.7 +51 %
Employees 2,705 2,695 -
</pre>
(1) Based on an number of shares amounting to 15,505,731
(2) For the business year 2015: Dividend proposal to the Annual General
Meeting
(3) Net debt / Equity
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29.04.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: SURTECO SE
Johan-Viktor-Bausch-Str. 2
86647 Buttenwiesen-Pfaffenhofen
Germany
Phone: +49 (0)8274 99 88-0
Fax: +49 (0)8274 99 88-5 05
E-mail: ir@surteco.com
Internet: www.surteco.com
ISIN: DE0005176903
WKN: 517 690
Listed: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Stuttgart
End of News DGAP News Service
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458117 29.04.2016
DGAP-News: SURTECO SE: SURTECO proposes dividend increase of 14 % for 2015
| Source: EQS Group AG