The Board of Directors has today presented and approved the interim report for the 1st quarter of the financial year 2016/17. The interim report has not been audited or reviewed by the company auditors.
The interim report contains the following main points:
The result of Q1 (1 May 2016 – 31 July 2016)
- The result of Q1 before taxation and minority shareholders amounts to 19.4 DKK million against 40.3 DKK million last year. Corrected for once-only income last year regarding the sale of our property in Vejle the decline is approx. 1 DKK million.
- Result before financial items and taxation amounts to 21.9 DKK million corresponding to an EBIT margin of 10%.
- The group turnover amounts to 222 DKK million against 234 DKK million last year.
- The net investments in long-term assets during the period amount to 10 DKK million.
- Cash flows from operation amount to 25 DKK million.
Prospects 2016/17
We have followed the development since Brexit. Apart from the development in the GBP exchange rate we have not yet been able to ascertain essential changes in the activity level. However, we do not doubt that the effect will hit the UK market later this year or at the beginning of 2017. We do not expect Brexit to affect the activity level essentially in the rest of Europe.
Our total expectations for 2016/17 are the following
-
A turnover of 950 – 1,000 DKK million
-
An EBIT-margin of 7-8%
-
Cash flows from operation of 80-90 DKK million
- New investments in long-term assets of 30-40 DKK million.
Normally we operate with an order book corresponding to one week’s production, which makes it difficult to look months ahead. Brexit has further intensified this situation and the limbo on the market is still significant.
We expect to have an estimate of the long-term 2020 objectives when rendering our accounts for Q2.
Contacts:
Mr. John Vestergaard, CFO Mr. Svend Aage Færch Nielsen, CEO
Tel. + 45 97118811 Tel. +45 97118811
egetæpper a/s
Herning, 30 August 2016
