Year-End Report (Jan - Dec, 2010)

Gothenburg, Sweden, 2011-02-24 09:00 CET (GLOBE NEWSWIRE) --

January – December, 2010
> Organic growth 10 percent for the Group*
> Continued good profitability in North America
> Positive development in Europe - organic growth 16 percent* and positive EBITDA
> EBITDA after adjustment for extraordinary items** SEK 37 million
> Cash flow from operating activities SEK 27 million

Full Year (January – December 2010)
• Sales amounted to SEK 227.0 million (214.1)
• EBITDA amounted to SEK 29.8 million (28.2), equivalent to an EBITDA margin of 13.0 percent (12.6)
• Cash flow from operating activities before changes in working capital amounted to SEK 26.8 million (26.7)
• Net earnings amounted to SEK -0.6 million (-4.5)***
• Earnings per share after dilution amounted to SEK -0.00 (-0.02)
• The Board will propose to the Annual General Meeting that no dividend shall be paid out for 2010 (SEK 0)

Reporting Period (October – December, 2010)
•Sales amounted to SEK 59.4 million (52.1)
• EBITDA amounted to SEK 5.9 million (2.5), equivalent to an EBITDA margin of 9.8 percent (4.6)
• Net earnings amounted to SEK -2.6 million (-4.7)***
• Earnings per share after dilution amounted to SEK -0.01 (-0.02)

* For comparable units and in local currencies.
** Extraordinary items includes costs related to the close down of EWJ Teknik A/S in Denmark and transfer of operations to Sweden (approx. SEK 4 million) and start-up expenses in the new operations in Peru (approx. SEK 3 million).
*** Please see the EBITDA to net earnings bridge on page 4.

Note. Amortization on capitalized development costs have been reclassified in the financial statements, please see page 7 "Accounting and Valuation Policies"

Continued Good Profitability in North America and Growth in Europe
The North American business continues to deliver good profitability with an EBITDA margin of 28 percent. In 2010, we have opened the Group’s first vehicle inspection station in South America where we successfully combined SysTech’s inspection program expertise and technology with Opus test equipment technology. During the year, we continued to improve customer relations and won a number of smaller new contracts. For 2011, our focus continues on growth in the U.S. market and on exporting SysTech’s technology and knowledge to select international markets. In mid 2011 we expect EPA’s (Environmental Protection Agency) final ruling on new ground level ozone standards, which should positively affect the U.S. emission testing market long term.

Europe reports an organic growth of around 16 percent for the full year 2010 and similarly for the fourth quarter. EBITDA, adjusted for extraordinary items, improved by as much as SEK 17 million compared to 2009 as a result of the implemented cost saving programs in combination with increasing sales*. The demand for the company’s products and services continue to increase and we see several interesting markets such as Italy, the UK, Holland and Serbia where the test lanes for vehicle inspection shall be replaced or updated in the coming years. In addition, we see expansion opportunities in markets where vehicle inspection is being expanded, such as in Russia. For 2011, focus is to continue growth, while profitability should increase further now that the organization is cost-optimized.

The deregulation of the vehicle inspection market in Sweden has gained momentum and we see that several companies are starting to act in the market. This may generate opportunities for both the equipment and services segment going forward.

For the company as a whole, we see growth in parallel with increasing profitability. The operations delivered a total EBITDA of around SEK 37 million before non-recurring costs. The close down of our operations in Denmark cost about SEK 4 million and the start-up costs in Peru amounted to approximately SEK 3 million. The cash flow from operating activities amounted to approximately SEK 27 million, and we now only have roughly two years left until the acquisition loans related to SysTech are fully repaid and all of SysTech’s IP are fully amortized**. When the amortization is complete we will also see net income and earnings per share being significantly improved if the business develops in accordance with plan.

Gothenburg, Sweden, in February, 2011

Magnus Greko
President and CEO

* Extraordinary items in Europe includes the following:
2010: Costs related to the close down of EWJ Teknik A/S in Denmark and transfer of operations to Sweden (approx. SEK 4 million).
2009: The negative goodwill of approx. SEK 6 million following the takeover of BIMA, and which was accounted for as income during the year.
** Please see the EBITDA to net earnings bridge on page 4.

Notable Events During and After the Year

Success for Opus at the AUTO Exhibition 2011 and a New Service Contract Signed with Bilia
In January 2011, the Opus Group participated at the AUTO Exhibition 2011 in Gothenburg, Sweden, with an impressive display. The event proved very successful. Opus wholly-owned subsidiary, J&B Maskinteknik AB, also signed a service contract with Bilia Personbilar AB for all workshops in Region West and Region South.

Nomination Committee prior to the Annual General Meeting 2011
On November 19 2010, Opus announced the appointed members of the Nomination Committee prior to the Annual General Meeting 2011:

- Göran Nordlund, as Chairman of the Board in Opus
- Jörgen Hentschel, representing AB Kommandoran
- Lothar Geilen, representing himself
- Martin Jonasson, representing the Second AP Fund
- Bengt Belfrage, representing Nordea Funds

Martin Jonasson has been elected Chairman of the Nomination Committee. The Nomination Committee has been appointed in accordance with the instructions adopted at the Annual General Meeting 2010.

Opus Ends Market Maker Agreement
On November 17, 2010, Opus announced that the company has ended its agreement with Remium as liquidity provider (Market Maker) for the trading in the Opus share. Trading with liquidity guarantee ended 2010-11-19.

J&B Signs Subcontractor Agreement with YIT
On October 7, 2010, Opus announced that its wholly-owned subsidiary, J&B Maskinteknik AB, has signed an agreement with YIT Sverige AB regarding calibration and service of all test equipment at Bilprovningen.

The agreement runs until December 31, 2012 with the possibility of three two-year extensions. The contract value is estimated to approximately SEK 15 million excluding any extensions.

Annual General Meeting 2010
The Annual General Meeting was held in Opus on May 26, 2010. Minutes from the meeting are available on Opus website where also the other material from the meeting can be found.

SysTech Wins Idaho Contract for Vehicle Emission Inspection Program
On April 8, 2010, Opus announced that its wholly-owned subsidiary SysTech International, LLC, has been awarded a contract by the Idaho Department of Environmental Quality (DEQ) to design, implement and operate the State of Idaho vehicle emission inspection program. The program started on June 1, 2010. Approximately 65,000 vehicle inspections will be performed each year in the new biennial program. The contract allows for neighbouring Ada County (appr. 120,000 annual inspections) and any other counties that do not meet EPA air quality limits to join the program in the future. The initial contract period is five years. Under the contract, SysTech will collect 10-11 dollars per inspection and remit a portion to DEQ and the inspection station subcontractors.

SysTech Launches Vehicle Inspection Operations in Peru
On March 19, 2010, Opus announced that its wholly-owned subsidiary, SysTech International, LLC, has sought and received permission from the Ministry of Transport & Communication (MTC) in Peru to carry out vehicle inspection in the country. The company opened its first vehicle testing station on November 13, 2010, and expects a rapid expansion on the Peruvian vehicle inspection market, which the company estimates to total approximately USD 50 million per annum.

SysTech Expands For-Hire Vehicle Inspection Program in New York
On February 23, 2010, Opus announced that its wholly-owned subsidiary SysTech International, LLC, has expanded the For-Hire inspection program in New York City to include testing of all For-Hire Vehicles in addition to testing medallion taxis. Approximately 40,000 limousines will be affected by the expanded program thus significantly increasing the number of vehicles inspected at the New York City Taxi and Limousine Commission (NYCTLC) Woodside inspection facility.

Opus Bima Establishes Sales Activities on the Danish Market
On February 10, 2010, Opus announced that its wholly owned subsidiary, Opus Bima AB, is setting up sales activities on the Danish market.

The U.S. EPA Proposes the Strictest Health Standards to Date for Smog
According to a January 7, 2010 press release issued by the United States Environmental Protection Agency (EPA), the agency has proposed new ground-level ozone standards. The EPA is now awaiting public comment. The final standards are planned to be issued during 2011.

Sales and Results

Reporting Period
Sales for the current reporting period amounted to SEK 59.4 million (52.1). Organic growth was approx. 14 percent (-26)*. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to SEK 5.9 million (2.5). The EBITDA margin equated to 9.8 percent (4.6).

Full Year
Sales for the current financial year amounted to SEK 227.0 million (214.1). Organic growth was approx. 10 percent (-22)*. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to SEK 29.8 million (28.2). The EBITDA margin amounted to 13.0 percent (12.6).

Acquired Intellectual Property (IP), which includes patents, software and systems, are amortized over five (5) years which affects the Group’s net earnings negatively. In connection with the SysTech acquisition in April, 2008, the company acquired IP of USD 12.3 million. Amortization relating to these IP amount to approx. SEK 18 million (USD 2.5 million) per year. For this reason, the company uses EBITDA, which excludes amortization, as a key performance measurement of the Groups profitability.

* External net sales, for comparable units and in local currencies. Please also see page 7 "Translation of Foreign Operations".

Business Areas
The Opus Group consists of three geographical business areas based on the Group’s legal entities, each with a business area manager. Reporting to the Group Management Team, the Board of Directors and the stock market as well as other external stakeholders is in accordance with this structure. The three business areas are: Europe, North America and Asia. For a more detailed description of the business areas, please see Opus Annual Report 2009.

Europe
Sales for the current reporting period amounted to SEK 36.5 million (31.4). Organic growth was approx. 16 percent (-33)*. EBITDA amounted to SEK 0.8 million (-5.0), equivalent to an EBITDA margin of 2.0 percent (neg.).

Sales for the current financial year amounted to SEK 130.9 million (113.6). Organic growth was approx. 16 percent (-33)*. EBITDA amounted to SEK 2.6 million (-4.4), equivalent to an EBITDA margin of 2.0 percent (neg.).

Costs related to the close down of EWJ Teknik A/S in Denmark and transfer of operations to Sweden have affected EBITDA negatively by approx. SEK 4 million in the current financial year. During 2009, the negative goodwill of SEK 5.8 million which arose following the takeover of BIMA was accounted for as income during the first quarter and is included in the line item "Other exteral operating income" in the income statement.

The average number of employees during the current financial year was 58 (61).

North America
Sales for the current reporting period amounted to SEK 22.9 million (20.7). Organic growth was approx. 12 percent (-13)*. EBITDA amounted to SEK 5.1 million (6.9), equivalent to an EBITDA margin of 22.4 percent (33.2).

Sales for the current financial year amounted to SEK 96.2 million (100.5). Organic growth was approx. 1 percent (-4)*. EBITDA amounted to SEK 26.8 million (32.3), equivalent to an EBITDA margin of 27.9 percent (32.1).

The table below shows external revenue and EBITDA in local currency (USD). EBITDA for the current financial year was USD 0.5 million lower than in the previous year (USD 3.7 million compared to 4.2 million). This primarily relates to start-up expenses in the new operations in Peru (approx. USD 0.4 million, equivalent to approx. SEK 3 million).

The average number of employees during the current financial year was 100 (87).

Asia
EBITDA for the current reporting period amounted to SEK 0.3 million (0.5), equivalent to an EBITDA margin of 18.2 percent (24.2).

EBITDA for the current financial year amounted to SEK 1.1 million (0.3), equivalent to an EBITDA margin of 20.7 percent (5.2).

The average number of employees during the current financial year was 11 (14).

Note. External sales to the Asian market are currently invoiced from Business Area Europe and amounted to SEK 0.6 million (0.8) during the current reporting period and SEK 2.7 million (2.1) during the current financial year.

* External net sales, for comparable units and in local currencies. Please also see page 7 "Translation of Foreign Operations".

Customers
Opus customers are primarily government agencies (counties, states etc.), the automotive industry, vehicle garages, and vehicle inspection companies (state and privately owned).

Opus has no individual customers which represent more than 10 percent of the Group’s turnover.

Investments
Investments during the current financial year consist mainly of ongoing development projects, investments in the new operations in Peru, and the implementation of the newly won vehicle inspection management contract in the state of Idaho.

Dividend
The Board will propose to the Annual General Meeting that no dividend shall be paid out for 2010 (SEK 0).

Financial Position and Liquidity
The equity ratio amounted to approximately 74.3 percent (72.2) at the end of the period. The cash flow from operating activities before changes in working capital was SEK 27.4 million (26.7) during the current financial year. Cash and cash equivalents at the end of the period equated to SEK 15.3 million (15.2) and unused credit facilities amounted to SEK 6.5 million (5.5) at the end of the period.

Taxes
The tax expense for the period is calculated using the current tax rate for the Parent company and each subsidiary. Temporary differences and existing fiscal loss carry-forwards have been taken into account.

Employees
The average number of FTEs (full-time equivalents) in the Group was 169 (162) during the current financial year.

Parent Company
The Parent company’s sales during the current reporting period amounted to SEK 14.4 million (14.4) and profit after financial items to SEK -4.8 million (-3.2).

The Parent company’s sales during the current financial year amounted to SEK 58.2 million (42.1) and profit after financial items to SEK -4.1 million (-5.1).

Related Parties
Following the close down of EWJ Teknik A/S, which operations were conducted in facilities leased from a company controlled by Henrik Wagner Jörgensen, Business Area Manager Europe, Opus no longer has any transactions nor agreements with related parties post December 14, 2010.

Annual General Meeting 2011
The Annual General Meeting will take place on Wednesday May 25, 2011, in Gothenburg, Sweden. Shareholders wishing to have items addressed at the Annual General Meeting must submit a written request to the Board of Directors not later than April 6, 2011. The request shall be addressed to the Board of Directors but be sent to the company’s address.

Accounting and Valuation Policies
This report has been prepared in accordance with IAS 34, Interim Financial Reporting. The group accounting has been prepared in accordance with International Financial Reporting Standards, IFRS, as approved by EU, and the Swedish Annual Accounts Act. The interim report for the Parent company has been prepared in accordance with the Swedish Annual Accounts Act and recommendation RFR 2.3.

The same accounting and valuation policies were applied as in the 2009 Annual Report. New standards and interpretations effective from January 1, 2010 have not had any significant impact on the Group’s financial statements.

Opus has per 31 December, 2010, decided to report amortization on "Capitalized development costs" within "Depreciaton and amortization" in the income statement, compared to previous periods in which these have been included in the line "Operating expenses". This due to that these have become material and to improve transparency to investors. Previous periods have been adjusted for this to enable comparison. The adjustment affects the Group figures as well as the figures for Opus Prodox AB (Parent company), EWJ Teknik A/S (subsidiary) and business area Europe. Please see page 9 and 16 for further details.

Accounting Estimates and Assumptions
The preparation of financial reports in accordance with IFRS requires the Board of Directors and Management to make estimates and assumptions that affect the application of accounting principles and the carrying amounts of assets, liabilities, revenue and expenses. Actual outcomes may deviate from these estimates.

Translation of Foreign Operations
Assets and liabilities in foreign entities, including goodwill and other corporate fair value adjustments, are translated to Swedish kroner at the rate prevailing on the balance sheet date, meanwhile all items in the income statement are translated using an average rate for the period.

Essential Risks and Uncertainty Factors
Opus Prodox AB (publ) and the Opus Group companies are through their activities at risk of both financial and operational nature, which the companies themselves may affect to a greater or lesser extent. Within the companies, continuous processes are ongoing to identify possible risks and assess how these should be handled.

The companies’ operations, profitability and financial conditions are directly related to investments within the automotive industry and regulations within environmental and safety testing of vehicles. With the recent dramatic development of the global economic climate, there is a general insecurity, which in the short term results in an increased risk and uncertainty in respect of Opus sales, profitability and financial condition, primarily in the business segment Europe, which is more dependent of the equipment business. In North America, the Group runs vehicle inspection programs through long-term contracts with government agencies. There is a risk of early contract termination which would affect the Group’s financial position negatively. Furthermore, the Group has a currency risk through its translation exposure of the operations in the U.S. A detailed description of the Parent company and subsidiaries’ risks and risk management are given in Opus Annual Report 2009.

Outlook
In the North American vehicle inspection business unit, we see a new year with many opportunities where a number of state and county contracts in the U.S. emission testing market are scheduled to come out for bid. In addition, there are a number of interesting new markets outside the U.S., where the demand for environmental and safety testing of vehicles is increasing.

In Europe, focus for 2011 is to continue growth and improve profitability. During the second half of 2010 demand increased significantly for the company’s products and we think this trend will continue in 2011. In addition to that, there are several law-driven programs where vehicle inspection activities are to be updated or expanded. Our organization, with its own products developed in Europe and the United States, and with its own production in China, creates a competitive advantage that we shall use internationally.

The deregulation of the Swedish vehicle inspection market has been slow in 2010 but now several companies are starting to act and new vehicle inspection stations are planned. This may provide an opportunity to supply equipment and related services, such as service and calibration, but also an opportunity to establish vehicle inspection activities on the Swedish market.

This outlook replaces the one which was presented in the interim report for the third quarter 2010.

Opus does not provide financial forecasts.

Financial Information
• May 25, 2011, Interim Report (January - March, 2011)
• May 25, 2011, Annual General Meeting 2011
• August 25, 2011, Interim Report (January - June, 2011)
• November 24, 2011, Interim Report (January - September, 2011)
• February 23, 2012, Year-end report 2011

The Annual Report 2010 is expected to be published on or before May 4, 2011.
The Annual Report will be made available to the public on the company’s website www.opus.se.

This report has been subject to auditors’ review.

Gothenburg, Sweden, February 24, 2011

Magnus Greko
President and CEO

Contact Information
Opus Prodox AB (publ), (org no 556390-6063)
Bäckstensgatan 11C
SE-431 49 Mölndal, Sweden
Phone: +46 31 748 34 00
Fax: +46 31 28 86 55
E-mail: info@opus.se
www.opus.se

For any questions regarding the year-end report, please contact Magnus Greko, President and CEO, +46 31 748 34 91 or +46 705 58 45 91.

Opus Certified Adviser
Thenberg & Kinde Fondkommission AB
Box 2108
SE-403 12 Gothenburg, Sweden
Phone: +46 31 745 50 00

Opus Prodox AB (publ) in Brief
The Opus Group is in the business of developing, producing and selling products and services within Automotive Test Equipment, Vehicle Inspection Systems and Fleet Management for the global market. The products include emission analyzers, diagnostic equipment, and automatic test lanes. Services include management of mandatory vehicle inspection programs. The Group sells its products and services in more than 50 countries all over the world and currently has around 170 employees. The turnover for 2010 was roughly SEK 230 million. Opus’ share is listed on First North Premier (NASDAQ OMX) under the ticker OPUS.

CONVENIENCE TRANSLATION - THE SWEDISH VERSION SHALL PREVAIL
This is a non-official translation of the Swedish original version which has been developed in-house. In case of differences between the English translation and the Swedish original, the Swedish text shall prevail.