‘DLH has achieved clear and positive results from the readjustments we set in motion in December 2010. The half-year results show both absolute and relative improvements to largely all our financial ratios despite an unchanged turnover level on the year. The implementation of our strategy has progressed significantly and we are now ready to roll out supplementary initiatives over the next quarters. These include the amalgamation of a number of inventory and sales functions in Scandinavia and the expansion of DLH’s Asian activities in Hong Kong, which will impact on the result by approx. DKK 15-20 million per annum and reduce capital tie-up by approximately DKK 60 million,’ says CEO Kent Arentoft.
• Turnover for the first half of the year was DKK 1,630 million which, as expected, is on a par with last year. The half year results show both absolute and relative earnings growth in largely all DLH’s regions.
• The Group’s overall profitability improved over the half-year:
- EBIT was DKK 42 million against DKK 39 million last year.
- The improved profitability should not least be seen in the light of the fact that 2010 benefitted from both cyclical gains on inventories as well as certain non-recurring income.
- The EBIT margin increased to 2.6% from 2.4%.
- Return on invested capital increased to 7.6% from 5.3%.
- NWC/Sales ratio fell to 30.6% from 39.5%
• Pre-tax profits of DKK 21 million against last year’s DKK 8 million.
• Following a capital injection in April, the Group now has a solvency rate of 45% and net interest bearing debt of 4.8 times EBITDA against 23% and 11.2 times last year.
• Over the next quarters, the company will implement further initiatives in Scandinavia aimed at increasing efficiency and reducing costs and capital tie-up. The measures will provide annual gains of DKK 10-15 million and reduce capital tie-up by approximately DKK 60 million.
• DLH is combining and expanding its Asian Global Sales activities in Hong Kong, which will result in annual cost savings of DKK 5-10 million.
Expectations for a turnover of DKK 3.3 billion and an EBIT of around DKK 60 million are maintained despite the greater economic uncertainty in Europe and the US.
Please direct any inquiries relating to the announcement to President and CEO Kent Arentoft on telephone no. +45 43 50 01 01.
