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30-03-2010
Annual accounts announcement 2009
Dantherm has today published Annual accounts for 1 January - 31. December 2009
The board of Directors of Dantherm A/S today considered and approved the annual report 2009 of Dantherm A/S.
Economic development in 2009
•The group’s revenue totalled DKK 1,340.1m in 2009, down 33.9% or DKK 687.3m relative to last year.
• As a consequence of the economic developments in 2009 there have been implemented a series of restructuring measures which impact the result with DKK 110.4m.
• Operating loss before special items totalled DKK -71.1m and operating loss after special items totalled DKK -181.5m against an operating profit last year on DKK 41.4m.
• Dantherm group saw an unsatisfactory loss before tax of DKK 212.3m compared to a profit before tax in 2008 of DKK 5.4m.
• Result after tax is negative affected by DKK-70.1m concerning Dantherm Power which is classified as discontinued operations. The operating profit/loss includes, a net loss with no cash-flow effect of approx. DKK 40m relating to impairment of primarily development projects.
• The revenue and the result before tax corresponds to the most recently announced outlook for 2009 total revenue in the region of DKK 1,350m and a negative result before tax in the region of DKK 265m.
• The group’s equity amounted to DKK 177.3m excluding minority interests. With the balance sheet total of DKK 1,055.5m, this corresponds to an equity interest of 16.8%.
• At the end of last year, invested capital in Dantherm group totalled DKK 626.1m. Compared with last year, the funds tired up fell by DKK 287.1m, which is mainly attributable to a decrease in inventories and receivables.
• The cash flows from operating activities were positive at DKK 76.9m against DKK 164.5m last year.
Adapting the capital structure
• During 2009, Dantherm has been in close dialogue with the group’s credit institutions on future financing. In March 2010, a new credit agreement has been signed with the group’s primary credit institutions which are valid until May 2012, when the agreement will be renegotiated.
Further development of group strategy
• After the significant restructurings and cutbacks which were implemented in 2009, in developing the strategy further the aim is to focus on growth opportunities for the group’s various products and markets.
• Dantherm Air Handling operates within two diverse business areas which are bound together by technological synergies:
o Air-conditioning systems for global network suppliers and local operators within the telecom industry.
o HVAC (Heating, Ventilation, Air Conditioning) products and solutions for the European market. The primary product groups within HVAC comprise dehumidification, ventilation and stationary and mobile cooling and heating equipment.
• Dantherm has a strong market position in both main business areas, and there is considerable scope for growth for the group.
• The future strategy for the Air Handling activities focuses on:
o Regaining a larger share of the market for air-conditioning systems for global network suppliers within the telecom industry through customer focus and combined sales and development efforts from the Air Handling base which has been established in China.
o Increasing sales efforts for air-conditioning systems to local network operators within the telecom industry in Europe, the USA and Asia.
o Increasing market share within selected HVAC segments in Europe through a focused market approach and based on the European Air Handling companies.
o Optimising the supply chain for the two main business segments, among other things through increased sourcing from China and consolidating production.
Events after balance sheet date
• Dantherm Power:
As mentioned in company announcement no. 1/2010 of 18 January 2010, Dantherm A/S entered into an agreement concerning the continued operation of Dantherm Power A/S in partnership with the Canadian company Ballard Power Systems Inc. and the Danish company Danfoss Ventures A/S. Following the agreement, Dantherm will have a future ownership share of 38%, and the activities have consequently been classified as discontinued activities in the 2009 Annual Reports.
• Dantherm Filtration:
As mentioned in company announcement no. 2/2010, Dantherm A/S signed an agreement on 26 March 2010 with the Swedish company Nederman Holding AB on the divestment of the most significant activities within the business segment Filtration with handover by the end of April 2010 at the latest. The sale covers Dantherm Filtration Holding A/S with subsidiaries except the French subsidiary Dantherm Filtration SAS, for which another, future oriented ownership structure is sought. The sales price for Dantherm Filtration Holding A/S on a debt-free basis is DKK 280m, which is expected to result in a gain for accounting purposes for Dantherm A/S of approx. DKK 10-20m in 2010.
Outlook for 2010
• In 2010, focus is directed at ensuring earnings and positive cash flows as well as implementing the strategy for Air Handling. This will happen on the basis that:
o Most of the necessary restructurings in Dantherm are now in place.
o A solution for Dantherm Power has been found which ensures development within the company and thereby a possible return on the investments made by Dantherm.
o Dantherm has entered into an agreement with the group’s primary credit institutions concerning future financing.
The Dantherm group expects that revenue in 2010 will be on a par with DKK 500m with a positive operating profit (EBIT) based on a barely rising market.
Download Annual Report 2009 here.