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21-05-2010
Interim report Q1 2010
Today, the Board of Directors of Dantherm A/S has adopted the company’s unaudited interim report for the period 1 January to 31 March 2010.
Business developments
As mentioned in company announcement no. 18/2009 and elaborated on in the annual report for 2009, Dantherm launched a four-point action plan in autumn 2009. The status of the individual items in the action plan is as follows:
- Adaptation to economic conditions: Dantherm has implemented a number of efficiency and restructuring measures and, with the adjustments in production capacity and cost cuts implemented, Dantherm believes that it has established a platform for positive growth in 2010.
- Dantherm Power: As announced earlier, a partnership agreement on the contribution of a total of DKK 40m into Dantherm Power was concluded with Ballard Power Systems Inc. and Danfoss Ventures A/S on 18 January 2010. Dantherm’s future ownership share amounts to 38%.
- Group strategy: On 26 March 2010, Dantherm concluded an agreement with Swedish Nederman Holding AB on the disposal of its most significant activities within the business segment Filtration, and, as announced, the sale was completed effective from 30 April 2010. Following the above-mentioned disposal and considerable restructurings and cutbacks in 2009, the Dantherm group has revised and further developed its strategy within the two business areas Telecom and HVAC (Heating, Ventilation, Air Conditioning).
- Capital structure: As mentioned in the annual report for 2009, a new credit agreement was concluded in March 2010 with the group’s primary credit institutions. The agreement runs until May 2012 after which it will be renegotiated.
Consolidated financial statements 1 January - 31 March 2010
- Revenue in Q1 2010 was DKK 103.0m, down 17.1% compared to the same period in 2009. Revenue in the business area HVAC was on a par with 2009, whereas revenue within the business segment Telecom was lower than last year.
- The group posted an operating loss (EBIT) of DKK 2.3m against a loss of DKK 8.6m in the same period in 2009. Higher contribution ratios and the restructurings implemented in 2009 thus reduced the operating loss despite the lower revenue.
- The group’s net interest-bearing debt amounted to DKK 309.6m as at 31 March 2010 (excl. net interest-bearing debt in the region of DKK 130m associated with the Filtration activities disposed of. Of the interest-bearing debt, finance lease commitments and mortgage debt accounted for DKK 135m.
- The proceeds from the sale and the full effect of the disposal of the Filtration activities on the balance sheet have not yet been recognised.
- Steps have been taken to establish a different ownership structure for the future for Dantherm Filtration France, T&O Stelectric A/S and Danamics ApS, which are presently not comprised by the more focused, future strategy. These companies and the Dantherm Filtration group are classified as discontinuing operations in the interim report.
Outlook for 2010
- As announced earlier, the Dantherm group expects revenue for 2010 to be in the region of DKK 500m with a positive operating profit (EBIT) based on a barely rising market.
Read the company announcement here.