Interim Financial Report for the Period 1 January 30 June 2007

Transcription

1 Interim Financial Report for the Period 1 January 30 June 2007 Brødrene A & O Johansen A/S Rørvang 3 * DK-2620 Albertslund * Denmark Tel: * Fax: CVR (Central Business Register) No.: side 1/5

2 BRØDRENE A & O JOHANSEN A/S s INTERIM FINANCIAL REPORT FOR THE PERIOD 1 JANUARY 30 JUNE 2007 (All amounts are stated in thousands of Danish kroner) Consolidated income statement Q Q2 H H1 Full Year Revenue 726, ,685 1,424,254 1,263,703 2,702,737 Gross profit 213, , , , ,987 Total operating costs (181,171) (151,413) (355,990) (293,145) (607,670) Operating profit 32,003 38,798 58,695 62, ,317 Net financials (3,393) (1,828) (7,659) (3,185) (8,630) Profit before tax 28,610 36,970 51,036 59, ,687 Tax on profit for the period (7,241) (9,720) (12,687) (15,923) (34,026) Profit after tax 21,369 27,250 38,349 43,147 96,661 Profit for the period 21,369 27,250 38,349 43,147 96,661 Consolidated balance sheet Intangible assets 114,494 80,939 76,439 Property, plant and equipment 495, , ,769 Other non-current assets Inventories 475, , ,528 Receivables 486, , ,358 Prepayments Securities 0 8, ,308 2,884 7,403 Cash 9,183 9,147 2,587 Total assets 1,590,256 1,287,701 1,395,468 Equity 596, , ,952 Non-current liabilities 113, , ,935 Current liabilities 880, , ,581 Total equity and liabilities 1,590,256 1,287,701 1,395,468 Consolidated cash flow statement Cash flows from operating activities (38,763) (4,906) 10,116 44,887 28,038 Cash flows from investing activities (74,443) (23,853) (89,607) (34,759) (162,686) Cash flows from financing activities 117,152 24,375 86,402 (9,584) 128,309 Net cash flows for the period 3,946 (4,384) 6, (6,339) Average number of full-time employees Holding of treasury shares (nominal value) 1,298 1,298 1,298 Investments in property, plant and equipment 45,579 34, ,056 Financial ratios Gross profit ratio (%) Profit margin Return on investment Return on equity Solvency ratio Book value per share 1, , ,024 Market price 1,674 1,402 1,674 1,402 1,674 Price Earnings Basic (P/E Basic) Earnings per share (EPS Basic) Diluted earnings per share (EPS-D) The financial ratios have been calculated on the basis of the respective periods. side 2/5

3 BRØDRENE A & O JOHANSEN A/S s INTERIM FINANCIAL REPORT FOR THE PERIOD 1 JANUARY 30 JUNE 2007 Equity specification 2007: Share capital Other reserves Foreign currency translation reserve Retained earnings Proposed dividends Total Equity at 1 January , , ,464 26, ,952 Net profit for the period , ,349 Exchange rate adjustments relating to foreign group enterprises 0 0 (400) 0 0 (400) Total comprehensive income 0 0 (400) 38, ,949 Dividends paid (26,220) (26,220) Dividends on treasury shares Equity at 30 June , ,000 (132) 339, ,278 : Share capital Other reserves Foreign currency translation reserve Retained earnings Proposed dividends Total Equity at 1 January 57, ,000 (440) 229,530 21, ,750 Net profit for the period , ,147 Exchange rate adjustments relating to foreign group enterprises Total comprehensive income , ,532 Dividends paid (21,660) (21,660) Dividends on treasury shares Equity at 30 June 57, ,000 (55) 273, ,115 side 3/5

4 BRØDRENE A & O JOHANSEN A/S s INTERIM FINANCIAL REPORT FOR THE PERIOD 1 JANUARY 30 JUNE 2007 Today the Supervisory Board of Brødrene A & O Johansen A/S has discussed and approved the Group s interim financial report for the first half of The consolidated financial statements include Brødrene A & O Johansen A/S, the Swedish branch AO-MAVAB, and the wholly owned subsidiaries AO Invest A/S, E-byg.com A/S and Vaga Tehnika Eesti OÜ, Estonia. The results of the operations of Ervex AB are included in the consolidated financial statements as of 1 April The Group s interim financial report for the first half of 2007 has been prepared in accordance with the recognition and measurement provisions of the International Financial Reporting Standards as adopted by the EU and additional Danish disclosure requirements for interim financial reports of listed companies. The accounting policies used in the preparation of this interim financial report are consistent with those adopted in the annual report for. This interim financial report has not been audited. Summary The AO Group s revenue for the first half of 2007 increased by 13% to a total of DKK 1,424.3m against DKK 1,263.7m for the same period last year. The Group realised a profit before tax of DKK 51.0m, compared to DKK 59.1m for the six months ended 30 June. For 2007, the Group reiterates its expectations for a pre-tax profit of approximately DKK 110m as stated in stock exchange announcement no. 13 of 19 June Comments on the Interim Financial Report for the First Half of 2007 From 1 January to 30 June 2007 the AO Group realised sales of DKK 1,424.3m against DKK 1,263.7m in the same period last year. The increase in revenue is mainly attributable to the first quarter. In the second quarter of 2007 consolidated revenue increased by 7%, part of which is attributable to the acquisition of Ervex AB on 1 April Especially in the latter half of the second quarter, the Group s sales in Denmark were stagnant due to a decline in the level of activity within the building industry. The gross profit increased from DKK 355.4m to DKK 414.7m. The gross profit increase is attributable partly to a growth in revenue and partly to an increase in the gross profit ratio of 1% to a total of 29.1%. As stated in the interim financial report for the first quarter of 2007, the investment in the new logistics centre at Horsens resulted in increased operating costs and interest expenses. Among other things, substantial costs were incurred in connection with the occupancy of the logistics centre. In addition, costs for the implementation of a new IT platform for the logistics area were incurred. The increase in costs from DKK 293.1m to DKK 356.0m is also attributable to higher staff, administration and transport costs associated with the growth in revenue. In response to the changed level of activity, actions have been taken to adjust expenses to the prevailing market conditions. It is expected that the full effect of these actions will be recognised in the first quarter of For the first six months of 2007, the Group realised a profit before tax of DKK 51.0m, compared to DKK 59.1m reported for the same period in. The results are in line with expectations. At 30 June 2007 the Group s balance sheet totalled DKK 1,590.3m against DKK 1,287.7m the year before. Property, plant and equipment increased by DKK 137.9m as a result of investments and property renovations. The occupancy of the logistics centre and the implementation of a new IT system resulted in an increase in inventories amounting to a total of DKK 107.3m. Receivables increased by a total of DKK 22.6m as a result of the growth in revenue. Finally, part of the increase in the balance sheet total is attributable to the acquisition of Ervex AB. The Group s net cash flows from operating activities for the first half of 2007 amounted to DKK 10.1m against DKK 44.9m in the same period last year. The decline is attributable to more capital being tied up in inventories and a drop in accounts payable. Investments for the period totalled DKK 89.6m, and of this amount, DKK 52.8m was from the acquisition of Ervex AB. In the same period last year, investments totalled DKK 34.8m. side 4/5

5 BRØDRENE A & O JOHANSEN A/S s INTERIM FINANCIAL REPORT FOR THE PERIOD 1 JANUARY 30 JUNE 2007 In view of the above as well as dividend distribution, the net cash flows from operating, investing and financing activities for the period amounted to a positive balance of DKK 6.9m against a positive balance of DKK 0.5m in. Change in the Executive Board Today, Senior Sales Manager and member of the Executive Board Mr Henrik Krag has retired from his job on health grounds. Mr Niels A. Johansen, Chief Executive Officer, will undertake his tasks, until a replacement for Mr Henrik Krag has been found. Outlook In the Group s stock exchange announcement no. 13 of 19 June 2007 the Management stated that the revenue growth for the second quarter of 2007 was not as high as expected, and that this disappointing development would continue for the rest of The Management believes that the slowdown in the market will continue for the remaining part of According to plan, substantial costs relating to the implementation of the new IT platform and the development of the logistics area will continue to be incurred for the rest of 2007 and in Against this background, the Management reiterates its expectations for a pre-tax profit for 2007 of approximately DKK 110m as stated in stock exchange announcement no. 13 of 19 June Statement by the Executive and Supervisory Boards Today the Executive and Supervisory Boards have discussed and approved the interim financial report of Brødrene A & O Johansen A/S for the period 1 January 30 June The interim financial report is unaudited and has been prepared in accordance with the recognition and measurement provisions of the International Financial Reporting Standards as adopted by the EU and additional Danish disclosure requirements for interim financial reports of listed companies. We consider the accounting policies used to be appropriate. Accordingly, the interim financial report gives a true and fair view of the Group s assets, liabilities and financial position at 30 June 2007 and of the results of the Group s operations and cash flows for the period ended 30 June Additional Information This interim financial report is available in Danish and English. In case of doubt, the Danish version shall apply. Executive Board: Albertslund, 28 August 2007 Niels A. Johansen Chief Executive Officer Jens Johansen Supervisory Board: Henning Dyremose Michael Kjær René Alberg Chairman of the Board Deputy Chairman Thomas Drue Carsten Jensen Jens Johansen Niels A. Johansen Preben Damgaard Nielsen Contacts: Niels A. Johansen/Bettina Winther Telephone: Announcement No.17/2007 to the OMX Nordic Exchange Copenhagen A/S side 5/5