HALF-YEAR 2010 REPORT

Transcription

1 HALF-YEAR 2010 REPORT 6 months ending June 30, 2010 Contributing to saving lives!

2 Shareholders perspective: MANAGEMENT REPORT 1 ST SEMESTER 2010 The Semester saw the end of the Takeover bid process by Eckert & Ziegler, which now owns 72% of all outstanding shares and 78.2% of voting rights (when acting in concert with SMI Steglitz) over IBt. The semester saw also a change in the management of the Group, with the resignation of François Blondel and the appointment of Dr. Edgar Löffler and Dr. Gunnar Mann, each in his capacity as Managing Director. Following its Annual General Shareholders meeting held on June 7, 2010, IBt Bebig has named four new Board members and Deloitte as the new Auditor. The Board of Directors is composed of: Dr. Andreas Eckert (Chairman); Dr. Edgar Löffler and Dr. Gunnar Mann (Managing Directors); Eckert & Ziegler Strahlen-und Medizintechnik AG represented by Dr. André Heß; SMI Steglitz Medinvest UG, represented by Frank Perschmann; Holger Bürk and Hans-Jörg Hinke (non-executive Directors); Martin Hölscher, Dick Schoolenberg and Edwin Vandermeulen (Independent Directors). Operating point of view Permanent Brachytherapy (largest products line): IBt Bebig signed early March a four years contract with the IMO group in Spain, to supply IsoCord a unique needle loading station that enables the practitioner to cut the seed chain in a safe and convenient way. The IMO Group is the largest network of cancer treatment centers using radiotherapy techniques in Spain. In May, IBt Bebig renewed and secured for three years a contract to supply brachytherapy seeds (also known as curietherapy in France) to several cancer centers of the Fédération Nationale des Centres de Lutte Contre le Cancer in France. This exclusive supplier s agreement has an annual value representing more than 3% of the revenues of the group. Mid-June, IBt Bebig showed some first results on a radiobiological research program for monotherapy of early stage breast cancer utilizing permanent implant brachytherapy. For the patient, there is clearly a practical advantage to be treated by brachytherapy rather than by EBRT: a reduction of treatment time. A brachytherapy procedure is done in one day, while for EBRT patient needs to come 25 to 40 consecutive days for treatment sessions. And early July, the group announced that a first patient was treated for a brain tumor using IsoSeed. Brachytherapy offers noticeable clinical and economical advantages over conventional radiotherapy techniques when treating brain cancers. Half-Year 2010 Report IBt Bebig August 3, 2010 Page -2/8

3 Sales coming from Permanent Brachytherapy products were close to last year level, showing an ongoing demand for this very effective treatment option. Revenues generated by the Russian project during the first six months of 2010 were lower than anticipated as the timeline of the project has been rescheduled. This rescheduling was made on request by the Russian partner and caused by delays in their setting-up of the planned facility. Operating point of view Temporary Brachytherapy: Sales coming from Temporary Brachytherapy products recovered during the second quarter of 2010, but revenues are still down during the first semester 2010 compared to the first six months of This decline is caused by the delayed decisions in many hospitals for new projects during the most critical phase of the world economical crisis. Whereas these projects affect the current revenues, the company anticipates revenues to reach the level of 2009 for these Temporary Brachytherapy products. IBt Bebig is the sole supplier of Ru-106 (Ruthenium 106) ophthalmic plaques: mostly used for the treatment of uveal melanoma, retinoblastoma and melanoma of the iris. The plaques consist of a thin film of Ru-106, a beta emitter, encapsulated within pure silver sheets with a total thickness of only 1 mm. During the first six months of 2010, revenues generated by the ophthalmic plaques were above expectation. Outlook Taking into account the current results and the anticipated course of business in the second half of the year, the management of IBt Bebig expects that revenue for the full year 2010 will be at the level of EUR 30 million. The EBIT margin will remain stable compared to With the world economy recovering, on the longer term the Group looks towards its future development and growth with clear optimism. Half-Year 2010 Report IBt Bebig August 3, 2010 Page -3/8

4 CONDENSED CONSOLIDATED KEY FIGURES Income Statement Note 1H H-2009 Growth (EUR '000) (EUR '000) (%) Sales 1 14,916 16, % Cost of sales 2 5,920 6, % Gross profit 3 8,996 10, % Gross margin (%) 60.3% 61.1% Sales & Marketing expenses 2,4 3,996 3, % General & Administration expenses 4 2,493 2, % Research & Development expenses % EBITDA 3,856 4, % EBITDA margin (%) 25.9% 25.4% EBIT 5 2,636 3, % EBIT margin (%) 17.7% 19.6% Interests 6 (172) (279) Income tax (792) (77) Net income 7 1,671 2, % Net margin (%) 11.2% 17.5% Number of shares at June 30th. 17,554,354 17,554,354 Earnings per share EPS (EUR/share) % EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization EBIT: Earnings Before Interest, Taxes Cash Flow Note June 30, 2010 June 30, 2009 (EUR '000) (EUR '000) Profit/loss for the semester 1,671 2,884 Non-cash adjustment 1,524 1,010 Net change in working capital (3,389) (3,573) Cash flow from operating activities (194) 321 Cash flow from investing activities (1,083) (964) Cash flow from financing activities 10 (2,049) 73 Net cash change (3,326) (570) Cash and cash equivalents - at beginning of period 9,605 2,305 Cash and cash equivalents - at end of period 6,279 1,735 Half-Year 2010 Report IBt Bebig August 3, 2010 Page -4/8

5 Shareholders Equity (EUR '000) Capital Issue Premium Reserves Translation differences Equity Balance as of December 31, ,875 50,186 (27,802) ,430 Result of the period 1,671 Translation differences (77) Capital increase Balance as of June 30, ,875 50,186 (26,131) 94 35,024 Balance Sheet Note June 30, 2010 December 31, 2009 (EUR '000) (EUR '000) Intangible assets 23,505 23,597 Property, plant and equipment 9,346 9,411 Financial investments (equity method) Deferred tax assets 8,329 8,538 Other assets 10 1, Total non-current assets 43,242 42,546 Cash and cash equivalents 9 6,279 9,605 Trade accounts receivables 8,354 7,398 Inventories 4,686 3,845 Other assets ,928 Total current assets 19,952 23,776 TOTAL Assets 63,195 66,322 Shareholders equity 8 35,024 33,430 Long-term portion of borrowings and finance lease obligations 10 10,143 11,760 Other non-current liabilities 5,857 5,881 Total Non-current liabilities 16,000 17,641 Short-term portion of borrowings and finance lease obligations ,062 Other current liabilities 11,447 14,189 Total Current liabilities 12,171 15,251 TOTAL Equity and Liabilities 63,195 66,322 Half-Year 2010 Report IBt Bebig August 3, 2010 Page -5/8

6 Notes to the Consolidated Financial Statements The present consolidated interim financial statements have been prepared in a condensed format in accordance with International Accounting Standard IAS 34 Interim Financial Reporting as adopted by the European Union. The financial information included in this report should be read in conjunction with the consolidated financial statements shown in the Annual Report The consolidation scope and structure of the Group remains the same as shown on page 47 & 48 of the Annual Report The statutory auditor has not performed any review for the accounts, results and figures contained in this half-year report. Beside the notes related to the balance sheet and the income statement, shown hereunder, the structure of expenses and revenues, as well as the structure of assets and liabilities has not changed significantly compared to the annual report Income Statement 1. Sales for the first six months of 2010, representing the income generated by the sales of temporary brachytherapy equipments, i.e. HDR equipments using Co-60 (Cobalt 60) and Ir-192 (Iridium 192) sources (also called afterloaders ), ophthalmic plaques and permanent brachytherapy I-125 (Iodine-125) radiotherapeutic implants and therapy accessories, reached EUR 14.9 million, compared to EUR 16.5 million for the first semester of 2009, showing a decrease of 9.6%. In the first semester of 2010 about 10% of the sales figures are coming from the Russian project compared to 14% for the same period of In line with the annual report of 2009 the commissions are shown under "Sales & Marketing expenses". While for the 1H-2009 report they were shown under the position "Cost of sales". For comparison purpose the portion of EUR 722 thousand Commissions has been re-allocated in "Sales & Marketing expenses" and reduced in the "Cost of Sales" position for the 1H-2009 figures. 3. Consolidated gross margin reached EUR 9 million for first six months of 2010 versus EUR 10.1 million for the same period of 2009, showing a decrease 10.8%. 4. Operating expenses totaled EUR 6.9 million, compared to EUR 7 million for the first semester of These costs broke down as follows: sales and marketing expenses (EUR 4 million for the first six months of 2010 versus EUR 3.9 million in 2009), general and administrative expenses (EUR 2.5 million for the first six months of 2010 versus EUR 2.7 million for the same period in 2009) and research and development costs (EUR 0.4 million in 2009 versus EUR 0.4 million for the same period in 2009). It should be mentioned that non-recurring settlement payments to the former CEO of IBt Bebig are included in the G&A expenses. 5. Earnings before interests and taxes (EBIT) reached EUR 2.6 million for the first semester of 2010 compared to EUR 3.2 million for the same period of 2009, showing a decrease of 18.6%. 6. Financial results showed a net expense of EUR 0.2 million for the first six months of 2010 versus a charge of EUR 0.3 million for the same period of Net profit reached EUR 1.7 million end of June 2010 compared to a net profit of EUR 2.9 million end of June Half-Year 2010 Report IBt Bebig August 3, 2010 Page -6/8

7 Balance Sheet 8. Total Equity of the group stood at EUR 35 million on June 30, 2010 versus EUR 33.4 million in December 31, IBt Bebig also maintained a solid financial situation, with Cash amounting to EUR 6.3 million end of June 2010, versus EUR 9.6 million in December Net Debt stands at EUR 4.6 million, versus EUR 3.2 million in December The Equity to Assets ratio stood at 55% end of June The two seller loans provided by Eckert & Ziegler AG were replaced by a new single loan during the first half of The new loan has a repayment period of 5 years and an initial value of EUR thousand. End of 2009, IBt Bebig made a USD 2 million investment into Core Oncology, Inc., a group active on the American brachytherapy market, shown under other current assets, this loan has been now regrouped to non-current assets end of June Risk Management IBt Bebig, like any other company acting internationally, is exposed to a large number of opportunities but also risks which may influence the company s business activities. The associated consequences could affect the company s business significantly and even the very existence of the group. At the same time, these risks and/or their perception can potentially have a material impact on the evolution of the share price listed on Euronext. The identified risks remains as they have been described in the on page of the Annual Report Half-Year 2010 Report IBt Bebig August 3, 2010 Page -7/8

8 STATEMENT FROM THE RESPONSIBLE PERSONS Pursuant to legal requirements and to the Royal Decree of November 14, 2007, Dr. Edgar Löffler, Managing Director and Dr. Gunnar Mann, Managing Director, declare that, to the best of their knowledge: a) The consolidated financial statements for the first six months of 2010 have been prepared in accordance with applicable accounting standards and accurately reflect the assets, financial position, and earnings of IBt Bebig Group and its subsidiaries included in the consolidation; b) The management report includes a fair view of the business progress, the earnings, and the position of IBt Bebig Group and the subsidiaries included in the consolidation as well as a description of principal risks and uncertainties they face. About IBt Bebig Contributing to saving lives! The IBt Bebig group is a European based group, active in the Medical Device segment of the Health Care sector. The core business of the IBt Bebig group is the cancer treatment by radiation technology. Its specificity is the treatment of cancer by brachytherapy, a technique which consists of placing a sealed medical device containing a minuscule quantity of a radioactive isotope in the body, on either a temporary or on a permanent basis. Depending on the application, the device can take the shape of a plaque, a seed or a catheter. The precise positioning of the device allows the cancer cells to be destroyed while sparing the healthy tissues and increasing the patient's quality of life. Today, the alternative brachytherapy procedures cover the non-invasive treatment of cancers of the prostate, neck, head and eye, as well as certain gynecological cancers. The IBt Bebig group employs over 150 people and has entities in Germany, France, United Kingdom, Spain, Italy and India. Its Head Office is located in Seneffe, Belgium and the company has been listed on the Euronext stock exchange since April 1997 (Reuters : IBTH.BR Bloomberg : IBTB BB). Contact Paul-Emmanuel Goethals Head of Investor Relations & Communication Tel: ir@ibt-bebig.eu Internet : Half-Year 2010 Report IBt Bebig August 3, 2010 Page -8/8