Report for second quarter of 2010, HTC Group
- Positive cash flow and profitability during a substantial growth
- Substantially increased turnover and earnings performance
- The first half of 2010 is the Group’s best ever, with a turnover growth of +11% compared to previous year and +14% currency converted
- The second quarter of 2010 is the Group’s best ever, +19% compared to previous year and +18% currency converted
- The half-year result before tax was MSEK 5,4 (4,2), a margin of 3,4% (2,9)
- The result before tax for the second quarter was MSEK 7,3 (-0,6), a margin of 8,4% (-0,8)
The demand increased in all regions compared to the first half of 2009 and also for all main product groups, i.e. machinery, dust extractors, metal and resin tools and Twister™. Previous year adjusted to the current exchange rates gave a turnover increase of between 12 and 35 percent depending on main product group. A welcomed sign of an underlying sustainability in the recovery is that the demand for machines, which are more capital-intensive for the customers, has followed the upward trend, plus the fact that Twister™ throughout the recession showed a double-digit growth by a wide margin over a rolling twelve months period.
During the first half of 2010, several product launches took place. A completely new range of machines and dust extractors, HTC Greyline™, developed for the demolition, floor preparation, renovation and rental markets was launched during the second quarter with a demand that substantially exceeded initial projections. The metal tool CX and a further developed Twister™ tailored for certain department store environments have been successfully introduced worldwide.
Revenue and profit
The revenue for first half and second quarter of 2010 is the Group’s best ever. Compared with previous year the difference is even more pronounced, especially since the US dollar exchange rate for the first half of 2010 is about 9 percent lower than for the same period last year.
A significant part of the Group’s sales are in US dollar through the wholly owned subsidiary in Knoxville, Tennessee, USA.
The Group’s gross margins were in all essential parts unchanged compared with last year at comparable exchange rates. The Group’s expenses have not increased to the same extent why the result before tax and profit margin before tax was improved.
The Group is well equipped to deal with an expected continued increase in demand.
Lars Landin, CEO, HTC Sweden AB, Ph: +46 121 294 00
Mats Franzén, CFO, HTC Sweden AB, Ph: +46 121 294 00
About HTC Sweden AB
Söderköping company HTC Sweden AB is a rapidly-growing gazelle company, founded in 1987 by Håkan and Gunn Thysell. The company is a contractor within floor care and concrete grinding. A patented-grinding system was launched in 1992 and HTC is currently an international market leader within floor grinding systems based on diamond technology and patented technical solutions. HTC has also developed unique floor solutions recommended by SNF within, among other things, polished concrete under the brand name HTC Superfloor™ and has recently introduced the unique diamond-based cleaning and maintenance system Twister™ internationally. The head office with product development and production is located in Söderköping. There are sales companies in the USA, Germany, the UK and France. There is also specialised production in the USA. Since August 2006, British company 3i Group has been a minority shareholder in HTC Sweden. 3i is the global leader within private equity and focuses, among other things, on minority investments in organic rapidly-growing companies and organisations that are expanding rapidly through company acquisitions.