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H+H International A/S - Annual Report 2012

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Company Announcement No. 277, 2013

Copenhagen, Denmark, 2013-03-14 07:57 CET (GLOBE NEWSWIRE) --  

H+H International A/S
Dampfærgevej 3, 3rd Floor
2100 Copenhagen Ø
Denmark
Telephone: +45 35 27 02 00
www.HplusH.com

 

Annual Report 2012

EBITDA was DKK 86.0 million, against DKK 92.5 million in 2011. EBITDA before special items was DKK 92.0 million, which is in line with the most recently announced outlook for continuing oper­ations, namely EBITDA before special items in the region of DKK 90-110 million. Due to the company’s efficiency programmes and price increases, earnings could be kept on a par with 2011 despite very difficult market conditions in the EU, but earnings are still not satisfactory.

  • Revenue from continuing operations was DKK 1,322 million (2011: DKK 1,310 million), an increase of 1%.
  • Sales in most markets disappointed in 2012, with substantially lower volumes in the EU but strong growth in Russia and exports to Africa. The decline in the EU was due to increasing economic uncertainty, which made the financing of construction projects very difficult.
  • H+H had satisfactory positive free cash flow of DKK 125 million, DKK 114 million of which relates to the sale of H+H Česká republika s.r.o. This is better than the most recent outlook for positive free cash flow including proceeds from the sale of H+H Česká in the region of DKK 90-105 million.
  • In October 2012 H+H International A/S sold all shares in H+H Česká republika s.r.o. to a company in the Xella Group for DKK 114 million, excluding real estate. H+H’s assessment was that H+H Česká would not be able to fulfil its strategic goals for market position and capacity utilisation within a reasonable time frame. The selling price is considered satisfactory and reflects the potential synergies for Xella.
  • In connection with the sale of H+H Česká, H+H reduced its committed credit facility and obtained more favourable financial covenants.
  • Previous write-downs of DKK 104 million in Russia were reversed due to improved market conditions, while real estate in the Czech Republic was written down by DKK 46 million in connection with the sale of H+H Česká, and goodwill in Poland was written down by DKK 24 million due to further difficult market conditions, resulting in a net gain of DKK 34 million.
  • Equity decreased by DKK 55 million to DKK 418 million at the end of 2012. With total assets of DKK 1,393 million, this gives an equity ratio of 30.0%. Change in accounting policies for recognition of pension obligation has reduced equity by DKK 10.2 million in 2012. The cumulative effect of the implementation of IAS 19R (2011) is DKK 91.0 million including tax.
  • The Board of Directors will recommend at the annual general meeting that no dividend be paid for 2012.
  • EBITDA for 2013 is expected to be in the region of DKK 90 million. Efficiency gains and structure improvements are counterbalancing the difficult market situation in Europe, the negative effects of the divestment of H+H Česká and the weak British pound. Free cash flow is expected to be positive in the region of DKK 0-15 million before disposals of assets. Total investments are expected to be in the region of DKK 50 million.

Please see attached pdf file for full version of the report.

 

Anders C Karlsson
Chairman of the Board of Directors

Michael T Andersen
CEO

 

For additional information please contact:
Michael T Andersen, CEO, or Niels Eldrup Meidahl, CFO, on telephone +45 35 27 02 00.

This is a translation of the company's announcement in Danish. In case of inconsistency between the Danish text and this English translation, the Danish text will take precedence.

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