Semi annual report January - June 2000

Semi annual report January - June 2000 * Net revenue increased by 58 per cent to 598.1 (379.6) MSEK * Profit before tax including goodwill amortization but excluding surplus funds from SPP increased by 181 per cent to 83.8 (29.8) MSEK * Amortization of goodwill 10.0 MSEK * Earnings per share 2.22 (0.70) SEK REVENUE AND PROFIT All comparative figures within brackets refer to pro forma accounts for the new LGP Telecom Holding Group as per 30 June 1999. First half-year 2000 The new LGP Group continues to show strong growth. The group's net revenue amounted to 598.1 MSEK which, for comparative entities, pro forma, means an increase of 218.5 MSEK corresponding to 57.6 per cent. It is primarily the telecom sector which accounts for the strong increase in growth. Telecoms account for 71 per cent of the total sales and compared with the previous year, revenues from telecoms increased by 89 per cent. The high demand continues in Europe and in North America. The incoming orders are continually strong. To meet the high demands, expansion of production capacity is continuing. The construction of a new production unit for telecom products has started 2 in Tullinge comprising 6000 m . Investment is estimated to reach approx. 80 MSEK and will be in operation during the second quarter of 2001. The operating profit for the period amounts to 93.7 MSEK. The profit includes surplus funds from SPP of 6.1 MSEK, which is accounted for as other operating income. The operating profit pro forma for comparative units for the previous year amounted to 34.2 MSEK, which means an increase of 156 per cent excluding surplus funds from SPP. Amortization of goodwill, arisen during the acquisition of LGP Telecom AB, has debited the profit by 10.0 MSEK. The operating margin rises to 14.6 (9.0) per cent excluding surplus from SPP. Earnings per share rise to 2.22 (0.70) SEK. Excluding surplus funds from SPP, earnings per share rise to 2.06 SEK. Second quarter, 2000 Net revenues for the second quarter rose to 313.4 (190.7) MSEK which for comparative units, pro forma, means an increase of 64.3 per cent. The operating profit for the second quarter rose to 54.5 (31.8) MSEK. Excluding surplus funds from SPP of 6.1 MSEK, the operating profit rises to 48.4 MSEK which means an increase of 52.2 per cent. CAPITAL EXPENDITURE The Group invested 36.4 (29.9) MSEK in machines, equipment and buildings during the first half-year.§ PERSONNEL As per 30 June, the number of employees are 710, which is an increase of 147 since the year-end. FINANCING The equity ratio stood at 68.0 per cent as of June 30 2000. As of December 31 1999, the equity ratio was 72.6 per cent on a pro forma basis. The Group's liquid funds amounted to 44.3 MSEK and unutilized committed credit facilities amounted to 29.6 MSEK. The cash flow for the period was 2.0 ( 7.4) MSEK. As of December 31, 1999, the liquid funds amounted to pro forma 42.3 MSEK and unutilized committed credit facilities to 71.2 MSEK. Shareholders´ equity per share amounted to 30.9 (28.2) SEK. OTHER On 19 May, Arkivator AB changed its name to LGP Telecom Holding AB as per a decision made on the AGM on 3 April. The participating interest in LGP Telecom AB amounts to 99.9 per cent of the total number of shares and votes. Compulsory purchase of the remaining shares is in progress. On record day, 5 May 2000, a bonus issue1:1 was carried out. On the AGM, 3 April, it was decided to issue a subordinated loan of nominally 100,000 SEK by issuing promissory notes with separable warrants. All employees in the group have thereafter been offered the chance to keep the warrants. The warrant option runs throughout the period 4 July 2000 until 2 July 2003. The warrant option programme means that up to 1,000,000 shares can be issued. FORECAST 2000 During the second half-year, continued growth is expected. Stockholm, 14 August 2000 Board of Directors ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2000/08/14/20000814BIT00570/bit0001.doc The full report http://www.bit.se/bitonline/2000/08/14/20000814BIT00570/bit0002.pdf The full report