Year End Report for New Wave Group AB (publ) January–December 2010

17% growth in local currencies

The period 1 October – 31 December 2010

–    Sales amounted to SEK 1 202 million, which was 17% better than the previous year in local currencies and 11% better in SEK (SEK 1 082 million).
–    Result after tax improved by SEK 37.7 million and amounted to SEK 99.0 million (61.3).
–    Earnings per share amounted to SEK 1.47 (0.90).
–    Cash flow from operating activities amounted to SEK 202,2 million (430.3).
–    Equity ratio amounted to 44.8 (41.0) %.
–    Net debt to equity ratio amounted to 72.8 (96.3) %.

The period 1 January – 31 December 2010

–    Sales amounted to SEK 4 243 million, which was 9% better than the previous year in local currencies and 4% better in SEK (4 087).
–    Result after tax improved by SEK 133.7 million and amounted to SEK 221.5 million (87.8).
–    Earnings per share amounted to SEK 3.31 (1.29).
–    Cash flow from operating activities amounted to SEK 343.6 million (806.3).

VIEWS ON 2011
For 2011 we expect a higher turnover and a better result than the 2010 outcome.

CEO Comments

Further progress was made during the fourth quarter and I am relatively pleased with a sales growth of 11% in SEK and 17% in local currencies. It must also be taken into consideration that we are still suffering from shortages in some segments of our promo stock. An operating profit of SEK 138 million is acceptable, but we still have some way to go until we reach the levels I know we can and should reach. We must continue working on our cost levels and efficiency, areas where I believe there’s still more to do.

If we look back on the whole year 2010, sales increased by 4% in SEK and 9% in local currencies, which I’m not pleased with. We probably would have been able to increase sales by several percent more if we had managed to increase our stock levels a little more, mainly in the promowear area. An operating profit of SEK 328 million is acceptable, but no more. It will get better.

Our balance sheet is very strong and our focus for 2011 and ahead will be expansion, and of course to further strengthen the profitability of the existing Group. For example, our equity ratio is 45%, compared to our goal of 30%.

For me personally as the CEO, 2010 feels a bit like a year of revenge after all the misery of 2009. All our acquisitions are paid for and our net debt only amounts to about 52% of the value of our properties, inventory, stock and accounts receivable. This gives us a lot of room for future expansion.

I have a very positive outlook on 2011 and I believe it will be a great year in many ways.

Torsten Jansson

FOR MORE INFORMATION, PLEASE CONTACT:
CEO Torsten Jansson
Phone: +46 (0)31 712 89 01
E-mail: torsten.jansson@nwg.se

CFO Lars Jönsson
Phone: +46 (0)31 712 89 12
E-mail: lars.jonsson@nwg.se


The information in this report is that which New Wave Group is required to disclose under the Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. It was released for publication at 7 am (CET) on 10 February, 2011.

Tags: