Half year report H1 2017/18

    Half year report H1 2017/18 


 

INTERIM REPORT JUNE 1st, 2017 – NOVEMBER 30th, 2017 (H1 2017/18)

H1 2017/18 was approved at the Board of Director meeting today.

The result of the first half year of fiscal year 2017/18 met the expectations and the Board of Directors are satisfied with the current development in the company. The revenue in H1 2017/18 was DKK 135,3 million (2016/17: DKK 131,2 million) which is DKK 5,0 million higher than expected.

The EBITDA for June 1st, 2017 - November 30th, 2017 is 16,3 million DKK which is DKK 1,1 million higher than expected. (2016/17: DKK 6,6 million excluding non-recurring cost and DKK -0,2 million including non- recurring cost.)

The EBITDA in the Offset and Flexo segment for June 1st, 2017 - November 30th, 2017 is 10,1 million DKK (2016/17: DKK -0,2 million excluding non-recurring cost). The EBITDA margin in the Offset and Flexo segment was 7,8% for June 1st, 2017 - November 30th, 2017. (2016/17: -0,1% excluding non-recurring cost).

The positive results have been achieved through the ongoing implementation of “Change4Success” (the turn-around plan) that was approved by the Board of Directors on January 26th, 2017.

Carsten Knudsen, Chairman of the Board of Directors in Glunz & Jensen Holding A/S:”We are now seeing the results of the implementation of the turn-around plan ”Change4Success” that has been unfolding since January 2017. The company is now profitable with a profit after tax at DKK +6,7 million and a net cash flow from operating activities at DKK +17,2 million. Comparable figures from 2016/17 are DKK -8,4 million and DKK 0,0 million respectively. The Board of Directors acknowledges the good results and we are anticipating the additional improvements from ”Change4Success” as planned which will be fully implemented during 2018..

The company’s expectations for the full year 2017/18 were a revenue level as in 2016/17 (approximately DKK 260 million) and an EBITDA at DKK 30 million excluding non-recurring cost and excluding fair value adjustments.

The Annual General Meeting of Glunz & Jensen Holding A/S on September 21st, 2017 approved the changing of the accounting period to April 1st – March 31st. The fiscal year 2017/18 is therefore shortened to 10 months instead of the previous 12 months hence requiring the outlook for 2017/18 to be adjusted accordingly. The outlook for the 10 month fiscal period was adjusted on September 22nd, 2017 to a revenue level of DKK 215 million and an EBITDA at DKK 24 million excluding non-recurring cost and excluding fair value adjustments.

Highlights on the H1

• Group revenue during H1 2017/18 was DKK 135,3 million (2016/17: DKK 131,2 million) equal to an increase of 3,1%. The prepress segment increased 3,3% consisting of a 6,0% decrease in Offset and a 28,5% increase in the Flexo revenue. The higher than expected revenue in H1 2017/18 is related to both the Offset and the Flexo segment. The revenue in Selandia Park A/S increased marginally as planned. 
• Gross profit is at DKK 39,3 million in H1 2017/18 (2016/17: 26,3 mill. DKK including 0,2 mill. DKK in non-recurring cost). The improvement is a result of the improvements in material purchases and production optimization. 
• EBITDA in H1 2017/18 was at DKK 16,3 million excluding non-recurring cost and excluding fair value adjustments (2016/17: 6,6 mill. DKK excluding non-recurring cost and DKK -0,2 million including non- recurring cost of DKK 6,8 million). 
• There are no non-recurring cost included in the gross profit and EBITDA in H1 2017/18 as cost related to Change4Success were provisioned for in Q3 of 2016/17 and the provisions are being paid and thereby reversed as planned during the implementation of Change4Success. 
• Profit after tax for the period H1 2017/18 was DKK 6,7 million (2016/17: DKK -8,4 million), corresponding to a result per share (EPS) at 4,0 DKK. (2016/17: -5,2 DKK) 
• Net cash flows from operating activities amounted to DKK 17,2 million (2016/17: DKK 0,0 million), net cash flows from investing activities were DKK 0,9 million (2016/17: DKK 4,4 million) and the free cash flow was DKK 16,3 million (2016/17: DKK -4,4 million). The positive development in net cash flows from operating activities is due to the profit for the period and the positive change in working capital. 
• Selandia Park A/S and a successful tenant have entered a long term lease agreement on 50% of the current Glunz & Jensen A/S headquarter property in Ringsted. The lease agreement commences on January 1st, 2018. The agreement has not impacted the fair value of the property portfolio in Selandia Park A/S in H1 2017/18. 
• The outlook in Glunz & Jensen Holding A/S for the 10 month fiscal year 2017/18 remains unchanged with a revenue expectation at the DKK 215 million level and an EBITDA (excluding non-recurring cost and excluding fair value adjustments) at DKK 24 million.

Glunz & Jensen will host a conference call for analysts and investors after the full year reporting of 2017/18.

For further information please contact:

CEO René Normann Christensen: phone [phone]Chairman of the board Carsten Knudsen: phone [phone]

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