Fiscal 2005/06
In the 2005/06 fiscal year, the HIRSCH Servo Group succeeded in achieving a sustained turnaround. According to the preliminary figures, its best operating profit (EBIT) ever was posted with an increase of 175%, three times the POA (profit on ordinary activities before tax) and a rise in the earnings per share of 87%. The largest investment program in the company’s history at 11.9 MEUR was primarily due to the acquisition of Polyform s.r.o. in Slovakia, the plant extension in Wroclaw (Poland) and the greenfield investment in Cluj (Romania). High energy prices resulted strong demand, especially for EPS insulation and EPS processing machinery.
The primary business segment of EPS Processing saw the POA remaining at the previous year’s level of 2.9 MEUR in spite of exchange losses of 0.65 MEUR. At 4.6 MEUR (previous year 3.4 MEUR), the operating profit (EBIT) showed an all-time high and therefore a strong increase in performance. High energy prices led to rising demand for EPS insulating materials and EPS packaging, thus enabling an organic growth in sales of over 20%. If the sales from the newly acquired companies in Slovakia are included, a rise of 30% to 44.8 MEUR (PY 34.5 MEUR) can be reported.
In the Machinery and Plant Engineering business segment, the POA showed a return to the black increasing by over 1.8 MEUR from -0.2 MEUR to +1.7 MEUR. The main factors behind this turnaround are to be found in the comprehensive cost cutting programs, particularly in block machines, and the higher sales achieved. Sales grew by 22% from 19.5 MEUR to 23.8 MEUR.
The annual net income climbed to 3.6 MEUR (PY 1.9 MEUR) and the earnings per share to 7.44 euros (PY 3.99 euros).
On the reporting date June 30, 2006, the HIRSCH Servo Group employed 500 people. The annual average rose to 478 (PY 417 people) with the increase in headcount coming from Eastern Europe.
Preliminary result for the Group for 2005/06 (to IFRS):
|
|
|
Fiscal 2004/05 |
Prelim. 2005/06 |
Change in % |
|
Sales |
in million € |
57.2 |
68.7 |
+20 |
|
Operating result (EBIT) |
in million € |
2.4 |
6.6 |
+175 |
|
Profit before tax (POA) |
in million € |
1.4 |
4.6 |
+228 |
|
Annual net income |
in million € |
1.9 |
3.6 |
+89 |
|
Earnings per share |
in € |
3.99 |
7.44 |
+87 |
|
Balance sheet total |
in million € |
56.4 |
72.3 |
+28 |
|
Investment |
in million € |
9.5 |
11.9 |
+25 |
|
Employees (annual average) |
people |
417 |
478 |
+15 |
Preliminary figures by business segment:
|
|
Fiscal |
Prelim. |
Change in % |
|
Profit before tax (POA) |
1.4 |
4.6 |
+228 |
|
EPS Processing |
2.9 |
2.9 |
0 |
|
Machinery and Plant Engineering |
-0.2 |
1.7 |
- |
|
Other activities 1) |
-1.3 |
0.0 |
- |
|
Operating result (EBIT) |
2.4 |
6.6 |
+175 |
|
EPS Processing |
3.4 |
4.6 |
+35 |
|
Machinery and Plant Engineering |
0.1 |
1.9 |
>1,000 |
|
Other activities 1) |
-1.1 |
0.1 |
- |
|
Sales |
57.2 |
68.7 |
+20 |
|
EPS Processing |
34.5 |
44.8 |
+30 |
|
Machinery and Plant Engineering |
19.5 |
23.8 |
+22 |
|
Other activities 1) |
3.2 |
0.1 |
-97 |
The Board will submit a proposal to the 11th Annual General Meeting to increase the dividend to 3.20 euros per share (PY 1.10 euros).
Outlook
Management confirms the encouraging outlook for the 2006/07 financial year. Given the consistent implementation of the corporate strategy and ongoing favorable market environment, the POA should rise by 15% from 4.6 MEUR to 5.3 MEUR and the earnings per share from 7.44 euros to 8.60 euros.
The next date on the financial calendar is October 11, 2006 when the balance sheet press conference followed by the analysts’ and investors’ meeting will be held.
*The Group is the EPS specialist on the Vienna Stock Exchange with manufacturing facilities in Austria, Hungary, Poland, Slovakia, Italy and Romania. EPS products (EPS stands for expandable polystyrene and is better known under such brand names as Porozell® or Styropor®) support a variety of functions, including energy savings, as well as sustainable and eco-friendly growth. Their wide-ranging applications cover packaging, shape-molded parts, building insulation, modular boards for underfloor heating, construction blocks and Thermozell® lightweight concrete products.
For further information, please contact Michaela Promberger, Tel: +43 4277 2211-312,
Fax: +43 4277 2211-370, E-mail: michaela.promberger@hirsch-gruppe.com,
www.hirsch-gruppe.com