• Sales down about 14% to 86 million euros
• EBIT decline to -5.1 million euros
• Cash flow increase to 9 million euros
• Cost-cutting program expected to lead to positive results in 2010/11
The global economic developments and their impact on the markets in Europe left their mark on fiscal year 2008/09 for the HIRSCH Servo Group. Total sales fell last year to 86.2 MEUR (previous year: 100.0 MEUR). The operating profit (EBIT) dropped to -5.1 MEUR (PY: 0.5 MEUR) and the profit on ordinary activities (POA) to -10.0 MEUR (PY: -3.1 MEUR).
The EPS Processing business segment reported a 10% decline in sales from the previous year. In this economic environment, the EPS Insulation division achieved quite good EBIT results at 1.5 MEUR (PY: 2.9 MEUR). This is primarily due to the fact that the division succeeding in posting very high sales until October 2008. The long, hard winter and production stops caused by the gas crisis in Slovakia however led to lower results overall.
In the EPS Packaging division, it was the drop in sales that mainly accounted for the decrease in EBIT to -0.2 MEUR (PY: 0.7 MEUR). The decline in turnover was due to the poor economic situation in general, which caused a fall in demand from customers.
Turnover in the Technology business segment was down 31% to 13.1 MEUR (PY: 19.1 MEUR). One of the main reasons for the lower figures was the customers' greater reluctance to invest in the face of the financial crisis. In addition, it proved very difficult to acquire new customers because of the problematical funding situation on the capital markets. As a result of the lower sales, the EBIT fell to -3.8 MEUR (PY: -3.1 MEUR).
The Logistics business segment did not generate any income in the period under review. GGB-Global Green Built GmbH is specialized in marketing mobile manufacturing facilities, known as satellite plants, for producing EPS insulating concrete forms (ICFs). Founded in June 2009, Global Green Pallets GmbH shows great growth potential with its polystyrene pallets and pallet manufacturing plants.
Profit after tax fell to -10.7 MEUR (PY: -2.8 MEUR) and the earnings per share to -21.49 euros (PY: -5.55 euros).
Cash flow from operating activities rose to 9.0 MEUR (PY: 6.1 MEUR).
At the reporting date June 30, 2009, the HIRSCH Servo Group employed 643 people. The annual average fell to 691 (PY: 720 people) with Eastern Europe and Austria bearing the brunt of staff reductions. Again, the global economic downturn was responsible for this move.
Investment totaled 5.7 MEUR (PY: 10.2 MEUR) last year. Most of this figure, 3.8 MEUR, was invested in the EPS Processing business segment where it was also used for expanding the plant in Slovakia and virtually doubling capacity. The Logistics business segment invested some 1.6 MEUR.
As already announced on October 16, 2009, the Management Board will submit a proposal to the Supervisory Board and the Annual General Meeting recommending that a dividend not be paid for the past fiscal year 2008/09 or the current fiscal year 2009/10.
These and other measures are aimed at securing capital strength, thus supporting the long-term, sustainable development of the HIRSCH Servo Group.
|
|
Fiscal year |
Fiscal year |
Change |
|
Sales |
86,240 |
99,994 |
-14 |
|
EPS Processing |
73,030 |
80,831 |
-10 |
|
Technology |
13,100 |
19,054 |
-31 |
|
Logistics |
0 |
- |
- |
|
Other activities |
110 |
110 |
0 |
|
Profit on ordinary activities |
-9,956 |
-3,109 |
- |
|
EBITDA |
3,579 |
7,435 |
-52 |
|
EBIT |
-5,105 |
473 |
- |
|
EPS Processing |
1,365 |
3,564 |
-62 |
|
Technology |
-3,841 |
-3,147 |
- |
|
Logistics |
-2,558 |
- |
- |
|
Other activities |
-71 |
56 |
- |
|
Profit after tax |
-10,725 |
-2,770 |
- |
|
Earnings per share (in EUR) |
-21.49 |
-5.55 |
- |
|
Investments |
5,676 |
10,214 |
-44 |
|
Cash flow from operating activities |
9,041 |
6,107 |
48 |
|
Equity |
10,872 |
24,264 |
-55 |
|
Equity ratio in % |
12.6 |
23.0 |
-45 |
|
Net financial debt |
55,788 |
61,362 |
-9 |
|
Balance sheet total |
86,174 |
105,673 |
-18 |
|
Average price (in EUR) |
46.29 |
138.85 |
-67 |
|
P/E ratio as at June 30 |
- |
- |
- |
|
Dividend yield in % as at June 30 |
0.0 |
1.2 |
- |
Outlook
On the basis of the current moderate rise in demand and the assumption that the global economy will become more stable again, the Management is still anticipating slightly negative results for 2009/10 due to the restructuring costs. The focus for the current business year will primarily be on ensuring liquidity. In addition, a broader basis will have to be found for the growth planned in the Logistics business segment. Investors will therefore be given the opportunity of using their capital to acquire shares in the two companies GGB-Global Green Built GmbH and Global Green Pallets GmbH.
Once the measures in the restructuring concept have been implemented, the turnaround should also be achieved by 2010/11.
With its four business segments, EPS Packaging, EPS Insulation, Technology and Logistics, the HIRSCH Servo Group has great potential for saving energy and is therefore strategically very well placed for the future.
Further details of the outlook are to be found on pages 37, 38 and 39 of the 2008/09 Annual Report, which can also be downloaded from the website www.hirsch-gruppe.com.
Announcement regarding annual report and financial statements:
The report for fiscal year 2008/09 from July 1, 2008 to June 30, 2009 can be downloaded from www.hirsch-gruppe.com and is also available from HIRSCH Servo AG, 9555 Glanegg Nr. 58, Austria or Bank Austria Creditanstalt AG, Vordere Zollamtstrasse 13, 1030 Vienna, Austria. The 2008/09 annual financial statements for the period from July 1, 2008 to June 30, 2009 can be downloaded from www.hirsch-gruppe.com.
The next date on the financial calendar is November 25, 2009 when the 14th Annual General Meeting will be held and the results for the first quarter 2009/10 announced.
*The HIRSCH Servo 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 the brand name of Porozell®) 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, Thermozell® lightweight concrete products and transport pallets.
For further information, please contact Michaela Promberger, Phone: +43 4277 2211-312, Fax: +43 4277 2211-370,
E-mail: michaela.promberger@hirsch-gruppe.com, www.hirsch-gruppe.com