- Total sales increase to 92.6 million euros
- EBIT turnaround to 2.2 million euros
- Cash flow up to 4.9 million euros
- Equity ratio rise to 15.2 percent, taking strategic synergies into consideration, no strengthening of capital base as yet
- Management assuming positive trends to continue in 2011/12, but not giving earnings forecast as market environment not yet stable
The HIRSCH Servo Group reports that the economic situation generally tended to be more positive in fiscal 2010/11 but the full force of the financial crisis was still being felt. In the period under review, total sales increased by around 8 percent to €92.6 million (PY: €85.9 million). The operating profit (EBIT) was up €7.6 million to €2.2 million (PY: minus €5.4 million) and the profit on ordinary activities (POA) to minus €0.5 million (PY: minus €7.7 million).
Sales in the EPS Processing business segment with the two divisions EPS Packaging and EPS Insulation totaled €76.0 million, which was a rise of some €4.9 million year on year (PY: €71.1 million). The Packaging division generated €36.2 million in sales, an 11 percent improvement over the previous year’s result of €32.5 million. What accounted for the higher figures was firstly the rise in sales prices because of higher raw material prices than in the previous year and secondly the greater volumes achieved, particularly in the EPS Packaging division. This proves that we were able to benefit from the slight rise in demand seen over the fiscal year thanks to our capacity for innovation, customer orientation and strategic production network. The Insulation division reported marginally higher sales at €39.8 million than for the previous year (PY: €38.6 million).
In the EPS Processing business segment, the operating profit (EBIT) was €3.8 million (PY: €1.5 million). The Packaging division showed an increase in the EBIT from €1.0 million the previous year to €2.6 million. It was the higher number of units on the one hand and on the other lower Group charges than the previous year at around €0.8 million that led to the improvement. With raw material prices steadily rising, we passed most of the increases onto the customers. The Insulation division achieved an EBIT of €1.2 million compared with €0.5 million for the previous fiscal. This rise is mainly the result of Group charges amounting to roughly €0.8 million that were also lower than the previous year.
Sales in the Technology business segment climbed over the year, up 14 percent from the same period the previous year to €16.6 million (PY: €14.6 million). The substantial improvement in business performance is attributable to higher capacity utilization at our customers in the packaging and particularly in the construction industry from new products and developing new markets, resulting in an increase in investing activities. Intercompany sales totaled €0.9 million, down some 21 percent from the previous year (PY: €1.1 million). The EBIT showed year-on-year growth from minus €3.4 million to minus €0.9 million. In addition to higher sales, the improvement in the result is also due to lower inventory depreciation.
The Logistics business segment with the two companies GGB - Global Green Built GmbH and Global Green Pallets GmbH was discontinued effective June 30, 2010 and integrated in the two business segments Technology and EPS Processing, which is why it only generated minimal sales (PY: €0.2 million). HIRSCH Maschinenbau GmbH (Technology business segment) and HIRSCH Porozell GmbH (EPS Processing business segment) continue to market the developments achieved in the former Logistics business segment. As a result, costs were saved and the negative operating profit (EBIT) for the fiscal year reduced to minus €0.4 million (PY: minus €3.5 million).
Profit after tax saw an increase to minus €2.6 million (PY: minus €6.2 million) and earnings per share to minus €5.19 (PY: minus €12.49).
Cash flow from operating activities rose to €4.9 million (PY: €3.4 million).
As at June 30, 2011, equity amounted to €13.9 million (PY: €4.8 million), which means an improvement in equity ratio to 15.2 percent (PY: 5.6 percent). The increase in equity and equity ratio is due to revaluation of the land and buildings in fixed assets.
Following approval by the Supervisory Board to take action to strengthen the capital base, we initiated an M&A process during the period under review. This process has been completed for the time being. Taking strategic synergies into consideration, there has been no strengthening of the equity base as yet.
At the reporting date June 30, 2011, the HIRSCH Servo Group employed 591 people. The payroll fell to 607 on average for the year (PY: 623). Given the restructuring measures, staff reductions primarily affected the Technology business segment.
In the period under review, we invested a total of €1.6 million (PY: €1.9 million), with the majority - €1.4 million (PY: €1.7m) - going to the EPS Processing business segment. Most was spent on the new packaging plant in Romania . The Technology business segment invested €0.2 million (PY: €0.0 million). Primarily aiming to ensure liquidity, we will continue to restrict investing activities in the current fiscal year.
To maintain our financial strength, the Executive Board will again submit a proposal to the 16th Annual General Meeting not to pay any dividends for fiscal 2010/11.
Fiscal year 2010/11:
|
|
Fiscal year |
Fiscal year |
Change |
|
Sales |
92,645 |
85,902 |
8 |
|
EPS Processing |
76,003 |
71,075 |
7 |
|
Technology |
16,640 |
14,629 |
14 |
|
Logistics |
1 |
198 |
-100 |
|
Other activities |
0 |
0 |
- |
|
Profit on ordinary activities |
-470 |
-7,741 |
- |
|
EBITDA |
8,152 |
1,152 |
613 |
|
EBIT |
2,241 |
-5,436 |
- |
|
EPS Processing |
3,762 |
1,498 |
151 |
|
Technology |
-902 |
-3,389 |
- |
|
Logistics |
-432 |
-3,496 |
- |
|
Other activities |
-186 |
-49 |
- |
|
Profit after tax |
-2,591 |
-6,231 |
- |
|
Earnings per share (in €) |
-5.19 |
-12.49 |
- |
|
Investments |
1,642 |
1,860 |
-12 |
|
Cash flow from operating activities |
4,919 |
3,441 |
43 |
|
Equity |
13,916 |
4,789 |
191 |
|
Equity ratio in % |
15.2 |
5.6 |
- |
|
Net debt |
56,189 |
56,498 |
-1 |
|
Balance sheet total |
91,448 |
85,666 |
7 |
|
Average price (in €) |
26.40 |
39.27 |
-33 |
|
P/E ratio as at June 30 |
- |
- |
- |
|
Dividend yield in % as at June 30 |
0.0 |
0.0 |
- |
|
Employees (annual average) |
607 |
623 |
-3 |
Outlook:
As announced in the ad hoc news, we reached an agreement with our financing banks September 30, 2011 on a long-term repayment plan, thus creating a sound basis for the future.
Having finalized the restructuring measures, we are expecting the positive trends to continue in the 2011/12 fiscal year. From today’s perspective, it is however very difficult to predict the general economic situation in the future and therefore the market environment with any accuracy. We consequently do not propose to forecast earnings for fiscal 2011/12.
Further details of the outlook are to be found on pages 34 and 35 of the 2010/11 Annual Report, which can also be downloaded from our website at www.hirsch-gruppe.com .
Announcement regarding annual report and financial statements:
The report for fiscal year 2010/11 from July 1, 2010 through June 30, 2011 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 2010/11 annual financial statements for the period from July 1, 2010 through June 30, 2011 can be downloaded from www.hirsch-gruppe.com .
The next date on the financial calendar is November 29, 2011 when the 16th Annual General Meeting will be held and the results for the first quarter 2011/12 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:
Head of Corporate Communications: Michaela Promberger, Phone: +43 4277 2211-312, Fax ext.: -170, E-mail: michaela.promberger@hirsch-gruppe.com
Corporate Communications Manager: Marlene Wieland, Phone: +43 4277 2211-126, Fax ext.: -170, E-mail: marlene.wieland@hirsch-gruppe.com
Website: www.hirsch-gruppe.com