Cavotec MSL Holdings Ltd (CCC) - Earnings Release for announcement to the market

Cavotec MSL Holdings Ltd (CCC)

Earnings Release for announcement to the market

Reporting Period: Twelve Months to 31 December 2009

Previous Reporting Period: Twelve Months to 31 December 2008

Revenue from sales of goods:

Amount: EUR 125,257,896 (NZD 277,088,588)

Percentage change: -11.6% 

Operating profit before finance costs and income tax (EBIT):

Amount: EUR 8,951,470 (NZD 19,801,946)

Percentage change: -32.8%

Profit after tax attributable to share holder:

Amount: EUR 5,149,495 (NZD 11,391,427)

Percentage change: -43.8 %

Net tangible assets per share

Amount: EUR 0.27 (NZD 0.597)

Percentage change: 69.8 %

Basic earnings per share

Amount: EUR 0.081 (NZD 0.179)

Percentage change: -43.8%

Number of shares outstanding

31 December 2009: 63,632,700

31 December 2008: 63,632,700

Interim/Final Dividend

The Board of Directors announces that the Company intends to pay a gross dividend of NZD 3.0 cents (or approx. 18.7% of the Net Profit of the financial year 2009). Dividends will be paid out within March 30th 2010.

Exchange rates:

Profit and Loss values converted at average exchange rate of 2009: (EUR 1.0 = NZD 2.21214)

Balance Sheet values converted at 31 December 2009 exchange rate: (EUR 1.0 = NZD 1.9803)

 

_________

 

Dear Shareholders,

 

Without doubt, 2009 was one of the most difficult and  challenging years for the world economy. As a result, many of our customers and suppliers were adversely affected and faced drastic reductions in revenue.

Our Group’s annual consolidated revenue from sales of goods decreased 11.6% in 2009 to EUR 125.3 million, compared to 2008 – the best year in our history. Operating profit (EBIT) decreased by 32.8% to EUR 9.0 million.

To offset this downtrend we undertook several Group-wide measures, including a reduction of 10% in management salaries. In a number of countries specific measures were introduced such as reductions in working hours and the cessation of overtime and internships. Our total operating expenses in 2009 were reduced on an annualised basis by

8.4% or EUR 5.5 million, compared to the previous year.

A further objective was to reduce our net financial position (NFP). This was successfully achieved and I am pleased to report a substantial decrease of the NFP by 20%, which was at EUR 21.9 million as of 31st December 2009.

Finally, order intake for the year totalled EUR 144.0 million, bringing the result close to 2008 levels. This resulted in a year-end order book of EUR 65.4 million, or an increase of 41.9% from the previous year.

We are cautiously optimistic for the coming year and foresee 2010 as a year of recovery, culminating in a stronger position for 2011. In practical terms, our main targets are to return to 2008 operating levels in 2010 and to see our new technologies continue to gain wider acceptance in the market. Accomplishing these tasks will form the foundation for

the Group’s growth in 2011 and beyond.

CEO, Cavotec MSL 

 

 

For more information, please contact: investor@cavotec.com