The Board of Directors for Glunz & Jensen A/S has today approved the annual
report for the financial year 2006/07 (1 June 2006-31 May 2007).
SUMMARY
• 2006/07 was a challenging year for Glunz & Jensen. As expected, sales within
the largest product area, CtP processors, saw a decline. The development within
the two new product areas, iCtP and “punch & bend”, was more difficult than
anticipated.
• The relocation of production from Denmark to Slovakia has been a success and
has resulted in the expected cost cuts, but these have not yet been sufficient
to generate satisfactory earnings. This is due, among other things, to losses
from iCtP and “punch & bend”.
• Total revenue in 2006/07 was DKK 449.8 million against DKK 484.4 million last
year. The decline in revenue is primarily attributable to a fall in revenue
from CtP processors and conventional processors. The fall is reduced by
increasing revenue from “Other prepress equipment”.
• The operating loss before special items (EBITA) totalled DKK (3.2) million
against a profit of DKK 32.8 million the year before. The results are in line
with the most recently published outlook (EBITA of around DKK 0 million cf.
stock exchange notification of 29 March 2007), but lower than announced at the
beginning of the financial year. The results are negatively affected by losses
in the two new product areas, iCtP and “punch & bend”, amounting to just over
DKK 25 million.
• Net profit for the year was DKK 2.8 million against DKK 8.2 million in
2005/06. The net profit for the year was positively affected by special items
following the decision to close down Glunz & Jensen's production in England. In
2006/07, these items totalled income of DKK 5.1 million (2005/06: expenses of
DKK 17.9 million).
• Cash flow from operating activities, which were negative at DKK (10.8)
million were impacted by payments for special items of DKK 24.6 million.
Adjusted for special items, cash flow was positive at DKK 13.8 million against
DKK 28.5 million last year.
• Net interest-bearing debt increased by DKK 3.6 million to DKK 68.1 million.
• Solvency increased to 52% from 48% at the end of the previous financial year.
• The Board of Directors recommends that no dividend be paid for the 2006/07
financial year (2005/06: DKK 2 per share of DKK 20).
• Within iCtP, 2006/07 saw intensive efforts going into establishing a stable
and cost-effective supply chain, and progress continues to be made in this
area. We therefore expect to be able to step up our marketing activities during
2007/08.
• More active sales efforts in Glunz & Jensen K&F in the USA, which was
acquired in January 2006, combined with an expansion of the product range are
expected to create growth and improve earnings within “punch & bend” in
2007/08.
• The establishment of these two areas is also expected to affect earnings
negatively in 2007/08 - but to a significantly lesser degree than in 2006/07.
• Glunz & Jensen's business opportunities in Asia are continuously being more
attractive. As a result, Glunz & Jensen expects to establish a sales and
service office in China during 2007/08 which is to strengthen collaboration
with customers and business partners.
• Revenue of just above DKK 400 million is expected for the 2007/08 financial
year. The expected fall in revenue compared to 2006/07 is attributable to an
expected decline in demand for CtP processors and plateline equipment. EBITA is
expected to total DKK 0-5 million, including a loss resulting from the
investment in the two new product areas, iCtP and “punch & bend”. The net
profit/(loss) for the year 2007/08 is not expected to be impacted by special
items (2006/07: DKK 5.1 million).
• The company's annual general meeting will be held on 27 September 2007 at 3
pm at Ringsted Kongrescenter, Noerretorv 22, 4100 Ringsted, Denmark.
The annual report 2006/07 is attached in pdf-format.
Ringsted, 30 August 2007
Peter Falkenham René Barington
Chairman Managing Director
