Press Release
27th of April, 2009
Opus Concentrates its European Operations
Opus Prodox AB (publ) today announces that it is initiating a profitability
program for the Group's European operations. The organizational changes are
made to further improve the Group's profitability and lead the Group towards
its financial targets. The program is expected to have a positive impact on
Opus earnings per share starting end of 2009.
The management in Opus has together with the company's board developed a
profitability program for the Group's European operations. The program is
carried out to take advantage of cost synergies between the businesses and take
the Group towards its financial target of an average EBITDA margin exceeding 20
percent.
The plan will be implemented immediately and briefly includes:
• The Group's operations in Denmark, will be moved to the head office in
Mölndal, Sweden, where Opus already has vacant office and production space to
accommodate the Danish operations. Significant economies of scale are expected
to be realized when the activities are merged. The only remaining operations in
Denmark will be sales and service to the local market, either through external
partners or through a subsidiary.
• Further manufacturing of products will be moved to the Group's factory in
China and other low cost countries to further improve the gross margins in
selected product ranges.
• Service activities in the Swedish market will be integrated to exploit
identified economies of scale.
The profitability program is expected to reduce the total cost base in the
European operations by approximately 10-15 percent compared to 2008 year's
level. The relocation of the Danish operations to Sweden starts immediately and
it is management's intention that this shall be completed by August 1, 2009.
Work with the other parts of the program will take place continuously during
the year.
“This profitability program is a natural step following the acquisitions we
have completed in Europe during the last two years. We shall now realize the
synergies which have been identified. We are convinced that this program will
create value for both our customers, employees and shareholders”, says Magnus
Greko, President and CEO. “Our intention is to move the Danish business during
the summer to prevent any potential impact on this year's sales, with the
intention that the Danish operations are to begin running in full speed from
the head office in Mölndal as of August 1 this year”.
This press info is available in Swedish at www.opus.se
For additional information, please contact
Magnus Greko, President and CEO
Opus Prodox AB (publ)
Phone: +46 (0) 31 748 34 91, +46 (0) 705 58 45 91
E-mail: magnus@opus.se
WEB: www.opus.se
Opus' Certified Adviser
Thenberg & Kinde Fondkommission AB
Box 2108
SE-403 13 Gothenburg
Sweden
Phone: +46 (0) 31 745 50 00
The Opus Group is in the business of developing, producing and selling products
and services within Automotive Test Equipment, Vehicle Inspection Systems and
Fleet Management for the global market. The products include emission
analyzers, diagnostic equipment, and automatic test lines. Services include
management of mandatory vehicle inspection programs. The Group sells its
products and services in more than 50 countries all over the world and
currently employs around 170 persons. The turnover for 2008 was SEK 175 million
pro forma (including acquisitions). Opus' share is listed on First North
(Stockholm Stock Exchange) under the ticker OPUS.
