Egetæpper A/S
CORRECTION: Annual report notification for the accounting year 1 May 2014 – 30 April 2015

DGAP-News: Egetæpper A/S

2015-06-25 / 11:30

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Annual report 2014/15

The board of egetæpper a/s has today approved the annual report for the
financial year 1 May 2014 - 30 April 2015. The annual report 2014/15 has the
following main items: 

Accounting report

The result before taxation amounts to 55.1 DKK million which is less than our
expectations of 70-75 DKK million at the beginning of the year, but in line
with the estimate released in March 2015, where a result before taxation of
50-60 DKK million was expected. 

Financial highlights:

  -- The group turnover amounts to 873 DKK million against 784 DKK million last
     year, representing an increase of 11%. Adjusted for the inclusion of Hammer
     Tæpper, turnover increased by 1%.
  -- Result before financial items and taxation amounts to 67.0 DKK million,
     equal to an EBIT-margin of 8%.
  -- Result before taxation amounts to 55,1 DKK million, a decrease of 7.0 DKK
     million compared to last year.
  -- Group profit amounts to 43.3 DKK million against 48.0 DKK million last
     year.
  -- Dividend is proposed to be fixed at 17.0 DKK million equal to approx 40% of
     the group's result after taxation and dividend to minority shareholders.
  -- The net investments in long-term assets during the year amount to 110 DKK
     million, of which the acquisition of Hammer Tæpper represents 51 DKK
     million. Prepayments regarding investments for the coming year are included
     with 6 DKK million.
  -- Interest-bearing negative net balance amounts to 58.0 DKK million. The high
     level of investment during the year is financed through cash flows from
     operating activity and an increase in bank loans - fairly equally
     distributed.
  -- Cash flows from operation amount to 75 DKK milion against 61 DKK million
     last year.

Prospects 2015/16

We determinedly work with egetæpper's general strategy 'Sustainable Carpet
Design 2020' and on this basis we have set up the following expectations to the
markets: 

  -- The level of activity on the Danish market, being our biggest market, has
     not fulfilled our expectations in the financial year 2014/15 and has not
     been in line with last year. We do not expect the market situation to
     change significantly during the coming year.
  -- Among the major export markets we especially expect growth in England,
     France and Germany. During the past year focus has been on enlarging and
     adapting both the organization and the product range. Furthermore it is our
     expectation that Norway, Sweden and The Midddle East will continue to
     develop positively.
  -- Overall, the level of activity in Asia has not lived up to our expectations
     in the financial year 2014/15, especially the development in Q4 has not met
     the objectives. Construction of the distribution channels is in place, and
     we do not expect that the outcome of Q4 will be directional for the coming
     year, but that the region again will show a positive development.
  -- Establishment and setup in the US is also in place as well as the
     processing of the market has begun. Based on experience this will be a
     lengthy process. We expect that the US market will contribute positively to
     the overall activity, however, to a lesser extent during the start-up phase
     in the coming year.

In all our expectations to 2015/16 are:

  -- A turnover of 950-1,000 DKK million.
  -- An EBIT-margin of 8-9% excl. profit from the sale of our property in Vejle.
  -- A result before taxation of 80-90 DKK million of which approx. 20 DKK
     million relate to profit from the sale of our property in Vejle.
  -- Cash flow from operations of 80-90 DKK million.
  -- New investments in long-term assets of approx 50 DKK million. Net
     investments will make up 30 DKK million after deduction of profit from the
     sale of our property in Vejle.

The annual general meeting

The annual general meeting is to be held at egetæpper a/s in Herning on Friday
28 August 2015 at 11.30 a.m. 

The board of directors has made the following proposals:

  -- Based on the dividend policy of the parent company the board of directors
     recommends that the dividend is fixed at 6.50 DKK per share nominal 10 DKK,
     corresponding to a total dividend of 17.0 DKK million or approx. 40% of the
     net result after taxation and dividend to minority shareholders.
  -- The board of directors also recommends that the board of directors is
     authorized to acquire own shares up to nominal 5.0 DKK million. The
     authorization is provided until the annual general meeting next year.

Contacts:

Mr. John Vestergaard, CFO                              Mr. Svend Aage Færch
Nielsen, CEO 

Tel: +45 97118811                                         Tel: +45 97118811



egetæpper a/s

Herning, 25 June 2015
News Source: NASDAQ OMX



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Language:    English        
Company:     Egetæpper A/S  
 
 
             Denmark        
ISIN:        DK0010259290   
 
 
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372007 2015-06-25